Which is the best crypto

Bitcoin exchanges

Exchanges for Bitcoin and other cryptocurrencies

A Exchange for bitcoin is a digital trading platform on which crypto currencies such as Bitcoin can be exchanged or bought with fiat currencies (euros, dollars, etc.). As simple as this definition is, the various exchanges can be just as varied. There are now a large number of exchanges that make trading with crypto currencies possible.

Our top 5 Bitcoin exchanges in comparison

Stock exchangeCryptocurrenciesPayment MethodsserviceverificationHead office
eToroBitcoin +18 moreBank transfer, Paypal, VISA, Mastercard, Sofortüberweisung, Skrilleasy< 3="">Gibraltar
BitpandaBitcoin +29 moreBank transfer, Paypal, VISA, Mastercard, Sofortüberweisung, Skrill, iDealeasy< 1="">Austria
BinanceBitcoin +100 moreVISA, Mastercardmedium< 1="">Malta
OctopusesBitcoin +20 moreBank Transfermedium< 1="">United States
CoinbaseBitcoin +19 moreBank transfer, Paypal, VISA, Mastercardeasy< 1="">United States

What exactly is a Bitcoin exchange?

They are also called "exchanges". They can also be compared to stock exchanges. They are platforms on which Bitcoin buyers and sellers can meet and trade. In contrast to a stock exchange, for example the Frankfurt Stock Exchange, they are not a physical location.

In the early days of cryptocurrencies, Bitcoin was exchanged via forums or other networks where people traded directly with one another. Today most people prefer exchanges such as Binance or Coinbase. Not only do the platforms offer more security, they also automate processes and help to find exchange partners more quickly. There is an enormous volume of trading on the stock exchanges every day. Hence their Data used for the Bitcoin course and other cryptocurrencies.

What are cryptocurrencies actually?

In our comprehensive article on cryptocurrencies, you can find out what cryptocurrencies are and what different types there are.

In addition to individual differences, such as the fees, the crypto currencies offered, which fiat currencies are accepted, there are a few significant differences that determine the way you trade digital currencies on the platform:

  • Stock exchange
    Exchanges usually focus on trading various crypto currencies, comparable to the stock exchange. In the meantime, however, some providers also offer the buying and selling of Bitcoin and Co. with fiat currencies.

  • Peer-to-peer exchange
    This refers to websites that primarily offer a platform for buyers and sellers so that they can trade cryptocurrencies with one another. The website only provides the platform and helps with matchmaking. Buyers and sellers have to agree on the price to buy and sell for themselves. The exchange collects a fee for providing the platform.

  • Broker
    This is a platform in which the buyer or seller deals directly with the operator of the site himself. Trading takes place at a price previously set by the platform, which is based on the current prices. There is also a fee here.

  • Decentralized exchange
    As the name suggests, they are about decentralization. They do not keep the customers' funds on a central platform, but instead enable decentralized peer-to-peer transactions directly between users, in line with cryptocurrencies. If the DeFi (decentralized finance) trend continues, it can be assumed that decentralized exchanges will continue to gain in importance.

How does an exchange for Bitcoin work?

The details may differ depending on the exchange. But the first step is to register. While the registration itself is mostly very simple - an email address or mobile phone number is often sufficient for confirmation - this is Verification of the account often a little more complicated. Verification is about identifying yourself as a real person. You can do this by sending a copy of your ID, proof of residence or an extract from your account. The platforms want to make it more difficult for criminals and also comply with the guidelines of the supervisory authorities. It's about "anti-money laundering"(AML) and"know-your-customer"(KYC) guidelines. Even if the process may be cumbersome, it increases the seriousness of the exchange.

Then it's about depositing money on the platform. Either the fiat currency from the bank account or the crypto currency from the wallet. It is only when there is money in the depot that you can trade. Then requests and orders can be placed. The exchange looks for the right partners and initiates trading. If a transaction comes about, a fee is deducted. This also includes the "Miner's Fee". This is the fee that the blockchain of the respective cryptocurrency (e.g. Bitcoin) charges for the transaction.

Blockchain simply explained

In our comprehensive article on blockchain, you will find out in a simple and understandable way what a blockchain is and how it works.

In this case, algorithms and bots ensure that the trading partners find each other and that a trade occurs. They compare requests and offers with one another and carry out the transactions between the two depots themselves.

Are Bitcoin Exchanges Safe?

Every now and then news about hacks of Bitcoin exchanges shake and call the seriousness of the operators into question. In fact, hackers are constantly trying to gain access to the many exchanges and steal the funds held on them. The stealing of cryptocurrencies is becoming more and more the focus of hackers.

