The Best Bitcoin Exchanges for 2022
When it comes to the exciting world of cryptocurrency, one name that strikes an immediate chord with investors, enthusiasts, retail traders, and large institutional fund managers is Bitcoin, a currency occupying 45% of the crypto market as I write this article.
There are nearly 11,000 crypto assets in the market. More than 381 exchanges are engaged in facilitating the trade of these assets. Still, Bitcoin rules the popular imagination of cryptocurrencies.
The selection of the best Bitcoin exchanges depends on a wide array of variables. An exchange must be secure and have insurance coverage for its users’ funds.
Crypto exchanges need to be seamless and hassle-free. They must also have a vast range of popular crypto pairs and must support the payment methods that a large volume of users are comfortable using.
Does the presence of so many parameters make the selection confusing? The answer is yes, it might.
In this article, we clear the confusion and present you with information that would help make an informed choice on the best cryptocurrency exchanges for Bitcoin trading. We’ll also show you how to buy Bitcoin and where to buy Bitcoin.
Table of Contents
The Best Cryptocurrency Exchanges for Bitcoin in 2022
If you're looking to purchase Bitcoin, you'll have to do it through a cryptocurrency exchange that facilitates the sale and purchase of Bitcoin.
Learn more about the best cryptocurrency exchanges for Bitcoin below.
Binance, often positioned as the world’s largest crypto exchange, is one of the most popular trading platforms when dealing with Bitcoin. Not exclusive to just trading, Binance also allows you to store and hold, send, and even spend Bitcoin as a medium of exchange. You can even choose to donate Bitcoin to Binance Charity.
To buy Bitcoin with a bank transfer, all you need to do is buy stablecoins listed on Binance by wiring money to the providers of these coins. You can now leverage these stablecoins to buy Bitcoin on the exchange.
Additionally, you can purchase Bitcoin directly with your credit card on Binance. Binance supports both debit and credit cards, including Visa and MasterCard.
Binance exchange is compatible with more than 150 cryptocurrencies, which includes Bitcoin, Ethereum, and Litecoin.
While Binance supports the deposits of the currencies, you can exchange them for Bitcoin at some of the most competitive rates in the market.
Among its operational advantages, Binance has the best-in-class matching engine that can support up to 1.4 million orders per second.
Its multi-tier, multi-cluster architecture ensures security for the system, the Secure Assets Fund for Users (SAFU) protects the user’s account.
You can download the Binance mobile app from the iOS app store, Google Play Store, and the Binance website by scanning a QR Code.
Without Binance’s native BNB coins, each Bitcoin trade on Binance carries a standard fee of 0.1%*. With BNB, the user gets a trading fee discount.*Rates current as of July 2021
Kraken is one of the most inclusive exchanges in the global crypto market. You can buy more than 50 varieties of crypto-assets through Kraken and start trading with as little as $10.
To buy BTC on Kraken, you'll need to sign up for a Kraken account. You can complete the sign-up process by providing little information.
Once you verify your account, the next step is to deposit fiat or cryptocurrency to your account. For the use of fiat currencies, such as USD or Euro, you might need to provide additional supporting documents verifying your identity.
In Kraken, you can deposit both fiat or cryptocurrency. For depositing crypto, all you require is a crypto deposit address, while funding through fiat can is done through SWIFT, SEPA, and domestic wire transfers.
Kraken has a 24/7 support system, with both live chat and a robust support library, resolving more than 4 million issues to date.
Another area where Kraken stands out from the rest is its security features, with 95% of Kraken deposits kept offline.
It keeps its servers in secure cages. Armed guards and video monitors keep it under surveillance 24/7.
To ensure information security, Kraken keeps all its sensitive account information encrypted at both the system and data level.
Adding to all these features is Kraken’s Penetration Testing team that checks the system’s robustness for every attack vector possible.
Kraken charges a fee on each successful order execution. Fees currently range from 0%* to 0.26%* of the total value of the order.*Rates current as of July 2021
Coinbase’s reputation as a Bitcoin exchange generates from gaining trust from securely handling millions of users over time.
