After proving themselves to be worthwhile investments, cryptocurrencies like Bitcoin (BTC) have become the go-to for anyone looking to invest a bit of cash. After all, it’s easier to get into the space compared to traditional financial institutions.
Because of that, it’s pretty common to see advertisements for Bitcoin exchanges these days, all claiming to be the best. This might make things a little confusing for newcomers, so let’s talk about which exchanges you can rely on.
What we’ll be considering
Of course, we can’t pick platforms on the basis of favoritism—we have specific criteria to break down the key elements of a good exchange.
Cost
A Bitcoin exchange needs to make money. Each platform has its own way of charging users for its services and the features they offer.
Ease-of-use
For an exchange to be effective, it should be easy for users, both newcomers and veterans, to participate in trades.
Security
Credible platforms normally have some form of documentation describing the measures they’ve taken since a lot of users will be looking for the safest way to buy Bitcoin with credit cards, among other payment methods.
Flexibility
Are you only aiming to trade? Certain exchanges offer features that allow their users to do more than just trade Bitcoin. We’ll be factoring this in with respect to the practicality users look for.
The 5 best crypto exchanges
1. Paxful
As a peer-to-peer exchange, Paxful’s goal is to allow traders from all over the world to trade with people around the world any time they want. They offer a free Bitcoin wallet upon registration and zero fees when people purchase BTC. As a trusted Bitcoin marketplace, Paxful has become a popular way to remit money overseas, especially when you consider how they offer nearly 400 ways to pay for your crypto.
Pros: Paxful’s security includes an escrow account where the crypto is held while transactions are still in progress. Along with the verification process (which lets users access extra perks), they charge zero fees when buying Bitcoin and have a 24/7 customer support team.
Cons: The sheer number of payment methods can be a little overwhelming for some and it definitely requires a little exploration to find out what works best. Luckily, with all the tutorials available, going through their blog or social media accounts might help.
2. Binance
Based in Hong Kong, Binance has grown in popularity over the past few years despite the fact that they aren’t available in the United States at this time. Binance has its own blockchain and cryptocurrency, the Binance blockchain and Binance Coin (BNB).
Pros: Users can expect low fees for their instant and non-instant transactions. They even let users convert their Bitcoin or Ethereum to alt-coins for traders looking to diversify their profile.
Cons: Unfortunately, popularity doesn’t guarantee smooth experiences. The verification process has had moments where it bugged out on users. To add, the lack of transparency in the corporate structure has given people some reason to hesitate.
3. LocalCoinSwap
Founded in 2018, LocalCoinSwap is known to support custodial and non-custodial trading as well as 10 different cryptocurrencies. They let users pay for transactions through 7 payment methods to help make things a little easier for crypto traders.
Pros: LocalCoinSwap lets users trade anonymously, to the point that no identity verification is required. As for transaction fees, they have a flat rate of 1% for every offer created.
Cons: Newcomers might have difficulty getting started with their limited payment methods. Additionally, the platform charges users for withdrawals of BTC and DASH.
4. Hodl Hodl
Hodl Hodl is a peer-to-peer exchange platform that emphasizes the anonymity offered by cryptocurrencies. As such, they require no KYC (know your customer) or AML (anti-money laundering) background checks. Hodl Hodl charges users 0.6% for each transaction with the possibility of making that 0.5% if users verify their identity or refer someone to their site.
Pros: Hodl Hodl provides users an escrow account for trades to minimize the risks of scam trades. Supporting this, transactions on the platform will only continue if Hodl Hodl itself approves them.
Cons: Due to the focus on anonymity, newcomers might find it difficult to distinguish a legitimate offer from a possible scam.
5. Whales Heaven
Whales Heaven is working on providing users, both private and institutional, a transparent and secure way of trading cryptocurrencies. The platform is in full control of the trade process with the goal of preventing any unauthorized access to user funds. They promise low commission rates for all their services.
Pros: The platform’s focus on security makes it easier for newbies to get started. They even let you automate trading through clever features so you never miss a deal.
Cons: Currently, the platform’s payment methods are still relatively limited. Much of what’s allowed will need users to first convert money into crypto before participating on the platform.
Trading the right way
When it comes to money, we have to be confident with the decisions we make. Like we’ve said before, trading cryptocurrencies is a viable option for anyone looking to make money on the side—the trick is knowing the right way to do it.
We’ve just discussed the five best peer-to-peer platforms for crypto traders of any level. You can visit the sites themselves if you feel like you need to take a closer look. At this point, it’s understood that we can all make money from Bitcoin—all we need to do is to choose a platform to get started.
