Our review examines the OTC landscape after 2022 events, that being Genesis Global Trading’s failure that exposed $3.5 billion in liabilities and highlighted counterparty risks. We rank top platforms based on liquidity, security, and compliance.

For the impatient, our leading choices include Coinbase Prime for regulated US institutions, Kraken OTC for balanced access with solid trust, and Gemini OTC for utmost security coupled with compliance.

In-Depth Reviews of the Best OTC Crypto Platforms

1. Kraken OTC

Kraken OTC delivers accessible institutional trading with a track record spanning more than a decade and compliance in key regions. Clients benefit from its blend of professional execution and manageable entry points, ideal for those avoiding ultra-high thresholds.

A dedicated manager handles each account, learning client needs to streamline trades. This setup suits family offices seeking attentive service without overwhelming scale requirements.

Key Features

Kraken OTC runs around the clock with settlements in currencies like USD, EUR, GBP, and CAD. Liquidity draws from internal pools, external sources, and inventory, covering over 100 assets. Clients get same-day crypto transfers and next-day fiat moves via reliable banks. Custody options include multi-signature cold storage for added protection.

Fee Structure

Spreads fall between 0.1% and 0.5% for pairs such as BTC/USD, adjusted by size, conditions, and liquidity. Pricing includes all costs without extra commissions.

Verdict:

• Pros: Registrations in the US and EU build client confidence. The $100,000 minimum opens doors wider than exclusive desks, while execution remains top-tier.
• Cons: Larger trades might find tighter spreads elsewhere. Onboarding takes weeks for intricate setups.

Best For: Institutions and high-net-worth individuals prioritizing security and regulatory compliance.

2. Binance OTC

Binance OTC taps into the exchange’s global dominance to provide broad asset access, from established coins to emerging tokens. Integration with Binance’s tools like staking enhances efficiency for users managing diverse portfolios.

This setup fits crypto-focused groups needing one partner for multiple services.

Key Features

Over 400 assets enable trades in niche tokens. Regional teams ensure constant support, with crypto settlements in hours and fiat through global banks.

Fee Structure

Spreads span 0.2% to 0.8%, tighter for liquid pairs and wider for rarities.

Verdict:

• Pros: Extensive selection includes tokens rare on other desks. Liquidity from Binance’s user base ensures reliable fills.
• Cons: Regulatory gaps in some areas restrict access. Focus on crypto natives might not suit traditional firms.

Best For: Traders seeking access to the widest variety of altcoins and deep liquidity.

3. Coinbase Prime

Coinbase Prime, backed by a public company under strict oversight, sets benchmarks in compliance and transparency. It merges trading with brokerage and custody, serving clients who need comprehensive tools.

As a key ETF custodian managing billions, it proves reliability in high-stakes environments.

Key Features

Access to 200+ assets comes with multi-currency settlements and APIs for automation. Reporting aids compliance and risk tracking.

Fee Structure

Spreads range from 0.1% to 1.0%, reflecting full-service value.

Verdict:

• Pros: Public status ensures accountability. All-in-one features simplify operations.
• Cons: Higher costs suit less price-focused users. Onboarding demands thorough checks.

Best For: U.S.-based institutions and corporate treasuries requiring top-tier security and integrated custody.

4. Gemini OTC

Gemini OTC embodies a security-focused approach, with compliance and custody at its core. Its New York operations under BitLicense appeal to cautious US clients bridging traditional and digital finance.

Integrated services cover trading to clearing, reducing operational friction.

Key Features

Certified operations include constant support and insured cold storage. Settlements deliver crypto same-day and fiat next-day.

Fee Structure

Spreads sit at 0.1% to 0.6% for primary pairs.

Verdict:

• Pros: Rigorous security protocols protect assets. Regulatory emphasis builds trust.
• Cons: Narrower asset range limits options. Premium service fits specific needs.

Best For: Family offices and investors who place the highest premium on regulatory adherence and asset security.

Our Ranking Methodology: How We Chose the Best OTC Desks

We ranked desks using transparent criteria to highlight platforms excelling in key areas.

• Liquidity Depth & Asset Diversity: We assessed trading pairs and large-order handling without slippage, drawing from order book data and provider reports.
• Security & Custody: Protocols, insurance, and options like MPC wallets faced scrutiny, with details from platform sites.
• Regulatory Compliance: Licenses from bodies like FCA and FinCEN got verified through official registers.
• Fee Structure Transparency: Spreads and costs underwent comparison using desk guides and industry analyses.
• Customer Support Quality: Responsiveness tests and client feedback informed this, based on reviews and interactions.
• Reputation & Track Record: Years active, testimonials, and post-2022 stability shaped views, from sources like The Block.

Our analysis draws from public data, platform terms, and institutional trader interviews.

What is Over-The-Counter Crypto Trading?

In case you are not familiar, OTC crypto trading means direct exchanges of cryptocurrency between parties outside public order books, often through brokers for large volumes. What does OTC mean in crypto? The same thing as in traditional finance: “Over the counter” refers to private deals avoiding exchange visibility, similar to peer-to-peer setups but with professional facilitation. This method suits high-volume cryptocurrency trades where discretion matters.

What is OTC in trading overall? It enables buyers and sellers to negotiate terms privately, bypassing open markets. In crypto, OTC desks handle these, providing quotes for assets like Bitcoin without market disruption. Users contact the desk, receive a price, and settle directly.

This contrasts with exchange trading, where orders hit public books and risk slippage. OTC offers certainty for institutional investors or whales managing substantial positions. Privacy prevents front-running, while fixed pricing stabilizes costs. Remember how 2022 collapses exposed risks? OTC evolved to emphasize vetted counterparties. For newcomers, think of it as a discreet negotiation versus a public auction. Platforms like Kraken OTC exemplify this, sourcing liquidity quietly.

Why Choose OTC Crypto Trading? Benefits for Large Transactions

High-volume traders face slippage on exchanges, where big orders shift prices and add costs. OTC crypto trading counters this by locking in rates privately, preserving value for institutional investors and whales. Benefits include stability that protects against market swings during execution.

• Price Stability & Zero Slippage: Desks absorb orders at fixed quotes, avoiding the 1–2% moves seen on public platforms for $65 million Bitcoin trades, per Kaiko data. This saves thousands in direct losses.
• Enhanced Privacy and Discretion: Trades stay off public books, shielding intentions from speculators and maintaining strategic advantages.
• Access to Deep Liquidity: Providers aggregate from global sources, filling multimillion-dollar requests beyond single-exchange limits, as with more traditional networks.
• Personalized, White-Glove Service: Dedicated managers tailor quotes and settlements, easing processes for busy high-net-worth users.

These advantages address privacy concerns and liquidity shortages in large transactions. On-chain analysis from Glassnode shows OTC volumes often double exchange spots, underscoring efficiency. “While on-exchange trading volume is transparent, a significant amount of BTC trades over the counter,” notes Glassnode in “The Week On-chain (Week 12, 2023)”. For whales, this means executing without signaling moves.

Final Verdict and Key Takeaways

OTC trading delivers privacy and stability for large crypto deals, with top desks like Coinbase Prime excelling in US compliance and Binance OTC in asset range. Post-2022 shifts prioritize vetted platforms.

“In my professional opinion, regulated OTC desks signal crypto’s growth, offering the stability institutions need,” says Alexander Brass, Financial Analyst at ChangeHero.

As a cryptocurrency user, sooner or later you run into its realities that do not quite work like we’re used to in more traditional economy and finance. For example, what is the whole deal with the blockchain fees and just why do they fluctuate so much? Depending on when you will read this article, you might also want an answer to the titular question. With this article, we aim to explain blockchain transaction fees in enough detail to make you equipped to handle them with grace.

Why are Bitcoin fees so high right now? There could be a few reasons:

• High demand caused by transactional activity. It can be caused by price movements, news or delays in block production. If waiting is not an option, look into increasing the fee via RBF or CPFP.
• Delayed block production. This issue is on the side of miners and is not a common occurrence. If the blocks are delayed, increasing the fees would not help, so the only option is to wait it out.
• Recent fee spike. Backward-looking algorithms can overcorrect due to recent fee history. Check a block explorer to cross-reference the actual current fee rate if your wallet is showing high fees.

