Crypto Trading Exchanges are websites where you can buy, sell or exchange cryptocurrencies for other digital currency or fiat currency like Euro or US dollars. In other words, cryptocurrency exchanges are an intermediary between buyers and sellers of cryptocurrencies. Most of these online trading platforms require you to verify your ID and open an account. These are mandatory for all professional cryptocurrency traders. However, for those who want to make an occasional, straightforward trade, some platforms do not require an account.
In general, there are few different types of crypto exchanges:
- Traditional Cryptocurrency Trading Platforms – Websites that act like the traditional stock exchanges. They connect buyers and sellers allowing them to trade on the current cryptocurrency market price. For exchange, these trading platforms take a fee from each transaction. Some trading platforms allow users to convert fiat currency (US Dollar, Euro, UK Pound, etc.) into cryptocurrency (Bitcoin, Litecoin, Ethereum, etc.).
- Direct Cryptocurrency Trading Exchanges – Platforms which offer direct peer-to-peer trading between sellers and buyers. Direct trading exchanges don’t have fixed market prices for the cryptocurrencies. Sellers determine their own exchange rate.
- Cryptocurrency Brokers – Website-based exchanges that sell and buy cryptocurrencies at a price set by the broker. The actual broker-set rate is often a bit higher than the one at the market. Cryptocurrency brokers offer the same functionality as over-the-counter trading services.
- Cryptocurrency Funds – Expert-managed pools of cryptocurrency assets. These cryptocurrency exchanges provide various buy-and-hold contracts to the public.
What Need to Know Before Joining an Exchange?
Before starting your cryptocurrency trading journey, you need to be aware of a couple of things. Here are the most important.
- Number of Cryptocoins listed – Around 70% of large exchanges allows trading with 2 or more cryptocoins. But, each crypto trading exchange has a different list of supported cryptocoins. If you want to trade with the most popular ones like Bitcoin, Litecoin, and Ethereum, you can pretty much use any exchange. However, having a longer list with supported cryptocurrency for trading is always a better option. Especially if you change your trading plan later.
- Number of Users and Market Share – The most efficient way to find out about one exchange is to check how many users it has and what is the market share it owns. More than 75% of cryptocurrency trades in the world are made in one of the 8 leading cryptocurrency exchange platforms.
- Past Problems – A search through the ratings and reviews from well-known industry sites and individual users will result in giving you the right information about each cryptocurrency exchange. You may also ask any question you have on Reddit or various cryptocurrency forums.
- Payment Methods – What kind of payment methods are available on the exchange? Wire transfer? Credit and debit card? PayPal? Limited payment options may make one exchange inconvenient for you to use. Purchasing cryptocurrencies with your credit card will require identity verification and always come with a premium price. It also has a higher processing and transaction fees as well as higher risk of fraud. On the other hand, using a wire transfer when purchasing cryptocurrencies will take significantly longer as takes time for banks to process.
- Fees and Giveaways – Exchanges usually have fee-related information on their websites. Before choosing one, make sure you understand their Fees can significantly differ depending on the exchange you use. They come like deposit fees, transaction fees, and withdrawal fees. Some cryptocurrency exchanges provide specific giveaways for their users. They can significantly increase your profit. So, make sure you are aware of them when choosing an exchange.
- Verification Procedures – Most of today’s cryptocurrency exchanges require some ID verification to allow you make deposits and withdrawals. However, some cryptocurrency exchanges offer anonymous transactions. Although verifications can take up to multiple days and might seem like a flaw, they protect the exchange against scams and money laundering.
- Ease of Use – Does the exchange have multilanguage support? What kind of user interface it has? And, how long is the path from creating the account till trading? These are the question that you must know, before choosing the exchange you will use.
- Territorial Restrictions – Some crypto trading exchanges offer limited functions in specific countries. Before choosing the one you want to join, make sure it provides all the platform functions and tools in the country you live in.
- Exchanging Rates – Each cryptocurrency exchange has different rates. It is not surprising for rates to fluctuate up to 15%. So, picking the right option for you can save you a lot.
Which are The Best Crypto Trading Exchanges?
Binance is a crypto trading exchange established in Hong Kong. It has more than 150 cryptocoins listed on it. And that number rapidly increases as the time pass.
