Best Crypto Exchanges in Europe for 2023 (Ranked & Reviewed)

What is a crypto exchange?

A crypto exchange is an online marketplace where you can trade cryptocurrencies for other cryptocurrencies, digital money, fiat money, or many other tokens, such as NFTs. Typically, crypto exchanges are centralised, similar to stock exchanges. These platforms will work as intermediaries that match transactions between buyers and sellers, offering you more safety when selling or purchasing cryptocurrencies. Crypto exchanges may also be decentralised. In this case, the platform will use blockchain technology to facilitate the exchange of your asset with another party without the intervention of the platform.

Is the cryptocurrency exchange the only place where I can buy crypto?

No. Buying cryptocurrencies in cryptocurrency exchanges is probably the most famous method to buy crypto, but it is not the only way. Firstly, it is possible to purchase cryptocurrency through brokers. While exchanges are intermediaries who enable trade between two parties by charging a fee for the services, brokers act as the counterparties. It is also possible to buy cryptocurrencies in P2P (peer-to-peer) marketplaces. Your transaction will happen directly with the other party on these platforms, with no automation or matchmaking engine.

Are cryptocurrency exchanges regulated in Europe?

At the moment of writing, there is no direct European regulation in effect for cryptocurrency exchanges. However, since 2020, cryptocurrency exchanges have been included in the European AML framework. They have to perform customer due diligence checks and maintain ongoing monitoring of clients.

There are plans to implement EU law that will directly regulate cryptocurrency exchanges. Over the next few years, there should be a European harmonised framework for licensing crypto assets service providers.

Currently, cryptocurrency exchanges are regulated at the national level by the countries within the EU, and requirements may vary. Exchanges still need a license for anti-money laundering purposes, as we can see in Germany and Portugal, but the procedure changes from country to country.

What is the best altcoin exchange in Europe?

Altcoins are any cryptocurrencies other than bitcoin, including Ethereum, Cardano and Solana. We can say that the best European cryptocurrency exchanges are also the best altcoin exchanges. You can buy altcoins in Etoro, Coinbase, Kraken, Crypto.com, and many other platforms, such as Bitpanda, Nexo, etc.

How is cryptocurrency taxed in Europe?

At a European level, cryptocurrencies are not subject to taxation. The CJEU has ruled that the act of exchanging legal tender currencies for cryptocurrencies is a supply of services but should be exempt from VAT.

On the other hand, cryptocurrencies are subject to capital gains tax in most European Countries, with the rates varying according to the jurisdiction. There is a trend for jurisdictions to adhere to the taxation of cryptocurrencies over the next few years. Even countries considered crypto tax havens for retail investors, such as Portugal, are starting to prepare a legal tax regime for the area.

Is there a Bitcoin ETF in Europe?

Yes. Currently, there are 73 crypto ETPs in Europe, which includes Bitcoin ETFs. For instance, in February, Fidelity International launched in the swiss and german exchanges a Bitcoin ETP which tracks the value of the cryptocurrency.