The Best Cryptocurrency Exchanges in 2020

Nov 22

Cryptocurrency exchanges are online platforms that allow you to buy and sell cryptocurrencies like Bitcoin, Ethereum, and many others. Many cryptocurrency exchanges such as Coinbase also allow you to store your cryptocurrencies on their platform, although this is not recommended for security reasons.

The huge increase in the number of cryptocurrencies has gone hand in hand with the number of exchanges. In this guide, we will help you find the best cryptocurrency exchanges for 2020. Most advanced traders utilize multiple exchanges to meet different needs. For example, many traders will use one exchange as an onramp from fiat to cryptocurrency and another exchange to trade between cryptocurrencies.

If you are new to the world of cryptocurrency, we include some helpful sections at the end introducing you to what cryptocurrencies are and why you should consider adding them to your investment portfolio. 

What you will find in this guide:

  1. Our list of the best cryptocurrency exchanges by category for 2020

  2. How we rank the best crypto exchanges

  3. Other factors to consider when selecting an exchange

  4. Reviews for the top cryptocurrency exchanges of 2020

  5. What is a cryptocurrency exchange?

  6. The different types of cryptocurrency exchanges

  7. What is cryptocurrency?

  8. About the cryptocurrency market

  9. Pros and cons of trading cryptocurrency

The Best Cryptocurrency Exchanges in 2020

Best Overall: Binance

Runner-Up: Kraken

Best for Beginners: Coinbase

Best Decentralized Exchange: Uniswap

Best for Altcoins: Bittrex

Best Peer-to-Peer Trading Platform: LocalBitcoins

Best for Tools and Analysis: Voyager

Best for Additional Financial Products: Biki

Best Promotions and Rewards: Robinhood

Best for Derivative Trading: Delta Exchange

Best for Africa: Paxful

Best for Asia: Huobi

Best for Latin America: Bitso

Best for Europe: Bitvavo

Best for Middle East: Rain

How We Rank the Top Cryptocurrency Exchanges in 2020

We’ve ranked the top cryptocurrency exchanges for 2020 based on the following factors:

  1. Reputation

  2. Fees

  3. Security

  4. Number of coins

  5. Trade volume

  6. Liquidity


As with most things, the reputation of a cryptocurrency exchange among experts is a simple way to judge its quality. The reputation of a crypto exchange has to do with its founders, goals, history, and user reviews. The best crypto exchanges are operated by those who believe in the fundamental goals of cryptocurrencies and have a track record of success with other crypto projects. We look to CoinGecko, reviews and other industry news sources to determine an exchange’s reputation.


Cryptocurrency exchanges are also seeking to make returns. They achieve this by charging fees on the transactions they facilitate. These fees eat into the profits that you can make as a trader, so we rank exchanges higher on our list when they have the lowest fees relative to their closest competitors. Each exchange publishes their fee schedule publicly. 

Many exchanges charge separate maker and taker fees. Maker fees are charged for transactions that add liquidity to the pool because the transaction is not immediately matched by something on the order book. This is why they are always lower than taker fees. Taker fees are charged for transactions that remove liquidity because they are executed immediately based on an order that already exists in the book. Many exchanges allow you to set whether which type of transaction you will accept. 


A cryptocurrency exchange is secure when the assets it contains are safe from theft and the sensitive identification information of its users is inaccessible. In general, decentralized exchanges are considered more secure because the information they contain exists on their own blockchain instead of on a central server as with a centralized exchange. When available, our security scores come from

Number of Coins Available

Most cryptocurrency investors choose to invest in multiple coins. For this reason, the best exchanges will allow you to trade the greatest number of cryptocurrencies. Up-to-date coin numbers can be found on CoinGecko.

Trade Volume

The volume of a cryptocurrency exchange is the monetary value of the trades that occur on it. Volume is an indicator of the number of users a platform has and how often those users execute trades. Platforms with higher volume are generally seen as more reliable, legitimate and respected. 24-hour trade volume can be found on CoinGecko.


