Best Crypto Exchanges for 2024

What Are Crypto Exchanges?

A crypto exchange is a specialized marketplace that allows you to trade cryptocurrencies. Unlike traditional financial markets, which trade assets like stocks or commodities, crypto exchanges deal exclusively with digital or virtual currencies like coins or tokens.

Let’s have a look at most important features:

1. Types of trades: These platforms enable various forms of trading, from straightforward buying and selling of crypto to more advanced trades like margin trading and futures trading.
2. Liquidity providers: They act as intermediaries that provide liquidity, meaning they enable a fluid market where you can always buy and sell crypto without significant delays.
3. Matching orders: The exchange’s system is designed to pair buy and sell orders in real-time. If you want to buy Bitcoin at a specific price, the exchange will match your buy order with a corresponding sell order.
4. Transaction ledger: Every crypto transaction is precisely logged in a digital ledger, providing a history of trade activities.
5. Price determination: Unlike fiat currencies, which have their value determined by governments, the value of cryptocurrencies is generally set by market demand, tracked, and updated in real time on crypto exchanges.

How Crypto Exchanges Work

Now that we’ve explained what crypto exchanges are, it’s vital to see how they operate. The mechanics behind these platforms can seem intimidating at first, but the basics are relatively straightforward.

Here, we walk you through the intricate details of crypto exchanges as we discuss order books and the market place in general, in other words, the where. Then we look at different types of exchange orders, or the how, and we round it off by discussing the what, or, different types of trading pairs and currencies, fees, and how to make transactions.

Order Books and Market Makers

When you decide to buy or sell crypto, your order goes into an order book, a real-time, continually updated list of buy and sell orders in the marketplace. Market makers place orders that add liquidity to the market, making it easier for market takers to trade crypto.

Order Types

Different types of crypto exchange orders include:

1. Market orders: Immediate buy or sell orders at the current market price.
2. Limit orders: Buy or sell a cryptocurrency only at a specific price or better.
3. Stop orders: An order that becomes active only after a specific price is reached.

Trading Pairs, Available Cryptocurrencies, and Fiat Options

Most crypto trades happen in pairs, such as Bitcoin and Ethereum, forming the trading pair BTC/ETH. However, the range of trading pairs an exchange offers depends on the availability of various cryptocurrencies on that platform.
A more extensive range of available cryptocurrencies gives traders the flexibility to diversify their portfolio, engage in arbitrage, or explore lesser-known altcoins. Additionally, many safe crypto exchanges also offer fiat deposits and withdrawals, as well as trading pairs with fiat currencies like USD or EUR.

Fee Structure

Every crypto exchange has its own fee structure. Generally, there are two types of fees—a maker fee for adding liquidity to the market, and a taker fee for taking liquidity away. The actual transaction fee is usually a small percentage of the trade volume.

Funding Your Account

Finally, a critical part of using an exchange is how you deposit and withdraw funds. Some exchanges accept direct bank transfers, debit and credit cards, e-wallets like PayPal, or even gift cards. You can also move crypto between digital wallets.

Features That Make Top Crypto Exchanges Stand Out

If you start searching for the best cryptocurrency exchanges, you’ll quickly realize that not all platforms are created equal. Below, we break down the key features you should look out for.

Seamless User Experience

Basic trading features include the ability to buy and sell cryptocurrencies. Look for an intuitive trading platform that offers a user-friendly interface, simple order books, and real-time price charts. For instance, the buy or sell process should be as easy as entering the amount and clicking a button.

Advanced Trading Features

These are meant for experienced traders. Crypto options exchanges offer advanced features like conditional orders, futures trading, detailed analytical charts, historical data, and back-testing capabilities. They can also offer algorithmic trading, allowing users to set complex trading parameters that execute automatically based on market conditions.

Margin Trading to Leverage Positions

Margin trading allows you to trade using funds provided by a third party. Unlike regular trading accounts, margin accounts enable traders to access additional funds, thereby leveraging their positions. However, it comes with higher risks, including the possibility of losing more than your initial investment.

Trading Platform Availability and Versatility

The best crypto exchanges not only offer multi-platform accessibility but also operate in numerous countries. This accessibility includes a web-based platforms, desktop apps, and mobile apps for trading on the go.

