🔥 The Best Crypto Exchanges 2021 - Crypto Exchange Comparison

Bitcoin and Ethereum and Ripple Coins

Bitcoin, Ripple, Ether and Co. are not only used as digital means of payment, but are also perceived as objects of speculation. Ultimately, you can achieve attractive profits with the appropriate strategy. But in order to be able to speculate or trade in crypto currencies, it is necessary to have an account with an exchange, i.e. a stock exchange. But which crypto exchanges are recommended? Is there even a top crypto exchange that stands out in direct comparison?

The best crypto exchanges & exchanges in comparison

Evaluation factors that must be taken into account in order to be able to say in the end that it is a top crypto exchange are, among other things, the user-friendliness, 

  • the payment methods, 
  • the offer as well 
  • the security and 
  • of course the fee structure. 

No matter how user-friendly the platform may be - if the fees are too high, it is advisable to choose another provider. This is also the case when the offer is tempting, but the user interface is confusing so that you cannot find your way around. Because confusion allows mistakes to happen - and mistakes should be avoided when it comes to trading with Bitcoin and Co. But even if the crypto exchange experiences are more of a negative nature, one can ultimately not say that this is the best crypto exchange.

Due to the fact that user-friendliness or finding one's way around the platform can be perceived individually as good or in need of improvement, it is all the more important to pay attention to points that can be objectively rated as an advantage or disadvantage. This includes regulation. But the support can also be assessed objectively - are the employees of the crypto exchange always available in a live chat for questions or can you only contact customer service by e-mail or is there any way to contact them?

The crypto exchanges eToro, Plus500, IQ Option, Libertex and XTB are among the most popular platforms in the German-speaking world - but awareness says little about quality. It is therefore advisable to take a look behind the scenes before deciding on a crypto exchange.

eToro

eToro login or registration

eToro may be one of the best-known providers on the market. This is primarily due to the marketing strategy chosen: Because eToro claims that you can make high profits even without knowledge or previous knowledge - this is made possible through so-called "social trading". Because in this case, as a CopyTrader, you can copy the strategies or decisions of successful traders and thus make profits without actual knowledge. eToro is available in more than 20 languages; over 2 million people use the offer.

The fee model is particularly attractive. Because eToro does not charge any custody fees and also waives so-called clearing account fees (administration fees). In addition, there are no or or dividend fees at eToro. However, there is a monthly inactivity fee of 10 euros if the user has not logged in for more than twelve months.

It should be noted that eToro only works with US dollars. However, the endowment is made in euros. For the conversions in the endowment, eToro charges a fee of 0,5 percent if you decide to bank transfer or instant transfer - when using the credit card, a foreign exchange commission of 1,5 percent applies. This is also the case when you use PayPal. When paying out, the fee is also 0,5 percent. In addition, eToro charges a fixed withdrawal fee of 5 US dollars.

eToro therefore offers the opportunity to buy Bitcoin extremely cheaply, dispenses with a confusing fee model and tries to give beginners a chance to dive into the subject of crypto currencies with a user-friendly platform.

Regulation: In Cyprus, eToro is regulated by the Cyprus Securities & Exchange Commission (CySEC); in the UK, eToro is regulated by the Financial Conduct Authority (FCA) and in Europe, eToro is regulated by the Markets in Financial Instruments Directive (MiFID). In Australia, eToro is regulated by the Australian Securities and Investments Commission (ASIC).

Plus500

Plus500 CFD trading and more

Plus500 is a broker that offers CFD trading on indices, commodities, currencies as well as stocks and of course crypto currencies. Founded in 2008, Plus500 may already be one of the "older" providers on the market with its headquarters in Israel.

Trading takes place via three trading platforms - two were designed by the broker. The maximum leverage is 1:30. The low minimum deposit of just 100 euros is particularly attractive.

Plus500 scores in the area of ​​deposit and withdrawal methods: Here you can make a bank transfer, but also top up your account with your credit card or use other services - such as the Giropay, PayPal or Skrill payment systems.

Since it is a very simply designed trading platform through which numerous products can be traded, Plus500 may on the one hand be ideal for beginners, but on the other hand also appeal to experienced as well as professionals.

Regulation: Regulation or "supervision" is carried out by the UK Financial Supervisory Authority (FCA). 

IQ Option

IQ Option website logo

IQ Option provides over 250 base values. Probably the most extensive area is that of stocks; there are even papers from the football clubs Juventus Turin such as Borussia Dortmund. The choice of forex trading is almost as wide - there are over 100 currency pairs here. Due to the fact that there are not only majors, all those who like to speculate with exotic species will also get their money's worth. Raw materials and goods are also available - as are 12 cryptocurrencies.

