The question about the best cryptocurrency exchange to use for crypto trading must have come across your mind maybe once, and we will love to give a beatdown of the best platforms for your trading in 2021.
Looking for the best cryptocurrency exchange? We review crypto exchanges to help you decide which one makes sense for your cryptocurrency needs.
Buying cryptocurrencies starts with finding the best crypto exchange for you and your specific needs. There are many to choose from, with varying deposit and withdrawal fees, identity verification requirements, and user experiences. Below, we have listed the top crypto exchanges we recommend, and you can dive into our in-depth crypto exchange reviews. Whether you are an experienced trader, or looking to buy cryptocurrency for the first time, we are sure you will find a cryptocurrency exchange that supports all of your digital asset needs.
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What is an Exchange?
Cryptocurrency exchanges are similar to the ones available for traditional fiat currencies like USD, EUR or CAD.
You simply add funds to your exchange account and than you can swap that currency for a different one. Many people make their first deposits on cryptocurrency exchanges with fiat currency and then trade it for cryptocurrency like Bitcoin or Ethereum.
Once you’ve acquired cryptocurrency you can also trade it for a different cryptocurrency. So you can trade your Bitcoin for Ethereum or your Ethereum for Litecoin or Polkadot. There literally thousands of different trading pairs available on different cryptocurrency exchanges around the world.
Your cryptocurrency account can be funded through your bank using ACH in the USA or SEPA in Europe. Most of the best crypto exchanges also offer you the ability to buy the top cryptocurrencies directly with your credit or debit card.
Once you purchase cryptocurrency on the exchange, you may want to transfer it to a secure wallet that you control. If you decide to leave your digital currency on the trading platform then you are free to engage in cryptocurrency trading. Top cryptocurrency exchanges offer competitive trading fees, have high trading volumes, easy to use trading platforms and top-quality customer support.
Most people use cryptocurrency exchanges for three distinct reasons:
Why Do I Need an Exchange?
There are other ways to buy cryptocurrencies, including peer-to-peer trading and ATMs, but exchanges are the easiest way to trade fiat currencies for cryptocurrencies or to simply purchase cryptocurrency from the comfort of your home. With an exchange, you do not have to meet up with someone in person to buy cryptocurrency, and the fees are typically much lower than with Bitcoin ATMs.
The best crypto exchange for you depends on your needs. If you are exchanging Bitcoin for USD or CAD, you may need a cryptocurrency exchange that offers competitive rates for transferring fiat currencies to your bank account. If you are planning on cryptocurrency trading or simply are interested in diversifying your portfolio with a few different digital assets then you will want to peruse our crypto exchange reviews for the top crypto exchange in terms of trading fees, volumes, and transaction fees.
What Are the Best Crypto Exchanges?
Listed below are some of the best Cryptocurrency exchanges. Depending on your geographic location, some might be more accessible to you than others.
Do All Exchanges Accept Credit Card or Bank Transfer?
Not all cryptocurrency exchanges accept credit card and bank transfer deposits, and some only support these methods through specific financial institutions such as SEPA. Some cryptocurrency exchanges exist only for trading cryptocurrency and therefore only accept deposits and withdrawals in cryptocurrency.
It is a good idea to pick a top crypto exchange from our crypto exchange reviews that allows you to buy and sell cryptocurrency with fiat currencies such as USD, EUR, GBP, or CAD. Each cryptocurrency exchange will offer different fees for the varying deposit and withdrawal methods that they accept, so we recommend figuring out how you would like to fund your account and whether you are planning on trading or holding your digital currency. Once you have determined that, you can look through our crypto exchange reviews for the exchange that will make your funds go the farthest.
I Bought Cryptocurrencies on an Exchange. Now What?
The crypto you bought is now on the cryptocurrency exchange and is stored in your exchange wallet. This is considered a non-custodial wallet, meaning you do not have complete control over your crypto assets stored in your wallet, the exchange does. Since exchanges deal with massive volumes of money and store large quantities of assets at many wallet addresses, they are an extremely tempting targets for hackers. The best crypto exchanges cycle assets to cold storage to reduce their exposure in the rare event of a hack.
The ever-present possibility of a hack is why we recommend that once you have bought your cryptocurrency, you transfer it to a wallet that only you control. If you are planning on engaging in cryptocurrency trading then we simply recommend you only leave as much of your digital assets on the exchange as you are willing to lose. While hacks are not very common anymore, they can happen. If you are thinking of staking your asset that can be done through an exchange as well, but there are hardware wallets that allow staking directly through their interface. For example, you can stake Tezos through a Ledger hardware wallet.
The safest thing you can do with your cryptocurrency is to store it in a software or hardware wallet to which you hold the private keys. Software wallets are often free and are certainly a step up in security compared to keeping them on the exchange. Hardware wallets such as the Ledger Nano X or Trezor Model T are some of the safest ways to store your assets in cold storage, meaning your crypto assets are offline, with no connection to the internet, making it extremely low risk of being hacked. Here are some of the best cryptocurrency wallets on the market today.
What Are the Benefits of Keeping My Assets on an Exchange?
Conversely there are a few interesting reasons why you may choose to store assets on the exchange instead of transferring them to a wallet:
Many exchanges offer both hard and soft staking options through their exchange. Hard staking means you have no access to those assets for the staking period and earn interest on that amount, while soft staking means you have the flexibility of taking the assets when you want and interest is often added daily. Top crypto exchanges such as KuCoin, Coinbase, and Binance offer both these options.
Some exchanges offer trading competitions with rewards, where the top volume traders for an asset have a chance to win crypto or even physical prizes such as cars or electronics. Some of the top exchanges have gotten very creative with their events.
Crypto.com Exchange has an event which they call The Syndicate. Staking a minimum of 10,000 of their native token, CRO, for 180 days, gives users access to these events. During this 24 hour Syndicate, users have the ability to purchase a cryptocurrency offered at that Syndicate at a discount. This discount can be anywhere from 25%-50% off market price. Once the event has ended, users receive their discounted digital assets. Having these events has pushed CRO to the borderline of being a top 10 asset.
While storing your assets on the exchange does come with the risk of exposing your assets, having them readily accessible to be traded for other cryptocurrencies or exchanged for fiat currencies is very convenient. Plus, each transaction you make sending to and from an exchange incurs a network fee. If you are likely to trade an asset, it makes more sense to leave it on the exchange. This is enable you to save on fees and increase your total income.
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