- Quick Overview on Best Bitcoin and Cryptocurrency Exchange Platforms
- How to Convert Cryptocurrencies to Real Money?
- What Are Exchange Types?
- The Best Bitcoin and Cryptocurrency Exchange Platforms
- Important Exchange Features to Consider
- Know Your Customer Processes
- Final Words and Exchange Platform Reviews
Finding the best cryptocurrency exchange platform can be quite challenging. This is why we wanted to prepare this guide for you to inform you about the elements you need to consider while choosing your new exchange platform. Moreover, you will also find popular cryptocurrency exchange reviews in the following.
Quick Overview on Best Bitcoin and Cryptocurrency Exchange Platforms
You need to consider different factors to determine the best exchange platform for yourself. These factors are;
- Fees and Buying Limits
- Supported Payment Methods
- Supported States and Countries
- Supported Cryptocurrencies
- Exchange Type (Trading Platform, Broker, etc.)
It is always a great idea to check the reviews available on the internet before picking any of the exchange platforms randomly. This is the most reliable method to determine the best option for yourself.
Below, you can find what we are going to cover in this guide. You can click on them to jump to the relevant section or keep reading the guide (recommended).
How to Convert Cryptocurrencies to Real Money?
The biggest service of cryptocurrency exchange platforms is allowing you to convert your cryptocurrencies to real money. You can convert any cryptocurrency into fiat currencies such as Dollars and Euros and then transfer them to your bank account. You can also perform the opposite, i.e., convert your fiat currency to cryptocurrencies such as Bitcoin or Ethereum through these platforms.
However, as you can guess, there are minor differences between exchange platforms.
What Are Exchange Types?
You need to know that there are different exchange types on the market. Some exchange types allow trade between the users while some of them can sell you cryptocurrencies. In addition to this, there is also an exchange type that does not provide you cryptocurrencies but allows you to make money by speculating on their prices.
Here are all these three exchange types you need to know.
P2P (Peer-to-Peer) Platforms
P2P (Peer-to-Peer) exchange platforms are the platforms that meet the individuals so that they can trade by negotiating on the price. The risks in these platforms are high since you are going to trade with a real person. These platforms offer a wide range of options such as payment methods, supported countries, and so on.
These exchange platforms allow you to buy cryptocurrencies directly through their system by paying a predetermined premium. In general, these platforms are famous for their easy-to-use interfaces. They also offer quick operations, but they are also famous for being the most expensive type.
As the name suggests, trading platforms meet the buyers and sellers but unlike P2P systems, the process is carried out anonymously and with automated forms. This allows you to quickly carry out your transactions with the assurance of the platform. You do not have to get in touch with the seller or buyer to complete the trade. These platforms charge you a small fee in exchange for the services they provide.
These platforms are regarded as the cheapest method to buy Bitcoins and other cryptocurrencies. The biggest setback of these platforms is they are challenging to use. This is mainly because they offer options such as stop-loss or limit orders, which can be confusing for many beginners.
In case the platform is lacking sellers, you cannot buy the specific cryptocurrency quickly at the desired price too.
Besides regular trades, some of these trading platforms also allow you to trade CFDs, which stand for Contract for Difference. This allows you to bet on cryptocurrency prices in the future without owning these coins at all.
CFD can be quite tempting for many traders since you do not possess the coins you are going to invest in. It is very similar to gold trades you carry out in real markets. You pay for the gold but never physically own it.
Since you do not possess the coins, you will not be able to withdraw them from your wallets. All you need to do with these coins is buying or selling them to make money by speculating on the price. They can be bought and sold in any fiat currency the platform supports.
Another important feature of CFDs is margin trading, which allows you to benefit from leverages. This is a great opportunity to make more money with minimum investment, but your losses will be large in the same portion.
This trade is generally considered risky and not recommended to beginner traders.
Some of the popular CFD brokers include Plus500 and eToro.
The Best Bitcoin and Cryptocurrency Exchange Platforms
Best P2P Marketplaces
LocalBitcoins meet the buyers and sellers on their platform, and they only serve in Bitcoin. The biggest advantage of this platform is it supports many payment options including Webmoney, Western Union, wire transfers, and PayPal. Sellers are charged a 1% transaction fee and you can easily withdraw your cryptocurrencies to your wallet from LocalBitcoins wallet.
LocalCryptos is another P2P platform that meets the buyers and sellers. On this platform, you can trade different cryptocurrencies including Bitcoin and Ethereum. This one also offers a wide range of payment options for buyers.
Please note that you need to be really cautious while using P2P platforms since you will be directly trading with real people. Your chances to be scammed are quite high. In general, most of the traders prefer other methods rather than these platforms.
Best Trading Platforms
PrimeXBT allows you to speculate on prices instead of buying the coins. For now, the platform serves 5 different cryptocurrencies, which are BTC, XRP, EOS, ETH, and LTC. Moreover, you can carry out transactions up to 100x leverage. Although you can trade with other currencies, trades and account balances are carried out by Bitcoin.
Webull Bitcoin Trading
Webull Bitcoin Trading is an American company that offers broker services for stocks, ETFs (exchange-traded funds), and cryptocurrencies. It offers its cryptocurrency brokerage services through its Apex Crypto company.
