Bitcoin exchange platforms are where you purchase Bitcoin and other digital currencies such as Ethereum, Litecoin, Dash and smaller Altcoins.
This US-based exchange platform is one of the biggest exchange platforms in the world, it is backed by millions of global customers and investors. This platform was founded in 2012 and it supports more than 30 countries in the world. A number of popular cryptocurrencies such as bitcoin, ethereum, and litecoin can be exchanged on this platform. The user interface of the platform makes it easy for users to buy, sell and trade cryptocurrency.
Coinbase created Global Digital Asset Exchange (GDAX) in 2014 for technical traders, and it operates currently in the US, Canada, UK, Australia, Europe, and Singapore. Some fiat currencies are supported by coinbase such as US Dollars, Euros, Canadian Dollars, Singapore Dollars Australian Dollars and British pounds. There are no fees charged for deposits and withdrawals, but a 1% flat fee is charged per purchase. Coinbase also boasts of being a very secure platform and one major advantage of this exchange platform is the fact that the currency stored on this platform is covered by insurance in case of online fraud or theft.
Gemini is a US-based licensed bitcoin and ether exchange platform which was founded by Tyler and Cameron Winklevoss. Gemini supports only one fiat currency which is the US dollars; this exchange is available only in 42 states in the US, the UK, South Korea, Singapore and Hong Kong. Only Bitcoin and Ethereum can be traded on this platform. There are no fees added to deposits and withdrawals, a charge of 0.25% is added for every trade for both sellers and buyers alike. Gemini is regulated by the Department of financial services in New York as it is a company that belongs to the New York state limited liability trust. A major advantage of Gemini is that ACH transfers are accepted, this means that money will be easily accessible for trading to occur.
Kraken was founded in 2011, and it is a platform that is loaded with a large number of features which aids fast deposits and withdrawals. Cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Litecoin, Monero, Namecoin, Ven, Stellar and Ripple can be exchanged on this platform. The fiat currencies that are supported by this platform are the Euro, South Korean Won, Japanese Yen, Canadian Dollars, British Pounds and US Dollar. Most experienced traders make use of Kraken as a result of its numerous trading tools. The fees that are charged is dependent on the pair of currency being exchanged and the trading volume. Charges are added for withdrawals and deposits higher than the trading fee. A major disadvantage of this exchange platform is the limited payment options.
Changelly is an exchange platform that supports a large number of cryptocurrencies such as Bitcoin, Ethereum, Monero, Bytecoin, and Dash, etc. This Prague based exchange platform was founded in 2016, and it generated from MinerGate, a very popular mining platform. This platform supports fiat currency like the US Dollars and Euros. A charge of 0.5% is taken per transaction. With Changelly, no personal information is needed to exchange on the platform.
Coinmama is an Israeli based bitcoin broker platform that allows the use of credit card to buy Ether or Bitcoin. Coinmama is available worldwide, but some features are restricted to users in specific countries. Users can also make use of MoneyGram to purchase cryptocurrencies. Coinmama charges up to 6% per transactions with credit or debit cards. Different payment options are available on Coinmama and the transaction time is relatively fast.
Bitstamp is a licensed Slovenia based Bitcoin exchange platform which was founded in 2011 by Nejc Kodric and Damian Merlak. The security measures such as two-step authentication, wallet ‘multisig’ technology are used on this platform. The fees charged per transaction will be up to 0.25% and 8% for transactions using credit cards. Bitstamp has a good reputation in the cryptocurrency world as a secure and stable platform. This platform also boasts of cold storage which is fully insured. The user interface of Bitstamp relatively easy to use and it is multilingual. Users can begin trading as soon as they open their accounts. This exchange platform is available worldwide with no restricted features.
Poloniex which is one of the top exchange platforms in the world was founded in 2014. There are some advanced features and tools on this platform. This platform charges market makers up to 0.15% and takers up to 0.25% on their transactions with regards to the amount transacted. There is, however, no fee charged for withdrawals. Poloniex has a distinguishable feature called “Chat Box” that allows users get help if need be. This exchange platform boasts of high volume trading, and it does not support any fiat currency.
This exchange platform allows users to trade cryptocurrency for fiat currency and vice versa. Users can make use of credit card or bank transfer to purchase bitcoin on this bitcoin exchange platform. Cex.io supports all countries, but there are features that are restricted to certain countries such as credit card purchase, bank transfer, etc. there are also certain states in the US that Cex.io does not support. Brokerage services are also offered on this platform for users looking for easy ways to purchase bitcoin. This platform is very secure and the cryptocurrencies are stored in cold storage, it also has quite a number of payment options to choose from although a credit card is the most used option.