Not looking for immediate answers? Then we suggest you to proceed to the article to learn about BTC fees and be better prepared to handle congestion and fee spikes!

Bitcoin’s Fee Market

The transaction fees baked into the Bitcoin protocol do not work like bank fees or the like. They are not percentage-based or flat but instead are calculated based on demand and supply and to compensate miners properly.

There is a fee market in Bitcoin and many cryptocurrencies that inherited this design. Since the block space is limited and only so many transactions can fit into the next block, users’ fees are essentially bids to be included. Every transaction competes in a system that resembles an auction: higher fees are likelier to be moved to the start of the queue.

How The Block Space Auction Works

When you broadcast your transaction on the blockchain and other nodes approve it, it ends up in a mempool. You can think of it as an off-chain waiting list, which miners use to create blocks while they compete with each other to solve the cryptographic problem.

A common misconception is that the fee’s amount is the sole deciding factor. The main principle, but not the only one, that miners use to prioritize transactions is the fee rate, calculated in satoshis per virtual byte. Miners are in it not just for the love of the game but also, for a profit, so they choose the transactions with the highest fee rates first. It makes sense that if given the choice between two transactions with the same fee amount, a miner would prioritize one of a lesser size letting them include more transactions and maximize profits.

Mind that the queue does not persist through several blocks: each block is composed from scratch. If the fees rise but your transaction was submitted with a low fee, it can take a while until it is finally confirmed. You can wait or you can use the Replace-by-Fee (RBF) function to rebroadcast a transaction with a higher fee to move it in the queue. Its analog that involves sending another transaction is Child-Pays-for-Parent, or CPFP.

Mempool as a Real-Time Fee Market

Note how the previous paragraph said a mempool and not the mempool. It’s because different nodes may have varying mempool contents; in other words, there is no single universal waiting list.

If the mempool size grows, for example, during increased demand or lagging block production, the fees can increase as more users compete for priority. However, once the block is added to the chain, the actual fee rates converge. Vice versa, if the demand is not heightened and block producers clear the mempool out at a good pace, the fees can be kept well below a dollar.

RBF and CPFP further speed up the rise in fees when the block producers fall behind the demand. Imagine having not just new transactions with bulkier fees flood into the queue but also older transactions changing their positions. Talk about fierce competition!

The Economics Behind Bitcoin Fee Fluctuations

How is it like in other cryptocurrencies? Ethereum is another network that used to be infamous for its skyrocketing fees. Even after the 2022 Merge that did away with mining, occasionally, the median transaction fee in Ethereum spikes as high as over $10. The reason is that Ethereum uses a multimodal model in which the fee auction is complemented with base fee and gas calibrated for the transaction’s complexity. These changes reduced the influence of factors that cause volatility in Bitcoin’s fees, although did not get rid of them completely.

Other blockchains are known to have lower fees, either due to their design or the lack of demand that Bitcoin or Ethereum see. But let’s get back to the BTC fee economy: on top of being relevant to more readers, it will also serve as an insightful glimpse into the workings of crypto.

Since the fees in Bitcoin and some other blockchains are not fixed but rely on demand, they fluctuate quite a bit, potentially with no ceiling. Even though the supply is fixed and predictable, it’s the demand that can create bottlenecks that even hefty fees won’t solve right away. This demonstrates the relationship between supply and demand that often drives prices of goods and services: rising demand with fixed supply causes the prices to increase.

The network usage is also influencing the fee distribution: different transaction types compete with varying urgency levels. It is reflected directly in the Ethereum fee model, where transactions with smart contract calls would cost more by default than simple transfers. Indirectly, this is also present in Bitcoin: the more UTXO inputs a transaction has, the higher fee it justifies due to size. Off-chain factors are also reflected in the fee size: exchange withdrawals often overpay for speed, and you can guess what result it can have during a panic sell.

In fact, off-chain factors inform demand in the majority of cases. Price movements? Expect exchange inflows or outflows. Something new in Ordinals? The block space will be in demand as ever. Institutional adoption and regulatory news, mining hash rate changes equally have the potential to sway demand for BTC transactions. Even geopolitical and geographic events that impact mining on-site can affect operations and reduce capacity globally.

Reading the Fee Market Signals

So far, the point is that BTC fees fluctuate wildly but not entirely unpredictably. Even if you don’t have the ability to adjust fees as needed, you still can optimize costs through timing.

How to Read Mempool Data

There are tools that let you see the state of mempool at any given time with some useful statistics, mempool.space being one of the best known. What you should be looking for is gaps in fee distributions: if there is no competition at a certain level, this tier will get cleared faster.

Weekdays and weekends also play into the confirmation speed: since the financial activity typically reduces during the weekend, transactions with lower fees get more chances to clear, but come Monday, the demand and fees will bounce back.

Why Algorithms Fail

Fee estimation algorithms present in many wallets often fail to account for rapidly changing block space competition. The reason is they are backward-looking, using recent block inclusion rates. Those might be reliable in calmer conditions but immediately after a fee spike you might end up overpaying. They also create those fee distribution gaps we talked about but instead of letting you save on the fee, they cluster your transactions with many others, furthering its position in the queue.

What can you do then? If you seriously intend to save on fees, delay non-urgent transactions to non-business hours, and that includes time zones outside of yours, and days. If you know a major event or release is coming, waiting it out might be a good idea too. After all, you can always broadcast a transaction with a low-priority fee and use RBF or CPFP once you get a better idea of how much it should actually cost.

Conclusion: Looking Forward

If the current state of BTC fees does not look all that sustainable to you, it is probably because of the clear lack of scalability it highlights. Layer-2 solutions quite successfully ease the burden on the main chain but this will also translate into lower miner revenue. As time goes on, block rewards get reduced and miners have to rely on transaction fees for revenue more and more. At the current rate, it’s only about 10–20% of their earnings, so only higher prices for Bitcoin or other underlying cryptocurrencies can close this gap.

Picture this: You’re ready to invest $100 in Bitcoin, excited about joining the crypto revolution. You hit “buy” on your favorite exchange, but when the dust settles, you notice something unsettling: you only received $94 worth of BTC. Where did that $6 go?

To top this all off, those weren’t “network fees” or some unavoidable blockchain cost. You just experienced the ugly reality of crypto trading fees, where platforms quietly slice away at your investment returns before you even realize what’s happening. Whether you’re a weekend Bitcoin buyer or someone making daily trades, these seemingly small percentages compound quickly. Hundreds or thousands of dollars annually could disappear into hidden fees that most traders never see coming.

This guide cuts through the confusion surrounding crypto trading costs in 2025. We’ll break down fee structures across major centralized exchanges, explore decentralized alternatives, examine instant swap services, and reveal proven strategies to save money on crypto trades. By the end, you’ll know exactly how to make every dollar count in your crypto investments.

How Crypto Trading Fees Work

Before we dive into comparing platforms, in case you need it, let’s establish the essential vocabulary that separates savvy traders from those who pay unnecessary fees.

The Maker-Taker Foundation

Most exchanges use what’s called the maker fee and taker fee structure. But what does that actually mean?

A maker fee applies when you place an order that adds liquidity to the order book; essentially, you’re “making” the market by setting a price and waiting for someone to match it. If Bitcoin is trading at $102,100 and you place a limit order to buy at $102,000, you’re a maker. These fees typically run around 0.1%, so a $1,000 trade costs you just $1.

A taker fee kicks in when you accept an existing order from the book, “taking” available liquidity. Market orders are classic taker trades: you want Bitcoin now at whatever the current price is. These fees run higher, often 0.15%, making that same $1,000 trade cost $1.50.

Fair warning about assuming all exchanges work the same way: some platforms use flat fees regardless of order type, while others offer zero maker fees to encourage liquidity provision.

The Sneaky Spread

You might think advertised fees tell the whole story, but actually, the spread — the difference between the highest buy order and lowest sell order — represents the most overlooked cost in crypto trading. Even if an exchange advertises “zero fees,” you might pay 0.5–2% extra through inflated spreads. This transaction fee in disguise can be more expensive than transparent trading fees.

Fun fact: Some “fee-free” platforms make their entire profit from spreads, which means they’re actually more expensive than exchanges with clear fee structures.

