In the world of crypto, things are moving at blinding speeds and finding the best cryptocurrency exchange to buy Bitcoin and altcoins takes trail and error. Luckily we’ve trialled all the contenders so you don’t have to.
Binance exchange for example was only launched in July 2017 and in only 6 months overtook Bittrex as the busiest cryptocurrency exchange on the planet with the CEO even making it onto the front cover of Forbes magazine as one of the richest people in crypto.
In the age of technology and instant global access to information, things can change in a heart beat and we must be constantly keeping our fingers on the pulse of change and innovation to make sure we don’t get left behind.
New cryptocurrency exchanges are constantly being launched, each one trying to improve and make an exchange better for all.
What is a cryptocurrency exchange?
Many people who haven’t yet familiarised themselves with the fundamentals of cryptocurrency and how the technology works tend to liken Bitcoin and other cryptocurrencies to the stocks and shares.
Although the two markets do have their similarities, the two are worlds apart for many reasons. The main difference and what I believe is the factor attributed to the rising popularity of cryptocurrencies, is that anybody has access. To trade in the stock market you must go through a stock broker, the markets have been around for hundreds of years and were born in an age of slow movement of information. The exchanges close overnight for starters.
In cryptocurrency though, thanks to the age of the internet where everyone is connected in an instant, there is no night and day. The internet never sleeps and neither do the cryptocurrency markets.
Cryptocurrency exchanges allow anybody access, although some do require ID verification in order to use them, it is possible to trade completely anonymously, instantly with no minimum buys.
Everyone has access to information at their finger tips and can make informed decisions about exactly what they want to buy, when they want to buy it and how much they want to buy. The restrictions when it comes to cryptocurrency investing are pretty much non existant. Although those under 18 may run into difficulties on some exchanges, literally anybody can get involved.
What is the best cryptocurrency exchange to use?
There are so many new and upcoming exchanges that we have very high hopes for. The market is still very young and has a lot of maturing to do and we can expect a lot of big changes. Some of these up and coming exchanges, Switcheo and NEX for example could do very well and in a few months may well be leading the way, but for now here are our best picks for 2018.
What is Binance exchange
Binance is currently taking the cryptocurrency markets by storm. Arguably the fastest growing company ever to exist, the company is already worth more than $1 Billion after just nine months of trading.
Why use Binance exchange?
Binance hold regular airdrops, giving customers new cryptocurrencies they’ve listed on the exchange for free as an incentive for using the account.
They have low fees of 0.1% per trade. Holders of their own cryptocurrency, Binance Coin (BNB) however get 50% off trading fees. Every quarter they use 20% of the profits to buy back BNB and burn it, reducing the total supply and making the cryptocurrency more scarce. This is known as the Binance Coin Burn. Binance Coin recently made it onto our list of the top 3 best cryptocurrencies to invest in.
They have their own blockchain in development, Binance chain which they will use to run their own next generation exchange on which is also in development. Decentralized exchanges or DEX’s allow users to trade without actually depositing funds, making it much more secure and less risky for investors to use.
Binance have regular competitions! When a new altcoin in listed, Binance sometimes incentivise users with the largest trading volume in that cryptocurrency.
What is Bittrex exchange?
Bittrex was the leading cryptocurrency exchange until recently when Binance ran into the lead. Bittrex was under so much demand in late 2017, they had to suspend new users from registering accounts! This definitely gave Binance the advantage because it was the up and coming place to go and at the time one of the only available alternatives.
Recently, Bittrex have redesigned the website and opened up registration for new accounts again. The exchange is now playing catch up with Binance, but at the moment is seems Binance has a lot more to offer and have set their sights high! For now they’re the best cryptocurrency exchange there is, but for how long?
Why use Bittrex exchange?
Bittrex has a wide range of cryptocurrencies available to trade which is the main advantage at the moment. They have many more available options than Binance, although it may be argued that Binance perform much more stringent tests to make sure the assets are legit. That said, they did run into an issue recently when they were forced to de-list Centra Tech (CTR) after it being announced they miss-sold investors in possible the biggest ever ICO scam.
Bittrex is still a great option when it comes to buying cryptocurrency altcoins and still up there as one of the best cryptocurrency exchanges.
What is Local Bitcoins exchange?
LocalBitcoins.com is a great way of converting fiat currency into Bitcoin.
Bitcoin is the starting point when investing in cryptocurrency. Because most exchanges do not accept fiat currency, you must first buy one of the leading cryptocurrenices to get started and buy altcoins. Bitcoin is accepted by most cryptocurrency exchanges and as such we recommend buying Bitcoin to start.
When you’ve bought your Bitcoin, you can then send it to another exchange such as Binance or Bittrex to buy altcoins.
Why us Local Bitcoins?
Local Bitcoins is a peer to peer Bitcoin only exchange. They match buyers and sellers and offer an escrow service giving protection to both the buyers and sellers.
The main benefit is the fact you’re buying the Bitcoin from another person. You can exchange funds through any medium available, whether it be bank transfer, Western Union, PayPal, post or more!
Due to the fact that many banks are looking negatively upon cryptocurrency transactions at the moment, Local Bitcoins is a great choice because banks will be less likely to flag your account up as transacting in cryptocurrency.
What is Switcheo exchange?
Switcheo is the first ever decentralised exchange to run on the NEO blockchain. Switcheo is one of the first NEP5 tokens and is part of what can only be described as the rise of NEP5 tokens. Switcheo is certainly one of the most exciting projects which will run on the NEO blockchain.
Switcheo’s ICO has been one of the most successful so far. The testnet was available to use throughout the ICO whilst the mainnet was being finalised. The mainnet is now available and users can trade most NEP5 tokens with the trading pairs NEO, GAS and SWH tokens.
Because it’s ran on the NEO platform, NEO is the main trading pair, getting rid of the need as a pair for Bitcoin!
Why use Switcheo exchange?
The main benefit to using Switcheo is the fact it’s a decentralized exchange. As previously mentioned, decentralized exchanges are most secure due to the fact the users funds do not need to be held on the platform. Instead, the platform allows users to access their funds directly with their private key, the funds remain on the users own wallet which they control the private keys for so the exchange has no way of accessing these funds. This also means the funds are not stored anywhere but on the users wallet meaning that the exchange is far less susceptible to hackers.
Another decentralized exchange set to run on the NEO blockchain as an NEP5 token is the NEX project! They’re currently running their own ICO right now and don’t yet have a working product. See our review Switcheo v NEX!
In conclusion, we would argue that these are the 4 best cryptocurrency exchanges available at the moment.
We will keep you updated as things will inevitably change, with newer and better options constantly being launched and tested.