If you are looking for the best cryptocurrency exchanges, here we have compiled a list of what the trading brokers review team consider to be the best crypto exchanges based upon thousands of hours of intense research across hundreds of crypto exchanges.
We have taken into consideration some of the most important factors worth considering when choosing a crypto exchange such as; company reputation, technologies, security, crypto instruments, exchange fees, platforms, ease of use, customer support and more.
We consider the above to be amongst the best crypto exchanges based on our in-depth research and analysis. They have been included in our list for offering user-friendly crypto exchange services around the globe with competitive fees and top-class support. The centralized exchanges listed all have active trading, high volumes, and liquidity.
A cryptocurrency is a digital asset that is designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
There are thousands of different types of crypto assets out there – or as you might know them, cryptocurrencies. You’ve probably heard of a few such as Bitcoin, Ripple, Litecoin and Ethereum.
Cryptocurrencies aren’t like the cash we carry. Instead, they exist electronically and use a peer-to-peer system with no central bank or government to manage the system or step in if something goes wrong. Whilst this can be an attractive proposition for people who want anonymity and more control over their funds, it can entail significant risks. If there are no banks or central authority protecting you and your funds are stolen, there is no one who can be held responsible and it may br hard to get your money back.
A blockchain is a digital record of crypto transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. The name comes from its structure, in which individual records, called blocks, are linked together in single list, called a chain. Blockchains are used for recording transactions made with cryptocurrencies, such as Bitcoin, and have many other applications. Blockchain technology can be used to create a permanent, public, transparent ledger system for compiling data on sales, tracking digital use and payments.
Cryptocurrency exchanges are online platforms in which you can exchange one kind of digital asset for another based on the market value of the given assets. It is important not to confuse cryptocurrency exchanges for cryptocurrency wallets or cryptocurrency brokers. That being said, different crypto exchanges may have different options and features. Some are made for cryptocurrency trading and others for fast cryptocurrency exchanges.
Crypto exchanges set the rate of the currencies, which can be both coins and tokens. The cryptocurrency rate usually depends on the actions of sellers and buyers, although there are other factors that can affect the price. Various crypto exchanges may have different options and functions. Some of them are made for traders, while others are made for prompt crypto-fiat exchange.
The crypto exchange will usually charge a fee per trade, accumulating revenue as more users trade more money. The exchange may charge projects a listing fee to trade the project’s coin or token on its platform. Crypto exchanges can yield a profit while providing liquidity to users.
Cryptocurrency exchanges (especially centralized exchanges) require new users to complete a registration process before they can begin trading. The levels of verification may vary – in some cases, confirming an email address will be enough, while others require applicants to upload a photo of their passport. These KYC (“know your customer”) checks are in order to ensure that crypto businesses comply with anti-money laundering measures.
Exchanges are mainly of two types, classified on the basis of their nature. There exist centralized and decentralized exchanges, both differing in the hierarchies of operation and governance.
In a centralized crypto exchange, most of the control over your account remains in the hands of the third party which runs the exchange. On the other hand, with a decentralized exchange, all the control of the account remains with you. This is another prominent reason why decentralized cryptocurrency exchanges are becoming more popular.
The crucial difference between centralized and decentralized exchanges is whether or not a middle man is present. Decentralized exchanges are less widespread and less popular as compared with centralized exchanges.
In order to exchange cryptocurrency, you will need to choose a cryptocurrency exchange and create an account with them. You will then be able to make deposits and withdrawals to and from your account in order to buy and sell cryptos according to their current market price.
In this section, we will take a closer look at some of the important factors to consider when choosing a crypto exchange.
Most crypto brokers will offer the most popular cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and EOS. If you would like to trade cryptos, check that those you have an interest in are available through the exchanges trading platform. Also consider what other trading instruments they offer if you are planning on trading other markets now or in the future.
Most crypto exchanges will provide users with a trading platform to buy and sell cryptocurrencies through. The platform should ideally be user friendly with the tools that you require to assist with your crypto trading. Platforms can run directly in web browsers or be available as a mobile trading app. Make sure that you feel comfortable using the platform in question and that it is compatible with your devices.
You can check the limits on how much you can buy or sell, and if the exchange will support your required amount. Additionally, there are sometimes crypto and fiat withdrawal limits on exchanges that limit how much you can withdraw at once. This can be inconvenient if you deal with large amounts you will have to withdraw small amounts over a few days.
It is important to check how much the exchange charges for converting your money and how this fee compares to other similar crypto exchanges.
Some crypto exchanges will have minimum account requirements in order to start using their services. You should check that you can meet the required amount.
You should check how fast your coins be delivered but also keep in mind that most problems with speed can be due to the legacy banking system and not with cryptocurrency. Credit card and online payment processors are often instant, whereas bank transfers can take days to clear.
Cryptocurrencies are available to trade online 24/7. You may want to check how available and quick to respond the crypto exchange support team is along with the methods of contact that they offer. This can include live chat, telephone and email. The office locations of the exchange should also be considered due to time zone differences. If English is not your native language, you could check if they offer multi-lingual support.
Exchanges may need personal documents such as a proof of identification and address. This can be a normal part of the KYC and AML procedures. You may want to check in advance how much personal information the exchange requires and if you feel comfortable with providing it.
One of the key things to consider is the reputation of the exchange. This can include finding out how long the exchange has been around, are they regulated, have they had security breaches in the past, what do other users have to say about them, etc.