Exchanges Love Patient Traders

Think of crypto exchanges like a bustling farmer’s market, and this analogy will make perfect sense. Makers are vendors who set up stalls with specific prices, waiting patiently for customers — they provide stability and options for shoppers. Takers are customers who walk up to existing stalls and buy at posted prices, accepting what’s immediately available.

Why do exchanges reward makers with lower fees? Because they provide the crucial liquidity that keeps markets running smoothly. Without makers setting competitive prices, takers would face wider spreads and worse rates. It’s a symbiotic relationship where patience literally pays.

Speaking of which, this explains why using limit orders (becoming a maker) consistently costs less than market orders (taking liquidity). The difference might seem small, but for active traders, it adds up fast.

The Real Cost of Moving Your Crypto

But here’s something a tutorial worth its salt must tell you: trading fees are just the beginning of your total crypto costs. Moving assets off-exchange introduces an entirely different fee structure that catches many traders off-guard.

Network costs originate from blockchain protocols themselves: Ethereum charges gas for smart contract execution, Bitcoin miners require fees for transaction processing. The catch is that exchanges don’t simply pass these costs through transparently.

Let’s be real about what’s happening: while the Bitcoin network might require $3 for fast confirmation, your exchange could charge $15–30 for the same withdrawal. These gas fees and withdrawal markups vary dramatically between platforms, making them crucial factors in your exchange selection process.

It would not hurt to research withdrawal costs before funding your accounts — getting caught with high exit fees can trap your assets longer than intended.

How Major Crypto Exchanges Stack Up on Fees

Now that you more or less understand the fee landscape, let’s examine how the world’s largest exchanges actually compare. Each platform targets different trader types, and their fee structures reflect these strategic decisions.

CEX Fee Comparison

First up, Binance dominates with competitive Binance fees and an unmatched cryptocurrency variety. Their BNB token provides a substantial 25% discount, reducing effective spot trading fees to just 0.075%. With 350+ trading pairs and comprehensive VIP tiers that can lower fees to 0.02% for whale traders, Binance serves everyone from beginners to institutions.

But isn’t Binance overwhelming for beginners? Truth be told, yes…but the cost savings often justify the learning curve for anyone planning regular trades.

Coinbase takes a different approach, prioritizing simplicity over savings with significantly higher Coinbase fees. They’ve built their reputation on regulatory compliance and ease-of-use, though active traders pay a premium for this convenience. The platform lacks native token discounts, making it expensive for frequent trading.

Remember those spreads we mentioned? Coinbase’s simplified interface often hides additional costs in wider spreads, especially on their basic platform.

Kraken strikes a middle ground with moderate Kraken fees and sterling security credentials. Having never suffered a major hack, they’ve earned institutional trust while maintaining competitive rates. Their maker-taker spread incentivizes liquidity provision, and VIP tiers offer meaningful discounts for volume traders.

Bybit caters specifically to derivatives traders with identical maker-taker rates and sophisticated futures fees structures. While their spot trading options are limited, their derivatives platform offers some of the industry’s lowest margin trading costs.

The VIP Advantage — When Volume Actually Pays

For a small-time trader, this might not be the most relevant info but most major exchanges employ VIP tiers that dramatically reduce costs for high-volume traders. We’re talking about real savings here: a trader moving $1 million monthly might pay just 0.02–0.04% in fees, a 75% reduction from retail rates.

Additionally, native exchange tokens like Binance’s BNB can slash costs further while providing additional platform benefits. But here’s what most guides will conveniently omit: these tokens also carry investment risk, so factor that into your cost calculations.

The Alternatives: When Convenience Trumps Cost

Beyond traditional order book exchanges, a growing ecosystem of alternative trading platforms offers different approaches to crypto conversion. These alternatives prioritize convenience and accessibility over minimal costs.

Instant swap services like ChangeHero, Changelly, and ChangeNOW operate on dynamic pricing models rather than fixed fee structures. Instead of transparent maker-taker fees, their costs are embedded in exchange rate spreads, typically ranging from 0.5–3% or higher depending on market conditions.

For example, when Bitcoin trades at $102,000 on major exchanges, an instant swap might quote $101,300; that $700 difference represents your trading cost. Hence, they are convenient but rarely the cheapest option for straightforward cryptocurrency trading.

Decentralized exchanges like Uniswap and SushiSwap use Automated Market Maker (AMM) protocols powered by liquidity pools. What does an AMM actually do? Instead of matching buyer-seller orders, they algorithmically price trades based on pool ratios using mathematical formulas.

DEX fees typically include a 0.3% liquidity pool fee plus Ethereum gas costs that can range from $10–100+ during network congestion. While these platforms offer permissionless trading without KYC requirements, total costs often exceed centralized alternatives.

The convenience factor is undeniable: instant swaps complete in minutes without registration, while DEXs provide 24/7 access to thousands of tokens unavailable on centralized platforms. However, smart contract risks and the technical knowledge required for wallet management add complexity beyond simple fee calculations.

P2P Marketplaces

You might think peer-to-peer platforms like P2P boards on most popular CEXs and LocalCoinSwap charge zero fees, but actually, the costs are just structured differently. Instead of explicit trading fees, merchants incorporate their profits into exchange rate spreads.

When Bitcoin trades at $102,000, P2P merchants might offer rates between $101,500–102,200 depending on payment method, regional demand, and seller competition. The “fee” becomes the opportunity cost of not receiving the absolute best market rate.

But P2P trading really shines when it’s the best or only method for converting specific fiat currencies in regions with restricted banking access. Despite higher effective costs compared to centralized exchanges, P2P platforms provide crucial cryptocurrency access where traditional exchanges cannot operate.

Your Personal Fee-Fighting Strategy

With multiple exchange types offering different cost structures, choosing the right platform depends on your specific trading profile and priorities.

Just Getting Started (Small purchases <$500)

• Your priority: Simplicity and security over savings
• Best choice: Coinbase for ease-of-use, despite higher spreads
• Alternative: Kraken for relatively low fees with moderate complexity
• Reality check: You’ll pay more, but the learning experience is worth it

Regular Investor ($500–10,000 monthly)

• Your priority: Balance of cost and features
• Best choice: Binance with BNB token discounts (0.075% effective fees)
• Alternative: Kraken for security-conscious investors
• Pro tip: This is where fee optimization really starts paying off

Active Trader (>$10,000 monthly)

• Your priority: Minimum trading costs
• Best choice: Binance VIP tiers or Bybit for derivatives
• Strategy: Leverage maker orders and volume discounts
• Remember: Every 0.01% matters at this volume

If Privacy Is Your Priority

• Your goal: Little to No KYC requirements
• Best choice: DEXs like Uniswap (accept higher gas costs)
• Alternative: P2P platforms for fiat conversion
• Trade-off: Higher costs for anonymity

Check out this guide for more guidance into this category of platforms!

Restricted Region

• Your goal: Access despite limitations
• Best choice: P2P marketplaces
• Accept: Higher spreads for accessibility
• Bonus: Often the only viable option anyway

Large Crypto-to-Crypto Swaps

• Compare: DEX liquidity depth vs. CEX fees
• Consider: Slippage on DEXs vs. fixed fees on centralized platforms
• Test: Small amounts first to gauge real costs

The most cost-effective approach to how to choose exchange involves matching platform strengths to your actual trading behavior, not theoretical ideals. Casual buyers can prioritize simplicity over savings, active traders should focus on fee minimization, and privacy advocates must accept premium costs for anonymity.

Calculate your monthly trading volume, identify your primary use cases, and select platforms that optimize for your specific needs rather than chasing universally “best” exchanges.

Conclusion

Crypto trading fees are a reality to be understood, not avoided entirely. The mythical single cheapest platform is not necessarily your perfect cost-to-benefit match. Armed with knowledge of maker-taker structures, hidden fees like spreads, withdrawal costs, and alternative platforms, you can now make informed decisions that preserve more of your investment capital.

Whether you choose Binance’s low fees with BNB discounts, embrace Coinbase’s simplicity despite higher costs, or explore P2P and DEX alternatives for specific needs, the key is matching platforms to your actual trading profile. Remember to factor in all fee types, not just the advertised rates, when conducting your exchange comparison.

Take control by applying these insights to save money on crypto trades and maximize every dollar invested in your digital asset portfolio. The knowledge is yours — now use it wisely.

