Welcome to our guide to the best bitcoin exchange of 2018. This list is essential if you want to earn serious money from Bitcoins and other cryptocurrencies.
But what is a Bitcoin exchange and how can you be sure that you are signing up for the best Bitcoin exchange? Think of Bitcoin exchanges as digital market places for people to buy and sell Bitcoins using different currencies. The Bitcoin can be redeemed for fiat money (legal tender) or for other alternative cryptocurrencies such as Ethereum. The exchange serves as an intermediary for traders of the cryptocurrency.
Buying Bitcoin is the first step in trading. Just like trading in a stock, Bitcoin exchanges costs for billing transactions, ranging from 0 to 1%. To trade Bitcoin on a stock exchange, the user must have an account and go through a series of steps to be verified. Remember that Bitcoin and alternative cryptocurrencies are a fully digital currency and that there are no physical Bitcoins.
However, before users throw in their feet, they have to be aware of what to look for when choosing a Bitcoin exchange for their cryptocurrency transactions. This is analogous to the problems and potential pitfalls in making a choice where you can do your banking business, or open an online brokerage account. Also keep in mind that, unlike banks and stock trading, Bitcoin trading is largely unregulated by most countries, although this is changing as its popularity increases.
A good place to start is to look at the virtual coins that are supported by an exchange. With more than 4,000 cryptocurrencies, and more and more extra is added, it is crucial to find out in which currency you want to trade, and then adjust the exchange that acts in it. For example, Ethereum mines has become more popular recently, but not all bitcoin exchanges support this alternative cryptocurrency.
Then view the country where the Bitcoin exchange takes place. Some are in less regulated countries and there may be additional problems if something goes wrong. This may include time differences, long-term international costs and language barriers. In general it is better to find an exchange that speaks your language.
Also pay close attention to the levied fees. Although all these exchanges charge transaction costs – after all, they are companies that want to make a profit – as a user, it is of course best to find one with the lowest costs to maximize your own profit.
Also look for a secure trading platform and Bitcoin exchange with robust security measures. After all, you would not use a bank that did not have a safe and had its money on the counter …
Desired security features include two-factor authentication, SMS or e-mail alerts, encrypted e-mails, and wallet monitoring. A smartphone app can also be very useful in terms of accessing and controlling funds – but badly implemented software can also pose a security risk.
Finally, look for a trade fair that is well-marketed – in other words, one with a high number of trading partners and high liquidity.
Now that we know the functions we need to look for in the best Bitcoin exchanges, we continue to select our specific favorites.
The biggest exchange there is
Broad currency support
Insurance protection available
This is a US-based exchange that was established in 2012 and it supports more than 32 countries. Coinbase exchanges Bitcoin and the alternative cryptocurrencies of Bitcoin Cash, Ethereum and Litecoin, and it is the largest of the stock exchanges and claims $ 150 billion (£ 112 billion) in converted currencies. In 2014, Coinbase set up GDAX, the Global Digital Asset Exchange developed for professionals with large trading volumes. Since June 29, GDAX is now Coinbase Pro with some improvements, and a visit to GDAX site will refer you to Coinbase Pro.
The company offers a mobile wallet, offline storage and insurance protection for currencies stored on its servers. Coinbase supports various fiat currencies: British pounds, US dollars, Euros, Canadian dollars, Australian dollars and Singapore dollars.
The Coinbase exchange has a fixed fee of 1% for each purchase, while deposits and withdrawals of cryptocurrency are made at no cost. A streamlined user interface ideal for beginning traders – and fast transactions – makes Coinbase a popular exchange with traders.
2. Gemini Exchange
Regulated exchange of the Winklevoss twins
Accepts ACH transfers
Interface is not very beginner friendly
Gemini Exchange is another US-based outfit, founded by the Winklevoss twins – the two that Mark Zuckerberg sued for social networking, and received $ 65 million (£ 48 million), which they used as venture capitalists. This fair is based in New York and is available in 49 US states, as well as in Puerto Rico, Canada, the UK, Singapore, South Korea and Hong Kong.
Gemini's only supported fiat currency is US dollars and is traded by Bitcoin, Ethereum and Zcash. Gemini does not charge any deposit or withdrawal fees and has a fee of 1% (depending on your trade volume of 30 days – the costs will fall as your trade volume increases) for transactions, both for the buyer and the seller.
Another advantage of Gemini is that it is a state-owned limited liability company in New York and is regulated by the New York Financial Services Department. The proximity of the Wall Street financial markets makes it easy for the company to bridge the gap between more traditional investments to newer cryptocurrency markets for both individual and institutional investors.
Gemini is also remarkable because it accepts ACH transfers for quick access to money for transactions. A potential disadvantage is that the interface is not particularly beginner-friendly.
From the team that MinerGate has made
Supports many cryptocurrencies
Competitive in terms of fees
Relative newcomer on the spot
Changelly is a cryptocurrency exchange with support for many more virtual currencies than most, including Monero, Dash, Bytecoin and DigitalNote. If you are mining a less popular currency, chances are Changelly can trade it for you.
This exchange comes from the popular mining platform MinerGate, which offers a pooled mine pool for Windows, Mac, Linux and Android operating systems. While Changelly focuses on exchanges between different cryptocurrencies, users can also buy cryptocurrency with US Dollars or Euros.
Note that this exhibition has a shorter track record, since it only came on the market in 2016. Exchange rates are 0.5% on transactions.
An exchange that literally supports hundreds of cryptocurrencies
Supports a large number of virtual currencies
Low trading fee
Expansive and rather unwieldy website
Cryptopia was founded in 2014 and aims at an extensive exchange that focuses on the user experience, with the integration of additional services, including a marketplace and a wallet. It is located in Christchurch, New Zealand. Cryptopia is notable because the first authentication level takes place very quickly and only an e-mail address is required for the initial verification.
Although Cryptopia does not support fiat money trading, it supports a ridiculously large number of cryptocurrencies: up to now more than 400, with more and more being added. The trading fee is also a low 0.20% per transaction, which is favorable compared to many competitors. The website is quite large and widespread, meaning that new users will find their first experiences with the site a bit daunting.