IQ Option scores with a so-called retail investor account and an account for professionals. The retail investor account has negative credit protection, so that a trader ultimately cannot lose more money than is available on his trading account. The deposits are also covered (deposit protection fund). The maximum leverage is 1:30. A few more functions are available for the professional account - for example, there is the option to participate in trading tournaments and a leverage of 1: 500.

Furthermore, IQ Option convinces with a very clear user interface and thus also invites beginners who have never had anything to do with such a platform.

Regulation: IQ Option is regulated by the Cypriot CySEC.

Libertex

Libertex website logo

Libertex is actually doing everything right when it comes to offering a leverage trade. The maximum leverage for private investors is 1:30 - so you are in an industry standard. For the professional there is a leverage of 1: 600. Ideal for those who want to take a high risk in order to be able to make high profits if the market develops as desired.

Libertex also scores with a free demo account. That means, before you invest your savings, there is at least the opportunity to try out the various features completely safely.

The choice of trade values ​​is great. Here you can find stocks, metals, indices as well as digital currencies - and Libertex scores 100 percent in this area. Because there are more than 40 different crypto currencies and also crypto trading pairs.

The fee structure is particularly worth mentioning. In CFD trading, fees are of course charged in order to be able to finance the business - but the broker is very accommodating to its customers: Libertex does not finance itself exclusively through spreads, but also through commissions incurred during trading. These are - depending on the commercial value - at 0,01 percent.

Regulation: Furthermore, there is no need to worry about fraudulent activity - Libertex is regulated by CySEC, the Cypriot financial regulator, due to the fact that it is a Cyprus-based company. 

XTB

XTB website logo

X-Trade-Brokers, also known as XTB, is one of the best-known brokers in Germany. This is mainly due to the branch - the broker is at home in Germany. The highlight of the broker? Social trading is offered.

Even if there are three accounts (Basic, Standard and Pro), the differences are only minor: In both cases there is a maximum leverage of 1: 200, and the same additional services such as training courses are also available. The main difference is more in the details - especially when calculating the spreads. If you use the basic account, trading with fixed spreads is possible - the standard account has variable spreads. The Pro account, on the other hand, offers the option of trading with the original market spreads. It should be noted that here, however, monthly fixed fees are due, which are based on the lot sizes. Up to EUR 199, a maximum of 49,9 lots can be traded at the market spread; If you opt for unlimited trading operations at the market spread, a monthly fee of 1.499 euros is prescribed. XTB has therefore taken great care to create an offer for beginners, experienced and professionals.

Regulation: Regulation is carried out by BaFin - the Federal Financial Supervisory Authority.

What is a crypto exchange?

Crypto exchanges are also often referred to as crypto exchanges. The crypto exchange can be compared to the well-known stock exchange. Ultimately, these are platforms on which buyers and sellers of digital currencies, such as Bitcoin, then trade. However, crypto exchanges are not a physical location - this is what distinguishes a crypto exchange from the Frankfurt or Stuttgart stock exchange.

However, there are differences here too, which should not be ignored or which probably cause confusion if one does not look behind the scenes.

stock market

In an exchange, the focus is usually always on trading different crypto currencies - the principle here is reminiscent of a classic stock exchange. However, some providers today offer the option of buying and selling Bitcoin and Co. with fiat currencies.

Peer to peer exchange

Peer-to-peer exchanges are platforms that make it possible to bring buyers and sellers together who then trade digital currencies. It should be noted that here the website only provides the platform and helps with matchmaking. Both the buyer and the seller are responsible for finding a price for the sale or purchase. The platform charges a fee for providing the option of doing business here directly.

Crypto broker

In this case, the seller or buyer trades with the operator of the platform. Trading here is always at a price set in advance, which of course is based on the current price. Crypto brokers also charge fees - so you should definitely take a look at the conditions in advance.

Decentralized exchange

In this case, as can already be deduced from the name, it is about decentralization. Decentralized exchanges do not store customer funds on the platform, but enable peer-to-peer transactions between users - and do so directly. Thus, the basic idea of ​​the crypto currencies is implemented 100 percent.

How does the trading of cryptocurrencies work via a crypto exchange?

There are of course differences depending on the exchange. However, there are a few points that are identical with every crypto exchange - at the beginning it is a matter of registering once. Registration is usually not a challenge even for beginners. Often you only have to provide a mobile phone number or a valid e-mail address in order to then confirm the registration and use the services of the exchange. However, in some cases it is also necessary to confirm your identity. Depending on the provider, this can be a bit more time-consuming and complicated.

