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What Are Cryptocurrency Exchanges?
Cryptocurrency exchanges are platforms where users can exchange one kind of digital asset for another.
Cryptocurrency exchanges are often confused with cryptocurrency brokerages, such as Coinbase.
Cryptocurrency brokerages also allow users to buy and sell a range of popular digital assets; however, they tend to have limited functionality compared to exchange platforms.
Cryptocurrency exchanges are more suitable for more serious investors as they tend to be more feature-rich and offer lower fees.
What to Consider When Picking the Best Cryptocurrency Exchanges?
The following factors should be taken into consideration when looking for the best cryptocurrency exchange.
Fees
All exchange platforms have their fee structure. Fees will typically include:
- Deposit fees
- Trading fees
- Withdrawal fees
Limits
Exchanges also employ limits to their accounts. Some accounts will have a limit on how the user can deposit or withdraw in a set period.
Security
Security is one of the most important factors when using an exchange. It’s essential to use a platform with a suitable security protocol.
Enabling 2fa on any exchange account you have is also recommended.
Regulatory Status
Exchanges need to comply with local regulations.
Anonymity
If you want to remain anonymous when purchasing or trading Bitcoin, finding an exchange that allows the user to trade cryptocurrency without completing KYC is necessary. As regulations have improved, this is a more challenging feature to find; some platforms still allow anonymous accounts.
Payment Options
Most exchanges accept the most popular payment methods; however, only some will let you deposit less conventional methods such as PayPal and other wallets. If looking to deposit through more non-conventional means, finding an exchange that accepts your payment method of choice is one of the most crucial factors.
Supported Coins
All exchanges list the major cryptocurrencies; however, the number of altcoins available for trading will depend on the platform.
PrimeXBT
PrimeXBT stands out in the crowded field of cryptocurrency trading platforms with its comprehensive suite of features designed to cater to both novice and seasoned traders. The platform distinguishes itself with the provision of up to 200x leverage on a wide array of assets, including a robust selection of cryptocurrencies, forex, and commodities. This high leverage offering empowers traders to maximize their trading potential, providing the opportunity to amplify returns on investment.
Additionally, PrimeXBT enhances the trading experience with its copy-trading service, allowing less experienced traders to replicate the strategies of seasoned professionals. This feature not only democratizes access to expert trading strategies but also serves as a valuable learning tool for traders looking to enhance their market knowledge.
Accessibility and affordability are at the core of PrimeXBT’s service offering. The platform supports a broad range of cryptocurrencies, making it a versatile choice for traders interested in diversifying their portfolios beyond the major coins. PrimeXBT’s global reach, serving traders in over 150 countries, underscores its commitment to providing a comprehensive trading platform to a worldwide audience.
However, it’s important for users to note the platform’s regulatory restrictions in certain jurisdictions, such as the USA and Canada, which may limit access to its services. Despite these restrictions, PrimeXBT’s commitment to security, user-friendly interface, and innovative trading features make it a competitive player in the global cryptocurrency trading space.
PrimeXBT Fees
| Fee Type | Amount |
|---|---|
| Trading Fees | 0.05% flat rate for all trades |
| Deposit Fees | Free |
| Withdrawal Fees | Variable, depending on the asset and network conditions |
PrimeXBT’s fee structure is designed with transparency and simplicity in mind, ensuring traders can manage their investments without concern for hidden costs. The platform’s competitive trading fees, combined with free deposits, make it an attractive option for traders looking to maximize their earnings. While withdrawal fees vary depending on the cryptocurrency and the current state of the network, PrimeXBT strives to keep costs low, enhancing the overall trading experience for its users.
Binance
Binance launched back in 2017, and since then, it has become the most popular cryptocurrency exchange in the world. The company has become popular among investors due to the low fees and many cryptocurrencies supported by the platform.
It also has a newbie-friendly lite version of its site and apps which is ideal for inexperienced users. Binance Lite is set as the default version and only once you are ready to go deeper in the crypto rabbit hole, you can switch to Binance Advanced in the app’s settings.
