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How does Coinerro work?
If you want to buy cryptocurency and are thinking how to do this, we can help you make an informed choice. We rank cryptocurrency exchanges by price and security, so you can decide what to prioritize when purchasing cryptocurrency. In addition we provide information about the exchanges' fees and user verification processes.
No, the service is free for everyone. In addition if you go to a cryptocurrency exchange directly from our website, you can earn special bonuses if you register and start trading. Look for the yellow headers over the exchange name on our listing - they contain bonus value and conditions.
Nothing at all. Feel free to browse through our cryptocurrency exchange comparisons or read up our simple explanations of how cryptocurrency and blockchain work. If you decide to register at one of the exchanges to buy some cryptocurrency you will usually need to undergo a verification process at the exchange itself. The exchanges usually require a picture of your ID, sometimes also a picture of an electricity bill, mobile phone bill or anything else that proves your home address. If you prefer to use an exchange without a verification process, Binance or ByBit are reasonable options. Both exchanges are listed and compared on our website.
Coinerro compares the best cryptocurrency exchanges for price and security. On our starting page you can choose if you want to buy or sell Bitcoin or Ethereum. To make your choice tap the requisite fields and then tap "Go to Exchanges". At this point you will see two lists of cryptocurrency exchanges. The first one ranks them according to our Security Score with the most secure ones shown on top. The second list shows the cheapest exchanges, with the best priced ones shown on top. The lists allow you to review the prices and the security exchanges. Tapping on an exchange will open a window with a more detailed description. Tapping the Security Score of an exchange will open a table explaining the rating. Tapping the red "Go to Exchange" button will redirect you to the exchange of your choice.
We rank them using two criteria: price and security. We create two seperate lists, to allow you choose the best compromise between price and security. In terms of price we show you the best price you can get, in terms of security we compare exchanges according to our proprietary security score.
We take the buy or sell price from an exchange and add to it the trading fee levied by the exchange. If you want to use regular fiat money to buy cryptocurrency, you will also have to cover the deposit fee, which many exchanges also charge. Similarly, if you want to sell crypto and withdraw fiat money, you will usually need to pay a withdrawal fee. The deposit and withdrawal fees vary by payment method so we decided not to include them in the prices we show. We have listed the deposit / withdrawal fees in the detailed information about each exchange, which you can access by tapping the exchange when looking at our comparison lists. As a rule of thumb, deposits / withdrawals by bank transfer are usually the cheapest, while deposits / withdrawals by credit card are most expensive.
To provide a balance assessment of an exchange's security we have created an index combining all important security factors - the Security Score. Our team of experts has carefully assessed the biggest cryptocurrency exchanges to provide transparency. There have been cases of exchanged being hacked and defaulting, losing all their users' money. Using the Security Score you can manage this risk and understand which exchanges are safer to use than others. The Security Score combines the following aspects on a weighted score from 0 to 10: Cybersecurity: how secure is the technology protecting the exchange from hacks, does the exchange actively manage its security, does it help protect its users? Insurance: does the exchange protect its customers' money with an insurance policy, or at the very least an internal security fund? Transparency: can the funds held by the exchange be publicly verified, does the exchange have any intransparent business relationships, is the team behind the exchange publicly known? Offline funds: what percentage of the customers' funds is kept offline by the exchange to protect it against hackers? Incident history: has the exchange been hacked in the past, were the hacking losses covered by the exchange itself or pushed to its customers? Regulation: is the exchange regulated by a reputable national regulatory body, does the exchange conduct audits, can the exchange's financial results be independently verified?
We are independent from the exchanges we compare and are transparent about our methodology. We provide you with real-time prices and objective security assessments - both positive and negative. We do not try to push you in any direction, but provide transparency for you to make your own decisions.
Currently we compare the following exchanges, in no particular order: Binance, Bitfinex, Bitflyer, Bybit, Coinbase, Coinfield, Kraken. This selection gives our users enough diversity regarding serviced markets, cryptocurrencies and functionalities while simultaneously not overloading them with options just for the sake of it.
Our goal is to provide the best balance between simplicity and completeness of information. We see many cryptocurrency websites which flood users with information and options making purchasing decisions paradoxically more difficult. We are different. We give users a range of options which is big enough to provide real diversity but small enough to make detailed understanding and reasonable choice possible. It is impossible to get a good grip on 40 cryptocurrency exchanges in a few minutes, but it is doable with 6 or 7. The same applies to cryptocurrency options - we focus on Bitcoin and Ethereum, which are the most secure due to the size of their user base. We are continously evaluating the feedback from our users and will modify the selection of exchanges and cryptocurrencies based on the voice of our customers.
When users get redirected to cryptocurrency exchanges from our website, register and start buying cryptocurrency, we get affiliate commissions. These commissions come purely from the fees usually levied by the exchange and are not passed on to the exchange's customers. The commissions we receive fall within the standard exchange affiliate programs. They influence neither the prices we show nor the Security Score we assigned to particular exchanges.
