Best Cryptocurrency Exchanges 2020
Exchanges connect Fiat Currency to Cryptocurrency
As a new participant, cryptocurrency exchanges are the link that will provide us the interface that connects us with the world of cryptocurrency.
There are ever more and more people every day looking to cryptocurrency to make a handsome income.
The business of bitcoin and other popular cryptocurrencies has not only sustained but boomed over the past couple of years. Investors have dedicated millions of dollars to set up elaborate mining infrastructure to mine bitcoin.
Changes in Cryptocurrency
Financial experts are scratching their heads, conjecturing when the next boom or decline in cryptocurrency will occur. They do this in order to reap the greatest rewards from investing in bitcoin and cryptocurrency at the right time.
New crypto exchanges are emerging every day from the ashes of fallen old-timer exchanges which have ceased to function. The prospect of virtual excites everyone but it is a risky business and any uneducated investment can force one on their knees.
Growth in the Industry
To put things into context, consider this: The total market capitalization of all the cryptocurrencies was little less than $18 billion in the year 2016. The same figure boomed to a staggering $566.8 billion in the year 2017. And what happened the next year? It declined to less than $130 billion.
This is a game of fire and if you are not careful, you could incur irredeemable losses. Part of gaming the system of cryptocurrencies and exchanges/agencies/brokerages that facilitate its trade is developing a deep and broad understanding of cryptocurrency exchanges around the world.
There are many. Each with its unique set of offerings and one of which you may find ideal for your setting. This article will provide an in-depth review of some of the best cryptocurrency exchanges around the world.
What are Cryptocurrency Exchanges?
Before we discuss each of these in detail, let’s understand what cryptocurrency exchanges are.
Cryptocurrency exchanges are platforms that facilitate the selling/buying/exchanging of cryptocurrencies. There are two categories of cryptocurrency exchanges.
The first kind is called fiat cryptocurrency exchange. They allow you to buy cryptocurrency in exchange for traditional currencies such as Dollars, Yen, Pound and almost all of the centralized (government-backed) cryptocurrencies.
The second type of cryptocurrency agency is called cryptocurrency to cryptocurrency exchanges. As the name suggests, these allow you to exchange one kind of cryptocurrency with another.
Factors to look out for when choosing the best cryptocurrency exchange
New cryptocurrency exchanges keep springing up every day as old ones decay. As an interested crypto enthusiast, you have a lot to choose from. There are a couple of factors that you should look into before registering with any of the exchanges.
Make sure that the exchange you are visiting has good user reviews. A brief search online will take you through customer reviews on their services. If you have any questions, ask right away. If you are irked by a customer’s comment on the agency’s services, send them a private message and inquire as to what drove their impression so negatively.
Some of the exchanges operate in only a particular region. A few others might operate in your region but with restricted services. It is not worth your time and money to register with such exchanges. Search for agencies that are popular in your locality and that offer complete brokerage services.
This is a decisive factor. Every exchange agency sets its own exchange rate. Do not treat this as a trivial matter as you will be surprised how much you can save by going with an agency that offers you cryptocurrency at lower rates. This is especially true for those whose trade in cryptocurrency is hefty.
Top Cryptocurrency Exchanges
Binance is one of the most popular global cryptocurrency-exchanges out there in the market right now. It facilitates trade in more than 100 cryptocurrencies. By some accounts, it is considered as the biggest cryptocurrency exchanges.
The exchange was first created in 2017 and was originally located in China. However, as cryptocurrency laws are very strict in China, they moved to Japan. In 2019, it moved its headquarters to Malta, which is considered as the tax haven for cryptocurrency exchanges.
Binance went public in 2017. It was able to raise more than $15 million through its ICO (Initial Coin Offering). Since then, the exchange has been on a remarkable trajectory of growth. It has even developed its own virtual currency called BNB (Binance Coin). You can account for their success by considering the fact that the daily trade volume attributed to the exchange surpassed $1 billion.