Crypto trading is becoming more legitimate and closer to being properly regulated; few can argue that this is a bad thing! However, on the way there, we might have lost some of the original privacy-conscious spirit of crypto. Some, but not all! Today, we’ll highlight eight platforms that prove cypherpunk’s not dead.

About No KYC Crypto Exchanges

What are No KYC Exchanges?

Going off the name, you can safely guess that a No-KYC Exchange has no KYC. You are also probably aware of what it stands for and is but just in case, KYC stands for “Know Your Customer” and is the name of identity verification procedures.

Therefore, No-KYC (Know Your Customer) crypto exchanges are platforms that allow users to trade cryptocurrencies without requiring identity verification. As opposed to other exchanges that mandate users provide personal information such as government-issued IDs, proof of address, and other documents with rather sensitive personal data, no-KYC exchanges enable trading with minimal or no personal data collection.

But how? These platforms typically operate under different regulatory frameworks or in jurisdictions with more relaxed compliance requirements. In any case, they cater to users who prioritize privacy and want to maintain anonymity in their cryptocurrency transactions.

Why Use a No KYC Exchange? Benefits and Advantages

Even if you are a law-abiding citizen and have nothing to hide, you might still want to consider foregoing KYC for a few absolutely legal reasons.

• Privacy Protection: Many users value financial privacy and prefer not to link their real identity to their cryptocurrency holdings and trading activities.
• Quick Access: No-KYC exchanges allow immediate trading without waiting for lengthy verification processes that can take days or weeks on other platforms.
• Global Accessibility: These platforms often serve users from regions where traditional exchanges may not be available or where regulatory restrictions limit access to cryptocurrency services.
• Avoiding Data Risks: By not providing personal information, users eliminate the risk of their sensitive data being compromised in potential exchange breaches.

A Few More Reasons Why Privacy in Crypto Trading Matters

Maintaining privacy in cryptocurrency trading has multiple legitimate benefits. It protects you from potential targeting by malicious actors who might exploit otherwise transparent knowledge of your crypto holdings. Privacy also preserves your financial autonomy, allowing you to maintain control over your personal financial information in an increasingly surveilled digital landscape.

However, privacy is not a pass for illegal activity. These tools should be used responsibly and in compliance with applicable laws and regulations in your jurisdiction.

Best No KYC Crypto Exchanges: Our Expert Picks

Bisq (Decentralized Exchange)

Although the list is in no particular order, the first mention rightfully goes to Bisq. It is currently one of the best privacy-preserving platforms to trade Bitcoin and a few other altcoins. It may be limited to peer-to-peer trading in its functionality and is no trivial task to use but it does what it sets out to do with flying colors.

Key Features:

• Fully decentralized peer-to-peer trading
• Open-source software
• Built-in arbitration system
• No central authority or single point of failure

Supported Cryptocurrencies: Bitcoin and various altcoins including Monero, Litecoin, and Ethereum-based tokens

Trading Fees: 0.1% maker fee, 0.7% taker fee (paid to arbitrators and network operators)

Pros and Cons:

• Pros: True decentralization, strong privacy, no KYC requirements, open-source
• Cons: Lower liquidity, slower trading process, requires technical knowledge

KuCoin (CEX with Partial KYC)

When it comes to centralized exchanges, more popular options offer a better experience overall but KuCoin gained at least a part of its audience thanks to its relatively relaxed policy on user identification. Make no mistake, it is still not a completely anonymous platform but you can use it for decent results with no strings attached.

Key Features:

• Allows trading up to certain limits without full KYC
• Wide range of trading pairs
• Advanced trading features including futures and margin trading
• Mobile app available

Supported Cryptocurrencies: 700+ cryptocurrencies including major coins and numerous altcoins

Trading Fees: 0.1% for both makers and takers (with fee reductions available)

Pros and Cons:

• Pros: High liquidity, extensive coin selection, professional trading tools
• Cons: May require KYC for higher withdrawal limits, centralized platform risks

MEXC (CEX with Limited KYC)

If KuCoin for any reason does not meet your needs, there is also MEXC. Likewise, it is your regular CEX with a footnote that it offers some of its features to users who don’t go through verification.

Key Features:

• High withdrawal limits without KYC
• Extensive altcoin selection
• Spot and futures trading
• Regular token listings

Supported Cryptocurrencies: 1000+ trading pairs including many emerging altcoins

Trading Fees: 0.2% for spot trading (with VIP level reductions available)

Pros and Cons:

• Pros: Large variety of coins, competitive fees, good liquidity
• Cons: Interface can be overwhelming for beginners, regulatory uncertainty

ChangeHero (Instant Exchange)

Entering the instant swap territory, we have a lot more platforms to cover and cannot fail to mention ChangeHero. These services strike a middle ground between the complete anonymity of Bisq and regulatory compliance of most CEXs. As a result, you can freely use it without ever providing any identifying information but also without worrying about counterparty risk.

Key Features:

• Non-custodial cryptocurrency exchange
• No registration or limits
• Flexible swap rate options
• 24/7 customer support

Supported Cryptocurrencies: 300+ digital assets

Trading Fees: 0.5% service fee

Pros and Cons:

• Pros: Virtually anonymous, user-friendly interface, reliable service
• Cons: Relatively higher fees, everything outside of exchange services is third-party

ChangeNOW (Instant Exchange)

This is another well-known name in the exchangers niche. They have made it for themselves thanks to a good selection of assets and diligent operations.

Key Features:

• Instant cryptocurrency swaps
• No registration required
• Fixed and floating rate options
• API for developers

Supported Cryptocurrencies: 400+ cryptocurrencies and tokens

Trading Fees: 0.25% service fee (varies by currency pair)

Pros and Cons:

• Pros: Simple to use, no account needed, quick transactions
• Cons: Higher fees than traditional exchanges, limited to simple swaps

StealthEX (Instant Exchange)

This platform distinguishes itself from competitors with a focus on privacy and anonymity. Despite that, they still offer a wide selection of assets and competitive exchange rates.

Key Features:

• Anonymous crypto swaps
• No registration required
• Fixed rate exchanges available
• Partnership with multiple liquidity providers

Supported Cryptocurrencies: 450+ cryptocurrencies

Trading Fees: 0.2–0.75% depending on the trading pair

Pros and Cons:

• Pros: Wide selection of coins, transparent fee structure, good customer service
• Cons: Limited to exchange services, fees can be high for small amounts

SimpleSwap

Yep, another instant exchange. What can we say, the niche is quite occupied and caters to the exact user demand! Which is not a bad thing, since each of those has something unique or just better to offer. SimpleSwap, for one, has a comparatively ginormous supported asset list and based on user reviews, is providing a service on par with its competitors with occasionally striking better rates.

Key Features:

• No registration required
• Fixed and floating rates
• Affiliate program
• Mobile-friendly interface

Supported Cryptocurrencies: 1500+ cryptocurrencies and tokens

Trading Fees: 0.5% service fee

Pros and Cons:

• Pros: Large coin selection, straightforward process, competitive rates
• Cons: Limited trading features, higher fees than spot exchanges

SideShift AI

To round the list up, something completely different: an exchange platform powered by AI. It seems to offer more features that instant exchangers at the cost of the supported coins and tokens. But what they miss in quantity, they make up for with quality, making sure the privacy-focused crypto projects are available.

Key Features:

• AI-powered trading optimization
• No account registration
• Multiple settlement options
• Advanced privacy features

Supported Cryptocurrencies: 30+ major cryptocurrencies with focus on privacy coins

Trading Fees: Variable based on market conditions and liquidity

Pros and Cons:

• Pros: Advanced privacy features, innovative technology, no KYC
• Cons: Limited coin selection, newer platform with less track record

How to Choose the Best No KYC Crypto Exchange

Eight options can be a lot, especially when you know they all deserve attention. Let us highlight some of the features that you can review yourself to make the choice that meets your needs.

