2018’s Top Cryptocurrency Exchanges for U.S. Investors
Things move quickly in the world of crypto. Just as a coin can climb the charts in a matter of hours or days, so too can exchanges. Take Binance, for example. It has quickly become the most widely used exchange in the world over the course of less than a year. With all the changes and confusion, it can be tough to keep track of the best cryptocurrency exchanges. For those new to the space, finding an exchange you like and trust can also be a challenge with all the options. This guide lays out the key features of the top cryptocurrency exchanges in 2018.
We have to set constraints on this guide somehow, otherwise it would be too long to be useful. That said, for this guide we’ll be focusing on the top cryptocurrency exchanges that serve U.S. citizens.
Without further ado, let’s dive in.
Fiat Exchanges (USD)
The first thing you’ll need to do if you’re new to investing or looking to invest more money in crypto is convert your fiat currency to crypto. For U.S. investors, that means depositing USD with an exchange in order to get BTC or ETH.
We call the exchanges that accept fiat currencies “fiat gateways.” Since they deal in USD, they’re subject to a lot of regulations and they have to meet reporting requirements from state and federal agencies. This makes fiat exchanges more difficult to set up than crypto-to-crypto exchanges.
It also means that fiat exchanges usually have limited trading pairs, since those trading pairs are regulated. As such, if you want to buy a niche altcoin, you’ll usually have to purchase ETH or BTC at a fiat exchange and then transfer those funds to a crypto-to-crypto exchange in order to buy the token you want.
The top cryptocurrency exchanges for USD deposits are below.
One of the most popular and well-known options for USD transactions. Coinbase is headquartered in San Francisco and has been in operation since 2011. They’re generally considered secure and boast over 13 million users. However, they’re known for having some of the highest fees of any fiat gateway.
Since its founding in 2013, CoinMama led the way as the site where you could purchase crypto with a credit or debit card. This makes it super easy to use. Unlike other exchanges, CoinMama is a buy-only marketplace that allows you to immediately transfer funds to other wallets upon purchase. They also have relatively high fees, but the simple experience makes it easy to use.
GDAX is Coinbase’s older brother, run by the same company. We say older brother because GDAX’s interface and functionality attract more advanced investors than Coinbase’s beginner-friendly interface. Many U.S.-based traders who are serious investors gravitate toward GDAX.
Kraken came on the scene around the same time as Coinbase in 2011. It’s also based in San Francisco, so they’re rivals. Users seem highly divided on Kraken with some praising the smooth experience on the platform while many others decry its customer service and buggy features.
CEX.io is a London-based exchange that’s been in operation since 2013. They’ve received a fairly good reputation over the years for being user-friendly and well-designed. Recently, however, there have been customer service issues, so proceed with caution.
LocalBitcoins isn’t an exchange so much as it’s a matching site for people who want to buy and sell crypto in the real world. You can then meet up in person or trade online via a myriad of payment methods. As long as you do your due diligence on the person you’re trading with, LocalBitcoins is a great way to get into crypto.
BitStamp is one of the most reliable exchanges with some of the lowest transaction fees. Based out of Luxembourg, it has been around since 2011.
Gemini distinguished itself with its customer support that’s well above industry average. It’s a New York-based exchange, founded in 2015 by the Winklevoss twins. They don’t offer many cryptocurrencies and deposits are limited to bank transfers, but Gemini is one of the best exchanges out there for beginners.
BitFlyer is new to the U.S. but not new to the world of cryptocurrency trading. It’s one of the largest Bitcoin exchanges in the world. They’re not yet licensed in all 50 states, but they are operating in a majority of them.
BitQuick is different from most exchanges in that you can physically deposit cash to a bank account in order to fund your orders. This non-traditional structure makes it a little riskier to do business with (since there are no chargeback options), but BitQuick generally has a good reputation in the community.
Paxful works in a similar way to LocalBitcoins, creating a marketplace where buyers and sellers can meet up and agree on terms. The exchange launched in 2015 and is based in Delaware. The fees for transactions, however, can be high.
Once you’ve traded your crypto for fiat, you’ll want to move your newly acquired funds to an exchange with more options. Fiat exchanges don’t usually carry niche currencies, so in order to get those, you’ll use a crypto-to-crypto exchange. Here are the best ones:
The speed at which Binance has become the top crypto exchange in the world is staggering. In a few short months, it has dominated the market. For good reason, too. It offers a lot of features, trading pairs, security, and liquidity along with low fees. Its Binance Coin also incentivizes trading and lowers fees.
Bittrex is based in Seattle and they’ve gained a reputation for wanting to strictly follow U.S. regulations. They’re a safe, well-established option for trading with good customer support.
Cryptopia is known as an exchange for trading niche or less popular altcoins. They have low fees and good customer support. However, they don’t accept Ethereum and the small nature of the exchange means low volume for trading.
Poloniex was among the top cryptocurrency exchanges in the world. However, its popularity has waned in the face of new competitors, customer support issues, and problems with withdrawals.
Those are the top cryptocurrency exchanges for U.S. investors in 2018. If you find one that strikes your fancy, click the link to learn more in our comprehensive exchange reviews. Then, signing up at each exchange’s website is usually straightforward. If you’re new to crypto investing, be sure to read up on best practices for keeping your crypto secure like using two-factor authentication and moving your coins to a private wallet once you’ve purchased them.
Crypto.com Integrates PayID Offering 5M Users an Easy and Unique Way to Send & Receive Crypto
HONG KONG, October 19, 2020 — Crypto.com today announced PayID, a universal payment identity developed by the Open Payments Coalition, is now available on the Crypto.com App.
