Which Exchanges are the Best for Trading Cryptocurrencies?
So you have been in the crypto world for quite a while, have figured out the basics and would like try your luck at cryptocurrency trading. You aren’t the only one, in the recent years the highly volatile crypto market has offered a very lucrative opportunity to make money for savvy investors and skilled traders alike.
But which cryptocurrency exchanges are best situated for trading? What benefits and features make them unique and attractivet to speculators?
In this article take a closer look at key aspects traders look for when they choose a cryptocurrency exchange and exlore some solid options.
Things to Consider When Picking Crypto Exchanges For Trading
These are the points one should keep in mind before settling for a cryptocurrency trading platform.
The Fees – On of the most important things a trader should look for are the trading fees. Understanding the fee structure is extremely important because it is a major component of the profit/loss calculation. Typically exchanges take a small fee (around 0.5%) on each trade. Most exchanges also charge withdrawal and deposit fees. Be vigilant when checking the fee terms so that you can avoid any nasty surprises.
The Variety – The second most important point of difference is the variety of coins an exchange offers. If you want to take advantage of price spikes and dumps you want to be able to access a large variety of financial instruments. Some exchanges offer only a few coins, while others have well over a hundred to choose from.
The Interface – User-friendliness is another aspect that should be taken into account when picking a exchange to trade on. You want something sleek and fast to work on instead of dealing with unnecessary front-end bugs.
The Security – If you are going to store liquid funds for trading online, you want to make sure they are safe right? The security of an exchange platform is extremely important and you should always make sure that you are using a legitimate, trusted and reputable vendor.
While it is true that reputable exchanges are safer, more secure and better to use, it is also true that not a single one is invincible to cyber attacks. Always keep in mind that these applications can not guarantee a 100% level of cybersecurity.
Now it’s time to have a look at the best exchanges to use for trading.
eToro
eToro is a social trading platform where you can invest and trade stocks aswell as cryptocurrencies. You can also use their CopyTrader system to follow leading investors and make trades based on their actions. EToro is one of the safest places to get bitcoin online, and the process is very fast and convenient.
The main advantage eToro offers is the speed of purchase and the level of security. EToro allows you to deposit money instantly to the trading platform – All you have to do is sign-up. Later on, you will have to complete a verification process by uploading your ID card. It is then automatically scanned by the system.
The spread fees are relatively high and the exchange rates are well above the market average. The choice of cryptocurrency instruments is limited to nine coins: Bitcoin, Ethereum, Ethereum Classic, Litecoin, Cardano, Stellar, Ripple and EOS.
These are all obvious drawbacks but they are countered with three decisive features:
1. eToro is the fastest exchange in terms of on-boarding
You sign-up, make an instant deposit via credit card (minimum amount: $200 USD) and you can start trading. You have two weeks time complete the verification process after you have signed-up.
2. eToro has the exceptional security standards
The platform is designed for short and long-term investors and thus holds an enormous amount of funds. That being said, the the level of security is exceptional.
3. The Social Trading System
There is not one interface in the crypto space that is matches the elegance, simplicity and versatility that the eToro app offers. In an instant you can configure automated trades, stop-losses or just “copy” other investors, which is their own patented invention. Oh did I mention you can comment and make posts there too?
You can literally buy bitcoin in under 2 minutes on eToro, which is unheard of on other platforms.
But there is an important distinction to consider when comparing eToro to other cryptocurrency exchanges.
Etoro does not provide you access to the Bitcoin Wallet (Or other Coin Wallets) private key, thus you own the rights to the bitcoin but cannot claim direct ownership of the wallet or take advantage of any feature this digital asset offers. On eToro, bitcoin is treated like a traditional stock share: You can only buy and sell.
Bittrex
Bittrex is one of the most popular pure cryptocurrency trading platforms and has been around for a years, gaining the trust of thousands of crypto traders around the globe.
With well over 190 coins to choose from, Bittrex is the number one crypto exchange to go and trade coins. Based in Seattle, Washington the platform has seen tremedous growth ever since it’s inception in 2013.
The platform offers moderate fees (0.5% per trade) and does and a great chart application which makes it a great choice for experienced and new speculators.
Most recently, the exchange has upgraded it’s interface to be even faster and more reliable which has caused an explosive growth in the amount of users. It should be noted: Due to high demand, Bittrex is not always open for new registrations simply because it has limited resources and does not want to stress it’s servers to the limits of their capacity.
Binance
Binance is the leading China-based cryptocurrency exchange platform.
Founded in 2017 by Changpeng Zhao, this exchange has dominated the market with the short time frame of a year. Don’t let the Chinese location fool you – this exchange is available for investors and traders all over the world.
The CEO and founder spent years in the financial software industry before he went on to build the most scalable trading platform in the word…successfully. The speed and reliability this platform offers while maintaining a huge variety of well over 200 coins (and counting) is unmatched in the industry and has allowed the platform become the biggest trading platform in the world in terms of trading volume within one year. If you are looking for an exchange platform that offers the most flexibility while providing high levels of security and scalability, this is the number one platform.
And it get’s even better: with 0.25% fee per trade binance is also officially the cheapest platform to trade on.
Conclusion
Choosing the right cryptocurrency exchange for trading is an important step for every savvy speculator. There is no single answer to the question, since everyone has their own requirements and personal preferences. We hope this article provided some valuable insights to you and underlined some important aspects that are relevant to this important choice. Keep in mind, that you don’t have to stick to one platform. Feel free to sign-up to multiple exchanges, take the apps for a spin and then commit to the one you like most.
We have selected 3 trustworthy and safe options for you that are great choices for crypto traders, we hope it helps kick start your trading journey.