Fees
Binance boasts some of the lowest fees in the cryptocurrency space; they charge the following payments:
Trading Fees
| Level | Trade Volume | &/or | BNB Balance | Maker/Taker | Maker/Takaer (BNB 25% off) | Maker/Taker (BNB x Referall 25% off x Kickback 20% |
| 0 | < 50 | & | ≥ 0 | 0.1000/0.1000 | 0.0750/0.0750 | 0.0600/0.0600 |
| 1 | ≥ 50 | or | ≥ 50 | 0.0900/0.1000 | 0.0675/0.0750 | 0.0540/0.0600 |
| 2 | ≥ 500 | or | ≥ 200 | 0.0800/0.1000 | 0.0600/0.0750 | 0.0480/0.0600 |
| 3 | ≥ 1500 | or | ≥ 500 | 0.0700/0.1000 | 0.0525/0.0750 | 0.0420/0.0600 |
| 4 | ≥ 4500 | or | ≥ 1000 | 0.0700/0.0900 | 0.0525/0.0675 | 0.0420/0.0540 |
| 5 | ≥ 10,000 | or | ≥ 2000 | 0.0600/0.0800 | 0.0450/0.0600 | 0.0360/0.0480 |
| 6 | ≥ 20,000 | or | ≥ 3500 | 0.0500/0.0700 | 0.0375/0.0525 | 0.0300/0.0320 |
| 7 | ≥ 40,000 | or | ≥ 6000 | 0.0400/0.0600 | 0.0300/0.0450 | 0.0240/0.0360 |
| 8 | ≥ 80,000 | or | ≥ 9000 | 0.0300/0.0500 | 0.0225/0.0375 | 0.0180/0.0300 |
| 9 | ≥ 150,000 | or | ≥ 11,000 | 0.0200/0.0400 | 0.0150/0.0300 | 0.0120/0.0240 |
Deposits and Withdrawals
Deposits are free and withdrawals vary on the asset; for a full list of fees see here.
Cex.io
CEX.IO is one of the oldest surviving Bitcoin exchanges. The company formed way back in 2013 and has over 3 million members. CEX has a mixed reputation in the cryptocurrency space; negative reviews focus on customer support rather than the actual platform.
Fees
Trading fees
| Monthly Volume (BTC) | Maker Fees | Taker Fees |
| ≤ 5 | 0.25 | 0.16 |
| ≤ 30 | 0.23 | 0.15 |
| ≤ 50 | 0.21 | 0.13 |
| ≤ 100 | 0.20 | 0.12 |
| ≤ 200 | 0.18 | 0.10 |
| ≤ 1000 | 0.15 | 0.08 |
| ≤ 3000 | 0.13 | 0.04 |
| ≤ 6000 | 0.11 | 0.00 |
| > 6000 | 0.10 | 0.00 |
Deposit and Withdrawal Fees
Deposit and withdrawal fees will depend on the payment method used; they range from 0% to 2.99%; for a full list of fees see here
Limits
Account limits on CEX are dependent on account level; the following table outlines the different account levels on offer:
| Level | Deposit Limit | Withdrawal Limit |
| 1 | 3000 | 10000 |
| 2 | 10000 | 10000 |
| 3 | No Limits | No Limits |
| 4 | No Limits | No Limits |
Security
CEX has a high-security level; they use cold storage solutions, protecting customer funds from hackers. Additional security protocols such as 2fa are also available.
The company also offers free insurance on deposits of up to $250,000 for US residents, something to consider if you are from the US.
Anonymity
Customers must complete KYC to trade on the platform.
Payment Options
CEX allows users to take advantage of a variety of payment methods; these include:
- Visa
- Mastercard
- Epay
- Advcash
- Skrill
- Bank transfer
- Ach
- Sepa
- Faster payments
- Qiwi
Supported Cryptocurrencies
CEX allows for trading of the most popular cryptocurrencies; however, they lack a diverse range of alt-coins and only support a handful of the lesser-known tokens.
Overview
Pros
- Low fees
- Lots of payment options
- Good security
Cons
- Lacking in different cryptocurrencies
- Not the best customer support
- KYC required
Kraken
Kraken is a popular exchange based in the US. The platform launched back in 2011 and has positive reviews in the cryptocurrency space.
