Last Updated on Jan 25, 2022 by James W
Digital currency exchange platforms are indispensable in performing crypto transactions. This service uses the standard of a platform that enables you to buy shares on the stock market, except that it allows you to exchange digital currencies like Bitcoin, Ether, Dogecoin, and others. In this article, we will outline different digital currency exchange platforms to help you decide the one most suitable for your needs.
We have researched and analyzed the players on the market, compared their offers, and tested them extensively to tell you about some of the best cryptocurrency exchanges in 2022. Below, we are going to go into detail on each of the platforms that have marked us the most.
What is digital currency?
Digital currency is virtual currency or an electronic exchange instrument that can buy or sell goods or services. It is not a physical currency that you can hold in your hand, but a virtual and online currency.
Examples of digital currency include Bitcoins, Litecoins, and Dogecoins. These currencies have slightly different unique characteristics; they are not controlled by any central bank or country and can be traded anonymously from person to person. There are ways to track Bitcoin payments, but these are not very common and require a little a brief investigation to find out who may have made the transaction.
Among the key principles associated with these digital currencies, the argument that transactions are secure because of the cryptography used to prevent double-spending, counterfeiting or theft is often highlighted. They are anonymous and can cross-country borders and governments without interference.
Crypto Exchange What Is It? Definition
Also called Exchange, a cryptocurrency exchange platform facilitates transactions between cryptocurrencies. Concretely, it allows the purchase, sale, and exchange of tokens. We will discover more information in this cryptocurrency guide.
Digital Currency Exchange Vs. Digital Currency Purchase
We must distinguish 2 types of exchanges:
Purchasing Platforms
These are the platforms that allow you to buy your first cryptos against euros or dollars. You, therefore, have the possibility of depositing fiat currencies on these platforms.
There are quite a few because they require quite complex bank accreditations.
Exchange Platforms
All exchanges carried out are between cryptos. We exchange a crypto-currency A for a crypto-currency B. It is impossible to deposit fiat, while it is possible to deposit stable coins such as USDT or DAI.
All our reviews, tutorials, and other important articles on these platforms are grouped in this category.
Here are the ones that may interest you:
The Best Digital Currency Exchange
#1. Binance: Vast Choice of Cryptos
Founded in July 2017 by Changpeng Zhao, Binance quickly established itself as one of the world’s top crypto buying and trading platforms during the famous bull-run of 2017.
Attracting many new traders amid the cryptocurrency explosion, Binance rose to the top spot among traditional exchanges in the space of a few months and continues to have the wind in its sails today.
It is a complete exchange that allows crypto-to-crypto and crypto-to-fiat exchange. You will therefore be able to buy your first cryptos with euros and they will be directly usable for your trading.
The exchange notably integrates pairs with the euro and allows the purchase of cryptocurrencies with, among others, the Swiss franc, the pound sterling, or the Russian ruble. So you can quickly trade some of the most important cryptocurrencies directly with the fiat currency of your choice.
There is no deposit limit and there are no fees when you deposit with a SEPA transfer. Your daily withdrawal limit depends on your level of verification.
This platform has all the criteria you want to see on a top exchange: a clean and functional interface, an extremely fluid site that can manage up to 1,400,000 buy and sell orders per second, a professional and dynamic team that is constantly innovating, responsive and efficient support, very low transaction costs.
The base fee is set at 0.1% per transaction, which is low compared to the competition. Even better, if you own BNB (Binance Coin), the platform’s utility token, your fees can be paid with it and will be 0.075% per transaction.
Binance is growing rapidly in many areas. The company invests heavily in the development of blockchain technology and advocates for the adoption of cryptocurrencies across the world.
#2. Bitcoin Mercantile Exchange (BitMEX)
BitMEX platform has become the leading crypto-currency margin-trading site by its volume traded (nearly 40%!). It was founded in Seychelles by HDR Global Trading Limited. It was then a resounding success because of its ease of access, its impressive leverage effects (which can reach x100), and its derivative products (contracts). You will not directly trade cryptos on this site but derivatives. This allows greater flexibility, both legal and economic. Be careful, this kind of product is not recommended for beginners. The risk of loss is extremely high.
#3. Coinbase
The Coinbase platform, founded in June 2012 by Brian Armstrong and Fred Ehrsam, is a cryptocurrency exchange (exchange) platform for buying, selling, and storing bitcoins, ethers and Litecoins. In 2016, Coinbase reached the second position in the Richtopia ranking of the 100 most influential organizations in the blockchain. In May 2017, the platform reached a record number of over 7,400,000 users in 190 countries. Its clean interface, and its fast payment methods (via credit card in particular) make this crypto-stock market the most accessible platform for beginners.
The platform has never been hacked and guaranteed its users’ funds up to a certain amount, close to $10,000. These reasons make us recommend Coinbase for the purchase of bitcoins and cryptocurrencies.
#4. eToro
eToro is a broker created in 2007 in Cyprus. They built it as a “social trading network”, meaning that it is possible to post messages and like or comment on messages written by millions of other users. eToro is a broker, so it acts as an intermediary between the markets and its users. Exchanges like Binance or Kraken are direct meeting places between supply and demand. This means that eToro is an additional intermediary, which makes it possible to invest in an asset.
eToro is not “outrightly” an exchange, so it is not possible to exchange Bitcoin for Litecoin, and it will also be impossible to withdraw bitcoins or any other cryptocurrency from the site. Rather, you can resell them for dollars beforehand. The eToro platform offers the purchase of CFDs which you can trade and speculate on, but cannot (currently) transfer these cryptocurrencies outside of eToro. You can therefore trade and speculate on the value of currencies, but you will not hold your assets and cannot store your crypto on an external wallet. However, it is important to specify that the eToro site manages forks, which is an excellent thing.
The eToro broker is known as a site that emphasizes training beginners through implementing several trading tools. Its copy trading feature to copy the positions of experienced successful traders is very popular in the trading community.
#5. Kraken
Kraken is a cryptocurrency exchange platform (an “exchange”) that allows you to convert fiat currency (euros, dollars, etc.) into bitcoins but also into other known cryptocurrencies. It was founded in 2011 by Jesse Powell and is based in San Francisco. Today, it is one of the largest platforms in the market in terms of volume. It has an excellent reputation and is very popular in Europe.
Unlike other platforms like Coinbase, Kraken is a marketplace, meaning it connects you with other people who want to sell or buy cryptocurrencies instead of selling or buying them directly to you.
Kraken offers a fairly substantial choice for both traditional currencies and crypto-assets. The fiat currencies present are the euro (EUR), the American dollar (USD), the pound sterling (GBP), the Canadian dollar (CAD), and the yen (JPY). The crypto-assets are Bitcoin (XBT), Bitcoin Cash (BCH), Ether (ETH), Ether Classic (ETC), Litecoin (LTC), Eos (EOS), Ripple (XRP), Stellar Lumen (XLM), Cardano Ada (ADA), Dash (DASH), Monero(XMR), Tez (XTZ), Zcash (ZEC), Dogecoin (XDG), Qtum (QTUM), as well as three ERC-20 tokens which are Gnosis (GNO), Augur’s reputation token (REP) and the Melon (MLN). Added to this list is the stablecoin Tether USD (USDT).
Conclusion
We believe that you have known a few digital currency platforms with which you can work. The opportunities out there in the crypto world are alarmingly irresistible, and anyone who is not taking advantage of them is simply not making good plans for their future. If you are interested in cryptocurrencies, the secret to success is getting the right information. Consider reading this article about Cryptocurrency Exchange Software.