Although it is located in China, it is open to almost all countries in the world. Binance can process 1.4 million orders per second and has multi-language support (English, Chinese, Korean, Japanese). It has more than 5 million users. And, the number is constantly rising.
The primary focus of Binance is cryptocurrency trading, and it does not accept fiat currency payments. It does not require any verification as long as withdrawals are below 2BTC in 24hr. However, ID verification is recommended.
Binance has relatively low fees (0.1% per trade) and provides a decent discount for day traders when using Binance (BNB) coins. BNB is a native currency of this platform. Furthermore, Binance gives 1 QTUM coin as a reward for registration. The amount of QTUM coins used for this giveaway is 10.000.
As a web-based trading platform, Binance offers two distinct trading layouts.
- A simple one – appropriate for all beginner-traders
- A Pro version – for all the experienced traders out there
This cryptocurrency exchange is one of the few in the world that provide mobile support for iOS and Android.
The only flaw (if we can call this a “flaw”) of Binance is that the company is relatively new on the market. However, from the trading perspective, it offers highly suitable conditions. Click this link to join Binance Now!
Established in Seattle, USA, Bittrex is one of the largest cryptocoin trading exchanges by the number of users. It makes its way into world’s top 3 exchanges based on the trading market share and is available in almost all countries. This exchange operates since 2014 and has an excellent reputation. Until today, it is free of any problems or hacks.
One of Bittrex’s major strength is the variety of cryptocurrency for trades that supports. Currently, it lists hundreds of cryptocoins and cryptocurrency trading pairs. Users can purchase Bitcoin, Ethereum, or USDT on Bittrex via bank wire transfer. However, it does not provide fiat trading pairs (trading via GBP, USD, EUR).
Bittrex currently offers 2 types of accounts:
- Basic account – Requires users to submit their name, date of birth, and address. After these details are verified through public records, users can withdraw up to 3 BTC worth of digital currency equivalents in 24hr if using two-factor authentication.
- Enhanced account – Requires users to submit selfies and scans of their IDs. The Jumio service verifies the submitted information. It utilizes various heuristics to determine that the ID is legitimate and the faces match. These accounts can withdraw up to 1000 BTC daily if they use two-factor authentication.
Trading on Bittrex is available for all users who have “enhanced verified” account with purchase amount greater than $10,000. Fees for trading stand at 0.25% on all trades. This allows users to easily and accurately calculate the costs for any trade.
Bittrex’s trading interface is known for its quick loading times, with no incidences of lags or hanging.
The only note that many users have about Bittrex is the lack of heavy-duty customer support. However, that is the sacrifice they’ve made to make all other aspects as appealing as they are. Click the following link to Join Bittrex Now!
Coinbase is the largest cryptocurrency broker in the world. It is available for users in more than 30 countries. However, United States, United Kingdom, and Brazil are the ones who take the biggest portion of their customer foundation. Coinbase exists from 2012, and that makes it one of the oldest cryptocurrency exchanges around.
With Coinbase, users can buy and sell Bitcoin with a connected bank account, Paypal account (for selling only), SEPA transfer, Interac Online, and a few other payment methods. Currently, only 3 cryptocurrencies are listed on Coinbase’s trading list (Bitcoin, Litecoin, and Ethereum). However, they plan to add more cryptocoins in the future.
Coinbase charges more than 1.5% fee per purchase. However, it is important to note that fees are approximate. They may be different based on your location or purchase size. Additionally, Coinbase charges a low fee of 0.25% for takers trading on its exchange platform (this apply for both Ethereum and Bitcoin).
Verification process on Coinbase includes providing user’s ID scan and selfie picture. Recently they also introduced the Vault feature. It allows you to “share an account” with 2 more users – approvers. That means approvers must confirm every withdrawal the user makes.
Thanks to the simple and intuitive interface that Coinbase has, it is very easy for using even for the first-time Cryptocurrency-buyers. Experts often recommend it to cryptocurrency newcomers.
Aside from the small number of supported cryptocurrencies, Coinbase provides a seamless and secure trading experience. Click the following link to Join Coinbase Now!
Although one cryptocurrency trading exchange can be considered as an excellent for some, the same platform may be unsuitable for others. Do not expect to have a crystal clear picture for any exchange before joining in. Using one will tell you what you like and what you don’t about it. However, the above information is your foundation for choosing the most appropriate option for you.