Many times you need to convert your cryptocurrencies or real currencies to bitcoins or vice versa. Meanwhile, Bitcoin and other cryptocurrency exchange sites make conversion operations easy for you. Cryptocurrency conversion or exchange requires high security and some websites may be fraudulent; So security comes first. Cryptocurrency exchanges are still new and are gaining more and more attention. In 2017, we saw an increase in trading volume in these exchanges, and this process will continue. We can divide exchanges into centralized and decentralized exchanges. Many exchanges in the world are trying to win the competition from other Cryptocurrency exchanges and, they are trying hard to do so. In this post of the reviewscenter blog, we will introduce the world’s famous exchanges. So stay with us.
What is a centralized cryptocurrency exchange?
A centralized exchange is an online platform and the most common way to buy and sell bitcoins and other cryptocurrencies. In these exchanges, it is possible to buy or sell cryptocurrencies with Fiat or common currencies (crypto pair / Fiat). You can also buy or sell cryptocurrencies with other cryptocurrencies (crypto pair/crypto). These exchanges are an online market for the entire digital currency network.
Centralized exchanges mean a valid intermediary to handle any assets used in transactions. There are many stories of investors losing hundreds of thousands of dollars because of missing their private keys. If their money were in a centralized exchange, they would not have to worry about it, and it would be easy to recover their money by showing their passport or ID card.
The difference between centralized exchange and decentralized exchange of cryptocurrencies
Cryptocurrencies and blockchain are inherently decentralized, which allows exchanges to be decentralized. Simply put, a decentralized cryptocurrency exchange eliminates intermediaries by creating a highly unreliable and intelligent environment. Tradings are through smart contracts so that money does not pass through intermediaries; This is a peer-to-peer system. DEX is still in its infancy and not so famous.
Authentication in exchanges to create an account
Many exchanges allow users to create an account without authentication, but these accounts have restrictions on depositing and withdrawing from the account. Basic authentication generally requires an image of the user’s passport or ID card, and this enables Two Factor Authentication.
2FA is a confidential password that is generated every thirty seconds and must be entered each time a user logs in to their account. Two-step authentication is usually stored on the user’s phone.
These days many people talk about investing or trading in Bitcoin and other cryptocurrencies. Do they ask what are the best cryptocurrency exchanges? Where Can I exchange my cryptocurrency? But there are always a lot of concerns about scams and losing money. Although many scams have happened and continue to happen, it is now simpler to invest in cryptocurrency than ever. So much has improved in the last few years that have made cryptocurrency trading secure and easy.
The major concern when trading and buying Bitcoin or other cryptocurrencies is safety and security. Whether you aim to buy and hold long term, want to trade frequently, need anonymity or privacy, or are a beginner, the following cryptocurrency exchanges are the best choices for any use case you may have.
We provide a brief review of each one to help you choose the right exchange based on your needs.
Binance Exchange is one of the most popular cryptocurrency exchanges that offer to invest and trade in more than 45 coins such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Binance Coin (BNB).
Formerly known for crypto-to-crypto trading which means trading between two cryptocurrency pairs, Binance exchange has gained significant popularity due to its low transaction fees, high liquidity, and good discounts if users pay in the native BNB cryptocurrency tokens.
Binance is based in Japan. The exchange services were launched in 2017. It provides high standards of safety and security with multi-tier and multi-clustered architecture and delivers high processing throughput with the capacity to process around 1.4 million orders per second. It supports trading in more than 150 coins, such as Bitcoin, Ethereum, Litecoin, and its own native BNB tokens, and the list is growing every day.
The name “Binance” is a combination of the words binary and finance.
Acting as a standard exchange, it offers services around the trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. Cryptocurrency creators who are willing to launch their tokens can use Binance for raising funds through initial coin offerings (ICOs). A large number of traders and participants use Binance for exchanging and investing in different cryptocurrencies.
At first, traders have to complete the necessary KYC requirements. Upon successful trading account creation, users can add cryptocurrency funds to their public wallet address which is provided by Binance to start trading.
Binance supports three types of trade orders: limit, market, and stop-limit orders. Limit orders are executed only at the limit price set by the trader, market orders are executed immediately at the best available market price, while stop-limit orders are executed orders only when the price reaches a specified level.
There is no fee charged for cryptocurrency/fund deposits but withdrawals come with a transaction fee that is dependent upon the cryptocurrency.
