Best cryptocurrency exchanges

If you’re a cryptocurrency novice, getting started buying and selling coins and tokens can be complicated and confusing. On the other hand, experienced traders may want a platform with special features like advanced charting and order types as well as the option to trade on margin.

If you’re a crypto-trading beginner, look for a platform with a simple and straightforward user interface that’s easy to understand from the beginning.

Can you deposit funds into your account via bank transfer, credit card and/or PayPal? The more payment options an exchange has, the more convenient it will generally be to use. Make sure your exchange has deposit and withdrawal options that work for you, and remember to check the fees associated with different methods.

First, consider the type of trades you want to place. There are exchanges available that offer the following :

• Fiat-to-crypto trading
• Crypto-to-crypto trading
• Both fiat-to-crypto and crypto-to-crypto trading

For example, if you want to buy BTC with GBP, you’ll need to find a cryptocurrency broker that allows you to buy coins via bank transfer or credit card. Alternatively, if you want to exchange your BTC or ETH holdings for another cryptocurrency, you’ll want a platform that offers direct crypto-to-crypto trades.

Consider which currencies you want to trade and which platforms list those currencies in one or more trading pairs:

• Cryptocurrencies. There are thousands of different digital currencies and crypto-assets in existence, so don’t expect to find them all listed on any single platform. Major cryptos like BTC, ETH, XRP and others in the top 20 coins by market cap are listed on an extensive range of exchanges, but rarer altcoins may be much harder to find.
• Fiat currencies. If you want to buy crypto with fiat currency, check which currencies the platform accepts.

From deposit through to trading and then withdrawing funds, how much will it cost you to buy and sell crypto on each platform from start to finish? Remember to consider your payment method, the currencies you want to use and any discounts you may be entitled to when completing these calculations.

Are there any limits on the amount you can deposit into your account or the amount of cryptocurrency you can buy or sell per transaction or per day? Also check whether there are any restrictions on how much you can withdraw from your account.

Remember, minimum and maximum limits may apply, so check the fine print to be sure the platform is a good fit for the size of trades you want to place.

How can you access your trading account? Many platforms offer web browser trading only, but some also offer mobile and even desktop trading apps. If trading on the go is important to you, it’s worth reading up on the user friendliness of the platform’s mobile app.

Is there any way you can access reduced trading fees? Are you entitled to fee discounts simply because you hold an exchange’s native currency or use those tokens to pay transaction fees? Is there a tiered fee structure that rewards high-volume traders with reduced fees?

Some crypto exchange loyalty programs will even offer additional benefits, such as access to exclusive events and even a share of the platform’s trading fee revenue, so this feature is well worth investigating.

There is no such thing as an official Bitcoin price – it’s determined by whatever people are willing to pay. Compare exchange rates across a handful of different crypto exchanges and you might be surprised to find just how much they can differ from one platform to the next. The variation can be as much as 10% in some cases, which can obviously make a big difference to the success of a trade.

The level of liquidity on an exchange affects the ease and speed with which you can complete trades. If there’s a high level of liquidity – in other words, if the exchange has a high trading volume – then trades should be completed quickly and easily.

One of the biggest benefits of trading on larger cryptocurrency exchanges is that they get enough orders to be able to match buyers and sellers without any difficulty. However, low liquidity can lead to substantial price fluctuations.

You can check crypto exchange trading volumes by looking at its order books prior to sign up.

If privacy is important to you when trading cryptocurrency, there are some platforms that allow you to transact anonymously. Of course, if it’s too easy to create an account and start trading, consider whether there’s anything to stop a platform from disappearing (hopefully not with your funds) overnight.

Many other platforms will require you to verify your account before allowing you to trade. This step is designed to ensure that the exchange meets its obligations under anti-money laundering and counter-terrorism financing (AML/CTF) regulations.

Verification requirements vary between exchanges, but you may need to provide some or all of the following:

• Your name
• Your email address and phone number
• Your address
• Proof of ID
• Proof of address
• A photo of yourself holding a signed declaration

If you need to provide a wide range of personal information, it’s important to be sure you’re dealing with a trusted exchange. It’s also a good idea to research how long you can expect the verification process to take.

Finally, be aware that some exchanges will require you to complete additional verification tasks in order to unlock full account features and higher transaction limits.

How long will it take for your transaction to be completed? How soon are account withdrawals processed?

Being forced to miss out on a trading opportunity because your trading funds took too long to arrive into your exchange account can be a frustrating experience. Spending day after day waiting for a withdrawal to arrive in your bank account or crypto wallet can also be extremely stressful, so check average processing times before you register.

Security is a crucial factor to consider when choosing a crypto exchange. History is littered with many famous examples of exchanges being hacked and unsuspecting users falling victim to theft and fraud, so make sure you do your research into what security measures are in place to protect your funds.

Questions you should ask include the following:

• Is 2-factor authentication supported?
• Are customer funds stored in online or offline wallets?
• Do I control my private key or does the exchange? If it’s the latter, where and how is my private key stored?
• What level of verification is required to open an account?
• Is there 24/7 security monitoring?
• Will you receive email and SMS alerts regarding account activity?
• Does the exchange use email encryption?
• Does the exchange provide proof of reserve?

Though authorities around the world are starting to catch up to the rapid growth of crypto exchanges, the industry as a whole is still lightly regulated. How an exchange is regulated depends on where it is based, so do your research to find out whatever information you can about the platform operators.

UK cryptocurrency exchange operators must be registered with the Financial Conduct Authority (FCA) and meet the government’s anti-money laundering and counter-terrorism financing compliance and reporting obligations.

It’s also worth noting that due to regulatory requirements, users from certain countries will not be allowed to access some exchanges. As always, check the fine print to find out whether any of these geographical restrictions apply to you.

This is a crucial but often overlooked factor when comparing crypto exchanges. If you ever have a problem with an individual transaction or with your account, how will you be able to access a platform’s customer support team?

You’ll need to consider the following:

• How can you contact customer support? Are they available through email, phone and live chat?
• Is there an online support centre where you can submit a support ticket?
• Is support available 24/7 or only during specific hours?
• How quickly does the support team respond to enquiries?
• If the exchange is based overseas in a country where English isn’t the first language, will you be able to access English-language support whenever you need?
• Does the site’s support centre feature answers to a range of frequently asked questions, and perhaps instructional guides and/or videos that explain how to trade?
• In short, does the platform have a good reputation for providing prompt and helpful support to users?

It’s also a good idea to consider how long an exchange has been operating before deciding which platform is right for you.