CryptoTrading

Choosing bitcoins, businessman pressing touch screen button.

What is cryptocurrency?

Today, the most famous crypto currency is Bitcoin. Its inventor attempted to build a “peer-to-peer electronic cash system”. Many have tried this system many times before. However, the main difference between Bitcoin and the previous efforts, like Digicash, was that it was to be entirely decentralized. Since no overarching entity is controlling the currency, the notion of “trust” would be eliminated from the system.

To combat “double spending”, the major problem in all the digital cash systems at that point, Satoshi Nakamoto, Bitcoin’s inventor, proposed the blockchain technology. The blockchain technology is a revolutionary technology that records all the transactions made with this currency.

For any single balance, transaction, or change to the network to take place, there needs to be a consensus amongst those who validate the network – the miners. Since the invention of Bitcoin, many other programmers who have attempted to use the model and change it to provide what they consider as a form of digital cash that’s more functional.

The other kinds of cryptocurrencies include Monero, New Economy Movement, Litecoin, and Ether. Many of these cryptocurrency efforts tailor their currency for an individual and particular purpose. Some of the most common purposes are speed, privacy, and price.

What is cryptocurrency used for?

Since crypto currency is such a new technology, it may be that people have not used it yet for its eventual use. Still, today people utilize it for many various purposes. These purposes include, but aren’t limited to the following: trading, remittances, payment for goods and services, investment, gambling, private monetary transactions, and as a hedge against national currencies which are suffering from rapid devaluation (Greece, Venezuela for example).

As the whole cryptocurrency space begins to expand, it’s likely that we will see some additional applications joining the list of purposes for the crypto currency. There are already young services such as SteemIt, which aims to revolutionize the way people pay for content on social media, in addition to services like Musicoin which attempts to find a more equitable way to pay artists without the need for a middleman.

What is the difference between Bitcoin and Ethereum?

All cryptocurrencies have their own characteristics. However, recently one coin has come to challenge Bitcoin more than ever before. Ethereum is the new player on the market. The reasons that it is a challenge to Bitcoin are easy to understand.

Ethereum emerged as an effort to try to correct some of the main criticisms made towards Bitcoin – especially regarding security.

What Ethereum has accomplished to do was to provide transactions that are safer, more flexible contracts that are compatible with any wallet, with short block times for negotiating (where the confirmations are easier). Also, Ethereum is available more than Bitcoin. Whereas more than two-thirds of Bitcoin has already been mined, access to ethereum is still widely available. Another main difference between these two cryptocurrencies is that Ethereum allows for different developers to raise funds for their projects. It can, therefore, be in itself a Kickstarter for some projects.

One of the main advantages to Ethereum is that it’s a more secure, easy to use, flexible, and transact coin. In addition to this advantage, it has brought innovations in terms of entrepreneurship and investment. And this is posing a serious challenge to Bitcoin’s market cap.

The Best Bitcoin Exchanges

When it comes to finding the best bitcoin exchange things are not all that easy. Why is this so? Simply because many of the best sites to buy bitcoin are rather recently online. This means that they have had little to get the word out about their services and products. Most people coming to this page will be asking how to buy bitcoin online through a secure means. Well, here is a good starting point. Let’s see how.

First thing to consider when looking for the top bitcoin exchange is how safe are the website and server. This boils down to asking: is it a trustworthy exchange providing transparent data of coins in cold storage (more on this later) and are customers happy? It’s also good to lookout for which currency pairs are available: are you looking to trade bitcoin for USD, Euros, or other fiat currencies. The location usually gives an idea of what’s on offer. However, the largest bitcoin sites usually have many options for buying bitcoin with government issued currency and altcoins.

The sheer complexity of researching where to trade bitcoin led me to make this blog. Although you should always do your own research before investing, I hope this helps. Below is the table of the best exchanges to buy bitcoin online. If you are new to cryptocurrency exchanges then lookout for the ‘beginner-friendy’ column.

Secure exchanges that are trustworthy and have good user ratings will rank higher than their peers. Extra points are given for sites to buy bitcoin with paypal, as many users request this feature. Ranking preference is also given for sites to buy bitcoin with credit card. Check out each option on the following best bitcoin exchange list. Be sure to bookmark this page for future reference.