How does cryptocurrency work?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, protecting it against counterfeit or double spend. To ensure this cryptocurrency is based on blockchain technology, which is a decentralized database with a record of all transactions done between users of the cryptocurrency. There is no central bank or authority controlling a cryptocurrency. The only proof of ownership of a cryptocurrency unit is the cryptographically protected transaction history distributed all over the users' network. Cryptocurrency units can be stored within wallets, each of which has a distinct address. The algorithms within the cryptocurrency itself control its supply, rewarding miners who contribute to encryption of further transactions. This limits the cryptocurrency supply and inflation.
Blockchain is a specific type of database. The information stored in it is shared among all the users of the network and arranged in connected blocks. Once one of the blocks is filled with information, it is locked and cannot be changed. Once an operation is done in the database (e.g. a transaction in a cryptocurrency blockchain), it is broadcast all over the network and included in the currently open block. Once the block is full of data, it is locked, encrypted and its cryptographic signature secures it will not be altered in the future.
A wallet is a place where you can store cryptocurrency. Each wallet consists of a combination of an address and a public and private key. Think of it as an online bank account, where the address is the bank account number, the public key is your name and the private key is your account password. All of them are very long strings of alphanumeric characters. To make a transaction you need to make your address and public key known to others, but you should always keep your private key secret - anyone who knows it, can gain access to your wallet.
You can keep your cryptocurrency in your own wallet, or in one operated by a third party, e.g. an exchange. If you trade cryptocurrency on an exchange, it is usually kept by default in the exchange's wallet, unless you transfer it to your own. When it comes to wallets the main distinction is between online ("hot") and offline ("cold") wallets. Online wallets store your private key online, making it quicker and easier to do transactions. For offline wallets your private key is stored offline - on a hardware device or you just write it down on a piece of paper. Offline wallets basically cannot be hacked, unless the wallet owner explicitly provides the private key to some other party. Also if the wallet owner loses the piece of paper with the private key, the cryptocurrency in the wallet is lost forever. Most exchanges keep most of their customers' money in offline wallets to protect it from hackers.
The value of cryptocurrency is created by its limited supply and cryptographic protection against theft. A proper cryptocurrency should be programmed in a secure enough way to prevent its code from being hacked. It should also have a balanced mechanism of creating new coins to compensate users, who invest their time and funds to encrypt the new blocks in its blockchain. The mechanism should provide enough coins for these users to be motivated but not too much to avoid inflation and loss of value of currently held coins. The source code of a reputable cryptocurrency is usually open source. This enables indepedent verification necessary to create trust in the cryptocurrency. If its code is strong, a cryptocurrency can be more resilient than regular fiat money, as there is no central bank which can spoil its value by printing a large amount of money.
New cryptocurrency units, or coins, are generated in the process of adding new blocks to the blockchain behind the cryptocurrency. The cryptocurrency algorithms usually use two mechanisms for this: proof of work and proof of stake. Proof of work means that to generate a new block a user needs to be the first one to solve a complex cryptographic puzzle involving a lot of computing power. Once this puzzle is solved, the user uses its result to encrypt a block of transactions on the chain and is rewarded with one coin. This mechanism is used within Bitcoin. Proof of stake means that to generate a new block on the chain a user must hold the biggest amount of cryptocurrency for a certain amount of time, during which these funds are frozen. Once the new block is generated, the user which held the highest amount of coins gets a new coin. The generation algorithm is adjusted to avoid situations where one owner of the biggest stake of coins generates all the new ones. New cryptocurrencies are launched in a process called Initial Coin Offering (ICO). Within this process the people behind a new cryptocurrency sell a certain pool of coins to cover the cost of launching the cryptocurrency and sometimes another connected business venture. ICOs are not regulated and it can be very difficult for someone without expert technical knowledge and / or good connections within the blockchain community to understand which new cryptocurrencies have real value. After the ICO the coin generation process should be based on proof of work or proof of stake.
Theoretical articles laying the groundwork for a digital decentralized currency were written in the 1990s. In 2009 the first cryptocurrency, Bitcoin, was launched by Satoshi Nakamoto. Nakamoto's identity is uknown, as a homage to him a 1/100,000,000 Bitcoin unit was named 1 Satoshi. This is the smallest possible unit of measurement for Bitcoin. Ethereum was described as a concept in 2013 by Vitalik Buterin and launched in 2015.
Cryptocurrency can be relatively safe to use if you undertake the necessary precautions. First of all you need to choose the proper cryptocurrency to buy or use. As a rule of thumb you should start with the biggest cryptocurrencies - Bitcoin, Ethereum - who have the best checked code and liquidity. When buying smaller cryptocurrencies more experience is necessary to understand their exact characteristics and risks. Taking part in ICOs or buying new, obscure coins requires even more background knowledge to avoid scams and poor purchasing decisions. When buying cryptocurrency it is important to choose a secure purchasing channel. There are many exchanges and brokers to choose from, differing in price and security. We recommend to use our comparison engine which uses these exact criteria to provide necessary transparency. You can access it by tapping "Compare Exchanges" at the top of this page. Having bought cryptocurrency it is crucial to store it in a secure manner. We recommend either using and own wallet or storing cryptocurrency at one of the most secure exchanges. When using an own wallet it is vital to keep its private key secret. For this we recommend either a hardware wallet, or keeping the private key in writing or as a QR code in a safe offline storage place.
