Best cryptocurrency exchange sites – top exchange for cryptocurrency, features, comparison 2020

A Cryptocurrency exchange site is a place where we buy, sell, and trade cryptocurrencies or altcoins (cryptocurrencies other than bitcoin) against fiat currency (USD, Euro…) or other cryptocurrencies. In this article, we will discuss the different types of top cryptocurrency exchanges. How Cryptocurrency exchange sites differ? And later compiled a list of the best Cryptocurrency Exchange sites in each category.

The article provides a detailed overview of the major attributes of every top Cryptocurrency Exchange sites and rates them accordingly.

The cryptocurrency market evolves around Cryptocurrency Exchange. No Cryptocurrency Exchange sites are alike.

Each Cryptocurrency exchange differs from other Cryptocurrency Exchanges in their primary role, features, quality of service, and most importantly user experience. Hence, choosing the right cryptocurrency exchange can be a tedious job.

Therefore, Below we have listed and explained the different types of Cryptocurrency Exchange sites available worldwide. How Cryptocurrency Exchanges differ? And What attributes to look for before choosing the best possible cryptocurrency exchange site that serves your purpose.

Types of Cryptocurrency Exchange sites

As I said above no two exchanges alike. They differ according to their primary purpose, features, and services offered. I have categorized Cryptocurrency exchanges in three parts.

1. Cryptocurrency margin trading platforms

These are the more traditional type of exchanges “similar to the stock exchange” where you trade altcoins at an open market price. These types of exchanges charge a tiny amount of fee for a transaction.

This type of exchange allows you to trade cryptocurrency against another cryptocurrency. They provide a trading platform with advanced trading tools like coin price charts, margin trading, etc.

Most of these Cryptocurrency exchange sites also offer to trade crypto derivatives with high leverage.

Binance, Bitmex, ByBit, OKEx exchange are the prime examples of these type of Cryptocurrency margin trading platforms

2. Cryptocurrency Brokers

Cryptocurrency Broker is kind of similar to cryptocurrency trading exchange which allows users to buy cryptocurrencies at a slightly expensive price than an original market price of the cryptocurrency with Fiat currency like USD, Euro, AUD, INR.

Brokers work as third party service which adds their premium to the original market price of the cryptocurrency.

These exchanges work like wholesalers which buy the product at wholesale prices and sell at their own price tag. Most cryptocurrency brokers are also a trading platform with basic trading tools.

Cex.io, Coinmama, and Coinbase are few of the examples of cryptocurrency brokers

Read the detailed Coinbase review 2020

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3. PtoP exchange (Peer to Peer Exchange sites)

These types of Cryptocurrency Exchange sites act as a middleman between the buyer and the seller and let them trade at whatever price they want.

Local Bitcoins exchange is a prime example of these types of exchanges. The best part of these types of exchanges is that you have the option to buy and sell the coin using any payment method including cash.

To counter the risk associated with the peer to peer transactions. Exchange use escrow service which holds the cryptocurrency until the confirmation of payment by both parties.

First, the buyer makes the payment and then confirm the payment execution at his/her end. The seller releases the cryptocurrency after confirmed receiving the payment. The exchange charges a tiny amount of escrow fee from both parties.

Exchanges also use a reputation system to categorize the reliable and trustworthy seller and buyer.

At LocalBitcoins Exchange you can buy bitcoin with each and every possible payment method including gift cards, Apple Pay, Cash, and Countries local payment methods.

Local Bitcoins, Paxful are few of the examples of p2p cryptocurrency exchange sites.

Note: You can buy bitcoin with INR instantly at Localbitcoins

What features to look for before choosing the top cryptocurrency exchanges

1. Ba ckground:

Reputation and the background of an exchange is the first thing to inquire about top cryptocurrency exchanges.

The best way to check the reputation of the exchange is to read user reviews on public forums like Bitcoin talk, medium, or Reddit. (Don’t worry I have covered it for you)

It gives an overview of the past practices of a cryptocurrency exchange site and gives you the confidence to invest your money in the platform

2. Security –

A top cryptocurrency exchange must have robust security. So the user feels confident to invest the money in the platform and can trade with peace of mind without worrying about the trading asset.

3. The interface of the exchange

The interface of the exchange is the next big thing to consider before choosing the platform. A flexible, easy to navigate, dynamic, and well-structured interface provides a much better user experience.

4. Fees –

Fees are another major factor in choosing the right type of Exchange. The low fee cryptocurrency exchange helps users to make more profit than high fee exchange.

5. Number of altcoins to trade –

The number of altcoins available on a Cryptocurrency exchange site provides you with more options to maximize the profit.

Best altcoins to invest in 2020

6. Payment options –

The number of payment options supported by the platform makes it more accessible and flexible. It provides more opportunities for users to access the platform.

The higher number of payment methods also maximize the profit potential for the users as different payment methods have different transaction fees.

Certain payment methods are also best suited to certain users according to location, fiat currency, and accessibility.

7. Liquidity –

Liquidity means how quickly the trader can get your hands on your wanted currency by exchanging it for other currencies. Higher the liquidity better the Cryptocurrency exchange for crypto trading.

8. Trading tools

Trading tools are the trading features or add-on trading services offered by the cryptocurrency trading platform. Which provides a user with more trading options, trading types, and makes crypto trading more convenient.

9. Customer support

Customer Support of the exchange plays a major role in the user experience and reflects the good practices of the platform.

10. Trading volume

High trading volume exchange gives a strong indication of the popularity, credibility, and good practices of the cryptocurrency exchange site. It shows people are ready to invest in the platform.

Best Cryptocurrency exchange sites – Features and Comparisons