The company does not have any fixed fees for trading cryptocurrencies, and they charge 1% for each trade. It is not possible for you to withdraw or deposit cryptocurrencies from your account. However, using fiat currencies to trade Bitcoins is quite easy on this platform. You can also use your third-party wallet without any challenge.
BitMEX also allows you to trade cryptocurrency contracts with leverages. This means that you can enjoy different multipliers while buying and selling cryptocurrencies without actually owning them. Although you can buy and sell contracts for different cryptocurrencies, your withdrawals and deposits must be carried out with Bitcoins. In general, it is not suitable for beginners.
Coinbase Pro is the extension of Coinbase and offers a trading platform. If you already have a Coinbase account, you can use Coinbase Pro without the need for an additional account. You can trade various cryptocurrencies on this platform including BTC, ETH, ZRX, BCH, and LTC.
Bitstamp was founded in 2011 and this makes it the oldest exchange platform in the world. The biggest feature of this platform is it was never hacked or shut down. This is why it is regarded as the safest and most reliable platform on the market. However, it has a complex interface and does not offer many payment methods. Other than that, we can recommend this platform to everyone.
Luno is one of the cryptocurrency exchange platforms that focus on emerging markets. If you are living in countries such as Indonesia, Nigeria, or Malaysia, which most of the Bitcoin exchange platforms do not serve in these countries, you can rely on Luno for Bitcoin services. You can trade BTC, ETH, and XRP through their systems.
Binance is the most popular cryptocurrency exchange platform on the internet, and it offers the best rates. You can easily trade one cryptocurrency to another with their platform. It is known as the cheapest platform and offers its services worldwide. Moreover, traders can buy coins with their credit cards too.
Best Broker Services
Bitpanda was founded in Australia in 2014 and you can buy cryptocurrency with your credit card through their platforms. Moreover, other payment options such as SEPA, Skrill, Neteller, and wire transfers are supported. This platform charges low fees but they are only available in European countries.
Coinbase is a very popular platform in the United States and offers a wide range of services. We already mentioned Coinbase Pro, which is a trading platform. The original platform also offers broker services to traders. They have competitive fees and offer their services to more than 100 countries.
Coinmama is famous for its amazing customer service, and it is one of the oldest platforms in the world. They offer different payment options such as SEPA, SWIFT, debit cards, and credit cards. You can buy and sell Bitcoins as well as other cryptocurrencies in any part of the world without any limitations in terms of the country.
CEX.io has been offering its services since 2013. Besides broker services, you can also benefit from its trading platform with different cryptocurrencies. The platform also accepts payments with credit cards.
Important Exchange Features to Consider
Here are some of the important exchange features that you need to know to consider which platform is the best option for you.
This is one of the most important factors that you need to consider. Consider whether the exchange is a popular one in your country or not. Does it provide satisfying support? Are there many complaints about it on the internet? Was it ever hacked in the past? You also need to consider its trade volume.
In general, buying limits vary on your preferred payment method and whether you verify your account or not. Some exchange platforms may not be the ideal choice because of their low buying limits when you want to buy a large number of Bitcoins.
Fees vary from one company to another. While some are offering low fees, some hide their fees in the exchange rate. You need to be careful in rates to determine the best option for yourself.
You may be charged with different fees including withdrawal fees, transaction fees, and deposit fees. Paying high fees will cut your hard-earned profit so you need to open your eyes to different fees and their rates.
Supported Payment Methods
While some exchange platforms offer almost all of the available payment methods, some limit their options with few. Some payment methods allow buyers to receive their money back such as credit cards and chargebacks. Therefore, such methods usually have higher fees. On the other hand, you can prefer cheaper payment options such as wire transfers, which are supported by most exchange platforms.
You need to make sure that the exchange platform you are going to prefer offers services in your country. Unfortunately, not all companies offering their services worldwide.
Again, not all exchange platforms support all cryptocurrencies. You will not want to use a platform that does not support your favorite cryptocurrency. Moreover, you also need to check this fact on an account basis since some platforms only allow you to trade with fiat currencies or Bitcoins.
Know Your Customer Processes
Know Your Customer, also known as KYC, is a practice that requires additional steps before you can actively use the platform.
This method is preferred by many exchange platforms so that you may be required to upload additional information such as a copy of your ID or proof of residency. In addition to this, new regulations also force exchange platforms to perform a series of security measures. Although most of them are unhappy with these, they must carry them out to keep serving you.
We recommend staying away from exchange platforms that do not require such information from you and verify your identity. In case you have doubts about your privacy, you can learn more about it by visiting our how to buy Bitcoin anonymously guide.
Final Words and Exchange Platform Reviews
Now, you are informed about every detail that you need to know to pick the right cryptocurrency exchange platform for yourself. Keep in mind that there is no best concept that fits all traders. This is all up to you and your preferences while trading. Some people care most about the prices while others prefer an easy-to-use platform by accepting to pay a little bit more.
If you ask us, what are the best exchange platforms, our answers would be:
As broker services;
As Trading platforms;
We would stay away from P2P platforms at all costs to minimize the risks in our trades. Let us know if you have any good or bad experiences with any of the above-mentioned exchange platforms. You can also share your favorite platforms that are not on the list by leaving a comment on this article.