Best Bitcoin Exchanges to Buy & Trade Bitcoin in 2021 - Safetrading
The best Bitcoin exchange is an online cryptocurrency platform that allows trading, exchanging, holding, sending and receiving cryptocurrency, including Bitcoin. There are different types of Bitcoin exchange websites depending on the level of user’s expertise and preferences.
Top Bitcoin Exchanges 2021:
- Coinbase Pro
- Binance
- BitMEX
- OKEx
- Kraken
- Huobi
- Bitfinex
- Bittrex
- Bitstamp
- KuCoin
Since 2017, cryptocurrency has attracted more and more attention and, accordingly, investments. In addition to profit, traders will face many problems, unfortunately. And most of these problems arise exactly at the moment when newbies are trying to choose a good exchange for trading Bitcoin and register on it.
The market today offers hundreds of exchanges, many of which, in addition to all the problems and difficulties in choosing, are scammers who are just waiting for your registration and deposit in order to withdraw money for themselves later.
Scared?
Not sure how to avoid all these problems?
Today we will talk with you about the main functions of bitcoin exchanges, the risks associated with them, and so on. In addition, we will give you some tips for successful and, most importantly,
safe cryptocurrency trading.
Let’s go!
Types of Bitcoin Exchanges
Before getting to the point let us remind you that you are reading the best Bitcoin exchange guide no matter what your level of expertise is.
So make yourself comfortable and don’t forget to take notes.
We have already discussed that Bitcoin exchange is a platform, where users trade and exchange digital currencies on each other or on regular currencies like Dollars, Euros, Rubles or Yuan.
Along with mining, Bitcoin exchanges are considered one of the tools for obtaining cryptocurrency.
BTC exchange can be called an analog of a trading platform such as Forex. By investing real money every participant can conduct operations on analyzing rates, receive
BTC signals, as well as convert and buy Bitcoin (or other virtual currencies) on real money.
Every novice miner willing to try his hand at this type of earnings can turn to a huge list of crypto exchanges.
I want to immediately explain that today we will talk specifically about bitcoin exchanges that allow you to exchange, store and trade bitcoin. If you are interested in exchangers that will help you buy bitcoin in different ways, then
this article should help you.
Why Do Traders Need Bitcoin Exchanges?
Many traders start trading on exchanges after the advice of their acquaintances or after seeing advertisements on the Internet.
Many people come to our platform and say that they want to make money quickly with $100 in their account.
The first thing you need to understand is that
Bitcoin trading is a serious thing, and in no case should it be treated as easy money.
Now let's talk about how Bitcoin exchanges can help you make money. The best Bitcoin exchange function is selling currency pairs, which will bring traders outstanding profits.
When analyzing the best Bitcoin exchange activity, it is possible to distinguish two directions – trading and exchanging. Those who are willing to obtain crypto money at a beneficial rate should definitely turn to a crypto exchange.
There are also traders, who keep their assets on exchanges using them as a wallet.
However, experts don’t recommend such a strategy because exchanges sometimes end up as scams.
To make good money on a Bitcoin exchange platform there is no need to know everything about these websites. You can make a fortune by speculating and many users, who started with investing a few dollars, have already earned millions!
To understand that there is only one step between you and extreme profits it is enough to follow how rapidly the cryptocurrency rates change on a daily basis. Due to a high volatility level, cryptocurrency can be used as a speculative instrument, which allows maximizing profits.
Exchange trading can definitely help you to hit the jackpot. For example, within a year stocks may increase by an average of 30% and it is considered a huge profit.
But let’s take crypto for comparison: during 2013 it has increased in price by more than 10,000%.
No wonder that such a market situation attracts huge investments, which only heat the interest in virtual currencies.
A BTC exchange allows trading and earning.
And the best part is that trading on the best Bitcoin exchange is similar to the exchange processes.
By the way, this is one of the main differences of a crypto exchange from a Forex market, where the broker can assign stock quotes.
If to speak about Forex exchanges, you should know that they are formed artificially, while a Bitcoin exchange list differs by a single price and can conduct trade even with the minimum difference, which occurred as a result of its placement on a certain trading resource.
