WHERE TO BUY CRYPTOCURRENCIES: THE SAFEST EXCHANGES

Norberto Viale( Trader and founder of Topstep Experience )

My name is Norberto. I've been investing and trading for over a decade. I'm also the author of the Topstep Experience trading course. If you want to learn how to invest and have any questions, feel free to contact me.

SECURE EXCHANGES: YOUR CRYPTOCURRENCIES ALWAYS UNDER CONTROL

My trusted exchange

SECURE EXCHANGES: YOUR CRYPTOCURRENCIES ALWAYS UNDER CONTROL

My trusted exchange

🎯 Buy and sell cryptocurrencies safely and easily.

In the following article we will see what exchanges are, what requirements we should demand of a good exchange, and once we know them, which are the 5 best exchanges to buy cryptocurrencies.

What is an exchange?

A cryptocurrency exchange is a digital platform or marketplace where users can buy, sell, or trade cryptocurrencies for other digital currencies or traditional fiat currencies like the US dollar or the euro. These platforms function similarly to traditional stock exchanges, but instead of stocks or bonds, cryptocurrencies are traded.

Types of exchange

There are two main types of exchanges:

• Centralized exchanges (CEXs): These are platforms managed by centralized organizations that act as intermediaries between buyers and sellers. These exchanges are responsible for maintaining security, facilitating transactions, and often safeguarding user funds. Popular examples include Bit2Me, Coinbase, and Kraken, as we will see below.
  
• Decentralized exchanges (DEXs): These are platforms that operate without a central entity controlling or managing transactions. Instead, trades are conducted directly between users through smart contracts on a blockchain. Due to their greater complexity, they are not the subject of this article. However, examples of DEXs include Uniswap, Sushiswap, and PancakeSwap.

Top 5 best exchanges for investing in cryptocurrencies

These are the 5 best CEX-type exchanges for investing in cryptocurrencies.

• Bit2Me: the best exchange for beginners; very competitive fees and excellent usability.
• Binance: the exchange with the largest offering of cryptocurrencies (somewhat complex for beginners).
• Coinbase: one of the most user-friendly and secure exchanges (also one of those that charge the highest fees).
• Kraken: the best exchange for professionals.
• KuCoin: the best exchange for active traders.

Next, we will explain them in more detail, assessing their characteristics, pros and cons, so that you can make the best investment decision. 

Bit2Me

Bit2Me is possibly the most comprehensive and recommended cryptocurrency trading platform if you operate from Spain.

• More information: www.bit2me.com

Is Bit2Me the best cryptocurrency exchange?

Firstly, for its excellent security and customer service for Spanish customers. It is regulated by the Bank of Spain and, as such, has an office in the countryand offers customer entirely in Spanish. 

 On the other hand, its amateur approach, yet with tremendous depth, for professionals is also noteworthy. Thus, in addition to its classic service of buying and selling over 230 cryptocurrencies, we can add others such as: 

• Bit2Me Pro for professional trading.
• Quick loans with cryptocurrencies as collateral.
• Bit2Me Launchpad to participate in the launch of new cryptocurrencies.
• Bit2Me Card to pay as if it were a credit card.
• Bit2Me Pay for making transfers.
• Bit2Me Tax to file your cryptocurrency tax return. 

The following advantages and disadvantages of the Spanish exchange are defined :

Bit2Me RECOMMENDED

Bit2Me lets you buy and sell cryptocurrencies instantly, with no hidden fees and bank-level security.

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Binance

Binance is undoubtedly the leading platform in the world of cryptocurrency trading. With over 150 million customers, it is the world's largest exchange, and its native token, BNB, is the fourth largest in the world in terms of market capitalization. 

• More information: www.binance.com

How reliable is Binance?

One of the pillars of its success is its wide variety of services, including cryptocurrency exchange, crypto buying, leveraged tokens, an academy for learning about cryptocurrencies, and ETH and DeFi staking options. Furthermore, it offers over 600 cryptocurrencies, allowing you to trade everything from major altcoinsto the latest memecoins. 