As an interested crypto enthusiast, there are strong reasons why you should go for Binance as your representative exchange.
Diverse range of coins
One of the defining features of Binance is that they offer their customers a wide range of cryptocurrencies to choose from. As stated above, it deals in more than 100 major cryptocurrencies. This range includes Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) which are popular among enthusiasts. It also deals in relatively lesser-known cryptocurrencies such as CyberMiles (CMT) and ZCoin (XZC).
When it comes to the privacy and security of their customers, Binance means business. A two-tier security mechanism is enforced when a new entrant registers at the exchange. The extra layer of security operates by sending a special one-time code to the mobile phone of the potential new user. Moreover, Binance’s servers are protected by elaborate and sophisticated firewalls and other security measures that prevent the leakage of user data to some adversary.
One of the most remarkable things about Binance the reasonable exchange rate that they offer. For every cryptocurrency that is traded for another one, a 0.1% of the traded cryptocurrency is charged as the fee for the transaction. There are no charges imposed on deposits. However, service charges are levied for withdrawn money. The exact amount of this query depends on the cryptocurrency itself. So, if the price of the cryptocurrency is higher than the fee charged would also be higher.
Binance has a mobile application that is functional for both iOS and Android platforms. The application supports multi-lingual interface so that more people can understand and interact with the application with convenience.
Coinbase is another popular global cryptocurrency exchange based in San Francisco, California. It is considered to be one of the most user-friendly exchanges out there in the market. The interface for the platform is very responsive and users face little difficulty in navigating through the agency’s services.
Coinbase is one of the largest cryptocurrency brokers in the market. The house reserves that worth more than $20 billion. To this date, more than $50 billion has been traded in terms of cryptocurrency exchanging.
Coinbase is a brokerage. A brokerage is an entity that directly deals goods (in this case cryptocurrency) to its customers. So, you are not buying coins from other users but from Coinbase itself.
In case you are interested in investing your best buck in an exchange, be sure to not miss Coinbase when evaluating your options. Here is why…
Coinbase has built its reputation as one of the most authentic cryptocurrency exchanges in the market. As mentioned before, there are new exchanges setting up each day and it takes time before we realize how fraudulent or policy-compliant these exchanges are. Be assured, Coinbase is very legitimate. It operates in 30 U.S. states. It also brokers exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin with fiat currencies in approximately 32 countries, and bitcoin transactions and storage in 190 countries worldwide.
The fee structure for Coinbase is very simple. It charges 1.49% on bank purchases and 3.99% on credit and debit purchases. While it may appear that these fees are higher, they are generally less than other agencies that you are likely to find online. Due to the fee structure, it is recommended that you use a bank account to make purchases of the cryptocurrencies.
Coinbase is the most recommended exchange when it comes to beginners. As mentioned above, its user-interface is beautiful yet complete in its capacity to operate wholly. The simple design allows users to navigate through the services and tools with ease. It has a mobile application for both iOS and Android users.
Moreover, through its platform, the users can give in fiat currency and get cryptocurrency in return. Other methods of payment include debit/credit card, bank transfer, PayPal and a couple more.
Security is taken very seriously at Coinbase. The platform offers its own digital wallet to the users and IT IS GOOD. While nobody can guarantee with a 100% that they will protect your money, the digital wallet you get with Coinbase is one of the safest wallets that you can own with any exchange right now.
Based in the US, Bittrex is one of the most famous cryptocurrencies in the market right now. Founded in 2013, Bittrex deals in more than 190 cryptocurrencies. Bittrex is one of the larger crypto to crypto exchanges offering a large number of trading pairs into bitcoin – including all the major cryptos such as darkcoin, nextcoin and litecoin. They also offer NeuCoin and Ethereum.
