Top 8 Best Altcoin Exchanges in 2023 - Crypto Trading Platforms | Compare & Choose

Salomon Kisters

May 11, 2023

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Altcoin is a catch-all term for any cryptocurrency that is not Bitcoin. While Bitcoin (aka money of the internet) has profoundly impacted how we perceive and use currency today, many other cryptocurrencies have emerged since its inception. Over the past few years, the cryptocurrency industry has expanded quickly, and many other digital currencies other than Bitcoin have gained importance.

With more people looking to invest in this innovative financial system, many crypto exchanges now offer trading in altcoins. Stick around if you are interested in learning about these altcoin exchanges. This article will define altcoins, compare them to bitcoin, and most importantly, list several well-known altcoin exchanges.

What are Altcoins?

The term “Altcoin”, which stands for “alternative coin”, refers to all cryptocurrencies besides Bitcoin (note: some sources include Ethereum in the exclusion criteria as well). They show a varying degree of resemblance to Bitcoin. Still, one thing they all have in common is that they are all a part of a system called DeFi (decentralized finance).

Why are Altcoins Becoming Popular? Is Bitcoin Not Enough?

Due to the limitation on the number of transactions that the Bitcoin blockchain network can support and process, many people have switched to altcoins for their day-to-day transactions while keeping Bitcoin as a stable reservoir for their crypto funds. Because a single Bitcoin block can only be 1 megabyte (MB) in size, it takes a long time for miners to verify even a single transaction.

If you want to learn more about why Bitcoin transactions take this long, please check out this blog post.

What are Altcoin Exchanges?

Altcoin exchanges are cryptocurrency exchanges that allow users to buy and sell alternative cryptocurrencies (altcoins) other than Bitcoin. Altcoin exchanges are similar to traditional stock exchanges, where buyers and sellers can meet to trade cryptocurrencies.

Traditional Exchanges

A traditional exchange is a marketplace or platform where financial assets, such as stocks, bonds, commodities, or currencies, are bought and sold. A third-party organization typically operates these exchanges, hence, facilitating transactions between buyers and sellers and providing various tools and services to help participants manage their investments.

One thing to remember here is that these exchanges follow an exchange rate that keeps shifting daily, depending on the circulation and demand of any particular financial instrument, like the US Dollar. The exchange rate determines the worth of each asset/currency traded on the platform.

The traditional exchange functions as trading a hub for various types of financial assets. It allows users to convert one form of a financial instrument into another, like buying USD for Euros or selling their bonds for USD.

So, What is a Crypto Exchange?

A crypto exchange is a marketplace for people who wish to exchange their cryptocurrencies and digital assets for fiat or other cryptocurrencies. It functions just like an exchange platform; only this time, the users are predominantly dealing in cryptocurrencies.

Initially, crypto exchanges primarily focused on converting Bitcoin into fiat currencies such as USD or Euro, or vice versa. Since Bitcoin has always been the predominant cryptocurrency, countless exchanges provide services to trade Bitcoin. However, as discussed earlier, many altcoins are also gaining popularity and are actively traded on these platforms.

How is a Crypto Exchange Different from a Traditional Exchange?

Traditional exchanges focus more on commodities, bonds, and shares, while crypto exchanges specialize in trading cryptocurrencies. Since traditional exchanges deal with the currencies governments control, they are closely regulated and monitored.

It is also worth mentioning that traditional exchanges only provide their services during office hours, i.e., 9 am to 4 pm. On the other hand, crypto exchanges work online and are available at your service 24/7. Furthermore, unlike traditional exchanges, transaction fees in crypto exchanges can vary due to the way transactions work over the blockchain network.

Overall, traditional exchanges and crypto exchanges have different attributes, opportunities, and risks. One must, therefore, thoroughly evaluate one’s investment plan before putting down their money in either exchanges.

Top 8 Best Altcoin Exchanges in 2023

Here are some of the well-known and popular cryptocurrency exchanges that support Altcoins.

1. Coinbase

Coinbase is one of the most accessible, user-friendly, and large cryptocurrency exchanges available to cryptocurrency users today. It is the ideal platform for novice investors and beginners because it provides a variety of features required by crypto users in a simple layout. Coinbase offers a crypto wallet, a smartphone app, merchant services, educational articles, and a trading platform.

The platform is well-known for its user-friendly interface and robust security features. It was also one of the first marketplaces to be regulated in the United States. The exchange supports a wide range of Altcoins, including Dogecoin, Litecoin, Ethereum, and Solana, to name a few. Moreover, the platform features high liquidity, which means there will always be someone willing to trade assets, hence, significantly decreasing research and transaction time.

Credit cards, PayPal, and debit cards are among the payment methods accepted by the platform. Check out this Coinbase review to find out more information about features, pricing and user experience.

