Whether you want to start trading Bitcoins regularly or looking to make a one-off purchase, there is a chance that you will have to pass through a Bitcoin exchange.
Today, and as a result of the soaring popularity of Bitcoin, cryptocurrency exchanges have cropped up from all parts of the world, each promising better services and better rates than the previous one. But how do you find the best bitcoin exchange?
We’ve reviewed some of the best bitcoin exchanges for 2021 below, comparing their fees, reputation, and usability to help you make a decision.
Top 9 Bitcoin Exchanges
If you want to find out quickly about the top Bitcoin exchanges without reading our full guide, here are the top sites to buy and sell Bitcoin today.
- eToro – Social trading platform with Bitcoin exchange
- CryptoRocket – High leverage Bitcoin trading
- Binance – World-leading Bitcoin exchange site
- Evonax – Best Crypto Exchange for Anonymity
- Coinbase – Renowned and liquid exchange
- Coinmama – Unlimited daily crypto transactions
- Bitfinex – Good Bitcoin exchange for beginners
- Changelly – Hybrid fiat-crypto and crypto-crypto exchange
- Bitpanda – Excellent customer support
On this Page:
Our Recommended Crypto Exchange for 2021
- 15+ Cryptos Available
- Trade Stocks, Forex, Crypto and more
- Only $200 Minimum Deposit
- Accepts Paypal
The Best Bitcoin Exchange Sites 2021
What are the best Bitcoin exchanges in 2021 and who wins the Crypto exchange comparison? This table will provide all the information you need to know about each exchange and the pros and cons of each broker.
What Types of Bitcoin Exchanges Exist?
This refers to a pure fiat-to-bitcoin exchange platform that allows for the conversion of conventional currency into digital currencies and vice versa.
They stand out in the industry for their support of fiat currency deposits in the form of bank wire transfers or debit and credit card deposits.
Some will also accept cheque and cash deposits from online money processing companies like PayPal, Skrill, and Sofort.
These refer to multi-asset trading platforms that allow you to speculate on the price of bitcoin through the digital currency’s CFDs.
When trading bitcoin CFDs, you don’t get to own the coins you buy, rather, you enter into a contractual agreement with a brokerage firm and bet for or against bitcoin’s price action.
Additionally, deposits and withdrawals in and out of the CFD brokerage are in the form of cash, effectively negating the need for a bitcoin wallet. There are also automatic trading tools such as the bitcoin trader software and Bitcoin Revolution, a huge variety of market analysis tools, and some brokers support social/copy trading.
Cryptocurrency-to-cryptocurrency (C2C) exchanges refer to bitcoin investment and trading platforms that will only support exchanges between two digital currencies.
For instance, if you needed to acquire bitcoin on the platform, you will need to be in possession of yet another digital currency like Ripple, Ethereum, or Litecoin.
If you only have fiat currency – USD, EUR, or GBP – you will want to first convert them into one form of a digital coin at a fiat exchange before transferring them here.
Why do you need a Bitcoin Exchange?
- Fast Bitcoin acquisition:
Bitcoin exchanges present you with a centralized bitcoin marketplace that is open 24/7. This makes it one of the most convenient money markets globally and with pretty fast transaction processing speeds.
- Safe transaction processing:
While there have been several cases of hacked bitcoin exchanges and loss of digital assets, a bulk of hacks and scams have been outside the platforms, and on peer to peer platforms.
This means that you are more likely to lose your cash or bitcoin when transacting with an acquaintance you met over such social media platforms as Facebook, Twitter, or Telegram than you are when dealing with an authorized bitcoin exchange.
- Storing your bitcoin assets:
Don’t have a bitcoin wallet, aren’t confident enough about protecting the bitcoins in your possession, or just don’t want to spend $100+ on a hard wallet?
Leading Bitcoin exchanges maintain highly fortified bitcoin vaults where they can help keep your bitcoin assets for free.
- Offers liquidity:
If like most people, you are acquiring Bitcoins for investment purposes, you will need a ready market where you can dispose of them off as quickly as possible.
Bitcoin exchanges bring together millions of traders from all around the world at any given time, effectively guaranteeing near-instant disposal of your coins if need be.