There is no clear answer to this question. For people who prioritize security and those making first steps on the crypto market Bitcoin and Ethereum are the best options. They are most secure and have high liquidity. If you want to use cryptocurrency as a payment tool, Bitcoin is the most widely accepted cryptocurrency. For more active traders and experienced users the world of cryptocurrency offers a full scale of risk / reward tradeoffs. From stablecoins, which are at least theoretically backed by fiat currency, to other major coins like Ripple, Bitcoin Cash, Zcash, to extremely risky and obscure "shitcoins" and ICOs - cryptocurrency is a world of its own.
Cryptocurrency can be used as an investment, protection against inflation, a payment tool or some combination of all three. Regarding investment, it can be used within different time horizons, either to buy-and-hold or speculative trading, or anything in between. Cryptocurrency does not suffer from inflation, its supply is controlled, thus it can protect savings from loss of value caused by irresponsible central banks or economic crises. Cryptocurrency is getting more and more popular as a payment method. In this aspect Bitcoin is by far most popular and widely accepted.
To buy cryptocurrency you need internet access and a way to transfer money to a cryptocurrency exchange. Exchanges usually except bank transfers, credit card payments, some also Paypal and other methods. In some countries buying cryptocurrency is illegal, so please check if this applies to your jurisdiction. If you want to hold cryptocurrency for a longer period of time we recommend to either open an account on one of the most secure exchanges or create your own wallet to manage possible risks.
How do cryptocurrency exchanges work?
A cryptocurrency exchange is a digital marketplace where traders can buy and sell cryptocurrency. It is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency. Each exchange supports trading of multiple cryptocurrencies against each other, most of them also enable trading regular fiat money against cryptocurrency.
Worldwide around 300 exchanges are now active and enable cryptocurrency trading.
Exchanges differ according to currencies and countries serviced, trading functionalities, fees, regulation, security and liquidity.
When taking first steps into the world of cryptocurrency it is important to choose the right exchange. To avoid unnecessary risk and hassle first-time you should choose an exchange which is availble for residents of your country and supports trading fiat money for cryptocurrency. Furthermore we recommend choosing an exchange which is both secure and offers low deposit / withdrawal fees. Cryptocurrency prices across exchanges are usually very similar, so what really makes a financial difference are the fees. Trading fees are usually around 0,2% and matter only if you want to conduct intensive trading. If yo are making your first cryptocurrency purchase, you can get hit harder by deposit / withdrawal fees. These can reach up to 4% for credit cards, so using a bank transfer makes more financial sense. Even then the fees can range between 0 and 1.5%. Some exchanges have a fixed minimum deposit fee designed to deter lower deposits. Regardless of fees the security of an exchange is a key topic. Choosing a low security exchange may mean losing your whole funds. As a rule of thumb the bigger exchange are the most secure. Although even among market leaders you can find sharp differences in terms of fund security. Please check out our exchange comparisons for detailed information regarding security and fees of the biggest cryptocurrency exchanges.
This depends strictly on the preferences of a cryptocurrency trader. Long term investors will look at low fees and an acceptable security level, as they will hold most of their funds off the exchange in their wallets. Higher volume traders will look at the exchanges' trading functionalities, liquidity and fees. Depending on the risk profile, some traders interested in more obscure cryptocurrencies might be forced to use the more obscure exchanges, as the bigger ones often allow trading of only the biggest and most reputable cryptocurrencies.
To buy cryptocurrency on an exchange you need internet access and a way to transfer money to the exchange. Exchanges usually except bank transfers, credit card payments, some also Paypal and other methods. In some countries buying cryptocurrency is illegal, so please check if this applies to your jurisdiction. Most exchanges will ask you to undergo a verification process before you deposit fiat money to the exchange or before exceeding a certain transaction value. This usually entails submitting a photo of your ID and a proof of adress - a mobile phone, internet or electricity bill or a bank statement.
Apart from cryptocurrency volatility the most important risks to consider are security risks. These can be connected with your behavior and with the exchange itself.
You should take care to invest in the biggest cryptocurrencies, which are usually the most secure. You should take care to choose the most secure cryptocurrency exchanges. For this you compare our Security Score for the respective exchanges. You should also take proper care of your login credentials for exchanges and the private key of your cryptocurrency wallet. If this data is compromised you run the risk of losing all your funds. Also please enable two-factor-authorization wherever possible.
Choosing between cryptocurrency exchanges you should aim for a reasonable compromise between exchange fees and security. We recommend prioritizing security and then checking the most secure exchanges regarding their fee levels. You also need to verify whether the chosen exchanges permit residents of your country to trade and enable trading of your cryptocurrency of choice. For this you can use our Coinerro exchange comparison, which ranks exchanges according to security and price with detailed infomation regarding eligible countries and fees.
We rank them using two criteria: price and security. We create two seperate lists, to allow you choose the best compromise between price and security. In terms of price we show you the best price you can get, in terms of security we compare exchanges according to our proprietary Security Score.