Some of the most trusted crypto exchanges in the world come from this list. Cryptocurrency trading platforms are online platforms where cryptocurrency users can exchange one digital currency for another (or for fiat currency).
In other words, a cryptocurrency trading platform is a marketplace where you can buy and sell digital currencies. Cryptocurrency trading platforms are also called exchanges.
So, cryptocurrency exchanges provide a reliable marketplace for buying, selling, or trading cryptocurrencies. Cryptocurrency trading platforms aim to provide and fair and orderly opportunity for individuals who are looking to invest in the market. These exchanges make their money by charging transaction fees on the dealings that take place on their platforms.
Additionally, not all Crypto Exchanges are created equal. Over the years lots of exchanges have come and gone leaving crypto enthusiasts hopeless and broke. That is why I created this guide so you will have a better understanding of the different types of exchanges and which ones to trust.
Furthermore, it is recommended you never leave your crypto coins on any exchange so its best practice to use a hardware wallet for safekeeping.
Types Of Cryptocurrency Trading Platforms
The different types of cryptocurrency exchanges in existence today include:
Traditional Cryptocurrency Exchanges:
Traditional cryptocurrency trading platforms are those that work in the same way as traditional stock exchanges where buyers and sellers trade based on the going market value of digital currencies. In this case, the exchange platforms act as middle-man.
Traditional trading platforms typically charge a small fee on each transaction performed. Some traditional cryptocurrency exchanges deal only in cryptocurrency (pure cryptocurrency exchanges), while others allow users to trade fiat currencies like the U.S. dollar or Euro for cryptocurrencies like Bitcoin and Ethereum (Fiat exchanges). Examples of Fiat trading platforms are GDAX or Kraken.
Examples of Cryptocurrency trading platforms are also called exchanges, on the other hand, including Bittrex and Binance. Some exchanges are run by third parties, as they have middlemen who provide support and correct problems users face. Decentralized exchange platforms and peer-to-peer trading platforms do not work with intermediaries.
Cryptocurrency brokers are website-based trading platforms that work the same way as currency exchange at airports. These exchanges allow customers to purchase and sell digital currencies at a price set by the broker.
Such currencies are typically bought at the market price and sold at reasonably higher prices. An example of such a cryptocurrency exchange is Coinbase.
Shapeshift is another good example of this type of exchange, as it allows users to exchange one of cryptocurrency for another. These platforms are easy to work with, which makes them ideal for newbies. Note, however, that you will have to pay slightly higher prices than you would on exchanges.
Direct Trading Platforms:
Direct exchanges provide direct peer-to-peer trading between buyers and sellers, without resorting to exchanges like GDAX does, for example. Such trading platforms do not have a fixed market price.
Instead, sellers set their own exchange rate and buyers either find sellers through the platform and trade Over the Counter (OTC) or indicate the rates they are willing to pay and the platform matches them with sellers who are willing to sell at that price.
While this may not seem like the ideal solution, it can be a last resort at times, or even the only option available in certain places. If you are living in a place where direct trading is the only option available, you should endeavor to do your due diligence before you settle for any exchange.
Doing your homework will help you to connect with trustworthy and reputable platforms. Further, it is recommended that you check market prices on Coinmarketcap to ensure that you are buying or selling at the right price.
Cryptocurrency funds are pools of professionally managed digital currency assets which let members of the public buy and hold cryptocurrency through a fund. An example of such a fund is The Bitcoin Investment Trust (GBTC). This fund allows users to invest in cryptocurrency without having to purchase or store it directly.
Now that you know the different type of exchange platforms, some of the best exchanges where you can buy and sell cryptocurrencies include:
Trusted Exchanges To Buy and Sell Crypto
Coinbase is a beginner-friendly cryptocurrency exchange platform that serves as a good way for new traders to familiarize themselves with cryptocurrency. Traders who are buying a cryptocurrency for the first time will find it helpful.
Unlike other cryptocurrency exchanges where fiat currency cannot be used to purchase cryptocurrency, Coinbase allows you to purchase digital coins with credit/debit cards or bank account. This makes it a good starting point for new adopters who wish to buy Bitcoin or any other cryptocurrency. So, whether you are from the USA, UK, Europe, Canada, Singapore, or Australia, you can buy tokens with a credit card or bank account.
What makes Coinbase more appealing is the fact that it sports a clean interface that makes it easy for beginners to go on and make their first purchase of cryptocurrencies such as Bitcoin, Litecoin or Ethereum.
Note, however, that you will be charged a small fee for using the platform. For instance, purchases made using credit cards attract a 3.99% transaction fee. If you are buying digital currencies through bank transfer, the charges come down to about 1.49%.