But how is it possible to choose the best Bitcoin exchange?
What features to consider?
We are happy to introduce you to the most secure BTC exchange websites on the global market.
When talking about a Bitcoin exchange the issues of storage and custody take a place.
This concerns the storage of user’s personal information including private keys and transaction history by a balance sheet, not through blockchain technology.
On the other hand, there are non-custodial services, which means that a Bitcoin exchange platform doesn’t require customers creating a personal account. Such platforms don’t hold users’ assets on a balance sheet.
The approach means that there is an additional security layer involved together with better anonymity and protection.
Such services are able to make transactions automatic.
Centralized VS Decentralized Exchanges
This is perhaps the most difficult moment, and it is he who causes the most questions from users. We offer you a comparative characteristic that clearly and honestly shows you the differences and similarities between centralized and decentralized services.
Trading Volume
Centralized exchanges have bigger trading volume when compared to decentralized ones. According to experts, around 99% of trades still take place on centralized exchanges.
Speaking about decentralized services, we want to mention that they have a lower trading volume because of the limited functionality and complexity in use.
Liquidity
Here we see the same thing - the liquidity on centralized exchanges is higher than on decentralized ones.
Crypto/Fiat Exchange
Here centralized exchanges also win. Several CEX allow exchanging crypto to fiat and vice versa, and DEX allow only crypto-to-crypto exchange, which is rather inconvenient now.
Options for Direct Fiat Payments
The majority of CEXs accept credit and debit cards, and direct bank transfers for fiat payments, and DEXs accept only crypto payments.
Protection from Attacks
Over the past 10 years, CEXs including Coincheck, MTGox, and BitGrail have undergone over 30 hacks. And DEXs, because of the distributed nodes, have lower chances to be hacked.
Risk of Service, Software or Network Lay-Up
With CEXs, everything depends on the platform and its infrastructure, while DEXs have almost no risks because of the same distributed nodes.
Risk of Being Closed By The Government
Some time ago, countries like Russia, South Korea and China have banned CEXs, so they, for sure, have higher chances to be closed by different governments. On the contrary, DEXs are hosting worldwide that is why governments can’t interfere in their activities.
Privacy Level
CEXs have limited privacy and the risk of identity theft increases because users need to provide a wide range of sensitive data including bank details, home addresses, and ID. DEXs do not require these details, that is why their privacy and anonymity levels are higher.
Functionality
Multiple CEXs offer a range of functions: margin trading, high-volume trade discounts, tools for institutional trading, currency pair trading, charts on financial data, and lending. In the situation with DEXs, there are limitations in the order type (the absence of stop-loss and limit orders) and low coin breadth.
Popularity
CEXs are rather popular due to their friendly interface and ease of use. DEXs, on the contrary, have a very complicated interface and are not easy for beginners to use, that is why they are less popular among the traders.
Validity and Regulations
The majority of CEXs possess necessary licenses and are regulated by the governments, and DEXs are distributed, so regulators and authorities can’t regulate or interfere in their activities.
Transparency
Most CEXs provide all the important information of servers and offices, and DEXs do not have a formal location.
Account Insurance
Many CEXs insure user accounts, so if something goes wrong, you will get your money back. With DEXs, the accounts do not have insurance.
Additional Features
Multiple CEXs start providing different financial services like
digital crypto wallets, banking, and crypto-debit cards. Thus, users may buy goods and services from online shops using their crypto. DEXs usually do not have additional services to offer their users.
Transactions Period
Both types of Bitcoin exchanges have different transaction processing periods which depends on the particular exchange.
As you see from the centralized and decentralized Bitcoin exchange comparisons above, it is rather difficult to choose one because each of them has both drawbacks and flaws.
While CEXs have better functionality, it is important to remember that the cryptocurrency market was created due to the appearance of blockchain technology.
To choose the best Bitcoin exchange UK you should first understand your goals and be aware of your expertise level.
How to Choose the Best Bitcoin Exchange?
