When deciding which is the best cryptocurrency exchange, you need to consider your immediate or even the long-term preferences. Simply put, do you want to purchase cryptocurrency with fiat money, exchange BTC for ETH or some other altcoin, for example, or are you looking to get into active margin trading?
Furthermore, are you a beginning trader or a Forex veteran? In addition, it’s smart to check the market cap of each of your chosen exchanges. That will be the best indicator of the liquidity and trading volume since the bulk of the exchange platforms are relatively new.
Thus, the best cryptocurrency exchange is the one that serves your needs while at the same time provides the added level of security and high volume of daily trades. In this article, we are picking the top of the crop to fit your every need.
Best cryptocurrency exchange if you want to buy/sell cryptocurrency with fiat money
We have three options because only one is the exchange, meaning that you cannot trade on margin, while the other two allow margin trading, yet differ in a few critical elements.
COINBASE
Arguably, Coinbase is at the very top of the list of the most popular cryptocurrency exchanges. The exchange currently allows you to buy Bitcoin, Ether, and Litecoin for dollars, pounds and euros.
It does, however, take some time to open an account, but the entire process adds to the overall security of your assets.
Coinbase supports credit/debit cards although it’s wiser to set the bank account to reduce fees.
For now, you can trade Bitcoin, Ethereum, and Litecoin. They do not provide margin trading at this moment.
That said, do bear in mind that
- Coinbase is a regulated US-based trading company
- It has slightly higher fees than more advanced exchanges.
On the bright side, Coinbase is one of the few cryptocurrency exchanges to which you can move money from Coinpot (commonly used deposit service by the faucet sites) without paying fees.
CEX
While Bittrex is, by far, the most popular cryptocurrency exchange at this moment, enabling the exchange of over 200 cryptocurrencies, we believe that CEX is the better option, especially if you:
- Are new to trading cryptocurrencies
- Want to buy crypto for some other currency besides USD an EUR such as British pounds, Russian rubles or cryptocurrencies like Ether, Zcash, and Dash
- Are looking to trade several pairs on margin
CEX probably has the best stop-loss instruments and the fastest order execution time because they are using fill-or-kill orders.
KRAKEN
Kraken is quickly gaining ground, covering ever more markets. The exchange is extremely popular in Europe and North America because the verification process is simple and they provide SEPA transfers which really speed up the process and cut fees.
On top of everything, Kraken has the lowest trading, depositing, and withdrawing rates on the market today.
And while the website is not as visually attractive or beginner friendly as we’d want, the guys running the exchange are very knowledgeable about security and cryptography.
Ranked 5th globally, Kraken also supports margin trading and offers a large list of altcoins beside the major cryptocurrencies such as Bitcoin or Ether.
TIP: One caveat though: Execution of the order may, in some cases, fail entirely or be a subject to a major lag, taking more than 30 seconds to execute. In a highly volatile market such as the cryptocurrency one, a professional, high-stake, intraday margin trader may suffer a severe loss.
Best cryptocurrency exchange to meet with the buyer/seller in person
LOCALBITCOINS
How about meeting with the person in a local café and exchanging cryptocurrency at the site?
Many people are unaware that you can sit face to face and make the exchange, even using PayPal as the payment option. It’s a neat way to actually chat with the buyer/seller and exchange more than just cryptocurrency.
LocalBitcoins are available and reputed worldwide, not just because you can see the buyer, but also because they offer escrow and dispute services. The latter may come in very handy since there is no identity verification process.
Best cryptocurrency exchange for cryptocurrencies only
POLONIEX
Poloniex is the 2nd most popular cryptocurrency exchange after Bittrex with 30 million visits in May 2017. You can make money on exchange and margin trading but also by lending your free crypto-assets to other traders, capitalizing on the rate. It has the user-friendliest interface for both desktop and mobile which makes Poloniex very attractive to beginners. However,you can’t buy crypto for fiat money.
Conclusion
As you could see, it’s not that easy to pick one that can be called the best cryptocurrency exchange since there are many variables and personal preferences to consider. However, we believe that we managed to filter out the very best to fit every possible need. If you want to learn more about crypocurrecny, check out Cryptocurrency Institute.