Digital asset exchanges are pivotal platforms where you can engage in trading or investing in cryptocurrencies. These exchanges offer a secure and user-friendly environment for purchasing cryptocurrency tokens from others.
There is a wide variety of cryptocurrency exchanges available, with Coinbase being one of the most renowned. In fact, Coinbase reportedly generated revenues exceeding $1 billion in 2017, largely due to a surge in retail investors acquiring various cryptocurrencies. Although each cryptocurrency platform has its unique features, a common characteristic among many is their focus on facilitating the exchange of Bitcoin for fiat currencies. Most platforms steer clear of dealing with altcoins, owing to their low market values and high price volatility.
To this end, two types of exchange have grown – fiat/crypto and crypto/crypto.
Platforms like Binance, for instance, allow only crypto-to-crypto transactions and do not support fiat currency trading. Therefore, if you wish to purchase “Litecoin” or a similar cryptocurrency, you generally need to first acquire Bitcoin through a service like Coinbase, and then exchange that Bitcoin for Litecoin on Binance.
Unlike conventional currency exchange services, crypto exchanges don’t directly manage the currencies themselves. Although they store the tokens within their infrastructure, they primarily function as a wallet for you. This means that when they find a buyer, they automatically initiate the transfer process, so you don’t have to take any action yourself.
List of the best Crypto Exchanges
CoinBase
Coinbase is highly regarded as one of the top bitcoin exchanges, favored especially by those who prefer the ‘dollar cost averaging’ method. This approach allows users to set up automated purchases of bitcoin on a weekly or monthly basis. Known for its straightforward and hassle-free interface, Coinbase primarily focuses on the buying and selling of bitcoin.
Binance
Binance, a well-known cryptocurrency exchange based in China, has quickly become popular for its crypto-to-crypto trading services. Despite being relatively new to the market, the platform has attracted a significant following due to its extensive list of Initial Coin Offerings and its competitively low trading fees.
Blockfi
The traditional methods are outdated. BlockFi lets you leverage cryptocurrency to earn up to 8.6% APY in interest, access cash through loans, and trade crypto. Enjoy transparent pricing with no hidden fees, no required minimum balances, and no delays.
Paxful
Paxful is transforming the financial landscape. In only five years, they’ve risen to become a top peer-to-peer bitcoin marketplace, serving millions globally. And this is just the beginning.
BitBuy
Bitbuy simplifies the process of buying, selling, and managing your cryptocurrency portfolio. Start today by following our straightforward guide to account setup.
BTCC
BTCC stands as a premier global digital asset trading platform, established in Shanghai in June 2011. In 2013, it secured a Series A funding of USD 5 million from Lightspeed Venture Capital. Expanding its global footprint, BTCC established its headquarters in Hong Kong in January 2018 and opened additional offices in the United Kingdom and other countries. This expansion underscores BTCC’s commitment to internationalization, aiming to offer stable, transparent, and fair investment services worldwide by combining blockchain technology with financial technology (Fintech).
Cex.io
CEX.io, established in 2013 in London, is among the earliest Bitcoin exchanges. It originally served as both a Bitcoin exchange and a cloud mining provider. At its peak, its mining pool, Ghash.io, was so large that it controlled 42% of the entire network’s mining power.
Kraken
Kraken is a bitcoin service provider that caters to traders, offering features like leverage and the ability to short sell. Known for its strong reputation, Kraken was among the first bitcoin exchanges to successfully complete an independent audit.
