Just a decade ago, many people are wary of Bitcoin and other cryptocurrencies. In 2013, Bitcoin was worth $20. In the first quarter of 2021, it has reached $60,000 and it continues to rise in value. That is why more people are investing and trading in Bitcoin and other digital currencies.
Today, trading in cryptocurrencies is widespread through Digital Currency Exchanges (DCU) or cryptocurrency exchanges. Investing and trading securely in cryptocurrencies has never been easier. Investing in cryptocurrencies work in the same way as stock exchanges. Traders can either place a sell order or a limit order on a particular exchange, which in turn provides liquidity for other investors on the platform. These entities enable you to trade Bitcoin, Litecoin, Ethereum, Ripple, and more. It is important to note that when we talk about Bitcoin exchanges, we don’t only mean just Bitcoin per se, but all other cryptocurrencies as well.
We have gathered the crème de la crème of cryptocurrency exchanges, using important criteria such as volume and liquidity, platforms used, security, support, user experience, commissions, and exchange and transaction fees.
If you’re interested in buying and selling bitcoin as well as other cryptocurrencies, here is a list of 6 of the best exchanges:
Coinbase is the most reputable and widely-used exchange in the U.S., with a license to operate in more than 40 states and territories. It also operates in more than a hundred countries. It currently has 40 million verified users. Since it was established in 2012, notable three years after Bitcoin was launched, it has had $455 billion total transactions.
- It supports 46 cryptocurrencies.
- Allows you to purchase, sell, store, and keep track of digital currency all in one place.
- It offers insured custodial wallets for storing investments.
- App is available for both Android and iOS.
- Its user interface is very easy to use. It is well-designed and intuitive.
- Its unique crypto-conversion feature allows platform users to exchange crypto assets without transaction fees.
Headquartered in London, this trusted Bitcoin exchange has been in operation since 2013. It supports 48 American states and has about 4 million registered users on its platform. It is one of the trailblazers in the market, as it is one of the first platforms to make fiat-to-crypto transactions available.
- Using full data encryption, it protects traders against Distributed Denial-of-Service (DDOS).
- It is available in more than 35 American states.
- It has a user-friendly interface that even beginners can easily figure out. The advanced trading windows are also easy to navigate, since they are clean and clutter-free.
- It supports 48 cryptocurrency coins and 4 fiat currencies (USD, RUB, EUR, and GBP)
- It has a variety of deposit and withdrawal options compared to other exchanges, including Swift, Visa, Mastercard, Skrill, and ACH.
Based in Malta and established in 2017, Binance offers traders over 100 different trading pairs, making it the largest exchange in terms of transaction volume. This exchange is suitable for traders and investors who are interested in lesser-known altcoins.
- It offers a wide range of tools for online trading.
- It has a huge variety of coins (a total of 335) and trading pairs.
- It has lower fees and has the lowest trading commissions at 0.10% compared to other exchanges.
- Its average daily trading volume reaches up to 1.2 billion, with about 1.4 million transactions per second.
- Since trading volume is high, its prices accurately reflect the cryptocurrency market at large.
This highly-regarded Israel-based cryptocurrency exchange operates in more than 100 countries. It first introduced Bitcoin trading, but since then has expanded to many more cryptocurrency products. This all-in-one platform also allows its clients to dabble in stocks, commodities, and currencies. It is regulated by the Financial Conduct Authority (FCA) and the Australian Securities and Exchange Commission (ASIC).
- Its trading platform has social networking features, allowing traders to interact with each other and to use the copy-trading feature, where users can track the portfolios of other investors and copy the position of others.
- Its user-friendly platform and mobile app are ideal for casual investors or beginners.
- It offers two investment mechanisms: (1) purchase crypto with no leverage or (2) trade crypto through CFD (Contract for Difference).
Bitstamp was founded in 2011, mainly catering to European Bitcoin enthusiasts. It has since grown to be one of the top cryptocurrency exchanges in the world. It later opened offices in London, Luxembourg, and New York.
- It has no withdrawal limit.
- It is a cloud-based application that encrypts all personal data. It is inaccessible to hackers.
- It allows traders to connect to real-time data streaming through WebSocket communication protocol.
- It has an extensive FAQs section that answers all pertinent questions about the exchange.
- It maintains a core focus on the most established cryptocurrencies in the market today.
- It provides a high level of liquidity.
- This exchange adheres to KYC (Know Your Customer) regulations.
This U.S.-based company was established in 2014 by the Winklevoss twins of pre-Facebook fame. Aside from its cryptocurrency exchange, its main services also include digital wallet and USD Coin marketplace.
- It emphasizes regulatory compliance above all else.
- It offers over 20 cryptocurrencies along with its own currency, the Gemini dollars.
- It is insured by the FDIC (Federal Deposit Insurance Corporation).
- It has partnered with Samsung, powering the Samsung Blockchain which enables US and Canada users to trade currencies on their Gemini app.
- You can use Gemini to purchase products in retail stores such as Whole Foods, Home Depot, and Nordstrom.
Investing in digital currency is a sound decision because this fast-growing market has been proven to gain profit. It also diversifies your portfolio. However, cryptocurrency is still not fully understood by many people and is historically volatile, which is common among emerging assets. That is the reason why Digital Currency Exchanges should provide clear and simple information and user-friendly interfaces to prospective traders. It is absolutely essential to choose a cryptocurrency exchange that has a long-standing reputation in the market and has a proven level of quality service to its clients.