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How to Choose a Crypto Exchange Site

How to Choose Cryptocurrency Exchange Sites?

Last Updated on

When deciding on a crypto exchange site you should focus on 6 main objectives. Has the site been functioning correctly for a sufficient amount of time, does it have good trust amongst the community, reasonable fees, transaction time, privacy, and security.

 

What is a cryptocurrency exchange?

A cryptocurrency exchange is a platform that provides its users to conduct Cryptocurrency transactions.

This can be for crypto to crypto, fiat to crypto, or crypto to fiat depending on the exchange.

Some Crypto exchanges offer its users with an online wallet where crypto can be kept.

Examples of cryptocurrency exchange include; Coinbase, Changelly, Robinhood, and Square Cash.

 

What is the Best Way to Buy Cryptocurrency?

Cryptocurrency is bought through two primary means, the peer-to-peer exchange and through cryptocurrency exchanges.

There are no best means to purchase cryptocurrency, and it mainly depends on some factors like transaction time, privacy, and security.

Each means of purchasing Cryptocurrency presents its advantages and disadvantages, a proper discussion on how they work might help you select the best one.

The ways to buy Cryptocurrency includes:

 

Peer-to-Peer

Peer-to-Peer is also commonly called P2P; it involves a transaction between two random people.

P2P consists of the transaction between a buyer and a seller, you as the buyer is required to search for sellers willing to trade cryptocurrency.

This transaction can be a Cryptocurrency to a cash transaction or crypto to a crypto transaction. P2P is a speedy way to buy cryptocurrency, but its transaction should mainly be done with trusted people.

Since there is no central authority to monitor the status of the transaction, P2P can be used as a fraudulent means.

Let’s take, for example, you decide to buy Bitcoin from James, who owns a few coins. James is required to transfer the coin over to your wallet, and you only send cash after you have received confirmation of receiving the sent crypto coin.

Some people work intending to scam the recipient, by accepting payment and refusing to send the coin over or vice versa.

 

Cryptocurrency Exchange

Cryptocurrency exchange are platforms that allow transaction of cryptocurrency.

Cryptocurrency transactions might not be as fast as Peer-to-Peer, but it much safer.

You can buy, sell, and trade cryptocurrencies on exchange as long as the platform lists the cryptocurrency.

Most Cryptocurrency exchange also provides you with crypto wallets where you can store your cryptocurrencies.

However, some digital wallets have a limited list of cryptocurrencies that you can store in them; an example is Wanchain wallet, which allows storage of Wancoin, the platform’s digital coin.

Common examples of cryptocurrency exchanges are, Coinbase, Changelly, and Square cash. 

Buying cryptocurrency through exchanges is easier than P2P as the platform buys and sells, or easily link you with other users who are ready to buy.

You don’t have to search for buyers or sellers, as in the case of P2P. Also, the platforms serve as an intermediary in such transactions to ensure that there is a mutual transaction at the end of the deal.

So, the risk of losing your cryptocurrency or money is also lower than P2P.

 

 

Which Crypto Exchange has the Lowest Fee?

Cryptocurrency exchange charges a fee during a transaction, and these fees include; Deposit fees, withdrawal fees, and trading fees.

The fee each cryptocurrency exchange charge depends on the exchange as there is no central body governing the fee.

We will discuss the top 5 cryptocurrency exchange with low fees during transactions. They are: 

 

Coinbase

Coinbase is a cryptocurrency exchange that has many users and allows cryptocurrency trading or transactions on its platform.

Also, Coinbase allows more than 30 countries on the platform.

The charges on Coinbase depends on your region and the mode of payment selected, but, the platform provides a discount of 0.50% on every price displayed for users.

You can see our full review on

 

Gemini

Gemini is a New York-based cryptocurrency exchange that allows over 30 cryptocurrencies on its platform.

The fee charged on this platform depends on the volume of cryptocurrency involved in the transaction.

Generally, all fee ranges between 0.10% and 1.00%. The charged fee is inversely proportional to the volume; the charges increases when the volume is lower.

You can also see our review of Gemini called, Gemini Exchange Review | The Safest Exchange? 

 

Kraken

Kraken is a cryptocurrency exchange founded in 2011, and it utilizes a maker-taker pricing model.

Kraken doesn’t charge any fee from the market makers if the trading volume within a 30-day trading time is higher than $10 million.

However, if the trading volume falls below that, you are charged a 0.02% fee, this fee will relatively increase as the trading volume reduces.

 

Binance 

Binance is the exchange fee that charges the lowest fee of all cryptocurrency exchanges.

The cryptocurrency exchange also employs the maker-taker pricing model. Both maker and taker are charged 0.10% for a trading volume below 100Bitcoins.

Discount is, however, given to HOLDers of the BNB coin and also users who make payment with this coin on the platform.

 

Changelly

Changelly is a cryptocurrency exchange that allows over 130 cryptocurrencies on its platform.