The liquidity of a cryptocurrency is the speed at which the currency can be accessed and traded. Exchanges with higher liquidity allow for transactions to occur more quickly. This is important for those who are trading on short timescales. When available, we base our liquidity ranking on metrics published by CoinGecko

In addition to these six metrics, here are some more factors to consider when choosing a cryptocurrency exchange.

Other Factors to Consider when Selecting a Cryptocurrency Exchange

There are hundreds of cryptocurrency exchanges available in 2020. As we mentioned, each is designed for a different purpose and most professional traders utilize multiple exchanges to meet different needs. To compile this list of the best crypto exchanges, we examined many factors and assigned a top exchange in many categories. Below is a quick look at the factors to consider when evaluating a cryptocurrency exchange.


A key benefit of cryptocurrencies is the ability for transactions to be private. This means that others can’t see which crypto wallets and transactions belong to whom. This is important for many reasons, one of the primary reasons being account security.


A cryptocurrency exchange should be easy to use. We prioritize exchanges that have clear interfaces and an easy learning curve.

Payment Method

In order for a cryptocurrency exchange to suit your needs, you must be able to buy and sell cryptocurrencies using a method that is available to you. Many beginner crypto traders wish to buy and sell between cryptos and fiat currencies like the dollar or Euro. In order to do this, the exchange must accept payment via account transfer, credit or debit. More advanced traders often trade one cryptocurrency for another (trading Ethereum for Chainlink, for example). Some exchanges only allow fiat trades, some only allow crypto-crypto trades, and some allow both.

Customer Support

Cryptocurrency exchanges are known for their poor customer support. A history of customer support debacles early in the history of crypto exchanges has led many exchanges to develop more robust support programs in order to help users solve problems as they arise. Customer support is essential in the event of a security breach, issue with identity verification, or user error. Choosing an exchange with good customer support is particularly essential for those just getting started with cryptocurrencies.

Minimums and Limits

Some cryptocurrency exchanges require that trades fall within a given size range. This can be an important factor to consider, particularly for those who wish to execute particularly small or large trades. Other exchanges like eToro require you to maintain a minimum level of funds in your account. 

Location Restrictions

Many cryptocurrency exchanges are only available in specific locations. In this guide, we tend to prioritize exchanges with the broadest availability.

Identity Verification

Cryptocurrency exchanges should have identity verification procedures that are both robust and accessible. In other words, we prioritize exchanges with identity verification requirements that prevent fraud without excluding people from signing up.

Reviews for the Top Cryptocurrency Exchanges of 2020

Best Cryptocurrency Exchange Overall: Binance

Binance takes the top spot on our list of the top cryptocurrency exchanges of 2020. At the beginning of this year, Binance would not have topped our list because they only allowed coin-to-coin trading. However, as of July 2020, Binance offers over 30 fiat currencies as well, allowing them to soar above the competition and take the crown. 

Binance has nearly $5B in daily trading volume, high trust, over 250 coins, and near-global availability. Binance also offers the lowest fees among the cryptocurrency exchanges on our list.

Binance offers different platforms for users in different countries. In the US, you can expect a rollout of Binance.US in all fifty states by 2021 (as of this writing, it is already available in most states). Binance claims to offer the lowest trading fees in the USA.

Fees: Standard 0.10%, lower based on volume and whether you are using the Binance coin.

Security: High

Number of coins/pairs: 253/865

Daily trade volume: $4.8B

Liquidity: 4/5

Account minimum: $150

Pros: Global availability, low fees, many coins, fiat purchase available, no wallet required

Cons: The fiat account minimum is on the higher end

Second Best Cryptocurrency Exchange: Kraken

Kraken comes in second place on our list of the top crypto exchanges due to high trade volume, high trust, a robust offering of coins, and global availability. However, Binance has the edge over Kraken because Kraken does not allow you to purchase coins with credit or debit card and Binance offers more coins.

