To compile this ranking of the best cryptocurrency exchanges, we considered the following factors:
- The security of the exchange
- The total number of cryptocurrencies available
- The modes of crypto investment offered
- The fees charged on the exchange
- Additional offerings such as staking
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Review
- eToro is a multi-asset broker that also acts as a crypto exchange
- eToro is regulated by numerous financial institutions, and the eToroX wallet is regulated in Gibraltar with license number FSC1333B
- At eToro, the fees on cryptos are fixed at 1 percent
- eToro also offers staking on ADA and TRX
- Cryptos on eToro are also offered as derivatives, making it possible to go either long or short at will
- Transferring cryptos out of eToro is complex and not very convenient due to fees and timing
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Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
- Coinbase offers its customers over 150 cryptocurrencies on its exchange
- Coinbase’s fees are 1% that drop to 0.05% as volume increases.
- Coinbase’s Staking service offer an APY of up to 5.75%.
- Coinbase offers a well-stocked educational section
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- Crytpo.com is an exchange founded in 2016 that offers over 250 cryptocurrencies
- At Crypto.com you can benefit from a reward system of up to 14.5%/year on cryptocurrencies and 8.5% on stablecoins
- With Crypto.com’s Visa card, you can get rewards on CRO up to 5% of the value of your portfolio.
- Crypto.com also offers derivatives and leveraged trading up to 1:50 depending on your country of residence.
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- Binance is one of the world’s largest exchanges with over 90 million registered users and a great academy
- On the Binance exchange you will be able to buy over 350 different cryptocurrencies
- Among the crypto instruments available you can find futures, options and even leveraged tokens
- Transaction fees on Binance are among the lowest on the market starting at 0.10%
- With Binance’s Visa card you can get cashback in BNB of up to 8%.
- Plus, with Binance Pay, you can spend and send over 50 selected cryptocurrencies at zero fees.
- On the Binance exchange you can set up automatic investments to manage crypto accumulation plans.
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- Young Platform is an exchange developed by an Italian startup
- Young Platform’s app is divided into two: one for beginners, one for pros.
- The Beginner section of Young Platform offers a wealth of educational content to learn the world of crypto with games and quizzes
- Answering quizzes correctly will earn YNG, the exchange token
- In the Pro section, on the other hand, you can buy and sell more than 70 cryptocurrencies
- The fees for buying and selling cryptocurrencies and crypto-fiat, are 0.4%
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- The Rock Trading is an Italian exchange for professionals based in Milan that has been operating since 2011
- TRT offers an OTC service specifically for clients who wish to make transactions with a volume greater than €100000
- TRT’s OTC service is a great solution to avoid liquidity, slippage and security issues.
- Less experienced traders can use the TRT Fastlane service, which speeds up and simplifies the purchase of cryptocurrencies
- TRT also offers the Hodler Plan, a service that makes it easy to create and manage cryptocurrency accumulation plans.
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- BitMEX was founded in 2016 and to date is a leading secure exchange and they claim to have suffered no cryptocurrency thefts as a result of intrusions or hacks
- The number of cryptocurrencies available on BitMEX is only 18, and they can also be traded with leverage
- Commissions on BitMEX vary based on trader volumes, and start at a taker-maker fee of 0.1%.
- Taker-maker fees can go as low as 0.03% for the taker, and 0.0% for the maker.
- Staking on BitMEX is available on Tether and Bitcoin with an APR of 2% and 1.25%, respectively
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- Kraken is a crypto exchange that offers over 110 cryptocurrencies to invest in
- Commissions on Kraken start at 0.9% for stablecoins, and 1.5% for cryptocurrencies.
- Cryptocurrencies on Kraken can also be traded on margin
- In addition, Kraken’s exchange makes crypto staking available at up to 23% annually
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- Gemini is a New York-based exchange that allows trading in over 100 cryptocurrencies
- The Gemini exchange is the first company to offer SOC 1 and SOC 2 security certificates to its customers
- Purchase fees on Gemini start at 1.49% for volumes over $200
- For customers residing in the U.S., Singapore and Hong Kong, Gemini offers interest on cryptos of up to 8.05%
- Customers can apply for a Gemini credit card that allows them to earn rewards of up to 3% on every purchase
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What is the role of cryptocurrency exchanges?
