Cryptocurrency is a digital asset based on blockchain technology. The asset is a medium of exchanging goods and services. Buyers and sellers use cryptocurrency to facilitate the exchange of other assets, as well as speculative investments. Cryptography, a technique to secure communication, is used to secure transactions as well as control creation of more units of the asset. In simple terms, cryptocurrency is digital money.
The growth of cryptocurrency started almost a decade ago with the creation of Bitcoin. Consequently, Bitcoin became the first decentralized cryptocurrency. Since then, thousands cryptocurrencies have been developed. All the other cryptocurrencies, apart from Bitcoin, are popularly known as altcoins. Altcoins are similar to Bitcoin, but have key differences depending on the coin. Examples include Monero, Litecoin, Ethereum (ETH), Dash (DASH), Stellar Lumens (XLM), Zcash (ZEC), and Ripple (XRP) among others. Ethereum, Litecoin, Ripple, IOTA, and Stellar Lumens are some of the most used type of altcoins in the world.
Cryptocurrencies are free from bank charges, at the same time are much stable against government’s inflationary policies compared to fiat money. However, exchanges and transactions typically charge fees in cryptocurrency. Benefits associated with cryptocurrencies are quite immense. For this reason people are gradually embracing the use of cryptocurrency as a medium of exchange and investment. Cryptocurrencies support many transactions and trade exchanges in the world.
Cryptocurrency exchanges are online platforms for buying, selling or exchanging cryptocurrency for other digital currencies or fiat money. The exchanges are open for companies, institutions, market makers, speculators, and individuals. There are specialized features and trading tools within the online platform depending on the nature of the transaction. For professional traders, account opening and verification of their identities is vital. However, persons who would wish to transact occasional, on time trades, a different feature is also available.
If you sign up for Coinbase with this link, you will get $30 in free Bitcoin once you buy $20 or more worth of Bitcoin using your Coinbase account. (Note: Wirefly earns on referrals)
Coinbase is one of the most well-known cryptocurrency exchanges in the world today. Coinbase offers a clean and user-friendly interface, making it easy for beginners to buy, sell, and manage cryptocurrencies like Bitcoin, Ethereum, and many others.
Founded in the United States, Coinbase is regulated and trusted by millions of users globally. It supports a variety of cryptocurrencies and provides secure storage solutions including insured custodial wallets, appealing to both retail investors and institutional clients.
Coinbase went public via a direct listing on NASDAQ, marking a significant milestone in cryptocurrency adoption. The platform continuously expands its list of supported coins and features to meet the growing demands of its user base.
If you sign up for Coinbase with this link, you will get $30 in free Bitcoin once you buy $20 or more worth of Bitcoin using your Coinbase account. (Note: Wirefly earns on referrals)
Unlike many exchanges, Coinbase emphasizes regulatory compliance and transparency, which makes it a popular choice for users seeking a safer and more reliable trading environment. It charges a variable fee based on the transaction amount and payment method, but its fees are generally higher than some other exchanges due to its focus on security and compliance.
Signing up on Coinbase requires identity verification to comply with KYC regulations, ensuring a secure and trustworthy experience. Users can trade cryptocurrencies on the web platform or through mobile apps available for iOS and Android.
Coinbase also offers additional services like educational content, staking options, and institutional-grade trading tools to enhance the user experience and support wider crypto adoption.
Related: Best Cryptocurrency iPhone Apps
CEX.IO is a well-established cryptocurrency exchange known for its easy-to-use platform and broad range of supported digital assets. CEX.IO caters to both beginners and experienced traders by offering a straightforward interface alongside advanced trading features like margin trading and limit orders.
Founded in the UK, CEX.IO complies with regulatory requirements and serves users worldwide, providing a secure and reliable environment for buying, selling, and trading cryptocurrencies such as Bitcoin, Ethereum, and more.
The exchange has grown steadily since its launch, adding more cryptocurrencies and trading pairs to meet user demand. CEX.IO supports multiple payment options, including bank transfers, credit cards, and e-wallets, making deposits and withdrawals convenient.
CEX.IO operates as a centralized exchange with a strong emphasis on security and customer support. The platform charges competitive trading fees, which vary depending on trading volume and account tier, encouraging active traders with discounts.
Registration on CEX.IO involves a straightforward KYC process to ensure compliance and security. Users can access the platform through a web interface or mobile apps, enabling trading anytime and anywhere.
Additional features on CEX.IO include staking services, an affiliate program, and educational resources, all designed to enhance user engagement and support cryptocurrency adoption globally.
The exchange has also been in operation since 2014. It has its headquarters in Hong Kong, China. The platform has a list of 13 cryptocurrencies which its users can trade. It also allows users to trade using fiat currency. The Bitfinex website has a user interface equipped with trading features.
Registration and verification on Bitfinex are quite rigorous. Moreover, funds withdrawal requires authentication. One needs to send valid identification documents to the Bitfinex team. Typically, it could take a new customer up to 3 weeks to be allowed to trade.