What are the pros and cons of investing through an exchange?
Top 9 Bitcoin Exchanges – Bitcoin exchanges list for 2021
This is a Bitcoin exchange ranking list where we are reviewing the best bitcoin exchanges to use in 2021.
Please note that while there are other exchanges and platforms that allow bitcoin purchases and trading, we consider these are the best based on their advanced trading platforms, the volume of transactions, their security, and reputation.
1. eToro - Best for Social Trading
eToro is one of the most outstanding bitcoin exchanges out there. It has been at the helm for a number of years.
Unlike other bitcoin exchanges, it is regulated by the FCA, CySEC, and FinCEN among tier-one regulatory agencies. Aside from digital currencies, it also supports a wide range of assets.
eToro dates back to pre-crypto times as it was founded in 2007. When the cryptocurrency market emerged and gained mainstream attention, eToro was one of the earliest to support CFD trading.
The cryptocurrency platform further emphasizes on social trading wherein traders can interact and seek advice from each other. Its CopyTrader service also allows its users to copy the trades of the best traders on the platform.
Following the launch of the eToro wallet, users have been allowed to purchase actual Bitcoin as well as other popular digital currencies, store them, and trade conveniently within the eToro cryptosystem.
- Has social trading functionality
- Regulated by financial institutions
- Offers ‘virtual training’ account to new users
- High spread fees
2. CryptoRocket – Best for Active Trading
CryptoRocket started as a fully cryptocurrency dedicated platform, specifically offering bitcoin trading via CFDs.
The success of the company has been so big that in just a couple of years they become a world-known force in the CFD market, offering access to a broad range of asset classes and markets globally.
The firm has not only diversified in other markets, but it has also expanded the list of cryptocurrencies offered here.
This has allowed traders and investors to benefit from CFD trading rather than having to deal with a traditional exchange. An important aspect to mention is that CFDs are derivatives that simply follow the price of the underlying asset.
- High Leverage – 1:500
- No transaction and deposit fees
- MT4 and WebTrader available
- Limited deposit methods
3. Binance – Best for voluminous Bitcoin transactions
Binance is a pure crypto-to-crypto exchange. It launched in China but has since moved its bases to Japan and Malta.
It may be one of the most recent entrants into the trade but has steadily grown into one of the most popular exchanges, processing some of the largest bitcoin transaction volumes on a daily basis.
Their service is available in over 130 countries excluding the United States. Plus it also features its native cryptocurrency, BNB that you can trade from free on the platform.
Some of the most interesting features about Binance include the fact that it comes available in two trading versions; the beginner and the advanced version.
The Bitcoin exchange prices vary depending on what you are trading. Here, Bitcoin trading charges range from 0.05% to 0.1% depending on the crypto pair. Deposits are free, but withdrawals attract a 0.0005 BTC charge.
- Boasts of some of the lowest transaction fees
- Features a beginner-friendly mode of trade
- It is available in both the web and mobile trader versions
- Doesn’t support fiat exchanges
- 0.0005 BTC withdrawal charge is quite high
4. Evonax - Best for Anonymity
Evonax is your trusted cryptocurrency exchange.
Established in 2015, Evonax brings lots of experience into building the best instant platform for you to exchange the most popular cryptocurrencies on the market. Evonax offers one of the most intuitive interfaces with high security and no KYC process. Evonax believes anonymity is every person's right and they value their customers' privacy.
We recommend Evonax not just for Bitcoin and Ethereum trading, but especially privacy coins such as Monero, Z-Cash and Dash. Evonax is a non-custodial instant cryptocurrency exchange, which means that no user’s funds are placed in the service.
Evonax is a platform that acts as an intermediary between cryptocurrencies and users. Their mission is to offer their users anonymity, easy and secure transactions and make the exchange process effortless for everyone who wants to trade cryptocurrencies.
Evonax also offers superior customer service and rank “excellent” on TrustPilot, giving you the safety and guarantee that you are in safe hands when trading on the platform.
- Available in all countries
- No KYC or Sign-Up required
- No minimum or maximum limits
- Doesn't offer crypto storage
5. Coinbase – Best for reputation and reliability
Established in 2012, Coinbase comes off as one of the most reputable Bitcoin exchanges in the world.
