What is a cryptocurrency exchange?
Cryptocurrency exchanges are websites where you can buy, sell, or exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euro. For those that want to trade professionally and have access to fancy trading tools, you will likely need to use an exchange that requires you to verify your ID and open an account. If you just want to make the occasional, straightforward trade, there are also platforms that you can use that do not require an account.
Types of crypto exchanges
Trading Platforms — These are websites that connect buyers and sellers and take a fee from each transaction.
Direct Trading — These platforms offer direct person to person trading where individuals from different countries can exchange currency from their bank account. Direct trading exchanges don’t have a fixed market price, instead, each seller sets their own exchange rate.
Brokers — These are websites that anyone can visit to buy cryptocurrencies at a price set by the broker. Cryptocurrency brokers are similar to foreign exchange dealers.
What to look out for before joining crypto exchanges
Trading Fees — Most exchanges should have fee-related information on their websites. Before joining, make sure you understand deposit, transaction and withdrawal fees. Fees can differ substantially depending on the exchange you use.
Payment Methods — What payment methods are available on the exchange? Credit card? Debit card? Wire transfer through your bank account? PayPal? Can you trade with USD EUR? If an exchange has limited payment options then it may not be convenient for you to use it. Remember that purchasing cryptocurrencies with a credit card will always require identity verification and come with a premium price as there is a higher risk of fraud and higher transaction and processing fees. Purchasing cryptocurrency via wire transfer will take significantly longer as it takes time for banks to process.
Verification Requirements — The vast majority of the Bitcoin trading exchanges both in the US and the UK require some sort of ID verification in order to make deposits & withdrawals. Some exchanges will allow you to remain anonymous. Although verification, which can take up to a few days, might seem like a pain, it protects the exchange against all kinds of scams and money laundering.
Geographical Restrictions — Some specific user functions offered by exchanges are only accessible from certain countries. Make sure the exchange you want to join allows full access to all platform tools and functions in the country you currently live in.
Exchange Rate — Different exchanges have different rates. You will be surprised how much you can save if you shop around. It’s not uncommon for rates to fluctuate up to 10% and even higher in some instances.
Which crypto exchanges are best to buy bitcoin?
Today there are a host of platforms to choose from, but not all exchanges are created equal. This list is based on user reviews as well as a host of other criteria such as user-friendliness, accessibility, fees, and security.
Our top recommendation for cryptocurrency exchange:
Cryptmixer.com is a Swedish owned and operated digital currency platform. Originally founded as InstaBTC in 2011, the company’s mission is to provide convenient, dependable and secure access to bitcoin and other digital currencies. Customer service, ease of use, and quick turnaround times for deposits and withdrawals are pillars of this platform. They cater to beginners as well as experienced traders, and are one of Sweden’s quickest growing buy/trading platforms.
Great customer service
No registration and verification required
Quick deposits and withdrawals
Low fees ( 0.05%)
Referral service available
Only offers BTC, ETH, LTC, BCH, XMR, XRP