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.
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.
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.
Eric EisslerCommissions
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.
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.
Vera YurinaVerification 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.
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.
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.
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:
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Binance
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OKEX
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Huobi
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HitBTC
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BitFinex
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CoinEX
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Upbit
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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.
Dan Burgin
Yuri Molchan
Alex Dovbnya
Vladislav Sopov