Best Cryptocurrency Exchanges Where You Can Trade Your Coins And Tokens

New investors who are planning to come into the cryptocurrency industry often have issues when choosing a cryptocurrency exchange to use. This is so because one has to be very careful when choosing one so as to avoid inconvenience while trading. No one wants to have get frustrated while using an exchange or get his funds stuck. There are tons of crypto exchanges but making use of one of the best cryptocurrency exchanges is what you need to thrive in this space.

What Is a Cryptocurrency Exchange?

A cryptocurrency exchange is a site where traders buy and sell various cryptocurrencies. There are several cryptocurrency exchanges that trade a variety of coins like bitcoin, litecoin, ethereum and many more. Investors can buy coins with either the U.S. dollar or trade different coins, like buying Electroneum with Bitcoin and so on.

Best Cryptocurrency Exchanges

Types of exchanges

Direct Trading: These kinds of exchanges offer person to person trading where customers from different countries exchange currency. There is no fixed market price on a direct trading exchange. Sellers set their own exchange rate.

Brokers: They are sites people visit to buy cryptocurrencies at a price which is set by the broker. These exchanges are the same as foreign exchange dealers.

Trading Platforms: These are exchanges that connect buyers and sellers and charge a given fee for every transaction.

The Best Cryptocurrency Exchanges

It is very important to get a good cryptocurrency exchange when beginning or continuing your journey of investing in cryptocurrency. Fortunately, we have got you a list of the best cryptocurrency exchanges around and what makes them unique.

Coinbase was founded in 2012 in San Francisco. This crypto exchange reportedly has a $1billion valuation. Coinbase is popularly referred as the "most beginner-friendly exchange."

Apart from being an exchange, Coinbase also serves as a wallet and tool set for crypto investors. There are four different cryptocurrencies that currently trade on Coinbase. The exchange-slash-wallet accepts fiat currency and charges a fee of about 1.49% to 3.99% per purchase.

Coinbase is a great platform for beginners coming into the crypto space to start with. It is an easy-to-use site where you can either buy coins like Bitcoin or Litecoin through their wallet. Advanced traders can also trade via their sister platform GDAX, which gives them more opportunity to trade with each other at lower trading fees. You can get their wallet on iPhone and Android interfaces.

Binance is the world's largest cryptocurrency exchange. It is one of the best cryptocurrency exchanges and has become more of a household name in the cryptocurrency world. Binance has attracted a lot of customers from all over the world who trade a volume of over $500 million daily. Therefore, Binance's over $1billion market cap is well earned. One other thing that makes Binance stand out is its low transaction fee, which is about 0.1%. The exchange currently has over 130 tradeable currencies.

Binance has got almost everything that a crypto enthusiast could want. Traders can also set their trading mode based on their experience with either beginner or advanced options. The exchange has its own coin called "Binancecoin (BNB)” which comes with a discount on fees when used to trade other coins.

One of the negatives on Binance is that you currently can't use fiat on the exchange and you also can't short sell or margin trade.

BitMEX hails from Hong Kong and was established in 2014. It is one of the premiere bitcoin trading platforms mostly used by pro traders. The exchange only trades one cryptocurrency which is bitcoin. BitMex exchange has gained much popularity among bitcoin enthusiasts and reportedly does about $1billion in transactions daily.

BitMex does not accept fiat currency but traders can short sell and margin trade on the exchange.
OKEx is another exchange from Hong Kong, it was established in 2014. The exchange has become popular for its wide selection of coins which is over 145 and its own token known as OKB. OKEx's token also offers traders discounts and voting capability in the company. Verified customers can also partake in margin or fiat trading. OKEx has about a 0.02% to 0.2% taker and maker fee.

Much like BitMEX, OKEx doesn't aloow prospective customers in the U.S. to use their platform due to regulation issues.

This cryptocurrency exchange was founded in China, Huobi hosts about 248 tradeable coins but not yet available for U.S. investors. This exchange has become a favorite as a result of its low transaction fees which is around 0% to 0.2%. The exchange has two different versions, the traditional Huobi OTC and Huobi Pro. The traditional version allows fee-free trading of cryptocurrencies with fiat currency while the Pro version allows for more advanced trading capabilities.

According to Coindesk, Huobi will offer a cryptocurrency exchange traded fund (ETF) which will be named HB10. The ETF will enable its users to have access to a lot of assets at the same time. 24/7 customer service is available for Huobi Pro users. Houbi is arguably one of the best cryptocurrency exchanges around.

LocalBitcoin is a P2P Bitcoin exchange that hosts buyers and sellers from all over the world. LocalBitcoins is a platform where you can meet up with people in your local area and trade bitcoins to cash and vice versa. The exchange charges a commission of 1% from the sellers. Traders set their own exchange rates on the site. LocalBitcoins takes a number of precautions in order to enhance secure trading. Once a trader requests for a trade, the money is held on LocalBitcoins’ escrow service and funds are released as soon as the seller confirms the trade is completed.

You don't need an ID to open an account on the exchange, the site is beginner friendly and instant transfers are available worldwide. Unfortunately, it is very difficult to buy huge amounts of bitcoin here and exchange rates are also high.

Poloniex was founded in 2014. The exchange is one of the world’s leading cryptocurrency exchanges. Poloniex offers a secure trading environment with more over 100 bitcoin cryptocurrency pairings. The site charges low trading fees which makes it more customer friendly. There are no fees for withdrawals except for the transaction fee required by the network. The chat box where every user has an opportunity of writing anything to seek for help is one of the unique tools on the platform.

Some of its pros include fast account creation, BTC lending, high-volume trading, user-friendly, low trading fees and open API. As great as this exchange looks, it does not support fiat and also has slow customer service.

ShapeShift is one of the best cryptocurrency exchanges that supports diverse cryptocurrencies such as Bitcoin, Ethereum, Dash, Dogecoin, Monero, Zcash, and many others. This exchange is a very good option for people who want to make instant straightforward trades. Traders can't buy cryptocurrencies with debit cards, credit cards or any other payment system. The exchange allows trading in only bitcoin and the other supported cryptocurrencies.

The cryptocurrency exchange is beginner friendly with a good reputation. It has a variety of cryptos available for exchange at reasonable prices. No fiat currencies are allowed on ShapeShift leading to limited payment options.

I’m pretty sure that this article has enlightened you on some of the best cryptocurrency exchanges you can use. Nevertheless, choosing a cryptocurrency exchange to use will basically depend on your location and specific needs. Cryptocurrency is still in its infant stage and so the industry is still highly unregulated and investors should proceed at their own risk. It’s a huge plus to choose an exchange that has FDIC-insurance or is compliant with regulators.

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