The fiat-to-crypto exchange has been particularly instrumental in setting the pace for the rest of the industry when it comes to the adherence to security and the introduction of such new features as the mobile trading platform.
The most recent on its list of innovative trading features is the introduction of insurance services where the bitcoin exchange, with the backing of financial insurance companies, promises to fully or partially compensate their traders in the event of a system hack.
Coinbase also offers one of the best bitcoin wallets out there, that is freely accessible for their clients.
It also supports a wide range of payment processing companies and wire transfers and maintains an equally expansive base of fiat currencies like USD, EUR, and GBP.
Plus they also boast of some of the fastest bitcoin transaction processing speeds. When trading here, however, you will have to part with 1.49% and 3.99% processing fee for bitcoin purchases made via bank or debit/credit card respectively.
- Offers instant purchase options for up to six popular coins
- Reports large transaction volumes daily and thus highly liquid
- Offers a free and reliable online wallet for clients
- Not beginner-friendly
- Wire transfers for deposits and withdrawals may be quite sluggish
6. Coinmama – Best for unlimited daily cryptocurrency transactions
Coinmama, yet another fiat-to-crypto exchange, ranks highly on our list of best bitcoin trading platforms because of its extensive global reach and beginner friendliness.
The exchange has one of the most intuitive user interfaces that make bitcoin purchases as straightforward as possible. It is also available in 188 countries across the world and supports deposits in virtually all the popular currencies of the world.
Like for all of the other platforms we recommend, Coinmama is a valid exchange for cryptocurrency trading in general, not just for bitcoin trading considering that it offers all of the most popular digital coins on the market, including Ripple.
Other interesting features about Coinmama include the fact that it offers instant purchases on Bitcoin and popular crypto.
And that while every other exchange is disallowing credit card purchases, Coinmama still maintains it as a bitcoin payment option.
You will, however, have to be ready to pay up to 5.9% in bitcoin exchange rates, and an extra 5% on all credit/debit card transactions. Plus it doesn’t maintain a daily cash or bitcoin transaction limit for fully verified investors.
- Available in most countries around the world
- Built on a solid reputation of trust and reliability
- Exponential daily transaction limits
- One may consider their transaction fees relatively high
- Doesn’t offer bitcoin storage services
- You can’t convert your bitcoin assets back to crypto here
7. Bitfinex – Best cryptocurrency exchange for beginners
Bitfinex bitcoin trading platform is specially designed for beginners and regular traders.
It has the least cluttered user interface for its web trading platform as well as clear guidelines on how to deposit cash, purchase, and sell bitcoins.
The simplistic user interface is then replicated in their mobile app and dedicated to persons who want to keep trading or monitoring the markets while on the go.
The fiat to crypto exchange supports cash deposits for such popular currencies as USD, EUR, and GBP. Bitcoin purchase transaction charges start from 0.1% to 0.8% depending on transaction volume and mode of payment while trading fees stand at 1% for makers and 2% for takers.
Pro traders also have access to such advanced trading tool as limit orders, stop orders, and trailing stops. You should, however, note that the Hong Kong-based company does not allow signups by United States residents.
- Exposes trader to advanced trading tools
- Specially designed user interfaces to suit both beginner and pro traders
- Fairly affordable transaction processing fees
- Security concerns due to a history of hacking
- Complicated signup and account verification process – takes up to 20 days
8. Changelly.com – best for fast transaction processing
Changelly.com is one of the few reputable hybrid bitcoin exchanges that support both fiat-to-crypto and crypto-to-crypto exchanges.
But this isn’t the only reason it features on our list of best bitcoin exchanges.
It lists here primarily due to their easy to use exchange platform as well as having maintained some of the fastest transaction speeds. You also don’t need to go through the lengthy, complex, and often frustrating verification processes to trade here. You only need an email and a Bitcoin wallet to start trading.
Their advanced systems will conduct both transactions at the same time – accept deposits and transfer purchases simultaneously. Crypto to Bitcoin conversions are charged at 0.50%.
