It seems that nowadays everyone is looking to buy cryptocurrency. Whether you are looking to buy in or sell cryptocurrencies I have the inside scoop for you in this report. Additionally, you can find a comprehensive altcoins exchange list and review here.
Trading cryptocurrencies used to be a complicated process, as there were few centralized exchanges that could facilitate a buy-and-sell transaction of different altcoins. Most trading platforms were centralized exchanges, meaning users had to trust third-party processors to keep their funds secure. However, today decentralized exchanges have been developed that offer more secure options for crypto holders.
These decentralized finance platforms, allow you to quickly and easily trade bitcoin or other altcoins. Additionally, most decentralized exchanges offer an encrypted crypto wallet as well to store securely store your coins. The decentralized crypto platform has been the catalyst that took crypto trading from being a local trading platform to global crypto exchanges.
What should I consider when looking for the best crypto exchanges?
The choice of cryptocurrency exchanges can include various aspects like security fees and the available cryptocurrencies. It is important to know the safekeeping and use of cryptocurrency. Cryptocurrencies can be traded either in decentralized or centralized exchanges format.
Centralized exchanges closely follow the regulatory rules of the government (including the SEC). Many cryptocurrency exchanges require a US dollar deposit and need to have a valid identification document on the application.
Decentralized crypto exchanges are not controlled by any one governmental authority. Decentralized exchanges certainly can be regulated by a governmental regulatory agency. However, user transactions and trading fees are not controlled by a central banking authority.
Fee structures
One of the most important factors you must consider when choosing your altcoins exchange is the fees associated with using a global cryptocurrency exchange. You will want to spend some time understanding the fee structures of the crypto exchange you settle on.
Some exchanges charge relatively low fees, while others charge higher fees. Still, others have fees that may be somewhat obscure to the initial glance. It’s important to do your research before setting up an account.
Keeping in mind that, while trading fees have a hung impact on crypto traders, fees are not the foremost consideration for finding the best crypto exchanges. I would personally, rather pay slightly higher fees and have the peace of mind that tight security offers.
When looking at the fee structures of an altcoins exchange, we need to carefully evaluate the following:
Trading Fees Explained
The trading fees structure is generally an exchange’s primary revenue stream. Sometimes these fees are fixed (flat-rate) or on some exchanges, trading fees can differ based on the coin. Some trading platforms charge trading fees for mainstream cryptocurrencies such as Bitcoin, and other fees for altcoins such as Litecoin, Ethereum, etc. Further, many times you may see another tier for fiat currencies, exchange-specific or in-house coins.
Take time to understand the trading fee structure of the exchange you are considering to ensure the coins you plan on trading have reasonable fees. Overall my favorite global cryptocurrency exchange for low fees is Coinbase.
Deposit and Withdrawal Fees
Beyond trading fees, altcoins exchanges charge fees for deposits or withdrawals to your exchange wallet. Generally, you will see varied costs based on the type of funding you use to make a deposit.
Deposit funds and Fiat currency fees
Generally, the fees charged by your fiat currency funding source will be higher than the fees charged by the exchange and blockchain. Good exchanges will generally offer the following funding options:
- Bank Account
- ACH transfers
- Wire transfers
- Crypto wallet
- Credit or Debit cards
For example, funding your account from a credit card will no doubt incur high fees because the exchange will pass on the credit card processing fees to you. You will likely find that the account funding source with lower fees will be another Bitcoin wallet. Most trading platforms have a clearly defined list of their deposit fees.
Again the deposit fees will largely be driven by the fiat currency banking system used to fund your crypto assets.
Withdrawal fees
Withdrawal fees, are the fees charged when you are ready to remove your crypto altcoins from one wallet to another wallet. Most of the time the withdrawal fees are lower than the deposit fees especially if you wish to deposit funds with a credit or debit card.
Interest, Margin, and Liquidation Fees
Some altcoins exchanges, such as Coinbase offer crypto margin trading. However, until you have significant experience trading you should avoid margin trading. Nevertheless, let me briefly point out a couple of considerations when it comes to margin fees.
First, you will expect to incur a charge based on the total margin amount plus an interest rate that is determined by current crypto market conditions.