Advantages of Binance
In addition to exchange-specific services, Binance also provides other tools, platforms, and services for supporting the overall blockchain ecosystem.
Binance uses a blockchain technology incubator called Binance Labs, which focuses on nurturing promising pre-ICO stage projects. It helps deserving crypto project teams by providing necessary funding for development, advisory resources, and a launchpad for any necessary listing and fundraising exercises.
Binance also has a site called LaunchPad for hosting new and emerging blockchain projects. One can also create APIs, which stand for application programming interfaces.
It launched its own Binance Coin (BNB) cryptocurrency through an ICO in July 2017. BNB has become popular and active with a market cap of around $2.5 billion as of September 2019. It is set to become the native currency of the decentralized Binance exchange.
As the leading cryptocurrency exchange in the United States, Coinbase has become a standard on-ramp for new cryptocurrency investors. Coinbase offers different products such as cryptocurrency investing, an advanced trading platform, custodial accounts for institutions, a wallet for retail investors, and its own U.S. dollar stable-coin.
Coinbase was established in 2012 and is a fully regulated and licensed cryptocurrency exchange in 40 U.S. states and territories. Coinbase initially only accepted Bitcoin but quickly started to add cryptocurrencies that fit its decentralized criteria.
Its list expanded to include Ethereum, Litecoin, Bitcoin Cash, XRP, and many others with the promise of more coins as long as its requirements are met.
While Coinbase is a simple on-ramp to crypto investment for beginners, Coinbase Pro offers a larger and more robust charting and trade experience.
Regular Coinbase users can buy cryptocurrency using market orders that experience high fees compared to other exchange options. With that in mind, Coinbase wanted to create a free option for Coinbase users to graduate when they were more prepared. With Coinbase Pro, traders can place market, limit, and stop orders with lower fees. Coinbase Pro also has the option of margin trading and has fancier charting capabilities.
Users trading in Coinbase Pro can see as short-term as a one-minute candle or line charts and can use overlays like exponential moving averages. Currently, the only two available overlays and indicators are EMA (12) and EMA (26). It also has over 80 trading pairs available. Compared to other trading tools out there, Coinbase Pro is still bare-bones concerning indicators.
While the standard Coinbase helps people to understand how easy it is to buy, store, and move cryptocurrency, Coinbase Pro is, by far, a better platform for those who wish to actively trade or invest with lower costs and more features.
Coinbase has a really convoluted and quite expensive fee system if not using Coinbase Pro. The cost of trading on Coinbase’s standard platform is higher than its competitors.
In addition to fees, Coinbase also charges variable spreads on purchases and trades. Coinbase says that they normally charge about 0.50% for the purchase and sale of cryptocurrency. Market fluctuations can change that.
There is also a “Coinbase Fee” in addition to the spread and the cost of depositing money. This fee is dependent on the value of the purchase, payment type (debit/credit), and region you are buying from.
Coinbase uses different safety measures for account holders. Remember that any crypto on any exchange account is only as secure as the account holder makes them. It is imperative to use strong passwords and to utilize the available security features like two-step verification.
Coinbase has two-step verification, biometric fingerprint logins, insurance if Coinbase itself is breached (this insurance does not work if your account is breached due to your lack of security measures), and also stores 98% of users’ funds in offline cold storage.
Cryptocurrency is not considered legal tender so it is not backed by SIPC or FDIC. Coinbase provides insurance by pooling Coinbase balances and holding them in USD custodial accounts, USD denominated money market funds or liquid U.S. Treasuries.
Coinbase provides a solid amount of security in comparison to lots of other leading exchanges. This is one of the reasons why Coinbase is a great offering for those who care about security.
Advantages of Coinbase:
- Coinbase offers more than 25 cryptocurrencies for investment, trading, and staking.
- Coinbase can be one of the easiest on-ramps to crypto investing. It is easy to sign up and buy cryptocurrencies within a matter of minutes. It has a learning program too which learns more about how cryptocurrency works.
- Coinbase consistently ranks among highly liquid exchanges. This protects the investor from price slippage in an already volatile market.
Disadvantages of Coinbase:
- Coinbase has high fees in comparison to its competitors. Many newcomers who use the standard Coinbase platform will be subject to these fees unless they use Coinbase Pro instead. Coinbase Pro is free to switch to and has lower fees and more features that could be overwhelming to beginners.