Customer Service That’s Got Your Back

A top-tier crypto exchange offers multiple customer support options, including live chat, email, and phone support. The response times should be fast, helping you resolve any issues you encounter.

Rock-Solid Security and Asset Storage

Security is the most important thing when trading digital assets. Reputable exchanges use a variety of security measures, such as encryption protocols, two-factor authentication, multi-factor authentication, and cold storage for safeguarding your assets and personal information.

Profitable Staking and Rewards

Some exchanges offer staking and rewards as an added benefit. Staking allows you to earn additional coins by holding and locking your cryptocurrency in a wallet to support the network’s operations.

Crypto Lending

Crypto lending features enable you to lend crypto holdings to other traders or the platform itself in return for interest. This provides an avenue for earning passive income on your cryptocurrency assets.

Mobile Trading

For those constantly on the move, the availability of crypto apps for mobile trading can be a decisive factor. These trading apps allow you to trade, check prices, and manage your portfolio right from your smartphone or tablet.

Types of Crypto Exchanges

When you’re looking to trade crypto, it’s essential to understand the types of crypto exchanges available. Generally, these platforms fall into two categories: centralized and decentralized exchanges. Let’s see what makes each type unique.

Decentralized Crypto Exchanges

Often reffered to as DEXs, decentralized crypto exchanges are the epitome of blockchain’s ethos—decentralization. These exchanges function without a central governing body, facilitating peer-to-peer trades directly between users, much like marketplaces. Your assets and personal information are under your control, providing an extra layer of privacy and security.

However, these exchanges may lack convenience, such as intuitive interfaces or a broad range of trading options, which are typically found in centralized platforms. Examples of DEXs are Uniswap and PancakeSwap.

Centralized Crypto Exchanges

In contrast, centralized crypto exchanges (CEXs) operate under a single entity that oversees all transactions. These platforms, which work similarly to brokerages, usually offer a smooth trading process with a wide array of trading pairs and advanced features. They often come equipped with enhanced user interfaces and customer support, making them a go-to choice for those new to the crypto market.

Nevertheless, this convenience comes at the cost of having to entrust your assets to a third party or private companies, which could make you susceptible to hacking risks. Well-known CEXs include Coinbase and Kraken.

Decentralized vs. Centralized Exchanges

Whether crypto traders prioritize security and control over liquidity and user experience will largely influence the choice between decentralized and centralized crypto exchanges. Here’s a quick rundown of the pros and cons of each option:

Decentralized Exchanges	Centralized Exchanges
DEXs are less susceptible to large-scale hacks.	Being centralized makes them targets of hackers.
Typically less user-friendly with fewer features	Intuitive interfaces, often with advanced trading features and analytics.
You have complete control over your funds and personal information.	The exchange controls your funds, not you.
May lack depth in trading books.	Wide range of supported crypto assets and trading pairs.
There’s usually no need for the KYC processes.	Mandatory KYC processes can be intrusive.
Generally no dedicated support team to assist you.	Robust support via email, chat, and sometimes phone.
Quick to list new and varied types of crypto assets.	Can have higher trading fees and hidden costs.
Transactions may be slower due to blockchain confirmations.	High trade volume and liquidity allow for quick and efficient trades.

Crypto Exchange Fees

A critical component of your cryptocurrency trading journey is understanding crypto exchange fees. With options ranging from crypto exchanges with no fees to platforms with complex fee structures, grasping the nuances can help you make smart decisions and find the cheapest crypto exchange for your trading needs.

Trading Fees

Let’s start with trading fees, which are the costs directly linked to buying and selling cryptocurrencies. These fees are often calculated as a percentage of your total trade volume. Some platforms add a twist by distinguishing between maker and taker orders, with maker fees usually costing less since they add liquidity to the market.
Be cautious of exchanges touting “zero fee” transactions; they often use spread-based pricing that can be more expensive in the long run.

Withdrawal Fees

If you’re planning to move your assets, withdrawal fees at crypto exchanges should be on your radar. These fees can differ widely depending on the cryptocurrency and the exchange in question. So, when you’re making a crypto exchanges fees comparison, don’t overlook the withdrawal fees; they can impact your total trading costs significantly.

