What is a cryptocurrency exchange, and which is the best exchange in the world?

A 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 bid-ask spreads as a transaction commission for its service or, as a matching platform, simply charges fees.

Digital currency exchange can be a brick-and-mortar business or a strictly online business. As a brick-and-mortar business, it exchanges traditional payment methods and digital currencies. As an online business, it exchanges electronically transferred money and digital currencies. Often, digital currency exchanges operate outside Western countries to avoid regulation and prosecution. However, they do handle Western fiat currencies and maintain bank accounts in several countries to facilitate deposits in various national currencies. Exchanges may accept credit card payments, wire transfers, or other forms of payment in exchange for digital currencies or cryptocurrencies. As of 2018, cryptocurrency and digital exchange regulations in many developed jurisdictions remain unclear as regulators are still considering how to deal with these types of businesses in existence but have not been tested for validity.

To exchange bitcoin, visit: zcash to paypal

The exchanges can send cryptocurrency to a user's personal cryptocurrency wallet. Some can convert digital currency balances into anonymous prepaid cards which can be used to withdraw funds from ATMs worldwide while other digital currencies are backed by real-world commodities such as gold.

The creators of digital currencies are often independent of the digital currency exchange that facilitate trading in the currency. In one type of system, digital currency providers (DCP) are businesses that keep and administer accounts for their customers, but generally do not issue digital currency to those customers directly. Customers buy or sell digital currency from digital currency exchanges, who transfer the digital currency into or out of the customer's DCP account. Some exchanges are subsidiaries of DCP, but many are legally independent businesses. The denomination of funds kept in DCP accounts may be of a real or fictitious currency.

We feature the top 5 cryptocurrency exchanges based on our own trading experience. Please view the risks associated with bitcoin & cryptocurrency trading at the bottom of this page. Also, access our affiliate disclaimer.

Bitcoin & Cryptocurrency Exchanges

1. Binance

A global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies. Since early 2018, Binance is considered the biggest and best cryptocurrency exchange in the world in terms of trading volume.

Trading fees are some of the lowest and are as following:

Fees start at 0.10% per transaction, and based on volume can be as low as 0.02%. This is much lower than most exchanges which start at 0.15%. The transaction fees can also be 25% lower if you hold a specific volume of BNB tokens.

2. KuCoin

One of the most popular exchanges in the world with a decent amount of volume. They enable you to purchase bitcoin or other cryptocurrencies directly with your credit card.

They also offer the ability to lend USDT, BTC, EOS, LTC, ETH, and XRP, to earn interest. Also, hold other cryptocurrencies and earn staking rewards.

For high rollers, they have a generous VIP program.

3. Bittrex

A USA based cryptocurrency exchange headquartered in Seattle, Washington. As a note, they also operate Bittrex International which is Bittrex’s Europe-based division, which lists certain tokens that are only available on the Bittrex International platform — not to the U.S. users.

Bittrex has taken a stance against accepting payments for listings of tokens. Tokens are listed based on the merit and quality of the project. This is especially important when investing in what is deemed as high-risk ALT-Coins.

We believe this is one of the better options, as Bittrex is very transparent when it comes to how they operate.

4. Poloniex

At one point this was the most popular exchange in the world. They still have an impeccable reputation.

Both ‘Maker’ and ‘Taker’ fees start at 0.09% and drop with volume. This is significantly less than the industry standard of 0.20%, and these are the lowest fees of any exchange that we trust.

5. Bitfinex

This is one of the oldest exchange in the world as they were founded in December 2012.

‘Maker’ fees start at 0.10% and drop with volume, in the meantime ‘taker’ fees are higher than the industry standard and start at 0.20%