- Offers fastest exchange crypto to crypto exchange transfers
- Provides for anonymous and highly discrete crypto conversions
- Relatively low exchange fees
- Limited security measures in place to secure your transactions
9. Bitpanda – Best for dedicated support
Nicknamed “The Coinbase of Europe” Bitpanda is arguably one of the most popular bitcoin exchange platforms in the region, despite its Australian roots.
This can be explained by its simplistic and user-friendly user interface with the backing of a dedicated customer support team available on the phone and online 24/7. It also is highly convenient as it supports both fiat-to-crypto and crypto-to-crypto exchanges on the platform.
Fiat deposits in the form of leading global currencies like USD, EUR, and GBP can be made through numerous payment processing methods like bank wire transfer, Visa and MasterCard, SoFort, and skrill. Credit card purchases are charged a 2.99% processing fee.
You will, however, note that the exchange doesn’t maintain elaborate fees structure, though most transactions here have an average 2% fee. Importantly, new clients are given a highly secure and free online wallet where they can store their bitcoin private keys.
- Beginner-friendly with a highly intuitive user interface
- Accepts deposits from the widest range of payment processing companies
- Supports fiat-crypto conversions
- Opaque pricing models– doesn’t disclose transaction fees
Top 5 PayPal Bitcoin Exchanges
One of the easiest ways to buy Bitcoin online is via PayPal. But which exchanges allow you to buy Bitcoin with PayPal? Take a look at the 5 best PayPal exchanges you can use:
Established in 2012, this is one of the oldest crypto exchanges and you can buy cryptocurrencies with Paypal on their platform with ease.
It offers a simple account creation process and only requires an email address. However, fees are relatively high, with a 20% premium above Bitcoin exchange rates and an additional 1% fee charged by the site.
Paxful is a peer-to-peer bitcoin exchange platform that launched in 2015 and has been offering offering zero-fee services to its global client base. Users can buy coins with Paypal without registering on the site, however, seller control their own rates, which can be relatively high in addition to the site’s 1% fee and bitcoin blockchain fees.
There is also a risk of falling prey to scammers since the site is peer-to-peer.
VirWox is a crypto exchange which does not require user verification making it ideal for anonymous users. It does not charge any fees for using My Virtual Community PayPal Terminal.
But bear in mind that you cannot buy using PayPal directly. Rather, you first have to convert your PayPal funds to Linden Dollars and then use them to buy Bitcoins.
The conversion process from fiat to SLL to BTC increases the cost of buying Bitcoin. Funds are made available after two hours when using My Virtual Community PayPal Terminal.
There also are limits imposed for using PayPal to buy BTC based on the number of active days from registration time
Formerly known as E-Coin, Wirex is a hybrid platform offering a simple and user-friendly site and charges competitive fees for PayPal-bitcoin exchanges.
Its services are, however, not available to US citizens and residents .
eToro is a reliable bitcoin exchange offering smooth Paypal transactions in a highly secure and aptly regulated crypto-trading platform.
It is also highly regulated and boasts a robust security framework. Note that there is a $5 monthly fee for inactive accounts (12 months).
Disclaimer: Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk. eToro offers only Crypto (real crypto no CFD) so only buy with no leverage, later on this year eToro will also offer real stocks for trading. 75% of investors lose money when trading CFDs..
Top 5 Credit Card Bitcoin Exchanges
There are lots of exchanges that support Bitcoin purchases using credit card payments. Let us take a look at five of the top options in the market.
Founded in 2014, BitPanda is among the top names in the crypto market. It specializes in Bitcoin exchange throughout the Eurozone region and supports multiple payment options including SEPA transfer and credit cards.
Changelly is a unique exchange in that it provides one of the easiest ways to switch between cryptocurrencies. It processes bitcoin purchases via a credit card and charges a flat fee of 0.5%.
It integrates with Simplex for credit card purchases and offers the service lists 140+ cryptocurrencies
Luno, a bitcoin exchange headquartered in London, accepts a wide range of fiat currencies and numerous payment methods including debit and credit cards. It has an unclear fee structure and charges a premium for instant purchases.