Coinbase has more than 56 million verified users, and its support system spreads to more than 100 countries. It has registered US$335 billion in quarterly trading volume.
The Coinbase app is available for both Android and iOS. While it's easy to buy Bitcoin with the app on the go, the app also helps in portfolio management and keeping track of all your trades in one place.
You can schedule your buys overtime on daily, weekly, and monthly terms. To ensure a high level of security, Coinbase keeps your funds in a vault that allows time-delayed withdrawals.
Most of the Coinbase assets stay in secure offline storage, protected by its insurance policy. Coinbase allows a wide array of payment methods for US customers, including bank account transfers, debit cards, wire transfers, and PayPal.
On buy and sell transactions, Coinbase charges a fee between $0.99* and $2.99*, depending on the total transaction amount.*Rates are current as of July 2021
4. Huobi Global
One of the global leaders in crypto trading, Huobi Global facilitates crypto trade in more than 370 cryptocurrencies. The Huobi app is available on both the iOS app store and Google Play store.
With the app, you can deposit, withdraw, and trade Bitcoin 24/7. There are several trading facilities through the Huobi app. For instance, you can trade with up to 5x leverage for spot trading.
You can buy your Bitcoin with a credit card. Huobi keeps its funds in dedicated multi-signature cold crypto wallets that remain under 24/7 security surveillance. It also has a dedicated 20,000 BTC security reserve fund.
Signing up for Huobi global is easy. You can create an account with your email, or you can choose to log in with a Facebook, Apple, or Google account.
Huobi accepts Visa and Mastercard in more than 150 countries. It also allows Apple Pay, iDEAL, Faster Payments, SEPA/ Sofort-Klarna, Interac, and several other payment methods, depending on the geography of trade.
Huobi charges 0.0001 BTC* as its withdrawal fee, while the maker and taker fees are both 20%*.*Rates current as of July 2021
What is a Bitcoin Exchange?
Like any other cryptocurrency trading platform, a Bitcoin exchange is a digital marketplace for traders to buy and sell Bitcoins, either in exchange for fiat currencies or for altcoins that are nothing but a generic name for crypto coins other than Bitcoin. As an intermediate online platform, a Bitcoin exchange facilitates the trade between a seller and a buyer.
How to Use a Bitcoin Exchange
The primary use of a Bitcoin exchange is to buy and sell Bitcoin. Apart from that, you can also use the exchange as storage of your assets, you can use it to send Bitcoin from one address to another. You can leverage it to make payments as well. Exchanges like Binance even allow you to donate your assets.
Our Final Thoughts
Your selection for the best Bitcoin exchanges will vary on your personal preferences as well as the operational robustness of the platform.
You can choose a platform that accepts your payment method and charges fees that you feel are justified. But, at the same time, the platform should be secure, funds should have insurance protection, and processing time should be optimal.
Frequently Asked Questions
You can see Bitcoin as an asset that you can hold or store for as long as you want. You can allow its price to rise, and then you can sell it for a margin. The same as you do for other assets, such as gold or real estate.
At the same time, there are digital marketplaces from where you can buy goods in exchange for Bitcoin. Here, the function of Bitcoin is that of a currency. However, some experts do not consider Bitcoin a currency as it is not a stable store of value and experiences high price swings and volatility.
Yes, as per the prevailing regulatory strictures, Bitcoin is legal in the US, Japan, the UK, and many other developed countries. The Internal Revenue Service (IRS) in the US has issued guidelines for virtual currencies. It asks the US taxpayers to declare their engagement in virtual currency transactions if any.
Since Bitcoin exists in a deregulated marketplace, there is no centralized issuing authority. It also does not require holders to declare their SSNs or standard bank account details.
It depends on your risk perception. While it is true that it witnesses high price swings and volatility, it also gives returns like no other asset.
If you look at the price chart of Bitcoin, it was worth a little above $5,000 during mid-March 2020.
It reached more than $63,000 in mid-April 2021. Hardly any other asset could give you such astounding returns within a year. But, since then, Bitcoin prices have tanked massively, hovering around $33,000 as of July 2021. Still, it is up to you to decide if the risk is worth the reward.