With cryptocurrency’s fast growing popularity, a lot more people and companies have ventured in investing and trading into this “Digital Money”. Since the creation of Bitcoin in 2009, it has revolutionized our entire concept and understanding of the traditional fiat currency. Along with the rapid increase of crypto traders, also came the development of various trading platforms.
Cryptocurrency exchange platforms are online websites or applications that allow you to buy, sell or trade cryptocurrencies for other digital currencies or even with our conventional currencies, like US Dollars or Euros. Some platforms also let you view each crypto’s charts to check the fluctuations of their value. If you are looking to start trading cryptocurrencies, you first need to study which exchange platform you think is best for you.
There are numerous factors in which we need to consider in choosing the best platform to start our “Crypto-trading Journey. Here is to name a few:
Transaction fees. We need to understand and bear in mind that all exchange platforms have varying trading structures and rates.
Liquidity. It is defined as the ability of an asset to be converted into cash, on demand, without any difficulty. High liquidity levels mean that the cryptocurrencies are most likely to be stable and that the price fluctuations are kept to a minimum.
Available currency pairs. Currency pairs are crucial in crypto trading to expand your choices in which currencies (USD, Euro, etc.) or altcoins you want to exchange your Bitcoin with. And the most important one,
Feedback and reviews. It is best to read on articles or comments regarding their usage of the platform and try to assess if it is beginner-friendly.
Based on the stated factors above, here are my Top 3 Best Cryptocurrency Exchange Platforms:
COINBASE
This US-based company founded in 2012, is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies. However, this platform only supports bitcoin, ethereum, and litecoin. If you are looking to mainly trade or buy these 3 coins, this would be perfect since Coinbase also has their own mobile app that supports both IOS and android smartphones.
Most fees in Coinbase are around 1-2% depending on the payment method you are using. For example, in the USA, they charge you 1.49% of your total desired amount. This is a great platform for beginners in the crypto world because of its user-friendly interface and intuitive design.
BITTREX
This is another US-based company that supports up to 190+ cryptocurrencies. If you are looking to trade altcoins, you could use this platform. However, the liquidity is often low and might cause spikes in the price fluctutation of the cryptocurrencies.
Graphs are also available for you to analyze the movements of the coins and tokens. Trading fees are a solid 0.25% and has no reductions for the users, given the high security measures of the platform, the high trading fees are somewhat understandable.
BITFINEX
Crypto traders worldwide are putting their trust into this Hong Kong-based company, all because of their full-featured exchange platform which includes customizable charts with price notification, margin trading and allows unlimited withdrawal. This also supports not only the leading cryptocurrencies, but also a number of verified altcoins. With their own mobile app, it allows on-the-go trading for both IOS and Android users.
Fees in Bitfinex range from 0-2% depending on the trading volume. This might not be suitable for starting traders who are unfamiliar with trading platforms but once learned, it can be a very useful tool. Despite of the security breach back in 2016, Bitfinex has been doing extreme measures to verify user identities until the present.
Take time to learn and understand the limitations of each platform to best assess which is best for you. Each offers a different feature for you to enjoy so choose wisely. Start your Crypto Journey with the right tools and it will lead you to the right path.
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