Top 5 Bitcoin Trading Sites in 2020
Over the past few years, cryptocurrency has exploded in the international market and revealed itself as an asset class with a proven value that isn’t going away anytime soon. As a result, more and more people are asking the question – how can I get involved in the digital money revolution? The first step is to find a list of good bitcoin trading sites.
Trading Bitcoin and other cryptocurrencies may seem like a daunting task to many initial investors, but it’s actually not as hard as it seems. Choosing a reputable site via which to purchase and trade your cryptocurrency of choice is the most important first step. There are well over 100 cryptocurrency exchanges currently operating around the world so knowing which to choose can be confusing.
For your convenience, we have reviewed five of the best bitcoin trading sites currently available.
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The online trading platform eToro has been serving customers around the world since 2007. The Israeli startup is very well-known in the financial world and recently added cryptocurrency trading to it’s growing list of services.
Unlike many other cryptocurrency trading platforms, eToro began as a traditional asset trading platform that specialized in contracts-for-difference (CFD’s). CFD’s are a high-risk and controversial financial instrument that has come under scrutiny lately. However, eToro is considered a very secure platform due to it being regulated in the United Kingdom by the Financial Conduct Authority (FCA) and in other countries via a regulatory body in Cyprus.
Although the site features low trading fees and a transparent fee structure it does have high withdrawal fees of $25 and an inactivity fee. Minimum initial deposit is $200 and the platform is not available in the U.S., Canada, Japan, Brazil, and a few other countries.
Markets: 15 cryptocurrencies
Average daily volume: $70 billion (total)
Fees: Free deposits, $25 withdrawal.
KuCoin is a purely crypto-to-crypto exchange that promotes itself as “the people’s exchange” – and for good reason. Beyond just providing a trading platform, it offers a range of detailed programmes available to customers that are focused on helping improve cryptocurrency trading skills.
KuCoin features an interface that is far less complex than most major exchanges, making it more attractive to initial investors while still maintaining full functionality. It currently supports 398 active cryptocurrency markets including the of ERC-20 tokens.
In addition, KuCoin features a unique trading fee structure that rewards customers based on how many KuCoin Shares (KCS) they hold. The standard trading fee is 0.1% and this can be reduced by 10% for every 10,000 KCS tokens the customer holds. Deposits are free and withdrawals fees differ based on the cryptocurrency.
KuCoin is supported in all major cryptocurrency-friendly countries and has apps available for both iOS and Android.
Launched: August 2017
Average daily volume: $20,579,852.
Fees: 0.1% on all trades, with discounts possible.
Paxful markets itself as the Uber of Bitcoin, aiming to bring together an online community of Bitcoin buyers and sellers. Customers are provided with a platform through which they can communicate directly with other cryptocurrency traders and negotiate price rates before completing a sale. Both buyers and vendors benefit highly from the decentralized business model and low fee structure.
Unlike most Bitcoin trading sites, Paxful is more focused on creating a marketplace where users can purchase cryptocurrency in the most convenient way. Instead of a fully functional trading site, Paxful offers a simple-to-use platform from which customers can buy various cryptocurrencies.
Regular buyers and sellers accrue a reputation score that helps to promote trustworthiness on the site and ensures all transactions are completed fairly.
Launched: May 2015
Payment Methods: 555
Average daily volume: $2,000,000
Fees: 1% seller fee, buyer fees vary
Localbitcoins is another decentralized exchange that works in a similar fashion to Paxful but connects users who are geographically close to each other. This method makes the completion of payment far easier as it avoids the high fees and waiting times associated with international bank transfers.
LocalBitcoins is one of the longest-serving Bitcoin trading sites and is available in over 200 countries and territories worldwide. However, due to regulatory restrictions, it is not available to customers in the United States, China, Syria, Indonesia, and North Korea.
The platform supports multiple methods by which users can complete peer-to-peer transactions including Paypal, wire transfer, Western Union and Webmoney. The geographical search method also means it’s often easy for customers to meet and complete transactions in person.
Launched: May 2015
Payment Methods: 8
Average daily volume: $51,000,000.
Fees: Average 5%, depending on the withdrawal method
Binance has become one of the worlds most popular cryptocurrency exchanges over the past year due in large part to founder Changpeng Zhao’s continuous efforts to expand and develop the platform. Averaging $1 billion in daily cryptocurrency transaction volume, it currently stands as one of the busiest bitcoin trading sites in the world.
The Binance trading platform is available in a vast range of languages, including English, Korean, Spanish, Russian, French and Japanese. It’s excellent desktop and mobile trading apps make it one of the most attractive platforms available to both professional traders and newbies alike.
Binance has apps available for both iOS and Android mobile phones and is supported in Europe, USA, Japan, Australia, and all other major cryptocurrency-friendly countries. The platform is also supported by its own native digital asset, the BNB token, which has increased exponentially in value over the past year.
Launched: July 2017
Average daily volume: $1,227,764,082.
Alternative Bitcoin trading sites
In addition to our top five above, there are several other ways to buy and trade Bitcoin that may appeal to certain customers.
Coinbase is one of the most popular cryptocurrency wallets due to its simple and appealing mobile apps. Users can quickly and easily create a verified account and then purchase several cryptocurrencies via credit card, Paypal or other methods. However, Coinbase has some of the highest fees associated with purchasing cryptocurrency.
BTCC is one of the oldest exchanges in the world, dating back to 2011. It offers purchases in credit card, wire transfer and cryptocurrency with a 0.1% fee.
BitBay is another Bitcoin trading site that offers hassle free purchases via credit card. In addition, it features its own BitBay debit card that can be used to withdraw cryptocurrency at any ATM around the world that supports Mastercard.
Buying Bitcoin safely
While improvements in safety are being made on a daily basis, cryptocurrency remains a largely unregulated industry. For this reason, it’s imperative to always use a reputable website with a good track record of secure operation. Always ensure you are using a secure internet connection and if possible, use a platform that provides two-factor authentication.