Knowing what the most popular Crypto exchanges are is essential to investing in DeFi. Understanding cryptocurrencies can be difficult on its own, and if you’re new to crypto trading, finding the right platform to buy and sell popular assets such as Bitcoin or Ethereum can be even more difficult. When selecting a cryptocurrency exchange, consider factors such as supported assets, fees, payment methods, and security. When compiling this list of the best cryptocurrency exchanges, we took these factors into account.
If you want to buy cryptocurrency, you must first open an account with a cryptocurrency exchange. There are approximately 500 examples to choose from, and Alteblock combed through the top players to identify the most popular Crypto Exchanges for both new and experienced investors.
What is a Crypto Exchange?
A cryptocurrency exchange is a marketplace for buying and selling cryptocurrencies. Cryptocurrency exchanges operate similarly to other trading platforms you may be familiar with. They give you accounts where you can create various order types to buy, sell, and speculate in the cryptocurrency market.
Some cryptocurrency exchanges offer advanced trading features such as margin accounts and futures trading, though these are less common for users in the United States. Others include features such as crypto staking or crypto loans, which allow you to earn interest on your cryptocurrency holdings.
Types of Crypto Exchanges
What are the most popular Crypto Exchanges? Well, before we get into that there are two categories of crypto exchanges:
One organization manages centralized cryptocurrency exchanges (CEX). Centralized exchanges make it simple to begin trading cryptocurrency by allowing users to convert fiat currency, such as dollars, directly into crypto. The vast majority of cryptocurrency trading occurs on centralized exchanges.
Some cryptocurrency enthusiasts are opposed to centralized exchanges because they contradict cryptocurrency’s decentralized ethos. Worse, according to some cryptocurrency users, the company or organization may require users to follow Know Your Customer (KYC) rules. To combat money laundering and fraud, these require each user to reveal their identity, much like when applying for a bank account.
LEARN MORE: KYC and Cryptocurrency Exchanges
Another issue with centralized exchanges is hacking. With a CEX, the exchange holds the cryptocurrency traded on its platform—at least temporarily, while trades are processed—increasing the risk of hackers stealing assets.
To address this risk, centralized cryptocurrency exchanges have increased security in recent years. Among other things, they now store the majority of customer assets offline and purchase insurance policies to cover crypto losses in the event of a hack.
If you prefer the convenience of a centralized exchange, you can mitigate risk by transferring cryptocurrency to a separate, off-exchange hot or cold wallet.
LEARN MORE: How Centralized Exchange Works
Decentralized crypto exchanges (DEX) distribute responsibility for crypto trade facilitation and verification. Anyone who wants to join a DEX network can certify transactions, similar to how cryptocurrency blockchains operate. This may help to increase accountability and transparency while also ensuring that an exchange can continue to operate regardless of the state of the company that created it.
The problem is that decentralized exchanges are much less user-friendly, both in terms of interface and currency conversion. Users cannot always deposit dollars and exchange them for cryptocurrency on decentralized exchanges, for example. This means you must either already own cryptocurrency or use a centralized exchange to obtain cryptocurrency for use on a DEX.
You’ll also most likely be doing direct peer-to-peer trades. This means it may take longer to find someone interested in purchasing what you’re selling, and if liquidity is low, you may have to accept price concessions to buy or sell low-volume crypto quickly.
LEARN MORE: Why use Decentralized Exchange
How to Choose a Crypto Exchange
What are the most popular Crypto Exchanges is essential to choosing a cryptocurrency exchange, and there are several factors to consider when selecting a crypto exchange that meets your needs. The most important factors to consider are:
As cryptocurrency has grown in popularity and value, it has become a major target for hackers. Leading exchanges such as Binance and KuCoin have been hacked, resulting in losses of tens of millions of dollars. While exchanges frequently compensate those whose coins have been stolen, no one wants to be in that situation in the first place.
