Best Altcoin Exchanges for 2024

Cryptocurrency investors have more choices than ever about where to buy, sell, and store their assets. The best altcoin exchanges combine low fees with strong security and a wide range of cryptocurrencies. Some altcoin exchanges offer additional features such as ways to earn interest on your crypto. In this article, we'll look at what exactly an altcoin exchange is, how to pick the best cryptocurrency platform, and whether altcoins are safe. If you're looking for the best altcoin exchange for you, you're in the right place.

Altcoins are any cryptocurrency apart from Bitcoin (BTC). Bitcoin was the first-ever digital currency, and thousands of other coins and tokens followed in its wake. The name comes from combining the words "alternative" and "coin." It refers to any crypto that is an alternative to the market leader. These cryptos include everything from smart contract–giant Ethereum (ETH) to meme tokens like Dogecoin (DOGE).

READ MORE: What Are Altcoins?

In the early days of crypto, many Bitcoin alternatives attempted to improve upon Bitcoin's functionality as a form of payment. As the cryptocurrency industry evolved, altcoins began to use blockchain technology to solve other problems. Now there are many different types of cryptocurrencies. For example, VeChain (VET) addresses supply chain management, and decentralized finance cryptos could transform the financial services industry.

An altcoin exchange is a platform where you can buy, sell, and trade a range of cryptocurrencies. A couple of crypto platforms only trade Bitcoin, but the majority are altcoin exchanges as they list other cryptos as well. You can access altcoin exchanges using a computer browser, a top cryptocurrency app, or directly from a crypto wallet. Cryptocurrency platforms include exchanges that only trade digital assets as well as traditional stockbrokers that also offer crypto products.

READ MORE: Best Places to Buy Bitcoin

There are several factors, including fees, security, and the range of cryptos, to take into account when choosing the best altcoin exchange. No altcoin exchange will be perfect for every investor, but here are some things to consider when deciding what's right for you.

• Fees: Deposit, trading, and withdrawal fees can all eat into your profits. It's good to understand a platform's fee structure before you begin investing.
• Security: There've been a number of high-profile hacks of cryptocurrency exchanges over the years. Look for platforms that keep assets in cold storage and have strong user-level security features.
• Ease of use: Some exchanges are more intuitive and accessible than others. Don't be afraid to experiment to see which interface suits you.
• Range of available cryptos: If you only want to buy one or two altcoins, check that these are listed on the platform you sign up with. More experienced investors might want to branch out into smaller cryptos and will want a crypto exchange with a lot of options.
• Know your customer (KYC) screening: Many centralized crypto platforms ask users to provide personal information, including a photo ID. Some investors feel these measures intrude on their privacy, but it also helps avoid money laundering.
• Crypto wallet functionality: Many centralized exchanges let you leave your crypto on the platform in what's called a custodial wallet. However, a lot of investors prefer to move their assets to an external crypto wallet that they control. If this is something you might want to do, look for platforms with this functionality.
• Interest-earning ability: There are several ways that investors can earn passive income, and these vary from platform to platform. One popular route is crypto staking, where holders of certain cryptos can earn rewards if they tie up their assets for a set period of time.
• Advanced tools: Experienced traders have different needs than someone who's new to crypto. Some exchanges have a pro platform with charts and additional functionality alongside their basic one.

Broadly speaking, altcoin exchanges charge three types of fees: deposit, trading, and withdrawal. It's worth researching all three for each exchange platform. Some might offer low fees on deposits and trading but then charge you a high withdrawal fee. Here's a look at each one.

Deposit fees

Deposit fees vary depending on your payment method. It's usually free to use a bank transfer to deposit money. Some altcoin exchanges accept credit or debit card payments, as well as PayPal and other methods. However these methods can cost as much as 5%. Credit card deposits may also incur additional fees from the card issuer.

Trading fees

It isn't always easy to see exactly how much you're paying in trading fees. Fees typically range from 0.1% to 0.5%, and sometimes more. Some exchanges promise zero-commission crypto trading, but hide the costs in poor exchange rates. You can often get discounts on the trading fee if you're a high-volume trader or you use the platform's native currency.

Withdrawal fees

There's usually a percentage fee to withdraw fiat currency (traditional money) to your bank account. The cost of crypto withdrawals depends on the cryptocurrency. For example, Ethereum withdrawals are often a lot more expensive than other blockchains. Some exchanges provide a limited number of free monthly withdrawals.

READ MORE: Best Places to Buy Ethereum

The exchanges with the most altcoins are decentralized exchanges (DEXs). A decentralized exchange is a peer-to-peer cryptocurrency marketplace, which means investors can buy and sell crypto assets without an intermediary. In contrast, on a centralized exchange, there's a third party involved in the transaction.

There are over 19,000 cryptos out there, but you'll only find a fraction (between around 50 and 200) of them on most centralized platforms. Centralized exchanges usually have policies about which altcoins to list. As a result, some cryptocurrency exchanges offer older cryptos like Bitcoin Cash (BCH) or Litecoin (LTC), but may not list relative newcomers like Avalanche (AVAX) or Solana (SOL).

There are several risks involved in using altcoin exchanges. Centralized cryptocurrency exchanges have been targeted by hackers in the past and they continue to be at risk. Look for platforms that keep the majority of assets offline in cold storage. This lessens the risk of hackers stealing your funds. The best crypto exchange is one that is transparent about its security measures and offers additional features, such as third-party insurance.

In addition, investors need to be vigilant about phishing attacks. These happen when scammers pose as legitimate players and attempt to trick you into sharking personal data. Watch out for suspicious emails or spoof websites, especially if they're urging you to act quickly. If in doubt, contact the company directly through a different avenue.

Altcoin investing also carries more risk than sticking with Bitcoin. Investors take the risk because of the potential for high rewards, but there is a lot we don't know about how the cryptocurrency industry will evolve. Bitcoin has the longest track record and is the most likely to survive a prolonged market crash.

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