Once you have confirmed your identity, the account will then be topped up. The money available on the account can then be invested in digital currencies. You can use your savings to buy Bitcoin, Ether or another cryptocurrency as you wish, keep the digital coin (s) in your digital wallet and, if the price rises, you can sell it again - the difference between the purchase price and the sale price, minus any fees , represents profit (or loss).

Is it still worth buying crypto currencies

Bitcoin symbol on a coin in a hand

The question of whether it still makes sense to invest in crypto currencies can be answered with a very clear "YES". If you take into account the current prices (as of the end of October 2020) and the all-time highs that were set for almost all crypto currencies at the end of 2017 / beginning of 2018, there is room for improvement almost everywhere. And the forecasts are also extremely promising.

Kryptowährung Current price All time high
Bitcoin $ 13.200 $ 19.665,39
Ether $ 380 $ 1.448,18
Ripple $ 0,23 $ 3,40
Bitcoin Cash $ 260 $ 3.785,82
Binance Coin $ 27 $ 39,68
Litecoin $ 53 $ 360,66
Cardano $ 0,091 $ 1,18
EOS $ 2,57 $ 22,71
Monero $ 120 $ 542,33


Opening an account at a crypto exchange

If you have come to the conclusion that you want to trade or speculate with crypto currencies, it is important to deal with the offers of the different exchanges in order to then find the best crypto exchange for you. Crypto exchange experiences that can be found on the Internet are also helpful. If you are unsure which crypto exchange you should ultimately choose, experience reports can sometimes provide even more clarity so that you can then make a decision.

Selection of the right crypto exchange

User interface, fees, customer service and crypto exchange experience are the main points to consider when looking for a crypto exchange in order to be able to speculate or trade with Bitcoin and Co.

Due to the fact that eToro is convincing in all points and is therefore a top crypto exchange, the registration process at eToro is examined below.

Login and registration

The registration process is simple and quick. Simply go to the broker's website and click on “Open an account”. Now you can enter your personal data directly or register via Google+ or Facebook. Now the registration form has to be checked - it will then be sent directly to the broker.

Create an eToro account

Verification

Verification is a mandatory part of eToro. This is mainly due to the regulatory requirements. Thus, as a user, you can be sure that there are no fraudulent machinations here - the eToro platform remains secure with such requirements and also prevents undesired activities. Account verification includes proof of address (POA) and proof of identity (POI).

For proof of identity, the name, date of birth, a photo as well as the date of issue and a possible expiry date of the ID document must be submitted. As a rule, it is sufficient to present the passport - the driver's license (driver's license) or another identification document issued by an authority can also serve as proof of identity, provided that all of the above-mentioned points are met.

In order to be able to prove the address, the submission of an invoice is required, on which the full name, the address and the date of issue are included. It is important that the invoice was issued no more than six months ago. The following bills are recommended: electricity, water or gas bill, credit card bill, rental agreement or a letter from an authority.

Please note that the verification process can take a few days. Only when the process has been completed will all eToro services be available.

deposit

Deposit money on eToro account

The deposit is straightforward and only takes a few moments. It should be noted that there are different payment methods. That said, there is a good chance that a personally preferred payment method is available. In addition to PayPal, one of the most popular payment methods, if you follow experiences such as test reports on the net, there are also the following options: 

  • Bank Transfer
  • Sofortüberweisung
  • Credit card
  • Rapid transfer
  • Neteller
  • UnionPay 
  • Skrill

Log in, then click on "Deposit money", enter the desired amount, select the currency and then click on the deposit method that you would like to use to fund your eToro account.

Trade and buy cryptocurrencies

eToro markets overview

If the deposited money is visible on the eToro account, you can now buy crypto currencies or trade with Bitcoin and Co. In the menu item you can find the way to the digital coins under "Markets" and "Crypto".

A new view then opens in the right area. Then you can “buy” or “sell” crypto currencies, for example Bitcoin. If you want to buy Bitcoin, click on "Buy" - a pop-up window will now open. The settings can remain unchanged if you want to buy coins - the settings must be changed for CFD trading. If you click on “Open Trade”, the coins are bought - an overview of how much Bitcoin you now have can be found on the “eToro Bitcoin Account”.

