It is official; cryptocurrencies have taken the world by storm.
What was once something only for the technology-minded amongst us, has now become the new mainstream obsession.
With everyone from your aunt, to your colleagues jumping on the bandwagon, you need to make sure that you don’t get left behind and don’t miss out on a mega opportunity to make some seriously good investments.
Of course, everyone has heard of Bitcoin, but there are hundreds of other alternatives out there, that all present viable options to line your pockets.
One of the most popular cryptocurrencies apart from Bitcoin is Ethereum.
If this is something that piques your interest, then you need to read on to find out more about Ethereum cryptocurrency exchanges and which is the best option for you!
What Is Ethereum?
To put things in the simplest terms possible, Ethereum is an open-sourced, a platform-based bit of software that operates on blockchain technology.
It enables developers to develop, and roll out a range of decentralised applications.
Instead of mining for Ether, as you would do with Bitcoin, you need to work to earn the crypto token. This token can then be used as a currency, or be used by application developers to pay for services on the Ethereum network.
A multi-purpose cryptocurrency, it is backed by a solid foundation and network of users, which many believe makes it more reliable than Bitcoin, especially with the ability of programming smart contracts.
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is similar in concept to Forex exchanges.
You open an account, deposit funds and then use those funds to buy, sell and trade in currencies.
In the case of a cryptocurrency exchange, this means that you trade with cryptocurrencies, looking to buy and sell them at the right times with the aim of making a profit.
What Type of Cryptocurrency Exchanges Are There?
There are two main types of cryptocurrency exchanges.
#1 Fiat-Crypto Exchange
As the name suggests, this is one where you enter the market with a fiat currency such as the Dollar or the Euro, and then you use it to buy a cryptocurrency.
The aim is to buy at a time where the price of the cryptocurrency is low against the fiat currency and then sell at a time where you make as much profit as possible.
Due to the volatile nature of most cryptocurrencies, there is ample opportunity to make yourself some money, as long as you get the timing right.
Take for example Bitcoin – when it was first launched, one Bitcoin was equal to $1. Now it is approaching $20,000 meaning anyone who invested in Bitcoin back then would make an absolute fortune if they were to cash it in for fiat currency today.
#2 Crypto-Crypto Exchange
To use this exchange, you already have to hold cryptocurrencies in a cryptocurrency wallet before you can partake in trading on an exchange.
You cannot deposit with fiat currency, and you cannot withdraw it either. To do so, you would have to go through another platform which allows such transactions.
For those that are looking to invest in crypto for the long term, a crypto-crypto exchange is perfectly good, but for those looking to just dip in and out before cashing out their gains, a fiat-crypto exchange is the best option.
The Best Cryptocurrency Exchanges For Ethereum
With Ethereum being one of the most popular cryptocurrencies, second only to Bitcoin, you shouldn’t have many problems in finding an exchange to trade on.
Of course, you need to consider whether you want crypto-crypto or fiat-crypto.
Below, we have provided some information on each option and the recommended exchanges that qualify, so you can do your research and work out which is the best option for you!
Crypto-Crypto Exchanges
Binance
It’s a new cryptocurrency exchange on the market.
Launched in July 2017 after their own ICO, they have quickly gained an excellent reputation for crypto-crypto trading.
Two of the main benefits are their ridiculously low trading fees (0.1% of the transaction value) and the enormous number of coins that they have available for trade.
At the time of writing, they offer over 45 different options, including of course Ethereum and Bitcoin.
Shapeshift
Shapeshift is an instant exchange that allows super-fast transfers between a range of cryptocurrencies including Ethereum, as well as Bitcoin, Litecoin, Dogecoin and Darkcoin.
You can make exchanges in generally less than ten seconds and Shapeshift focuses a big on time, privacy, and your security.
It is also one of the most anonymous exchanges out there as you do not have to sign up or provide your name or email address to facilitate trades.
It also offers an API which can be integrated into your website allowing you to accept a range of supported cryptocurrencies as payment and in an automatic fashion.
Changelly
The company started back in 2013, and it’s located in Prague, Czech Republic.
With two-factor authentication and an HTTPS security protocol, they are pretty secure as far as exchanges go.
Furthermore, your funds are never actually stored in Changelly as all of the coins are processed immediately to your wallet.
It is similar in some ways to Shapeshift in that it is entirely anonymous, and you do not need to hand over any of your personal information such as your email address.
Poloniex
It’s an exchange platform with a bit of a controversial reputation.
While some people advise steering well clear, many believe it is a perfectly viable crypto-crypto solution.