GDAX is one of the most reliable cryptocurrency exchange platforms known to the crypto community. The exchange allows users to buy digital currencies such as bitcoin, ether, litecoin and bitcoin cash without charging transaction fees. As GDAX is owned by Coinbase, you will need a Coinbase account to sign up on the platform.
For all its benefits, however, GDAX is not beginner-friendly, as new users will find its interface confusing. You can still proceed to use the platform if you intend to buy cryptocurrency in large volumes.
Kraken is one of the largest cryptocurrency exchanges in the world. The platform has been around for a very long time and belongs as one of the few cryptocurrency exchanges that offer margin trading, as it allows its clients to leverage their account balance on specific trading pairs.
You can tell by the above that Kraken is not beginner-friendly. This is especially so because requires users to understand certain terminologies such as order books and order types as well as how to employ them. Nonetheless, Kraken is a good option for individuals who are looking to buy larger quantities of cryptocurrency. The platform charges lower fees than most exchanges in its category.
Kraken’s technology has been bolstered to ensure fast execution and offer high levels of security. While the company is based in San Francisco, USA, it operates worldwide with a pre-validation for those countries where it is not eligible.
Kraken accepts both cryptocurrency and fiat currency transactions made through wire transfer. The company does not accept debit/cred cards or cash payments.
Bitfinex offers a broad array of cryptocurrencies. This makes it ideal for crypto enthusiasts who wish to trade cryptocurrencies like Bitcoin, Bitcoin Cash, IOTA, NEO, Ethereum, EOS, Dash, Litecoin, Ripple, Bitcoin Gold, Zcash, Monero, Ethereum Classic, ETP, Santiment, OmiseGO, Qtum, Eidoo, Streamr, etc.
Coinmama is a cryptocurrency broker that lets you buy digital currencies such as bitcoin, litecoin, and ether using a credit card. However, the fees charged are somewhat high, owing to the use of credit cards. This can be a turn off for most beginners.
Coinmama accepts users from most countries around the globe. The platform also has high buying limits, in addition to fast delivery time for digital coins. Coin purchases are confirmed in a matter of minutes.
CEX.io is a global Bitcoin trading platform that lets you buy bitcoin, litecoin, ether as well as other cryptocurrencies.
The exchange accepts payments made via credit card and bank transfer. This makes it a good option for newbies since they can pay for cryptocurrency using fiat currency.
Bittrex is one of the biggest cryptocurrency exchanges in the world. The platform supports various cryptocurrencies and offers a good volume across all its pairs. This makes it perfect for both large and small buyers and sellers.
Bittrex provides comprehensive vetting of new virtual currencies and prioritizes user security. This has earned the platform a reputation as one of the most secure wallets with a good security module. The amount charged for deposit and withdrawal depends on the minimum transaction fee of the blockchain.
Binance is a digital currency exchange platform that is located in Malta. It boasts low transaction fees at just 0.05 percent per trade.
More so, the exchange supports several coins, and its site is offered in several different languages, including English, Chinese, Korean, Japanese, Spanish, Russian and French.
After you have bought cryptocurrencies such as Bitcoin, Litecoin, or Ethereum you can use Binance to convert the currency into nearly any altcoin you like.
HitBTC is a global cryptocurrency exchange that supports different forms of cryptocurrency. The exchange has markets for trading digital assets, tokens as well as ICOs.
HitBTC charges 0.1% fees on every transaction. Although, the good part is that it allows you to trade a variety of cryptocurrencies and fiat currencies, including Bitcoin, Litecoin, Dogecoin, the Euro, USD, among others.
HitBTC also allows traders to use the demo trading feature to acquaint themselves with the platform. This has helped make it popular among developers who want to test their codes.
Final Thoughts On Crypto Exchanges
If you are a beginner who is looking to adopt cryptocurrency, best fiat cryptocurrency exchange you can use is Coinbase. The platform offers one of the best user interfaces and is very easy to use.
Also, it has a fast verification process that allows you to buy coins almost instantly, not to mention excellent mobile support. You can use it on your Android or iOS devices without problems. Another strong argument for the platform is that it is a regulated and FDIC insured.
If after obtaining a cryptocurrency like Bitcoin on Coinbase, you wish to trade it for another digital coin, one of the cryptocurrency exchanges you should consider is Binance.
The platform offers mobile apps that help make it easy for beginners to exchange cryptocurrency on the go. Further, the exchange’s web interface is simple to use and allows users to start trading instantly on the platform with just an email address. If you are looking for reassurance, it helps that Binance is the world’s largest exchange according to CoinMarketCap.
In conclusion, there many new exchanges coming out weekly for buying and trading cryptocurrencies. However, not all exchanges operate with the same level of trust and security as the ones mentioned in this article.
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