In order to trade in crypto it is necessary to use a crypto exchange. On this page we share some knowledge regarding crypto exchanges. Furthermore we will suggest some exchanges that we reviewed.
What is a crypto exchange
Let’s start with the beginning. A crypto exchange is a marketplace where buyers and sellers of cryptocurrency can do transactions online to buy or sell their cryptocurrency. There are two major differences in exchanges that are important when you pick an exchange to do business. First of all you need to know the difference between a fiat cryptocurrency exchange and a pure cryptocurrency exchange. Another difference is the difference between a ‘deposit exchange’ and an instant exchange. Finally we will take a look at another way of trading crypto, which does not involve crypto exchanges.
Crypto exchanges: trade in crypto with Euro’s
There are numerous crypto exchanges where you can trade in crypto instantly and pay with fiat currency like the Euro. Our favourite exchanges regarding trading in crypto and paying with Euro’s is Bitvavo. Below you can trade instantly by simply selecting your favourite fiat currency (EUR by default) and favourite cryptocoin (BTC by default) and fill out the amount you would like to invest.
Bitvavo is a Dutch based crypto exchange. They provide support in various languages, such as German, English, Dutch, Spanish, France, Italian and Dutch. Within short time you can expect a thorough review of this exchange.
Crypto exchanges: trade in crypto with USD and/or GBP
When you like to trade in crypto with the American dollar of British Pound as fiat currency we suggest Changelly exchange.
If you want to obtain more information regarding exchanges and their pro- and cons we kindly refer you to our exchange reviews. (to come)
Crypto currency pairing
A crypto currency obtains its value due to comparison with another crypto currency, which can be either a crypto currency or a fiat currency. As you might have noticed, not all cryptocurrencies are buy-able with fiat currency on the exchanges we suggested before.
If you want to trade a cryptocurrency which is not paired with a fiat currency you can purchase another crypto currency which is buy-able with fiat currency. We suggest to use a stable coin such as Tether (USDT). Once you obtained the amount of Tether you want to invest, you can exchange Tether for the desired crypto currency.
For advanced traders, there is another option. When you use Yobit exchange, you can trade all pairings, including pairings between fiat currency and crypto currency. However, due to the complexity of the user interface we don’t recommend Yobit exchange for starting traders.
If you like to have more information, please check out our Yobit review. (to come)
Five tips for picking a crypto exchange
Off course you want to make sure you pick a trustworthy provider to be your crypto exchange of choose. Therefore we provide you with five tips to look for when you pick a cryptocurrency exchange.
- Are you choosing a centralised or decentralised crypto exchange? A centralised crypto exchange proceeds all transactions in one (central) place. A central point also means a central point for all risks regarding crypto trading, creating a ‘single point of fault’. You’ll avoid this by using a decentralised exchange. Nevertheless, 99% of the transactions is still completed on a centralised exchanges due to the aspects mentioned hereafter.
- Does your cryptocurrency exchange have enough liquidity? Since the market for crypto trading is still in full development, it’s sometimes hard for exchanges to react on a boost of ‘sell’ of ‘buy’ requests. When the exchange doesn’t have the liquidity to handle directly a time-frame will occur between order and execution of the order. Especially in a volatile market, this can cause serious losses or missed gains for traders.
- What are the costs of services? As always it is important to keep the costs of investing as low as possible. Therefore, it’s important to keep transaction costs as low as possible. Based on the sort transaction and frequency of transactions you can calculate and compare the costs.
- Does the crypto exchange offer the cryptocurrency you want to trade? Not all crypto exchanges provide the opportunity to trade in all currencies, so it’s important to get to know upfront which currencies are provided by an exchange.
- Is the crypto exchange available in an understandable language? We can imagine that, when your financial interests are at stake, you prefer trading in your mother-tongue. Therefore we provide several credible crypto exchanges in various mother-tongues.
Another way to trade in crypto: over the counter trading
Besides the use of a crypto exchange there is another way to trade in crypto. This way is called ‘over the counter trading’ (otc-trading). Usually this way of selling and buying cryptocurrency directly from another investor is used by large parties. However, there are some places where you can buy or sell your cryptocurrency directly.
The leading otc-platform to trade in crypto is LocalBitcoins.com. Here you can buy and sell requests and buy or sell cryptocurrency like Bitcoin but also may other cryptocurrencies. Of course you can take a look at the platform.
Bitcoin price and crypto currency prizes live
Of course you’ll need the current prizes to trade in crypto. Please visit our page with live prizes for Bitcoin and other cryptocurrencies. If you select the cryptocurrency of your choice you can find detailed information about that coin.
Please note that our site does not provide any financial advice. The statistics and information shown are solely provided as possible source for your own research on (investing in) crypto and/or for educational/entertainment purposes. Despite our efforts to present information in a right and timely manner we will not accept any responsibility for any shortcomings in the data and/or information provided. Furthermore please that this site uses affiliate links. This means we might earn a contribution in the costs of operating this site and providing free information if you decide to click on (one of) the links issued.