How to choose a cryptocurrency exchange that is best for you? There are a number of factors to consider, and these will have a large impact on your investing experience. Such factors include the number of cryptocurrencies available (i.e. does it offer the cryptocurrencies you want to buy), what fiat currencies (eg. US Dollars, Euros etc) are supported (if any), verification processes, good customer service and if your jurisdiction is supported.
Above all however, you must ensure that any exchange you choose takes due care when it comes to security. It will pay to do some of your own background research to find out the history of exchanges, particularly if they have been hacked or have a bad reputation. Below are listed a few example exchanges that you could consider with some of their pros and cons.
The Binance exchange was founded in 2017 in Hong Kong by Changpeng Zhao. It is considered the world’s largest exchange by trading volume.
- 170+ Cryptocurrencies and 570+ trading pairs available (at the time of writing)
- Card Purchases
- Low Fees
- Unclear information about which countries are supported and which are not
- Was hacked in May 20191,2
- Crypto only deposits
Coinbase and Coinbase Pro
Coinbase was founded in 2012 by its CEO Brian Armstrong. Its headquarters are located in San Francisco and has expanded internationally.
- Coinbase has a easy to use interface.
- Coinbase Pro trading platform
- Never Been Hacked
- Instant card purchases
- Insured Bitcoin Deposits
- Fiat withdrawals and deposits
- Well Regulated
- Higher fees to purchase by card.
- Cost of simplicity on Coinbase is higher fees compared to Coinbase Pro.
- Relatively few cryptocurrencies available
- Customer support has garnered a reputation for being appalling and slow3,4,5
- Coinbase Pro is suited for technical traders only
Kraken is another exchange that is based in San Francisco. Jesse Powell founded the exchange in 2011 and since then has expanded to serve clientele in various other parts of the world.
- Good Reputation
- Great Support
- Wide Range of Cryptocurrencies available
- Good Security
- Low Fees
- Muddled User Interface
- Limited Payment Methods
- Not Beginner Friendly
- Very Private Requiring No ID Verification (unless trade or use seems suspicious)
- Card purchases supported
- 140 Cryptocurrencies Available
- High fees to buy using a card
- Unavailable to US Customers6
- Very expensive to exchange fiat
Is There A Crypto Exchange That Is Considered The Best?
It will depend on your needs. If you are wanting to buy many different types of cryptocurrency, you may find Binance to be an example of a good choice. On the other hand, if you wanted to use an exchange where you could deposit Fiat, Binance would be rather unsuitable. In this case an exchange like Coinbase would better fulfil your needs. Be sure to look at any exchange thoroughly to ascertain whether they will meet your usage requirements.
What Exchanges Are The Most Secure?
All of the above exchanges for the most part have a good track record (at time of writing) when it comes to security. However it is advisable to not keep your funds on an exchange for an extended period of time. Afterall, exchanges such as these are a prime target for cyber criminals. If you want to mitigate the risk it would be prudent to move any particularly large holdings into cold storage as soon as possible.
Like this article on the best cryptocurrency exchange: choosing one for your needs? Then check out our guide to choosing cryptoassets to buy here
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