24Option is a full-feature exchange platform that operates out of Cyprus and Belize. It supports plenty of assets, including cryptocurrencies and offers numerous deposit options including credit cards.
Based in London and with 30+ years of experience in the money markets, City Index is a global powerhouse. It supports numerous payment options including credit cards and multiple trading platforms.
Top 5 Bitcoin Exchanges in the USA
For traders in the US, which cryptocurrency exchanges can you use to buy, sell or trade Bitcoin? Take a look at the top 5:
Coinbase is one of the most popular platforms for buying Bitcoin in the US. Coinbase is a broker dealer (crypto traders make purchases directly from the site and not from other users)
It offers multiple payment options, high buying limits, and high liquidity. If you need Bitcoin urgently, you can use Instant Buy, which supports credit card purchases.
Binance, currently the world’s largest crypto exchange by trading volume, offers a wide array of coins for users in the US and beyond.
It supports withdrawals of up to 2 BTC without verification and has high liquidity thanks to its high trading volume.
However, the exchange is expected to stop offering crypto exchange services to the US market starting in September 2021. However, non-verified users can still access services using a VPN
Coinmama is a reliable and popular exchange that allows you to invest in Bitcoin in the US. It offers one of the highest limits for Bitcoin purchases using credit card.
One of the oldest crypto exchanges, CEX.io is also available to US traders. It offers a wide range of user accounts with varying transaction limits and other features and reliable customer support.
However it has an extensive verification process and is registered in only 24 US states. It also has relatively high fees
New York-based Bitcoin exchange, Gemini has been operational since 2015 and is available to US traders in 45 states. It is fully regulated and compliant and thus offers high security and efficiency.
It also boasts of a strong customer support and relatively low trading fees.
Top 5 Bitcoin Exchanges in the UK
For residents of the UK, there are many exchanges on which you can buy and sell Bitcoin. Let us consider the top 5.
A subsidiary of Binance, a world-leading crypto exchange, Binance Jersey is a regulated crypto platform available for UK customers.
It was launched in January 2020 and operates under the Jersey Financial Services Commission. It supports trading of Bitcoin with EUR and GBP.
On this peer-to-peer marketplace, UK Bitcoin users can make purchases and sell online. It is an easy to use platform and it is possible to buy crypto using local UK bank transfer.
Users can access a limited amount of Bitcoin without identity verification. However, there are premium rates, at times going as high as 10% above market rates.
Coinfloor claims to be the “UK’s no. 1 Bitcoin exchange.” It has been around since 2012 and has its headquarters in London.
It has a mobile trading app offering convenience and offers cold storage services for its clients. It also maintains a high minimum deposit and charges deposit and withdrawal fees.
Bitcoin users in the UK can use a variety of payment methods to buy BTC instantly through Bittylicious, a peer-to-peer network which matches Bitcoin buyers and sellers.
It has one of the simplest user interfaces, designed to resemble an order form and it does not require identity verification as it is not regulated.
However, it only supports credit card payments and SEPA transfers and there is no trading platform. There is also a lack of clarity on pricing as it charges fee directly from the day’s exchange rate
As one of the largest Bitcoin marketplaces in Europe, Bitcoin.de, has a lot to offer. It is available to UK customers and counts with over 800,000 users providing high liquidity. It is a safe platform with regular audits and the sign up process is simple. On the other hand, it only supports SEPA payments and has relatively high fees.
Top 5 Bitcoin Exchanges in Canada
To help you buy or sell Bitcoin in Canada, we have collected some of the top exchanges in the country. Take a look at 5 of our top picks.
Bitbuy, one of the most popular Canadian crypto exchanges, has been around since 2013. It rebranded from InstaBT to BitBuy in 2016 and seeks to deliver value.
It has a sleek interface and a lot of resources for beginners as well as robust features for advanced users. Its lightning-fast turnaround times and minimal crypto hold times are also a big plus.
However, it does not have advanced trading features and it does not support margin trading
Originally based in San Francisco, California, Kraken serves the Canadian market out of an office in Halifax. Users can fund their accounts in Canadian dollars and it offers margin trading.
It is particularly good for volume traders who can enjoy good discounts. However it has limited options for account funding and few trading pairs.
