Last Updated on May 17, 2022 by Arty Fisher
How to pick the best place to buy crypto
There are many cryptocurrency exchanges on the market. Some of them are shady, and some of them are great. In this guide, we will go over how to pick the best cryptocurrency exchange for you.
A cryptocurrency exchange is a marketplace where traders can buy and sell digital tokens. These tokens represent either a currency or a specific asset. The most common cryptocurrencies traded today are Bitcoin and Ethereum, but others include Litecoin, Ripple and Monero.
Our picks for the best crypto exchanges
- eToro – A social trading platform
- Crypto.com – A secure easy to use platform
- Coinbase – Good for beginners
While the cryptocurrency exchange business is all about making money, which is at the heart of any commercial activity, it is also about trust. Establishing trust is not a simple task and takes time, which is why it is important to have a look at the background of the company or individual behind an exchange before depositing your hard worked-for cash. The best cryptocurrency exchanges are secure, trustworthy and have good customer service record.
Unlike fiat currency markets (i.e., the US dollar or Euro), cryptocurrency exchanges aren’t centralized entities in which people trade using government-issued money. Instead, they match buyers and sellers online, through an order book, where the transaction is made when both parties agree on a price for an asset. These assets are typically virtual coins or tokens that represent a certain value in real-world terms (like gold or silver).
There are many cryptocurrency exchanges available but not all of them are a perfect fit for everyone. These are some factors that should be considered before choosing an exchange.
The best cryptocurrency exchanges have legal status in their respective countries. The most common type of regulation is registration as a Money Services Business with FinCEN or with other national financial authorities.
2) Licensing Requirements
Each country has different laws governing cryptocurrency exchanges. Some countries require licensing and some do not, but you should check whether there are any specific regulations for your country and whether your preferred exchange complies with such rules. In addition to registration and licensing, the best cryptocurrency exchanges will comply with local AML/KYC laws.
3) Transaction Limits
If you want to buy large amounts of altcoins or trade frequently on an exchange, then choose one that has no caps.
Options for Trading
When it comes to trading, there are many different exchanges that you can use. Some of the more popular ones are Coinbase, Swyftx, Binance and crypto.com. Each one of these exchanges has their own pros and cons. In order to pick the best cryptocurrency exchange for yourself, you need to know what each one offers.
The first thing you want to know is how safe the website is and how long it has been in business. You also want to look at the fees that they charge as well as how fast they are at processing transactions and especially how long it takes for withdrawals.
Another thing that is important is how many cryptocurrencies the exchange supports. This list includes Ethereum, Litecoin, Monero, and others. If they only support a few or none at all this might not be the exchange for you. You also want to look at what currencies can be converted into other currencies so it will be easier for you when you decide to convert your coins to fiat currency or use them for some other purpose such as sending money back home to your family or paying your bills online with them.
The last thing you want is for an exchange to limit the number of coins that you can purchase.
Disclaimer: Cryptocurrencies are highly speculative, complex and involve a lot of risks – they are highly volatile and sensitive to outside activity. Their performance is very unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. The author may have holdings in any of the cryptocurrencies discussed.