The trading of cryptocurrency can be extremely profitable for professionals or beginners. The market is new, it is very fragmented with huge differentials. Arbitration and margin trading are widely available. Therefore, many people can earn money by exchanging bitcoins.
There is a digital gold rush around the world as investors try to capitalize on Bitcoin, a notoriously volatile crypto currency. As in any exchange or speculative market, operating in Bitcoin or any other crypto is a risky business that could cost you real money, (and a lot). The most important advice is to proceed with caution and learn more about the risks. If you think you are ready to enter this competitive world, here are 5 exchanges that we believe are the best to make cryptocurrency trading.
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What is an Exchange of Cryptocurrencies?
A cryptocurrency exchange platform is a website where you can buy, sell or exchange cryptocurrencies for another digital currency or fiduciary money (USD, EUR, etc.). Depending on the exchange, they can operate as a stock exchange or as a currency exchange house.
In general, there are the following types of exchanges:
- “Traditional” cryptocurrency exchanges: these are exchanges that are like traditional stock exchanges where buyers and sellers trade based on the current market price of cryptocurrencies (with the exchange playing the role of intermediary). This type of trading platform usually takes a fee from each transaction. Some of these exchange types also allow users to convert fiduciary currency (such as the dollar) into cryptocurrencies such as Bitcoin at the market price. GDAX (subsidiary of Coinbase) is an example of this type of exchange, like Kraken. Shapeshift provides a similar service at no cost.
- Direct trading exchanges: these platforms offer direct trade between buyers and sellers. Direct trading exchanges do not use a fixed market price. The sellers establish their own exchange rate.
- Cryptocurrency brokers (Brokers): these are exchanges based on websites that operate like currency exchange bureaus. They allow customers to buy and sell cryptocurrencies at a price set by the intermediary (usually at the market price plus a small premium). Coinbase is an example of this type of exchange.
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The purchase of Bitcoins is the initial step to trade with cryptocurrency. Like the trade of an action, the exchanges charge transaction fees, which range between 0 and 1%. In order to exchange Bitcoin in an exchange, the user must have an account and perform a series of steps to be verified. Remember that Bitcoin and alternative cryptocurrencies are completely digital currencies, and there are no physical Bitcoins.
With more than 4,000 cryptocurrencies available in the market, it is key to determine which currencies you want to exchange and then compare the type of admitted transaction that occurs in each exchange site. For example, Qtum has become popular recently, but not all exchanges support this alternative cryptocurrency.
Pay close attention to the fees collected. While all of these exchange sites charge transaction fees (after all, they are businesses looking to make a profit), as a user, obviously it is better to find one with the lowest costs to maximize your own benefits.
It is also advisable to opt for a secure trading platform that has robust security measures. Desirable security features include two-factor authentication, alerts by SMS or email, encrypted emails and wallet monitoring. A smartphone application can also be very useful in terms of access and monitoring of funds.
Finally, look for an exchange site that is making a good trading volume, in other words, one with a high number of trading pairs and high liquidity.
Now that we know the characteristics that we should look for in the best exchanges for cryptocurrency trading , let’s continue to choose our favorites in particular.
Binance is one of the newest exchanges in the industry. The Hong Kong-based company raised about $ 15 million in an ICO in July (2017) and immediately acquired 20,000 registered users as part of the collection. Changpeng Zhao, CEO of Binance, has an impressive resume with years of experience in cryptocurrencies. He was Director of Development at Blockchain, Cofounder and Director of Technology at OKCoin, and Founder and CEO of BijieTech before working at Binance. From its ICO to date, Binance has grown enormously and is now in the top 10 cryptocurrency exchanges in the world. Currently it has more than 140 altcoins listed on it, and the number increases as the days go by.
Binance’s tariff structure is unique. For starters, they have a 0.1% standard trading rate, which is already quite lower than other pairs. If you pay using your own token ( BNB ), you currently receive a 50% discount on the negotiation rate, which drops to 0.05%. With this discount, Binance easily has the lowest rates in the industry.
Official site: https://www.binance.com/
Supported currencies: https://coinmarketcap.com/en/exchanges/binance/
It is impossible to analyze the commercial altcoins and not use the Poloniex exchange these days. Although Poloniex does not list all the existing altcoins, it does include the ones with the highest circulation and therefore they are the main exchange when it comes to trading with alternative cryptocurrencies. Poloniex was also one of the first platforms to support the Ethereum Classic after the Ethereum fork.
