5 Best Cryptocurrency Exchanges for Beginners

What is a Crytocurrency Exchange?

Before we review the 5 best cryptocurrency exchanges we will first define what a cryptocurrency exchange is, according to Wikipedia.

cryptocurrency exchange or a digital currency exchange (DCE) is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies. A cryptocurrency exchange can be a market maker that typically takes the  as a transaction commission for is service or, as a matching platform, simply charges fees.

best cryptocurrency exchange for beginners

Types of exchanges

  • Trading Platforms – These are platforms that connect sellers and buyers and take a fee from each transaction. Fees vary for every platform. However, platforms that have their own tokens/coins such as Binance and Kucoin, deduct trading fees from your respective token balance, if you have their tokens. E.g. Binance will deduct BNB coins as a transaction fee, IF you have the coins.
  • Direct Trading – These types of exchanges provide direct person to person trading where people from different countries can exchange currency. Direct trading platforms have a fluctuating market price, instead, exchange rates are based on each seller’s preference.
  • Brokers – These platforms have rates fixed by the brokers. So an individual would buy cryptocurrencies with predetermined prices. Cryptocurrency brokers are similar to foreign exchange dealers.

The following criteria for the 5 best cryptocurrency exchanges was applied, based on 4 factors:

 
  1. Interface.
  2. Transaction speed.
  3. Fees
  4. Support
 

Interface

Here we’ll be looking at the layout of certain functions within the exchange. Are they inline with the general standards? In other words do they conform to the international standards based on other similar platforms? How complex, or easy, is it to interact with the platform from the user’s point of view?

Is it beginner friendly? Can you easily navigate through the platforms intuitively without having to be computer savvy?

 

Transaction Speed

This next factor played a huge role in rating the 5 best cryptocurrency exchanges. This is mainly because Speed of transaction is one of the elements that drove the masses into crypto. Moving away from the traditional setting where you have to wait for days or ridiculous hours to receive your funds to receiving them almost instantly is a big requirement for many.

That is what drove us to cryptocurrency after all, ease of use, speed of transactions, cost of transactions/fees, decentralization, amongst other things.

 

Fees

One thing that as a beginner you might not be aware of or can easily take for granted are fees. Some exchanges are more expensive than others, and the ones are expensive can be REALLY expensive. This includes not only trading fees from within the platform but also sending and receiving of assets.

 

What I have noticed is that some exchanges charge a higher fee for sending, esp. Bitcoin, so you can receive your Bitcoin much quicker on the other hand. Essentially this means they pay miners a significant amount of mining fees in order to prioritize your transaction. So when reviewing this needs to be taken into account.

 

Support

Last but not least when reviewing the 5 best cryptocurrency exchanges I considered support as well. This is very important because as a client you want to know that your query will be handled as soon as possible, and that you will indeed get help. Some exchanges make this process even easier by having chat agents on the site itself. This makes your experience so much as a beginner.

 

One of the things that frustrate the living hell out of me is sending an email, as the common channel, and it takes 3-4 weeks for support to get back to you. As ridiculous as that may sound, you do find such platforms. Poor customer support is a big no no for me, no matter what the excuse is. If you are swamped, hire more staff.

 
You May Also Like: Stay Away from these Six Bitcoin Scams
 

Take Note!

No one exchange ticks all the requirements above 100%, but they are very close, with one or two things they could improve on.