- This is consistent with many centralized exchanges but it remains a con for all of them. When a user buys cryptocurrency on an exchange it is stored in a wallet that Coinbase has control over. This means that the user does not have full autonomous control over it which is against the ethos of decentralized currency or finance. This can be avoided if the investor withdraws their currency to their wallet.
- It has a great variety of solid altcoin options for new investors to dabble with, but those interested in seriously trading altcoins will not find too many coins. That said, Coinbase plans on continuously adding new altcoins over time.
San Francisco-based Kraken is a cryptocurrency exchange where market participants can trade different cryptocurrencies. The participants are allowed to purchase or sell the cryptocurrencies using various fiat currencies, that include U.S. dollars, Canadian dollars, euros, and the Japanese yen.
Right now, 17 different virtual currencies were enabled for trading on the Kraken exchange such as Ethereum and bitcoin, and others that have gained traction in recent times, like EOS (EOS) and Monero (XMR).
Kraken was founded in the year 2011, and it formally launched its trading operations in 2013. It provides the easy movement of money to and from the linked bank accounts of the participant, and the movement of crypto coins to and from the participant’s digital wallets from Kraken-linked trading accounts.
Over the years since its launch, many factors have contributed to Kraken as a trading destination of choice for a lot of cryptocurrency market participants.
As crypto-mania started gripping the world around 2014, Kraken, along with Coinbase exchange, was chosen to provide the market data of bitcoin trading to the Bloomberg terminal. Getting associated with the leading market data provider helped Kraken become popular among the trader community.
Advantages of Kraken
Kraken offers a feature-rich trading platform for crypto enthusiasts as well as large trading firms. It has different types that cover the needs of all kinds of traders and investors.
With its advanced order system and trading tools including a variety of stop-loss and profit-taking order types, leverage and margin-based trading, automated strategy trading, and a big pool of cryptocurrencies to trade in – Kraken ranks among the best cryptocurrency exchanges.
Disadvantages of Kraken
In May 2017, Kraken, along with the bitcoin exchange Poloniex, was hit with Distributed Denial of Service (DDoS) attacks, resulting in significant losses for market participants.
That event led to a class-action lawsuit being filed against Kraken, where plaintiffs are seeking over $5 million which they claim they lost as a result of Kraken’s mishandling of the DDoS attack.
This was very bad for Kraken’s image, which had boasted that it was the safest cryptocurrency trading platform, and claimed to be the trust winner by Mt. Gox trustees.
As crypto-mania sweeps the globe, a large number of new participants have jumped on the bandwagon. Regular occurrences of performance issues at cryptocurrency exchanges have marred the increasing liquidity and trading activities in the bitcoin market. That tested and broke the Kraken platform – as a few days “produced 50,000 new account registrations and 10,000 new support tickets”, which led to questions about Kraken’s stability and scalability.
Bitfinex is a Hong Kong-based cryptocurrency exchange that has been in operation since 2012.
Bitfinex was founded in the British Virgin Islands in 2012 by iFinex inc but it is headquartered in Hong Kong. The company initially started as a peer-to-peer margin lending platform for Bitcoin only. Some of the founders and management of iFinex inc. are related to Tether, the US pegged Stablecoin.
Bitfinex offers its customers different services which are explained below.
Advanced Trading Platform
Bitfinex offers the most liquid order book in the world. High volume is very important for traders, as it ensures a low spread, which is the difference between the best bid and asks prices.
Bitfinex features an advanced, customizable GUI, over 50 trading pairs (e.g. BTC/ETH), and lots of order types, such as limit, market, stop, stop-limit, trailing stop, fill or kill, and scaled orders. Bitfinex’s trading platform interface is customizable. You can also get access to advanced charting functionality and API access. These features combine to make it one of the best exchanges with more sophisticated cryptocurrency traders.
Margin Trading and Funding
Bitfinex users can borrow and trade with up to 3.3x leverage through the site’s P2P margin funding platform. Borrowing terms (amount, duration, and interest) can either be determined by the user or automatically through Bitfinex. On the other hand, crypto owners can lend their funds securely to traders to earn interest. Users can offer funding across a wide range of currencies & assets, at the rate and duration of their choice. Remember that Margin trading amplifies both upside and downside risk and is not new traders should be careful about it. Margin funding locks the funds on Bitfinex for the duration of the loan.