Fees: 0.16/0.26% for the lowest-volume tier (up to $50k in 30-day trades).

Security: High

Number of coins/pairs: 46/214

Daily trade volume: $370M

Liquidity: 4/5

Account minimum: One unit of fiat currency (ie $1 USD), based on deposit method.

Pros: Global availability, low fees, many coins, fiat purchase available, no wallet required

Cons: Not many fiat payment options, higher fees

Best Cryptocurrency Exchange for Beginners: Coinbase

One of the most well-known cryptocurrency exchanges, Coinbase is the best exchange for beginners in 2020. Coinbase has been one of the most popular introductory cryptocurrency exchanges since it was launched in 2012. Coinbase offers a simple and clean user interface, a variety of coins and payment options, educational modules, promotional offers, and more features targeted toward the crypto beginner. 

Fees: Coinbase has a somewhat complex fee schedule that is a flexible fee based on transaction size and payment method plus a flat percentage spread fee. Overall, Coinbase has high fees relative to many other exchanges.

Security: High

Number of coins/pairs: 38/99

Daily trade volume: $900M

Liquidity: 4/5

Account minimum: Coinbase does not require deposits. 

Pros: User friendly, global availability, free coin promotions, fiat purchase available, no wallet required

Cons: High fees, fewer coins available than Binance and Kraken.

Best Decentralized Cryptocurrency Exchange: Uniswap

Nearly every other winner on this list is a centralized exchange, so we created a category for the best decentralized exchange. The benefits of using a decentralized exchange such as Uniswap include low vulnerability, horizontal control and ownership, and the ability to trade directly with other users without depositing or withdrawing funds. Decentralized exchanges also allow users to participate in liquidity pools, which are an additional way for users to make returns on their cryptocurrency investments. 

Uniswap was already known as a leading decentralized exchange when they released V2 in May 2020. Designed specifically for the Ethereum network, Uniswap has an automated market-making (AMM) system that is built with smart contracts. Uniswap allows the trade of any coin on the Ethereum blockchain, which includes cryptocurrencies like Ethereum, Chainlink, Basic Attention Token, 0rx, and many more. 

Fees: 0.3%

Security: Not ranked

Number of coins/pairs: 1298/3038

Daily trade volume: $270M

Liquidity: High

Account minimum: Uniswap does not require deposits. 

Pros: Decentralized, high number of altcoins, ability to leverage assets in liquidity pools

Cons: Only Ethereum-based tokens are allowed, no fiat currencies, no coin storage

Best Cryptocurrency Exchange for Altcoins: Bittrex

An altcoin is a cryptocurrency that is not Bitcoin. The top exchange for trading altcoins in 2020 is Bittrex. Bittrex is a US-based cryptocurrency exchange, which means that you can be sure that security is a top priority. Bittrex was founded in 2014 and also has a European platform available. Unlike many other exchanges, projects can not pay to be listed on Bittrex-- instead, the team at Bittrex selects new coins to list based on their merits. Bittrex also offers low fees, making Bittrex not the best just for altcoins but one of the best exchanges out there. 

Fees: 0.1%

Security: High

Number of coins/pairs: 326/570

Daily trade volume: $42M

Liquidity: 3.5/5 

Account minimum: $50

Pros: Low fees, global availability, many coins available, high security

Cons: Poor customer support

Best Peer-to-Peer Trading Platform: LocalBitcoins

A Peer-to-Peer trading platform is one in which cryptocurrency trades are executed from individual to individual. The role of a P2P trading platform like LocalBitcoins is to help connect those looking to purchase cryptos with those looking to sell, just like a classified ad for cryptocurrency. The longstanding champion among P2P cryptocurrency exchanges is LocalBitcoins. LocalBitcoins has a user review system to help users avoid scams. LocalBitcoins is a leading platform for those looking to buy and sell Bitcoin around the world, and in much of the developing world, more trades happen on LocalBitcoin than any other trading platform.  

