The universe of cryptocurrencies is expanding at a rapid speed! Over the years since Bitcoin started off the crypto-revolution, over 1500 cryptocurrencies now exist. Along with the increase in the number of cryptocurrencies, there is also a marked increase in the number of cryptocurrency exchanges! Cryptocurrency exchanges are a critical aspect of the cryptocurrency universe. Similar to the currencies, there are hundreds of cryptocurrency exchanges today. Let us take a look at some of the top exchanges and which of them would be the best cryptocurrency exchange for you!
A List of the Best Cryptocurrency Exchanges
Having started off in mid-2017, Binance is the newest name on this list. However, despite being the latest addition to the list, it has been topping the charts when it comes to daily volume of transactions. In less than a year, the exchange has managed to gain the trust of millions of people, as well as that of investors. Binance has managed to raise $2 Billion in funding in less than six months of its existence - making it the fastest growing unicorn startup in the world!
Another reason why Binance tops the list when it comes to the best cryptocurrency exchange and why many traders are attracted towards Binance is the fact that it offers safety in trade. The platform has been the target of many attacks but has never been hacked. A recent attack took the platform down for several hours, but Binance resumed trading - another attack was foiled where hackers ended up losing money! Binance has also set up a hacker bounty program (first of its kind in the crypto-world).
The exchange offers users from all across the globe to trade on their platform and offers a large number of coins to trade from. They also have their own cryptocurrency token, the Binance Coin. Binance is also quite simple and easy to use. Practically anyone can join the platform and begin trading on Binance.
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Another popular name which comes to mind when looking for the best cryptocurrency exchange is that of Bittrex. This cryptocurrency exchange offers the users with a simple and easy to use platform, which is good for beginners. While Bittrex, at the moment, supports only cryptocurrency-to-cryptocurrency trade, USD trading pairs are coming to the platform soon.
Bittrex too, like Binance, is a very safe platform. It ensures the safety of its users and offers a number of options such as 2 Factor Authentication and new IP verifications which ensure that only authorized users can log in. Bittrex is selective about the cryptocurrencies it lists. While there were hundreds of currencies listed on the platform, Bittrex has now decided to remove 82 currencies which were not being traded actively or had broken blockchains. This ensures that practically all the currencies on the Bittrex platform are safe to invest in.
Bittrex allows users of all nations to trade on their platform (except the nations where the US government has imposed trade sanctions). Another great feature of Bittrex is the fact that it offers a number of trading and analysis tools. For professional traders who like to analyze graphs and historical values of the currencies, Bittrex is the best cryptocurrency exchange! However, don’t let these technical tools fool you, thanks to its simple User Interface, Bittrex also has a great platform for beginners as well!
Poloniex is another major name and a strong contender for the title of the best cryptocurrency exchange. The exchange has been making it to the news lately over the $400 Million sale of the platform. Having been acquired by Circle, Poloniex is all set to get a major cash flow behind them - which will help the platform to grow even further.
The platform offers great tools for analyzing various currencies which pro-traders can make use of to analyze currencies before actually investing in them. Poloniex offers a simple user interface, though Binance and Bittrex appear more pleasing to the eye. There have been some attacks on the Poloniex platform in the past and some traders have incurred losses, but that is now a thing of the past as it happened years ago. The platform is now much more secure and efficient than ever before, equipped with new and improved security measures.
Other Cryptocurrency Exchanges
A number of other platforms too, compete for the spot of the best cryptocurrency exchange. These are the likes of Bitfinex, Huobi, Bithumb etc. The title of the ‘best cryptocurrency exchange’ is subjective based on the needs of the trader. Let us take a look at what are the factors that a trader must keep in mind to choose the best cryptocurrency exchange.
Factors that Help Determining the Best Cryptocurrency Exchange
The country in which the cryptocurrency exchange is an important factor that needs to be kept in mind before choosing the exchange. This is due to multiple reasons. First off, choosing an exchange based in your nation would eliminate the cost of currency conversions. A person living in Japan trading on a US-based exchange would first need to convert his currency into dollars and then buy cryptocurrencies using those converted dollars.
Choosing a cryptocurrency exchange based in your country would help avoid this currency conversion fees. Moreover, it is always suggested to choose a cryptocurrency exchange based in a country where laws are stable. Exchanges based in countries such as China or Russia, where the government may suddenly turn hostile is not recommended. Choosing exchanges based in countries with favourable cryptocurrency laws is a smart move.
Security is a basic need when it comes to cryptocurrency exchanges. Platforms such as binance are considered among the best cryptocurrency exchanges because they offer a strong security measure. Platforms must ensure that they are protected from hacking attacks, as well as the fact that users remain protected by offering services like 2 Factor Authentication and IP address verification. Binance and Bittrex top the charts when it comes to security.
The currencies that a cryptocurrency exchange supports also plays a major role in determining the best cryptocurrency exchange. It is not only the quantity of the currencies supported but also the quality of the currencies. In a time where Cryptocurrency platforms are charging between $50,000 to $1 Million to list ICO tokens, reputed platforms list only selective currencies. This is where the likes of Bittrex and GDAX stand out, as they list legitimate and top currencies only.
Payment methods are another important factor that every user needs to keep in mind while selecting the best cryptocurrency exchange. Not only does an exchange need to have a wide variety of options in which it accepts money, but also a wide variety of options using which traders can withdraw money. PayPal and Credit Cards, for example, are a feature that even some of the top cryptocurrency exchanges lack!
Another thing that needs to be kept in mind: Is the platform user-friendly? Does it offer an easy to use layout for the beginners, as well as does it offer tools of analysis for the pro-users? Exchanges should be beginner friendly where even a first-timer can easily operate them. Depending on your experience in trading cryptos, all the options that you need should be present.
Finally, Privacy is also a critical factor for some users. While most major cryptocurrency exchange platforms involve you to go through a KYC process, as is mandatory by most governments now, there are some exceptions to this. For users with a need for privacy, the best cryptocurrency exchange needs to be private and keep their identity anonymous. Recently, Coinbase, one of the biggest cryptocurrency platforms in the world, had to submit details of 13,000 users to the US Government.