It all started about a decade back when the first cryptocurrency named Bitcoin was launched by an unknown group of people called Santoshi Nakamoto. It took everyone by surprise when the price of bitcoin rose by 1000% in its w=first week of launch, but the main attraction happened about seven years later of the launch when the bitcoin prices went up to $15,000.
In the current scenario, The cryptocurrency market has been slowly going down without showing any sign of improvement. In this situation, there have been hundred’s of ICO’s that are launched and looking to enter in the market on lower cap.
With the increase in some coins on the offering, there was a need of a platform that would churn out coins that aren’t a scam and list them on their platform to allow people trade from all over the globe and at any point of time.
The crypto exchange platforms allow the traders buy and sell cryptocurrencies like Bitcoin and Ethereum. Each crypto exchange platform has got it’s set of pros and cons. Depending on what you are expecting from the cryptocurrency exchange and what kind of cryptocurrencies you are trying to acquire, you may have to choose the right cryptocurrency exchange platform for you.
There are many factors that enter into a good exchange, the obvious being reputation and security. You may be restricted from certain exchanges because of your area. As with any software platform, a good user interface can make all the difference. Other factors to consider are available order types, altcoins, manufacturer/taker transaction fees, and payment options. Margin trading is also a very desired feature among traders.
Each of us has different priorities and will evaluate each of these things differently. For example, investors would probably choose an exchange with a high reputation and easy access, while most traders would use a combination of exchanges to access all the features they need.
How to Select Exchange for Crypto Trading
Exchange of cryptocurrency
Choosing a trading platform allows you to take advantage of cryptocurrencies. For this, it is recommended to turn to popular platforms . The decision must also be carefully considered because the stakes are high. Here are the tips to follow to find the best exchange of cryptocurrency.
Check the trading fees
The choice of the best cryptocurrency exchange depends on several factors, and the trading fees are part of it. They are calculated on the basis of the volume of transactions and are digressive. In general, the exchange fees vary according to the size of the platform used . More precisely, the average trading costs are between 0.01% and 0.50%, against 0.30% for the smaller ones and 0.10% for the larger ones.
In any case, if the transaction volume is high, the trading fees are normally low . Conversely, the fees may be heavy. However, it must be remembered that credit card purchases are more expensive (sometimes up to 10% on certain platforms).
Determine the level of security
Cryptocurrencies have the bad reputation of being sources of illegal funding for terrorism , drug sales or money laundering. To reassure potential investors, exchange platforms have put in place security devices (at the request of marketplaces).
Thus, anyone wishing to use this type of online service must provide personal information about it before they can access the trading platforms available on the market. That said, it is important to check the level of security of the trading platform before jumping into the water.
It is imperative to avoid those who have already been hacked . Of course, the major trading platforms such as Coinbase, Kraken, Binance, AltExch, or Localbitcoins have a high level of reliability.
The currency pairs offered by the platform
In general, trading platforms for a single purpose: exchanging cryptocurrencies for cash, like the euro (EUR), the US dollar (USD) or the Chinese Yuan (CNY). Therefore, it is better to choose its trading platform based on the commercial pairs it offers.
The most well-known currency pair is the BTC / USD. Ideally, we should turn to platforms that offer other currencies to users such as the British Pound (GBP) , the Euro (EUR), the Russian Ruble (RUB), the Canadian Dollar (CAD) or the US Dollar. Swiss franc (CHF). It is also possible to exchange altcoins (Ethereum, Litecoin, Ripple, Dash, Monero, etc.) on certain trading platforms like Simple FX and FX Open.
Mobile trading applications
Some cryptocurrency exchange platforms have developed mobile applications to allow users to make transactions via their smartphones or tablets, especially when they are traveling. Relying on this kind of trading platform is recommended because it is more convenient.
This facilitates access to the online service, no matter where the individual is (at home, at the office, on the bus or in an elevator). Of course, the application must be compatible with iOS and Android so that users can fully enjoy its features . Those who have already used MetaTrader know very well that this type of mobile service has significant benefits.
Let’s review a handful of the best exchanges, identifying the advantages and disadvantages of each one so that you can choose the best for you.
Coinbase is headquartered in California and it is considered as the most beginner friendly crypto exchange. Recently, it is rebranded as Global Digital Asset Exchange (GDAX or Coinbase Pro ).
● An intuitive and easy to use interface.
