To get into buying and selling cryptocurrencies, it is necessary to understand the way exchange websites work. While crypto coins can theoretically be traded without any middlemen, the platforms provide a digital marketplace where buyers and sellers can meet.
They work in a similar fashion to digital stock trading. You fund your account with money or altcoins and then use those funds to buy and sell. Usually, there is no one-to-one contact between you and the other party to the transaction - all that is handled the platform where the trading happens.
The best exchange sites allow regular people to buy and sell cryptocurrency in small and large amounts. However, it has also made trading for profit possible. There are increasing numbers of people who make a living by taking up short term speculative positions in a cryptocurrency and exiting for a profit.
One big problem people have when picking which website to use is the sheer amount of choice. It can be difficult to know where to start and not all are as good as they seem.
We have worked with top investors to put together a review of the best 30-40 cryptocurrency trading platforms to help you make an informed choice.
Let’s take a quick look at these reviews:
Getting into cryptocoins for the very first time can be daunting, and many new users are unsure of where to buy cryptocurrency coins. All the best digital exchange websites are new and do not have established reputations.
Can you imagine how uncomfortable people felt when digital banking first became popular?
We are going through that same process right now with crypto trading.
As you can see, there is a big choice of digital cryptocurrency markets, and it’s easy to figure out where to buy cryptocurrency coins with a little research.
Due to the decentralized nature of cryptos, there is no standard way of running a platform, or trading coins. This offers a massive amount of choice to the consumer, but makes it hard for a newbie to wrap their head around the process of buying and selling.
Despite every platform having its own unique system, we can break down the process of where you should be buying and trading cryptocoins on a site into a few basic steps.
We will go into greater detail about each of the best exchanges later in these reviews, but first here is the basic breakdown.
The first step on most platforms is some form of registration. The rules about what information the company needs from you tends to change based on the country where they are registered as a business.
At first, some platforms needed minimal information, however now things are tightening up a fair bit. Be prepared to provide scans of official ID documents, as this is becoming standard practice.
Once you have been accepted into the digital online marketplace through the registration process, you will need to find out where and how add funds to your account. These funds are what you will be using to buy your brand new altcoins.
To do this, you will generally complete a transfer from your existing bank accounts. This is also where you can use a debit card. There are a select few exchanges which are considered among the best who also accept direct, over-the-counter bank deposits. Bear in mind that with new accounts, there can also often be daily limits or restrictions on the amount you can transfer.
Most platforms work in a similar way to a stock trade, where you place a buy order for the cryptocurrency that you want. The best digital exchanges offer a function where you buy ‘at market’.
This basically means you want to execute the trade immediately at the set price for the coin on the digital marketplace site.
Being new, people tend to worry about the security of digital cryptocurrency marketplaces. It is right to be cautious whenever you are sending your hard earned money to a digital company online and crypto exchanges do have a checkered past.
In fact, you may have even heard the headline news stories of platforms failing or being hacked in the past. These companies did not take the privacy and security of their customers seriously and have unfairly tarnished the reputation of all cryptocurrency platforms in the process.
The good news is that through reviews of the best exchange platforms operating today, we have learned from the errors others made in the past and are re-establishing a solid reputation. With increasing competition, it is no longer possible for them to do a half baked job. Every platform now needs to work hard to attract customers and security is the most important selling point.
In addition to this competition, reviews show there is also an increase in regulatory attention.
Cryptocurrency trading has left the wild west of the internet and is now becoming mainstream. Almost every online digital trading marketplace now has to meet at least some of the regulations for the financial industry in their home country. This gives users extra peace of mind and also reduces the likelihood of scams.
At the end of the day, doing your own research is crucial when deciding where to buy, sell and tradel. Although the best exchanges all now have top level security measures, you can never be too careful.
To help you choose the best exchange to buy and sell cryptos on, we have created some brief reviews to help. We’ve provided reviews of the top ten platforms currently in operation and will outline the pros and cons of their services so you know where to buy.
In our review of the best exchange sites, there are a few key features that we are looking for. If you go ahead and do your own research as well, these are the kind of things you should look out for:
It is certainly not a simple process deciding on an exchange. Let’s not waste a minute more and get straight into our reviews of the best crypto exchange sites.
Here we will now be giving you a brief overview of each of the best exchanges currently in operation. Each review will start with a small overview of the company, before listing the major pros and cons of the service.
Coinbase is one of the best exchanges, with support for trading in 32 counties. Based in San Francisco, they have had the benefit of significant venture capital backing. Millions of users and counting use Coinbase, partly because of their significant support for merchants and developers.
Despite also being based in San Francisco, Kraken is known as the best exchange for those using Euros. It has been around since 2011 and is well regarded. They have recently added additional support for fiat currencies and integrated technology that allows for large Bitcoin purchases.
The claim to fame for Bitfinex is being the largest platform for USD-Bitcoin trades. It is a newcomer to the scene, having only been in operation since 2015. It has not been all smooth sailing for Bitfinex with the platform being involved in some controversy.
Bittrex is at its core a trading platform, rather than a digital market place. There are hundreds of cryptocurrency pairs available to trade on the platform, with more added on a regular basis.
This platform is the direct and largest competitor to Bitrex. Also offering a massive range of trading tools and options, their specialty is being the largest exchange for the altcoin Ethereum.
You can find out more about Poloniex here in these reviews
First started in Slovenia, Bitstamp now calls Luxembourg home due to the favorable regulatory environment. Although it originally found success as a purely Bitcoin exchange, it has since expanded into the wider altcoin market.
Get more information and reviews about Bitstamp here.
This is not your traditional exchange, but can be thought of more as an advertising platform. Founded in Finland, the idea behind this exchange is to facilitate trades between individual on a local level. Users advertise their coins for sale, using the platforms set exchange rate, then make the trade in person with cash.
More in-depth information about Localbitcoins can be found here.
Although it is registered in the US, this up and coming exchange was founded and is run from Israel. With their strong focus on legitimacy and legal recognition, Coinmama was able to service 180 countries worldwide and accept a range of payment options.
Founded in 2015, Gemini is owned by the famous (or infamous) Winklevoss twins, who are heavily invested in Bitcoin. Their goal with this platform is to bridge the gap between traditional markets and digital cryptocurrency by making the best and most reputable exchange possible.
This exchange is actually the child of the very popular Coinbase and is considered one of the best. Developed as a standalone, specialist trading platform, GDAX has all the tools and power needed for even the most advanced cryptocurrency traders.
Click here to read expert reviews about GDAX