The 5 best cryptocurrency exchange and trading platforms stand out as the most reliable, with solid track records and enjoy substantial popularity among cryptocurrency traders, which is why they are also among the 15 Best Bitcoin Exchange and Trading Platforms by Volume. They also have reasonable fees and offer exposure to many cryptocurrency markets and other currencies. Moreover, the best cryptocurrency exchanges and trading platforms have all the tools necessary for a cryptocurrency trader and are simple enough for novice traders who are just getting started in the field.
The concept of cryptocurrency was introduced in 2009 with the launch of Bitcoin, which to this day remains the largest and most popular cryptocurrency, with the rest being known as altcoins (Bitcoin alternatives). A cryptocurrency represents an asset that acts as a medium of exchange for different transactions and is usually decentralized and uses cryptography to secure the transaction.
Bitcoin and other cryptocurrencies usually use blockchain technology, which represents a continuously growing list of records (blocks) that are linked and secured using cryptography. Blockchain serves as an open ledger that records transactions between parties and it cannot be modified, which makes it very secure. Over the years, the number of cryptocurrencies in circulation has surged to well over 1,000, but only 58 of them have a total market value of over $100 million.
As the popularity of Bitcoin and other cryptocurrencies like Ethereum, Litecoin, and Ripple, has grown and the demand for them has increased, this has allowed the cryptocurrency industry to expand through the introduction of companies that provide various products and services that serve cryptocurrency markets like apps that act as wallets, ATMs, and hardware that can be used for mining. In addition, several companies have developed trading platforms, where people could trade Bitcoins and other cryptocurrencies and to exchange them into fiat money. As the market for cryptocurrencies was created, the fluctuations in demand and supply led to changes in prices, which allowed people to trade cryptocurrencies and make a profit from the price changes, and to keep them as assets.
At the same time, the popularity of Bitcoin and other cryptocurrencies has led to many cases of fraud and scams and one of the most common ways to steal cryptocurrencies is through exchanges. In 2014, Mt. Gox, a Japan-based Bitcoin exchange that handled 70% of all Bitcoin transactions worldwide closed its platform and filed for bankruptcy protection. The company revealed that 850,000 Bitcoins (valued at around $450 million at the time) had been stolen. Coinabul, a Bitcoin-to-gold exchange, was hit with a lawsuit in 2014 for allegedly defrauding customers by accepting their payments in Bitcoins but not sending the gold in exchange.
In this way, traders should be aware of the risk carried by cryptocurrency exchanges and trading platforms. In fact, as the Mt. Gox situation shows, no matter how large the exchange is, customers’ money isn’t completely safe and since cryptocurrencies are not regulated and not overseen by any authority, recovering the lost capital can be tricky.
With this in mind, we have selected the 5 best cryptocurrency exchange and trading platforms that are the most convenient, secure, and reliable. Check out the list beginning on the next page.