Additional Fees

Beyond trading and withdrawal fees, some additional charges may lurk in the shadows. Engaging in margin trading? You’ll be charged fees for borrowing funds. Platforms like Coinbase and Gemini have higher fees for using their quick-buy features.
Using a credit or debit card for transactions? Beware of additional premiums from both your card issuer and the exchange. To sidestep some of these costs and get lower fees, consider using cash or wire transfers.

Network Fees

Finally, don’t forget about network fees, sometimes also known as miner fees. These are not set by the exchange but are necessary for processing transactions on a blockchain. While many centralized exchanges absorb this cost, decentralized platforms often pass it directly to the user.

How We Select the Best Crypto Trading Platforms

When it comes to pinpointing the top platforms in the crypto space, there are key elements we consider to rate crypto exchanges. The factors outlined below are not just buzzwords; they are fundamental for secure, efficient, and profitable trading.

Security Measures and Regulatory Compliance

While many platforms claim to be licensed crypto exchanges, not all of them meet rigid regulatory norms that ensure your money is as secure as it would be in a vault. On the flip side, fake crypto exchanges are ticking time bombs, often disappearing overnight with your funds.
That’s why security protocols such as two-factor authentication, multi-factor authentication, end-to-end encryption, and cold storage options are essential features to look for.

Sidestepping Dangers with Effective Risk Management

Exchanges employ multiple risk management practices to protect users from market uncertainties. This often includes advanced trade types like stop-loss orders, as well as transparency reports that showcase the health of the exchange’s fund reserves.

Customer Insights Through Reviews and Ratings

Top ratings can be misleading. We go beyond the stars, testing the apps, trading and platforms, and dissect customer reviews to gauge real-world issues such as withdrawal delays or software glitches. Verified user experiences from credible sources give you the real truth about what it’s like to trade on a particular platform.

Learn and Earn with Educational Resources

The most trusted crypto exchanges offer more than just blogs and how-to guides. Look for exchanges that offer live webinars, expert-led courses, and even one-on-one coaching. These are the platforms that truly invest in your financial literacy, equipping you to make better trades.

Trading Volume Speaks Volumes

Low trading volume might mean your big sell order could crash the price of a thinly traded asset. A high trading volume not only suggests the exchange is popular but also that it offers high liquidity, making it easier to buy or sell assets without affecting market prices. Plus, more volume often leads to tighter spreads, meaning you might get better deal prices.

Fee Structures and Trading Costs

Trading fees can eat into your profits, but the financial bite doesn’t stop there. You need to be aware of not just trading fees, but also withdrawal fees and any hidden charges. A transparent and reasonable fee structure is usually a good indicator of an exchange’s overall approach to customer experience.

Therefore, we examine the fee structures to ensure there are no unpleasant surprises. In essence, reputable crypto exchanges that we select offer the following significant advantages:

Enhanced security: Top-tier exchanges use state-of-the-art security protocols to protect your assets and personal information.
Regulatory compliance: A reputable exchange often follows strict legal guidelines, which improves safety of your funds.
Rich feature sets: Advanced trading tools, various types of orders, and a wide variety of supported cryptocurrencies are common features. This can offer you variety of options in the long run.
Transparent fee structure: No one likes hidden costs. Reputable crypto exchanges clearly state their transaction fees, maker fees, taker fees, and any other costs upfront.

Step-By-Step to Your First Crypto Account

1. Pick your cryptocurrency exchange wisely
   Choose an exchange that aligns with your needs. Go for licensed crypto exchanges with robust security measures.
2. Head to the sign-up section
   Once you’ve picked your exchange, find the “Sign Up” or “Register” button on the homepage and click it to get started.
3. Provide basic details
   You’ll be prompted to input some essential information like your email address and a strong, unique password.
4. Confirm your email address
   A verification link will be sent to the email you provided. Click that link to authenticate your email and proceed.
5. Undergo KYC and ID verification
   Most reputable exchanges will mandate a KYC process. This will usually require you to submit a government-issued ID and, in some cases, additional verification like a selfie.
6. Ramp up security with MFA
   Before trading, take another precautionary step by setting up multi-factor authentication. This serves as an additional security layer to protect your account.
7. Fund your account
   Navigate to the deposit area in your newly-created account and choose a payment method that works for you, whether it’s a wire transfer, credit card, or even another cryptocurrency.
8. Start trading
   Now that your account is all set up and funded, you’re ready to begin trading. If you’re a newbie, make sure to check out our educational channel, as well as utilize any learning materials the exchange offers to get a better understanding of the crypto market.