To purchase Bitcoin on LocalBitcoins, the user will need to use a separate payment system like PayPal or Western Union to pay the seller directly. One of the great things about LocalBitcoins is that it is completely free to buy and sell Bitcoin using the platform. The company makes money through promoted listings and ads. 

Fees: None

Security: Low

Number of coins/pairs: Bitcoin only

Daily trade volume: Unknown

Liquidity: High

Account minimum: LocalBitcoins does not require deposits.

Pros: Free, global availability, lower identity verification requirements, ability to use unconventional payment methods

Cons: Bitcoin only, possibility of scams, trades must be found and executed manually

Best Crypto Exchange for Tools and Analysis: Voyager

The best analysis tools for a cryptocurrency trading platform are found on Voyager. Voyager is a cryptocurrency trading app that actually crawls other exchanges to find you the best prices. Voyager was founded in 2019 by executives at Uber, eTrade, and other big players from disrupting companies. You can deposit fiat currency, Bitcoin or Ethereum and use these assets to buy other cryptos. This is a unique model for a cryptocurrency trading platform, helping Voyager stand out after just a couple of years on the scene. Voyager’s stock prices doubled from January to July 2020, demonstrating the excitement crypto and fintech enthusiasts have for the platform.

Voyager is also unique in that it doesn’t charge you anything for the trade. Instead, they seek to find a better deal than the price quoted to the user, and when they do, they keep the difference. In addition, trades and deposits on Voyager execute instantly. Finally, Voyager offers great market analysis and investment tools. These include dynamic charts, profit and loss tracking, and help in preparing tax documents. 

Currently, Voyager is only available in the United States and Canada, although they have plans to continue international expansion. 

Fees: None

Security: High

Number of coins/pairs: 50+

Daily trade volume: NA

Liquidity: High

Account minimum: $10

Pros: Best prices, great analysis tools, no fees

Cons: Only available in US and Canada

Best Exchange for Additional Financial Products: BiKi

One of the cutting-edge developments in cryptocurrencies in the coming years is sure to be additional financial products, such as cryptocurrency loans. Our winner for the exchange that has the most additional financial products is BiKi. 

BiKi is another popular cryptocurrency exchange from Singapore that is available worldwide. BiKi was founded in 2018 and has grown very rapidly. BiKi made our list of the top exchanges of 2020 due to the other financial products that it offers. In January 2020, BiKi started to offer lending services, in which users may stake Bitcoin or Ethereum as collateral for a loan disbursed in dollars. The founders of BiKi have made it clear that loans and other financial products will continue to be a central pillar of the BiKi platform as they seek to bring cryptocurrencies into the mainstream.

Interestingly, the fees collected by BiKi are all used to buy back and “burn” (destroy) units of its native currency, BIKI. This means that as people use the BiKi platform for trading, the units of its native currency become more valuable. This incentivizes investment and usership.

Fees: 0.15% for trades, withdrawal fee depends on asset

Security: Low

Number of coins/pairs: 177/313

Daily trade volume: $500M

Liquidity: 0.5/5

Account minimum: None

Pros: Many cryptocurrencies available, additional financial products, global availability

Cons: Low security score, low liquidity score

Best Cryptocurrency Exchange for Promotions and Rewards: Robinhood

Robinhood is most well-known as an app for trading stocks such as Tesla and Microsoft, but Robinhood also allows the trade of cryptocurrencies. Robinhood is the top cryptocurrency exchange for promotions and rewards because of the stock giveaways they regularly offer on the platform, as well as the incentives available for inviting others to join. Promotions include sign-on bonuses, referral codes, and free offers. 

Another plus of Robinhood is that they offer cryptocurrency trading without fees. Robinhood has stated that they intend to operate their cryptocurrency branch as a loss-leader, meaning they do not intend to profit from it. Instead, they hope their crypto services will bring new people onto the platform who will eventually use Robinhood to trade stocks, for which they do charge fees. 

