If you are reading this article, then it is more than likely that the cryptocurrency market has piqued your interest. As a budding billion-dollar industry, the cryptocurrency space has started to capture the attention of the wider public and institutions alike. As a result, many investors are looking for the best cryptocurrency exchange.
How Does One Start Trading On A Best Cryptocurrency Exchange?
Blockchain is not exactly intuitive and not until recent years have the infrastructure for this young industry been developed. In the early days of the cryptocurrency market, there were way fewer crypto trading platforms. Moreover, there were not a lot of reliable platforms to choose from. It was a murky and uncertain environment. Both buyers and sellers have to trust that the other party will act in accordance with the set terms and conditions of a deal.
A party acting maliciously faces little to no recourse. Transactions cannot be reversed and a legal case was hard to establish. While this was the scenario for transactions across borders, regionally, people meet up informally to exchange for cryptocurrency goods and services. This too required a high degree of trust among parties.
Currently, the cryptocurrency industry has been making huge progress. Gone were the days where buying and selling cryptocurrency resemble shady back-alley deals. There are now digital currency exchanges which offer more than the typical specialized bitcoin trading platform. Thus, making cryptocurrency more accessible to the everyday laymen.
Out of these cryptocurrency trading platforms, some have distinguished themselves as top players in their field. In this article, we will go through some considerations when choosing a cryptocurrency exchange as well as a list of crypto trading platforms.
Best Cryptocurrency Exchange Feature: Security
Back around 2011, the unthinkable happened. Mt Gox, then the largest bitcoin trading platform was hacked. The ensuing panic created in its wake left many investors with fear and disappointment as their bitcoin holding evaporated overnight. In addition, there was speculation that the bear market that followed shortly after was a consequence of the hack as investors lose confidence. Despite the lawsuits and demands for bitcoin from victims of the exchange, it is unclear how they will be compensated for their loss.
From this infamous case, it is clear that safety is of the utmost importance when looking at a cryptocurrency trading platform. As cryptocurrency is largely operating in a grey area, there is no government backing or bailout. Users thus, have to select their exchange carefully if they wish to have their tokens or funds kept on a cryptocurrency trading platform. Since it would be highly improbable that an exchange would allow others to peak into their backend or expect the average person to gauge the reliability through studying codes, a user will have to use other factors to serve as criterions.
Why A Best Cryptocurrency Exchange’s Security Track Record Is So Important
An exchange’s past history with hacks is a good start. It is a measure of the likely outcome of such an event. The exchange’s attitude towards the incident, responsiveness to queries, success in preventing loss of funds and compensation are just a few of the things that a user can consider when evaluating the safety of an exchange. On a positive note, the cryptocurrency sector has identified best security practices. Cryptocurrencies are now more commonly stored in cold wallets rather than hot wallets that are accessible online. In the event of a successful hack, only a portion of the total funds is lost through the hot wallet. Despite improved security measures across the cryptocurrency trading platform space, hacks still occur such as the more recent incident with a Japanese exchange which resulted in losses.
Thus, users have to look at an exchange’s past performance and only select cryptocurrency trading platforms that the user deems reputable. If unsure, a user can choose to keep cryptocurrency funds in a cold wallet that they owned.
Best Cryptocurrency Exchange: User Interface
With the steep learning curve of cryptocurrencies, a friendly user interface can become a boon in taking the first few steps into the cryptocurrency space. Cryptocurrency trading platforms with a user interface built for user experience in mind will allow newcomers to quickly get accustomed to the layout of features.
Functions such as one-click trading will speed up the process and create a hassle-free experience. As each cryptocurrency trading platform have its own points of differentiation, it is difficult to determine what is the best cryptocurrency trading platform. However, there are some features that have become standards for cryptocurrency trading platforms within the market.
Cryptocurrency Exchange Best Practices: What To Identify
Firstly, the buy and sell function should be easy to use and understand. This extends to the trading rules around trading fees, withdrawals and setting up different types of orders. Besides buying and selling, some exchanges allow users to set up trailing stop losses and stop-limit orders.
Secondly, web navigation should be streamlined. With the depth of some websites, it can be daunting to find the relevant page or information on a cryptocurrency trading platform. Poorly organized websites with numerous layers and pages make it more complicated for new users.
Thirdly, is the mobile optimization of the exchange on the web. If a mobile application for the exchange has not been developed, then it is advantageous to have the cryptocurrency trading platform optimized for mobile devices. Being mobile-optimized will create greater convenience as users tend to have smartphones in this day and age.
Lastly, the cryptocurrency trading platform should be responsive toward inquiries. This will reduce frustration, especially when unexpected incidents happen.
Best Cryptocurrency Exchange: Trading Platform Markets
With each cryptocurrency exchange, there exist different markets for a particular token or coin. This is especially important as different individuals are trading with different goals in mind. Some might be trading for more bitcoin while others trade for more USDT. Different types of markets available on an exchange will determine the type of value that a cryptocurrency can be traded for.
For example, if a user has XRP and wishes to trade for USDT, then that individual would have to trade XRP on the USDT market under the XRP/USDT pair. If an exchange does not have the market a user wishes to trade on, then perhaps it is best to look for an alternative cryptocurrency trading platform.