Factors to Consider

• Security Measures. Evaluate the platform’s security infrastructure including cold storage practices, multi-signature wallets, and security audit history. Look for exchanges that prioritize user fund protection through robust security protocols.
• User Experience. Consider the platform’s interface design, ease of navigation, and overall user experience. A well-designed platform reduces the likelihood of costly mistakes during trading.
• Supported Payment Methods. Check available deposit and withdrawal methods, including cryptocurrency options, processing times, and any associated fees.
• Trading Fees. Compare fee structures across platforms, including maker/taker fees, withdrawal fees, and any hidden costs that might affect your trading profitability.
• Customer Support. Assess the quality and responsiveness of customer support, especially important when dealing with platforms that may have limited regulatory oversight.
• Liquidity. Higher liquidity generally means better price execution and lower slippage, particularly important for larger trades.

Comparison of Our Picks

Disadvantages and Risks of No KYC Crypto Exchanges

We have already discussed why you should consider researching and using more privacy-oriented platforms. No-KYC exchanges provide users with enhanced financial privacy by not requiring personal identification. By not providing personal information to exchanges, users eliminate the risk of their sensitive data being compromised in potential platform breaches. On top of it, No-KYC exchanges provide global accessibility that helps democratize access to cryptocurrency markets.

But what about the drawbacks? Of course, they are present, and if you decide to commit to it, you should be aware of the risks and the downsides.

Potential for Scams and Unregulated Platforms

The lack of regulatory oversight on some no-KYC platforms can create environments where fraudulent operators may attempt to exploit users. Due diligence becomes even more critical when choosing these platforms.

Limited Customer Support

Many no-KYC exchanges operate with minimal staff and may provide limited customer support compared to fully regulated exchanges. This can be problematic when issues arise with trades or account access.

Lower Liquidity

Smaller, privacy-focused exchanges typically have lower trading volumes, which can result in wider bid-ask spreads and potential slippage on larger orders.

Regulatory Concerns

Users must be aware of the legal implications of using no-KYC exchanges in their jurisdiction. Some regions may have specific requirements for cryptocurrency trading that could affect the legality of using such platforms.

Best Practices for Trading on No KYC Exchanges

What do you do once you are aware of the risks? You exercise risk management! Below are more tips for mitigating risks not only related to the No-KYC part but best practices in general. This will be on the exam!

Security Tips

Always use strong, unique passwords and enable two-factor authentication when available. Consider using a VPN for additional privacy protection, but ensure VPN usage complies with the exchange’s terms of service and local regulations.

Verify the authenticity of exchange URLs to avoid phishing attacks, and bookmark legitimate sites rather than searching for them repeatedly.

Wallet Management

Use personal wallets for storing cryptocurrencies rather than leaving funds on exchanges for extended periods. Hardware wallets provide the highest level of security for long-term storage.

Maintain separate wallets for different purposes and consider using privacy-focused cryptocurrencies for enhanced transaction privacy.

Risk Management

Start with small amounts when testing new platforms, and never invest more than you can afford to lose. Diversify across multiple platforms rather than concentrating all activity on a single exchange.

Keep detailed records of your transactions for tax reporting purposes, even when using privacy-focused platforms.

Conclusion

The No-KYC crypto exchange landscape includes various types of platforms, from fully decentralized exchanges like Bisq to instant swap services like ChangeHero, each with distinct advantages and limitations. When selecting a no-KYC crypto exchange, prioritize platforms with strong security track records, transparent fee structures, and reliable customer support. Remember that privacy tools should be used responsibly and in compliance with applicable laws in your jurisdiction.

If you are not a blockchain developer or do not routinely dive into the code, chances are, you won’t even know what a testnet is when using cryptocurrencies. There is one very unfortunate circumstance in which you might learn about it in a completely unintended way — falling for a testnet scam. In this article, we’ll cover why testnets do not deserve a bad rep for this and how to avoid these schemes.

So, what does testnet mean in crypto?

Coming from “test” and “net” as in “network”, testnet means a version of a blockchain that is primarily used for testing purposes. Its opposite is mainnet, which you know and love as the real actual blockchain networks.

The distinction between the two is solidified in the fact that the native tokens used in a testnet have no monetary value. Testnet tokens are not freely tradeable and do not need to follow the supply dynamics or tokenomics of the mainnet cryptocurrency. With them, developers are free to test their blockchain applications and contracts without risking real funds, while getting a good idea of how real tokens would work in those.

The Main Testnet vs. Mainnet Distinction

By design, testnet and mainnet transaction histories are completely separate and non-transferable. Therefore, it does not matter how much testnet Ether you get with a faucet, you cannot convert it to mainnet ETH.

• Mainnet: The live, fully functional blockchain with tokens having real monetary value. All transactions are permanent and can bear real consequences.
• Testnet: A separate, simulated environment for testing. Although its purpose is to simulate mainnet behavior, the rules are a lot more loose: faucets are way more generous, for instance.

Testnets are quite cool, often giving users the opportunity to see things yet to come to the mainnet. But for some unlucky users, their first encounter with the idea might be falling for a trap.

How Testnets Get Used in Scams

So far, we have established that a regular cryptocurrency user has no need to even know about testnets, leave alone use them. Scammers exploit this lack of knowledge to convince victims of things that are not really there: balances, airdrops, even whole projects. However, their returns from the act can be rather tangible: actual money, personal data and access to wallets.

Forewarned is forearmed, so for our further tips to not sound hollow, let’s first see how scammers take advantage of testnets to defraud users.

Faking Receipts

Scammers often promise a large airdrop of a new project’s tokens, claiming they’re valuable, but they are actually worthless testnet tokens. They may create a fake website, social media profile, or even a fake token on a decentralized exchange (DEX) to make it seem real.

• How it works: A scammer advertises a new, exciting project and a large token airdrop. To claim the “airdrop,” you’re instructed to connect your wallet to a fake website or send a small amount of real cryptocurrency as a “gas fee” or “verification” fee.
• The catch: By connecting your wallet to their malicious site, you may expose your private keys or unknowingly sign a transaction that gives them permission to drain your wallet of its real funds. If you send them a fee, your money is gone for good.

Fake Projects

Some scammers create a completely fake testnet and lure users in with promises of future profits. They might try to sell you a “membership” or “early access pass” for real money.

• How it works: The scammer creates a fake testnet and promotes it as an exclusive, high-potential project. They’ll tell you that you need to send them a small amount of real cryptocurrency to get whitelisted for the project or to get access to the “real” tokens.
• The catch: There is no real project, and the money you send is a donation to the scammer.

(Testnet) Token Sale

In this scam, a fraudster tries to sell you testnet tokens, claiming they’re the real mainnet tokens at a discounted price.

• How it works: A scammer posts a “too good to be true” offer on a social media platform, claiming to be selling a valuable cryptocurrency for cheap. When you agree to the trade, they send you worthless testnet tokens while you send them real cryptocurrency.
• The catch: You’re left with useless tokens, and your real money is gone. Remember, testnet tokens’ whole thing is that they have no value, so they should never be purchased.

Recognize and Avoid Testnet Scams

Since bad actors want to take advantage of you not knowing what a testnet is, your countermeasure is to not give them this chance. You’re already halfway there! Here are a few more tips to stay safe and blow the lid off their testnet-related schemes.

1. Verify the Source

Always double-check the project’s official channels. If you hear about a testnet or airdrop from a random person or an unrelated social media account, it’s a major red flag. Check for official announcements on the project’s website, blog, and verified social media profiles. Cross-referencing might also be a good idea.

2. Never Pay for Testnet Tokens

Testnet tokens are free. The purpose of a testnet faucet is to give away testnet tokens for free so that developers and users can test the network. If someone asks you to send them money to receive testnet tokens (check the explorer to know for sure), it is a scam.

3. Check Wallet Addresses

Some testnet addresses have a different format than their mainnet counterparts. For example, Bitcoin testnet addresses begin with ‘m’ or ’n’, while mainnet addresses start with ‘1’, ‘3’, or ‘bc1’. While not all testnets have a distinct address format (like Ethereum), it’s a good practice to be mindful of this difference. Besides, checking an unfamiliar address even if it does not set off immediate alarms might expose it well before anything happens.

4. Haste Makes Waste

All kinds of scammers often create a sense of urgency, pressuring you to act fast before an opportunity is gone. In reality, the only thing you are missing out on is the chance to realize you’re being duped. Scammers trying to convince you their testnet addresses and tokens are real would want nothing more than you not seeing the “testnet” label in the wallet or blockchain explorer — don’t give them this chance.