2. Coinbase Pro

Coinbase Pro is just an extension of the previously discussed Coinbase platform. However, it is much more complex than Coinbase and is designed for more advanced crypto traders.

If you have had your fair share of crypto trading experience, you might prefer this exchange as it provides users with advanced charting tools, real-time market insights, and the ability to place limit and stop orders — all of which are features desired by experienced crypto users.

Coinbase also supports a greater number of cryptocurrencies, thus, providing its users with more choices. If you wish to invest in cryptocurrencies that are not supported on the regular Coinbase Exchange, then perhaps this advanced version is right for you.

3. Kraken

Kraken is one of the leading crypto exchange platforms, with over 9 million clients, supported in more than 190 countries, and a quarterly trading volume of $206 bn. It is a well-known and respected cryptocurrency exchange that hosts various currencies and provides a variety of tools for traders of all experience levels.

Perhaps its most striking features are those revolving around trading. Although it could take some time for you to understand how these tools work, it’s important to note that the outcomes are worthwhile. They include margin trading, stop-loss orders, limit orders, market orders, and trailing stops. You can find more information about Kraken here.

4. Gemini

If you’re concerned about the security of your cryptocurrency funds, then Gemini is the best option available. The platform’s one point of differentiation is its emphasis on safety and regulatory compliance. Gemini’s security layers include MFA, offline storage of funds, and regular security audits. Even then, despite all the multiple layers of protection, it is still very user-friendly.

Furthermore, Gemini offers users additional products and services, including “Gemini Earn”, which allows users to get credit via interest rates on their deposited currency. The Gemini Exchange is known for being simple and straightforward, making it ideal for beginners and those just starting on their journey in the crypto world.

5. Binance US

The parent company for Binance US is Binance. Binance had to close and reopen in the US with a modified version due to more stringent regulations over cryptocurrencies in the country. Binance US complies with US standards and laws regarding cryptocurrency exchanges, such as KYC (Know-Your-Customer) and AML (Anti-Money Laundering).

Binance US offers a wide range of cryptocurrencies for trading, and lightning-fast transactions thanks to its high level of liquidity and connection to its much larger parent company, Binance, as well as multi-layered and highly robust security walls.

The most striking feature, however, is its ability to provide users with much cheaper transaction fees compared to other popular exchanges. If you are paying too much in transaction fees and want to try something else for a change, Binance US might just work for you.

6. eToro

eToro is a social trading and multi-asset brokerage platform that allows users to invest in various financial markets such as stocks, ETFs, fiat currencies, and cryptocurrencies. One of the key features of the eToro platform is its social trading aspect, which enables users to view and copy the trading strategies of other successful traders on the platform. eToro also provides a user-friendly interface and a wide range of educational resources to help users learn about investing and trading.

eToro offers standard services including a mobile application, educational blogs, cryptocurrency wallet, etc. However, what makes it truly stand out in the market is its unique feature “social trading functionality”. This option allows eToro’s registrants to connect to and track other people’s activity on the network. It allows them to learn from the decision-making process of others, thereby, aiding users in improving their overall investing skills. It also means that novice users could imitate or learn from other expert investors’ trades, making profits with the help of their more experienced colleagues.

Aside from these benefits, eToro provides stop-loss orders, take-profit orders, and other risk-managing tools to handle their investments. For investors looking for a safe, low-risk, and reliable experience in the relatively volatile market of altcoins, eToro is the exchange of choice.

7. Bitstamp

One of the handful of crypto exchanges with no history of fraud or hacks, Bitstamp is one of the most trusted exchanges you can find on the Internet. Popular for its highly secure network and system, it offers users many vital services, including trading tools, charts, and real-time market data, among many others.

Many cryptocurrency investors are drawn to Bistamp by the low transaction fees offered by the exchange. If you regularly buy and sell crypto, Bistamp provides just the trading flexibility you are looking for.

8. Bitfinex

The last exchange that made it to our list today is Bitfinex. Bitfinex comes with almost all features offered by major crypto exchanges today, like security, high liquidity, support for various currencies, and much more. What stands out in this exchange are the tools available for users to enhance their trading experience.

Users can take advantage of margin trading, which means they can borrow funds from the exchange to increase their purchasing power. Moreover, users also have API access, meaning they can create bots for a customized trading experience and improve the efficiency and output of their investments.

Conclusion

Altcoins have become a force to reckon with in decentralized finance.

With their innovative features such as smart contracts, NFTs, decentralized peer-to-peer payments, and more, altcoins are increasingly being traded on crypto exchanges as an alternative way of investing in cryptocurrencies.

Nevertheless, deciding on a cryptocurrency exchange to purchase or sell altcoins can be challenging, especially for novice investors.

We hope this post will help you choose an exchange that suits your needs and requiremen

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