If you want to buy or sell cryptocurrencies, first and foremost you have to use a cryptocurrency exchange. Cryptocurrency exchanges or crypto trading platforms are online services that operate just like a stockbroker. Cryptocurrency exchanges provide you with tools, which you can use to buy and sell digital currencies. These digital currencies can be bitcoin, ethereum, and dogecoin, etc. The most reliable cryptocurrency exchanges have a low fee and high-quality secure working. They make it easier for you to buy and sell cryptocurrencies.
In today’s market, there are over 200 cryptocurrency exchanges with a 24-hour trade volume in billions. This can make the process of choosing and deciding on a cryptocurrency exchange very overwhelming. This is why there are many core factors and important features to consider before making that decision. For example, it is essential to have a look at supported currencies, withdrawal options, pricing, and security.
These are the five important features to look for when choosing the correct crypto-trading platform for you:
- Restrictions and geographical location
- Transaction fees Security and anonymity
- UI and ease of use
- Volume and liquidity
Take note that cryptocurrency exchanges should be used for selling and buying. Not for storage of cryptocurrency.
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Restrictions and Geographical Location:
One of the most important things to consider during choosing a cryptocurrency exchange is geographical location and restrictions. A major part of the cryptocurrency exchanges has a limit to their geographical scope. So, it is best to do research and figure out whether the crypto exchange is accessible from your country or not.
The legal factor and accessibility of any crypto exchange can be based on its proper licensing and certification. And whether the country’s law regulates blockchain and crypto or not.
One of the largest crypto trading platform in the world is called Binance, open to every country out there. Except when a country is on the economic and trade sanctions list, it becomes inaccessible.
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Security and Anonymity:
One of the topmost priorities of the crypto exchange is security. If an exchange is insecure, your funds could be stolen, leaving any other advantages it offers worthless. A decentralized exchange highly prioritizes security and anonymity. These exchanges allow users to sign up with complete anonymity and do not reveal any personal information.
Make sure you look for the crypto exchanges that have:
- A two-factor authentication – Either Google authenticator or SMS.
- Anonymous sign up.
- Complex captcha codes.
Once an exchange has all three of these features, you can be sure you have taken complete precautionary measures in choosing the right cryptocurrency exchange.
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Volume and Liquidity:
A high trading volume depicts a high liquid-specific exchange. Liquidity makes it possible to complete transactions faster, easier, and without any price volatility.
A good indicator of a crypto’s exchange liquidity and its ability to fulfill a user’s order at any time of the day is its large volume of trading.
This is why liquidity is another major factor that you should take into account before purchasing or selling cryptocurrency.
Be careful that liquidity can be different for different trading pairs. For example, it can be high for BTC/EUR, but low for BTC/GBP.
To make it easier for you, we have compiled and listed some of the best cryptocurrency exchanges of 2021:
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Coinbase:
The cryptocurrency industry has always tried to stay vigilant with shady coins and deceitful exchanges. Coinbase is an exchange, which has been highly avoidant of any such controversies. Coinbase is one of the cryptocurrency exchanges which make purchasing and selling cryptocurrency easier. They have strong security and have transparent pricing. High liquidity and a very simple user-friendly interface are also another one of its bonus features. They have a good variety of altcoin choices.
Coinbase also offers a Coinbase Pro version, which has lower fees and a higher number of features.
Transaction Fees for Coinbase are $0.99 to $2.99, and up to 0.50% for Coinbase Pro.
Investors and traders of crypto can get insured custodial wallets to store investments using Coinbase. Coinbase has high insurance against data breaches. Cash is store in FDIC-insured bank accounts which ensures security against any hacking.
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B2BX:
B2BX is currently featured in the list of the Top 50 Cryptocurrency Exchanges, taking 15th place, according to CoinMarketCap. B2BX has a selection of methods for deposits and purchasing: that includes Bank Transfer via SWIFT and SEPA, UPay, Card Epay, and Mistertango.
They have 24-hour liquidity of USD 11.6 million (source Coinmarketcap’s Liquidity List). B2BX has higher stability and less volatility.
There are two types of APIs offered by B2BX: WebSocket and REST. Using the API, users can get public information like tickers, volumes, order books, and trades.
Fee:
The trading fees of B2X are 0.15%% for takers and 0.12% for makers.
Mobile Application:
B2BX also has a mobile application, that helps users to monitor charts, order books, and make crypto deposits. The app has quick access to settings and users can observe and analyze their charts more conveniently.
Advanced Interface:
B2BX trading platform is a high-performance matching engine, that has a dynamic layout. They have a multitude of workspaces with various widgets, volume groupings, and watchlists.
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Binance:
Binance has transactions fees of 0.012% to 0.12%. They have lower fees than other exchanges. They also have a larger variety of cryptocurrencies.
Found in 2017, Binance’s main focus was altcoin trading. Today, in 2021, Binance is one of the largest cryptocurrency exchanges in the world. Binance allows users to make deposits in U.S Dollars via SWIFT. Users can purchase several cryptocurrencies with a credit or debit card. It offers over 100 different trading pairs of cryptocurrencies and it also has fiat-crypto pairs.
Binance is more geared towards more advanced users and is not supported in all states.
