The cryptocurrency market turned green. The major cryptocurrency, along with the rest of altcoins, are experiencing an uptrend. Questions like: where should I buy crypto? What is the best crypto exchange? – arise consequently. In order to provide you with multiple choices, we’ve collected the best crypto exchange to buy, sell, and exchange cryptocurrency. Here we go.
Best Cryptocurrency Exchanges
Types of Crypto Exchanges
The crypto industry is full of networks and platforms that enable seamless crypto purchase and trading. Since most of the time, users prefer using decentralized or centralized exchanges, we’ve gathered the core similarities and differences between these two types of exchange service providers and put them into a convenient table below.
Centralized Exchange (CEX)
A centralized exchange is the most common type of crypto trading platform. One might ask: why are centralized platforms more popular than decentralized ones? There are several reasons for that.
Centralized exchanges work faster. Trading engines implemented in CEXs are capable of executing trading orders quicker than in decentralized platforms.
CEXs allow users to deposit fiat currency. Generally, cryptocurrency is an unregulated entity that can’t be controlled by anyone. However, due to its popularity and availability, the authorities are constantly introducing new laws, regulations, and taxes on crypto assets. A few DEXs provide users with fiat deposits. Most of the time, they use stablecoins, which basically have the same value as the fiat currency they are pegged to. Centralized exchanges (and it is important to note, the regulated ones) are able to operate with a range of fiat currencies.
Centralized exchanges obtain more liquidity bringing a better trading experience to users. CEXs have more users that, in their turn, provide liquidity to a particular exchange.
Centralized exchanges provide more trading features. Since the blockchain and crypto industries are developing rapidly, crypto trading has quickly become a vital part of the community’s daily routine. As a result, most of the features available on the regular exchanges have migrated to the industry of decentralized finance. Margin and spot trading, futures contracts, and other trading tools and options can now be found on the largest crypto exchanges.
Decentralized Exchange (DEX)
Decentralized exchanges or DEXs, for short, are another platform for crypto trading. Unlike centralized exchanges, DEXs pursue the philosophy of pure decentralization and lack any centralized authority that can participate in the trading process.
Decentralized exchanges are more secure. CEXs store all the vital information on private servers that can be hacked, compromised, be broken, and so on. DEXs interact directly with a blockchain making every node involved in the process a small server. As we know, it is nearly impossible to hack the blockchain. Therefore, a DEX provides highly secure cryptocurrency trading.
Usually, DEXs charge smaller fees because there is no need to pay salary to a large group of people that, for example, are involved in operational processes on the centralized exchanges.
DEXs are non-custodial platforms which means they neither store your funds or private keys, so you can be sure that your crypto assets are safe and sound. Another great advantage is that DEXs do not require users to pass KYC procedures, keeping users’ privacy and anonymity.
Decentralized exchanges can’t be regulated by any governmental structure because blockchain is all about the lack of any authorities.
Centralized Exchange (CEX)
There is always a risk of hacks
It is almost impossible to hack
Slower than a CEX
Fees can be high
Fees are low
Don’t require KYC
A wide choice of trading features provided
A poor choice of trading features provided
Regulated or requires license
Coinbase and Coinbase Pro: Best Overall
Coinbase is considered to be the best crypto exchange in the US. It has all the features that are necessary for new and professional traders. Since the exchange has been on the market for almost nine years (founded in 2012), it provides great liquidity to both the most popular trading instruments and the new-born ones.
Coinbase is a centralized and regulated trading platform. In case of emergency, users’ funds will be fine since they are protected by Coinbase insurance.
The crypto exchange offers a lot of services for crypto enthusiasts, including cryptocurrency wallet, cryptocurrency custody (for institutional investors), and many more. However, the exchange charges pretty high commission fees, especially if you utilize a regular trading account and not a Coinbase Pro. Learn carefully about all the fees charged in the Coinbase Help Center.
Coinbase operates in more than 40 states. Since the US has a complicated taxation system, Coinbase cooperates with tax authorities and might help you calculate your crypto taxes correctly.