Choosing the best and safest Bitcoin exchange is the same as choosing a provider – before entrusting side platforms with your money, it’s important to learn everything about it.
Below we have made a full list of the features that should be taken into account when choosing the best Bitcoin exchange 2021:
Reputation
The simplest way to learn more about the best cryptocurrency exchange 2021 is to read reviews of individuals and reputable websites.
The main thing here is to pay attention not only to the processing speed of transactions, commissions, features and quality of support, but also to cases of exchange hacking. It is clear that it is impossible to 100% insure yourself against hacking, but it is important to find out how quickly the Bitcoin exchange solves these situations and how it deals with clients whose money has been stolen.
It is also a good idea to ask questions on Reddit and BitcoinTalk.
Fees
Almost every Bitcoin exchange provides users with the necessary details on the fees.
So before signing up make sure you are ok with the offered fees for depositing, withdrawing, and making a transaction.
The fees of various exchanges may greatly differ.
Basically, all exchanges have fairly average fees, however there are some that are already high, which means that you can only lose a good chunk of your money on fees. Therefore, check all this in advance so as not to be surprised later.
Payment Methods
Is it possible to pay via a debit and credit card
Does the Bitcoin exchange platform accept PayPal and direct wire transfers?
Exchanges with a limited list of payment options may be rather inconvenient. Usually, most of of exchanges aloow users to
buy BTC with PayPal.
Remember that when using debit and credit cards identity verification is compulsory, which means higher prices and fees, and risks of stealing your personal information.
Wire transfers may also be inconvenient because they take lots of time.
Verification
Most of the Bitcoin exchange websites require identity verification for making deposits or withdrawals.
However, some exchanges may let you stay anonymous.
But even though verification may seem time-consuming, it protects the platform from money laundering and scam, which is beneficial for both sides.
Be sure to check what documents you will need for verification and how long it takes. Maybe the Bitcoin exchange requires some kind of document or information that you do not want to give. So you need to find out everything in advance so that you do not waste time without the end result.
Geographical Limitations
There may be certain Bitcoin exchange functions that are available only in particular countries.
So before joining make sure that the chosen exchange allows accessing all the tools and functions from the country you are living in.
Bitcoin Exchange Rates
The best Bitcoin exchange 2021 is often the one, which has better rates. Just imagine: there are platforms, which charge up to 10%! So if you spend some time looking for the best Bitcoin exchange rates you may save lots of money.
Problems With Bitcoin Exchanges Work
What is the best Bitcoin exchange USA
How to protect assets and to trade without any fears
Unfortunately, platforms are not immune to hacker attacks and problems, so when choosing an exchange, traders need to be aware of the issues they may face.
Here are the most common problems when dealing with an exchange:
- Security issues – 40%;
- High trading fees – 37%;
- Low liquidity – 36%;
- Weak customer support – 33%;
- Limited crypto pairs – 22%;
- Low-quality user interface – 21%;
- High withdrawal fees – 18%.
The Bitcoin exchange statistics above were provided by
Statista and collected in the beginning of 2021.
The percentage means how many respondents have called the problem when asked about crypto exchanges work.
For example, 40% of traders said that exchanges have problems with security and 22% - with a number of crypto pairs.
Trading Advice - How To Use Bitcoin Exchanges?
Many newbies, completing their registration on the exchange, are lost, because no matter how simple the Bitcoin exchange would be, it is always something new. That is why we decided to give you some tips for the correct use of exchanges and, accordingly, your money.
1. Choose the trading strategy.
It is easy to guess that trade is divided into three main types - short-term, med-term and long-term.
What is the easiest type for a beginner?
Many people mistakenly think that long-term trading, or rather investment, is the easiest one - just invested money and forgot about it for several years. I must say that this type of trading is a big risk, since you are investing a large amount of money in a certain cryptocurrency, and you have no guarantees that this investment will pay off. You should always follow the rates in order to withdraw money on time without losing most of them.
We believe that short-term trading is ideal for beginners, as it will allow you to get practice, as well as form a list of cryptocurrencies with good volume and potential.
