Before we dive into exchanges, let’s freshen our minds about what cryptocurrency is. The idea behind cryptocurrencies is comparatively simple, while the technology and mathematics are not. Typically, a cryptocurrency is a digital or virtual currency that uses cryptography as a means for security and protection. Bitcoin is the most popular digital asset, followed by ethereum.
What Are Cryptocurrency Exchanges?
Digital currencies can be traded on cryptocurrency exchanges. These exchanges are platforms through which you can buy or sell cryptocurrencies for other digital assets or fiat currencies. For instance, you can sell bitcoins and buy dollars with the sold bitcoins, or you could trade Ether for bitcoins. These exchanges are an essential part of the cryptocurrency development rate.
There are private exchanges platforms, which are closed and operate strictly by invite, as well as those accessible to the public.
Also, there are local exchanges. Some are straightforward to use than others are; some exchanges are so adaptable that cryptocurrencies can be traded right through the built-in chat functionality of certain popular messengers, such as Telegram.
Things to consider when choosing a platform for beginners
Here are some things you will want to examine before choosing the best site to buy cryptocurrency suited for your speculative and trading needs.
Fees – A majority of exchanges charge fees for you to execute transactions on their platforms. Ensure that when you are signing up or planning to transact with a specific exchange that you know all that is there to know about its transaction fees.
Security and Verification Requirements – It is essential to understand these before starting out on any exchange. Most exchanges demand some kind of identity verification in the form of a driver’s license, passport, proof of residence, or other comparable documents before participating. The more elaborate the verification process on an exchange, the safer the platform.
Exchange Rates – Exchange rates are also significant, as you don’t want to sign up on a cryptocurrency exchange that charges unreasonable fees for exchanges and transactions. That just wouldn’t be financially savvy or fair to you.
Reputation – Cryptocurrency exchanges always have pros and cons. However, there is a positive general opinion about the top ones. The best exchanges have a steadfast reputation and are well patronized by traders.
Region – It’s also necessary to find an exchange that operates in your jurisdiction. Some exchanges may not support countries in Asia while supporting all of the countries in South America and vice versa. For instance, if you are living in Russia, ensure you pick the best exchange platform that operates in your region.
Now, let’s talk about some of the best cryptocurrency exchanges out there.
Coinbase is one of the, if not the, best bitcoin brokers, and the most trusted exchange platform in the world. It is also, regarding trading volume, the largest digital currency exchange platform in the world. Traders are allowed to purchase and sell bitcoins using payment methods like credit card, PayPal, and bank transfer.
To start trading on Coinbase, you will have to set up an e-wallet for purchasing and selling digital currencies.
It is worth noting that you can only purchase a few currencies like Bitcoin, Ethereum, and Litecoin on this platform. You would then need to use a platform like Changelly to convert these to other cryptocurrencies.
One of the best bitcoin exchange for beginners, Binance is an exchange platform on which a wide range of digital currencies available to buy and trade. It has a basic and advanced interface which you can switch between quickly. The company offers relatively reasonable fees, and it allows you to register and trade instantly without having to verify your trading account. You will then be able to withdraw up to 2 bitcoins per day, if you want to withdraw higher amounts you will then need to upload a “selfie” photo and your photo ID.
KuCoin is a South Korea-based exchange which is new but fascinating. It functions similarly to Binance in the fact that it lists new altcoins much faster than other exchanges, so it’s an excellent place to buy cryptocurrencies soon after their ICO meaning there is a more significant opportunity to profit by joining early. The interface is elegant and modern and much easier to surf than other older and more clunky platforms.
LocalBitcoins is a peer to peer crypto exchange used in most big cities all over the world. The general policy behind this exchange is that you can find individuals who live in your area and meet with them in person to conduct a transaction. The platform also provides options for buying cryptocurrencies using PayPal, direct-to-bank transfers, Square, and many other payment methods. The platform charges a tiny fee of 1% on each transaction in instances where sellers apply their exchange rate.
One of the best bitcoin platforms, CoinMama is a large bitcoin brokerage company that lets users buy coins with their credit/debit cards. CoinMama charges small fees on transactions. However, to make up for this, the limits for how many bitcoins users can purchase are much higher in contrast to Coinbase.
Users can obtain up to $5,000 of digital assets per day or about $20,000 each month. All you need to do to use CoinMama is to create an account, log in, and go to the profile page tab to fill in your personal information.
After this, you will be required to verify your account. Upon completion of the verification process, users will be able to obtain bitcoins on CoinMama.
CEX.IO is one of the world’s oldest cryptocurrency exchange platforms. However, CEX.IO can only be used with bitcoins and ethereum, despite being referred to as a cryptocurrency exchange.
If you want to buy other digital assets, you can use CEX and then a service called Changelly to change them to many other cryptocurrencies.
Choosing the perfect cryptocurrency exchange platform for your particular needs may be a time-consuming and challenging process.
Remember to take note of the verification processes, geographical services, fees, reputation, security, an exchange platform has to offer. Bear in mind that you are not restricted to using only one cryptocurrency exchange platform.
We hope the information given in this guide will help you in choosing which exchange platform to use.