The currency exchange market is an established medium for traders interested in making money, but the rise in cryptocurrencies has made it even more exciting!
The novelty of cryptocurrencies and the skyrocketing rise in the value of bitcoin and altcoins mean that traders can make huge gains by trading cryptocurrencies. This in turn has also triggered the emergence of various trading tools such as the Bitcoin Revolution.
You no longer need to be a tech geek to trade cryptocurrencies. There are several cryptocurrency exchange platforms that allow you to do this online. They all differ in important ways. The ideal exchange for cryptocurrency trading should offer low rates, high multipliers, and a range of currencies for you to have a diverse portfolio. The functionality to easily buy new cryptocurrencies with fiat money is also very important.
To find out which cryptocurrency exchange is the best for all traders, we took a look at the 4 most popular cryptocurrency trading platforms and compared key points:
We started with the largest cryptocurrency exchange in the world, Binance. A popular platform, Binance encourages users to purchase their own currency, Binance coin (BNB), which comes with a discount on crypto-crypto payments.
As such, Binance offers more than 140 cryptocurrencies, including bitcoin, bitcoin cash, bitcoin gold, ethereum, ethereum classic, EOS, DASH, Litecoin, NEO, GAS, ZCash, Ripple, and many others. When trading these currencies, there is a 0.1% fee.
Binance also introduced the SAFU (Secure Asset Fund for Users), which collects 10% of all trading fees generated by the exchange, to return values to users in the event of a hack. This measure came into force when the company was hacked in May 2019 and users were paid for the hacked funds.
Even popular, Binance is somewhat limited for margin trading, having a 125x multiplier and being more limited than its competitors. Your hierarchical system of ‘basic’ and ‘advanced’ traders can also feel limiting or very complex for new users.
Kraken, founded in 2011 by Jesse Powell, is not a purse dedicated to cryptocurrencies, as it also facilitates the exchange of fiat currencies, such as the euro, yen, dollar, pound, etc. Kraken has more than 17 cryptocurrencies, including bitcoin, bitcoin cash, bitcoin SV, cardano, DASH, dogecoin, EOS , ethereum, ethereum classic, litecoin, monero, ripple, tether, Zcash, and more.
While offering high liquidity and interesting fiduciary options, users should be wary of rate variations, which can reach up to 0.26%. Kraken also received criticism from users for having a non-intuitive interface, taking time to process transactions, and arbitrarily closing accounts without explanation. Margin trading is also limited to 5x leverage.
Headquartered in Hong Kong, BitMex, or Bitcoin Mercantile Exchange, is one of the world’s leading bitcoin exchange platforms. As the name suggests, it is focused on bitcoin, the cryptocurrency with a dominant market share. Other supported currencies include Bitcoin cash, cardano, ethereum, litecoin, EOS, and ripple – but be aware that trading conditions for altcoins are often less favorable than for bitcoin.
Although BitMex offers leveraged contracts and margin trading, its narrow focus on bitcoin limits traders who wish to have a more diverse portfolio. In addition, BitMex is not available in the USA and does not accept payments based on the USA.
Huobi was founded in China and supports a large number of cryptocurrencies – around 250! Huobi operates two different platforms: Huobi OTC (cryptocurrency trading with fiat currencies) and Huobi Pro (with more advanced trading functions). Rates are low but variable, depending on the volume of the transaction.
Huobi is popular, but is focused on the South Asian market with limited development in other regions served by the global version. This may be to avoid regulatory oversight or consumer surveillance – Huobi has previously been accused of tampering with transaction volumes.
The era where cryptocurrencies dominate is likely to come soon. It is a revolution where advances in Internet technology make all of this possible.