Bitfinex is an exchange platform that was founded in 2013 and became popular as a result of its high trading volume of USD. It has a number of tools such as short selling, margin trading and liquidity swaps that aid in the trading of cryptocurrency. Cryptocurrency such as Bitcoin, Darkcoin, and Litecoin are supported by this platform. The security of this platform is topnotch, 99.5% of the assets are stored in cold storage while 0.5% is available in wallets. The database is backed up and coded every day for security purposes. There is no need for verification with Bitfinex but verification is needed when fiat currency is used. 0.1% is charged per transaction for makers and 0.2% for takers.
Shapeshift supports a large number of cryptocurrencies such as Bitcoin, Ethereum, Zcash, Dogecoin, Dash, Monero and a host of others. This platform does not require any signing up process before trades can be made. This exchange platform does not support any fiat currency, this means that there is no credit or debit card payment options available on this platform. On this platform, the only exchange allowed is between Bitcoin and other cryptocurrencies that are supported. The payment options and tools on this bitcoin exchange platform are very limited. The transactions carried out on this platform are relatively fast. The user interface of this exchange platform is very easy to understand, this makes it very beginner friendly.
Things to Consider when Choosing an Exchange
These exchange platforms usually act as middlemen for traders in the cryptocurrency market. Mt. Gox used to be the only bitcoin exchange platform that dominated the cryptocurrency market, but most new exchanges claim to have learned from Mt.Gox’s mistakes and boast of offering better security. To be able to trade bitcoin on exchanges, you have to open an account and go through the verification process. The following are the different types of bitcoin exchange platforms; each has characteristics unique to them alone.
• There is the “Direct trading platform” where people from various countries can exchange currency directly, this is a person to person trading platform where there is no fixed market price.
• The second type of exchange platform is a marketplace where sellers and buyers connect to trade; this platform requires a small fee for every transaction.
• The “Broker platform” is a website where a broker sets a price for cryptocurrency and anyone can visit to buy.
Features To Look For Before Selecting a Bitcoin Exchange Platform
Before you select a bitcoin exchange platform for your transactions, you should take note of the following important things to avoid any drawback in the future.
• Supported Cryptocurrencies
There are more than 3000 cryptocurrencies in the world and more are coming up each day. It is important that you pick an exchange platform that is supported by the cryptocurrency that you want to trade in. it is also important that you pick an exchange platform that is supported by top cryptocurrencies.
• The Reputation of the Exchange Platform
When you want to select an exchange platform, make use of reviews gotten from websites and users so you can find out the reputation of the platform before you take the plunge. There are also other forums such as Reddit and BitcoinTalk where you can ask questions about exchange platforms and get reasonable answers. A good reputation for exchange platforms will be in terms of the volume of trading the platform is doing. If the bitcoin exchange platform has high liquidity, you should choose it. Most platforms have good reputations in terms of security and safety of the platform, it is essential that you have all the information to make the best decision.
• Geographical and Language Barriers
It is important that you check the country hosting the Bitcoin exchange as there can be features that can only be accessed from the specific countries. There are also some countries that have fewer regulations than others, which is why it is essential to conduct extensive research on these exchange platforms before you use. It is preferable to join a Bitcoin exchange platform that speaks your language and gives access to all features regardless of the country you reside in.
• Fees Charged
All exchange platforms charge fees per transaction and these fees are most times available on their websites. You should understand all the various fees that exchange platforms charge and find the one that offers the best services with relatively lower fees, this will help you raise profit. Some platforms offer no charges on withdrawal and deposit while others do, it is important that you pick the platform that is favorable to you.
• Security Measures
When you are searching for exchange platforms, look for the ones that have topnotch security measures put in place. Security measures such as two-factor authentication, encoded emails or monitoring of wallets are ideal. This way, you would be sure that the risk of theft will be decreased. Most exchange platforms store their cryptocurrencies in a cold storage to keep it safe, there are others that also offer full insurance in case of any hacking incident.
• Methods of Payment
It is very convenient to pick exchange platforms that do not have limited payment options. For this reason, you should look for bitcoin exchange platforms that have an abundance of payment options to reduce trading risks. Exchange platforms that have limited payment options restrict users to options that will be considerably slow or unresponsive sometimes.
• Platform Exchange Rate
Most exchange platforms have varying exchange rates. You should look for exchange platforms that have considerable exchange rate so you can maximize profit. Most of the time, the exchange rates fluctuate, it is very important that you carry out extensive research so you can select the exchange platform that will be beneficial to you.
Making use of the outlined features as a guide, the following are the 10 best Bitcoin exchange platforms.
There are quite some bitcoin exchange platforms in the world. This, therefore, means that to find an exchange platform that will be favorable to your needs, you have to take note of the favorable features outlined above. The top bitcoin exchanges are classified with regards to these features as well as cryptocurrency industry popularity.