Best Ways To Buy And Sell Bitcoin And Altcoins: Complete Guide
There are many cryptocurrency exchanges where you can buy and sell Bitcoin and altcoins, but do you know the best? As a cryptocurrency trader, your number one concern should be to find the safest way to buy Bitcoin and altcoins. You wouldn’t want a situation where you find yourself trading crypto on a platform with low liquidity.
In this article, we will provide you with the best platforms to buy and sell cryptocurrency. You need to trade on a platform that provides you with current cryptocurrency exchange rates. It can be intimidating at first when you want to invest in cryptocurrency. There is always news about people losing their money to hackers and scammers alike.
Also read: 5 questions to ask before investing in any cryptocurrency
Although hacking and scamming is real and will continue to happen, it has never been so simple to invest in Cryptos. There have been many upgrades and knowledge over the last few years that have made it safe and straightforward to invest in cryptocurrency.
Your foremost concern when you want to buy and sell Bitcoin and altcoins should be safety and security. It doesn’t matter if you want to hold it for the long-term or trade frequently; we have compiled the best exchanges for any use case you may have. There are things you should look out for in a cryptocurrency exchange before you trade on it.
What To Look Out For In A Cryptocurrency Exchange
There is no “jack of all trade” platform to buy and sell cryptocurrency. Therefore, you should consider hp important these things are to you before choosing a cryptocurrency exchange.
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Your privacy
How much of your personal information is required before you can transact on the exchange? Does the exchange require you to upload a picture of your ID? If your privacy is a priority, you need to consider an exchange that does not require any personal details.
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The fees
How much does the platform charge for your transaction, and how does the fee compare to other exchanges? So, before deciding on any cryptocurrency exchange, do your due diligence to compare the charges against similar exchanges.
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Speed of transaction
How fast does it take for your coins to be delivered? It would be best if you considered the speed of transactions on the crypto trading platform before settling for it. You wouldn’t want a situation where your transaction will be pending for days or weeks.
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What is the reputation of the exchange?
Is the exchange regulated? How long has it been n operation? It would be best to find out the answers to these questions before trading on any cryptocurrency exchange. Many exchanges in the past have been scams, hence the reason you should research any exchange before committing your money to them.
Best Crypto Exchanges To Buy And Sell Bitcoin And Altcoins
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Coinbase
Coinbase is arguably the best fiat-to-crypto exchange for beginners. It is a platform that makes it simple and easy to buy and sell Bitcoin, Ethereum, and other altcoins. The platform is operating in more than 30 different countries across the globe. Coinbase brokers the exchange of these cryptos with fiat currencies.
There are reasons why Coinbase is the best fiat-to-crypto exchange, and they include:
- It is straightforward to use for beginners because of its excellent user interface.
- The speed of transactions is without equal so that you can buy and sell almost instantly.
- They have high liquidity
- It is a regulated exchange in the United States, and the FDIC insures the cash holdings.
Cons
- You will pay high fees if not using the Coinbase Pro
- The user does not have control over wallet keys
- There are not as many altcoins as you would find on other exchanges like Binance.
The fees are between $0.99-$3.00 depending on the dollar volume of your purchase.
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Binance
Binance is the leading crypto-to-crypto exchange. They operate the world’s largest Bitcoin and altcoin crypto exchange by volume. Binance was founded in 2017 with a strong focus on buying and selling of altcoins. When publishing this article, Binance offers more than 500 different trading pairs between different cryptocurrencies. However, it doesn’t offer some fiat/crypto pairs, as most of its pairs are cryptos.
If you want to trade in altcoins or desire advanced charting, Binance is the best crypto exchange. You can make deposits using over 20 fiat currencies, including the Euro.
The pros
- You can easily trade on the Binance platform with just an email address.
- It has high liquidity since it’s the world’s largest crypto exchange, according to CoinMarketCap.
- Binance has more advanced charting
- Lower trading fees compared to other exchanges
Cons
- It is geared for more advanced crypto-traders
- Binance fewer crypto trading pairs in some countries than others.
The fee is 0.1% for both the taker and the maker, although it scales down with trade volume to 0.02% for both sides.
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Uniswap
The advent of decentralized finance (Defi) has given rise to decentralized exchanges. Uniswap is the top decentralized platform for crypto traders by market volume. It is an automated liquidity pool protocol that allows you to deposit an equivalent value of each underlying token in exchange for other tokens. You can swap between Ethereum (ETH) and other ERC-20 tokens, and you earn by providing liquidity.
The Pros
- There is no KYC process, and you are in full control of your funds.
- Low trading fees as Uniswap charge 0.3% for each trade
- You can list your coin without going through any vetting process
The Cons
- There is a risk of transaction failure on the platform
- Since anyone can list coins without vetting, having fake coins on the platform is very high.
Types Of Cryptocurrency Exchanges
Before deciding on the best way to buy and sell Bitcoin and altcoins, you must understand the types of exchanges.
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Centralized crypto exchanges
They are the first and most common type of platform to buy and sell cryptocurrency. The popular crypto exchanges in this category include Coinbase, Binance, Kraken, etc. They are all private companies that provide platforms to trade cryptocurrency.
You can only have access to insurance if the exchange is at fault. If your account on any of these centralized platforms is compromised, your funds would be lost without retrieval. You are advised to withdraw huge funds and practice safe storage.
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Decentralized crypto exchange
A decentralized exchange is the opposite of their centralized counterparts. There is no central authority, and you are in full control of our funds. There is no regulatory body that governs the platform. It is controlled by individual participants who make rules by themselves.
Conclusion
You have lots of options to buy and sell Bitcoin and altcoins. This article is dedicated to helping you made informed and safe decisions when conducting your cryptocurrency transaction. The exchanges we have highlighted here are trustworthy and have proven track records.
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