Top 40+ Sites to Buy Bitcoin & Cryptocurrency:

Rank Site Location
+currency
Beginner- friendly
Trust score Buy
with…
User-vote Score
1 etoro London, UK

USD
beginner-friendly A+ derivatives

CFD
+ bank transf.
+ card
+ paypal
+ webmoney
+ (873 Votes)

9.85
2 coinbase San Fran, USA

USD EUR GBP
beginner-friendly A+ buy bitcoin credit card

+ bank transf.
+ (2059 Votes)

9.80
3 iqoption Limassol, Cyprus

USD EUR
beginner-friendly A+ derivatives

CFD
+ bank transf.
+ card
+ (309 Votes)

9.75
4 bittrex

cryptocurrency exchange
Las Vegas, USA

190+ crypto pairs
advanced-users B+ cryptocurrency
CRYPTO-
CURRENCY
+ (683 Votes)

9.70
5 localbitcoins local

all currencies
beginner-friendly A buy bitcoin with cash

+ paypal
+ bank transf.
+ (578 Votes)

9.55
6 cex London, UK

USD EUR GBP RUB
beginner-friendly A buy bitcoin credit card

+ bank transf.
+ Ethereum
+ (1089 Votes)

9.50
7 bitstamp Luxembourg

USD EUR
advanced-users B+ buy bitcoin credit card

+ bank transf.
+ (213 Votes)

9.30
8 cryptopay

Ethereum & ICO token exchange
p2p [decentralized]

325+ tokens (ERC20)
advanced-users n/a ethereum tokens Ethereum-
tokens
+ (67 Votes)

9.15
9 bitfinex Hong-Kong

USD
advanced-users B+ bank-transfer

+ Ethereum
+ Dash Monero
+ Zcash
+ (266 Votes)

9.10
10 paxful Delaware, USA advanced-users C+ buy bitcoin paypal

+ debit card
+ onevanilla
+ amazon gift
+ (222 Votes)

9.10
11 gdax San Fran, USA

USD GBP EUR
advanced-users B+ bank-transfer

+ LTC & ETH
+ (106 Votes)

9.05
12 yobit

cryptocurrency exchange
Moscow, Russia

345+ crypto pairs
advanced-users C+ cryptocurrency
CRYPTO-
CURRENCY
+ (434 Votes)

9.00
13 cryptopia

cryptocurrency exchange
New Zealand

250+ crypto pairs
advanced-users B+ cryptocurrency
CRYPTO-
CURRENCY
+ (63 Votes)

9.00
14 luno South Africa / Nigeria

ZAR IDR MYR NGN SGD
beginner-friendly B bank-transfer
+ (99 Votes)

8.70
15 changelly

cryptocurrency exchange
Prague, Czech Rep.

35+ crypto pairs
beginner-friendly C+ cryptocurrency
CRYPTO-
CURRENCY

+ credit card
+ (138 Votes)

8.65
16 binance

cryptocurrency exchange
Shanghai, China

30+ crypto pairs
advanced-users C+ cryptocurrency
CRYPTO-
CURRENCY
+ (144 Votes)

8.60
17 blockchain Luxembourg

EUR
beginner-friendly B+ buy bitcoin credit card
+ (132 Votes)

8.50
18 hitbtc

cryptocurrency exchange
Copenhagen, Denmark

25+ crypto pairs
advanced-users C+ cryptocurrency
CRYPTO-
CURRENCY
+ (172 Votes)

8.30
19 bitcoin-germany-exchange Germany advanced-users B bank-transfer
+ (133 Votes)

8.10
20 bithumb

cryptocurrency exchange
Seoul, South Korea

8+ crypto pairs
advanced-users C+ buy bitcoin credit card

+ bank transf.
+ (30 Votes)

8.05
21 coinatmradar [world ATM map]

all currencies
beginner-friendly n/a buy bitcoin with cash
+ (70 Votes)

8.05
22 poloniex

cryptocurrency exchange
Delaware, USA

75+ crypto pairs
advanced-users C+ cryptocurrency
CRYPTO-
CURRENCY
+ (459 Votes)

7.90
23 shapeshift

cryptocurrency exchange
Switzerland

40+ crypto pairs
advanced-users A cryptocurrency
CRYPTO-
CURRENCY
+ (186 Votes)

7.90
24 bitmex Republic of Seychelles

margin trading
advanced-users C+ derivatives

Leverage
+ (82 Votes)

7.75
25 bitso Mexico

MXN
beginner-friendly B bank-transfer

+ cash
+ pademobile.
+ (68 Votes)