LEARN MORE: Biggest Cryptocurrency Hacks of all Time
Spreading your cryptocurrency purchases across multiple exchanges can help you reduce your risk. Make it a habit to transfer your crypto holdings from an exchange’s default wallet to your own secure cold wallet. These are storage options that are not connected to the internet, making them nearly impossible to hack—though you must carefully record your passcode or you may lose access to your cryptocurrency forever.
LEARN MORE: Crypto Cold Storage Explained
Consider the cryptocurrencies available on a specific exchange carefully. If you want to buy cryptocurrencies other than Bitcoin or Ethereum, you should check the list of supported assets before choosing an exchange. Some only accept a few cryptocurrencies, while others accept hundreds.
If no trades are taking place, the availability of coins is insufficient. You’ll want to make sure that your target coins have enough trading volume to ensure liquidity, so you can easily convert them to fiat currency.
A small market could cost you sales. Slippage occurs when there are few volumes and you place an order. You might end up paying more for something or selling it for less than you wanted.
If you’re an experienced crypto trader, make sure your preferred exchange provides the trading types and margins you require, such as limit orders, which prevent slippage by setting a hard price.
High fees can reduce your investment returns, which is why you should research crypto exchange fees before opening an account. Trading and withdrawal fees are typically charged by cryptocurrency exchanges, but other fees may apply.
Selecting an exchange with good customer service cannot be overemphasized. You may have questions or require assistance if you are new to cryptocurrency or investing. In that case, selecting an exchange with excellent customer service is probably the best option.
If you’re new to cryptocurrency, look for a simple platform with a wealth of educational resources to help you navigate this complex, rapidly evolving market.
Don’t assume that because you can access its website, an exchange is available in your country or even state. Many state and federal governments are still determining how they want to treat cryptocurrencies legally and fiscally. So, check to see if the exchange you’ve chosen is available in your jurisdiction.
It’s a good idea to research the reputation of a crypto exchange before signing up for an account. Read customer reviews, look into the history of the exchange, and look for any recent news stories that may provide some useful insight.
What are the Best Exchanges for Cryptocurrency?
Questions like What are the Best Exchanges for Cryptocurrency are asked on a daily basis for newbies looking to get into investing in cryptocurrencies. Let’s break that down for you.
What are the most popular Crypto Exchanges? Well, Kraken is one of the most reputable cryptocurrency exchanges in the world, having been founded in 2011 and is available in the majority of the world. On its professional-grade trading platform, Kraken Pro, the San Francisco-based exchange allows investors to buy, sell, and store over 185 cryptocurrencies while charging low fees.
In the early days of the crypto market, this feature-rich crypto exchange established itself as the go-to platform for professional investors, and it has maintained its reputation as a dependable and professional trading venue.
Kraken has two platforms: its main trading platform and Kraken Pro, its professional platform. The Pro dashboard on the exchange offers highly customizable chart analysis tools, detailed insight into order books, 13 order types, and high-speed execution. In addition to spot trading, Kraken users can trade cryptocurrency on margin and execute crypto derivatives trading strategies.
While instant buy fees on Kraken’s main platform can reach 1.5%, fees on Kraken Pro are extremely low. Kraken Pro has a tiered fee structure, which allows high-volume traders to save money on trading fees. Kraken Pro’s maker fees begin at 0.16% for traders with 30-day volumes of less than $50,000, and taker fees begin at 0.26%. Maker fees, on the other hand, can be as low as 0% and taker fees as low as 0.10% (for traders with 30-day rolling volumes of more than $10 million).
Furthermore, Kraken’s funding options are limited, with wire transfers being the primary payment method for Kraken users. ACH transactions are not accepted.
LEARN MORE: Kraken Review
Gemini, founded in 2014 by Tyler and Cameron Winklevoss, stands out for emphasizing security and compliance. The New York-based exchange offers hot wallet insurance to ensure that user funds are protected in the event of a security breach. It also requires users to go through an identity verification process to reduce the possibility of fraud.