Overview of the Crypto KYC Process

KYC or Know Your Customer is far more than a compliance checkbox; it’s your first line of defense in ensuring that your funds won’t end up entangled in some shady business. While non-KYC crypto exchanges may lure you in with the promise of anonymity, the lack of oversight can be a double-edged sword. On the other side, a regulated crypto exchange with a robust KYC process minimizes these risks. Find an outline of the crypto KYC process below:

Get Started with Your KYC Verification

To initiate the KYC process, head over to the dedicated section usually labeled as “KYC Verification” or “Identity Verification” within your account dashboard. You’ll find a series of steps to follow, which will guide you through the verification process.

Submit Your Personal Information

During this phase, you’ll be asked for specific personal details to verify your identity. These details usually include your full name, date of birth, and address. Ensure that you enter these accurately, as they will be cross-referenced with your identification documents later.

Upload Your ID Documents

Next, you’ll be required to upload clear, legible copies of government-issued identification. This could be your passport, driver’s license, or a national ID card. Follow the on-screen instructions to capture or scan the required documents. Make sure that the images are clear and that all four corners of the document are visible.

Verify Your Identity with a Selfie

Yes, even crypto gets personal. Hold your ID next to your face and snap a selfie. The aim is to match the picture in your ID to your face, thereby ensuring that you are indeed who you claim to be.

Wait for Verification Status

After you’ve submitted all the necessary information and documents, you’ll need to wait for the exchange to review and approve your KYC details. This waiting period varies from one platform to another, but you’ll generally receive a notification once the process is complete.

Double Up on Security with 2FA

So you’ve passed KYC. Congrats! But you’re not done. Wrap up your security measures by enabling 2FA. This involves scanning a QR code or entering a unique string of characters into a 2FA app like Google Authenticator or, if you’re old-school, getting codes via SMS.
If, however, you’re tempted to opt for crypto exchanges without KYC for the sake of convenience, be aware that a layer of security and regulatory protection will be stripped down.

Crypto Depositing Done Right

After signing up, you’re probably eager to get trading. But first, you need to deposit some funds. We’re transforming this sometimes nerve-wracking operation into easy-to-follow steps.

1. Access Your Account

Start by heading to the official website of your chosen crypto exchange. Once there, locate the “Log In” or “Sign In” button, usually at the top-right corner of the page. Use the credentials you set up during your account creation.

2. Go to the Deposit Section

Upon successful login, you’ll land on your account dashboard. Here, look for a tab or menu option that says “Deposit,” “Wallet,” or “Funds.” It’s like your online piggy bank within the exchange, where your cryptos will reside temporarily.

3. Generate a Deposit Address

Once in the deposit section, you’ll have to specify which cryptocurrency you’re looking to deposit. Let’s say you choose Bitcoin; the exchange will then generate a unique deposit address for your Bitcoin transactions. This is essentially your crypto PO box where funds will be received.

4. Deposit the Desired Amount

Switch over to the external wallet holding your Bitcoin. There, paste the deposit address you just generated. Enter the amount of Bitcoin you’d like to send, making sure it’s above any minimum deposit requirements the cryptocurrency exchange has specified.

5. Confirm Your Transaction

After hitting “Send” on your external wallet, you’re not done just yet. It’s good practice to verify your transactions using a blockchain explorer. Simply paste your deposit address into the explorer to check the number of confirmations. Typically, you’ll need to wait for at least 3–6 confirmations, depending on the cryptocurrency.

6. Check Your Account Balance

Once the required confirmations are complete, your exchange account balance should update automatically. If you see the funds, congratulations! You’ve successfully deposited crypto into your exchange account.

7. Trade Safely by Following Our Tips

While we’re at it, never forget to triple-check the deposit address. One wrong character can send your funds into crypto oblivion. Be aware of minimum deposit thresholds to avoid unnecessary headaches. And if your funds are taking longer than expected to show up, don’t hesitate to reach out to customer support.