2. Find the best Bitcoin exchange.
Okay, we think it is not important to discuss everything one more time here because our article is about the best Bitcoin exchanges, actually. Also, a bit later we will show you the list of 10 best Bitcoin exchanges.
By the way, many people think that it is not at all necessary to create your own personal and secure cryptocurrency wallet.
Why, if there is an exchange that can also store cryptocurrency safely?
This is a misconception.
The point is that exchanges are generally custodial services, which means that they store your private keys on their servers. So, as soon as hackers break into these servers, they will immediately get access to your money.
This is why it is very important to have a cold storage wallet or hardware wallet that can store cryptocurrencies that are not used in trading.
4. Explore the main tools on the exchanges.
Trading on a Bitcoin exchange is an art that requires good intuition, knowledge of technical and fundamental analysis. It is important for the participant to understand the principles of cryptocurrency trading and feel the market.
Charts are the main visual indicator of the rate movement that a trader is guided by. For this instrument, a market participant sees a change in the value of one cryptocurrency relative to other money (virtual or fiat).
Support and Resistance are lines that limit price movement at the bottom (support) and at the top (resistance). As a rule, the price is in this range, but it can break through the indicated levels, after which the rate continues to move in the same direction or reverses. The movement of the lines (the level of their slope) determines the current trend - the price trend (up or down).
Trades history is the parameter that can be used to see the trading volumes on the Bitcoin exchange relative to the pair you are interested in. Studying this information allows a trader to determine the interest of market participants in a particular asset.
Trading volume is the parameter that shows the volume of crypto coins transferred from one group of traders to other participants. Knowing the volume of trade allows you to decide whether to place an order or to wait.
5. Explore the main exchange terms.
Once you pick the Bitcoin exchange of your dreams and visit its website, you are confronted with a bunch of unknown terms that you absolutely need to know. Therefore, now we will quickly go through the main words and their meanings.
Altcoin is a common name for all cryptocurrencies offered as an alternative to Bitcoin.
Block is a list of verified transactions, which is added to the blockchain as a result of mining. It is the basic element of the blockchain structure.
Volatility is a change in price movements over time for traded financial assets (including cryptocurrencies).
Token is a digital asset issued with the aim of attracting investment in a cryptocurrency project or company. A kind of cryptocurrency, but its properties are closer to stocks or bonds.
Transaction is money transfer between two addresses.
Bulls is an exchange term for traders who buy cryptocurrencies, increasing their value.
Bottom is the lowest value of a digital asset for a certain period. After reaching the bottom, the growth of the cryptocurrency rate begins.
2FA (Two-factor authentication) is a security system that guarantees that attackers cannot access your account even if they can find out or guess the password.
Whale is a major player capable of influencing a significant change in the cryptocurrency rate.
Liquidity is an indicator of how quickly a digital asset can be sold at its current market value.
Bears a term in crypto trading that means traders who sell cryptocurrency, lowering its rate.
Market Order is an exchange order for the purchase / sale of cryptocurrency at the current market price.
Spread represents the distance, expressed in currency, between the best selling and buying prices of a digital asset.
Trend is the direction in which the Bitcoin exchange rate of the currency moves. It can be bearish, bullish or sideways.
Smart Contracts is the expansion of blockchain technology. It makes it possible to use cryptocurrencies as a kind of shares, or any other material values, and freely exchange them without the involvement of intermediaries.
10 Best Bitcoin Exchanges 2021 - Comparison
Many users love our reviews not only for the useful theory, but also for the great tips and comparative characteristics. Since we always advise you to use proven services, it would be ugly on our part not to advise you on several cool bitcoin exchanges.
Binance - The Best Bitcoin Exchange for Newcomers
Binance is a very popular Bitcoin exchange headquartered in Hong Kong. This is one of the most convenient and simple exchanges, so beginners often start trading on it. In addition, the exchange currently supports 33 languages, which indicates how popular it is among users in different countries.
Binance currently offers over 400 cryptocurrency pairs for trading. Of course, the list of features doesn't end there. Binance offers futures trading, margin trading, various educational materials for novice traders, and more.