5. Use a Separate Wallet for Testing

For maximum security, use a dedicated crypto wallet for all your testnet activities. This wallet should not hold any of your real, mainnet cryptocurrency. This practice ensures that even if you accidentally interact with a malicious contract (a more common beast in this forest), your real funds remain safe.

Conclusion

Without testnets, blockchain development would probably have been in its Stone Age still, so when used for intended purposes, they are awesome. They’ll even let you live out that dream of having 1, 10 or 10,000 bitcoins — just remember that those are fool’s gold, and don’t let the scammers scam you!

If you enjoy content by the ChangeHero team, you will find plenty in the ChangeHero Blog or our social media: X, Facebook, and Telegram.

Even though “don’t trust, verify” is the way to go, these days crypto is not just for those who would bother with it. The vast majority of crypto users are not seasoned cypherpunks but regular Joes who are fine with a little bit of trust in a centralized platform. Still, no one would want to see that trust misplaced, so the titular question is a rather frequent one.

What to look out for when researching exchanges for crypto? Which industry players are applying the best practices? Learn in our article with reviews.

What Exactly Makes a Crypto Exchange Safe?

When we mention safety and security in cryptocurrency exchanges, what exactly is being talked about? Security features that safeguard your account and prevent bad actors from gaining access to it? Compliance with regulation and licensing which makes it less likely that the government will force the platform to shut down, albeit at the price of privacy? No history of hacks whatsoever? Transparency or favorable user reviews?

Truth be told, it’s a little bit of everything. Being sure your account is there for you to trade anytime is not enough if it puts your personal data at risk, just like never suffering a hack does not mean the platform is unhackable. Nevertheless, security is one of the priorities for anyone taking crypto seriously, and it’s a complex issue to boot, so we’re here to break it down. What security measures should users look for in a crypto exchange? Why is regulation important for crypto exchange security? What role does the exchange’s history play in assessing its safety? That’s what we’re going to answer next.

License = Security Guarantee?

Sadly, things are not as simple as “a regulated exchange is safe by default”, although this is a very strong start. A license to operate proves that an exchange meets a certain standard and has the green light to work, which is not just great for them as a business. A license and compliance that comes with it usually means that the platform is not going anywhere soon, although it’s worth keeping in mind licenses can be revoked.

Crypto may be borderless but laws and regulations aren’t, and licensing criteria, if there are any, as well as issuing bodies, differ depending on the jurisdiction. You can expect a US-based platform such as Coinbase to be recognized by FinCEN, or UK’s Financial Conduct Authority, or a MiCA license from the EU member states. It seems important to clarify just in case that you should be checking if the exchange is licensed where you are, not where they are based from.

Regulatory compliance comes with obligations such as compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) guidelines and regulations. Therefore, licensed platforms are required to employ “know-your-customer” procedures (KYC) to identify users and the funds circulating in the platform. Many see it as bothersome at best and a breach of privacy at worst but regulatory oversight has its major benefits. As a user of the regulated exchange, you are less exposed to systemic risk of fraud and exploits, not to mention that these exchanges reduce this risk for the broader ecosystem by making it harder for criminals to operate in the space.

Safeguards and Security Measures

Arguably, the first thing to come to mind when discussing the security of crypto exchanges is not legal matters but concrete measures to bolster user and data security. They include both user-side and exchange-side protections to close the trust gap as effectively as possible.

One of them is two-factor authentication (2FA), a ubiquitous security feature that helps protect access to users’ accounts. With 2FA or any other multi-factor authentication method, in addition to a password, additional authentication is required to verify access, and if done correctly, it can protect you even in case the password is obtained by bad actors. There are various 2FA methods, varying in their reliability and convenience: from SMS authentication, which is handy but susceptible to SIM-swap attacks, to 2FA apps that are a bit trickier to intercept and whole dedicated hardware devices.

Nevertheless, in the event of an exchange hack, 2FA is not likely to help. Which is why exchanges themselves are also expected to take care of the security of users’ funds. Just like you are better off with using hot wallets for smaller amounts and keeping the bulk of funds in cold storage, exchanges are keeping liquidity in hot storage and their vaults offline. The safeguards don’t end here, as the platforms are also expected to encrypt user data and transactions.

Should There be Insurance?

Another topic for discussion when it comes to exchange safety criteria is compensation policies. One of the first things crypto users learn is that blockchain transactions are practically irreversible. In the event of fraud or a hack, the funds will be almost impossible to recover, which is why safety to prevent this in the first place is paramount.

Traditional finance also enjoys deposit insurance such as FDIC in the US, so it is not surprising that it is seen as the norm and is expected from crypto, too. However, due to limited government reach into the sphere, no built-in protections are present, so it is up to the exchange to handle the losses.

Cryptocurrency exchanges that intend to compete with financial services take matters into their own hands and offer a safety net for their users provided with their own means. Bitstamp insures user funds with the custodian BitGo, Gemini offers both private compensation fund for crypto and FDIC insurance for fiat deposits, Binance maintains the notorious Secure Asset Funds for Users (SAFU) company fund.

Reiterating the point, in the crypto industry, deposit insurance is not expected by default due to how crypto transactions work. However, businesses employ their own reimbursement policies to make sure the user trust is not wasted in the event of a hack or exploit. Due to the lack of common policy, though, coverage limits and eligibility criteria vary greatly by platform.

Top Safest Crypto Exchanges

With all that in mind, what are the best crypto exchanges when it comes to keeping the funds secure? You probably aren’t going to be surprised with seeing the top dogs in this list. This review will focus on their security features and highlight cons as well as pros for choosing that particular platform.

Kraken (US)

In trading volumes and a variety of assets and markets, Kraken may be not a leader but a runner-up. Regardless, they make up for it with an in-depth defense approach to security and global licensing.

Licenses it holds include Money Services Business registration with FinCEN in the U.S., a Restricted Dealer registration in Canada, a MiCA license from the Central Bank of Ireland for 30 EEA countries. The exchange also maintains licenses in the UK (FCA) and Bermuda.

As for the security measures, Kraken holds reserves in a combination of cold and hot storage and secures its infrastructure with tight security online and offline. On top of data encryption and other standard best practices, they offer master key support and Global Settings Lock (GSL).

Pros and Cons:

• Pros: Highly regulated, compliant, strong reputation for security. Robust security features and no history of user fund loss.
• Cons: Higher fees, complaints about customer support from user reviews, limited geographical availability.

Gemini (US)

Another US-based (this will become a pattern) cryptocurrency exchange famous for its commitment to compliance and security is Gemini. More precisely, it operates from the state of New York with BitLicense. In addition to licenses in all US states, Gemini goes through routine third-party audits, has completed SOC 1 and SOC 2 Type 2 exams, and earned ISO 27001 certification.

As mentioned before, Gemini provides a dual-layer insurance for user funds in both crypto and fiat (USD) balances. All the expected security measures are there for everyone, regardless of their net worth and experience.

Pros and Cons:

• Pros: Commitment to security backed by multiple certifications and audits. Crypto and fiat insurance
• Cons: Fees on the higher end; gated access to features.

Coinbase (US)

To no one’s surprise, the top exchanges make the list thanks to their security. Coinbase, for instance, operates in multitudes of jurisdictions and is licensed to operate in most of them, including the US. There, it is licensed as a money transmitter, plus also holds a BitLicense from the New York Department of Financial Services.

Coinbase takes user data security seriously, encrypting it with AES-256, like the banks do, and 2FA is not just an option but mandatory. The 2% of user funds that it holds in hot storage, rather than the remaining 98% in cold wallets, is secured by multi-party computation (MPC). As one of the largest exchanges, Coinbase has been the target of cyber attacks but no known ones have resulted in loss of user funds. Even if that happens, it is likely that the damage will be compensated from the dedicated company fund.

Pros and Cons:

• Pros: Highly regulated, globally accessible. Strong, transparent security posture with a large percentage of funds in cold storage.
• Cons: Fees higher than competitors’, especially for standard users.

Binance (Hong Kong)

Another top cryptocurrency exchange, Binance, deserves the spot for its security measures as well. Truth be told, it is to be expected of the platform with the most users worldwide.

Long-time crypto users might feel skeptical: did Binance not have a history of regulatory scrutiny? Apparently, they are learning, and now hold dozens of licenses to operate in all regions of the world.