However, this is not because the Bitcoin exchanges are so easy to hack. There is just a lot more to be gained with a successful attack. Even so, the exchanges are not inherently dangerous. There are large crypto exchanges that could never be cracked. The operators make every effort to protect their users' accounts and to close the security gaps as quickly as possible in the event of an attack.

As an individual, there is something fundamental that you can do to protect yourself: Put your own wallet like the Ledger Nano S (experience report) to keep crypto currencies like Bitcoin safe there. The security of your own wallet is not automatically higher than that of the exchange. That depends on the wallet you choose. However, a single person is a far less lucrative target than an entire exchange with thousands of users. Cryptocurrencies that you do not want to trade in the foreseeable future should be removed from the platform and stored on your own wallet.

What should be considered when buying Bitcoin?

Apart from taking your own bitcoins from the crypto exchange for security reasons (for larger investments), there are a few more things to consider:

fees

The fees can vary widely. A fee of 1% is considered quite high, most fees are lower. The "makers", ie those who put offers for sale on the stock exchange, often pay less fees because they ensure liquidity. There may also be fees for withdrawing funds. Here you have to be careful not to fall for hidden costs.

Cryptocurrencies

Not only which cryptocurrencies are offered can be important, but also the trading pairs. Sometimes certain cryptocurrencies can only be exchanged for Bitcoin, Ethereum or Tether. It is not possible to buy a cryptocurrency with euros or dollars on all exchanges.

Regulations

Exchanges that submit to the regulations of supervisory authorities are often reputable and trustworthy. That is not to say that exchanges that are not overseen by any regulatory agency are automatically bad. Exchanges that only allow crypto-to-crypto exchanges are often not monitored by any regulatory agency as there is no fiat money involved.

Deposit options

If you want to deposit with euros, dollars or other fiat currencies, then you have to pay attention to which payment options are accepted. German-speaking stock exchanges often accept bank transfers and payment service providers, which are common in Germany.

experience

Find out more about the experiences other users have already made with a platform on the Internet. Have your credit suddenly disappeared? Has it been hacked often? How about the support?

Taxes

Trading in cryptocurrencies like Bitcoin is taxable under certain conditions. You can find everything you need to know in our article on taxes and cryptocurrencies.

Our stock exchange recommendations

Comparison of the best Bitcoin exchanges

eToro

eToro is a popular exchange for trading Bitcoin and other cryptocurrencies, stocks, ETFs, commodities and many other assets.

The deposit is easy, uncomplicated and can be done with Paypal, bank transfer (SEPA) and many other payment options. Through the so-called "social trading" even the actions of successful traders can be copied. You can find more information about eToro in our detailed experience report.

Advantages of eToro

  • quick and easy registration
  • clear and intuitive user interface
  • suitable for beginners
  • Trustworthy exchange that has existed for many years in the classic financial sector
  • unique "social trading" function

Cons of eToro

  • limited number of cryptocurrencies to choose from
Try eToro now

Disclaimer: 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money

Bitpanda

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 at European level.

The exchange not only offers comparatively low fees, but also many exciting functions such as B. a crypto savings plan.

Benefits of Bitpanda

  • very low fees
  • German-speaking provider
  • large number of cryptocurrencies available
  • quick and easy registration
  • easy operation and great customer support
  • useful functions such as B. Crypto Savings Plan

Disadvantages of Bitpanda

  • Fees are sometimes not obvious
Try Bitpanda now

Instructions on how to buy Bitcoin

The Cryptolist editorial team recommends, among other things, the Bitpanda exchange for buying and selling Bitcoin. Bitpanda offers a good selection of different cryptocurrencies, but above all it is characterized by easy handling, great user-friendliness and high security. On this exchange, Bitcoin and other crypto currencies can be easily bought and sold.

Bitpanda registration form

Step 1: Register with Bitpanda Börse

Click on the blue button "Get started" in the upper right corner on Bitpanda.de. You can now register by entering your name and email address. After a short time, a confirmation email should appear in your email inbox. Confirm your registration here.

Step 2: Provide proof of identity

In order to prevent fraud, identity theft and money laundering, it is mandatory for all crypto exchanges to prove your own identity. To do this, photos of the identity card usually have to be uploaded. Pay attention to the specific instructions from Bitpanda here.

Step 3: Link your account and deposit

In order to top up the Euro balance at Bitpanda, you have to enter your credit card or bank account. A further verification process can also take place here, if necessary, to ensure security. As soon as the steps are completed, you can top up your Bitpanda account with euros to buy Bitcoin and other cryptocurrencies.

To the Bitpanda website

Disclaimer: Every trade carries a risk. The content of our website is for informational purposes only and does not constitute investment advice or a buy or sell recommendation. Financial advice should always be sought from financial experts if possible.