The Ultimate Guide to Best Crypto Exchanges

-> What is Crypto Exchange

-> Top 5 Best Crypto Exchanges

-> How to Choose the Best Platform

-> How to Make Money with Crypto Exchanges

-> Managing Trading Risks

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Editor’s Pick: Best Crypto Exchanges

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What is Cryptocurrency Exchange?

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Cryptocurrency exchanges are trading venues where buyers and sellers of digital assets (Bitcoin, Ethereum, and other altcoins) can conduct their business and trade. For example, one can buy a cryptocurrency for fiat money like dollars, euros, pounds or other currencies and exchange it for other digital assets.

Right now, the best crypto exchanges operate as private companies and are not regulated. Still, the most significant exchanges take their business and customers’ security seriously and run to the highest rule of conduct. In addition, some of the best crypto exchanges are backed by international investment firms (venture capital and others), which gives their additional business credibility. Finally, most of the best crypto exchanges offer cryptocurrency wallets, chat messaging services, and trading platforms for professional traders.

How to choose the Best Crypto Exchanges

While many people prefer to trade crypto via specialist CFD brokers, some prefer to buy Bitcoin or Ethereum directly on a crypto exchange. Unfortunately, while there are numerous crypto exchanges on the market, it is not easy to pick up the best one, and there are several things to consider.

Reputation

While many exchanges claim that they are the best ones, we have seen many of them being hacked in the recent month, with clients losing millions of dollars. Also, since best crypto exchanges are not regulated like the regular ones, reputation plays the key. Every exchange has its ups and downs. However, the general opinion of the top ones is positive. Even if they run into problems, they will fix them (unlike others where owners can potentially run off with your money and disappear). We recommend doing some research and reading some independent exchange reviews to understand the exchange reputation better.

Fees

Almost every exchange will charge a transaction fee when you sell or buy cryptocurrency. If someone is offering it for free, you must be very careful (unless the exchange runs special promotion). We recommend studying the exchange rates fees so you know what costs you incur when trading cryptos.

Security and Verification Requirement

Security is one of the main factors, as if the exchange is hacked and your digital coins are stolen, there is a very slim chance of getting them back. Also, while Bitcoin or Ethereum is anonymous, in principle, all the best crypto exchanges will ask for your verification documents such as a copy of the passport, ID, and residence address. That is not a bad thing. It means the exchange takes their business seriously and tries not to run into any potential problems with regulators (like money laundering, etc.).

Exchange Rates

Unlike fiat currencies or other traditional asset classes, crypto exchange rates vary from exchange to exchange considerably. So while exchange rates probably won’t be the critical factor in picking the trading venue, one should still give it careful consideration and other factors.

Region

This is another essential thing to consider, and you need to make sure that exchange supports your geographic region. Exchanges in one area often do not support clients from the other regions, so please check this carefully before signing up.