The security measures on Binance are appropriate for the scale of operations: cold storage for user funds, 2FA, data encryption and activity monitoring. The aforementioned SAFU fund is not for show, as it has been used to reimburse $40 million lost in BTC in a 2019 hack.

Pros and Cons:

• Pros: Adequate security features, including the SAFU fund, which has a proven track record.
• Cons: History of regulatory challenges in various jurisdictions and hacking incidents.

Crypto.com (Singapore)

A well-known cryptocurrency exchange, which has grown into an ecosystem of crypto-financial products, Crypto.com operates in over 90 countries with licenses and registrations.

Their security strategy has the name “Zero trust, defence in depth”. According to them, 100% of customer funds are stored in cold wallets. Crypto.com as well has security certifications like SOC 2 Type II and the ISO 27001 certification.

To those raising their eyebrow, probably aware of the January 2022 incident, Crypto.com has implemented additional guardrails since, in addition to the measures that had been present. The exchange fully reimbursed all affected users and revamped its 2FA infrastructure, launching its Worldwide Account Protection Program (WAPP) to protect users against future unauthorized withdrawals.

Pros and Cons:

• Pros: Strong reputation, transparent security posture backed by multiple certifications. The major hack has demonstrated a strong post-incident response framework. 100% cold storage policy.
• Cons: 24-hour withdrawal delay, while a security measure, can also be inconvenient for users.

Bitstamp (Luxembourg)

The very fact that Bitstamp has been working since 2011 should be telling enough. It may not have the multitudes of features or bells and whistles of other platforms but its reputation and reliability is deserved. With its Luxembourg license, it’s regulated in the EU and everywhere else, it complies with local regulations.

Even in the early days, when compensation was not standard, Bitstamp has managed to reimburse victims of a major security incident that led to damages of about $5 million in BTC at the time. These days, they insure users’ assets with the custodian BitGo, and keep only 2% in multi-sig hot wallets.

Pros and Cons:

• Pros: Long-standing history of reliability and excellent reputation. Despite a history of incidents, the track record proves efficient handling.
• Cons: History of hacking. Higher fees for spot trading than on alternatives.

The Alternative — Go Non-Custodial

Almost all of the security concerns that users have about exchanges are connected with the fact that they hold user funds in their custody. On top of it, the user identification procedures collect extensive and sensitive personal information, so data security is also an issue. The centralized exchange model is not the only one, and there are alternatives that address these concerns exactly.

Instant swap platforms like ChangeHero do not have user accounts in the first place. Since there are no user deposits to keep track of, you retain control over your wallets and funds in them at all times. Not to mention, since you do not need to sign up, you can swap cryptocurrencies without sharing any identifying information at all. ChangeHero and other instant exchanges are still compliant with legal regulations but KYC procedures are applied based on funds, not users.

Tips for Staying Safe Using Crypto Exchanges

Choosing even the most secure unhackable exchange is not going to make much of a difference if you fail to protect your own accounts yourself.

How to create strong passwords and protect their accounts? Why is it important to enable two-factor authentication (2FA)? How to identify and avoid phishing scams? Let’s not limit ourselves to simply stating “stay safe” and equip you with a few ideas on how to do it.

Make Your Passwords Extra Strong

Not to sound cliche but a password ideally should be at least 12 characters long and include as many varieties of characters as possible: uppercase and lowercase letters, numbers, and special characters. And there is more: password hygiene requires you to avoid reusing passwords. Memorizing and coming up with those is no small task but password managers are an invaluable tool for this. Just make sure to make a master password, the one that you will need to remember, extra strong!

Your second line of defense, in case your password is compromised, is multi-factor authentication. Most self-respecting platforms let you enable it, so do not neglect this feature. As we have said, SMS authentication may seem convenient but using an authenticator app or even a dedicated device is much more secure.

Women Want Me, Phishing Fears Me

Social engineering, phishing being the most common example, are a primary reason users fall victim to scammers, and not just in crypto. The term encompasses any attacks that trick you into providing critical info or granting access with interfaces or messages that look just like the legitimate thing. Phishing can also be thought of as a kind of impersonation, since attackers imitate legitimate entities to gain your trust.

Now that you know or remember what phishing is, how do you train an eye for it? Phishing emails or websites have key red flags such as mismatched URLs, poor grammar or spelling, and the use of a public email domain instead of a corporate one. An immediate sign of a scam is a demand for payment in crypto (where not appropriate, at least) or a promise of guaranteed returns or free money. It wouldn’t hurt to be skeptical of unsolicited contact and verify all requests by visiting a company’s official website directly rather than clicking on a link in an email.

Beyond these measures, users should also consider the power of self-custody. The principle of “not your keys, not your coins” is an important concept in the crypto world. While centralized exchanges offer convenience, they are a custodial model, meaning they hold private keys and exercise full control over the funds. For long-term storage of significant assets, a hardware wallet, which keeps private keys offline, provides the ultimate level of control and security from online threats.

Final Thoughts

Crypto exchanges these days can offer a level of security that not every user is able to maintain with self-custody. However, due to the way crypto works, the assumption of trust is an inherent risk of centralized exchanges, no matter how much they want to alleviate it with practices from traditional finance. Going self-custodial and using non-custodial services helps to not run into this risk at all.

It wouldn’t be much of an exaggeration to say that virtually anyone familiar with crypto these days knows about Binance and Coinbase, and for a good reason. However, by choosing to go for the big ones, you might miss out on things like better fees or more privacy. So, let us go over a few platforms that are not as well known but definitely deserving of a spotlight for one reason or another.

What is a Crypto Exchange?

As you might know, crypto exchange is basically any digital marketplace where users can buy, sell, and trade cryptocurrencies. Without them, decentralized digital assets wouldn’t have had the necessary liquidity for transactions and economic activity, such as price discovery. For most of us, they are the primary gateway into the world of decentralized finance.

Major Types of Crypto Exchanges

Not all platforms where you trade coins are the same. When it comes to exchanges and not just marketplaces, there are a couple of main types:

• Centralized Exchanges (CEX): platforms operated by a single company or entity. They act as a custodian, holding user funds in “hot” and “cold” wallets. CEXs are known for their user-friendly interfaces, high liquidity, and fast transaction speeds. However, users must trust the platform to secure their funds, and these exchanges often require a Know Your Customer (KYC) verification process.
• Decentralized Exchanges (DEX): they allow users to trade directly from their personal wallets without an intermediary, using only the blockchain. This non-custodial model means users retain full control of their private keys and assets. DEXs are valued for their censorship resistance and privacy, as they typically do not require KYC. However, they can sometimes be less liquid, have a more complex user experience, and may be subject to high network fees, especially on the Ethereum network.
• Hybrid Exchanges: These platforms attempt to combine the best of both worlds, offering the speed and liquidity of a CEX with some of the non-custodial benefits of a DEX.

Best Crypto Exchanges beyond the Mainstream Options

Exchanges like Coinbase and Binance dominate the market and scarcely need any introduction. In this article, we want to focus on several other platforms that offer unique advantages.

CoinEx

CoinEx is a global cryptocurrency exchange that emphasizes a broad range of supported cryptocurrencies and an automated market-making (AMM) function. It’s designed to be a comprehensive trading platform for a diverse user base, solidified in the choice of over 60 local fiat currencies and support of multiple languages.

Pros:

• Wide variety of cryptocurrencies and local currencies.
• AMM functionality allows users to earn income by providing liquidity.
• Supports multiple trading services, including spot, margin, and futures.

Cons:

• Less liquidity for minor trading pairs compared to top-tier exchanges.
• Interfaces can feel overwhelming for complete beginners.

CoinEx Fees and Trading Options:

CoinEx users can engage in standard spot trading for over 1,300 cryptocurrencies. The platform also provides margin trading and futures markets with up to 100x leverage for more advanced users. The fee structure is a pretty standard maker-taker model, with fees decreasing as trading volume increases. Additionally, CoinEx offers a P2P trading option with zero fees, as is quite often the case for CEXs today.

MEXC

MEXC has carved out a niche for itself as a platform for “altcoin hunters” and leverage traders. It offers a staggering number of trading pairs, often listing new and emerging tokens ahead of many other exchanges.

