The Best Fiat-to-Crypto Exchanges for 2021
Let us assume you are a newly initiated trader in the world of cryptocurrencies and that you want to buy some crypto assets with the excess cash you have.
In another scenario, you might contemplate shifting to a new cryptocurrency exchange and want to buy some coins with your money to test its service. Which crypto exchange would you choose?
There are many options, but in this Wealth Rocket guide to the best fiat-to-crypto exchanges, we help you to locate some of the best ones.
Table of Contents
The Best Exchanges for Fiat-to-Crypto
There are several fiat-to-crypto exchanges available. We've listed four excellent choices for cryptocurrency exchanges below.
Frequently positioned as the most convenient crypto exchange to trade digital assets, Coinbase has more than 56 million users.
The Coinbase trading platform is available in more than 100 countries. It registers as high a quarterly trading volume as $335B. As an avenue to buy and sell cryptocurrency, Coinbase comes with several added benefits.
Coinbase helps manage your portfolio, schedule your recurring purchases, and protect your vaults. It helps you trade on the go with the Coinbase application. The significant majority of Coinbase user funds stay in secure offline storage, safeguarded by its insurance policy.
The Coinbase app is available on iOS and Android, or through the Coinbase website. It helps users who want to trade with US dollars or the local fiat currencies.
One of the enticing aspects of the Coinbase wallet app is that you can leverage it to store or custody your crypto and explore the decentralized web with a dApp browser without necessarily having a Coinbase account or Wallet app.
It is non-custodial in service and can manage your private keys without storing your assets in a centralized brokerage or exchange. You can also store them directly on your device.
To buy or sell digital assets, add cash, or perform withdrawals, you can leverage any of the following methods in the US, including bank transfers, debit cards, wire transfers, or PayPal.
Binance is the world’s largest crypto exchange. Its crypto trading service is available against a wide range of fiat currency varieties.
To buy crypto through Binance, the fiat money options you get include USD, EUR, RUB, VND, TYR, MYR, THB, and many more.
In terms of payment methods, you can pay using Visa or Mastercard credit cards or debit cards.
The peer-to-peer trading facilities allow more than 100 payment options, apart from bank transfers. Moreover, third-party payment options are also available through payment services like Simplex, Banxa, or Paxos.
In terms of corresponding crypto assets that you can buy with your fiat, you get all the well-known, high-growth, and trending digital assets in Binance. The list includes Bitcoin, Ethereum, Cardano ADA, Dogecoin, Matic, BNB, XRP, DOT, LINK, and more.
In terms of convenience and ease of use, the services of Binance are unmatched.
You can download the Binance app from the iOS app store, Google Play Store, and the Binance website by scanning a simple QR code.
It also has its Android APK and supports API functionality, and it is compatible with operating systems, such as macOS, Windows, Linux.
eToro is a global leader in social trading with millions of users for smart investing in multiple types of assets, including stocks and ETFs, cryptocurrencies, and CFD.
The platform supports 104 crypto assets, including Bitcoin, Ethereum, Bitcoin Cash, XRP, Dash, Litecoin, and many more.
One of the most enticing features of eToro is its CopyTrader technology. It is a trademarked technology through which users can copy the best trading strategies of leading traders. The 50 most copied traders active in eToro offer 83.7% average annual profit.
With eToro, it is easy to buy Bitcoin online. All you need to do is deposit fiat funds in your account and use that fiat to purchase Bitcoin.
You can deposit fiat currencies with online banking, credit or debit card, eToro money crypto wallet, wire transfer, or other services like Giropay, Rapid Transfer, iDEAL or Trustly.
In terms of payment avenues, eToro supports Visa, MasterCard, Diners Club International, PayPal, Skrill, Neteller, UnionPay, WebMoney, and Yandex.
eToro is one of the most trustworthy and credible cryptocurrency exchanges. It comes under FCA and CySec regulations. Industry-leading protocols look after to protect funds, and the platform does not share user data without permission.
It gives you all the tools and innovative social features you need to store, transfer and manage your crypto assets, all in one account.
One of the pioneers in the world of cryptocurrency exchanges, CEX is a trusted and secure Bitcoin exchange.
