The ten best crypto exchanges in 2021
Taxtoken.io has taken a closer look at the established exchanges and created a top 10 ranking for you.
In our ranking, we have not only considered classic cryptocurrency exchanges, but also futures exchanges and “decentralised exchanges (DEX)”.
Our selection includes something for experienced traders as well as for newcomers.
Cryptocurrencies are extremely popular at the moment and many (new) traders or private investors want to profit from the massive price movements of the crypto market or simply buy Bitcoin. But which crypto exchange is best suited for this? What alternatives are there? Taxtoken.io took a closer look at the established exchanges and selected the best for you. In this review, we show you the best ten cryptocurrency exchanges that you should definitely keep an eye on in 2021.
Due to the current Bitcoin bull run, more and more new traders or private investors are entering the crypto market who mainly want to buy or trade Bitcoin. Experienced (crypto) traders can find a suitable exchange relatively quickly, but they also have to do some research first. For inexperienced traders or newcomers, however, the search is much more time-consuming. That is why we have decided to help you with your search.
In our ranking, we have taken into account not only classic cryptocurrency exchanges, but also futures exchanges and “decentralised exchanges (DEX)”. The following 10 cryptocurrency exchanges are our top 10 for 2021:
eToro Experiences & Test 2021: Our Rating
Beste Crypto Exchange Brokers 2021
9.3 / 10
8.7 / 10
8.3 / 10
7.9 / 10
7.0 / 10
WHAT IS ON THIS PAGE?
- The ten best crypto exchanges in 2021
- Beste Crypto Exchange Brokers 2021
- 10 Best Cryptocurrency Exchanges in the UK
- Features to Look for When Choosing a UK
- Trust and security
- Types of exchanges
- Help and support
- Recommended brokers 2021
- Usefull mini guides how to work on exchanges 3 steps to trading on a cryptocurrency exchange
10 Best Cryptocurrency Exchanges in the UK
eToro has been around since 2007. Then as now, you can not only buy or trade cryptocurrencies, but also other stocks, commodities, indices and assets. In the meantime, eToro has developed a platform specifically for cryptocurrencies called eToroX.
eToroX offers professional crypto services for trading firms and even institutional traders. At the time of publication, eToroX's daily trading volume is around USD 100 million.
eToro is also the world's leading social trading platform. That's why it's worth keeping an eye on Exchange 2021.
Binance is the world's largest and probably best-known exchange in the crypto world. On the cryptocurrency exchange, you can easily buy or sell cryptocurrencies or trade derivatives. At the time of publication, Binance's daily trading volume is around USD 37 billion, which is significantly higher than that of the other exchanges. The platform is also known for its ease of use.
On Binance, you can currently trade a total of 275 different cryptocurrencies. The exchange offers both bank transfers and credit card payments.
Binance is expected to remain the largest cryptocurrency exchange in the near future. So if you want to buy bitcoin or trade cryptocurrencies, you should definitely take a closer look at Binance.
Coinbase is the most popular exchange in North America. It was founded in 2012. Meanwhile, more than 43 million verified users from over 100 different countries are registered with the exchange.
The daily trading volume of the cryptocurrency exchange is currently around USD 5 billion. More than 44 different cryptocurrencies can be traded on the exchange.
The fact that the exchanges' holdings are insured is also a big plus. In addition, the exchange offers uncomplicated deposit or withdrawal options. This is one of the reasons why most North Americans buy bitcoin on this very exchange.
Bitpanda is a classic exchange for buying and selling Bitcoin and other cryptocurrencies.
The German-speaking company is based in Austria and is therefore also regulated in Europe.
The exchange not only offers comparatively low fees, but also many exciting features such as a crypto savings plan.
KuCoin is an exchange registered in Hong Kong in 2017 (but most likely actually based in China) that is highly trusted in Europe.
. In this case, no traditional currencies are used, the base currency for settlements is Bitcoin, which is a major difficulty for inexperienced users.
To access transactions in several dozen cryptocurrencies, you must first use your cryptocurrency wallet.
The company is headquartered in San Francisco, USA, and has been awarded several times as the best and safest trading platform by independent media.
The operators see Kraken as one of the largest Bitcoin exchanges, when trading in euros, Canadian dollars, American dollars, British pounds and Japanese yen.