Fees: No trading fees

Security: Low

Number of coins/pairs: 4

Daily trade volume: NA

Liquidity: High

Account minimum: None

Pros: Additional investment options, promotions, no fees, global availability 

Cons: Low number of cryptos available

Best Crypto Exchange for Derivative Trading: Delta Exchange

Derivative trading is the agreement of two parties to trade an asset at a specified future date and given price. This is essentially a way for traders to “bet” on the future value of an asset. Buyers who agree to purchase an asset such as Bitcoin in the future at a given price are hoping that the agreed-upon price is lower than the actual price of Bitcoin on that date, such that they could immediately sell the asset for a profit. Bitcoin is now one of the most popular assets to trade in this way. Derivative trading is recommended only for the intermediate or advanced trader, as it is higher risk than spot trading.

The best cryptocurrency exchange for derivative trading in 2020 is Delta Exchange. Delta Exchange is a powerful, all-in-one crypto trading platform with many features for the intermediate trader. Delta offers 100x leverage and offers Bitcoin and a variety of altcoins, including some whose futures can be traded nowhere else. The broad selection of altcoin futures is one of the key reasons Delta stands out as an industry leader. They are also known for their helpful resources, powerful analysis tools, and great customer service. Another great feature of Delta Exchange is their mock trading platform, which allows you to see the results of executing various trades in a simulated environment with no risk.

Fees: From 0.02%, depends on type of trade and cryptocurrency

Security: High

Number of coins/pairs: 67

Daily trade volume: $48M

Liquidity: NA

Account minimum: None

Pros: Wide range of altcoin derivative, helpful resources, powerful analysis tools, global availability

Cons: Delta Exchange does not offer spot trading

Best Cryptocurrency Exchange for Africa: Paxful

The cryptocurrency market in the developing world is growing more quickly than in the developed world. A primary reason for this is that the developed world already has alternative financial tools available to many citizens, whereas those in the developing world often lack access to financial resources. 

The best cryptocurrency trading platform for Africa is Paxful. Similar to LocalBitcoins, Paxful is a peer-to-peer trading platform for Bitcoin. This allows you to trade Bitcoin with another person using a huge variety of payment methods including PayPal, credit card, wire transfer, Western Union and many more. Paxful does not hold crypto or fiat currencies, merely helping coordinate the trades between parties. As with LocalBitcoins, the main concern people have with Paxful is the ability to get scammed by the other party. Also like LocalBitcoins, Paxful incorporates several features to help you avoid getting scammed.

A key differentiator between Paxful and LocalBitcoins is the business model. LocalBitcoins makes money by allowing sellers to place ads on the platform. On the other hand, Paxful charges a 1% fee to sellers. 

Fees: 1% for Bitcoin sellers only

Security: Low

Number of coins/pairs: Bitcoin only

Daily trade volume: ~ $1.5M (based on $1.1B total for the first half of 2020)

Liquidity: Variable

Account minimum: Minimum trade is $10; Paxful does not store currency

Pros: Free, global availability, lower identity verification requirements, ability to use unconventional payment methods

Cons: Bitcoin only, possibility of scams, trades must be found and executed manually

Best Cryptocurrency Exchange for Asia: Huobi Global

Founded in 2013, Huobi Global is the best exchange for Asia and one of the world’s leading cryptocurrency exchanges. Huobi also offers unique platforms for specific markets, such as Huobi Korea and Huobi Indonesia. Huobi has weathered the test of time for cryptocurrencies-- back in 2016, over half of all digital currency exchanges happened on the platform

These days, Huobi stands out for its global focus, intuitive interface, and high security. Huobi is one of the only exchanges around that has never had any kind of security breach. Like many other leading exchanges, Huobi offers a native token that allows you to reduce fees.