In general, Binance is a wonderful service not only for professionals, but also for beginners, as it offers a large number of useful functions that are understandable and accessible in the first place.
Coinbase - One of The Most Popular Exchanges
Coinbase is an American Bitcoin exchange that is known all over the world. At the time of this writing (February 2021), Coinbase offers trading in 48 cryptocurrency pairs, which is not a record number, but the main pairs are collected there.
Coinbase is not just an ordinary exchange - it is a whole system of various cryptocurrency services. At the very least, it is also a very reliable and popular cryptocurrency wallet that allows you to safely store coins. Also, Coinbase decided to create a special platform for experienced traders called Coinbase Pro.
In general, Coinbase is an ideal platform for those who are not looking for a variety of trading pairs, but are used to trading several verified coins. And, of course, it is quite easy to use and convenient for novice traders.
BitMEX - The Best Bitcoin Exchange for Leverage Trading
But Bitmex is already a platform for serious trading and we do not recommend beginners to start with this service. This Bitcoin exchange offers users to trade with x100 leverage, which its competitors do not.
In addition, Bitmex is one of the few exchanges that has never been hacked by hackers, which tells us about its high level of security.
This exchange has another feature that some traders may consider a disadvantage. The Bitcoin exchange supports deposits and withdrawals only in Bitcoin, which is inconvenient for those who are used to buying crypto through Paypal or a bank card.
OKEx - One of The Largest Asian Bitcoin Exchanges
OKEx is a well-known Bitcoin exchange that was founded in Hong Kong in 2014. Provides the ability to trade over 450 currency pairs. In the chart of crypto-exchanges, the service took 2nd place in terms of the number of transactions per day.
Okex is an excellent choice for both beginners and experienced traders who have been familiar with margin trading for several years. The functionality of the portal is extensive; here you will be able to find everything you need to carry out financial transactions.
Before registering, it is recommended that you familiarize yourself with the features of the service in order to make a decision about its use.
Basically, the Okex exchange is focused on the Chinese market, but people from other countries can also use the service. There is no referral program, which also does not suit some people. The rest of the site is considered reliable and comfortable, so it is suitable for permanent use.
Kraken - The Most Secured Bitcoin Exchange
Kraken Exchange - founded in 2011, in the city of San Francisco. This trading platform is included in the TOP-20 of the largest exchanges in terms of cryptocurrency trading volume.
The platform's functionality is quite good, there is also an API. Versions are supported both for obtaining public information and for trading. The exchange interface is not translated and is available only in English. It is possible to trade from an iOS or Android smartphone through a special application.
In Western countries, the Bitcoin exchange has gained an excellent reputation for always trying to adhere to the laws. Until now, she has not been involved in any of the major scandals. Moreover, the platform continued to function in those years when competitors one after another closed after the hacker attacks.
It can be concluded that the Kraken is a good and reliable tool for trading cryptocurrencies, which has been showing good results for many years. The platform offers interesting solutions that not all competitors can boast of. It will be an excellent option when choosing a trading platform.
Huobi - The Most Convenient Bitcoin Exchange
Huobi is one of the largest Chinese exchanges that was founded in 2013 in Beijing. The platform allows clients to buy, sell, and margin trade cryptocurrencies. At the moment, the exchange is one of the ten largest platforms in terms of trade turnover.
The platform interface has been translated into 12 languages, which indicates that it is oriented towards the international market.
The exchange provides its clients with comfortable and favorable conditions for cooperation. Traders have the opportunity to work with over 200 cryptocurrency pairs, which, in turn, are divided into three main markets - BTC, ETH and USDT.
For those customers who are often on the road or do not have the ability to access the platform through a computer, a mobile version of the Bitcoin exchange was created, as well as computer software available on Windows and Mac. The mobile version can be downloaded for both Android and iOS systems.
For 6 years of operation, the project has become popular among clients around the world. On the site, the user can find a wide variety of tools and indicators that make trading more comfortable. However, before starting cooperation with the company, the client should carefully study the rules in order to be aware of the possible risks.