Gemini also encourages users to use two-factor authentication to secure their accounts and gives them the option to review and approve the devices they use to access their trading accounts. Gemini also has SOC 2-certified security, which means that third-party auditors have verified the company’s security and compliance frameworks.
Gemini, designed for advanced traders, offers a professional-grade trading dashboard and supports over 100 digital currencies and tokens. Gemini also provides a cryptocurrency reward card and the ability to pay for goods and services with cryptocurrency.
Fee structures differ between Gemini’s main platform and the active trader platform. The primary platform charges fixed fees for small trades and a very high 1.49% fee for trades over $200. The maker-taker fees on the active trader platform start at and decrease as your volume increases. These are also on the expensive side. However, the relatively high fee may be a small price to pay for Gemini’s extremely strong security.
LEARN MORE: Gemini Review
Since its inception in 2016, Crypto.com has established itself as one of the world’s leading cryptocurrency exchanges. It is now available in 90 countries and accepts over 250 cryptocurrencies.
In addition to a large number of supported assets, Crypto.com offers a vast digital asset ecosystem that includes its own blockchain, Crypto.org Chain; a native token called CRO; a crypto visa card; yield-generating crypto products, and more.
The Crypto.com mobile app, on the other hand, stands out. While many crypto exchange mobile apps offer a watered-down version of the exchange’s web-based platform, Crypto.com placed a strong emphasis on developing an app that offers a diverse range of products and features, allowing users to benefit from the exchange’s ecosystem while on the go. Users of the mobile app can buy, sell, trade, and earn interest on their cryptocurrency, as well as pay with it.
While Crypto.com has a large number of products and features, customer service is lacking. Furthermore, unless you trade in larger volumes, you will be charged trading fees of up to 0.075%. Because of its wide range of products and features, as well as its large number of supported assets, Crypto.com is arguably the best option for an excellent mobile crypto trading experience.
LEARN MORE: Crypto.com Review
Coinbase was founded in 2012 as a Bitcoin sending and receiving platform. The company has grown to support dozens of distinct cryptocurrencies, which should satisfy the majority of investors looking to enter the crypto space.
The platform is straightforward and simple to use, with support for basic transactions, digital wallets, and PayPal withdrawals. With over 108 million users from over 100 countries, Coinbase is the only publicly traded cryptocurrency exchange in the United States.
Coinbase allows users to buy, sell, and trade cryptocurrencies. Payment methods include ACH transfers from bank accounts, debit cards, money wires, and PayPal. ACH transfers are the most cost-effective option because you can deposit funds from a bank account without incurring any additional fees.
Coinbase has online assets covered by crime insurance. Cash balances in Coinbase accounts, like assets held in a bank’s savings or checking account, are insured by the FDIC up to a maximum of $250,000 per customer.
LEARN MORE: Coinbase Review
Binance Exchange was founded in 2017 by software developer Changpeng Zhao and was originally based in China. Binance’s headquarters are now in Japan as a result of the Chinese government’s ban on cryptocurrency trading in September 2017.
Binance is currently the largest cryptocurrency exchange in terms of trading volume, and it provides access to hundreds of cryptocurrencies to users all over the world. Although experienced traders may appreciate the variety offered by Binance, new users may be perplexed by its numerous features.
Binance charges fees for trades, purchases, and sales, as well as some withdrawals and deposits. Every transaction between the user and Binance is recorded in the order book, and Binance exchange fees are applied.
Binance claims that security is its top priority when it comes to protecting users’ assets, with features such as cold storage and FDIC insurance, to name a few. It also has its own insurance fund, the Secure Asset Fund for Users (SAFU Funds), which holds 10% of all trading fees in a secure fund designed to cover any losses caused by hacking.
LEARN MORE: Binance Review
What are the most popular Crypto Exchanges: Bottom line
Knowing what are the most popular Crypto Exchanges is critical for your needs if you want to get started with cryptocurrency trading or investing. There is a good option for you whether you want a large number of digital assets to trade, the lowest possible fees, or the best mobile trading experience.