7.70
26 gemini New York, USA advanced-users B+ bank-transfer
+ (169 Votes)

7.75
27 bitbay Katowice, Poland

PLN USD EUR
beginner-friendly C bank-transfer
+ (78 Votes)

7.20
28 coinmama Israel

EUR USD
beginner-friendly C+ buy bitcoin credit card

+ Ethereum
+ (31 Votes)

7.05
29 bitflyer Tokyo, Japan

JPY
beginner-friendly B+ buy bitcoin credit card

+ bank transf.
+ (30 Votes)

6.85
30 bisq bitsquare

bitcoin & cryptocurrency exchange
p2p [decentralized]

59+ crypto pairs
advanced-users n/a cryptocurrency
CRYPTO-
CURRENCY

+ bank transf.
+ (200 Votes)

6.85
31 btcmarkets Sydney, Australia

AUD
beginner-friendly B bank-transfer
+ (59 Votes)

6.80
32 coincheck Tokyo, Japan

JPY
beginner-friendly B+ buy bitcoin credit card

+ bank transf.
+ 9 altcoins
+ (54 Votes)

6.75
33 bitcoin-exchange-thailand

cryptocurrency exchange
Thailand advanced-users C+ bank-transfer
+ (56 Votes)

6.40
34 indonesia-bitcoin-marketplace.png Indonesia advanced-users C+ buy bitcoin credit card
+ (87 Votes)

6.25
35 zebpay Ahmedabad, India

INR
beginner-friendly B bank-transfer
+ (109 Votes)

6.05
36 indacoin

No ID verification
Westminster, UK

USD
beginner-friendly C+ buy bitcoin credit card

+ Ethereum
+ (36 Votes)

6.00

Have I missed something? Let me know (see footer).

How to buy bitcoin using this list of exchanges?

Hopefully the list of bitcoin exchanges above will be of good use for how to trade bitcoins. Each outstanding site should have detailed instructions. From here, one can easily figure out how to buy bitcoin with credit card, paypal, cash, bank transfers. Once you have got some coins then it is a good idea to store them offline (not on an exchange). For “cold” vs “hot” storage options – check out the list of available wallets. When wanting buy or sell it is safer just to transfer in and out of your ‘cold’ wallet to the ‘hot’ online exchange. Remember that so long as an offline wallet’s keys have not been compromised, then those coins cannot be taken.

What is the best site to buy bitcoin in the above list?

It’s a tough question in my opinion. Each will have an upside compared to others. Check a few out and look up on forums to see what users are saying about the service provided, and which they think are the best sites to buy bitcoin easily. Localbitcoins.com is a really cool p2p bitcoin exchange for beginners wanting to buy for their first time. The service is all over the world, meaning you can use euros, pounds, yen, australian dollars, swiss francs, canadian dollars, krona, rubles, lira, rupees and so on. If you pay by physical cash then you get to meet the person in real life. Alternatively you can do a fast bank transfer and the site will hold your coins in escrow for you once it goes through. Obviously there are more simple ways to start off. Some like to buy with paypal, but not many leading bitcoin exchanges accept this because of chargebacks.

Which are the largest exchanges?

Generally the biggest bitcoin exchanges will be toward the top of the above list. For example Bitfinex, GDAX, Bitstamp, Coinbase (also the best usd bitcoin exchange) all represent large volume proportions. Daily volume varies, and therefore the world’s largest exchange vary each day. Go to bitcoinity for a good list of all the top bitcoin exchange site and their proportional volumes. Some find this handy for arbitrage between markets.

What about the best cryptocurrency exchange?

Sadly, with the demise of Cryptsy there is a need for a new major first-rate cryptocurrency exchange (aka altcoins). Having many medium-sized cryptocurrency exchange sites is a better situation than having one large amazing option. Bittrex has now replaced Poloniex as the largest most amazing option. Its platform is functional enough to have attracted tens of millions of new customer every month. Things feel smooth when using Bittrex. All big and small trading pairs are offered and it is now possible to do cryptocurrency margin trading on major altcoins. This is a cool feature, but use it with caution as leveraged trading has a certain risk factor. Keep in mind that some of the best bitcoin exchange sites also do altcoins. Yobit, Poloniex, and Changelly, are great options worth checking out. Some even offer short selling on major coins. You may also like to check the market capitalizations and compare them to others listed there.