Many investors are desperate to find a way to invest in cryptocurrencies. You can’t buy cryptocurrencies via a regular brokerage account, and your local bank won’t accept Bitcoin for a deposit (yet).
I prepared a list of the best cryptocurrency exchanges. It would help if you used to get your first cryptocurrency coins.
While I expect this to change quickly, cryptocurrency investors and speculators remain forced to utilize specialized cryptocurrency exchanges to buy and sell.
While there’s a new bitcoin futures market tradeable via some conventional futures brokers, the market remains very thinly traded, with higher margin requirements.
This and the relatively heavy vetting required for trading futures make them acceptable for very active and professional investors.
And, of course, the fact that futures are bitcoin-only eliminates access to the large selection of different opportunities in currencies such as Ethereum and Litecoin.
Detractors still refer to bitcoin and others as fanciful coins despite the burgeoning rates of approval, and of course, their monster gains. Among the reasons for the cynicism is that cryptocurrencies trade on unregulated and frequently international exchanges.
The fact that Tokyo-based Mt. Gox, the greatest cryptocurrency exchange at the moment, lost $450 million worth of clients’ bitcoin and descended into bankruptcy only served to fuel the negative opinion.
Luckily, there hasn’t been a high-profile exchange collapse since the 2014 Mt. Gox hacking. Please make no mistake; this doesn’t necessarily mean it can not happen again.
I believe exchange risk to be the maximum risk facing investors in significant cryptocurrencies.
The best approach to mitigate exchange risk is diversifying your holdings across many reputable exchanges.
I use three cryptocurrency exchangers, and everyone has a different protocol for investing.
This guide will present you with the best cryptocurrency exchanges, what they provide, and the process for purchasing your first cryptocurrency.
Coinbase is the greatest cryptocurrency exchange market, boasting over $20 billion in trading volume and more than 10 million registered users in 32 countries, and $6.0B in digital currency exchanged.
This cryptocurrency exchange company provides access to Ethereum, Litecoin, bitcoin, and bitcoin cash. It had been rumored that Ripple would be available on the platform early in 2018, but the company has said that it has no such intentions.
Coinbase exchanger has its cryptocurrency wallet with Android and iOS apps as well.
Coinbase also offers an active trader platform called GDAX, with various features and analytics for short-term crypto investors.
It’s relatively simple to establish an account and purchase your first cryptocurrency on Coinbase. The exchange is among the very few that permit the purchase of cryptocurrencies through U.S. dollars.
Your account is installed by clicking on the “Sign up” button on the website’s top right-hand corner. Next, you fill in the requested personal information, agree to the user agreement, and then click on the “create account” button.
You’ll then have to confirm your email and select your account type. Most of you will choose an individual account unless you decide to get your crypto in a different thing, like an LLC.
You’ll be asked to enter your telephone number. This isn’t so the market can call you to indicate upgrades or sell them to a phone solicitor. The reason is a lot more critical.
Your telephone number is used as a two-step authentication security system to help keep your account safe. When you log in to your account, Coinbase will text a code number to your phone that has to be used for logging in to your account.
Your username, password, and text create a powerful barrier against hackers accessing your accounts.
Next, you’ll be asked to confirm your identity by uploading a photograph of a passport, driver’s license, or photo ID.
Finally, connect your financing method, a bank account, or debit/credit card into your account. Coinbase confirms funding methods using a small, reimbursed fee to your account.
Now you’re ready to create your first order!
Changelly is one of the simplest ways of getting ahold of different cryptocurrencies. Changelly is a product of the mining pool, MinerGate, which has an established history of consistently great products being put out into the crypto-space.
Among the most extraordinary things about Changelly is that you don’t have to go through any lengthy confirmation or registration procedure.
You log in with your email ID (or some other email ID) and begin exchanging! Currently, it supports over 35 cryptocurrencies together with fiat pairs like USD/EUR. It’s one of the very best and easiest to use exchanges on the market.
When you use Changelly to swap cryptocurrency, Changelly bots join in real-time into some of the very best and most economical cryptocurrency exchanges in the marketplace to get you the very best price.
Usually, when using Changelly, a crypto-to-crypto exchange takes 5 to thirty minutes. They charge a commission fee of 0.5 percent on every trade, which I presume is minimum in exchange for the volatility and risk they keep on behalf of the users.
Besides this commission, a miner’s fee can also be paid by the consumer and is deducted directly from their crypto balance.
But all you need to purchase from Changelly is a VISA/MasterCard (credit/debit card) or some other Changelly-supported cryptocurrency and a wallet in which you need to get your new coins.
Gemini is a market launched by the Winklevoss Twins of Facebook fame. The account setup is exceptionally similar to Coinbase, but the market is unavailable in individual states.
Though you can exchange bitcoin and Ethereum on Gemini, the market provides FDIC insurance for money balances. This is a rarity, I believe, a huge positive in the realm of cryptocurrency websites. Unfortunately, there’s no insurance when your money is converted to digital assets.
Kraken is an actual digital currency market offering 17 distinct cryptocurrencies for trading. There’s a three-plus level approval process with every degree more demanding than in the past.
The first two levels are incredibly similar to the measures of the above exchanges. Being approved for level 1 or 2 permits full use of this exchange, but there isn’t any funding via U.S. dollars. You will need to move to cryptocurrency out of your wallet or another exchange to make trades on Kraken.
Reaching the third degree requires all the measures for the first two trades, plus a selfie photograph of yourself holding a handwritten sign with the date and “for trading cryptocurrency on Kraken just” on it. Doing so reminded me of most wanted criminal flyers in the local post office.
What I enjoy about Kraken is that it offers the red-hot money payable. There are hardly any exchanges offering Ripple that likewise accept USD, making Kraken one of my favorite exchanges.
Gate is a promising cryptocurrency exchange that offers all major coins. They also have a functional mobile app and let you trade cryptocurrencies on the move. Again, they are running a promo where they are offering a 10% discount on trading fees.
This exchanger offers multiple trading pairs such as BTC Market, ETH Market, USDT Market, QTUM market. The mobile app is decent for trading on the move. You can also deposit or withdraw funds using the mobile app.
Things to consider
Outsized dangers exist in each cryptocurrency and exchange. Only use the money which you can afford to lose when investing in cryptocurrency.
Consider cryptocurrency investing more like speculation than fundamental investing. Together with the high risk, enormous gains can also be made. From the crypto world, the risk does equal benefit.
Action To Take
Get in the game! Open an account with one or more of the above exchanges and purchase your first cryptocurrency.