The Bison app is a relatively new app for trading cryptocurrencies.
Behind it is the traditional stock exchange Börse Stuttgart.
The goal of the Bison app is to make trading in cryptocurrencies suitable for the masses. The application is accordingly simple: you download the app, register and verify yourself, and can already start trading.
The crypto exchange Bitstamp is based in Luxembourg, has been firmly established on the market for some time and is one of the best-known crypto providers. The crypto exchange is now a major player on the market The platform of the provider, which has been active on the market since 2011, is very simple and can be understood within a short time. Deposits can be made with a fiat currency or a cryptocurrency as soon as a trading account has been created.
The platform has a simplified view, which can be accessed via the "Buy/Sell" button. Alternatively, you can select the "Trading View", which offers an extended view that will appeal to experienced traders in particular, as it provides more in-depth information.
In both views, the crypto/currency pair is selected, then the desired amount is entered and the order type is selected. The coins are credited to the account after the purchase and order execution. Afterwards, the coins can be transferred to an external wallet or another crypto exchange.
Cex.io offers a wide range of services for Bitcoin and other cryptocurrencies. The platform allows users to easily trade fiat money for cryptocurrencies and vice versa cryptocurrencies for fiat money. For those who want to trade Bitcoins professionally, the platform offers personalised and user-friendly trading dashboards and margin trading.
In addition, CEX also offers a brokerage service that provides beginners with an extremely easy way to buy bitcoin at prices that more or less match the market price.
The Cex.io website is secure and intuitive and cryptocurrencies can be stored in secure cold storage (no standing connection to the internet).
CoinMama is a long-standing broker platform that anyone can visit to buy Bitcoin or Ether with their credit card or with cash via MoneyGram. CoinMama is ideal for those who want to buy digital currencies in their local currency instantly and easily.
Although the CoinMama service is available worldwide, users should be aware that they may not be able to use all of the website's features in some countries.
CoinMama is available in English, German, French, Italian and Russian.
Features to Look for When Choosing a UK Exchange
The range in user-friendliness is wide. Buyers should be aware that some offers are almost exclusively geared towards easy access. However, providers have to compromise on other points in this respect.
If, on the other hand, the bottom line is a higher priority, the user experience may be less important. There are also differences in the method of payment and speed.
Almost without exception, every exchange can be used in English. However, if you are looking for a German interface, you will not always find what you are looking for. But this is the case with all the providers we tested.
Direct purchase portals attract with easy-to-use interfaces. The individual steps up to the purchase are easy to carry out.
On the other hand, if you go to an exchange, you cannot see the wood for the trees at first. Without experience of stock exchange principles with order books, ask and bid offers, the first transactions are difficult.
Even though cryptocurrencies are not necessarily defined as “money”, transactions with them involve the transfer of value. Platforms are therefore required to adhere to certain compliance principles. One of these is verification.
For some, it is sufficient to transfer a symbolic amount, for example 1 cent, from an existing bank account, to provide the mobile phone number or to go through a video identification procedure. Others require a copy of the identity card or an invoice with the address given.
Verification can take place in stages. This means that with larger amounts, higher hurdles have to be passed. This is how the operators protect themselves against possible abuse.
Bitpanda and the BISON app did very well here. Here you are connected to a German-speaking provider who carries out the verification directly with a mobile phone camera or webcam. With the other providers, it sometimes takes a little longer, as identity documents or invoices have to be uploaded to verify the identity.
Number of coins
Almost all exchanges carry the “common” coins. Almost without exception, these are the currencies with the largest market capitalisations, such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple (XRP) and EOS.
While direct providers limit themselves to a few currencies that are in high demand, it is not uncommon for exchanges to have hundreds of coins listed.
The quality of the coins offered varies greatly. While LiteBit offers a few obscure cryptocurrencies (keyword “shitcoins”), Bitpanda places a lot of emphasis on the selection of projects in terms of legitimacy and reputation in the community.
Number of payment methods
In principle, it is possible to pay or exchange with cryptocurrencies on exchanges. However, especially for beginners and/or for tax optimisation, it makes sense to use payment methods in fiat currencies.
Almost all platforms offer payment by SEPA transfer. It is often the only fee-free option. Credit cards are also common. This method incurs steep costs. Fees of up to 4 % are quite common.
