The Best Crypto Exchanges for 2021
Cryptocurrency is one of the most popular investments today. In fact, there are 380 cryptocurrency exchanges worldwide.
Bitcoin, Ethereum, and Litecoin occupy more than 40% of the crypto market alone and rank on top of the chart in market capitalization, indicating a very high daily trade volume.
While choosing a cryptocurrency exchange, you should consider its safety and security features, payment methods, trading and transaction fees, and many more similar factors.
In this article, we would look at each of these aspects to compare the six best cryptocurrency exchanges for 2021.
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The Best Cryptocurrency Exchanges for 2021
The purchase and sale of cryptocurrency is done on a crypto exchange. Here are the best cryptocurrency exchanges in the world.
Coinbase started its operations in 2012, with the intention of enabling anyone, anywhere, to easily and securely send and receive cryptocurrency.
Over the past decade, it has grown into one of the best crypto exchanges globally, with more than 56 million verified users, $335 billion in quarterly trade volume, and $223 billion worth of assets on the platform. Its services are available in more than 100 countries.
One of the most enticing aspects of purchasing Bitcoin through Coinbase is that you can conveniently buy, sell, send, receive, and store the digital asset without having to hold it yourself.
You do not need to go through the hassle of remembering and safeguarding your public and private key generated out of the transaction.
However, you can also leverage the secure Coinbase crypto wallet app to store all your cryptos, including Bitcoin, and trade them on decentralized exchanges to earn interest. Using the wallet does not even require you to have a Coinbase account. It protects your keys with a secure enclave, biometric authentication, and optional cloud backups.
Coinbase supports a wide range of payment methods, including bank account, debit card, wire transfer, or PayPal. Coinbase lowers the entry barrier for a high-priced asset like Bitcoin. By using Coinbase, you can buy Bitcoin partly, with as little as $25. Coinbase charges a spread of nearly 0.50% for cryptocurrency purchases and sales. It also charges a transaction fee ranging from $0.99* to $2.99*, depending on the amount of sale or purchase.*Rates current as of June 2021
Kraken, one of the top crypto exchanges globally, also started its journey to build a streamlined cryptocurrency exchange for newcomers and experts alike.
At Kraken, you can buy Bitcoin at one of the lowest fees in the industry. All you need to do is sign up for a Kraken account with your email address. Next, you need to verify your account by providing your name, date of birth, country, and phone number.
You can fund your account with crypto or fiat currency. Depositing crypto requires you to create a deposit address and send the funds there. You can also fund your account with fiat currencies using many ways, including SWIFT, SEPA, and domestic wire transfers.
Purchasing Bitcoin through Kraken comes with many added features and benefits, such as access to Kraken’s charting tools, 24-hour global client support, advance ordering, and leveraged trading.
To instantly buy, sell, or convert Bitcoin, on their website or via the Kraken app, the exchange charges a fixed trading fee of 1.5%*.*Rates current as of June 2021
A strong contender for the title of the best crypto trading platform, Binance offers instant transactions with its matching engine supporting up to 1,400,000 orders per second. It is also one of the most liquid crypto exchanges globally, with the largest possible trade volumes across diverse crypto pairs.
To buy Bitcoin, you can first buy stablecoins by wire transfer on Binance and then use these stablecoins to buy Bitcoin on the Binance exchange.
The exchange supports more than 150 cryptocurrencies, and you can exchange many of them for Bitcoin on Binance at some of the best possible rates. You can also purchase Bitcoin directly with your debit or credit card on Binance. It supports both Visa and MasterCard credit cards.
Once you have bought Bitcoin Binance, you can use it to store/hold your purchase, trade, send, spend, and donate. Binance Charity works towards improving the lives of the bottom billion and accepts Bitcoin as a payment. Depending on your 30-days trade volume in BTC, you can expect maker fees between 0.0200%* and 0.1000%* and taker fees between 0.0400%* and 0.1000%*.*Rates current as of June 2021
On Changelly, you can buy and exchange more than 150 cryptocurrencies, including Bitcoin. More than two million customers have shown their trust in the services of Changelly, which offers multiple exchange pairs between bitcoin, Ethereum, and Litecoin, including ETH-BTC, BTC-ETH, LTC-ETH, and LTC-BTC. While buying Bitcoin through Changelly, you can use any of the payment methods of Visa, Mastercard, Apple Pay, and Bank Transfer.