Among the main currencies listed in Poloniex are Monero, Ethereum Classic, Ripple, Litecoin, Factom and Maidsafe, to name a few. The platform generates a large amount of Bitcoin trading volume every day. In addition, some of the “main altcoins” even reach Poloniex’s loan and trading margin markets, allowing them to gain even more exposure over time.
Official site: https://poloniex.com/
Supported currencies: https://coinmarketcap.com/en/exchanges/poloniex/
Bittrex is a regulated stock exchange based in the USA. UU which offers the trading of many established cryptocurrencies and tokens, as well as emerging currencies. In fact, they admit more than 190 cryptocurrencies to date. They also perform compliance audits on new cryptocurrencies, so that operators can be sure they are operating safely and legally.
The exchange was launched at the beginning of 2014. As a company based in the USA. UU., Bittrex has declared its commitment to follow all laws and regulations required by US government agencies. Poloniex is Bittrex’s biggest rival. Both exchanges currently offer a wide variety of BTC, ETH and USDT trading pairs.
They offer quick transactions and great stability, so many experienced investors frequent this exchange.
Official site: https://bittrex.com/
Supported currencies: https://coinmarketcap.com/en/exchanges/bittrex/
Founded in 2011, Kraken is the largest Bitcoin exchange in volume and liquidity in euros and is a partner in the first cryptocurrency bank. Kraken allows you to buy and sell bitcoins and trade between bitcoins and euros, US dollars, Canadian dollars, pounds sterling and Japanese yen. It is also possible to exchange digital currencies other than Bitcoin such as Ethereum, Monero, Ethereum Classic, Augur REP tokens, ICONOMI, Zcash, Litecoin, Dogecoin, Ripple and Stellar / Lumens.
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Kraken is the favorite Bitcoin Exchange for many professional operators. They provide all the tools and reliability necessary to make expert decisions about the cryptocurrency exchange. They offer a high security environment with reliable cold storage, legal compliance and advanced types of orders, such as stop-loss orders.
Official site: https://www.kraken.com/
Supported currencies: https://coinmarketcap.com/en/exchanges/kraken/
Based in Hong Kong, Bitfinex is the largest Bitcoin exchange in the world by volume. 5.77 million bitcoins were traded through Bitfinex from mid-April to mid-October 2017, almost double the volume of Bitfinex’s closest competitors, including Kraken (3.65 million BTC) and Coinbase (3, 06 million BTC). It is the main Bitcoin stock exchange in USD.
Free deposits and fairly cheap withdrawals are available for Bitcoin and the following ICO altcoins and tokens: Litecoin, Ethereum (Classic), Zcash, Monero, Dash, Ripple, Iota, EOS, Santiment, OmiseGO, Bcash, NEO, Metaverse ETP, Qtum, Aventus, EDO and Bitcoin Gold. Bitfinex also supports Tether (USDT), the token linked unofficially to the price of the US dollar. In fact, Bitfinex is a major shareholder in Tether and is probably the main holder of most of these currencies.
Official site: https://www.bitfinex.com/
Supported currencies: https://coinmarketcap.com/en/exchanges/bitfinex/
Cryptopia was founded in 2014, with the aim of being a comprehensive exchange that focuses on the user experience, with the integration of additional services, including a market and a wallet. It is headquartered in Christchurch, New Zealand. Cryptopia is remarkable because the first level of verification happens very fast and only requires an email address for initial verification.
While Cryptopia is not compatible with fiduciary money trading, it does admit a ridiculously large number of cryptocurrencies: more than 400 to date, with more being added all the time. The trading rate is also a low 0.20% per transaction, which compares favorably with many competitors. The website is quite extensive and extensive, which means that new users may find themselves a bit disoriented with their first experience operating through this site.
Official site: https://www.cryptopia.co.nz/
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- 1 What is an Exchange of Cryptocurrencies?
- 2 1. Binance
- 3 2. Poloniex
- 4 3. Bittrex
- 5 4. Kraken
- 6 5. BitFinex
- 7 Bonus: Cryptopia