The exchanges are rated from 1 to 5. 1 Being the best crypto exchange and 5 being the last one on the best cryptocurrency exchanges list. These are:

 
  1. Binance 2. Coinmama 3. Coinbase 4. Luno 5. Localbitcoins
 

5 Best Cryptocurrency Exchanges

NameMethod of DepositFiat CurrenciesSupported Cryptocurrencies Trading Fees
/
Deposit and Withdrawal Fees
SupportExtra Features
Cryptocurrency
Credit card
USDBTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, & 80+ moreTrading Fee: 0.1%

Deposit Fee: None

Withdrawal Fee: Varies
Email: support@binance.zendesk.com
Telegram: https://t.me/binanceexchange
Twitter: https://twitter.com/binance
BNB Tokens
App Wallet
best cryptocurrency exchangesCash
Credit card
Debit card
Bank transfer (SEPA)
USD, EURBTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRPTrading Fee: 5.9%

Deposit Fee: 5%

Withdrawal Fee: None
Email: support@coinmama.com

Facebook: https://www.facebook.com/Coinmama/
App Wallet - Android
The Best cryptocurrency exchangesBank transfer (ACH)
Bank transfer (SEPA)
Wire transfer
USD, EUR, GBPBTC, BCH, ETH, LTC, ETC, ZRX, BATTrading Fees:
Maker: None

Taker: 0.1-0.3%

Deposit Fees: Cryptocurrency: None
ACH: None
SEPA: €0.15 EUR
Wire transfer: $10 USD

Withdrawal Fees:
Cryptocurrency: None
ACH: None
SEPA: €0.15 EUR
Wire transfer: $25 USD
Email: support@coinbase.com
Call. +1 888 908-7930 (US/Intl) 0808 168 4635 (UK)
App Wallet
Best cryptocurrency exchangesBank transfer
Cash
Credit card
Debit card
Electronic Funds Transfer
Bank transfer (SEPA)
Interbank GIRO
Interbank Funds Transfer
EUR, IDR, MYR, NGN, ZARBTC, ETHTrading Fee:
Maker: 0%
Taker: 0.20-1.00%

Deposit Fee:
Varies by payment method

Withdrawal Fee: Varies
Email: support@luno.comApp Wallet
the best cryptocurrency exchangesBPAY Cash Credit card Cryptocurrency Debit card Flexepin iDEAL Neosurf Neteller PayPal Perfect Money Bank transfer (SEPA) SWIFT Western UnionAUD, USD, EUR, GBP, CAD, CNY & 50+ moreBTCTrading Fee: None

Deposit Fee: Varies

Withdrawal Fees:
Cryptocurrency: 0.0005
PerfectMoney: 5% (USD)
Payeer: 7% (RUR) & 5% (USD)
AdvCash: 4% (RUR) & 2$ (USD)
Capitalist: 4% (RUR), 7% (USD)
Credit card: $6 + 5% (USD) & ?70 + 7% (RUR)
Yandex.Money: 5-8% (RUR), QIQI: 7% (RUR)
Support ticket

IRC Chat
No App
The table above illustrates the best 5 Cryptocurrency exchanges rated in order of performance.
 

 

Binance

Binance is currently rated the number 1 cryptocurrency exchange in the world, based on volume. But what I truly like about them, too, is the fact that they are very innovative, forward thinking and are quick to implement improvements on their platform. Binance is barely 3 years old, at the time of writing this article, but the changes it has brought into the crypto space are nothing less than amazing.

They have a basic and advanced interface for the trading markets to cater for both beginners and experts. They have also recently added a credit card purchase on their platform.

 

Pros
  • Platform token.
  • Cheap transaction fees.
  • Available worldwide.
  • Credit Card payments.
  • Multilingual Telegram support.
  • Incubation program.

 

Cons
  • Withdrawal takes a bit long to process.

 

CoinMama

CoinMama has been around the block for quite some time (since 2013) and has earned a great reputation amongst the crypto community. Their platform enables you to buy a huge variety of cryptocurrencies via Credit Card. Even though the exchange is available to over 200 countries it is important to take note that some countries may have limited access to the features.

 

Pros
  • Great user interface.
  • Beginner friendly.
  • Fast transaction time
  • Great variety of payment options.
  • Available worldwide.
  • Good reputation.

 

Cons
  • Expensive exchange fees.
  • Credit Card fees, over and above the exchange fees.
  • Can only buy crypto on the platform, you can’t sell it.
  • Support is about average.