After that, the variety of payment options becomes thin. Depending on the location of the provider, regional payment channels such as Sofortüberweisung are added. PayPal does not run a platform, despite the expressed wish of the user community.
While Coinbase only offers credit card and SEPA transfer, the European providers such as Bitpanda or LiteBit have some more common payment methods to choose from, including GiroPay and SOFORT.
The payment methods of the German “BISON App” currently leave something to be desired.
Duration of the payout of fiat currencies
There are almost no differences between the providers here. The usual time is 1-3 working days.
Duration of the dispatch of cryptocurrencies
Once the cryptocurrencies have been purchased, they can be transferred to your own wallet. Some providers take longer to send coins, others are faster. It currently takes a little longer with the BISON app. But this should change in the future.
Crypto Prices (USD)
The range of fees and prices is very wide. Users are well advised to consider these criteria when making their selection and to align their buying and selling strategy accordingly. Because conditions take effect where it hurts the most: in the wallet.
Fees of the provider
This is where the wheat is separated from the chaff, because genuine exchanges communicate fees clearly. They are always clearly charged on the transaction. Direct providers often include them in the purchase price. For buyers, it is thus often unclear how much they will ultimately pay for the service. Occasionally, the fees are shown in the FAQs. However, it also happens that customers can only obtain information by making an enquiry. Normally, the fees for direct purchase providers are between 1% and 1.5% of the purchase price. Real crypto exchanges such as Binance are significantly cheaper (0.1%).
Price compared to market prices
Here, too, the exchanges score points compared to direct providers. Their prices are close to the market prices and usually have only minor deviations. The spread with direct providers is much wider. Admittedly, this offers opportunities for optimising purchases. However, anyone looking to make a price-conscious purchase will tend towards the stock exchange. A direct purchase platform may and should therefore be judged more by the advertised prices. No buyer has to accept exorbitant prices, not even for the sake of convenience. With all providers offering direct purchase, the purchase price increases significantly if one buys large quantities.
Fees for deposits and withdrawals
Not surprisingly, there are no fees for depositing funds on virtually any platform. After all, providers want customers to spend money and initiate transactions. Things can get steep in the other direction. While transfers in fiat currency rarely incur fees, fixed amounts are used for crypto withdrawals. They are often even higher than the transaction costs of the respective blockchain. Almost all providers maintain a fee overview that helps users find their way around. Here, too, strategic thinking is called for: bundling payouts to get above a certain threshold amount for charging fees can be worthwhile.
Fees for alternative payment methods
SEPA transfers are generally free of charge. Credit card payments incur 2 % to 4 %, and fixed charges are common for other methods. For example, with Giropay, users pay 2 euros per transaction.
eToro Experiences & Test 2021: Our Rating
Trust and security
Fees or not – the real core in choosing the right platform is trust criteria such as ownership, protection of the coins and transparency. Thanks to many negative incidents, exchanges have not come off well in the media in recent years. It is therefore all the more essential to check all criteria before making a purchase decision.
Size, age and location of the exchange
Important criteria that users should pay attention to are the size, age and location of the provider. Unfortunately, these are points that are not always easy to see from the outside. Those who want to be on the safe side are therefore well advised to research the exchange intensively.
As a rule of thumb, the larger and older the exchange, the more reliable it is. If the provider is located in a country with an official regulatory framework, as is often the case in Western Europe, for example, a safe platform is more likely.
Many two-faced providers are based in tax havens or in countries where the arm of Justice cannot reach them. These exchanges are to be discouraged.
Owners and investors
Trustworthy providers are not afraid to disclose their ownership and investment structure. On the contrary, transparent investors clearly show their objectives. They are interested in the long-term success of the investment.
Time and again there are reports of two-faced masterminds. Often the actual owners are hidden behind obscure corporate entanglements, already associated with criminal machinations or not even known in the first place. Openly communicating stock exchanges that demonstrate transparency are preferable.
Investors who deposit money with banks in overnight and time deposit accounts enjoy protection in the EU through deposit insurance. Up to 100,000 euros per bank and person are insured. In the crypto world, this is not mandatory.
However, some exchanges have introduced protective mechanisms, for example by insuring their hot wallets with a corresponding institution. Other providers create their own insurance protection by depositing part of their revenues in a claims fund (“SAFU Fund”). In recent years, the providers have also invested heavily in cold storage of the coins. If there are hacker attacks, many exchanges are responsible and reimburse users for the lost amounts.