Bitfinex - The Bitcoin Exchange With No Hack Attacks
Bitfinex cryptocurrency exchange was established in 2012. The platform interface is available in 3 languages - English, Chinese and Russian.
There have been repeated hacks in the history of the exchange, nevertheless, after them, Bitfinex was still able to stay afloat, improve the security of the system and restore customer confidence.
After registration, the Bitfinex user gets access to 96 financial instruments, which make up 296 trading pairs. The list of the most liquid ones includes BTC/USD, XRP/USD, USDT/USD, ETH/USD, EOS/USD. The number of monthly visits to the Bitfinex Bitcoin exchange exceeds 18 million, which indicates the popularity of this site among investors and a high degree of confidence in its activities.
Bittrex - The Bitcoin Exchange With High Security Level
Bittrex is one of the most popular cryptocurrency exchanges, founded in 2015 in New York and considered one of the safest. The creators of the exchange, who call themselves "security paranoid", have implemented two-factor authorization on the site and storing user funds on "cold" crypto wallets.
However, due to increased security measures, anonymity has suffered: a newcomer, when registering, must indicate not only his email, as is often the case on other exchanges, but his name, phone number, date of birth and passport (or other identity) number.
This Bitcoin exchange supports a large number of cryptocurrencies, which is largely the reason for its popularity. Bittrex is in the top ten in terms of trading volume with a total of over 82,000 BTC per day.
Bitstamp - One of The Most Popular Bitcoin Exchanges
Bitstamp is the first major bitcoin exchange to implement industry-leading security practices such as MultiSig technology for its hot wallet as well as fully insured cold storage, which keeps over 98% of the exchange's cryptocurrency.
Bitstamp takes user safety seriously and uses the latest security protocols to protect data on its platform. Between 2014 and 2015, the Bitcoin exchange underwent a series of attacks and hacks, as a result of which about 19,000 BTC were stolen.
These security breaches have forced platform developers to work harder on their own security, thanks to several protocols established to prevent such hacks from happening again.
Users also have the option to activate 2FA authorization, which ensures that a one-time password message is sent to a verified number or by mail during the login process. It is highly recommended to use 2FA authorization as it greatly reduces the risk of your account being compromised.
In conclusion, Bitstamp is a great platform for businesses and individuals looking for a secure trading platform. You will get what you were promised without fear of losing your digital assets.
KuCoin - One of The Most Progressive Bitcoin Exchanges
KuCoin exchange is an actively developing Bitcoin exchange, which entered the top 15 platforms for trading tokens. The exchange was founded in Hong Kong in September 2017.
The KuCoin cryptocurrency exchange is a modern secure platform for trading and exchanging digital currencies. The exchange's management is actively developing the platform and looking for new ways to attract users by offering new points of interaction. The exchange has been translated into ten languages and has a good reputation in the cryptocurrency community.
The internal token of the KuCoin Shares (KCS) exchange allows you to receive passive income as a percentage of the exchange's profit.
This trading platform has its own working mobile applications, which are a priority for management.
In general, the KuCoin exchange is a progressive, reliable trading platform that is constantly evolving and takes into account the opinions of users.
Conclusion: How to Find The Best Bitcoin Exchange In 2021?
With the growth of cryptocurrencies, popularity increases attention and interest towards BTC exchange websites. The market now offers us a huge number of exchanges, and therefore it is very difficult for traders, and especially for beginners, to decide which exchange they need to choose for their trading.
To choose a reliable and secure european Bitcoin exchange you need to pay attention to the following features: its reputation, fees, payment, and verification methods, geographical restrictions, and exchange rates.
However, every exchange is nothing but a program and problems can happen from time to time. They include security issues, high trading fees, low liquidity, weak customer support, limited crypto pairs, low-quality user interface, and high withdrawal fees. But despite all the problems and limitations, crypto exchange websites remain rather popular.
We understand that a wide variety of features and doubts prevent you from clearly understanding which exchange is right for you. That is why in this article we have detailed about the best Bitcoin exchanges in 2021.
With
Safetrading you will always possess the most important and recent information!