Users are also able to trade cryptocurrency on the Bitfinex platform from anywhere at any time. Trading on Bitfinex is possible on the move through a mobile app for iOS and Android.
The seven listed cryptocurrency exchanges are accessible by users across the globe. Other cryptocurrency exchanges that are as good enough and list unique altcoins include Bitmex, Kucoin, YoBit, and CoinExchange. However, the four do not quite assure the safety of customer’s funds. Storing coins is recommended for a short term for trading purposes only. Some of them are prone to large-scale scams, hacks, and fraud. Instead, proceeds from these accounts should be transferred to wallets such as Ledger Nano or Exodus.
Changelly is a subsidiary of the MinerGate mining pool. The mining pool is famous for its consistently high products in the digital money sector. The Changelly platform enables its users to own various cryptocurrencies easily.
The platform does not require a rigorous registration and verification process. Trading is straightforward and fast. The user just logs in with an email address, and trading starts instantly. Some users use suspicious emails and are still allowed to trade.
The website has a list of more than 35 cryptocurrencies tradable by users. The site also has a list of fiat pairs such as EUR/USD which can be traded by their customers. Changelly is also ranked as one of the best and easiest to use cryptocurrency exchanges in the world.
Changelly utilizes robots to execute orders. Traders connect in real time to other cryptocurrency exchanges. The robots find its traders the best price in the market and fast. A typical cryptocurrency transaction takes between 5 to 30 minutes.
Traders have to part with 0.5% on each trade as commission for Changelly. The commission is reasonable considering the volatility and risk that Changelly bears on behalf of its clients. In addition to the commission, Changelly users also have to pay a miner’s fee. The fee is deducted directly from the customers’ crypto account balance.
Changelly account users deposit funds through VISA, Master Card or any other payment method supported by the exchange. Customers also require a digital wallet to store earnings from trading.
Related: Best Android Cryptocurrency Apps
Erik Voorhees, one of the earliest Bitcoin investors, established ShapeShift in August 2014. Unlike other exchanges, ShapeShift allows users to deposit funds in cryptocurrency only.
The platform does not have a lengthy registration or verification process. To trade using this platform, users do not even need to log in with their email address.
In order to transact on ShapeShift, one only needs to possess any of the various cryptocurrencies tradable on the exchange. Users also need a digital wallet address to receive earnings from their cryptocurrency trades.
The ShapeShift platform has a list of over 40 cryptocurrencies for its users to trade. In addition, the exchange has a perfect user interface accompanied by trading features.
Another significant cryptocurrency exchange globally regarding traded volume is Poloniex. It was launched by Tristan D’Agosta in January 2014.
Poloniex has its headquarters in the United States. The exchange offers over 100 cryptocurrencies for its users to trade.
The platform supports free markets for both Ethereum and Bitcoins.
Poloniex is also a cryptocurrency only exchange. However, an initial deposit of USDT (Tether dollars) would enable a user to start trading. It is also equipped with features that improve user experience. Commission fees depend on whether the user is a market maker or a taker.
Cryptocurrency exchanges vary depending on the participants and the nature of the transaction. It’s also worth noting that all the exchanges are fully digital and unregulated.
One type of exchange is the Trading Platforms. They are websites that facilitate trading between buyers and sellers. The websites benefit by charging a commission from the trades.
Direct Trading, is another type of exchange. The platforms facilitate trading between buyers and sellers located in different countries. On a direct trading exchange, each participant is allowed to set prices for their cryptocurrencies as opposed to having a predetermined price.
Another type of exchange is known as Brokers. Cryptocurrency brokers operate just as foreign exchange dealers. The platforms have predetermined exchange rates that facilitate user transactions. Anyone can access the cryptocurrencies.
It is vital to consider some factors before making a transaction on a particular exchange. One of these factors is the reputation of the exchange. Getting feedback from review websites and individual user experience is essential. Query websites on cryptocurrency such as BitcoinTalk or Reddit would help to identify a reputable exchange.
Another factor to consider is the fees charged by the exchange. Everyone would like a bargain. All websites have a fee section where potential customers can check out their rates. Before signing up, it’s important to understand the fee structure and standards of that exchange.
The payment options available on the exchange are also vital to consider. Only sign up for an exchange where the methods of payment are convenient and secure. An exchange with few payment methods is not advisable.
Some exchanges allow customer anonymity. Choose an exchange that has a feature to verify one's identity. Verification may take up to a couple of days but will protect you from losing your funds to con artists.
Related: How to buy Bitcoin on iPhone
Consider geographical restrictions on the exchanges. It is important to ensure that the exchange one decides to sign up for allows access to customers at your location.
Lastly, consider the exchange rate the website offers. Exchanges have their predetermined exchange rate and may differ by up to 10 percent.
A good exchange is one that has a good reputation, a variety of payment options, identification feature and saves one’s money.