However, you can buy several other cryptocurrencies through CEX, including Ethereum, USDT, Binance Coin, Cardano ADA, and more.
Coming to the exchange’s fiat to crypto capabilities, you can leverage a wide range of fiat currencies, including USD, EUR, GBP, and RUB, to buy Bitcoin, Ethereum, Bitcoin Cash, Dash, and more.
You can also buy using a debit or credit card. The exchange accepts both VISA and Mastercard. It is PCI DSS compliant as well.
CEX also supports various payment methods, including bank transfers (SWIFT, SEPA, ACH, Faster Payments) and cryptocurrencies. The exchange maintains high standards of protection against DDoS attacks.
The platform has reasonable fees for takers and makers with special conditions for high-volume traders.
CEX holds funds in cold storage. It also has several advanced order execution features, including high-end order matching algorithms, high-liquidity order book.
With these tools and features, CEX creates a highly conducive atmosphere for market making, high-frequency trading, and scalping.
To facilitate automated trading, customized as per the needs of the individuals and institutions, CEX comes with a range of API solutions, such as WebSocket, REST API, and FIX API.
What is a Fiat-to-Crypto Exchange?
As the name suggests, A fiat-to-crypto exchange is a trading platform where you can convert cash or fiat currencies into digital coins.
Fiat currencies are the national currencies, such as the United States Dollar (USD), the British Pound Sterling (GBP), the Euro (EUR), the Australian Dollar (AUD), the Canadian Dollar (CAD), and more.
How Does a Fiat-to-Crypto Exchange Work?
Fiat-to-crypto exchanges work the same way a regular marketplace transaction works.
After choosing the exchange, you can either connect your wallet to the exchange or select the built-in wallet of the exchange.
Next, you'll need to fund the wallet with the fiat currency of your choice. You can choose your local currency or any other international fiat currency of your choosing.
To fund your account, you can choose any of the fund transfer methods your portal can facilitate, which typically include bank transfers, wire transfers, debit or credit cards, or any other third-party payment processing service.
Finally, you can choose the appropriate amount of fiat currency on the exchange. It will show the equivalent amount of digital currency that you are eligible to get in return.
If you are satisfied with the exchange rate and agree to the purchase, the system completes the transaction by sending you the amount to your wallet.
How to Choose a Fiat-to-Crypto Exchange
There are several factors to consider. The exchange should support the fiat currency you have. Next, it should be compatible with at least one of the fund transfer methods you would use.
Once these two criteria match, you should look at its credibility in the market, its trustworthiness, security features, and customer support services.
Our Final Thoughts
The basic factor for selection is compatibility. The exchange should mandatorily support your payment method and your fiat currency.
But, at the same time, it is also vital to study the convenience and security the exchange has to offer.
Go through the compliance features of the platforms, the security standards they adhere to, and the storage specifications.
It is best to study the best fiat-crypto exchange reviews to get an all-encompassing overview of each.
Frequently Asked Questions
A fiat currency is the most popular form of money in the world. Fiat currencies are issued by a country's government and do not have the backing of a physical commodity, such as gold or silver. The government itself is the backer of fiat currency, and its value stems from the economics of supply and demand.
There are several other macro and micro-economic factors that control or decide the value of a fiat currency. The stability of the government, the international financial situation, the oil prices; all these factors have their bearings on the price of a fiat currency.
It varies from exchange to exchange. To trade cryptocurrencies with fiat currencies, you would have to incur deposit and withdrawal fees depending on the payment method. However, not all cryptocurrencies are usually available for direct purchase through fiat.
In these cases, you need to first purchase a popular crypto asset, such as Bitcoin, through your fiat. You can then use Bitcoin to buy other digital coins from the exchange.
The rate of conversion fee for a bank account or USD wallet as a payment mode is 1.49% in Coinbase. The price of the asset you can see from the asset list of the exchange, and you also get to know beforehand how many digital coins you would get for a certain amount of fiat money.
The time it takes to convert your fiat to crypto would depend on the exchange you have chosen.
For instance, it takes only a few minutes in Coinbase to create an account, link your bank account to it, and start buying and selling.
On the other hand, eToro may take up to five business days to process the coin transfer request. Hence, the time it takes to convert fiat currency to crypto depends on the crypto exchange you choose.