Second, if your margin trade goes upside down your position could be liquidated (based on the exchange’s terms). This could not only cause you to lose your position but incur liquidation fees. Again, let me reiterate the necessity of fully underrating margin before trading on margin!
Taker fees vs Maker fees
There are two types of trading fees that exchanges charge: taker fees and maker fees. Taker fees are charged when you place an order that is immediately matched by an existing order on the order book. Maker fees are charged when you place an order that is not immediately matched by an existing order on the order book.
Crypto Exchanges usually charge lower fees for makers, because they are providing liquidity to the market. Takers are taking liquidity from the market, so they are typically charged higher fees.
Some global crypto exchanges use a tiered fees plan. In a tiered system, higher trading volume traders see low fees and low-volume traders have high fees. Others use a flat fee structure, where all traders are charged the same fee.
It’s important to compare the other fees charged by different exchanges before you trade, to make sure you’re getting the best deal.
Choosing the Best Alcoins Exchange with Liquidity
Another key factor to consider when choosing a good altcoins exchange is the total amount of liquidity available on their trading platform. Total liquidity refers to how much of a particular coin is being traded on your crypto exchanges trading platform at a given time. This affects how easily you can buy and sell altcoins on your chosen account.
Depending on the defined crypto exchange fees, Liquidity many times can affect trading fees. For coins with higher liquidity, you will likely see low fees. Conversely, when the liquidity and trading volumes are low you may see high fees.
The higher the liquidity a crypto exchange has, the easier it will be for you to get your trade orders filled. The faster your order is filled and your transaction completed the lower the chances of slippage occurring.
This is critical because if it takes time to fill your order the price can change between when the order is placed and when it fills. This is known as slippage. Slippage can dramatically affect profitability if liquidity is low.
3: Altcoin Exchange User interface
When considering your choice of an altcoin exchange, you must choose an crypto exchange that offers a user interface that balances user-friendly intuitive interaction and also provides at minimum two-factor authentication security. Some crypto exchanges have web interfaces that are intuitive and easy to use others are less easy to understand.
Much of the layout and interface will be a personal preference. Web app layouts and interactive menus are usually set up to cater to one particular culture or group. The moral of the story is to find one that fits your preferences and is laid out in a way that seems clear and organized to your preferences.
4: Choosing the Best Alcoins Exchange with Trading Limits
If you are new to crypto, trading limits will probably not be an immediate problem. However, as your experience and account size grows you may become conserved about trading limits.
As you evaluate your altcoins exchange options it would be prudent to consider the account limits. Some crypto exchanges set very low trading volume limits, while others have high trading volume limits.
5: Countries Supported
Most altcoin exchanges will recognize your country’s IP address. Their technology should alert you if they are not authorized to trade in your country. However, some may not utilize that location recognition technology. It would be quite consternating to go through the process of setting up an account and providing the required ID verification only to find the crypto exchange is not supported in your country.
Most developed countries have stringent regulations that oversee trading platforms. You should never trade with any cryptocurrency exchanges that are not regulated.
6: Altcoins Exchange Customer Support
Most everyone has some horror story about a bad experience trying to get customer support. Unfortunately, altcoins exchanges are not immune to these experiences.
Once you have narrowed your crypto exchange considerations down to two or three I recommend contacting the customer support system of the remaining considered options just to get a first-hand experience of their customer service response. This little exercise will quickly help you get a handle on some key customer service concerns.
The key issues to pay attention to are things such as the following:
- How easy is it to get in contact with a support agent?
- How responsive are their support agents?
- How knowledgeable are their support agents?
Before making the initial contact it is good to have a list of questions that you can ask and maybe even spread your contact with the support agent over several times to get a good feel of various agents and their efficiency.
Choosing the best crypto exchanges is an important decision that will impact your crypto trading experience dramatically. We do offer a free Crypto trading guide that will go more in-depth into all the considerations of beginning your trading journey. You can get your FREE trading guide here.
Decentralized Crypto Exchanges Overview
Decentralized exchanges are becoming increasingly popular, as more and more people look for ways to trade digital assets safely and securely. Learn about the advantages and disadvantages of decentralized exchanges and how they work in this comprehensive guide.