Whichever side you are on, it is still one of the worlds leading exchanges, and it gives users the opportunity to trade traditionally, but also to trade on leveraged margins – something that is quite rare in the world of cryptocurrency.
It also offers some great analysis options as well, so if you are someone that is truly serious about your trading, then this is an excellent option for you.
With over 100 cryptocurrencies and counting, available to trade, it is a genuinely diverse option.
Fiat-Crypto Exchanges
BitPanda
BitPanda is known as one of the most secure exchanges in the world.
Based in Austria, it offers a high level of security, as well as a super-quick transaction process. Furthermore, it doesn’t physically hold your funds at any time, instead of transferring to the buyer or seller instantly which further reduces the chance of any funds going astray.
You can buy Bitcoin, Ether, Litecoin and Dash, as well as trade them all for Bitcoin.
There are also lots of fiat options available which means there are plenty of opportunities for you to make yourself some money.
Apart from being super secure, it is easy to use and has a superb, user-friendly interface that makes buying, selling, and trading, easy and fun.
It is also worth noting that BitPanda offers a cryptocurrency wallet where you can store your Ether, but bear in mind that it is a digital wallet and that it might not be suitable for storing large amounts for an extended period.
Read our BitPanda review for more information.
Bitfinex
Based in Hong Kong, Bitfinex is a big deal in the world of cryptocurrency.
They specialise in facilitating trading between USD and Ethereum, along with seven other leading cryptocurrencies.
It’s the most popular and well-known exchange in the world when it comes to trading USD with cryptocurrencies.
As well as offering regular trading, Bitfinex gives you the opportunity to try leveraged trading with a maximum of 3.3 times, and it also allows a margin funding market for lenders.
Regarding volume, Bitfinex leads the way regarding size which means it has great liquidity which is good news for you.
For more details, read our Bitfinex review.
CEX.IO
Launched back in 2013, CEX.IO was initially just a Bitcoin exchange with an additional cloud mining service.
Now things have changed and due to increased demand, in 2016 they shifted their focus to include Ethereum trading on the platform.
Based in the UK, they have forged themselves a superb reputation, and they allow users to deposit using bank transfers and credit cards, which makes it very accessible for any cryptocurrency traders.
They are registered with FinCEN and carry various certificates with the Payment Card Industry Security Standards Council, as well as the Information Commissioners Office in the UK.
The exchange uses offline cold storage to keep their client’s assets safe, and they are one of the most “above board” exchanges available today.
Coinbase
Launched back in 2012, Coinbase is active in 32 countries and has over 12 million customers that have traded more than $40 billion in cryptocurrencies.
One of the stands out features of Coinbase is that users can trade at a set price which they base on the market value, which means that users can purchase their coins much quicker than on other platforms.
It is also one of the few remaining exchanges that allow credit card purchases as well as bank transfers.
The fees are not the cheapest around, and they range between 1.49% and 3.99% depending on the payment method, but it is less expensive than Coinmama or CEX for example.
You can buy Ethereum as well as Bitcoin and Litecoin, and there are plans in the works to add some additional currencies to the platform.
Coinbase has mixed reviews online, but check our Coinbase review to see what we think.
Iron FX
Iron FX is predominantly known for being one of the worlds leading Forex traders, but due to recent surges in interest, it has started to handle cryptocurrency trades as well.
They give traders the opportunity to trade in Ethereum, or Bitcoin against fiat currencies without the need to have your digital wallet – a requirement that most other exchanges ask for.
As well as trading against fiat or cryptocurrencies, you also have the opportunity to invest in Forex pairs, metals, indices, stocks, and a range of other financial instruments.
Final Thoughts
As you can see, there are a considerable amount of options available to those that want to buy, sell, and trade cryptocurrencies.
Some are highly reputable and recommended, others have slightly controversial reviews. The best thing to do is to decide whether you want to focus on crypto-crypto or fiat-crypto and then get ready to do some serious research.
Read reviews and weigh up the pros and the cons before you decide where you want to put your money.
Remember that when it comes to trading, it is not a one size fits all sort of scenario, and the best platform for you will depend on your personal preferences. As well as how much you want to trade, how often you want to trade, and how likely you are to want to withdraw to a fiat bank account.
There are a lot of considerations to make, but be reassured that there is a solution out there for everyone.
An important aspect to look at is also the country and accepted fiat currency that the exchange would take.
For instance, with BitPanda you can use Euro, while with Bitfinex, Dollar would be a much better option.
All of the above exchanges are some of the best Ethereum cryptocurrency exchanges, but you should check our Cryptocurrency Exchanges page for more reviews!