Fees
Trading fees
There are several tiers on offer; accounts that trade more get lower fees.
| 30 Day Volume (USD) | Maker | Taker |
| 0 – 50,000 | 0.16 | 0.26 |
| 50,001 – 100,00 | 0.14 | 0.24 |
| 100,001 – 250,000 | 0.12 | 0.22 |
| 250,001 – 500,000 | 0.10 | 0.20 |
| 500,001 – 1,000,000 | 0.08 | 0.18 |
| 1,000,001 – 2,500,000 | 0.06 | 0.16 |
| 2,500,001 – 5,000,000 | 0.04 | 0.14 |
| 5,000,0001 – 10,000,000 | 0.02 | 0.12 |
| 10,000,001+ | 0.00 | 0.10 |
Deposit and withdrawal fees
Deposit and withdrawal fees are free for most payment methods, for a full list of withdrawal fees see here.
Limits
Cryptocurrency limits
| Level | Daily Deposit Limit | Daily Withdrawal Limit | Monthly Deposit Limit | Monthly Withdrawal Limit |
| Starter | Unlimited | 5,000 | Unlimited | Unlimited |
| Intermediate | Unlimited | 500,000 | Unlimited | Unlimited |
| Pro | Unlimited | 10,000,000 | Unlimited | Unlimited |
Fiat currency limits
| Level | Daily Deposit Limit | Daily Withdrawal Limit | Monthly Deposit Limit | Monthly Withdrawal Limit |
| Starter | 0 | 5,000 | 0 | 0 |
| Intermediate | 100,000 | 500,000 | 500,000 | 500,000 |
| Pro | 10,000,000 | 10,000,000 | 100,000,000 | 100,000,000 |
Security
Kraken boasts a world-class security team. All sensitive customer information undergoes encryption at rest at both the system and data level.
They also make use of cold storage to keep customer funds secure.
Other security features include:
- 2-factor authentication
- Email confirmations for withdrawals
- Responsive customer support
Anonymity
Customers must complete KYC before using their account.
Payment Options
Kraken offers a wide range of payment options, they accept the following:
- FedWire
- Swift
- Signet
- SEN
- SEPA
- Wire Transfer
- Bank Transfer
- BACS
- primeCHAPS
- SIC
Availability of each payment method will vary by region.
Supported Coins
Kraken supports all of the most popular cryptocurrencies alongside a good range of altcoins, with the platform hosting over 50 tokens in total; although this is not the most comprehensive list of tokens, most users should find the tokens they are looking for.
Overview
Pros
- Good security
- Low fees
- High limits when fully verified
Cons
- KYC required
Kucoin
Fees
Trading Fees
| Level | Min. KCS Holding Last 30 Days | Monthly Trading Volume BTC | Maker/Taker | KCS Pay Fees Maker/Taker | Daily Withdrawal Limit BTC |
| 0 | 0 | < 50 | 0.1/0.1 | 0.08/0.08 | 200 |
| 1 | 1000 | ≥ 50 | 0.09/0.1 | 0.072/0.08 | 200 |
| 2 | 10,000 | ≥ 200 | 0.07/0.9 | 0.056/0.072 | 200 |
| 3 | 20,000 | ≥ 500 | 0.05/0.08 | 0.04/0.064 | 200 |
| 4 | 30,000 | ≥ 1000 | 0.03/0.07 | 0.024/0.056 | 200 |
| 5 | 40,000 | ≥ 2000 | 0.00/0.07 | 0.00/0.056 | 500 |
| 6 | 50,000 | ≥ 4000 | 0.00/0.06 | 0.00/0.048 | 500 |
| 7 | 60,000 | ≥ 8000 | 0.00/0.05 | 0.00/0.04 | 1000 |
| 8 | 70,000 | ≥ 15,000 | -0.005/0.045 | -0.005/0.036 | 1000 |
| 9 | 80,000 | ≥ 25,000 | -0.005/0.04 | -0.005/0.032 | 2000 |
| 10 | 90,000 | ≥ 40,000 | -0.005/0.035 | -0.005/0.028 | 2000 |
| 11 | 100,000 | ≥ 60,000 | -0.005/0.03 | -0.005/0.024 | 3000 |
| 12 | 150,000 | ≥ 80,000 | -0.005/0.025 | -0.005/0.02 | 3000 |
Deposit and Withdrawal Fees
Deposits to KuCoin are free, withdrawal fee varies by coin https://m.kucoin.com/vip/fee
Limits
Account limits will depend on the KYC level of the account. Account limits are shown in the table below:
| KYC Level | Withdrawal Limit (Daily) |
| Unverified | 5 BTC |
| Level 1 | 5 BTC |
| Level 2 | 200-3000 BTC |
Security
KuCoin has had security issues in the past; however, they now use cold storage solutions to safeguard customer funds.