What is a Decentralized Exchange?
A decentralized exchange (DEX) is an online marketplace that allows users to trade cryptocurrency and other digital assets directly, without a centralized governing body like a traditional stock trading platform. DEXs offer greater privacy and security than traditional exchanges, as well as faster transaction times. With the growing popularity of these exchanges, it’s important to understand the benefits and limitations of using DEXs.
DEXs allow individuals to purchase and trade digital assets more securely as funds stored on a DEX’s platform are not held by a central organization, eliminating the risk of the exchange unexpectedly closing or becoming hacked. Additionally, decentralized exchanges facilitate fast transactions, with some DEXs allowing users to access funds instantly after depositing through their wallet.
This is advantageous for users who want more autonomy over how they manage their funds and allows them to trade in a peer-to-peer setting. However, one downside of using DEXs is that they have less liquidity than centralized exchanges as there are fewer traders on these trading platforms and larger spreads which makes it difficult for users to realize profits.
Comparing Centralized Exchanges and Decentralized Exchanges.
Centralized exchanges are the traditional online trading platforms that most people are familiar with. They offer a high degree of security by holding users’ assets in private wallets and running tight protocols to protect user accounts against hacking attacks. The downside is that users cannot have direct access or control over their funds as they are held in wallet owned and managed by the exchange.
On the other hand, Decentralized Exchanges allow users to maintain full control of their cryptocurrency by allowing them to store the funds in a personal wallet while still being able to trade on the platform. Additionally, because decentralized exchanges do not require users to input sensitive personal information, they tend to offer higher levels of privacy and anonymity than centralized exchanges.
While decentralized exchanges offer users the benefit of having full control over their coins, they also come with certain drawbacks. For example, decentralized exchanges typically have less liquidity than centralized exchanges, meaning buyers may not always be able to find a seller and prices can be more volatile. However, in my experience this impact is increasingly smaller with time.
Additionally, most decentralized exchanges lack basic features such as account creation and identity verification, making them not suitable for new investors who need more guidance when trading cryptocurrencies. Ultimately, the decision between which type of exchange to use should ultimately depend on the needs and preferences of each individual cryptocurrency trader.
Crypto Exchanges List
Here is a short list of the best crypto exchanges I use and recommend.
There certainly are other reputable crypto exchanges. So when I talk about the best crypto exchanges I do not mean to exclude some that rate very high in terms of security and customer service. The above are the best crypto exchanges based on my personal experience.
Here are a few that I believe are reputable but I am currently not a customer. To be clear I have nothing bad to say about these but my rule is to never recommend to you something I am not using myself.
- Krakin – Has a reputation for low trading fees
- Localbitcoins
- Robinhood
Cryptocurrency Exchange FAQs
Here are some frequently asked questions about cryptocurrency exchanges. Which aspects should be considered while comparing an exchange plan? The platform includes several key features including the number of tokens and tokens, the price charged or commissions, user-friendly features, the protection of the service, customer support and features (such as cryptocurrencies account). How do I compare cryptocurrency exchange to wallet? Wallets are used for protecting your digital currencies. The cryptocurrency exchange was built to enable users to sell or buy cryptocurrencies quickly.
How To Deposit USD To Buy Bitcoin And Cryptocurrencies?
Coinbase is an extremely popular cryptocurrency exchange platform that offers a simple process. These sites follow similar procedures below.
Coinbase has a $5 bonus on every new customer who opens an account. Coinbase allows the transfer of funds from your bank account to open a Coinbase account. You can also use a credit or debit card to buy bitcoin or pay by cash or check to the bank.
Credit or debit card purchases in bitcoin are expensive. Buying BTC involves entering USD and BTC currencies in the same transaction method. This is one reason many people always hold at least a small amount of BTC in their cryptocurrency exchanges wallet. That way anytime you wish to make a purchase with BTC you do not have to go through the process of converting fiat currency.
How do I buy Cryptocurrencies?
Many cryptocurrency exchanges accept credit card payments, wire transfers, or ACH transfers when making crypto purchases. This makes exchanging fiat currency for any cryptocurrency a breeze.