 

Coinbase

Coinbase is a very reputable exchange trusted by millions of people globally. It is linked to the banks (in America), allowing users to buy cryptocurrencies directly though their bank accounts. Alternatively, you can use a digital wallet available on Android and iOS to buy crypto. A third way to buy cryptocurrencies is through trading with other users on their subsidiary and well known trading platform, GDAX.

 

Pros
  • Very secure site.
  • Competitive fees.
  • Good reputation.
  • User-friendly.
  • Beginner friendly.
  • Your assets are covered by Coinbase insurance, while stored on the platform.

 

Cons
  • Few supported countries.
  • Customer support about average.
  • Limited payment methods.

 

LUNO

Luno is a leading universal Bitcoin company, based in Cape Town and operating across many countries. One of the biggest advantages of LUNO is that they make it very seamless and convenient to buy crypto with cash. They have various payment methods including linked bank account. However, the payment method is only limited to a specific countries.

 

Because they have a mobile wallet and strict security it makes LUNO a great contestant to consider.

 

Pros
  • Fast transactions.
  • Fast Fiat currency deposits.
  • Quick withdrawals.
  • Great support.
  • Various payment methods.

 

Cons
  • High exchange rates.
  • Limited features in certain countries.
 

Localbitcoins

Localbitcoins is a peer-to-peer platform that offers a myriad of ways to buy bitcoin. It is available globally, and it makes it easier to conduct transactions in your own currency. Since transactions are local, you can meet up in person with the seller. You can pay through various methods such as cash deposits, EFT, online deposit, PayPal, Moneygram, Skrill, etc.

To start, the platform rates each trader with a reputation rank and publicly displays past activities. Also, once a trade is requested, the money is held on LocalBitcoins’ escrow service. Once the buyer has deposited the money, the seller confirms it and then BTC is transferred to the buyer.

 

Pros
  • Multiple payment methods.
  • Available worldwide.
  • No ID verification/requirement.
  • Great interface.

 

Cons
  • High exchange rates.
  • Only one cryptocurrency: Bitcoin.

 

DOs and DON’Ts on Cryptocurrency Exchanges

It is very important to take the following into account when dealing with cryptocurrency exchanges.

 

DOs

  • Create a strong password for your account. The longer and the more complex the better.
  • Create a 2 Factor Authentication for the protection of your cryptos, extra layer of security.
  • Enable Email and/or SMS notification for every login and withdrawal.
  • Only keep the coins you are trading on the exchange, a portion at that too.
  • Take note of fees before conducting any trades/transactions.
  • Get a hardware wallet to store all your assets.
  • Backup your mobile wallet. You can enable the Recovery Phrase and store it some place safe or store your Wallet.dat file externally (in a secure place again). This will help restore your account incase you lose access to your wallet.
  • Use Bookmarks – to protect against phishing from nefarious third parties. Bookmark the official exchange you’ve visited in a separate bookmark folder.
  • Always check the address bar at the top of your browser to ensure that the site has “https”, with a lock, and is, in fact, the correctly spelled address.
 
DON’Ts
  • Store all your coins on an exchange.
  • Share your password with anyone under any circumstances.
  • Give Away Your Private Key
  • Respond to Social Media Users Claiming to be Exchange Representatives
  • Click on any random links on email or SMS claiming there’s something wrong with your account or verify something.
  • Put yourself out there, by bragging on social media about how much crypto you have or how good you are doing and flaunt your assets. You will just be making yourself a target for hackers.
 

CONCLUSION

This brings us to the end of the 5 best cryptocurrency exchanges for beginners. You can choose any of the above, but also taking sure of the availability of the exchange in your country. One of the main factors I considered when compiling the list was the availability of the exchange to the broader globe, including the ability to buy with your credit/debit card.

 

Also take important steps in ensuring security of your exchange account, by implementing the Dos and Don’ts above, super important. If you liked this post please share it with your friends.

   

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