One of the most fundamental questions is whether an exchange is operating within the law at all and adhering to the prescribed frameworks.
Regulatory requirements include KYC and AML, for example. KYC stands for Know Your Customer and refers to the practice of identifying customers. AML (= Anti-Money Laundering) verifies whether money laundering is taking place.
Even if verifications cost time and nerves, users should be happy about such initiatives. Because it means that the stock exchange takes its job seriously.
Known hacker attacks
Hardly any platform is invulnerable. Even prominent exchanges are regularly hacked. Wherever there are security gaps and money is tempting, attackers become active.
However, it is not decisive whether attacks happen or not. What is important is how providers deal with this fact. Were countermeasures taken immediately? What lessons do exchanges learn from this? Were further security options created? Did users suffer damage and were they compensated?
2-factor authentication is the industry standard. Providers differ in the extent to which they enforce login protection.
Some require it proactively from customers. For others, it is optional, as many exchanges want to keep the barriers to purchase low.
Bug Bounty Programmes and Security Audits
With such programmes, companies recruit the community to find security vulnerabilities and thus prevent hacker attacks.
Respectable exchanges pay out rewards and thus encourage assistance and honest contribution among their customers. As a feature, they count among the positive attributes of a provider.
Types of exchanges
There are different types of cryptocurrency exchanges you should know about.
Centralised Exchange (CEX) – The exchange is responsible for security and for maintaining functionality and upgrades. It is easier to use and offers more liquidity. Most crypto exchanges are centralised.
Decentralised Exchanges (DEX) – On a decentralised exchange, the service does not control anything and is instead controlled by smart contracts. Transactions are executed on the blockchain and all coins are owned by the traders.
Instant exchanges – This is an app that allows traders to quickly exchange their cryptocurrency tokens with each other.
Hybrid Exchanges – This type of exchange combines the ease of use of CEX with the security of DEX to give the best of both worlds.
Fiat exchanges – These exchanges allow trading in fiat currencies such as US dollars, euros, etc.
Pure crypto exchanges – These exchanges only allow trading in cryptocurrencies.
You should be aware that crypto exchanges are not legally compelled to adhere to KYC and anti-money laundering guidelines. You will therefore find some providers on the internet who offer absolute anonymity and also charge lower fees. Just remember that you are buying these advantages at the price of the security of your data and your crypto assets. No user should rely on such unregulated platforms.
Help and support
The biggest differences between the providers are in the support.
Only very few exchanges offer a hotline or telephone number. In the case of providers with an imprint, you may find what you are looking for there. However, there is no guarantee that the customer can really help.
The classic in the online sector is used everywhere. Whether the answer to a question will also be given in the same language despite a website interface in German is not always foreseeable.
The exchanges have everything from a handful of FAQs to a detailed information portal.
Recommendable providers enable their customers to find answers quickly, without a long search.
When the bitcoin price rose dramatically in 2017, it was not uncommon to hear nothing in response to an email for weeks. The providers were simply not prepared for the onslaught.
That has improved in the meantime. Nevertheless, the range still extends from a few minutes to a few weeks. Where the response takes longer, this is detailed on the respective provider pages.
Although one would think that social media, especially Telegram and Reddit, should be standard, this is not the case. Crypto exchanges are sometimes in no way inferior to analogue companies in using the channels as mere announcement platforms.
It is all the better if a provider enters into dialogue with customers via Twitter & Co. and answers support enquiries promptly.
Different exchanges have different rates. You will be surprised how much you can save if you shop around. It's not uncommon for rates to fluctuate up to 10% and in some cases even higher.
How much can you buy? If you plan to buy a large amount, does the exchange support that much in exchange? There are also sometimes withdrawal limits for exchanges that limit how much you can withdraw at one time. This can be annoying as you have to withdraw small amounts within a few days if you have large amounts. OTC markets are available for buying large amounts of bitcoin, but these markets will not appear for other coins for now.
Recommended brokers 2021
According to their website support forum, this is “for security, regulatory compliance and fraud prevention”. The limits are based on several factors that include the payment method you used, how old your account is, your purchase history, and more. These limits are calculated automatically.
