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Best Cryptocurrency Trading Platform, How to Choose One

  • Andrew Strogoff

    Best cryptocurrency trading platform, the main criteria to choose them

Best Cryptocurrency Trading Platform, How to Choose One
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Cryptocurrency exchanges are numerous nowadays. They offer different services and trading conditions to their clients. They have different level of security as well. Today we are going to tell you how to find the best cryptocurrency trading platform.

Why is it important to choose the best one? Those who start crypto trading, need to open an account with one or even several trading platforms. There are several criteria helping investors to make the right choice. One trading place has higher level of security, for example, but does not support fiat money. The other work with large amount of coins but have few deposit/withdrawal methods.

The importance of choosing the right place for trading is easy to explain. If the exchange does not meet your requirements, you will have difficulties when working with it. For example, you want to trade some rare coins, but the exchange does not offer big choice the its clients. You will need to look for another market to satisfy your needs.

👉MUST READ Cryptocurrency Trading For Beginners- Online Course For FREE

Main criteria to find the best cryptocurrency platform

There are several cryptocurrency exchanges currently and all of them try to attract clients as they earn via fees. In order to make the best choice, one needs some aspects to analyze. We would like to suggest several criteria that may be helpful for all categories of traders including beginner investors.

Reliability and reputation

The first thing everybody needs to pay attention to is reputation and reliability of cryptocurrency trading platform. This criterion is the main as if the platform fails (hacker attack, for example), your money (digital assets, tokens) will be stolen.

How to analyze security level of the platform? It is hard to answer this question as hackers always develop new ways to penetrate those exchanges. As for reliability, this information can be found on different websites and forums including Bitcointalk, Reddit and the others.

What kind of information do you need? Everything related to the cryptocurrency trading platform activity including troubleshooting, security measures, how platforms’ team solve problems and the other aspects.

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Another important thing is where the exchange holds clients digital assets. Earlier, most of those trading platforms used hot wallets in order to provide fast access to coins and transactions for their clients. However, the situation has changed with the growth of hacker activities. Many traders remember the situation with MT GOX and some other trading places, which were hacked. Clients lost huge amount of money there.

Most of the contemporary best cryptocurrency trading platforms use different security measures including cold wallets. They hold up to 90-95 percent of clients funds on offline servers and require multisig in order to protect users from malware that may come from administration.

Several exchanges recommend to use two factor authentication, which improves security level as well. This means that you need to receive a special code in order to do important steps when working with platform such as withdrawal, for example.

👉MUST READ How to Trade Cryptocurrencies

Commissions  

All the best cryptocurrency trading platforms as well as the other trading places require commissions from their clients. The average fee is about 0.2 percent. However, recently exchanges changed their policies and establish dynamic commissions depending on trading volumes and some other important aspects.

When a trader looks for an exchange, he wants to earn more and pay less. It is logical and natural. However, we want to warn that lower fees do not mean better conditions for the trader. Sometimes such trading places with low commissions try to attract more traders as they have low liquidity.

The number of trading pairs

Different exchanges offer different number of trading pairs. The more coins are offered; the larger choice is for investors. However, we would like to mention that trading platforms may be divided into two groups here.

The first offer fiat money but low number of currency pairs. Those cryptos are interesting for those who want to start cryptocurrency trading and have no coins. Sometimes, traders choose those places first in order to buy popular coins like Bitcoin or Ethereum and then choose another platform in order to buy rare coins.

The second group of exchanges offer huge offer of different altcoins. However, there you won’t find fiat currencies.

When choosing one of those trading places you need to understand that the quantity does not mean the quality. The large number of coins is not necessary. It is better to find platform with those cryptos that trader is going to work with.

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Trading volumes

Liquidity is a very important criterion as trading volumes affect investors profits directly. Let’s suppose you choose a low liquidity coin with $500 daily volumes. It will be very hard to trade it especially when you have huge amount for trading.

This is the main reason why traders always try to find coins with higher volumes as they will be able to sell them without any problems. Exchanges have their liquidity as well. Those places with low volumes cannot provide you with high profits.

Payment methods

The best cryptocurrency trading platforms offer their clients a large choice of deposit/withdrawal including fiat money (via bank transfer), digital payment systems like PayPal, Skrill, Webmoney etc. Naturally, they provide traders with the opportunity to deposit any coin they offer for trading.

What kind of exchanges to choose according to this criterion? We think that the reply here is more than evident. The more payment methods are, the better is the exchange for every trader.

For those who do their first steps in crypto trading it is crucial to pay attention to those exchanges offering fiat money as they do not have coins and need them in order to start.

👉MUST READ What is Trading and Cryptocurrency Trading, Their Main Features

Verification requirements

It is not a secret that almost all exchanges require verification procedure from their clients in order to abolish all limitations. Those who to stay anonymous, have less opportunities. Sometimes, they are limited in daily trading or withdrawal capabilities. However nowadays there are still those trading places where you don’t need to confirm your identity. Most of those exchanges work with large amount of coins and do not offer fiat money as deposit/withdrawal mean.

