Crypto market had been increased at about 800 billion dollars. Astonishing, yes 7 years ago somebody had bought a pizza worth 10,000 Bitcoins. Which today worth at 170 Million Dollars. There are lots of places and exchanges you can sell and use your bitcoins. Not only the Bitcoin but there are about 1400 cryptocurrencies are present and the number is still increasing. And also the number of cryptocurrency exchanges are increasing. Not only the renowned like Binance, Coinbase, Bittrex or Poloniex But the New Exchange like Kucoin are also performing well. How could you spot the best cryptocurrency exchange and How to avoid the worst exchanges.
Cryptocurrency exchange helps you to trade in different cryptocurrencies. Most of the cryptocurrencies do allow Litecoin, Ethereum and Bitcoin trading. While the selected few have unique cryptocurrency listing. All exchanges had their set of rules to get coins listed. e.g. Binanace lists some of it’s coins through Community which called as the Community coin of the month. And several other criteria does implies with the coin listing, Market Cap, team, project and more. Exchanges like Cryptopia does allow new coins to be listed, and some coins are also community coins or team had low experience. Security is also a major issue for traders. In 2014 we had witnessed the Mt. Gox where 850,000 bitcoins were stolen.
Do you Know how much that worth 12 Billion US Dollars. That is insane money, and people lost theirs. There are some of the criteria you should consider before giving your money into the exchange. How to find the right exchange suited your needs I would help you with that. There are factors you can consider before using a exchange. Different exchanges does have different pro and cons. Due to high inflation many exchanges had temporarily stopped new registrants and also some are lagging. At the end of this post I will list some of the best and secure exchanges where you can register and start trading ASAP.
Best Cryptocurrency Exchange To Use in 2018
- 1 Which are the Best Cryptocurrency Exchanges?
- 2 How to Choose a Exchange?
- 3 Conclusion
Which are the Best Cryptocurrency Exchanges?
I am only listing here the exchanges which i am currently using and i will recommend you to Use.
Kucoin is fairly new exchange. But this exchange is performing well and is my personal favorite. You can trade on the go via Kucoin app. Kucoin was the first exchange to support NEP-5 tokens and also Neo rewards are distributed among users. Transactions are fast and reliable. It also hosts good promotions to rewards it’s users.
Binance is China based exchange, Although it’s not yet opened to Chinese users. It has also multi language support You can trade in Chinese, English, Japanese, Korean. Customer support is good. It also host good promotions which is cherry on the cake. The trading fee on Binance is lowest. You can also trade on the go via Binance App.
Bittrex is a Las Vegas, US based and regulated exchange. It supports more than 190 cryptocurrencies and offers speedy transactions, high stability, and follows some risk management practices. Their KYC process is fast. You can verify yourself and can increase your withdrawal limit to 50 BTC in some hours.
You can directly swap your currencies to market rate in changelly. It’s simple to use and transactions are faster.
Cryptopia does have high liquidity than others. but you can always find exclusive coins here. You can trade over 400 cryptocurrencies in cryptopia. and You can also convert your cryptos to NZDT and can deposit NZDT to cryptopia and can trade directly.
Etherdelta is the only one decentralised exchange. It only supports Ethereum or ERC20 tokens. Here you only need an ethereum address to login you can also make one there.
How to Choose a Exchange?
Location plays a major role to use a cryptocurrency exchange. As on major exchanges bitcoin is sold as USD pair. So for other countries one can choose exchange which they can use with their currency. As in Thailand you can buy bitcoin on TDAX with Thai baht. In India you can buy Bitcoins with WazirX, You can trade on cryptopia using New Zealand Dollars . Anyhow you can always trade in Bitcoin or any other Cryptocurrency in each country. But to withdraw or buy Bitcoins you must choose a Exchange or Broker where you can sell/buy them in your native currency.
Often we see the difference in the buy and sell orders. The difference is sometimes lower around 1-2% which is fine and in some cases the difference in 10-20% which is not OK. The markets with higher liquidity should be avoided.
In the exchanges with high liquidity you may get more difference in buy and sell bids. And thus you cannot sell your buy bid immediately. This also causes accidental bids, which turns into loss in funds.
There would be instances when your transactions get blocked, or they take more time then needed. Users have to get customer care. What happens if they take weeks to reply, There are lots of the issues which have to address in the shortest time possible. You should also take this criteria when choosing a exchange.
Different exchanges does have different trading fees. These fees apply when you place a buy bid or sell bid. Most of the exchanges have 0.025% maker fees and 0.01% taker fees. You should not trade with higher than these fees.
The maker fee applies when you place a limit buy below market price or a limit sell above market price. The maker fee is paid only when such orders are taken by new incoming orders.
The taker fee applies when you place a market or limit order that executes immediately against a limit order already on the book.
In simple words Limit buy/sell bids consists of maker fee and Market orders consists of taker fee.
Some exchanges like Binance or Kucoin gives 50% Off on trading fees.
Transaction fee is applied when you withdraw from an exchange. However you won’t be charged for deposit transaction. You should choose a exchange which have lower transaction fees.
I would be writing a post about how could you get the lowest transaction fee and can get the fastest transaction in next post.
Security must be your top most criteria for choosing an exchange. Less secure exchanges could let you lose your funds. So those must be avoided. We won’t want to repeat Mt. Gox incident. Or lose a penny of our hard earned money. Check exchanges for cold storages. Exchanges could be attacked via trojan viruses or phishing attacks.
Cold storages are those which are never connected to internet. thus keeping your balances in the offline wallet and making them more secure. If you want to hold your coins i would suggest you to store them in Ledger or any desktop wallet. Keep only trading balance in exchanges.
You must enable 2 factor authentication in your exchange account. This step is also very important to safe keeping your coins. Always enable these options, I would recommend you to use Google authenticator.
Reputation and Social presence
You must also check exchanges reputation online and social presence. Check exchanges twitter, facebook page. Those are also helpful when you need to reach customer support. Some exchanges does have telegram and discord channels there you can interact with the users and can check their customer experience. This would also help you to select the best cryptocurrency exchange.
You can always find a good exchange. There are also many good exchanges than the listed ones. There are also more good exchanges viz. Coinbase, Poloniex, Bitfinex, Kraken, Livecoin, etherdelta, OKex, Huobi etc.
There are some exchanges which i won’t recommend you to use. Those are Coinsmarkets, Liqui, Tdax. Coinsmarkets is unexpectedly down for last few days and also they had no social presence or any office address. In Liqui and Tdax exchanges i did experienced customer support issue and transaction errors there.
You can always find the best exchanges which suits you well. You can use above mentioned exchanges or find a good one via how to choose a exchange.