Fees: 0.2%

Security: High

Number of coins/pairs: 286/769

Daily trade volume: $1.8B 

Liquidity: 4/5 

Account minimum: $5

Pros: Many cryptocurrencies, high security, trusted industry leader, global availability

Cons: Relatively high fees

Best Cryptocurrency Exchange for Latin America: Bitso

Mexico has lagged behind many other similar nations when it comes to cryptocurrency adoption. This is changing as more platforms become introduced for Latin America. The best cryptocurrency exchange for Latin America is Bitso. Bitso is a cryptocurrency exchange that was founded in Mexico in 2014 to increase the acceptance of digital currencies. In particular, Bitso aims to help those who do not currently have access to financial services. Like many other exchanges such as Coinbase, Bitso can also serve as a digital wallet, although this is not recommended. Bitso was the first exchange to offer trading with the Mexican Peso. The other fiat currencies supported by Bitso are the Argentine Peso and the US Dollar.

Bitso currently supports 10 cryptocurrencies and 24 pairs. 

Fees: Variable based on fiat currency and trade volume. Maximum of 0.650% for Mexican Peso to BTC.

Security: Medium

Number of coins/pairs: 10/24

Daily trade volume: $15M

Liquidity: 4/5 

Account minimum: None

Pros: Trade in MXN and ARS, Latin American exchange, good customer service

Cons: Relatively high fees, potential security risk, low applicability outside of Latin America

Best Cryptocurrency Exchange for Europe: Bitvavo

The best cryptocurrency exchange for Europe is Bitvavo. Bitvavo is a cryptocurrency exchange based in Amsterdam that has been specifically developed for European markets. In addition to this geographic specificity, a strength of Bitvavo is the ability to execute advanced trades such as automated trading based on asset pricing. A relative newcomer on the scene, Bitvavo was founded in late 2017 and launched its mobile app in July 2020. Bitvavo has three membership tiers that allow you to increase trading limits and deposit speeds. Bitvavo also allows you to store your cryptos on the platform, although, as usual, this is not recommended.  

Fees: Variable based on volume, from 0.15-0.25% for small trades.

Security: High

Number of coins/pairs: 50+

Daily trade volume: Euro 10M

Liquidity: 4/5 

Account minimum: None

Pros: Specificity to European market, advanced trading tools 

Cons: Not available outside of Europe, cannot deposit with credit card

Best Cryptocurrency Exchange for Middle East: Rain

Rain easily stands out as the leading cryptocurrency exchange based in the Middle East. Rain was the first exchange licensed in the Middle East when it was founded in Bahrain in 2018. Rain focuses on serving the Middle East and North Africa. 

Fees: 1.5-4%

Security: Unknown

Number of coins/pairs: 24 pairs

Daily trade volume: Unknown

Liquidity: Unknown

Account minimum: None

Pros: Specificity to Middle Eastern markets

Cons: High fees

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges are online trading platforms for cryptos. In other words, exchanges are apps and websites through which you can sell, purchase, and store cryptocurrencies. Many exchanges allow you to purchase cryptos with fiat currency such as dollars or Euros, while some allow for purchase and sale from crypto-to-crypto only. 

Note that while exchanges can often store your cryptos, they are not designed for this purpose and you should ideally store your cryptos with a hardware wallet like Trezor.

Different Types of Cryptocurrency Exchanges

The Difference Between a Centralized and Decentralized Exchange

Cryptocurrency exchanges can be centralized or decentralized. The difference between a centralized exchange and a decentralized one is that the trades on a centralized platform happen on the servers owned by that platform, while the trades on a decentralized platform happen on their own blockchain and are therefore distributed across many computers in the network. In other words, with a centralized exchange, the exchange is executing trades on your behalf. This means that the centralized exchange can exert more control over the trading process compared with decentralized exchanges, in which you maintain full control over your trades. 

Cryptocurrency Trading Platforms, Direct Trading and Brokers

In addition to centralized vs decentralized, cryptocurrency exchanges are distinguished by the kind of trading that they allow. 

Cryptocurrency trading platforms, also known as automatic market makers, facilitate the transfer of cryptos from one user to another based on an exchange rate set by the platform. 

Cryptocurrency direct trading platforms are similar to trading platforms except that they utilize order books that allow each user to set their own exchange rate when they are looking to buy or sell. 