The Changelly mobile app is available for download on the Google Play Store, iOS app store, and APK Android. You can exchange your BTC trading pairs on Changelly at a fixed or floating rate. Apart from the exchange rate prevailing in the market, Changelly charges a service fee of 0.25%*.*Rates current as of June 2021
Founded in 2016, Bitbuy is one of the best cryptocurrency exchanges in Canada. Seven top crypto assets are available on Bitbuy, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Stellar, and EOS. To buy Bitcoin through Bitbuy, you need to sign up and get your KYC verified first. Next, you can deposit CAD to the exchange directly from your bank account. You can then choose to store Bitcoin on your exchange account or transfer it to a wallet.
Bitbuy has its one-click trading features for buyers new to the Bitcoin market and an advanced trading interface for professionals involved in the trade.
To keep users’ funds secure, Bitbuy has arranged for 1:1 insurance for Bitcoin balances through Knox Custody. It also keeps 95% of its funds in highly secure cold storage, which is the need of the hour in the face of rising hacking incidents in the crypto space.
Trading fees for Bitbuy are 0.10%* on limit trades, 0.20%* on a market order, and 0.20%* on buy and sell orders.*Rates current as of July 2021
With CoinSmart, you can conveniently buy Bitcoin with CAD and EUR. All you need to have a fully verified registered account with the exchange. Apart from Bitcoin, Coinsmart supports other major crypto assets, including ETH, LTC, XRP, BCH, XLM, EOS, USDT, and ADA.
The Coinsmart Smart Guarantee features ensure that deposits reach users’ accounts the same day the exchange receives them. It also processes fiat withdrawals within five business days. In terms of payment methods supported, Coinsmart accepts Interac, SEPA, Wire Transfers, E-Transfers, and cryptocurrencies as payment methods. The tracking features of the exchange help you keep a continuous tab on all your trading activities, deposits, and withdrawals.
Coinsmart charges trading fees of 0.20%* for a single trade and 0.30%* for double trades. Buying Bitcoin worth $1,000 would cost you a commission of $2*. Other than the trading fee, Coinsmart also charges a crypto withdrawal fee of 0.00025 BTC*, processed with immediate delivery.*Rates current as of June 2021
What is a Cryptocurrency Exchange?
Like any other trading exchange, a cryptocurrency exchange is a digital marketplace for traders to buy and sell crypto using fiat currencies or altcoins. It acts as an intermediary, matching buyers and sellers. If a trader opts for a market order, the exchange receives authorization to trade the coins for the best available price online on behalf of the trader. Setting a limit order implies that the trader has directed the exchange to trade coins for a predetermined price.
How Does a Cryptocurrency Exchange Work?
A crypto exchange can be centralized and decentralized.
In centralized exchanges, there sits an intermediary in the form of a central authority executing the trade on behalf of the user.
Decentralized exchanges, on the other hand, allow peer-to-peer trading without requiring any intermediary to facilitate the transactions.
How to Choose a Cryptocurrency Exchange
Choosing a Bitcoin exchange would depend on several factors, including the security it offers, the payment methods it supports, the fees one has to incur, the exchange pairs available, liquidity it has, amongst other factors.
Our Final ThoughtsWhile the security of funds is of utmost importance, it is also crucial to have the right type of payment support. As a new investor, you might prefer to opt for an exchange that supports fiat currencies, has an intuitive interface, and strong customer support team.
The exchanges that insure their user funds are safer to go with since it protects your funds from cyberattack and hacking vulnerabilities.
Frequently Asked Questions
Also known as a Cryptocurrency Exchange, a Digital Currency Exchange is a system facilitating cryptocurrency trading with other assets.
They work on the same principles that traditional exchanges do, except that on decentralized crypto exchanges peer-to-peer exchanges, which negate the scope of an intermediary.
The job of the exchange is primarily to create a connection between the market and the trader or between two traders. In exchange for their service, exchanges collect a transaction fee.
The legality of Bitcoin varies from one country to another. Even in the countries where Bitcoin is legal, it mostly comes under the purview of asset laws rather than currency laws.
The IRS in the United States has created a new tax form for taxpayers that requires you to declare whether you are engaged in any virtual currency transaction.
Since the crypto market is largely unregulated, Bitcoin holding does not require social security numbers or standard bank accounts in the US.
Like other cryptocurrencies, Bitcoin also witnesses higher levels of volatility than many other asset classes. Within the past year, the price of Bitcoin has gone up to more than $60,000 apiece from $10,000. Of late, its price has been hovering around $30,000. Such high volatility can lead to drastic changes in your accounts. At the same time, Bitcoin offers returns that hardly any other coin can match these days. Overall, it is a trade-off between volatility and above-average gains.