Over The Counter Services
For users who trade large quantities ($100,000+) of cryptocurrency privately, Bitfinex provides an over-the-counter trading facility. This service matches, and presumably secures major private deals.
Bitfinex has experienced its share of problems. In 2015 the exchange was hacked and 1500 Bitcoins were stolen. The April 2016 theft of nearly 120,000 BTC from Bitfinex stands as the second-largest Bitcoin heist in history, dwarfed only by the loss of around 750,000 BTC by Mt. Gox. The key difference between Gox and Bitfinex is that Bitfinex decided to spread the loss among all its clients. All users took 36% “haircuts” on their account values. One year later, all clients were fully compensated. The problems didn’t end there for Bitfinex. In April of 2017, Bitfinex’s bank accounts were frozen by its correspondent bank, Wells Fargo. This situation continued for weeks, leading to client complaints and all kinds of distortions in Bitfinex’s pricing. Normal service was finally restored—although US dollars and US customers are no longer accepted by Bitfinex as a result of this problem.
Currencies and Payment Methods
Bitfinex accepts fiat deposits in EUR, JPY, GBP, and USD. They can be made through a wire transfer only. Bitfinex also supports Tether (USDT), the quasi-fiat token unofficially pegged to the US dollar’s price. Free deposits and fairly cheap withdrawals are available for Bitcoin Litecoin, Ethereum, Zcash, Monero, Dash, Ripple, Iota, EOS, and an additional 80+ assets. Bitfinex needs verification for Tether usage and expedited cryptocurrency withdrawals. However, the exchange remains perfectly usable for users who provide an email address. Bitfinex also offers direct access via a Tor hidden service.
Bitfinex utilizes a taker-maker fee model where people who fulfill existing orders are considered takers, while users that place new limit orders are considered makers. They start from 0.2% for takers and can drop as low as 0% for large maker orders. There is no trading fee for large orders conducted through the OTC desk. Bank wires have a 0.1% deposit and withdrawal fee, which can reach up to 1% if you’re looking for an expedited withdrawal. Cryptocurrency deposits are generally free of charge unless you’re depositing less than $1000 worth of crypto. If that’s the case, you will pay a fee depending on the coin depositing. Cryptocurrency withdrawals also cost a small fee, depending on the currency withdrawn.
Bitfinex supplies its traders with an extensive knowledge base and a ticket-based support center. Its average TrustPilot score shows that it’s doing a good job in maintaining user satisfaction (most exchanges receive a “poor” rating). However, there has been a lot of criticism about the exchange throughout the years, mostly about the transparency of their business and their close relation to the stable coin Tether. On April 24th, 2018 Bitfinex was accused by New York’s attorney general’s office of an $850 million coverup stating: “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a coverup to hide the apparent loss of $850 million of co-mingled client and corporate funds” Bitfinex has denied the claims, sending an open letter to its traders a day after, saying that the attorney general’s office letter is filled with inaccuracies and false assertions.
Poloniex is a digital asset trading service. It is a type of exchange where users can transact in different digital currencies around the world. In this way, Poloniex is very similar to any of an ever-increasing number of cryptocurrency exchanges headquartered in different countries.
What makes Poloniex different from the other exchanges is structured, however, actually, it is designed as a pure digital-currency-to-digital-currency exchange. Traders may only transact in cryptocurrencies.
In the case of some exchanges, users can buy or sell cryptocurrencies with or in fiat currency. This is currently not the case for Poloniex which all exchanges are done via other cryptocurrencies. Whereas most digital currency exchanges allow users to buy into a cryptocurrency with fiat currency of some type or another, with Poloniex, users must already have at least some quantity of one of the digital currencies on offer to participate in the exchange market. While this may seem on the surface to be a hindrance, many cryptocurrency users have nonetheless flocked to Poloniex for the variety of currencies that it includes in its list of offerings.
Poloniex has experienced many redesigns and expansions since its launch. The service also provides technical analysis and user support in addition to its original trade functions, as well as an expanded range of trading features.
According to Poloniex.com, the exchange’s online headquarters, Poloniex operates based on a volume-tiered, maker-taker fee schedule that was adopted in 2016.
“The maker-taker model encourages market liquidity by rewarding the makers of that liquidity with a fee discount,” according to its website. “It also results in a tighter market spread due to the increased incentive for makers to outbid each other. The higher fee that the taker pays is usually offset by the better prices this tighter spread provides.”