Changelly allows over 25 countries access to its platform, and the security of this platform is remarkable. This cryptocurrency exchange also works with the maker-taker pricing system, like most exchanges.

The platform charges 0.50% on the market takers and makers;  this fee can, however, reduce if the volume involved increases.

For every withdrawal, Changelly charges 0.0001% on both the market maker and taker.

Recommended Crypto Tools

 

What is the best exchange to buy cryptocurrency?

There are over 500 cryptocurrency exchange in the digital world, and selecting one to trade with can be tasking.

This section will choose the top 4 based on how user-friendly they are, ease of access, security, and, most importantly, reviews from users.

 

Changelly

Changelly is a crypto exchange that offers speed, high-level security, and exchange of over 150 cryptocurrencies, including; Bitcoin, Ethereum, and Ripple.

Changelly provides one of the best rates on the market, and the charged fee associated with transactions is transparent.  It has a large number of trusted users (over 2 million), and many countries use it.

It has a user-friendly interface that is easy for anyone to use.

The platform provides you with an online wallet once you sign-up, this wallet can store almost all types of cryptocurrencies.

 

Coinbase

Coinbase provides comfortability when buying, selling, and managing your cryptocurrency profile.

This platform is one of the cryptocurrency exchange that works with the most cryptocurrency.

Coinbase gives you a portfolio where you can keep track of your cryptocurrencies and transactions. It also provides its users with a vault; this vault offers added security with time-delayed withdrawals.

This platform only works with a mobile device app which is compatible with both iOS and Android operating system.

Coinbase supports over 100 cryptocurrencies, and the platform is also straightforward to use for trading.

Currently you can also Earn Crypto using Coinbase’s Learn and Earn Program.

 

Robinhood

Robinhood provides a commission-free investment for its users.

The platform works with a mobile and desktop app which is compatible with all operating system.

Robinhood offers a 24/7 trading time, which means you can always trade on the platform.

Robinhood is specially designed to be easy to use for newcomers and also for experts alike.

Robinhood provides access tools and features to find the right moment to invest; these tools include Cryptocurrency news, price movement, and customized investment new.

You can get FREE stock by signing up for Robinhood. You have the chance to win stock like Apple, Ford or Facebook that you can use however you’d like by joining here (While offer lasts).

 

Square Cash

Square Cash provides its users with tools that help to save time, money, and effort. Once you sign up on the platform, all devices are available to you, and you can start easily buying Bitcoin.

While offer lasts you can get $5 to use however you’d like just by joining and using Square Cash here.

 

What is the best cryptocurrency trading platform? 

The exchange market is full of many exchanges, and selecting the right one might not be that easy.

Binance is the best cryptocurrency trading platform due to the ease of access, the region it covers, the number of cryptocurrency available on the platform, and low fees.

Binance offers meager charges to its users and other discounts to users who possess their coin, BNB, or make a payment on the platform with the currency.

Apart from the low cost the platform offers, it has a user-friendly interface that almost anyone new to the crypto world can make use without any guidance.

Also, Binance offers its users a crypto wallet. Once you sign up with the cryptocurrency platform, this digital wallet can store all types of cryptocurrency.

Binance brings your wallet closer to you as it has a mobile and desktop app compatible with all operating systems; Windows, macOS, (desktop), apple app store, play store (mobile). Binance offers traders the opportunity to trade hundreds of cryptocurrency on its platform.

They also offer fiat to crypto with the use of credit cards.

 

Which is the best wallet for cryptocurrency?

There are different wallets for storing cryptocurrency. We highly recommend Trezor Hardware Wallet if you want security, peace of mind and stability.

Also, see our full Trezor Review and everything they have to offer.

The different types of wallets include:

  1. Online wallet: details of this wallet are saved in the cloud, and therefore, the user can log in form multiple devices. This type of wallet provides availability as it is always available no matter your location
  2. Mobile and Desktop wallet: this is wallets available on your mobile devices and desktop, respectively.
  3. Hardware wallet: details of the transaction for this type of wallet is stored in a USB-like device. Hardware wallets are offline unless you attach to a pc, hence providing more security than online wallet and mobile, desktop wallet.
  4. Paper wallet: this is the best and most secure type of wallet. This type of wallet has its public and private key printed in a paper-like form. Since the paper wallet is always offline, it is close to impossible to hack this wallet.

The most used cryptocurrency wallet is an online wallet. Cryptocurrency exchange platforms mostly provide them. The most secure type of wallet is the paper wallet, but it is not easily accessible like the online wallet.

 

Conclusion

You have to be careful choosing an exchange as many come and go. They, of course, disappear with your crypto.

Make sure your investment is secure and use only trusted exchanges and be sure to also protect your identity.

There is more at stake than your crypto.

See our list of Battle-Tested Recommended Tools for Crypto to help keep you and your crypto safe and secure!

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