The thing that more and more people of a present-day would like to or should know. How to choose the best cryptocurrency exchange? We will try to solve the case in this article.
Cryptocurrency exchanges vary in fees, available crypto- and fiat currencies, KYC procedures, user experience, ease of use, and many more things. The following paragraph will explain how to cut through the complexity of the issue and choose the best crypto exchange fitting your needs and profile.
What cryptocurrency exchange should I use?
The case is practically a bottomless pit. The perfect formula is composed of tons of components. Either way, it’s possible to find the most important and the most indispensable of them. The list below does the job for you. Pleasure is all ours.
Without proper mechanisms protecting users’ funds a platform is a no-go. A user is committed to check what kind of methods of securing the crypto exchanges have.
The ones without solid two-factor authentication (2FA) are undoubtedly below today’s standards. Yet, it’s good to know which of 2FAs the platform has. Make sure you make use of the security methods offered by the exchanges. Configure the two-factor authentication (2FA) using your phone number, authenticate by SMS, dedicated application (such as Google authenticator or Authy), or hardware method (ie. Yubikey).
- KYC/AML Procedures
Cryptocurrency Exchanges need to comply with international authorities and laws, especially those regarding Anti-Money Laundering (AML) and Financing Terrorism. Therefore they often introduce their AML and Know Your Customer (KYC) procedures.
The most common questions they ask are about your ID (passport, driving license or ID will work), a utility bill with your address on it to confirm your location, and a declaration of the source of funds (savings account is most often a sufficient answer). Sometimes they will ask about your up-to-date photo with your ID in your hand.
Cryptocurrency exchange reviews
At first glance, it’s no big deal. Any institution, company, or services requires solid references from its customers to gain new ones. It’s the truth as old as the hills. Yet, with crypto companies, reputation is a crucial thing. When you join the cyberworld, you have to be aware of the threats waiting for you.
As we are dealing with our money, it’s better to stick with the biggest and most reputable entities. With a bigger volume of transactions and more counterparties on the platform, the exchange will be more liquid and easy to find the best price for cryptos. It can be useful to look for opinions online and look through their social media profiles. Beware of the exchanges with many negative reviews and ratings.
It’s pretty simple and intelligible - if you don’t want to fall scam in any of cryptocurrencies-related businesses, read comments and reviews, period. It’s also worth delving into the community of bitcoin holders. Bitcointalk being the best possible example of this part of society's online activity. We’re there as well if you want to check our Bitcointalk profile.
Another part of pivotal research. You would like to know something about the company which services you use, don’t you? After all, they manage your money. Transparency is the next essential part of exchange platforms’ functioning in the business. Additionally, this part should be inseparably connected to two previous must-haves. Transparency creates reputation and security makes room for transparency.
What is the best exchange for cryptocurrency?
Exchange platforms have to concur with both supply and demand. Without liquidity transactions take more time, they’re harder to finish and to avoid inconvenient price flexibility. The higher the platform, the bigger the possibility that you will end up with the expected price of the coin, the one that you hoped to get at the moment of transaction. Locked-in pricing is a method that guarantees the user a price at the exact time of his transaction, no matter if it settles immediately or not
- Crypto and Fiat exchanges
Not all the exchanges accept fiat currencies (USD, EUR, etc.) and most probably you’ll need to exchange your fiat to crypto at some point. Make sure the chosen exchange has all the currencies you will need. Remember as well to choose a site that offers you advantageous exchange rates. After all, who likes to overpay? This paragraph leads us automatically to the next one, this one directly concerning the costs of the transaction.
Which cryptocurrency exchange has the lowest fees?
The most common way exchanges make money is to charge a fee on each transaction. The percentage of these fees varies from platform to platform. If you buy for the long term or to make instant use of cryptocurrencies you acquire, it won’t matter too much. Although, if you want to trade often - make sure you choose the platform wisely. Some of the exchanges charge their clients on withdrawals and deposits.
Recommended cryptocurrency exchanges
|Exchange||Transaction fees||Deposit fees||Withdrawal fees|
|Bitbay||0.17% - 0.43%||No||Yes|
|Kraken||0.16% - 0.26%||No||No|
|Coinbase||1.49% or fixed fee||No||No|
|cex.io||0.16% - 0.25%||No||Yes|
Taking into consideration the aforementioned aspects we came up with a list of recommended exchanges. We took into consideration their security, fee structure, platform popularity, ease of use, complexity and length of KYC procedures and moreover we negotiated special deals for you.
• Binance - The biggest and most popular crypto exchange. With this link, you can easily set up your account and get special OneHash cashback on your transactions.
• Bitbay - One of the biggest cryptocurrency exchanges in Europe. Quick signup procedure and easy to use interface.
• Kraken - Owners like to tell their platform is more than just a Bitcoin trading platform. See for yourself if they’re right.
• Coinbase - The global one, providing a venue with fiat currencies in over 32 countries, and bitcoin transactions and storage in nearly 200 countries.
• cex.io - Established in London in 2013, exchange offers i.a. Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Zcash and other options of trading.
Whereas the first purchase could take you some time, all the subsequent transactions will be much faster once you configure your accounts, wallets and get some experience in this matter.
While it’s not recommended to keep your bitcoins at the exchange (remember, Mt Gox?), it’s better to transfer them to your private wallet or directly to your secure OneHash Wallet.
Now you know another one of bitcoin best practices. And this one is not only focused on the most popular of cryptocurrencies.
Since now you know the possible ingredients of cryptocurrencies exchange and how to mix them, you ought to make a perfect dish out of digital assets. B(itc)o(i)n Appetit.