Beginner’s Guide: Cryptocurrency Exchanges to consider in the US

Bitcoin cryptocurrency

By now, you are probably well versed with cryptocurrency. But to refresh your memory, cryptocurrency is basically a digital currency based on a distributed ledger technology (blockchain) which uses a decentralized control as opposed to traditional centralized currency. Cryptocurrencies employ the use of cryptography to control the creation of additional units along with ensuring the security of its blockchain network.

Cryptocurrencies are grouped into two major categories; bitcoin and altcoins. Currently, there are over 1,600 cryptocurrencies in circulation with an estimated value of over $289 billion. In this bitcoin guide, we highlight viable cryptocurrency exchanges if you are living in the US.
 

What are Cryptocurrency Exchanges?

 
Cryptocurrency exchanges are platforms that allow users to buy, sell, and trade cryptocurrencies. In most exchanges, cryptocurrencies are traded with fiat currencies such as dollars, euros or with another cryptocurrency such as ether, bitcoin, litecoin, etc. There are three main types of cryptocurrency exchanges namely: trading platforms, direct trading, and brokers.
 

Learn about Bitcoin at Nitrogen Sports


Learn about Bitcoin at Nitrogen Sports

 

Coinbase

 
Coinbase is undoubtedly the most popular cryptocurrency exchange not only in the US but also for the rest of the world. It is also the fastest and easiest way to purchase bitcoin in the US by using a credit or debit card, PayPal, bank account and other payment methods. The transaction fees are also generally average charging 3.99% fees for each bitcoin purchase. Coinbase users are also able to use Coinbase Pro Exchange which offers more advanced features such as margin trading, limit and stop orders which is essential to beginners.
 
Pros
 

  • Easy to trade.
  • High exchange rates.
  • Trusted reputation.

 
Cons
 

  • Low privacy.
  • Average transaction speed (5 days with bank transfers).

 

LocalBitcoins

 
On top of offering exchange services, LocalBitcoins offers escrow services linking bitcoin buyers and sellers living within the same geographical area. The traders meet in-person to conclude the trade with cash payments. There is also an option of purchasing digital currencies via PayPal, Square and direct-to-bank transfers.
 
Pros
 

  • Fast and easy to trade.
  • In-person meeting involves no personal information.
  • Quick purchases of bitcoin.

 
Cons
 

  • Susceptible to scams.
  • Limits the amount of cryptocurrency that can be purchased.
  • Charges slightly higher fees as compared to other exchanges.

 

Binance

 
Binance is a new cryptocurrency exchange with a wide range of cryptocurrencies to purchase and trade. They also charge reasonable transaction fees, and you can register and start trading immediately without the need for verification.
 
Pros
 

  • Reasonable transaction fees.
  • A wide range of cryptocurrencies to trade.

 
Cons
 

  • Lack of account verification makes it potentially insecure.
  • Limit withdrawals to 2 BTC per day.

 

CEX.IO

 
It’s the oldest cryptocurrency exchange in the world with a somewhat good reputation. However, CEX.IO allows users to only trade in ether and bitcoin with users using another service known as Changelly to convert bitcoin and ether to other alt-coins. This exchange has a rigorous verification process and supports cryptocurrency purchases with credit cards and bank wire transfers. However, it charges high fees with occasionally hidden fees.
 
Pros
 

  • Fast and efficient.
  • Strict verification system assuring users of the security of their coins.

 
Cons
 

  • Limits exchangeable cryptocurrencies to only bitcoin and ethereum.
  • Expensive transaction fees with occasionally hidden costs.

 

Bittrex

 
Bittrex has been around for some time and regarded as a good trading platform by most traders. It consists of numerous cryptocurrencies to choose from however the trading interface may be complicated for some beginners to trade with at first. It also does not offer fiat-to-crypto exchange with the most predominant trading pairs being BTC and ETH.
 
Pros
 

  • Charges average fees.
  • Consists of a wide range of cryptocurrencies.

 
Cons
 

  • May be difficult for beginners to start trading.
  • Lacks fiat-to-crypto pairing.

 

What to consider when choosing a cryptocurrency Exchange

 
As a beginner, you possibly don’t have much experience or knowledge in trading cryptocurrencies; therefore, you should pick the best cryptocurrency exchanges suited for your trading capabilities and speculative needs. Here are some of the factors you should consider:
 
Fee
 
Almost all cryptocurrency exchanges charge a certain amount of fees to transact on their platforms. Therefore, as a beginner, you should select the ones that charge a low or reasonable rate in the US.
 
Verification Requirements and Security
 
Almost all cryptocurrency exchanges require some verification such as passport, national ID card, driver’s license, proof of residence, or other similar documents on signing up. An exchange with a strict verification criterion is considered safe for a beginner.
 
Exchange Rates
 
Being a beginner, you may not have a deep understanding of exchanges rates and their significance in realizing a profitable trade. Nevertheless, it would be best if you chose an exchange with good exchange rates to achieve the desired outcomes.
 
Reputation
 
Go for exchanges with a generally favorable public opinion as they tend to be trusted by most traders.
 
Security
 
Some cryptocurrency exchanges such as the Mt Gox exchange have been hacked in the past leading to traders losing all their investment. Therefore, you should select exchanges with tough security measures such two-factor authentication. Additionally, you may take personal security measures such as storing your coins in a personal wallet rather than on the exchanges.

An ideal cryptocurrency exchange for beginners should be easy to trade in, charge reasonable transaction fees, an excellent public reputation along with ensuring the highest level of security. While picking the ideal cryptocurrency exchange can be a daunting task, as a beginner you have the opportunity to try out various exchanges listed above and pick out the best cryptocurrency exchange that suits your trading needs.

To learn more about bitcoin currency be sure to check out more of our bitcoin guides. We also have a variety of sports betting guides and more on Nitrogen Sports blog.