Pros:

• Extremely wide selection of altcoins.
• Supports high leverage trading (up to 500x).
• Competitive fee structure, including a 0.00% maker fee on certain spot trading pairs.

Cons:

• Limited liquidity for some of the more obscure tokens.
• The large number of options can be intimidating for new users.

Uniswap

Anticipating the question: yes, Uniswap is far from obscure and underrated. In fact, when it comes to DEXs, it is one of the leaders. The point of inclusion is to highlight trading on decentralized exchange as an option some users overlook in favor of trading on a CEX. For swapping ERC-20 tokens directly from a wallet, Uniswap and its counterparts may provide a better experience overall.

Pros:

• Non-custodial, giving users full control of their funds.
• No KYC or AML requirements.
• Allows users to earn on their holdings by providing liquidity to pools.

Cons:

• Can be subject to chunky gas fees, especially on the Ethereum network during high congestion.
• Swaps are limited to one chain.

Robosats

Robosats is a unique peer-to-peer (P2P) exchange that focuses on privacy and simplicity, as the name implies, built on the Bitcoin and Lightning networks. It’s designed for users who want to trade Bitcoin without a centralized intermediary, account, or KYC process.

Pros:

• Excellent for privacy-conscious users.
• No KYC or central authority.
• Leverages the speed and low fees of the Lightning Network.

Cons:

• Bitcoin trading only.
• Liquidity can be lower than on large centralized exchanges.
• Counterparty risks.

ChangeHero

ChangeHero is an instant, non-custodial crypto swap service that prioritizes user experience and speed. It aggregates rates from multiple exchanges to find the best price for your swap, without the need for registration.

Pros:

• Instant swaps with no registration required.
• Non-custodial, so you retain control of your funds.
• Aggregates rates from different exchanges to provide a competitive price.

Cons:

• No advanced trading features.
• KYC may be required for some transactions flagged by its automated system.

Exolix

Similar to ChangeHero, Exolix is an instant, non-custodial exchange service. It boasts a wide selection of over 1,600 cryptocurrencies and prides itself on having no maximum limits on swaps.

Pros:

• No registration or KYC required.
• No maximum limits on exchanges.
• Supports a vast number of cryptocurrencies.

Cons:

• Like other instant swap services, it may not be the most cost-effective for high-volume trading.
• Lacks the advanced tools and features of a full-fledged exchange.

Bisq

Bisq is a unique, fully decentralized P2P exchange network that puts privacy and censorship resistance at its core. The desktop application allows users to trade Bitcoin and other cryptocurrencies directly with each other without any central authority.

Pros:

• Utmost privacy and censorship resistance.
• No central server, KYC, or account registration.
• Deposits are held in a 2-of-2 multisig wallet to ensure safe trades.

Cons:

• Steep learning curve and low user-friendliness.
• Trades are dependent on finding a counterparty.

Want to Keep Looking? Here are the Criteria

Ranging from a few less-known but reputable CEXs to super-privacy-conscious P2P marketplaces, our highlights should satisfy plenty of trading styles and user demands. Plenty but not all! What if you wanted to do your own research and further consider your trading style, risk tolerance, and goals? Let us offer a little more advice to make sure you can compile a shortlist of your own.

Naturally, Security

Any exchange worth its dime should employ robust measures to protect user funds and data. Look for platforms that use 2FA (Two-Factor Authentication), store the majority of funds in cold storage (offline wallets), and have a clear track record with no major past security breaches (or ones they handled gracefully). Some exchanges also offer insurance to protect against a hack, although you should expect that from sticklers to regulation. KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance, while a privacy trade-off, are also indicators of a regulated and more secure platform.

Obviously, Fees

Fees can significantly impact your profitability, especially for frequent traders. Be sure to understand the different types of fees the exchange charges:

• Trading Fees: Often based on a maker/taker model, where the “maker” (the one who adds liquidity by placing a limit order) pays a lower fee than the “taker” (the one who removes liquidity by placing a market order).
• Withdrawal Fees: Charged when you transfer cryptocurrency out of your account.
• Deposit Fees: Some platforms may charge a fee for depositing fiat or crypto.
• Tiered Fee Structure: Many exchanges discount fees for users with higher trading volumes.

Perhaps, Cryptocurrency Selection

If you’re a long-term investor interested only in major assets like Bitcoin and Ethereum, a platform with a limited selection might be fine. However, if you want to explore new and emerging altcoins, a platform like MEXC with a wide range of listings will be more suitable.

Preferably, User Interface

A good user interface (UI) and user experience (UX) can make a world of difference. An ideal platform should be intuitive and easy to navigate. For beginners, a simple, clean interface of a swap platform is probably the best. Advanced traders, however, may prefer an exchange with a comprehensive dashboard, including charting tools, order books, and advanced order types.

Payment Methods

The convenience of depositing and withdrawing funds is a crucial factor if you are dealing with it. Check what fiat currencies are supported and what payment options are available, such as credit card, bank transfer, or PayPal. Some methods may have higher fees or slower processing times than others, so do take some time to navigate this balance.

Customer Support

When something goes wrong, you want to know you can get help. Look for exchanges with responsive and helpful customer support. User reviews are usually a good method to get the idea, and you can always try contacting them yourself. Check if they offer a live chat, email support, or a detailed FAQ section. A platform with a reputation for poor support can be a major red flag.

Compliance

Regulatory compliance is becoming an increasingly important factor for choosing what part of the crypto space you engage with. Exchanges that adhere to local and international regulations often provide a higher level of security and consumer protection, if you prefer the traditional finance path. Look for platforms that are licensed in their jurisdiction and comply with relevant laws.

Conclusion

Mainstream exchange platforms generally offer a reliable entry point but the exchanges we’ve highlighted are compelling alternatives with a focus on specific needs, whether that’s privacy, altcoin variety, or a non-custodial experience. The right choice for you depends entirely on your priorities. By considering factors like security, fees, and user experience, you can find a platform that aligns with your individual trading strategy.

1. Calm down, you need a cool mind to manage money.
2. Always hold and stake crypto in different places (exchanges, wallets) to prevent hacking one of them.
3. Never hold all of your coins on CEX exchanges, as they control your account and can ban it or go bankrupt at any time. Use non-custodial services instead.
4. Write down 12 words, save them offline & don’t lose! NEVER share them with anyone!
5. Put what you can afford to lose. Always have a financial “airbag” in cash.

Don’t miss these altcoins with good fundamentals, that will gain biggest profits

Holding Bitcoin and Ethereum is a great idea for a long-term portfolio, but there are altcoins that can overperform them and give a higher profit! We have analyzed and chosen digital assets with good fundamental that can skyrocket this year. 👇

24/7 Crypto News | ChangeHero

Binance Coin (BNB)

The native crypto of the Binance ecosystem is used to pay transaction fees on the platform. Its value has increased significantly in recent years due to the platform’s growing popularity. Binance continues expanding, that’s why BNB is a good choice for 2023.

Litecoin (LTC)

The coin is an alternative to #Bitcoin and has impressive low fees, what makes it a perfect instrument for everyday payments. Also, some investors expect LTC to skyrocket after halving expected to occur on August 2, 2023.

Flow (FLOW)

Flow is designed to support Web3 apps. It has announced a partnership with Google Cloud to accelerate Web3 startup growth. Collab with a tech leader will positively impact its price. Also, Flow officially passed 20 million accounts on its network.

Maker (MKR)

This leading lending protocol on #Ethereum has shared great updates: starting with the launch of Spark Protocol which will allow Spark Lend, a Maker-based platform, for users to borrow crypto. Also, they partner with Coinbase, that now supports Maker Governance.

Uniswap (UNI)

Uniswap is a popular decentralized crypto exchange. Its native UNI token will show growth this year, as crypto investors are looking for decentralized alternatives like Uniswap, as centralized exchanges are under increased scrutiny after the FTX crash.

Mina Protocol (MINA)

Mina Protocol is one of the most lightweight blockchains. It has implemented zero-knowledge technology (zkp), that likely to become an important crypto trend. Experts conclude Mina could be one of the projects that will benefit from this update.

Chainlink (LINK)

This decentralized oracle network connects smart contracts to real-world data. With the increasing use of smart contracts in various industries, Chainlink’s technology could become an essential infrastructure for Dapps.

Original post on Telegram.

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