In other words, the higher a trader’s trading volume over the previous 30-day period is, the lower the fees that the user experiences. The maker-taker model, in use in a variety of types of exchanges throughout the financial world, is going to incentivize trades within a particular market. It does this by offering market makers an incentive to post orders, thereby facilitating trades. On the other hand, these models often are punitive for the customer on the opposite side of the equation. In the case of Poloniex, the added benefit of the increased liquidity and more optimal market spread is designed to balance against the higher fee which is charged to the taker.
Security, Insolvency, and Hacking Concerns
As with most cryptocurrency exchanges, Poloniex has made it a priority to ensure users experience safety and security while transacting. As such, Poloniex ensures that “the vast majority of customer deposits are stored offline in air-gapped cold storage. [The exchange] only [keeps] enough online to facilitate active trading, which greatly minimizes risk and exposure” to hackers and other threats.
Additionally, the exchange maintains vigilant monitoring and auditing systems that work to protect user assets around the clock. Even with these security measures, there have been user concerns regarding Poloniex’s security and solvency.
In the summer of 2017, for example, a rumor circulated among users that Poloniex was experiencing insolvency. The source of the rumors was difficult to track, but it was reported that at least one user experienced a significant personal financial loss as a result of hacking, and the user reportedly did not receive prompt assistance from the Poloniex support department.
The idea of making a quick buckled to an explosion of ICOs in the past few years. Some thrived; others flopped. But in an industry as young as cryptocurrency, it pays to have a long track record.
That’s one reason Huobi has done so well. Launched in 2013, the company’s cryptocurrency exchange has a well-established reputation – especially in Asia. The exchange is often rated in the top five for market cap.
Huobi also issued its token called Huobi Token to increase user loyalty. It was initially aimed at the Chinese market but has since expanded to more than 130 countries. It’s also one of the oldest exchanges. Huobi’s holding company, Huobi Global, has teams in Japan, South Korea, the United Kingdom, Australia, Canada, Brazil, and Hong Kong.
Advantages of Huobi
- Huobi buys back 20% of its currency, the Huobi Token. These go into a user protection fund which can be redistributed to holders in case of a hack.
- It rewards users who purchase currency using Huobi Tokens by offering a discount in transaction fees.
- There are two versions of Huobi: Huobi OTC and Huobi Pro. Huobi OTC is a simpler, lighter version. You can trade one of 25 fiat currencies (like the Euro) for one of six cryptocurrencies. They don’t charge a transaction fee for most trades in bitcoin, Ethereum, or Tether. Huobi Pro is for professionals and offers more than 100 cryptocurrencies. There is a 0.2% fee for most transactions.
How does Huobi work?
Huobi functions similarly to other cryptocurrency exchanges. People can buy and sell cryptocurrencies, and the platform makes money by charging a transaction fee.
A more recent move is the exchange’s focus on stable coins backed by the USD. These are coins that are pegged at the value of the US Dollar, which makes them less susceptible to volatility in the market. When someone deposits one of four stable coins (Paxos Standard, True USD, US Dollar Coin, and Gemini dollars), it will be automatically transferred into Huobi’s HUSD. Then when the person withdraws the currency, they can pick from any of those four stable coins in a 1:1 ratio. So you deposit one Gemini dollar, which gets automatically converted to one HUSD. Then when you withdraw it, you could take out one USD Coin. Huobi says the HUSD will eliminate the need to select between stable coins and save on conversion costs.
Huobi Token (HT) was first issued in 2018, with a total supply of 500 million. Of that, 300 million were given away as a perk to people who bought a “points card” on Huobi Pro. As for the rest, 100 million HT is for ‘user rewards and platform operation’, while the remaining 100 million are for team incentives. The tokens were issued as a way for Huobi to recover after a Chinese crackdown on cryptocurrency trading sent trade volumes plummeting. The tokens were intended to increase loyalty to the platform.
HT can be bought and sold using one of Huobi’s exchanges, and aren’t mined like so many other cryptocurrencies.
The Huobi Token is fuel for the Huobi system. Keyway traders use it to reduce fees when trading on the Huobi platform. For instance, when you exchange one currency for another on the Huobi Exchange, you are charged a 0.2% fee. However, if the currency you are exchanging is the Huobi Token, you are charged a lower fee. This is especially attractive to high-volume traders.
