One of the pre-requisites of trading in cryptocurrency is the process of buying and selling cryptocurrency for other currencies. This is where a cryptocurrency exchange software comes in.
Here is our guide on different cryptocurrency exchange platforms and the best platforms that can be used to start trading in cryptocurrency today. Let us start with what a cryptocurrency exchange platform is.
What is a cryptocurrency exchange platform?
Simply put, a cryptocurrency exchange platform is a place where you can buy and sell cryptocurrencies such as Bitcoin, Ethereum, Ripple, Litecoin, etc. using either other cryptocurrencies or fiat currencies such as USD, EURO, etc.
Cryptocurrency exchange platforms charge a small number of fees for every transaction that takes place on the exchange. A cryptocurrency exchange platform is an indispensable part of the cryptocurrency ecosystem since you have to obtain currency over an exchange to start any kind of trading in crypto.
With the popularity of cryptocurrencies being at an all-time high and the rising value of crypto like Bitcoin (valued at 6,645.00 USD at the time of writing), many cryptocurrency exchange platforms have cropped up all over the internet.
In this article, we have curated a list of the best cryptocurrency exchanges along with their unique features and why you should check them out today.
What should I look for in a cryptocurrency exchange platform?
Before deciding on a cryptocurrency exchange, here are some features of an exchange that you should look out for.
- Fees: Each exchange will charge you a certain amount of fees on every transaction wherein the rates differ from one exchange to another. Consider and compare the fees on different exchange platforms and choose the one that seems most reasonable.
- Support for Currencies: Different exchanges support different currencies, and the list of currencies supported can easily be found on their websites. Some exchanges are crypto-only, and you will not be able to trade fiat currencies for crypto on these platforms.
- Payment Options: The payment methods for buying cryptocurrencies can range from bank transfer to credit/debit card to PayPal. If you are already set on a payment method, then you should look for an exchange that supports it.
- Functionality: Before deciding on an exchange, make sure to conduct some research into the working of the exchange and what features it has to offer. The style of trading can also differ from one exchange to another.
Which are the best cryptocurrency exchange platforms?
Given below is a list of the best cryptocurrency exchanges that you should check out if you want to start investing in cryptocurrency.
Coinbase is popular as a user-friendly cryptocurrency exchange platform that is ideal for beginners.
The user interface is sleek and simple making cryptocurrency trading very easy and straightforward. The process of creating an account on Coinbase is also hassle-free. In terms of security, Coinbase is one of the most trusted names in the crypto industry.
The cryptocurrencies supported on Coinbase are Bitcoin, Bitcoin cash, Ethereum, Ethereum Classic, and Litecoin.
Binance is the preferred exchange platform when it comes to trading in cryptocurrencies. One notable feature of Binance is its extremely low trading fee.
If you the native coin of Binance, i.e., Binance coin, you will get a sizeable discount on all your transactions. Binance is also one of the very exchanges that extend support for mobile phones via their Android and iOS applications.
Binance is known for the long list of cryptocurrencies that it supports, the most notable of them being Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, Dash, NEO, Zcash, Litecoin, etc.
Kraken is one of the earliest and most trusted cryptocurrency exchanges on the internet. Compared to exchanges such as Coinbase, Kraken is much more sophisticated and advanced. What it lacks in simplicity, it makes up for with a bunch of other trading tools and services.
Kraken is the cryptocurrency exchange of choice for experts in the cryptocurrency field. It offers support to many different cryptocurrencies such as Bitcoin, Ethereum, Monero, Ethereum Classic, Zcash, Litecoin, Dogecoin, Ripple, Stellar, etc.
Cex.io is another cryptocurrency exchange platform that is targeted at users who are new to cryptocurrency trading.
With its website and mobile application, users can access an instant Buy/Sell option that simplifies the entire process of buying and selling process of cryptocurrency. It is known for providing the best security features along with high liquidity and cross-platform trading.
The currencies that are supported on Cex.io are Bitcoin, Dash, Ethereum, Ripple, Zcash, and Stellar.
Bittrex is the exchange platform that handles the largest number of crypto transactions in the world. Its popularity as a cryptocurrency exchange is due to its fast registration and verification process, small trading fee, high stability, and quick transactions.
Bittrex offers support to more than 190 cryptocurrencies including ones like darkcoin and nextcoin. However, Bittrex is a crypto-only exchange, and fiat currencies cannot be used on this platform.
Whenever you pick a cryptocurrency exchange, do make sure to exercise caution. Since exchanges are connected to the internet, hackers are always on the lookout to steal funds off accounts.
Cryptocurrencies are volatile in nature, and a small investment can lead to significant losses if the market crashes. Keep abreast of market trends to keep your coin safe.