Cryptocurrency Exchange Rates: The Top 5 Exchanges for Accurate Prices

Cryptocurrency Exchange Rates: The Top 5 Exchanges for Accurate Prices

If you are new to buying Bitcoin, you might be somewhat confused as to why the price of Bitcoin varies depending on the exchange you use. Contrary to what some may think, it’s not a case of a particular exchange attempting to short-change you, which shouldn’t happen if your chosen platform is one of the top exchanges in the world. However, there are many reasons why different Bitcoin exchanges trade at slightly different price points, and we’re going to explain why.

Liquidity

Generally, the larger the exchange, the better the trading volume. This is known as liquidity. If a Bitcoin exchange is considered highly liquid, the price is more likely to be at an accurate or ‘true’ level given the greater amount of data available to traders.

It’s not easy to put a price on Bitcoin

Given that there is not a common way to price Bitcoin, there is no set price for the cryptocurrency. Therefore, its value is determined simply by what investors are willing to pay for it on the top exchanges online and offline.  With that in mind, the top cryptocurrency exchanges that tend to offer the most accurate price of Bitcoin are those that have the highest daily traded volumes. Unsurprisingly, these are generally the larger exchanges, where buying and selling activity is flowing through the market continuously. If you want an accurate exchange where you can buy your first Bitcoin with confidence, check out these five platforms:

Coinbase

One of the longest-serving cryptocurrency exchanges, the Coinbase service has been operating since 2012 and is backed by a number of leading venture capital firms and banks. With a daily trading volume on Bitcoin of over $40 million, it’s a reliable place to get good value on Bitcoin, as you can read in our Coinbase review.

Bitstamp

Bitstamp is widely considered the third largest Bitcoin exchange in the world based on volume, with more than $30 million worth of Bitcoin traded daily. It’s therefore a good choice for an up-to-the-minute Bitcoin price.

Kraken

A top cryptocurrency exchange among European crypto investors, Kraken boasts the largest volume for the BTC-EUR trading pair. It’s therefore the most accurate place for European Bitcoin traders, as the volume for USD is not quite as strong.

Bitfinex

With over $45 million traded daily on Bitcoin at Bitfinex, it is certainly a top exchange – one to be reckoned with. Like Coinbase, this has been established since 2012 and its market makers generally have a good handle on the latest Bitcoin value.

eToro

​Of course, a final alternative would be to become a member of eToro’s social trading community. It allows you to trade cryptocurrency such as Bitcoin as a Contract for Difference (CFDs), meaning you never physically own the Bitcoin and simply trade its price action. eToro sets its own value on Bitcoin but as it is well-regulated by the UK’s Financial Conduct Authority (FCA) and CySEC, it is generally one of the most accurate gauges of Bitcoin’s price. If you’d like to find out more about how that takes place, read our in-depth eToro review today.

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