Cryptocurrency exchanges are companies that connect investors with the cryptocurrency market.
They are also responsible for:
- protect their clients’ crypto wallets
- protect the transactions that take place within the platform
- fight crypto scams
- combat money laundering.
ThiC is one of the reasons why cryptocurrency exchanges, in recent times, have begun to require documentation from their users to prove their identity.
Knowing the identity of the person behind the account is important as the exchange, in case of domestic and international investigations, can cooperate with authorities by cross-checking transactions to/from the suspicious account.
In addition, in case of suspicious transactions, it can take action itself by restricting access to the account.
Factors to consider when choosing a crypto exchange
The generally most important factors to consider when choosing a crypto exchange are the fees, the cryptocurrency offering, the investment modes offered, the mobile app, and finally the ability to stay up-to-date with a news section.
The fees charged, both when buying and selling cryptos and when transferring them, must be low.
An equally important factor is the number of cryptocurrencies available and the investment methods offered. Typically, most clients invest in the most popular cryptos, but this does not mean that other clients may be interested in lesser-known altcoins.
Likewise, having a good number of investment modes (derivatives, real cryptos, options, futures, etc.) is definitely a plus, as each investor can decide how to act in the market according to his or her preferences.
Monitoring one’s portfolio is important, which is why exchanges need to offer a mobile crypto platform where users can both monitor the performance of their investments and possibly buy, sell and transfer cryptocurrencies at any time.
In addition, the crypto market is constantly and rapidly evolving. For this reason, the best exchanges should also offer a news service that allows investors to seize opportunities and stay up-to-date.
Is it better to invest in real crypto or crypto CFDs?
Investing in real cryptocurrencies is definitely a better option if you aim to invest for the long term or use cryptos in real life. Conversely, to benefit from short-term volatility, CFDs are the best alternative.
Both of these methods in each case have pros and cons.
Real cryptos can be stored in a crypto wallet, then transferred and converted into other crypto tokens. These transactions cannot be done with cryptocurrencies in CFDs because they are derivative assets.
When investing in a real cryptocurrency, it is necessary to wait before the order is executed. This is because the market in which you are trading is the real market, so the exchange has to find another person willing to sell the cryptocurrency at the price decided by the buyer.
In contrast, the CFD market is virtually instantaneous because the trader is not trading on the cryptocurrency, but on the CFD, or cryptocurrency derivative instrument. Since it is a speculation-based market, it is also much easier for the exchange to manage and match orders.
Another pro of CFD trading is the ability to use leverage. Leverage typically ranges from 1:2 to 1:5 depending on the broker, and allows you to multiply your market exposure.
However, trading CFDs means exposing your investment to swap fees, which are micro-commissions charged every 24 hours (in the case of cryptos) if the position is not closed. This is the main reason why investing in crypto CFDs over the long term is not advisable.
How to open an account on a crypto exchange
To open an account on a cryptocurrency exchange, you need to create login details with an email and password, verify your identity, and deposit a minimum amount of money where required.
Depending on the user’s country of residence, however, exchanges may not apply identity verification (also called KYC procedure).
Identity verification generally involves providing the exchange with a set of documents and/or photographic evidence that allows the exchange to associate the account with certainty with an existing natural person.
Among the evidence to be provided, the exchange might make one or more of the following requests of the customer:
- Provide proof of identity (driver’s license, ID card, passport)
- Provide proof of address (utility bill, bank statement)
- Provide a selfie taken exactly as requested by the exchange
- Provide a video selfie
This verification is necessary because it allows exchanges to protect transactions to/from the customer’s account, as withdrawal or deposit requests will have to go only through the account holder.
Deposit is generally not required to open an account, however some exchanges may require it. Generally, this is never more than $100.