Usefull mini guides how to work on exchanges
3 steps to trading on a cryptocurrency exchange
Step 1 - Choose a cryptocurrency exchange
Considering the variables above, choose the cryptocurrency exchange that best suits your needs.
Step 2 - Register with the cryptocurrency exchange
Join the cryptocurrency exchange and verify your account. Make sure you verify your account to protect your personal data and coins.
Step 3 - Deposit the initial amount and start trading on the cryptocurrency exchange
The last step is to deposit your funds into your account. Then you can start buying and trading on the exchange’s website or smartphone app.
The (decentralised) exchanges presented above all have individual features (such as their own app, their own wallet) and a unique trading offer. You can decide what best suits your needs or tastes. In 2021, the cryptocurrency industry could experience an unprecedented boom. You’re probably here because you feel the same way. However, using a reliable, trustworthy and customer-friendly exchange is essential. Whether you are an experienced (crypto) trader simply looking for an (alternative) cryptocurrency exchange, or a newcomer who just wants to buy Bitcoin, the exchanges presented above are by far the best options for 2021.
Although the market often still lacks the necessary state regulations and the scene is generally considered to be less trustworthy, there are also reputable crypto exchanges such as Coinbase or Etoro.
Crypto exchanges where you can easily buy Bitcoins are, for example, Etoro, Coinbase, Kraken or Binance.
Ripple is an alternative financial payment system designed to simplify and transform cross-border payments so that they are 100% secure, virtually free and instantaneous.
In the early days of Ripple in 2013, the platform caught the attention of many financial institutions. Over the years, more than 100 financial institutions have accepted Ripple. In 2020, Ripple’s blockchain expanded to over 280 providers in over 30 countries.
1- Fake websites
Even if you follow a tip from someone who knows cryptocurrencies well, you may end up on a fake website. There are a surprising number of websites that mimic the pages of legitimate start-ups. However, these pages lack the small lock symbol in the address bar that indicates the use of the HTTPS protocol – a clear warning sign.
Because even if the page looks exactly like the original, you may be redirected to another platform when you pay. For example, you click on a supposedly legitimate link, but it leads to a fake URL with a zero instead of an “O”. Of course, you will not get to the investment option you actually chose via the corresponding platform. To avoid this problem, always enter URLs manually into your browser. Also, it’s better to double-check the address before hitting enter.
2- Fake apps
Another popular scam is fake apps that can be downloaded from Google Play or the Apple App Store. This is because although these apps are often found and removed quickly, they can still cause financial damage. According to Bitcoin News, thousands of users have already downloaded such fake apps for cryptocurrencies.
While the risk is higher for Android users, investors with other platforms should also be aware of the risks. Does the description or even the name of the app contain obvious spelling mistakes? Does the branding seem strange, e.g. because of different colours or a wrong logo? Look out for such signs and if in doubt, reconsider downloading the app.
3- Strange tweets and other social media posts.
If you follow celebrities and managers on social networks, there is a risk that they are in fact copycats. The same goes for cryptocurrencies, where malicious bots mimic legitimate accounts. Don’t trust any offers you receive via Twitter and Facebook – especially if they are too good to be true. Because fake accounts can be found everywhere.
If someone asks you to pay cryptocurrencies on these platforms – even if it’s only a small amount – you probably won’t see that money again. Even if you believe that this offer is legitimate because other users also respond to it, remember that these users can also be bots. Therefore, you must be extremely careful here.
4- Fraudulent emails
Even if emails look like they come from a legitimate cryptocurrency provider, you should be careful. Is the email identical to other communications, including logo and branding? Can you verify that the email address really belongs to the supposed company? It is precisely to check such factors that you should choose a provider behind which real people stand. This way, if you are in doubt, you can contact them directly. In addition, never call up links to get to the corresponding sites.
Cybercriminals often announce fictitious ICOs in order to steal substantial amounts. Do not fall for the corresponding offers in emails and on websites. Instead, carefully check the offer details.
You can buy cryptocurrency with a credit or debit card if your card supports “3D Secure”. With this payment method, you will not have to pre-fund your account to buy cryptocurrency. You can purchase cryptocurrency instantly without waiting for a bank transfer to complete.
Trading cryptocurrencies, such as Bitcoin, is not a criminal offence in UK.