● A wide-range of withdrawal and fiat deposit options.
● Multi-signature security and 2FA feature to avoid manipulation of funds by unauthorized access.
● Instant transfer of cryptocurrencies between the Coinbase users.
● Staying anonymous is not possible as they monitor all the accounts.
● It supports very few cryptocurrencies.
● Takes three days for withdrawals and deposits.
● It takes time to get replies from support.
Binance is quite popular among the cryptocurrency enthusiasts. With their low transaction fees, Binance has quickly managed to attract numerous traders. They have also issued their own cryptocurrency called as BNB which has passed ICO successfully.
● Low transaction fees (around 0.1% on each transaction).
● It supports over 100 cryptocurrencies.
● Great liquidity.
● It can process up to 1.4 Mn transactions per second.
● Attractive reward and bounty programs for the community.
● Multi-language support.
● Hongkong based organization( Recently Moved to Malta ).
● It is not possible to fund your Binance account with normal currency.
● The platform can be a bit confusing for the beginners.
AltExch platform allows you to trade in 500+ coins and also has 1 billion coins of its own to offer at a dirt low price of $0.01 for the next 20 days.
● The platform works as an exchange for currencies and also as a wallet
● It supports over 500 cryptocurrencies.
● 0% Trading fee for ICO contributors.
● Up to 35% in trading commission.
● Crypto Binary Trading
● AltExchange Mobile App.
● Chart and Professional tools for traders.
● 100% Secure cold wallet.
● Multi-language support.
● UK Beta House Registered Company, no other details provided.
● Platform Not Launched yet for the public.
● Only Demo Image posted on Website, no real demo.
Koinex is a new crypto exchange platform, it has gained immense popularity because of its awesome features. It supports all the mainstream cryptocurrencies like BTC, LTC, ETH, XRP etc. The best thing is they are consistently adding new cryptocurrencies on their platform.
● Supports wide-range of cryptocurrencies.
● Extremely user-friendly.
● Koinex supports Indian currency which is good news for Indian crypto-investors.
● Great referral program.
● Withdrawal fees are comparatively high.
● The verification process is slow.
● No mobile app at the moment.
● It doesn’t support coin-to-coin trading.
5. Local Bitcoins
Localbitcoins is a platform which connects Bitcoin buyers and sellers via the peer-to-peer marketplace. It’s a popular platform which provides an alternative way to trade or buy Bitcoins.
● Allows the users to buy the Bitcoins privately.
● It supports over 200 countries. It is probably the only way to grab the Bitcoins in some countries.
● Low fees and quick transfers.
● No maximums or minimums limits set by LocalBitcoins
● Supports a bunch of payment methods.
● Online support tickets are attended quickly.
● Exchange rates vary frequently and wildly.
● There is no telephone support.
● The user must handle the transfer details.
To take into account before trading on a platform.
There are many tokens trading platforms , from well-known platforms like Coinbase or Binance to end up with tiny platforms that only accept a few tokens.
For the main crypto like BTC , ETH or XRP it is easy to find a good platform because there is the tons of choice! On the other hand, to buy less known parts it is necessary to go through less known exchanges with less volume and potential problems of hacking and security of accounts.
It is therefore important to compare the trading platforms on which you can buy your corner/token as desired! If you have the choice between several websites, choose the one that has the best opinions or the best benefits (languages, means of payment), otherwise be vigilant and follow the tips below.
Protect your Cryptos
Exchanges are websites that will generate your own digital wallet for the purpose of storing your altcoins. In the vast majority of cases (unlike decentralized trading platforms) the owners of the site/company manage your portfolio because you are not in possession of the seed (the password to access your wallet). If you go through big popular platforms you do not have much to worry about because specialized teams take care of security. But in case you use small exchanges it is absolutely not recommended to keep his cryptos on this Wallet! It is imperative to transfer these crypto-assets in a much more reliable place (deskop wallet, cold storage). Once you have changed your BTC or ETH in other altcoins you can freely (- platform commission) transfer your new parts to an external portfolio that you manage.
We remind you that exchange piracy is a reality that has hit many times in recent years. Giants of the exchange of cryptos were victims of this kind of attacks resulting in hundreds of millions of euros of flight.
In the world of crypto-currencies, nothing is better than storing its corners in a physical wallet like a USB key (ex: Ledger Nano / Trezor), prevention is better than cure …