While most markets are just simple orders, other markets may offer more complicated orders such as limit orders and stop orders. When you buy bitcoins via a centralized exchange it usually is deposited into an unsecured crypto account.
The majority of regulated cryptocurrency exchanges keep assets in offline “cold storage” for protection.
What should I look for when choosing a Cryptocurrency Exchange?
The choice of cryptocurrency exchanges can include various aspects like security fees and the available cryptocurrencies. It is important to know the safekeeping and use of cryptocurrency. Cryptocurrencies can be traded either via decentralized or centralized exchanges.
Centralized exchanges are online platforms for trading digital assets which operate under the authority of the government, typically the SEC. Usually, these trading platforms require you to deposit U.S. dollars or a local fiat currency into your account before they can begin trading. You will be required to verify your residency with some form of government Id and something like a utility bill.
Why are some cryptocurrency exchanges not available in the USA?
It is important that U.S.-based cryptocurrency traders understand what platform is most effective for them. Cryptocurrency exchanges operating across the country must comply with the CFTC regulations and the Regulatory Framework for Financial Crime Enforcement – FinCEN.
Cryptocurrencies that operate in New York State are considered money services, which requires exchange operations operating around the area to obtain special licensing to perform their services.
I have published a crypto exchange list for USA traders here.
What is a Cryptocurrency Exchange? How does it work?
Cryptocurrency Trading Site offering an online experience to buy and sell cryptocurrencies. Bitcoin and Altcoins are used used as payment methods for cryptocurrency purchases. Users can exchange fiat currencies for cryptocurrencies and some exchange services allow customers to earn interest from the money in an exchange account.
If you are looking to earn interest and rewards, I have a full report on crypto staking here.
What is the safest Crypto Exchange in the us?
When selecting the right crypto exchange for you, it’s essential to evaluate the cryptocurrency exchange’s security practices. Check to make sure that the exchange encrypts all user data and transactions, applies two-factor authentication when buying or selling, stores customer funds in cold storage, and follows security protocols like KYC (Know Your Customer) and AML (Anti-Money Laundering). You can also refer to independent research from third parties as an additional filter.
Additionally, it’s important to look at the cryptocurrency exchanges’ track records. Has the exchange faced any notable security incidents in the past? Read reviews and do due diligence to ensure you’re choosing a reputable crypto exchange.
Finally, make sure that the cryptocurrency exchange is regulated in accordance with the established regulations for US crypto traders. This way, you can be assured of a secure and reliable experience when you buy and sell crypto on the exchange.
What is Crypto Futures Trading?
Futures trading with crypto assets is an advanced trading method and should only be done by experienced crypto traders. As crypto investors gain experience futures trading is an exciting tool to add to your trading arsenal.
Again let me stress future trading is only for professional investors. It is easy to lose a lot of money in futures trading if you don’t know what you are doing.
There are three major components to all futures crypto transactions.
Expiration Date
The Expiration date is when the terms and conditions of a futures contract are fulfilled. On this date, the buyer must purchase, and the seller must sell, their respective rights and obligations at the pre-agreed price. Traders may also opt to sell their contracts to other investors before the settlement date if desired.
Units per contract
When trading derivatives or futures, a unit per contract defines the amount of the associated asset that is represented by each contract. For example, one CME bitcoin futures contract corresponds to 5 U.S. dollars worth of bitcoin, whereas a futures contract on Deribit is equivalent to 10 U.S. dollars worth of bitcoin. The amount of each contract will vary depending on the trading platform used to purchase it.
Leverage
Leverage is a trading tool that gives investors the ability to increase their potential gains and losses by taking on additional capital. This allows traders to take bigger positions and increase their return on investment. However, it also amplifies risk, so leveraging should be done judiciously since the amount of leverage available can vary greatly between different exchanges.
Final verdict
It is important to choose the best cryptocurrency exchange for cryptocurrency trading or investing. There’s something to suit your needs, digital assets are an important tool that provides an easy and efficient way to trade. Coinbase is a great option for crypto traders who wish to trade on mobile devices. Coinbase or Kraken have the best strong security measures established. Experienced crypto traders seeking affordable trading fees and the widest selection of altcoins can make their home at Binance.