Huobi also rewards holders of the Huobi Token with a guide to mining., which means they will randomly give away free tokens to people who are loyal keepers of HT. Moreover, people with Huobi Tokens can have voting rights – like choosing the next token that should be added to the exchange.
In 2011, Damijan Merlak and Nejc Kodric founded Bitstamp in Slovenia to create a center for European Bitcoin enthusiasts. At the time the exchange was meant to be an alternative to the dominant Mt. Gox exchange.
As Bitstamp grew it later opened offices in the U.K. in 2013 and then in Luxembourg in 2016. Since then it has also added a London and New York office to continue providing great service to its growing global user base.
Bitstamp is most known for intermediate and experienced cryptocurrency enthusiasts and is used as a way to buy more established cryptocurrencies with fiat money. Bitstamp offers low fees and has been acknowledged as a perfect way to exchange large amounts of digital currencies.
As of May 2018, Bitstamp is #22 in trading volume, handling roughly $90 million daily in trading volume. Over half of that is BTC/USD trades, with another roughly 10% each being taken by ETH/USD and BTC/EUR trading.
Exchange safety is one of the most issues questions for the trader. Cryptocurrency exchanges are prime targets for hackers.
This is also a particularly touchy problem for Bitstamp as they also suffered hacks in 2014 and 2015. In the 2015 Hack, the attackers managed to extricate 19,000 BTC which is one of the biggest cryptocurrency exchange hacks ever.
Although these hacks did happen, they were a result of phishing attempts that managed to dupe exchange employees. They were not a result of technological failures.
Exchange Wallet Security
Bitstamp uses some of the best practices when it comes to cold storage of cryptocurrency assets. They hold the majority of their coins offline in an air-gapped state.
It means that they are inaccessible to hackers as they are not connected to the internet. These will only ever be accessed and withdrawn from when they are running low on coins that they keep in their “Hot Wallet”.
Hot wallets are wallets that are connected to their servers and facilitate transactions for the traders. In terms of the security procedures that are implemented in this case, they make use of advanced multi-sig wallets.
This means that these wallets can only ever send a transaction if they are signed by multiple keys. There will have to be a lot of staff at Bitstamp that will sign these transactions.
This is why the hackers cannot steal funds again in the case of a phishing attempt. They would have to obtain all of the keys from all of the participants to sign out the transactions.
Something that many cryptocurrency users will appreciate about Bitstamp is its low and transparent fee structure.
Users are charged three types of fees. These are deposit, trading fees, and withdrawal fees (network fees).
If you already have funds on the exchanges then you will be charged a percentage fee for the amount that you are trading. This is tied to the amount of volume that you have traded in the last month and follows a sliding scale.
Funding / Withdrawal Fees
If you want to send funds to Bitstamp, then they will differ according to the method that you used to fund your account.
If you are sending your funds via a SEPA transfer in Euros then you will not pay any fees. You will only have to pay a 0.90 EUR withdrawal fee when you request Bitstamp.
However, if you do not have an EU bank account and would like to pay via an international wire transfer you will pay a 0.05% deposit fee (minimum fee of $7.5). If you were to withdraw via a wire then you must pay a 0.09% fee with a minimum fee of $15.
If you were to purchase your coins with a credit or debit card then you would pay a flat 5% fee. This is a little bit on the higher end for a card purchase in comparison to other solutions such as Hodly and Coinmama.
Lastly, when you are withdrawing in cryptocurrency, then Bitstamp will not charge you a fee. But you must pay a network fee that is the amount that will go to miners to process the transactions.
Coinmama is a bitcoin broker based in Israel. They have done a good job in selling bitcoins for credit cards to nearly anyone in the world.
It was founded in 2013 and now is one of the more established cryptocurrency platforms in the blockchain space. They have a special team and largely cater to a European clientele.
Coinmama isn’t to trade cryptocurrencies like switching from Ethereum to Bitcoin. It doesn’t allow its users to exchange cryptocurrencies. Instead, Coinmama is an onboarding platform to buy cryptocurrencies such as Bitcoin, Cardano, and Ethereum.
When you use Coinamam, you aren’t even trading with other traders on the platform. But you are buying from and selling to Coinmama directly.
Buying crypto on Coinmama is simple. You choose the amount and then Coinmama will give you a quote on that purchase.