Additional security options such as 2fa are available.
Anonymity
Non-KYC accounts are available; however, verification gives higher limits and helps keep the account secure.
Payment Options
- Paypal
- Wire Transfer
- Interac
- Visa/Mastercard
- SEPA
- ApplePay
Supported Coins
KuCoin supports all the most popular cryptocurrencies along with a diverse range of altcoins. Customers may still have issues trading some of the lesser-known tokens
Overview
Pros
- Low fees
- Wide range of payment methods
- Anonymous accounts available
- Secure
Cons
- Not the largest range of tokens available
- Security issues in the past
Coinmama
Unlike the other platforms mentioned, Coinmama is a broker exchange. The platform is not suitable for people interested in trading. The platform is more suited for anyone looking for an easy way to buy cryptocurrency.
Fees
Coinmama calculates buy order fees based on the XBX + 2% (standard deviation) plus a commission fee up to 3.90%.
Additional fees:
- Credit/debit card: 5%
- SEPA bank transfer: No additional fee
- SWIFT bank transfer: No additional fee for orders above $1,000; there is a $20 fee for any orders under $1000
Coinmama calculate sell order fees based on the XBX Index average + 2% (standard derivation) + a sell fee of 0.10-0.90%.
Coinmama will apply the following automatic fee calculations depending on whether you’re a Crypto Curious, Enthusiast, or Believer.
Curious: 2.9%
Enthusiast: 2.5%
Believer: 2.1%
Limits
| Level | Max Lifetime Buy | Daily Buy (Credit Card) | Daily Buy (Bank Transfer) |
| Level 1 | 15,000 | 5,000 | 12,000 |
| Level 2 | 50,000 | 5,000 | 30,000 |
| Level 3 | 1,000,000 | 7,000 | 30,000 |
Security
Coinmama doesn’t allow users to store cryptocurrency on the platform. Users will need an external wallet to receive the cryptocurrency they purchase.
Anonymity
Users are required to complete KYC before using the platform.
Payment Options
- Credit card
- Debit card
- Apple Pay
- Bank transfer
Supported Coins
The following coins are available on Coinmama:
Overview
Pros
- Easy to use
Cons
- Lacking in cryptocurrencies
- Higher fees than exchange platforms
Read also:
- Best Anonymous Bitcoin Exchanges – No KYC
- Best American Crypto Exchanges – US Residents Are Allowed Here
Conclusion
In conclusion, cryptocurrency exchange platforms provide investors with improved functionality and lower fees than broker exchange platforms. Each platform has its own unique features that may make it suitable for one investor and less suitable for another. Our pick for the best bitcoin exchange for beginners is Binance; the comprehensive list of cryptocurrencies on offer, along with its standout fees and ease of use make it the best bitcoin exchange for beginners getting started in the cryptocurrency space
FAQs
How to pick the best crypto exchange for yourself?
The best cryptocurrency exchange for an individual will depend on factors such as:
- Fees
- Limits
- Security
- Regulatory Status
- Anonymity
- Payment Options
- Supported Coins
What is the difference between a crypto exchange and a brokerage?
Cryptocurrency brokerages allow users to buy and sell a range of popular digital assets; however, they tend to have limited functionality compared to exchange platforms.
Cryptocurrency brokerages are ideal for first-time buyers.
Exchange platforms are best for people more invested in cryptocurrency.
Are all the top cryptocurrency exchanges based in the United States?
No, not all cryptocurrency exchanges are based in the United States; in fact, many popular options operate from other parts of the world.
What makes an exchange suitable for beginners?
Ease of use and security are perhaps the most important factors for beginners; we recommend using Binance to have a user-friendly interface and excellent protection.
What types of exchange are there?
Many different kinds of exchange exist, the main platforms tend to be:
- Brokers
- Centralized Exchanges
- Decentralized Exchanges
