Originally Posted by
MeanPeopleSuck
LiteCoin and Ethereum are two of the largest, most common alt-coins and can therefore be purchased on almost any exchange.
Depending on what you're looking for, I might humbly recommend opening your first crypto account at any of the following 3 exchanges. These are all well established, safe, trusted platforms that are well capitalized and have been around a long time (by crypto standards, anyway):
1. Bitfinex.com.
Advantages: 1. It's the largest, best capitalized Bitcoin exchange in the world. 2. Accounts are super fast and easy to set up. 3. It's incorporated offshore, in the BVI, out of the jurisdiction of American courts and, especially, the IRS. 4. Margin buying and short selling are allowed on a 2.5 times initial margin basis. 5. Peer to Peer lending markets are available, so you can (and should -- not enough people do this) make passive, interest income on your coin and/or dollar holdings.
Disadvantages: 1. Last year, its cyber security was breached and it got hacked for $60 million, although it did get its account holders paid back within a few months. Since then they've spent millions on security upgrades, so I don't worry much about this aspect, but others might (eventually, you'll want to spread your holdings out across multiple exchanges, to hedge the hacking risk). 2. While including Litecoin and Ethereum, its menu of other alt-coins is pretty thin, a total of only 7 coins.
2. Bitstamp.net
Advantages: 1. Bitstamp's fully regulated by the EU, which requires it to maintain the highest capital (and cold wallet) reserves of any exchange in the world. 2. It's incorporated in Luxembourg and run out of Slovenia, so it's well outside US court and IRS jurisdiction. 3. Markets for trading in conventional currencies, like dollars to euros, etc., are available here, if you're into that boring kind of thing. 4. For a person's first account, Bitstamp's a strong option. Your money's safe and the inability to margin buy or short sell means account holders can't lose a bunch of cash before they've gotten fully up to speed on how to trade and, more importantly, how to trade crypto.
Disadvantages: 1. Litecoin and Ethereum trading don't go live at Bitstamp for another 3 weeks, in case the wait time's a problem. 2. Bitstamp currently only trades Bitcoin and Ripple (XRP), so even after it adds LTC and ETH, its coin menu will still be only 4 options deep. 3. There's no short selling or margin buying allowed. 4. Since there's no short selling or margin buying, there's no need for peer to peer lending markets, and therefore no opportunity to make any passive, interest income on your holdings.
3. Poloniex.com
Advantages: 1. Polo has by far the largest menu of alt coin markets in the world. Besides Litecoin and Ethereum, you can buy and sell 65+ other coins. 2. Accounts can be set up in minutes and anonymous trading is possible (if I remember right, you get a $2k daily limit for verifying an email account, which is upped to $7k a day if you give them a name -- any name). 3. Margin buying and short selling are available at 2.0 times original margin, but only for some coins, about 8 of them, but including all of the largest. 4. Peer to Peer lending markets are available for some coins, but not for dollars, a market Polo retains for itself, mirroring the policies of mainstream brokers like Etrade.
Disadvantages: 1. While Polo's never been hacked, its technology "feels" less sophisticated than Bitfinex's and Bitstamp's. 2. Its offices are located in San Francisco, within the jurisdictional reach of American courts and the IRS. 3. While it does have a live chat box (called the "Trollbox"), Polo tends to be slower to process deposits, withdrawals and inquiry tickets than its rivals (but only by crypto standards, meaning a few extra hours).
2 Popular Sites I'd Avoid: CoinBase, an overrated US based exchange, which is currently being sued by the IRS to turn over client records, and BitMex, an options exchange that makes stupidly large margin positions immediately available (some up to 100 times initial margin) using a derivatives / futures contracts format. IMHO, it's a pickem which happens first: you actually understand how the site works (I don't trade there) vs you going broke. Not recommended.
Good Luck and Happy Trading!!!