Its main drawback is its lack of regulation , which has led to ongoing controversies with various Western countries , including the US (SEC) and the UK (FCA). In fact, the closest thing to regulation is compliance with the new EU law on crypto assets , the controversial MiCA Act , and this is primarily because failure to comply would prevent it from operating in the European market.

Let's look at its main features.

However, these are the pros and cons of trading cryptocurrencies with Binance:

Coinbase

After the fall of the FTX exchange, Coinbase became the second largest exchange in the world, after the aforementioned Binance, however the differences with it are noticeable.

• More information: www.coinbase.com

How safe is it to use Coinbase?

First, security. Coinbase is regulated by the SEC (USA), as well as by other European regulators (MiCA Act), and is also publicly traded, which guarantees greater transparency and reliability in its governance, due to the quarterly audits it has to undergo. 

Secondly, its platform is much more user-friendly than that of other exchanges, allowing novice users to learn how to trade much more easily.

However, their fees are somewhat higher than average (sometimes the difference is very noticeable); apparently, simplicity has to be covered with higher costs. 

Coinbase currently has over 260 cryptocurrencies , including Bitcoin, Ethereum, and Dogecoin.

And of course, in addition to basic operations, Coinbase offers advanced tools for experienced traders, a personal wallet for storing cryptocurrencies, and access to the world of decentralized finance (DeFi) and NFTs.

Coinbase is the exchange I usually use when I buy cryptocurrencies to hold. I have no complaints about it, but it's true that the fees are quite high.

I would like to highlight the following advantages and disadvantages of using this exchange.

Kraken

To talk about Kraken is to talk about one of the old acquaintances of the sector. 

Their platform has evolved, and today it has gone from being designed for the most expert traders to an accessible option for everyone, from beginners to advanced traders.

• More information: www.kraken.com

What is Kraken?

However, the Kraken offers a wide range of services, including buying and selling over 200 cryptocurrencies, advanced trading with margin options, access to the OTC crypto market , and a zero-fee NFT exchange. 

Furthermore, Kraken emphasizes its commitment to security, transparency through its "proof of reserves," its 2FA verification system, and 24/7 customer service. But above all, it highlights its recent approval to be supervised by the Bank of Spain.

Of course, and as usual, it also offers opportunities to earn rewards through cryptocurrency staking, allowing users to obtain annual returns for holding certain assets on the platform.

So, let's now look at the pros and cons of Kraken:

KuCoin

KuCoin is a cryptocurrency trading platform that has established itself as a popular choice in the world of digital finance.

• More information: www.kucoin.com

How good is KuCoin for buying cryptocurrencies?

The platform stands out primarily for its broad global coverage, with users in more than 200 countries and a daily trading volume exceeding one billion dollars. 

Thus, with over 700 cryptocurrencies, KoCoin is possibly the exchange with the largest offering among the best available, a fact that it also complements with a variety of additional services:

• From cryptocurrency trading in the spot market to derivatives
• Trading bots 
• Margin options
• Lending and staking programs
• Leveraged tokens
• And a strong emphasis on security, including Proof of Reserve, to demonstrate the custody of assets on the blockchain.

And once again, let's look at the pros and cons of trading with KuCoin:

Best exchanges: What requirements must they meet?

To choose an optimal exchange, it is essential to consider several factors to ensure that it meets certain quality standards in terms of regulation, friendliness, and trustworthiness.

Based on these three criteria I just mentioned, here is a list of requirements you should demand from an exchange:

Security

As always, this is the most important thing. It's of little use for an exchange to be the cheapest or have the best compensation plans if there isn't a decent regulatory body to govern it. 

In this regard, make sure that the exchange is regulated in recognized jurisdictions, such as the United States (by the SEC or the CFTC) or Europe (at least that it complies with the new MiCA Law).

But there's more. External auditing is a necessary but not sufficient condition. A good exchange should include security measures such astwo-factor authentication (2FA), data encryption, DDoS protection, and cold storage for most funds.

