Since the boom of cryptocurrencies in 2009, led by the creation of Bitcoin, thousands of cryptocurrency exchanges have opened to accommodate the growing number of investors. A cryptocurrency exchange is a marketplace where investors and traders can buy and sell different kinds of cryptocurrencies. These exchanges cover a wide variety of currencies, from the popular cryptos up to the newest altcoins in the market. As of the moment, there are almost 2,000 exchanges all over the world.
Exchanges earn their profit by charging fees for every transaction made. They also get commissions from different cryptocurrency events and altcoins startups. There are a number of cryptocurrency exchanges that lead the list such as Coinbase, Kraken, Poloniex, Bitfinex, and Binance.
Before choosing an exchange, there are several factors that need to be considered. The website and server of the exchange must be safe, secure, and reliable. Look for past issues and anomalies within the exchange.
The liquidation is also important. The higher the volume of the exchange, the better. Consider the exchange fees as well. There are several exchanges that do not charge any fee, while others have cheap fees. Inspect if there is an available customer support and what payment options the exchange offers. Evaluate if these payment options are convenient and efficient for beginners. Payment options can be through Bitcoins (or other preferred cryptocurrencies) or fiat money. As a beginner, the exchange must also be beginner-friendly. A tutorial or guide should be available for first-time traders.
Most of the experienced cryptocurrency traders recommend Coinbase to beginners. It is one of the most beginner-friendly exchanges in the market. Its headquarters is located in San Francisco, California. It charges fees depending on the mode of payment used such as bank purchases or through credit or debit card. It has over 13 million users since the start of its operation in 2011.
Kraken is one of the biggest competitors of Coinbase. It is also based in San Francisco and started its operation the same year as Coinbase. Users often praise the smooth transaction within the exchange and no transaction fees are charged. Two years after the exchange giants, Coinmama was founded. It is one of the first cryptocurrency exchanges to allow purchases through debit or credit card.