It has a great reputation and a fantastic platform for professional traders. It also supports a variety of funding options including credit card and wire transfer and is easy to use.
Coinfield, however, does not offer margin trading and has pretty low liquidity. Withdrawal fees are also quite high on this bitcoin exchange.
Based in Canada, this crypto exchange supports multiple funding and withdrawal options and has a strong security using a framework similar to the New York Stock Exchange as well as competitive fees
Founded in 2016, Quebex is a Canadian peer-to-peer crypto exchange platform where you can buy and sell Bitcoins.
It is easy to use, offers a straightforward and transparent fee structure, and supports a variety of local payment options including PayPal.
It is registered with two major Canadian regulators and thus reliable but does not offer leveraged trading.
Bitcoin Exchanges Fees and Prices
Here is a comparison of the crypto transaction fees charged by the most popular exchanges.
Risks Associated with Bitcoin Exchanges
- Cyber threats and security:
A recent survey by Encrybit shows that as much as 40% of bitcoin investors believe security is the biggest challenge to the industry.
And they are right because in the past three years, 6 of the top 20 bitcoin exchanges have been hacked and digital assets worth hundreds of millions of dollars stolen.
Some of the victims of these hacks include Bitfinex, Huobi, BitStamp, and Bithumb.
- Government interference:
In 2017, the Chinese government made the boldest move in the history of cryptocurrency exchange age yet by banishing all bitcoin exchanges out of the country.
Elsewhere, governments have been sneaking in pieces of legislation albeit slowly but aimed at eventually regulating and ultimately controlling the industry.
This started with restrictions on how much exchanges can buy and sell to an individual customer as well as demanding that crypto exchanges acquire operating licenses from financial regulatory agencies.
- Sluggish systems:
Bitcoin exchanges have had the hardest time scaling their operations and mixing their efficiency. This largely is due to the fact that the bitcoin blockchain is hardcoded to process no more than 7 transactions per second.
Therefore, as more people get into the trade and launch countless transactions consistently and simultaneously, the blockchain network queues them resulting in a painfully slow transaction processing.
Second to insecurity and cyber threats on the lists of factors that force most people out of bitcoin exchanges and crypto industry is the currency’s volatility.
A case in point is bitcoin’s price performance between November 2017 and February 2018 when it went from $6,000 and shot to $20,000 in mid-December before skidding back to around $8,000 in early Feb 18.
How To Find the Best Cryptocurrency Exchange
i) Fiat-to-crypto or crypto-to-crypto
In your quest for a reliable and trustworthy bitcoin exchange, you first need to evaluate your needs and determine whether you are better off with pure crypto-to-crypto or fiat-to-crypto exchange.
ii) Verify their security guarantee
What emphasis has your preferred bitcoin exchange placed in protecting their systems and your private data? We advise that you only give consideration to companies with a verifiable security perimeter.
This includes the use of multiple layers of security and authentication like the use of two-factor authentication as well as the adoption of know-your-customer (KYC) procedures during registration.
iii) Ensure it is regulated
Having a license and serving under the close guard of a reputable governmental regulatory authority can be taken to mean that the agency vouches for the exchange and its administrators at the time of issuing the licensing.
Close monitoring, on the other hand, ensures that it stays on course with its objectives and any deviation and irregularities will be eventually detected and addressed.
iv) Vet their customer support
Go through the different reviews about the bitcoin site and confirm their customer service. Take into account such factors as the call wait time, 24/7 availability, and timely address of customer concerns.
v) Confirm affordability
The absence of a central regulatory means that bitcoin exchanges have to express their discretion in setting the transaction charges. Always go for the most affordable as long their low fees isn’t a cover-up of their compromised security and poor service.
Criteria we Used to Rank these Bitcoin Exchanges
- Speed and safety of transactions
- Customer support
- Supported countries
- Years in operation and reputation
- Fees, charges and limits to purchase and withdrawals
- Privacy and data security, especially cold wallet vaults
- Ease of use and availability of mobile apps
- Regulation and insurance
- Best bitcoin exchanges
There is a countless number of bitcoin exchanges currently popularizing their services in the different parts of the world, each with its fair share of unique features, pros and cons.
