This article about bitcoin exchanges has been updated many times since the first publication date (31.08.2020). The author has followed all developments since then. It can be regarded as a classic guide with a categorization of different service providers that enables our readers to find a suitable bitcoin exchange.
Summary in a nutshell: we recommend that our readers keep it simple and compare the following Dutch services: Bitvavo (safe and insured trading exchange), BTCDirect (classic broker), Blox (broker), Hodl Hodl (decentralized trading exchange). Additionally, we advise our readers not to actively trade bitcoins on a daily basis. Due to the volatility risks, daily trading is only suitable for experienced traders. For more information: why and how can I best buy bitcoin? An introduction to the world of bitcoin exchanges!
What is a Bitcoin exchange then? A Bitcoin exchange is an online exchange with usually a trading environment with beautiful charts and a professional order book where users trade bitcoins with each other. It works as a trading exchange and marketplace for bitcoins and is more simply referred to in Dutch as a bitcoin exchange. Hence, pay attention, because most providers of bitcoins in the Netherlands operate as a broker or exchange office with or without a wallet and trading environment for the customer. The customers don't trade with each other here. The brokerage company deals directly with the customer here and buys the bitcoins as cheaply as possible on the large international bitcoin exchanges. Furthermore, the services can be set up centrally or decentrally. Let's illustrate this with good Dutch examples:
bitcoin exchange bitvavo
Example 1. A good example of a real exchange is the Bitvavo stock exchange in Amsterdam. The company operates as a bitcoin exchange as the trading platform has its own order book that matches and settles the buy and sell orders of its users. Bitvavo is suitable for novice and also experienced traders. It works like an exchange and features various trading tools (such as a trading bot API, professional charts, automatic settings etc.) designed for the more demanding trader. Due to this setup, a Bitcoin exchange, such as Bitvavo, is usually much cheaper than a Bitcoin broker. Furthermore, the infrastructure meets the highest requirements that a real trade fair must meet. Bitvavo has therefore been able to take out theft insurance, for example in the event of a hack. It is usually very difficult for a Bitcoin exchange to obtain theft insurance. Bitvavo has done this. Finally, professional exchanges offer staking options. You then have the option to receive an automatic interest payment on your bitcoins from Bitvavo in this case. For more information: Mix-top Bitvavo.
BTCdirect bitcoin exchange
Example 2. BTCDirect is an excellent broker portal without Bitcoin wallet support. Here you can easily buy bitoins with iDEAL that you immediately send securely to your own Bitcoin wallet. The service does not have a trading environment and is ideal for easy buying, storing and managing the purchased bitcoins yourself. BTCDirect we aim to be the best broker in the Netherlands and can best be combined with a Trezor Bitcoin hardware wallet. This is an ideal method to purchase and store bitcoin. For more information: BTCDirect Review.
blox bitcoin exchange
Example 3. The Blox app was developed by the team behind BTCDirect and also operates as a broker. The app has an easy trading environment to easily trade bitcoins for euros from the smartphone with iDEAL. The Blox app is a closed custodial wallet that is directly linked to your bank account. The bitcoins are stored and managed by Blox. In practice, it means that it is not a bitcoin wallet and you cannot withdraw, receive and spend bitcoins with the Blox app. The app is ideal for someone who wants to get started without technical knowledge and does not want to worry about the safe storage of the bitcoins. For more information: Blox Review. Example 4. All these above mentioned Dutch different services require identity verification. Indeed, almost all bitcoin companies in the world, regardless of whether it is a broker or bitcoin exchange, will ask you to verify the trading account. If you want to buy bitcoins anonymously in complete privacy, it is best to use a decentralized non-custodial Bitcoin exchange with an innovative decentralized order book as developed by Hodl Hodl. Hodl Hodl has also built its decentralized exchange into the BlueWallet that works as a non-custodial bitcoin wallet and p2p bitcoin exchange trading app!
It is also important to note that due to the increased popularity of many new cryptocurrencies, tokens and related blockchain projects (such as Litecoin, EOS, Ripple, Cardano, ChainLink and Ethereum) there is almost no pure bitcoin exchange left. Nowadays, a bitcoin exchange is usually also a cryptocurrency exchange. This means that you can trade many different cypto coins and tokens for euros, dollars, bitcoin or stablecoins for which separate order books have been set up. Here it is important to pay attention to the liquidity, depth and volume of an order book of the exchange used. There are unregulated exchanges that mess with volumes and basically don't have things in order. Trading in other crypto coins is very risky.