This is important to note as transaction fees are incurred when tokens are sent to and from a cryptocurrency trading exchange. If the token or coin is not listed on the required market, then withdrawal fees are incurred meaninglessly.
Another point to note is the liquidity within each trading market. For example, exchange (A) might have higher liquidity for the market of XRP/USDT than exchange (B). Higher liquidity is especially useful for selling and buying larger quantities of tokens without a large spread of price to fill the buy or sell order.
The common markets than can be found on cryptocurrency trading exchanges, in general, are the BTC, ETH, USDT and USD markets. Therefore, it is wise to consider checking out the markets available on a cryptocurrency trading platform and the trading volume before deciding where to transfer, buy or sell cryptocurrencies.
Luckily, this information is usually readily available on the exchange itself and on other third-party websites. Thus, users need not sign up for the exchange and commit before being allowed to look at the markets and their volume.
List Of The Best Cryptocurrency Exchange
Let’s move on to a list of cryptocurrency trading platforms to ponder over. Each user will have a different opinion on what constitutes the best cryptocurrency trading platform. Hence, each of the listed exchanges in this article will have a different point of differentiation that sets them apart from others.
We shall start with crypto-to-crypto exchanges before moving on to fiat-to-crypto exchanges.
A player in the market since the early days of 2014, Poloniex has certainly proved its position in the industry. Since then, the cryptocurrency trading platform has expended its cryptocurrency offerings beyond major coins such as bitcoin and Ethereum. Users can now trade from over 60 different altcoins. Thereby providing access to a greater range of cryptocurrencies under a single exchange. In addition, the exchange has added features such as margin trading and smart APIs to cater to a wider range of user types.
This cryptocurrency trading platform has trading features beyond what many other cryptocurrency trading platforms offer. It offers trailing stop losses, kill or fill, one cancel other, among other trading functionality. This is highly advantageous for users who are looking to make more frequency of trades. These features add a certain level of automation to the standard buy and sell orders. In addition, the exchange has allowed for margin trading and margin funding.
Binance is a highly reputable crypto trading platform. It allows users to trade within different markets ranging from bitcoin and Ethereum to various stable coin markets such as USDT. The cryptocurrency trading platform has implemented more complex buying and selling orders to suit the needs of different traders. Moreover, Binance does periodically upgrade their platform and services.
This cryptocurrency trading exchange is also one with a longer history of operation making it a veteran in the market. It offers the trading option most reputable exchanges do and has started launching its own IEO on the platform. While its fees are not the cheapest, it is still at the lower range than some of the cryptocurrency exchange platform on the market.
Aesthetically the most appealing, this cryptocurrency exchange platform brings a new trading experience with its sleek design and interface. It has the trading options that most competitors have in the market. In addition, safety built into its trading user interface. To add on to user security, Kucoin uses 2FA authentication that can be enabled before access is granted. A more pleasantly designed exchange, it will likely provide a unique user experience.
6. Huobi Pro
As a cryptocurrency trading platform, it offers numerous tokens to trade and markets to trade from. Another big exchange with a long history of operation, it has served users well and withstood the test of time. In recent times, the cryptocurrency trading platform has implemented its own mobile application to keep up with consumer behavior. In addition, the exchange is very customer-centric with options such as 24/7 customer support.
A leverage-focused cryptocurrency trading platform, BitMex allows for up to 100 times leverage on bitcoin contracts. In addition, BitMex has thus far suffered no successful hacking or intrusions. Coupled with a highly liquid market, BitMex is a cryptocurrency trading platform that tends to appeal to users who likely trade at a higher frequency and volume.
Operating since 2015, Changelly is a unique cryptocurrency trading platform where the platform acts as an intermediary between cryptocurrency exchanges and users. It has a mobile application for users and features comprehensive 24/7 live support, making the cryptocurrency platform friendly to newcomers. As a non-custodian instant cryptocurrency exchange, it does present itself as an alternative to users who are looking at the cryptocurrency market.
Fiat to Crypto Exchanges
Coinbase is a popular exchange with a track record of being reliable. As a crypto-to-fiat exchange, Coinbase has a strict token listing process to provide users with the best experience possible. This stringent vetting process helps to eliminate cryptocurrency that is of lower quality and reduces user’s exposure to them. As an entry to buy bitcoin and other major cryptocurrencies such as Ethereum. Coinbase has become a familiar name in the cryptocurrency space. While having a limited number of tokens listed on the exchange and higher fees, the platform has a long history of operation given the relative age of the cryptocurrency market in general. As such, Coinbase is worth a spot as part of the consideration set for the best cryptocurrency trading platform.
Serving the South East Asia region, Coinhako is another fiat-to-crypto exchange to consider if the user is from the specified geographic region. The exchange is a gateway to cryptocurrencies as it allows an individual to purchase cryptocurrency using fiat. While having more tokens listed on the exchange, its fees are still higher than some exchanges. The exchange stands out in its offers and promotions which can help save fees for users. As an exchange, it is certainly intuitive with its simplistic and practical design. Coupled with updates on token listings and trading promotions, this is certainly a cryptocurrency trading platform to look out for. It can be used as a benchmark to gauge relevant cryptocurrency trading platforms.
With this list, we conclude the end of this article, for more cryptocurrency content make sure to tune in to Robots.net.