The above list highlights the different exchanges that we believe offers the right balance between affordability, security, and convenience.
Figure out what you value most and come back to list to find an exchange that best addresses your needs. The cryptocurrency market is so broad that you can find hundreds of bitcoin sites offering information and analysis for beginner and professional investors. If you take your time reviewing a few, it is very likely that you will find one that meets your expectations.
Our Recommended Crypto Exchange for 2021
- 15+ Cryptos Available
- Trade Stocks, Forex, Crypto and more
- Only $200 Minimum Deposit
- Accepts Paypal
Glossary of Investment Terms
A bond is a loan made to an organization or government with the guarantee that the borrower will pay back the loan plus interest upon the maturity of the loan term. It can be advanced to the national government, corporate institutions, and city administration. It is an investment class with a fixed income and a predetermined loan term.
A mutual fund is a professionally managed investment vehicle that pools together funds from numerous investors and invests it in such securities as stocks, bonds, and other money market instruments. They are headed by portfolio managers who determine where to invest these funds. They are highly regulated and invest in relatively low-risk money markets and in turn post lower rates than other aggressive managed funds.
Peer-to-peer lending (p2p lending) is a form of direct-lending that involves one advancing cash to individuals and institutions online. A P2P lending platform, on the other hand, is an online platform connecting individual lenders to borrowers.
Bitcoin is the legacy cryptocurrency developed on the Bitcoin Blockchain technology. It is a new form of money primarily developed to solve some of the inherent challenges associated with fiat currencies like inflation and over-production. It is virtual (online) cash that you can use to pay for products and services from bitcoin-friendly stores.
An index fund refers to the coming together of individuals to pool in funds that are then invested in the stock and money markets by professional money managers. The only difference between an index fund and a mutual fund is that the index fund follows a specific set of rules that track specific investments and index stocks.
An Exchange-traded fund refers to an investment vehicle that is publicly traded in the stock exchange markets – much like shares and stocks. The fund is expert-managed and its portfolio comprises of such investment products as stocks, bonds, commodities, and more money market instruments like currencies.
Retirement refers to the time you spend away from active employment and can be voluntary or occasioned by old age. In the United States, the retirement age is between 62 and 67 years.
Penny Stocks refer to the common shares of relatively small public companies that sell at considerably low prices. They are also known as nano/micro-cap stocks and primarily include any public traded share valued at below $5.
Real Estate can be said to be the land and buildings on a given property as well as other rights associated with the use of the property like the air rights and underground rights. Real estate can be either commercial if the land, property, and buildings are used for business purposes or residential if they are used to non-business purposes – like building a family home.
REITs are companies that use pooled funds from members to invest in income-generating real estate projects. While a REIT may specialize in one real estate niche, most diversify and invest in as many high-income real estate projects as possible. They are especially interested in commercial real estate projects like warehouses, prime office buildings, residential apartments, hotels, timber yards, and shopping malls.
Asset simply refers to any resource of value or a resource that can be owned and controlled to produce positive value by an individual or business.
A broker is an intermediary to a gainful transaction. It is the individual or business that links sellers and buyers and charges them a fee or earns a commission for the service.
Capital gains refer to the positive change in the price of a capital asset like shares and stock, bonds or a real estate project. It is the difference between the current selling price of the asset and its lower original buying price and it is considered a taxable income.
A hedge fund is an investment vehicle that pools together funds from high net worth individuals and businesses before having professional money managers invest it in highly diversified markets. The difference between mutual and hedge funds is that the later adopts highly complicated portfolios comprised of more high-risk high-return investments both locally and internationally.
An index simply means the measure of change arrived at from monitoring a group of data points. These can be company performance, employment, profitability, or productivity. Observing a stock index, therefore, involves measuring the change in these points of a select group of stocks in a bid to estimate their economic health.
A recession in business refers to business contraction or a sharp decline in economic performance. It is a part of the business cycle and is normally associated with a widespread drop in spending.
Taxable Account refers to any investment account that invests in shares and stocks, bonds and other money market securities. The account is offered by a brokerage company and you are obliged to report and pay taxes on the investment income each year.
