Cryptocurrency exchanges are avenues where you can buy or sell digital currencies for another cryptocurrency or with fiat currency. Most cryptocurrency newcomers usually interact with exchanges at the first point. We have many exchanges around, and amateurs might find it hard to settle on one. You can check out various online forums on what other traders are saying before choosing an exchange. You can search best cryptocurrency exchange Reddit. The platform will give you an insight on what to expect before joining an exchange.
Before signing up on any exchange, you need to look reputation, availability, rates, user friendliness, customer support, supported cryptocurrencies, and trading pairs. Some established exchanges do not support all cryptocurrencies, and you might be required to use other service providers for trading. Some exchanges offer crypto to crypto trade, while others deal in fiat currency. Here is a compilation of the top five trading platforms.
Coinbase is considered as the blue-chip among cryptocurrency exchanges. Users can buy, sell, store and trade cryptocurrencies. At the moment, Coinbase trades in four cryptocurrencies. Coinbase’s slash-wallet has a fee of 1.49% to 3.99% per purchase. Furthermore, with Coinbase users get insurance coverage to the stored currency.
For starters, Coinbase is easy to use with a friendly user interface. It easy to purchase coins through the wallet or exchange through GDAX, a sister exchange. GDAX offers an opportunity to more experienced traders to exchange with one another at reduced trading charges. The Coinbase wallet is available for both iPhone and Android users. This availability has which has promoted Coinbase popularity.
Coinbase is licensed in most United States regions. The exchange is recognized as a Money Services Business with FinCEN. In the US, FDIC allows up to a maximum of $250,000 for U.S.-based investors. Due to the large customer pool, Coinbase service customer desk takes long to respond to many concerns.
Binance is a reputable exchange in the cryptocurrency circles. The exchange is on an expansion course. Binance has its focus on the future with some initiatives lined up.
Binance boosts of low transaction fee of about 0.1% with over 130 tradeable currencies. This exchange has almost everything a crypto enthusiast wants. Both beginners and advanced traders can find a home in Binance. It comes with an option of tweaking trading depending on your level of experience.
Users registered on this platform, have access to the unique Binancecoin or BNB. The coin attracts a discount on fees during crypto-to-crypto trading. The coin has a positive reputation because its market cap stands at about $1.7 trillion.
On the downside, despite having a massive customer base, Binance has minimal regulations, something that can be a threat to the security of stored assets.
The Gemini cryptocurrency exchange has been around since 2015. The exchange owned by Tyler and Cameron Winklevoss has operations in the United States, Europe, and Asia. Gemini has been lauded for working closely with New York regulator to push for customer protection in the highly volatile space. This cooperation guarantees users of their security.
The exchange is licensed under the New York State Department of Financial Services.
Gemini holds US Dollar deposits in FDIC-insured banks while cryptocurrencies are stored in trust on the customer’s behalf.
The platform works on the model of maker-taker free schedule with high trading volumes enjoying discounts. Notably, all deposits and withdrawals are free. However, the exchange has limited trading options. It does not provide a short selling or exchange on margin.
If interested in knowing more about Gemini’s reputation, the best cryptocurrency exchange Reddit online query will give you the desired results. Gemini users usually share their trading experience on the platform, and their input can be critical in your final decision.
If you are a dedicated trader, then Bitcoin Mercantile Exchange is your home. Serious traders dedicated to Bitcoin mostly use it. The exchange is favorite among Bitcoin lovers with data indicating that it handles about $2 billion in transactions within a day.
This platform stands out due to its feature to purchase leveraged contracts like future contracts and permanent contracts full of bitcoin. It is the perfect plan for traders because all losses and profits are in the form of Bitcoin and not cash.
BitMex which is registered in Hong Kong, however, has some shortcomings. The exchange does not provide fiat services, and it is not available to customers based in the United States.
This Hong Kong-based exchange offers a robust trading experience. In addition to its token OKB, OKEx offers trading services in over 145 digital assets. Unlike other platforms that come with their coins, OKB holders have some say in the running of the company. Holders have access to discounts and voting ability in the company’s critical decisions. Additionally, the user gets benefits like margin or fiat trading for all users who are verified.
OKEx users have access to around 0.02% – 0.2% taker and maker fee. Some of the customers get margin trading and short selling.
OKEx lovers in the United States are disadvantaged since the service is not available in the region. The platform has cited regulation issues. However, OKEx has set its eyes on Malta due to a friendly crypto trading environment. Over the years, Malta has built a reputation in regards to its exciting blockchain projects.
Before settling on a specific cryptocurrency exchange, you need to look at various factors. In many cases, the location the exchange is allowed to operate in is critical. Some regions are known to have strict cryptocurrency regulations that might limit customer options such as the United States. Additionally, looking at your needs will be key. If you are a beginner, then exchanges that come with basic and advanced trading levels are your best option.
If you have settled on a particular exchange, it is wise to look out for its reputation. Online forums can be a great help. Platforms like Reddit, CryptoComapre, BitcoinTalk, and Trustpilot come in handy since users share real-time trading experience.
Generally, cryptocurrencies regulations are not yet watertight, and customers are always required be extra careful. However, if you have an exchange that has FDIC-insurance, it is an advantage.
Image source: blockgeeks
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