Trading platform

Those who come to exchanges in order to simply buy or sell their coins, sometimes do not need even a chart as their aim is to conduct one operation without forecasting the market. However, professional traders always need more tools to take decisions.

Several of the best cryptocurrency trading platforms give an opportunity not only to place buy or sell orders, but also to make technical analysis using different indicators, Japanese candlesticks, timeframes etc. It is important to mention than the wider the range of those tools is the more opportunities any trader has.

The majority of those full functional platforms offer Tradingview charts. Those web tools provide users with different analysis instruments including the most popular and effective indicators both trend and oscillators as well as different chart types.

Type of cryptocurrency trading platform

There are three main types of those platforms and traders or investors need to know which one to choose. The first and the most widely spread is trading platform with many features that allow clients to not only conduct their analysis and forecast future price fluctuations, but also to conduct other trading activities choosing orders types etc.

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The second type of exchanges is p2p platforms, which are designed to provide users with an opportunity to work directly with each others avoiding a book of orders. Here you find those who are interested in selling coins to you or buying them from you.

Finally, there are brokers who offer cryptocurrencies to their clients. Those companies mostly come from Forex. They offer several coins from the top 20 and huge amount of analysis tools as they are designed for professional traders and investors.

User interface

The best cryptocurrency platforms have everything traders need to improve their results. We have already mentioned technical analysis tools but there are also some other features that need to be described. In order to satisfy different traders’ categories needs, exchanges provide them with news, volumes, book of orders and other useful information allowing clients to examine market situation.

The interface should be intuitive as there are many traders who work seasonally or come there for the first time. However, user experience is subjective as different traders may enjoy different interfaces.

The best cryptocurrency trading platforms always offer best user experience and they grow faster in volumes as the others. Those trading places are able to boost in a short period of time.

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Country of residence

Another important aspect to pay attention to is country of residence of the exchange. Why is it crucial to know this? Some US exchanges do not allow traders from wide list of countries due to their regulation. The situation is the same with some Asian trading places.

Those platforms are only available for the residents of the countries where they are established. Localization is also a key moment in decision taking process. Most of exchanges offer English versions for their clients. However, some international trading places allow users to use multilingual websites including several European and Asian languages.

Support service

Finally, we would like to mention support service as one of the criteria that is important when choosing the best cryptocurrency platform. Before you take your decision, try to talk to the support service using different means that the website offers.

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Look at their reaction speed as well as at answers that they give. If they do not aspire to help their clients, it is better to choose another one.

Best cryptocurrency platforms

Now we are going to give you the list of the best cryptocurrency platforms according to our view. Check it out below:

  1. Binance

  2. OKEX

  3. Huobi

  4. HitBTC

  5. BitFinex

  6. CoinEX

  7. Upbit

  8. ZB.COM

Those exchanges have high day trading volumes and offer the best services in our opinion as those aspects are connected. The best service a trading platform offers, the more clients it will have in the future.

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Top 10 Blockchain ETFs to Buy in 2019

  • Alex Morris

    Are top Blockchain ETFs simply tech stocks in expensive clothes? Find out whether you should invest in Blockchain ETFs if you are hesitant to buy Bitcoin

Top 10 Blockchain ETFs to Buy in 2019
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Why should investors buy top Blockchain ETFs?

Blockchain has become one of the major buzzwords in the tech space over the recent years, and it comes as no surprise that many want to capitalize on the revolutionary technology. That prompted the appearance of Blockchain ETFs where old meets new.

ETFs can be bought and sold in the form of stocks. While cryptocurrencies are generally deemed to be extremely risky, Blockchain ETFs that are comprised of the most established stocks on the market are considered to be a much safer choice. U.Today has come up with the list of top 10 Blockchain-oriented ETFs to invest in 2019.    

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BLCN

BLCN invests in stocks of the companies that are dealing with Blockchain. The ETF has more than 60 stocks. The advisory board of BLCN consists of crypto influencers who decide what stocks they should invest in.

Yahoo! Finance

Despite a bumpy start, Eric Ervin, the CEO of BLCN, is not deterred by disappointing numbers, taking a long view into the future. He believes that the technology is still too nascent, and we are dealing with a long-term investment.

BCNA

Reality Shares has yet another Blockchain ETF, and its focus is placed on China, the second largest stock market in the world. Ervin claims that China is betting big on the DLT technology — it has almost three times the amount of patents the US has. Not surprisingly, Alibaba is their main holding, but the fund also has exposure to China’s A-Shares — before they invest in a particular stock, they assess the number of Blockchain-related patents as well as the degree of innovativeness. Eventually, they only select the companies with the highest score.

