What is the best cryptocurrency exchange?
What is a cryptocurrency exchange?
A cryptocurrency exchange is a platform where you can operate with cryptocurrencies and digital assets . That is, Launchpad development services can buy, sell, exchange and also make other types of investments such as staking your coins or access crypto loans. And from exchange houses for cryptocurrencies, exchanges have evolved into more complete investment platforms . Of course, only on digital assets.
Even so, remember that if, in addition to investing in cryptocurrencies, you also want to buy shares, funds or ETFs from the same platform, what you will need is a broker.
The 5 best exchanges to buy cryptocurrencies
Let’s see the ranking of the best exchanges to invest in cryptos:
1) Bit2Me
2) Coinbase
3) Kraken
4) Binance
5) Kucoin
Bit2Me
Bit2Me is the Spanish exchange par excellence. Far from the large cryptocurrency platforms in terms of market volume, it stands out precisely for its customer service and security.
The exchange was born in 2014 as a platform for the purchase, sale and exchange of cryptocurrencies, but has expanded its offering with the possibility of staking with 37 crypto assets and services such as Bit2me Pay, which works like Bizum.
At a regulatory level, it is the first exchange registered with the Bank of Spain as a provider of virtual currency exchange services for fiat currency and custody of electronic wallets and follows all European regulations.
Coinbase
Coinbase is the second largest exchange in the world by trading volume according to CoinMarketCap. Founded in 2012, it remains headquartered in San Francisco and currently employs more than 4,900 people worldwide. The success of the Launchpad development Company led it to go public in 2021 , which is an added point in terms of security.
Coinbase is one of the best platforms to get started in the world of cryptocurrencies: simple, intuitive and very manageable .On the other hand, by targeting a less experienced audience, you can afford higher commissions . And the fact is that the novice investor normally values simplicity over costs.
Kraken
Kraken is a classic within the sector. Created in 2011, at the time it was serious competition for Binance and Coinbase among those looking for a less commercial exchange, more focused on operations and more transparent.
Kraken has been improving its interface and making it more user-friendly . For the most advanced users, it has a Pro version. What has not changed is a commitment to a transparent and very tight commission system, as well as security within the platform. So much so that 95% of assets are in cold storage . This exchange is more oriented towards traders in crypto assets , and although it allows staking, it has advanced investment tools with Kraken Pro. In addition, it allows investing in futures and leverage.
Binance
The absolute king of the sector in terms of volume of traded assets. Binance is the largest and most important exchange in the world. So much so that its native token, BNB , is the fourth largest in terms of market capitalization. Binance also has tight commissions as another of its advantages. Among the cons, the commission system itself, not as transparent, like the platform. Added to this are the different regulatory problems it has had in different countries, especially the United States and the United Kingdom. These problems do not stem from its security, but rather from the SEC’s belief that it operated as an unregulated business.
Kucoin
Created in 2017, KuCoin is one of the best-rated exchanges by CoinMarketCap to invest in spot, but it is far from the most important in terms of traded volume. The platform stands out for the number of cryptocurrencies it works with , as well as the variety of services, very focused on trading . Thus, it allows margin operations, works on futures, includes staking and its own NFT market.
How does a cryptocurrency exchange work?
A centralized “crypto exchange” works , fundamentally, in the same way as classic asset exchange platforms, the difference is what is traded, in this case “crypto launchpad development” pairs (LTC/BTC) or “crypto”/ fiat (BTC/USD) the high volatility of these pairs is what generally attracts users to trading platforms.
These platforms generate income in various ways, although the most important are commissions on trading volume (generally calculated over 30 days), they also obtain income in the following ways:
- Deposit and withdrawal fees for fiat or cryptocurrencies, although they are less important and less common
- Offering “margin lending” and leverage services , which charge you an interest rate and/or a percentage of the profits.
- Premium rates that allow you to reduce commissions, more data, advanced options and similar issues.
There are two types of basic operations, limit orders and market orders . In this way, limit orders are those that provide liquidity to the market , which is why it is called a “ maker “ operation, on the contrary, market orders withdraw liquidity, hence “ taker “. For example, putting your cryptos for sale at a certain price is a “maker” operation, selling them at the market price is a “taker” operation. Generally the “maker” commissions are lower, it is a way to encourage the provision of liquidity to the market.
