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Finding a good and reliable crypto exchange is critical for trading. In this article, you will learn about the best and most trusted crypto exchanges to buy and sell Bitcoin.
Also, we will highlight the best and most recognized crypto exchanges in the market. Furthermore, you will also learn how to choose a trading platform. This includes the security policies to safeguard users’ assets, payment methods supported, services offered, and several others.
What is a cryptocurrency exchange?
A crypto exchange is a marketplace where people can sell, buy, trade, and store many cryptocurrency coins and tokens. Per exchange, people can view info like a coin’s market cap and prices of cryptos.
For example, if in NYSE, you can trade options and equities, in FOREX, you can trade stocks and foreign exchanges. In many digital asset exchanges, you can access the markets of your favored crypto and start trading.
Crypto exchanges are where you can buy, sell, or exchange cryptos for another digital currency or fiat currencies like U.S. dollars or euros. However, unlike stock exchanges with specific trading hours, crypto exchanges are active 24/7.
How does a crypto exchange work?
Crypto exchanges allow the conversion of one crypto to another and the buying and selling of cryptocurrencies. These platforms set the price of digital assets, both coins, and tokens, based on trading activities.
It is important to note that crypto exchanges are not connected. This means that crypto prices in the market differ depending on the buy and sell activity (order) on each of the exchanges.
Each crypto exchange has its options and functions for users. To profit, traders use the trading pairs of their owned assets. Every exchange determines the price of Bitcoin, Ethereum, and other crypto-assets based on its volume of trades. And also the supply and demand of its users. This means that the larger the exchange, the more relevant the price you get.
But due to the variable nature of crypto, there is no such thing as a ‘stable’ or ‘fair’ price for Bitcoin or any other asset — it always depends on the market movement at a specific timeframe.
The Most Trusted Crypto Exchanges to Buy and Sell Bitcoin
A crypto exchange is deemed trustworthy if it adheres to all relevant financial regulations, maintains the highest standards of safety and security, and is open about its business practices. The most trusted crypto exchanges to buy and sell Bitcoin include Binance, Kraken, Bittrex, Coinbase according to users’ experiences.
Created in 2017 by Changpeng Zhao (C.Z). Binance was initially based in China. But Binance had to relocate headquarters to Japan. And later to Malta in search of a convenient regulatory environment.
Binance is currently the largest cryptocurrency exchange in trading volume since 2018. Additionally, it is the leading trading platform. More so, it supports about 340 digital assets and more than 1,100 trading pairs.
Binance has the most extensive features list of any crypto trading platform. Here are some of them:
- Trading – spot, margin, derivatives trading, OTC and P2P
- Staking – supports many coins.
- Investing – through Launchpad
- Learning – learn everything about blockchain and crypto in the Binance Academy.
- Lending – lend your crypto to other Binance users or borrow to help your crypto trades on Binance Savings.
- Storage – Store your crypto in Binance’s affiliate wallet service Trust Wallet or keep your coins within your Binance account.
Payment Methods & Fees
Binance offers free deposits. But, the payment method provider may charge a transaction fee. Also, many payment methods depending on the users’ location.
Founded in June 2012 by Brian Armstrong and Fred Ehrsam, Coinbase is one of the oldest crypto exchanges in the market. Also, it is one of the largest and crypto exchanges to buy and sell Bitcoin. It is a San Francisco-based firm.
Coinbase caters to retail and institutional investors alike through its Coinbase.com and Coinbase Pro properties. Coinbase is a highly regulated exchange trying to adhere to all financial regulations in every market to which it has expanded. More so, it holds BitLicense issued by the New York Department of Financial Services (NYDFS).
It has approval to adheres to the U.K. and E.U. financial policies. Moreover, it functions in over 100 countries across the world.
Coinbase provides many features, such as:
- Trading – you can buy and sell crypto through Coinbase.com and trade these assets on Coinbase Pro.
- Staking – Coinbase also lets its customers earn staking rewards by holding specific assets within their accounts.
- Storage – Coinbase allows its retail clients a mobile wallet and a web wallet to store their coins and tokens.
- Learning – Coinbase Learn is a service that provides educational and informational materials to Coinbase customers to get them up to speed on blockchain and crypto. Learners also get rewarded for engaging in the process.
- Investing – Through Coinbase Ventures, the exchange invests in startup businesses creating solutions within the blockchain ecosystem.
- Business solutions – Coinbase also gives a payment integration solution that enables firms to accept cryptos on their online stores. It is called Coinbase Commerce.
Payment Methods & Fees
Coinbase supports many payment methods to various customers depending on their location.
Coinbase is not the cheapest exchange to trade crypto but, its fees are competitive within the overall crypto trading industry. Its fees depend on the customer’s location and the chosen payment method.
Kraken claims to be the most trusted cryptocurrency exchange in the market. It is the oldest Bitcoin trading platform following its creation in 2011 by crypto Jesse Powell. It is based in San Francisco.
Kraken is a highly regulated platform. Furthermore, it offers many crypto trading pairs against many fiat currencies. This includes USD, EUR, GBP, AUD, JPY, and CAD. Moreover, the exchange is available in various countries.
- Trading – Kraken is both a broker and an exchange. It allows its users to buy, sell and trade many crypto assets. There are also OTC markets for high-volume users, indices, futures markets, and margin trading, for derivatives traders.
- Staking – similar to Coinbase and Binance, Kraken provides its users a staking service. This supports coins like Ethereum, Tezos, and many more.
- Learning – Kraken offers in-depth educational materials from blog posts to long-form tutorials to help beginners learn blockchain tech. Also, other topics related to crypto.
- Storage – Kraken also offers crypto and fiat storage features through its web wallet with an emphasis on strong security.
Payment Methods & Fees
Kraken also offers a broad range of payment options to fund your account. Moreover, the payments dependent on your location including SWIFT, USD deposits, and many more.
Bittrex is a Seattle-based crypto exchange. It is founded in 2014 by Bill Shihara, Richie Lei, Rami Kawach, and Ryan Hentz. Moreover, the exchange was originally launched as a crypto-to-crypto platform enabling its users to trade their digital assets for other cryptos. But, over time, the exchange has allowed crypto purchases using fiat currencies with the U.S. Dollar.
According to data on Coinmarketcap, the exchange is processing an average of over $200 million worth of crypto trade volume every 24 hours.
Notably, Bittrex claims that its strength is security. According to history, the exchange has no security breaches or hacking incidents. This success can be credited to its founders, who combined fifty-plus years in the security field. The founders have, in the past, expressed their path to exchange safety as “paranoid security.”
Bittrex Exchange is without a doubt one of the popular and most trusted crypto exchanges.
Bittrex has limited features compared to other most trusted crypto exchanges for buying and selling cryptos. So far, its clients can only access two services which are:
- Trading – customers can either join in spot or margin trading of 330 supported currencies over many markets.
- Storage – Bittrex also provides a web wallet service allowing their clients a safe place to save their crypto.
Payment Methods & Fees
Bittrex has a very competitive fee plan. Like other exchanges, it also supports liquidity creation by charging lower fees to makers compared to takers.
Bittrex provides two payment methods. These include:
- Crypto deposits
- Bank account deposits for the U.S. Dollar currency
These are the most trusted crypto exchanges to buy and sell your digital assets in 2021. We have also highlighted our choices of the most trusted exchanges in the market currently based on our identified factor cryptos. The exchanges are Binance, Coinbase, Kraken, and Bittrex.
Now you can choose which one you want to start with based on the availability in your location. Also, you can try any of the platforms and find out which one you like best.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.