Finally, cryptocurrency brokers are the simplest and most common. Brokers operate like banks in that the user trades the platform itself instead of with another user. 

Spot vs Derivative Cryptocurrency Trading

As with the other financial markets, cryptocurrency trades can be spot trades or derivative trades. A spot trade is called that because the trade happens “on the spot” (usually a couple of days after the contract is made). Spot trades allow for trades based on the current values of the assets in question. By contrast, derivative cryptocurrency trades, also known as futures, are based upon the future value of the asset. Many of the larger cryptocurrency exchanges have platforms for both spot and derivatives trading. 

What is Cryptocurrency?

A cryptocurrency is a digital currency that is supported by a blockchain. The blockchain is a distributed public ledger of transactions that allows everyone to verify the trades that occur. This serves the dual purpose of controlling the production of cryptocurrency units as well as verifying the transfer of the currency. This is how cryptocurrencies ensure security and stability without centralization. 

Many cryptocurrencies are designed around blockchains that serve other purposes, such as the Ethereum blockchain, which is designed to execute smart contracts. This blockchain is host to many different cryptocurrencies, including Ethereum, Chainlink and 0rx. 

About the Cryptocurrency Market

The cryptocurrency market is still young but rapidly increasing in popularity amongst financial analysts and investors. The cryptocurrency is dominated by Bitcoin, the world’s first cryptocurrency, followed by Ethereum and then a huge number of “altcoins.” Altcoin is a term used to describe all cryptos that aren’t Bitcoin. Many of the altcoins, such as Chainlink and 0rx, are based in the Ethereum blockchain.

The cryptocurrency market capitalization reached an all-time high in late 2017/early 2018 at about $750B. Since then, the market contracted and stabilized for a time but is now once again expanding rapidly. The current market cap (November 2020) is about $440B. The current growth in the market coincides with increased news and engagement from some of the world’s biggest financial players, such as PayPal’s recent announcement to allow Bitcoin transfers on the platform. 

Cryptocurrency Terms

For those just starting to dabble in cryptocurrencies, even the terminology can be confusing. Below are definitions for some of the basic cryptocurrency terms.

Blockchain: A list of transactions in a network.

Decentralized: A network that is not stored in a single database or server, but is instead distributed across many devices in the network.

Mining: Mining is the method by which transactions on the blockchain are verified. The process of mining also involves the creation of new units of cryptocurrency. 

Cryptocurrency Exchange: A cryptocurrency exchange is a platform that facilitates the transfer of cryptocurrency between different members of the network. This is how individuals can purchase cryptocurrencies. 

Initial Coin Offering (ICO): An ICO is the launch of a new cryptocurrency. Similar to an IPO for a company, during an ICO, investors can purchase the very first units of a new cryptocurrency. This can allow investors to see tremendous returns, but is accompanied by increased risk as the value of the currency is uncertain.

Cryptocurrency Wallet: A cryptocurrency wallet is an entity’s identifier on the blockchain. Similar to a physical wallet, this is how an individual or corporation can store their cryptocurrencies. 

Pros and Cons of Cryptocurrency Trading

Trading cryptocurrencies is a great way to help create the future of the world financial system while also yielding a return on investment. However, since the cryptocurrency markets are all still very young, trading cryptocurrencies comes with a higher level of risk than more conventional investment strategies.

Pros of Cryptocurrency Trading

  1. Participate in the future of currency

  2. Have the potential to achieve very high return on investment

  3. Accessible to anyone in the world, even without a bank account

Cons of Cryptocurrency Trading

  1. High risk related to market instability, uncertain regulations, and potential to lose access to your funds

We hope this list of the top cryptocurrency exchanges for 2020 has been helpful. As you can see, the world of cryptocurrency and cryptocurrency investment is vast. It is impossible to evaluate each of the huge number of exchanges and cryptos out there, so make sure to do your research and consult with a professional advisor if possible. 

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