If, on the other hand, you want to trade CFDs, buying so-called Bitcoin CFDs works very similarly. In the pop-up window you only have to adjust a few parameters. At the beginning it is about the amount of money to be invested - then it is about setting the leverage multiplier. At the moment there is only X2. There is no higher leverage with cryptocurrencies. It is important that you then make the Take Profit and Stop Loss settings. Because with Stop Loss you can determine in advance how high the maximum loss may be - that is, if you misjudge the market and it goes in the undesired direction, the position will be automatically closed when the specified low is reached. Of course, this also works in the other direction with Take Profit - the position is then closed when the profit limit defined in advance is reached.

What fees and costs apply to the various crypto exchanges?

In addition to the question of which offer is available, costs also play a role that should not be underestimated. Because the fees always gnaw at the profits. It is therefore important to always take the fee structure into account, even with a top crypto exchange, in order not to have to experience any nasty surprises in the end.

Deposit fees

It should be noted that there are hardly any providers who charge so-called deposit fees. However, you still have to be careful - some providers charge fees if you choose a certain deposit method. This means that a bank transfer is free of charge, but payment by credit card incurs fees. In addition to the question of whether there are deposit fees, it must also be clarified whether there is a minimum deposit amount or a maximum deposit amount.

Withdrawal Fees

Some providers require a withdrawal fee, which is based on the amount of the withdrawal - that is, a percentage is used here. Every now and then there are also fixed withdrawal fees; here the amount of the payout does not matter at all. One such provider is eToro. There is a withdrawal fee of 5 US dollars at eToro. Plus500, however, requires 1,9 percent of the payout amount. At Libertex, on the other hand, there are no fees at all if you want to withdraw your money.

Trading fees

There are fees for trading. eToro requires purchase fees of 1,9 percent; the sales fees are also 1,9 percent. Thus, the total fee burden for trading is 3,8 percent. Plus500 charges purchase and sales fees of 3,08 percent - a total of 6,16 percent. Libertex scores with the lowest fee burden: 0,41 percent purchase fees, 0,41 percent sales fees - that results in a total charge of just 0,82 percent.

administrative expenses

There are only very few providers with holding fees. Plus500 demands about 0,05 percent here - eToro and Libertex do without it.

Other fees

The so-called inactivity fee is particularly popular. In other words, if the user no longer has any visible movements, i.e. if he no longer logs in or does not open any positions, an inactivity fee may apply. It is important that you take a look at the provider's possible fees in advance in order not to have to experience any nasty surprises. 

Crypto exchange fees compared

eToro Plus500 IQ Option Libertex XTB
Deposit fee - - -
Withdrawal fee $ 5 1,9% -
Purchase fee 1,9% 3,08% 0,41%
Holding fee - 0,05% -

Possible payment methods at crypto exchanges

There are different payment methods depending on the crypto exchange. Please note that fees may apply. It is therefore essential to take a look at the fee structure and the conditions of the crypto exchange in advance.

Credit card

Topping up the account with a credit card is particularly popular. Especially because it only takes a few moments until the money is available in the account.

SEPA transfer

Completely secure and free of charge. However, you sometimes have to wait two to three working days until the money is available.

PayPal

PayPal may be one of the most popular payment service providers, but it is not accepted by every crypto exchange. However, the top crypto exchange eToro as well as Plus500 accept PayPal.

Other payment methods

There are also other ways to top up your account with Skrill, Neteller or UnionPay such as eWallet.

crypto currencies

Of course, this is also possible with cryptocurrencies. Because with Bitcoin and Co. you can very well top up your account at a crypto exchange - ultimately it is a digital currency and not a pure speculative object.

Conclusion: for us the best crypto exchange - eToro

Bitcoin lies on dollar bills

eToro scores with a variety of digital currencies, a very clear and fair fee model and the fact that it is a regulated provider that is even monitored by several financial supervisory authorities. Anyone who deals with the very extensive range of eToro must ultimately come to the conclusion that absolutely no boredom can arise. Since, in addition to crypto currencies, countless stocks such as foreign exchange are available and you can also copy the strategies and decisions of successful traders with social trading, eToro is ultimately really in a class of its own.

FAQ's

What is a crypto exchange?

A crypto exchange is a crypto exchange. Here you can purchase coins of certain crypto currencies, which are then either stored in the online wallet of the Exchange or on an external wallet (cold or hot wallet).

Which is the best crypto exchange?

eToro. If you take into account the various points that ultimately allow an objective assessment, i.e. the selection of crypto currencies, the available functions, the conditions and the support, eToro can definitely be described as the best crypto exchange.

Are crypto exchanges legitimate?

If the crypto exchange is regulated or monitored by a financial supervisory authority, one must be able to assume that it is a reputable provider.

What is the difference between Exchange and Börse?

There is no difference. The only difference here is the English and German word names - Exchange and Börse.