best bitcoin exchange
In the Netherlands, this is well arranged at the Bitvavo trade fair (exchange) and the brokerage services of BTCDirect and Blox. These companies are supervised by De Nederlandsche Bank and operate according to the law with a good anti-money laundering policy. As a customer, you can always be sure that everything is in order and that you cannot get into problems as a customer. Bitvavo is set up as a real exchange (trade fair) so you can buy cheap bitcoin here! Bitvavo charges a maximum of 0.25% in trading costs and is therefore in the top 10 list of the best and cheapest Bitcoin exchanges. In general, better and more professional Bitcoin exchanges are being developed to facilitate crypto currency trading and serve both the private and institutional investors using a professionally constructed order book. These have already opened their doors in the course of 2019 and 2020. Here we will discuss, categorize and list the major bitcoin exchanges by location (Netherlands, Europe, Singapore, Japan, Hong Kong, Korea etc.). This page is a reference page on Bitcoin and cryptocurrency exchanges in general. The list will be regularly updated. Nevertheless, the most important question is the following:
reliable bitcoin exchange
Short answer: Research by various research authorities has shown that the following exchanges score very high in terms of security and reliability: Bitvavo - Amsterdam, Binance - Europe, Binance Global, Kraken, Coinbase, Gemini and Bitfinex. We can recommend our readers to compare these foreign bitcoin exchanges with the safest and best Bitcoin exchange in the Netherlands: Bitvavo in Amsterdam. If you don't want to worry about these issues, you can also just go to the BTCDirect broker portal. This is the best Dutch broker that sells the bitcoins directly to you and sends it directly to your own bitcoin wallet. What is this concise answer based on? The answer has been viewed from the following angles: Trading volumes. Most Bitcoin exchanges operate in a gray field and have free rein. In concrete terms, this means that a Bitcoin exchange can tamper with an order book to artificially inflate trading volume to appear more important than it actually is. A Bitcoin exchange can therefore specify a fake volume to score higher on Coinlib, CoinGecko, Messari or Coinmarketcap, among other things, in order to attract more traders. Various studies show that Bitcoin exchange fake volumes are still common in the last two years. After all, competition has increased. The research company CoinMetrics released a new research and framework on this in July 2020. It becomes the Trusted Volume Framework and the conclusion is that only 14 internationally established exchanges are not messing with the order books. The following exchanges especially excel here: Binance - Europe, Binance Global, Kraken, Bitfinex, Bitstamp, Gemini, itBit and Coinbase. This list is almost entirely consistent with Messari's Real 10 exchange Index from March 2019 and the Bitwise research in 2019. We recommend our readers to compare Binance, Kraken and Bitfinex with the Dutch Bitvavo exchange in particular.
safest bitcoin exchange
he exchange infrastructure and security measures. The best Bitcoin and crypto exchanges must be founded by reliable companies with an excellent IT architecture with a focus on security. Terms to pay attention to: cold storage methods, two factor authentication (2FA), multi-signature security (MultiSig), possible (theft) insurance, security layers, transparency, AES encryption, SSL certificates, segregated accounts and independent security audits . It is also important that there is protection against phishing, MITM, POODLE, Heartbleed and clickjacking attacks. The best Bitcoin exchanges have these security aspects as their top priority on their agenda and could eventually support special protocols such as the Arwen trading protocol. Fortunately, there are research companies that map this out nicely. For example, there is the CER with the CER certifications for exchanges. What is striking is that those bitcoin exchanges that do not mess with the order books, or that they do so, also score the best on security. Indeed, Binance - Europe, Binance Global, Kraken and Bitfinex score very high on security. We can recommend our readers to compare these foreign Bitcoin exchanges with the safest and best Bitcoin exchange in the Netherlands that also meets these high requirements and has therefore been able to take out theft insurance: Bitvavo in Amsterdam.
What is the procedure for opening an account with a Bitcoin exchange?
At almost all Bitcoin exchanges you will first need to open an account using your email address and your name. Your identity will also have to be checked by uploading a copy of the passport. This must be done by all bitcoin exchanges to, among other things, prevent money laundering. A professional Bitcoin exchange has a clear Anti-Money Laundering (AMLD5) and Know Your Customer (KYC) policy. Once the trading account is set up, verified and cashed in, it will be easy to buy bitcoins. However, this does depend on the particular service provider and the type of exchange where you opened the account… let's take a closer look. What different types of Bitcoin exchange services are actually available? For the sake of clarity, we will further categorize the different types of service providers and respective solutions.