The company was founded by Bill Shihara, Richie Lai and Rami Kawach. The founding team spent considerable number of years as security experts in tech giants such as Microsoft. Security has been a key feature at Bittrex and as we will see, it is most aggressively enforced in all of its services.
The current trading setup at Bittrex facilitates features such as instant buy or sell, good ‘til canceled (GTC) and stop loss. It is so robust in dealing with its customers in the most professional manner that customers take it online to commend their services. A brief search online will familiarize you with their trading standards. This is no surprise considering that Bittrex complies very strictly with the U.S. laws and upholds security and privacy of their services above anything else.
You have good reasons to consider Bittrex as your potential cryptocurrency exchange. Here is why…
Bittrex is so policy compliant that it often freezes the accounts of the users who are violating any policies stated by the company. This has resulted in generating negative views and a bad PR for the company but this all the more confirms how principally strict and upright Bittrex is.
Consistent fee structure
Bittrex is very straight-forward about how much it is going to charge you for the transaction. It has a flat 0.25% flat commission no matter what the nature of the exchange. This value may seem higher than what most of exchanges offer, but unlike those other exchanges whose service charges are subject to increase in the price of the cryptocurrencies they deal in, Bittrex offers the users a consistent commission rate.
It is amazing how widespread Bittrex is in terms of the countries that it services. Apart from Iran, Syria, Cuba, North Korea and the Crimerian region, Bittrex operates in every country around the globe.
Toronto based Bitbuy serves cryptocurrency trading needs of the Canadian citizens by offering them immediate access to major cryptocurrencies that include Bitcoin, Bitcoin Cash, Ether, Litecoin, Ripple and Stellar.
If you live in Canada, this is one of the best choices for an exchange that you could go for. It enjoys reputation as being one of the most user-friendly, responsive and active platforms that processes crypto queries at exceptional rates.
It offers greater convenience for Canadian citizens than most exchanges out there in the market right now. It offers Over the Counter brokering options for Bitcoin and other cryptocurrencies. This means that clients who wish to purchase a large volume of Bitcoin can get it faster with Bitbuy than with any other traditional exchange.
Bitbuy integrates a new digital wallet with its offerings. It makes the whole process of trading cryptocurrencies with the company a lot more easier. The setup is fairly easy and the interface is simple yet beautiful.
One of the great things about Bitbuy is the wide payment options. You can pay for your queries (requested cryptocurrencies) with some other cryptocurrency, Express Interac e-Transfer, Interac e-Transfer or Bank Wire Transfer.
Although they have a complicated fee structure, and if you are not careful you might incur an overly high bill for your queries but developing a general understanding of the fee structure will ensure that you enjoy the services of one of the cheapest exchanges.
The trading fee is divided into two categories. If you are a Maker, a 0.16% transaction fee is charged. If you are a Taker, a 0.26% fee will be deducted.
The deposit fees vary depending on the method you chose. You can find more on this using their website. For a rule of thumb, there are service charges with the deposited amount IF you do it with a cryptocurrency. For the average user looking to use e-Transfer combined with express trade, the charges work out at as 2.5%.
Bitbuy supports 7 cryptocurrencies. If you search for it online, you will meet tons of comments from Canadian citizens who praise the platform for their delivery system. Take this, the company has essentially two interfaces called Express Trade and Pro Trade. Each is built for a different customer.
Express Trade is targeted to attract beginner who have just started their cryptocurrency trading business and are more interested in instant buy and sell.
The Pro Trade, on the other hand, deals with trading experts who want to work down with lower fees, markets stats and other assessment aids that can help them inform their decisions.
While these are some of the best cryptocurrency exchanges in the market right now, you should take into account other exchanges as well. Each one has something special to offer. It is quite possible that you live in a region of the world where one cryptocurrency exchange is not suitable, but another might be ideal for your setting. And this can flip as soon as you change your location.
So there are intermingling factors at play and in the end, the best informant for you is your own mind sifting through the web for the best cryptocurrency exchange.