Variety of cryptocurrencies

Secondly, isn't an exchange used for trading? 

In such a case, the abundance of cryptocurrencies, both those with the largest market capitalization and smaller, even meme-like, ones, is essential. This includes Bitcoin and Ethereum, as well as altcoins and lesser-known tokens.

Commissions

At this point, there may be some dissonance. Generally, look for cheap exchanges that don't exceed 1% or 1.5% commission. 

But that doesn't mean you should look for the cheapest option. Sometimes cheap is synonymous with professionalism or deception, and in both cases, due to a lack of training, you'll end up losing money. 

If you're just starting out, it's best to look for centralized exchanges with fees between 0.5% and 1.5%. As you refine your trading, you can then move on to DEXs, which I mentioned at the beginning of this article. 

Also take into account deposit and withdrawal fees, especially if you do it via credit card.

Value-added services

On exchanges you can buy hundreds of cryptocurrencies in an ultra-intuitive way, but that's not all. 

Initially, a Buy & Hold strategy may make you feel satisfied, but as you progress as a crypto trader, you should look for other ways to be profitable beyond simply appreciating the cryptocurrency. 

However, look for exchanges with the following types of practices:

• Staking: interest or rewards for holding certain cryptocurrencies on the platform 
• Lending: Remuneration for lending your cryptocurrencies for specific projects
• Launching: Rewards in the form of new cryptocurrencies that are about to be launched
• Payment cards: With purchase refund option. 

Customer service

Unfortunately, this is usually the aspect that will ultimately let you down. Ideally, you'd find an exchangethat meets all the above conditions, but also offers customer service in Spanish, and if possible, has an office in Spain.

With very few exceptions like Bit2Me, you'll rarely find this. So at a minimum, look for exchanges with efficient and responsive customer support , preferably 24/7 , with multiple communication channels such as live chat , email, and phone.

What's better for trading cryptocurrencies? Exchanges vs. brokers

When deciding to trade cryptocurrencies, one can choose to use an exchange or a broker (What are the best cryptocurrency brokers?). 

Cryptocurrency exchanges offer a wide variety of cryptocurrencies and allow users to have direct control over their transactions and funds. They often also offer lower fees and additional reward services such as staking or lending plans. However, they may lack the robust regulation that some users seek and present a security risk .

On the other hand, brokers, although they tend to have a more limited selection of cryptocurrencies, are more regulatedand provide better customer service, making the experience easier for beginners (Which are the best brokers to invest in?).

However, when trading through a broker, you don't own the cryptocurrencies directly, and fees can be hidden in the spread. 
Therefore, unless you're looking to do minimal trading, it's much more advisable to buy cryptocurrencies on exchanges, as you'll own the asset and can benefit from other compensation plans. Regarding security, to minimize risks, look for the best exchanges —for example, those mentioned in this article—and for cryptocurrencies you don't intend to trade but rather hold, move them to secure wallets (either cold or hot) after purchase.

Pros and cons of buying cryptocurrencies on exchanges

In short, these are the pros and cons of buying cryptocurrencies on exchanges:

• ✅ Variety: Access to a wide range of cryptocurrencies.
• ✅ Liquidity: Large exchanges usually have high liquidity, facilitating quick buying and selling.
• ✅ Features: They offer advanced tools, such as margin trading, staking, and reward programs.
• ✅ Real asset: You buy the digital asset, not a derivative.
• ✅ Control: Ability to withdraw cryptocurrencies to personal wallets.

And regarding the cons:

• ❌ Security: Risk of hacks, security breaches, and exchange bankruptcies without your funds being covered. 
• ❌ Regulation: Some exchanges lack robust regulation.
• ❌ Fees: Beware of deposit and withdrawal fees, especially if made through credit cards.

In summary, to choose the best cryptocurrency exchanges it is essential to consider security parameters, platform friendliness (acceptable fees and investor reward plans) and ease of use (simple interface).

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