Crypto.com’s 5M+ users can register for a PayID from the Crypto.com app, consolidating complex wallet addresses and accounts into a simple ID that works across any payment network and currency. Users who register for their unique PayID will get an exclusive Crypto.com-branded, easy-to-read ID — such as “yourname$payid.crypto.com — that enables users to send/receive crypto payments from other compatible wallets with just a single ID, easing their ability to connect to 100M+ crypto users worldwide.
PayID solves a key pain point in the crypto payments world, which consists of many closed and complex networks. Participants must manage multiple long and random wallet addresses, increasing the likelihood of erroneous transactions. PayID creates a free, open and common protocol that allows for interoperability between any payment network or currency.
Starting today, Crypto.com is offering early access for select customers to register their unique Crypto.com PayID. To be eligible:
- Stake 10,000 CRO or more in Crypto.com Exchange; or
- Stake 10,000 CRO or more in Crypto.com App
On 2 November 2020 all Crypto.com App users can register their own Crypto.com PayID within the Crypto.com App.
Once registered, users can send crypto from other compatible wallets to the Crypto.com App with just their PayID, instead of a full-length crypto address. At launch, supported cryptocurrencies include CRO, ETH, BTC, XRP and many more ERC20 tokens. Users can also send crypto to other compatible wallets using PayID hosted by other members in the Open Payments Coalition.
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity. Crypto.com serves over 5 million customers today, providing them with a powerful alternative to traditional financial services through the Crypto.com App, the Crypto.com Card, the Crypto.com Exchange and Crypto.com DeFi Wallet. Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have ISO/IEC 27701:2019, CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance. Crypto.com is headquartered in Hong Kong with a 600+ strong team. Find out more by visiting https://crypto.com
Crypto More Popular Than Gold Among Russian Investors: Report
A survey among over 2,000 Russian investors has placed cryptocurrency next to gold in terms of popularity. Moreover, younger investors aged below 30 have displayed significant favoritism towards digital assets.
Crypto Ranks Above Gold Among Russian Investors
According to the study published by the World Gold Council, investors from the world’s largest country by landmass have allocated the most funds into generally accepted as safer instruments such as savings accounts, foreign currencies, real estate, and life insurance.
When asked what sorts of investment tools they had invested in the past 12 months, they placed cryptocurrencies as the fifth most popular asset with 17%. Interestingly, gold came next with 16%.
World Gold Council Director of Central Banks and Public Policy, Dr. Tatiana Fic, commented that gold had been a valuable part of Russia’s history. She explained that the development of the gold mining industry began in 1745 with the discovery of gold in the Urals. In the next 100 years, more than half of the global gold production came from Siberia.
However, she noted that the investment market has declined in interest lately. Dr. Fic reasoned that there’s an evident lack of education, resulting in people steering clear from the bullion. She also claimed that investors fear buying fake or counterfeit gold products.
It’s worth noting that Russia seized purchasing gold earlier this year following half of decade of increased accumulation.
Younger Generations Keen To Experiment With Crypto
WGC’s report confirmed previous narratives that younger generations prefer allocating funds into riskier investment instruments such as digital assets.
“18-to-24-year-olds are much more willing to take risks to get exponential growth, rather than take a long-term view. For example, they are the least likely to have invested in a savings account but are the most likely to have invested in collectibles – and around two-thirds are considering investing in cryptocurrencies.” – the report reads.
The paper highlighted that the growing role of mobile apps linked to investment accounts have made it easier for tech-savvy youth to purchase their preferred assets. Cryptocurrencies lead the way “with nearly 80% being bought exclusively online.”
Although physical gold has been bought mostly offline, the report noted that online investments in gold-backed ETFs and vaulted gold have jumped in the past few years as well.
Swiss Government Starts Discussions on Local Blockchain Regulations
A new consultation process on blockchain laws is set to begin in Switzerland. Initiated by the country’s Federal Department of Finance, the operation is focused on initiating a blanket ordinance in the local blockchain and distributed ledger technology environment.
For Better Laws In Blockchain Industry
A number of parties, individuals, and other interested groups are set to be included in the upcoming consultations in the blockchain spectrum. The project is planned to go on for three months, ending on February 2 next year.
As per a recent report by Switzerland’s Federal Department of Finance, the blanket ordinance is set to help legislative amendments, recently voted by Parliament, turn into law at the federal ordinance level. The grand plan is that the Federal Council will bring amendments to the acts and ordinates into force on August 1, 2021.
The news appears a month after the Swiss Parliament unanimously adopted a Federal Act on the Adaptation of Federal Law do Developments in Distributed Ledger Technology (DLT). With it, the government amended several active finance and corporate laws, re-shaping them with additions in favor of blockchain technology and DLT.
According to the report, the act has improved the framework conditions for the country to turn into a significant, innovative, and sustainable place for blockchain and DLT firms to settle.
A Further Leap Into The Crypto Means Of Payment
The recent news comes shortly after the Swiss government announced that soon cryptocurrency would be operable for tax payments. As CryptoPotato recently reported, Bitcoin and Ethereum will become acceptable assets for the purpose, as Zug, a canton in Switzerland, announced its partnership with cryptocurrency broker Bitcoin Suisse. Both sides declared their readiness to realize the acceptance of cryptocurrency for tax payments, starting from February 2021.
Individuals using the crypto option for tax payments would be able to notify authorities and, thereafter, get a QR code through email.
According to the announcement, Bitcoin Suisse will assist in converting crypto to francs, this way avoiding state incurring losses due to price volatility.
The option will give taxpayers, both individuals, and companies the opportunity to pay their taxes with cryptocurrency up to about CHF 100,000 ($110,000).
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