Bitcoin exchange with wallet support and own order book. The best example of a complete Dutch bitcoin exchange is Bitvavo (Amsterdam). These trading environments often include additional trading tools and capabilities for managing a trading strategy. They also usually hold many different cryptocurrencies in order to better enable traders to speculate on the rapid price changes. These are usually the real crypto trading exchanges with a centrally controlled p2p trading platform. Look and compare. Good examples are the Bitvavo Exchange (Amsterdam), AMDAX (Amsterdam), Bitpanda Exchange (Vienna), Binance global crypto only exchange (Malta), Binance (EUR / BTC) Exchange (Jersey), Kraken (San Francisco) etc. Bitcoin brokers and exchange offices with or without wallet support. A broker sells bitcoins directly to the customer. The purchased bitcoins are immediately sent to the Bitcoin wallet on the computer, tablet or smartphone. The best example of a reliable brokerage service without wallet support in the Netherlands is BTCDirect. It is the most recommended method to buy bitcoins securely and store them in-house as a long-term investment. A classic Dutch broker and exchange office with wallet support is LiteBIT. Bitcoin derivatives exchanges. Other exchanges are more focused on leveraged Bitcoin derivatives and are designed for the hard core day traders. Concrete examples are Bitmex (Seychelles) and Deribit (Amsterdam - Panama). Binance has now integrated its own derivatives exchange into its platform. Decentralized P2P Bitcoin exchanges. Decentralized Bitcoin marketplaces for p2p-bitcoin trading are under development. Much progress is being made and many exciting initiatives have been launched. A concrete good decentralized example is Hodl Hodl; an alternative to Hodl Hodl is Paxful. Binance has also integrated its own P2P marketplace into its platform. For more information: decentralized exchanges. Decentralized Instant Bitcoin Lightning Exchanges. It is expected that more and more new free exchanges will be built on the Bitcoin Lightning network to enable peer-to-peer trading with Bitcoin and altcoins based on this technology and atomic swaps without third parties or trading accounts. Transactions can be processed instantly, traversing networks and block chains. A concrete example is the Boltz Exchange.
Instant Bitcoin to cryptocurrency exchange. There is an instant crypto exchange where you can quickly switch from bitcoin to other cryptos without verification. This is Changelly. This currency exchange and brokerage service makes it easy to exchange Bitcoin to other cryptocurrencies under your control. The best example of a functioning instant cryptocurrency exchange is Changelly! Bitcoin custodial broker exchange apps. There are brokerage firms, such as Blox, that specialize in the development of custodial crypto trading apps. These are managed custody wallets for Bitcoin and other crypto coins within which it is possible to buy Bitcoin from the broker, among other things. The purchased bitcoins are then fully managed by the broker or another third party. These apps have been developed for the safe and easy buying and selling of bitcoins; not for using Bitcoin as they do not have the necessary wallet functionality. A good example of a good custodial Bitcoin app is the Dutch Blox app. It is a great method for insecure non-technical users to buy bitcoins and save them securely without being stolen. It does require confidence in Blox's security measures that ultimately hold the bitcoins for you. Bitcoin payment platform and app with debit card functionality. There are more and more fintech companies and also banks that offer bitcoin. They have a money license from a financial authority, often in England or Estonia, or even have a banking license. A concrete example is Bitwala. For more information: Bitcoin debit card payment platforms. How do you actually want to use a Bitcoin exchange? Control questions! The above classification of the different types of bitcoin exchanges already indicates that there is a lot of choice. It is therefore important that you clarify for yourself how and why you prefer to use an exchange. It is best to test different service providers. At the pure p2p exchanges there may be many bitcoin investors who try to buy bitcoins cheaply and sell them expensive. In my opinion, it is a recommendation to start calmly with a real Dutch Bitcoin exchange, such as Bitvavo, or an excellent broker such as BTCDirect. You can buy bitcoins here reliably, easily and cheaply.
various bitcoin exchanges
Therefore, ask yourself the following control questions again: Familiar and easy in the Netherlands. Do you simply want to buy bitcoins easily with iDEAL from a Dutch service provider? Then you use the Bitvavo or BTCDirect service. Lower in this article there is a complete list of the best Dutch Bitcoin service providers. Look, compare and use the bitcoin exchange that suits you best (: Are you looking for a bitcoin exchange with a professional trading environment for active day trading in bitcoin and other cryptos? Then it is first wise to delve into the subject and follow a good course. You can then open an account with Bitvavo, a trusted Dutch Bitcoin and crypto trading platform. There are also very experienced parties such as Binance or Kraken abroad. Binance is the largest and cheapest bitcoin trading exchange where, among other things, many bitcoins are bought cheaply with the help of other cryptocurrencies by other bitcoin exchanges and brokers. The cheapest and best bitcoin and crypto exchange in the Netherlands is currently Bitvavo.
Would you like to trade in bitcoin and other cryptocurrency derivatives? Are you looking for a Bitcoin Futures Exchange for trading bitcoin futures contracts? Do you also want to have large levers? In that case, it is best to evaluate the Deribit exchange. Don't forget that this is a very risky bitcoin trading activity! If you are looking for fast returns in euros, you know little about the Bitcoin economy and the use of bitcoins then capitalizing on price movements for profit is much easier to do on eToro or using CFDs (very risky). Trading is done by placing "sell" (asks) and "buy" (bids) orders that are automatically linked together and also executed. Hence, do you only want to speculate with the prices easily, without much fuss and in a safe way to earn more euros? Then you can do this with the help of eToro (very risky). This broker has a well-designed trading environment where you can trade other assets in addition to Bitcoin.
Selection of Bitcoin exchanges and brokers in the world
Now follows a selection of exchanges and brokers by country and continent. This is far from complete, but it offers our readers a good overview of which important exchanges are active in the Netherlands, Europe, Japan, South Korea, Singapore, Hong Kong and the United States.