Bitcoin is a type of virtual currency that you can use for digital purchases or you can trade like stocks or bonds. To buy and sell cryptocurrency including Bitcoin, you need to use a bitcoin exchange.
The best cryptocurrency exchanges are secure, cost-effective, quick to set up, easy to use, and accept a variety of funding sources. Here are our picks for the best places to buy bitcoin and altcoins.
Befor that, you should know about some thing.
What is cryptocurrency
A cryptocurrency is a virtual currency that is protected by cryptography, which prevents it to be double-spent and counterfeited. Many cryptocurrencies are decentralized networks based on the blockchain technology—which relies on distributed ledgers enforced by a diverse network of computers. This ensures that transactions made with cryptocurrencies are anonymous and untraceable, which enables both parties involved in the transaction to not share their sensitive data with third parties such as banks or other transaction providers. Security put aside, using cryptocurrencies have several other benefits such as:
•Elimination of Banking Fees
•Low Transaction Fees for International Payments
•Being accessible from anywhere and from any device that have an internet connection
What are Cryptocurrency Exchanges?
Cryptocurrency exchanges provide liquidity for you to trade your cryptocurrency for USD, stablecoins or other altcoins. The market price of a cryptocurrency is determined by buy and sell orders on the exchange.
You could also use a crypto brokerage, which only slightly differs from a cryptocurrency exchange. Crypto brokerages set the price of crypto assets based on the market price of the asset, but the price of crypto on exchanges is directly determined by investors’ buy and sell orders.
How do Cryptocurrency Exchanges Work?
Cryptocurrency exchanges work in a similar way to stock exchanges. Investors can either place a limit order or a sell order on an exchange, providing liquidity for other investors on the platform.
Buy and sell orders can be placed as either market or limit orders. Market orders buy the crypto asset at market price, while limit orders buy or sell crypto at the price you specify. If the market price never reaches the price of your limit order, then your order won’t get executed.
Types of crypto exchanges
Trading Platforms – These are websites that connect buyers and sellers and take a fee from each transaction.
Direct Trading – These platforms offer direct person to person trading where individuals from different countries can exchange currency from their bank account. Direct trading exchanges don’t have a fixed market price, instead, each seller sets their own exchange rate.
Brokers – These are websites that anyone can visit to buy cryptocurrencies at a price set by the broker.
Top cryptocurrency exchange in 2021
Fees: 0.1% for the taker side and 0.1% for the maker side. This scales down with trade volume to 0.02% for both sides of the trade. Using Binance’s native cryptocurrency, BNB, lowers fees by 25%.
Why we choise it: Binance is best suited to people who would like to trade or invest in lesser-known altcoins. For example, Coinbase offers 46 different cryptocurrencies to trade while Binance has over 50. It may seem like a small difference, but each coin offers users more opportunity.
Pros
•Lower fees than other commonly used exchanges
•Large variety of cryptocurrencies and trading pairs
•More advanced charting
Cons
•Geared for more advanced users
•Binance US has fewer trading pairs than its international counterpart, though it still has over 100 trading pairs
•22 U.S. states, like New York, are not supported by Binance US
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fees: Huobi charges fees for trading on this platform. The fees are fixed at 0.20% and is relatively high if you compare it to Binance. When you use the basic fee rate, you don’t get any discounts whatsoever.
Why we choise it: The Huobi.Pro exchange platform is an impressive piece of tech and is up there with the best trading platforms of traditional financial markets. Price feeds, charting, market depth data and even profiles describing individual cryptocurrencies are all nicely laid out within the trading interface. The alternative HADAX market that supports smaller alt coins and tokens also benefits from the same professional platform interface and functionalities.
Pros
•Impressive trading platform
•Over 100 cryptocurrencies and tokens supported on the main exchange
•Alternative HADAX exchange listing altcoins that are voted on
•High-level cybersecurity
•Strong customer support
Cons
•Fiat deposits and withdrawals not supported
•Lengthy account registration process
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Fees: Between $0.99 and $2.99 depending on the dollar value of the purchase.
Why we choise it:The most widely known and used cryptocurrency exchange in the United States is Coinbase. Coinbase was founded in 2012, not very long after the release of Bitcoin’s code in 2009, and is a fully regulated and licensed cryptocurrency exchange. Coinbase currently has licenses to operate in over 40 U.S. states and territories.
Pros
•Solid variety of altcoin choices
•Extremely simple user interface
•Very high liquidity
Cons
•High fees when not using Coinbase Pro
•User does not control wallet keys
•Fewer altcoin trading options than some other exchanges
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Fees: All market orders are charged Kraken’s taker fee. Taker fees begin at 0.26% of your total order value and can go as low as 0.10%.
Why we choise it: Kraken is a cryptocurrency that offers access to more than 50 supported coins and tokens, staking capabilities, futures trading and more. Kraken offers a variable maker-taker fee schedule, which often results in lower fees compared to flat-rate brokerages.
In addition to a wide range of crypto choices, Kraken offers customizable ordering platforms and mobile apps that you can use to fully refine your trading experience. There’s plenty to love about trading on Kraken. It appeals to both seasoned professionals and new investors looking to learn more about the market.
Pros
•Wide selection of supported tradable assets
•Straightforward platform is easy for new users to master
•24/7 customer service available via live chat
Cons
•Maker-taker fee schedule may confuse some users
•No option for phone or email customer service
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Fee: Compared with other major exchanges, KuCoin offers relatively low trading fees. Users can expect to pay between -0.005% and 0.10% per trade, and a 20% discount on trading fees is offered when using its token, KuCoin Token (KCS).
Why we choise it:
Ability to earn interest on crypto: KuCoin users can earn interest on their crypto by staking certain assets or lending them to others and charging interest. Earning rewards on your crypto can help you build a larger portfolio.
Wide selection of cryptocurrencies: Unlike some exchanges that offer a few dozen cryptocurrencies available for trade, KuCoin offers over 850.
Pros
•A wide range of services, trade pairs, and order types
•Low trading and withdrawal fees
•Very easy to use
Cons
•Only for professional crypto-traders
•Has suffered a couple of high-profile hacks
•Takes a long time to verify an account.
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