Best Licensed Crypto Exchanges in Europe 2024

With the emergence of Bitcoin in 2009, there was a real explosion in the market of financial instruments. Every year new coins appeared and in 2013 there were already 50 of them, and by the end of 2014 more than 500. Today the world of virtual currencies is huge, their number is more than 13 thousand, 420 million users use coins and more than 18 000 companies accept this type of payment for goods or services. The market is huge and is estimated at $2.21 trillion.

The new Liberty Standard can be called the first exchange or service that was used to exchange Bitcoin for U.S. dollars. Now there are more than 1500 crypto exchanges. Crypto exchanges are platforms that provide users with tools to exchange (buy/sell) digital coins. Crypto exchanges are centralized (managed by companies) and decentralized (do not store customer funds, use smart contracts). Some exchanges offer transactions with only the largest altcoins, while others provide a choice of 2,500 coins. Each trading platform has its peculiarities, but when choosing, it is especially important to consider whether there is a crypto license issued by the Market Regulators.

The Markets in Crypto-Assets Regulation MiCA (The Markets in Crypto-Assets Regulation) of June 2023 is very strict throughout the EU and was designed to: regulate market activity, ensure the safety and protection of investors, ensure that service providers meet technical standards, ensure that all participants pass AML/KYC procedures and generally maintain the integrity and efficiency of the market. Non-compliance leads to severe penalties ranging from multi-million dollar fines, license revocation, and loss of reputation to jail time.

The best crypto exchange in Europe with an approved license provides the best experience with the platform and guarantees the safety of your funds and protection from unscrupulous actions and hacking.

Crypto Exchanges and how to use them

Cryptocurrency exchanges are similar in principle to traditional stock exchanges. Users can use different trading instruments (futures, options), leverage, and sell/buy not only virtual currencies but also NFT. Crypto trading is also available via cell phone, which makes it easier to enter the market.

Cryptocurrency exchanges earn either from transaction fees or transaction volume. Trading platforms have now become the fastest way for a user to get the coveted coin, as mining is now a very resource-intensive and long process.

There are several factors to consider when choosing a crypto exchange in Europe:

• Whether permits/licenses have been obtained. It is important to check the registration of the exchange with Regulators registries like the UK’s Financial Conduct Authority (FCA), Estonia’s Financial Inspection Unit FIU, Bulgaria’s National Revenue Agency (NRA), and BaFin in Germany td.
• Is there a choice of assets, the more options for trading, the better (not only the major BTC, ETC but also new altcoins should be represented). Usually, there are about 200 options available on exchanges on average. It is also worth analyzing trading volumes, and market share.
• Ease of use, passing verification, conducting transactions, navigation, availability of support service, developed mobile application.
• The size of commissions, with which it is better to familiarize yourself before bidding. If fees are for withdrawal, transfer of funds to the wallet.
• Reputation in the market, whether there were violations, hacking, or litigation. Was there an audit of the activity and its results? Check the mention in the news.
• Security, availability of two-factor user verification, cold storage, and types of encryption protocols.

Legal and Easy Way to Buy Crypto in Europe

In 2023, the crypto market was growing and some coins showed significant numbers: Bonk (BONK) grew by 7300%, CorgiAI (CORGIAI) by 1959.7%, Bitcoin by 162%, and Solana by 973%. Many people invested and made profits.

Buying crypto coins is done in a few steps:

• Step 1. Choose a reliable European exchange from the list of regulated exchanges and what is the best crypto exchange.
• Step 2. Go through the registration process and create a user account.
• Step 3. Fund your account with fiat or cryptocurrencies (remember about possible restrictions in transactions of European banks).
• Step 4. Select the required crypto coin and the amount you want to purchase from the list.
• Step 5. Confirm the transaction and check your wallet balance.

Trading digital currency in European countries is legal and must comply with MiCA. According to MiCA, crypto-coins are divided into several categories: e-money, asset-backed crypto-tokens, and others.

In some countries, such as Germany, virtual currencies are recognized as equivalent to foreign currency. Citizens of this country have the legal right to use and trade cryptocurrencies. Spain is developing tax legislation taking into account the use of digital currencies. European legislation is adjusting to the demands of the innovative market and seeks to protect users.

Various Crypto Exchanges in Europe 2024

There are categories of exchanges: centralized, decentralized, and hybrid. Centralized exchanges (CEX) are the main holders of virtual coins that are stored in offline wallets. Unfortunately, this attracts hackers to break into the servers to get their hands on the funds. The advantages include low commissions, and the ability to recover funds. At the same time decentralized exchanges (DEX), which do not have a controlled body, customers are responsible for the storage of their coins and keys, but their disadvantages are low liquidity and high commissions. A hybrid exchange is a mixture of CEX and DEX, where the privacy of DEX and ease of use like CEX is provided.

eToro

If the cryptocurrency platform compares, then eToro is the leader of the crypto market. eToro started its work in 2007 in Tel Aviv, now it is considered better for beginners. eToro is controlled by one of the strictest regulators of the market – the Financial Conduct Authority (FCA) of the UK, which guarantees the safety of the platform. Also authorized by: DASP in France, MFSA in Malta, and CASP Register in the EU.

Bybit

By Bit is among the top-rated crypto exchanges, although it was founded only in 2018. ByBit has over 30 million users and an average daily turnover of $25 bn.

Binance

Binance is the most popular crypto exchange with high trading volume started its operation in 2017.

Kraken

With cryptocurrency exchange comparison Kraken is one of the largest platforms with a good selection of cryptocurrencies. It was founded in the United States back in 2011.

Coinbase

Coinbase started in 2012 has 79 million users and is available for mobile devices.

OKX

OKX started in 2013 and quickly captured the market with its security system, and large selection of crypto coins.

Uphold

Uphold is one of the popular exchanges in Europe with a good selection of coins for trading. It has been operating since 2014 and already has more than 10 million members.

Summary

Choosing the best European exchange for trading is quite a complicated process as each of them strives to offer its users a good selection of coins like OKX, some even precious metals like Uphold, optimal commissions like Kraken, and user-friendly applications like eToro. If a trader needs to have the newest coins in his portfolio, it is better to pay attention to Binance, but if a newcomer enters the market and it is still difficult to navigate the interface and graphics, then Coinbase will be an excellent choice. It is also worth paying attention to the reliability of the system, security methods, and methods of storing currencies.

For each trader, a certain factor is crucial according to his or her goal, but all of the above crypto platforms must have licenses from reliable, trustworthy Regulators in Europe.