Cryptocurrency exchanges are websites that enable people to buy, sell, or exchange different virtual currencies for other coins such as Bitcoin or fiat currencies such as the US dollar. Many exchanges don’t require ID verification. However, if you are a serious trader, you’ll need to verify your ID as it come with more trading options.
Cryptocurrency exchanges are of three main types. Trading platforms are websites that only take a transaction fee after connecting buyers and sellers. Direct exchanges allow people from different places to trade one on one. The sellers set the market price. Brokers exchanges act as foreign exchange dealers enabling people to buy different coins at a price that they give.
Factors To Consider When Selecting An Exchange
Although Cryptocurrency exchanges provide almost similar services, you need to do a little homework to ensure you trade safely. Before opening an account and funding it, you should consider;
Verification requirements – Due to increased regulation in the US, Europe, and other regions, more exchanges are now requiring their clients to verify their identity. Verification is important as it enables the exchanges to meet legal requirements and control the use of virtual currencies in illegal activities such as money laundering and tax evasion.
Payment methods – Some exchanges only support Crypto deposits and withdrawals while others accept both the coins and fiat currencies. PayPal, wire transfer, bank deposit, and credit and debit cards are some of the popular payments methods available on different exchanges.
Charges – Most Cryptocurrency exchanges rely on the fees they charge their customers. Different trading platforms will charge different withdrawal, transaction, and deposit fees.
Top Cryptocurrency Exchanges
Kraken is one of the most reliable exchanges as it has been around for long. However, it has more features that require a good understanding of order types and order books hence ideal for experienced traders. The exchange is also popular for its low fees.
Binance is currently the world’s largest exchange. The Malta-based website is especially popular because of its low fees of only 0.05 percent per transaction. Apart from supporting many languages, the exchange also lists many coins providing the users with more trading options.
If you are just joining the Crypto industry, Coinbase is one of the best exchanges to begin with. The website has a clean interface making it easy to buy and sell different coins. The exchange is accessible in the USA, Australia, Europe, the UK, and Europe etc.
Bittrex is one of the largest Cryptocurrency exchanges. The Seattle-based exchange supports a bunch of altcoins not available in other exchanges. The trading platform’s good volume across different pairs has made it attractive to many traders. Given that it has been around since 2014, it could be regarded as one of the most reliable exchanges.
Unlike most of the other exchanges, LocalBitcoins is a peer-to-peer Crypto trading platform. The website connects Bitcoin buyers and sellers and allows them to set their payment method. The exchange enables people to buy Bitcoin in different countries worldwide. The Finland-based website was established in 2012.