Binance: Best for Altcoins
Although Binance is a relatively new exchange on the crypto market (founded in 2017), it has managed to become the leading trading platform in the industry. Binance provides each user with a native trading terminal that allows anyone, no matter novice or experienced trader you are, to start to trade crypto with ease.
Binance managed to build the whole ecosystem of crypto trading services and products. The exchange provides both margin and spot trading, a decentralized exchange (DEX), and even a derivative market like futures, options, etc. Moreover, Binance offers a wide range of trading instruments and features that will enhance your trading experience even more.
The crypto exchange has a flawless reputation in the community. However, there were cases when the platform was under a hacking attack. In order to protect your crypto assets, it is highly recommended to store your funds in a digital wallet rather than within the exchange. The 2fa is a must.
Bisq: Best Decentralized Exchange
We’ve already described the benefits of using decentralized exchanges. Here comes Bisq – a DEX that allows you to trade BTC for fiat in a secure peer-to-peer way. The choice of fiat currencies is pretty wide, so you probably find your national currency there. Bisq supports over 15 payment methods.
There is no registration required as Bisq cares about the privacy of your personal information. Unlike centralized crypto exchanges, Bisq does not store users’ funds. Deposits are held in 2-of-2 multisig wallets.
At its core, Bisq is software that runs on your device. It is open-source, which means anyone can see its source code and license.
Changelly and Changelly PRO
If you want to instantly buy, sell, or exchange cryptocurrency, then Changelly is your last stop. Being on the crypto market for over five years, Changelly serves as a fast crypto exchange that is capable of processing your crypto swaps within minutes while providing multiple payment options (Visa, Mastercard, Apple Pay, bank transfer). Since Changelly has partnered with major fiat-to-crypto aggregators like Simplex, Digitex, and others, users are provided with the best crypto rates on the market.
In 2020, we launched a full-fledged trading platform Changelly PRO that both crypto novices and professional traders can use. If you want your trading to be secure, Changelly PRO might be one of the best options for you. The exchange provides native UX/UI, a range of trading instruments, spot and margin trading, and much more.
Frequently Asked Questions (FAQ)
We’ve collected the frequently asked questions regarding the best cryptocurrency exchange. Perhaps we can find the answer to your question here.
What are the top 10 Cryptocurrency exchanges?
We’ve chosen the top ten crypto exchanges that, in our humble opinion, can be considered the best ones in the industry.
What are the main features of the best crypto exchanges?
When choosing a crypto exchange, be sure that it provides top-notch security features. Among other important factors that should be considered are liquidity, trading volume, commission fees charged for deposit/withdrawals, nativity of a trading terminal, availability, trading features, etc. It is quite vital to do your own research (DYOR) before trusting your funds to a third party.
How to pick the best crypto exchange for yourself?
Write down the features that are essential for you. Would it be the nativity of a trading terminal or lucrative trading tier program? The choice is yours. Set the priorities, and off you go.
Which cryptocurrency exchange is best for beginners?
Most of the cryptocurrency exchanges suit both professional and novice traders as they provide quite native trading terminals, UX/UI, and so on. However, newcomers should avoid crypto platforms that enable high-risk trading options like trading with high leverage.
Perhaps, such platforms as Bitmex work better for more experienced traders.
Beginners can take a look at Binance, Changelly PRO, Kraken, etc.
What is the difference between a crypto exchange and a brokerage?
To put it simply, a cryptocurrency exchange is an intermediary that connects buyers and sellers directly. It can charge some commission in doing so.
A crypto brokerage acts as “an intermediary between intermediary.” Usually, a brokerage is a company or an individual that places a trading order on the crypto exchange for its customers. A brokerage also charges premiums for providing its service.
Are all the top cryptocurrency exchanges based in the United States?
No, not all the top cryptocurrency exchanges are based in the United States. It is fair to say that the US is one of the leading countries in crypto usage. However, a large player, Bitfinex headquarters in Hong Kong, while Binance is based in Malta.
What is the best mobile crypto exchange app?
Changelly mobile app will provide each user with swift cryptocurrency swaps and purchases. The application is available for both iOS and Android users. Exchange and buy BTC and over 160 digital assets on the go.