A tax-advantaged account refers to savings of investment accounts that enjoy such benefits as a tax exemption or deferred tax payment. Roth IRA and Roth 401K are examples of tax-exempt accounts whose contributions are drawn from after-tax incomes with the yields generated from investing funds therein being tax-exempt. Traditional IRA, 401K plan and college savings, on the other hand, represent tax-deferred accounts. Their contributions are deductible from your current taxable incomes but you get to pay taxes on their accrued incomes.
Yield simply refers to the returns earned on the investment of a particular capital asset. It is the gain an asset owner gets from the utilization of an asset.
A custodial account is any type of account that is held and administered by a responsible person on behalf of another (beneficiary). It may be a bank account, trust fund, brokerage account, savings account held by a parent/guardian/trustee on behalf of a minor with the obligation to pass it to them once they become of age.
An Asset Management Company (AMC) refers to a firm or company that invests and manages funds pooled together by its members. Like mutual or hedge funds, the AMC creates diversified investment portfolios that comprise of shares and stocks, bonds, real estate projects, and other low and high-risk investments.
A registered investment advisor is an investment professional (an individual or firm) that advises high-net-worth (accredited) investors on possible investment opportunities and possibly manages their portfolio.
The fed rate in the United States refers to the interest rate at which banking institutions (commercial banks and credit unions) lend - from their reserve - to other banking institutions. The Federal Reserve Bank sets the rate.
A fixed-income fund refers to any form of investment that earns you fixed returns. Government and corporate bonds are prime examples of fixed income earners.
A fund may refer to the money or assets you have saved in a bank account or invested in a particular project. It may also refer to the collective basket of resources pooled from different clients that are then invested in highly diversified income-generating projects.
Value investing is the art of using fundamental analysis to identify undervalued shares and stocks in the market. It involves buying these shares at the current discounted prices and hoping that a market correction pushes them up to their intrinsic value effectively resulting in massive gains.
Impact investing simply refers to any form of investment made with the aim of realizing financial returns while positively impacting the society, environment or any other aspect of life in the process. Investment in solar projects and green energy, for instance, posts profits and helps conserve the environment.
An investment App is an online-based investment platform accessible through a smartphone application. It lets you save and invest your funds in a preset portfolio that primarily consists of shares and stocks, bonds, ETFs, and currencies based on your risk tolerance.
Real Estate crowdfunding is a platform that mobilizes average investors – mainly through social media and the internet – encourages them to pool funds, and invests them in highly lucrative real estate projects. It can be said to be an online platform that brings together average investors and lets them enjoy real estate projects previously preserved for high net worth and institutional investors.
How can I deposit funds into a bitcoin exchange?
If your deposits into a bitcoin exchange are the form of cryptocurrencies, the exchange will provide you with a wallet address where you can send the cryptos.
Similarly, if you're depositing cash through a bank wire transfer or PayPal, the exchange will provide you the account into which you can wire the cash or PayPal email address.
Can I withdraw cash or bitcoin assets from a bitcoin exchange?
Withdrawing cash from a bitcoin exchange is only possible if you are dealing with a fiat to crypto exchange and it is fairly straightforward. You only have to input the transfer method – either a bank account or PayPal address and initiate the withdrawal process. If you wish to withdraw bitcoin assets purchased here, you only have to input the wallet address where you wish to have your coins sent.
How long does it take to buy bitcoins from a bitcoin exchange?
The bitcoin blockchain network can only process 7 transactions per second. This means that how fast a bitcoin transaction sails through is highly dependent on the network congestion at the time. The average wait time for April 2020 for most exchanges, however, stood slightly above 10 minutes.
Are all bitcoin exchanges the same?
No, they all have different approaches to maintaining security and convenience in bitcoin transactions processing. They are coded differently and are also hosted on different blockchains.
What do I need to create a trading account with a bitcoin exchange?
Bitcoin exchanges are charged with the mandate of cleansing their platforms and taking measures that stop them from serving as conduits of international financial crimes. The first step to achieving this comes by way of implementing the Know Your Customer (KYC) protocol that requires you to present the exchange with your full names, photos of you, and another capturing your government-issued identification document.
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