Yahoo! Finance

BLOK

Amplify’s ETF was launched simultaneously with Reality Shares in mid-January of 2018. BLOK also intentionally excludes the words ‘Bitcoin’ and ‘Blockchain’ from its full name. Prior to that, the SEC issued a warning after a lot of stocks shoehorned these trendy words despite not dealing with crypto at all (case in point: Riot Blockchain (RIOT), which immediately saw its stocks skyrocketing).    

BLOK owns the stocks of IBM, NASDAQ, Overstock and other behemoths that are keen on the Blockchain technology.     

Yahoo! Finance

Notably, there is one key difference between BLOK and BLCN — Amplify is an actively managed ETF.

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BKC

Back in May, BKC joined the crowded Blockchain ETF space. Brian Kelly, a Bitcoin permabull and a constant CNBC contributor, spearheads the fund. The holdings with the highest weighting in the fund include Overstock.com, GMO Internet and Global Unichip. Kelly states that BKC is a top-of-the-mind option for those who would like to invest in cryptocurrencies without dealing with enormous price swings and security issues. Overall, BKC holds the stocks of 32 companies.

Yahoo! Finance

KOIN

The fund utilizes artificial intelligence in order to discover new Blockchain stocks. It specifically targets stocks with related keywords.   

Yahoo! Finance

Since the list of KOIN’s holdings includes many big-name companies in the likes of Microsoft and Visa, it is definitely a safe bet for investors, but the predominance of conventional stocks makes it hard to make sizeable gains. Investing in companies with low market capitalization is considered to be a huge risk for such funds.

LEGR

First Trust Indxx has three groups of Blockchain stocks:

  1. Stocks of companies that have already come up with their own Blockchain-related products (for instance, IBM).   

  2. Those companies that are already utilizing the Blockchain technology, but they use technology that has been developed by other companies.

  3. The last group of stocks is attributed to those companies that are only dipping their toes in Blockchain.

Such a diverse approach to investment is considered to be one of the main advantages of LEGR. However, the fact that the fund rebalances its holdings to other stocks only twice a year makes it less attractive than other options.

Yahoo! Finance

LDGR

A Blockchain ETF is supposed to be more than tech stocks in expensive clothes. LDGR actually offers to invest in companies that have a proven record of investing in Blockchain-related stocks. Just like in the case with KOIN, it cherry-picks the companies with the help of AI.

Yahoo! Finance

According to the company’s CEO Lewis Bateman, they are exclusively focusing on investing in stocks of those companies that already have Blockchain-related patents. Mastercard Inc. and Royal Bank are among their top holdings. It hasn’t been an easy run for LDGR, but the same can be attributed to practically any other ETF that was launched after January. However, Bateman claims that this LDGR stands out among the rest of earlier launched funds because of its robust buildout.    

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LINK

LINK is the first entry on our list that actually features the word ‘Blockchain’. In its portfolio, this actively managed fund features stocks of 31 global companies that are dealing with the nascent technology. Raj Lala, the CEO of Evolve ETFs, is a firm believer in the disruptive potential of the DLT, and the fund is an opportunity to capitalize on that.         

Yahoo! Finance

Things didn’t go particularly smooth for this fund since its stocks have shed more than 20 percent of their value since LINK’s inception in May. Hut 8 Mining Corp is at the top of its holdings list with a 10.8 percent share.

HBLK

Harvest Portfolios was responsible for launching the country’s first Bitcoin ETF, HBLK, which focuses both on large-scale and small-scale Blockchain businesses. Notably, this became the very first Canadian ETF that got the green light from regulators. Back in February, the Ontario Securities Commission approved the ETF.     

Yahoo! Finance

The main purpose of this ETF is to become an entry point for investors who are seeking access to the burgeoning tech sector. Subsequently, they buy the stocks of already established companies.   

BKCH

In June 2018, the Horizons fund was listed on the Toronto Stock Exchange (yet another Canadian Blockchain ETF on our list). In 2018, Blockchain ETFs became the salient feature of the country’s biggest stock exchange.  

Yahoo! Finance

The fund’s chief executive officer Steve Hawkins claims that he is not sure how big the adoption of the Blockchain technology is going to be, but the investments are necessary for building out the technology. BKCH, according to Hawkins, is focusing on well-established companies (the holdings of this ETF include the stocks of Nvidia Corp. and Digital Realty Trust Inc.).

What differs Blockchain ETFs from Bitcoin ETFs?

Since there is a lot of confusion, it is worth pointing out that no aforementioned Blockchain stocks are dealing directly with cryptocurrencies. The Winklevoss brothers were on track to launch their own Bitcoin ETF, but they didn’t get the approval from the SEC. Bitcoin ETFs are seen as a catalyst for the next bull market, but SEC commissioner Hester Peirce (better known as ‘Crypto mom’), claims that it could take years for the much-anticipated approval.  

Hopefully, this article helped you pick up the best Blockchain ETF! Stay tuned with U.Today!   

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