Coinmama calculates fees as a percent of the spot price. Their commission is as high as 3.9% using SEPA bank transfers. If you use a credit card, they add a 5% “momentum fee”.
Remember that if you use SWIFT, there is a minimum fee of £20 added onto all transfers of USD 1,000 or less.
That’s a fairly steep price considering the implication. To turn a profit, you’ll need Bitcoin to go above $10,500.
Other trading platforms like Coinbase charge a bit less than 5%, however, their fees depend on what payment method you use.
Traders using the Coinmama platform can buy:
- Bitcoin Cash
- Ethereum Classic
- Ripple XRP
Coinmama will accept any fiat money from supported countries. However, being a Euro-centric platform Coinmama displays crypto prices using the following currencies:
Buying With a Credit Card
Coinmama is a great platform where you can buy crypto with a credit card.
You have to pay attention to what price Coinmama is clearing the sale at. It is being said, Coinmama charges a 5% “momentum” fee to buy with a credit or debit card.
Coinmama’s security record is outstanding. They’ve never actually had any cryptocurrency stolen, which is good, but hackers could steal the personal data of nearly half a million customers.
The data beach happened early in 2019 and affected 450,000 accounts overall. Credit card information was not stolen but rather email addresses and passwords for Coinmama accounts. This theft was part of a larger attack that affected more than twenty websites and more than half a billion records.
Since Coinmama delivers bitcoin directly to wallets, it’s very unlikely the exchange could get hacked and lose user funds in the process.
Remember hardware wallet like a Ledger Nano X or a Trezor Model T is always a great option for keeping your crypto safe.
CEX.io is a cryptocurrency exchange platform that accepts multiple deposit types and supports various digital assets. It is perfect for both advanced traders and beginners to get started with buying and selling cryptocurrencies.
The site is certainly legit, as it has been registered in the United States as a Money Services Business. The agency that it’s licensed is called the Financial Crimes Enforcement Network (FinCEN). So it seems they’re highly unlikely to suddenly pull an exit scam on users.
CEX.io also provides clients with protection under a level two DSS certificate. This means it has a certain level of security to store, process, and transmit payment card data.
Notice that CEX.io should not be considered completely secure since it is a cryptocurrency exchange, after all. The fact that they store vast amounts of various currencies makes it a big target for hackers.
CEX.io was founded in the UK, in 2013. Originally, it was a cloud mining provider that owned the GHash.io mining pool. In 2014, GHash was one of the largest mining pools around.
In 2015, CEX.io decided to stop providing cloud mining services. This was based on the low Bitcoin price at the time and the fact that the company didn’t own any mining hardware. The GHash.io mining pool was terminated. However, CEX.io would live on, solely as a cryptocurrency exchange platform.
Advantages of CEX.io
- If you’re struggling to understand how to do anything on CEX.io, there is probably a page in the support section that explains it precisely. If not, the platform offers an easy-to-use email support form.
- The exchange offers several different trading pairs and multiple fiat money to select from. This means you can buy and sell different cryptos with your selected currency. There is no need to go back to Bitcoin first and so you will pay fewer fees.
- Even the advanced trading windows are clean and clutter-free. This makes browsing the CEX.io website easy and simple for beginners.
- It has margin trade options (trade using borrowed money). This is a risky form of trading and is not recommended for beginners!
- The company is registered as a Money Services Business with FinCEN in the USA. It also has a level two DSS certificate.
Disadvantages of CEX.io
- CEX.io doesn’t have many cryptocurrencies available. If the crypto has never been in the cryptocurrency top ten by market cap, you can be sure you won’t be able to buy it at CEX.io. That’s a downside for this CEX.io review.
- Like many other exchanges, it is important to not put too much trust in its security. Every exchange could get hacked. So it’s important to not leave any money on the website.
Payment Methods and Fiat Currencies
One of the best features of CEX.io is that the platform accepts a lot of different fiat currencies. This makes it easy for people all around the globe. Here’s the list of fiat currencies that are accepted by CEX.io:
- United States dollar (USD)
- Euro (EUR)
- Pound Sterling (GBP)
- Ruble (RUB)
CEX.io accepts various payment methods to fund the account with either these fiat currencies or cryptocurrencies:
- Faster Payments
Hence, the variety of payment methods makes everything super simple for new clients.