The digital currency market hit its highest peak in December 2017. The platform where we can exchange one cryptocurrency for another (or fiat money) is called a Crypto Exchange.
Traders can buy or sell Bitcoins or Altcoins on a crypto-exchange. The trade can be conducted using electronic monetary units, fiat currencies or other digital assets. Fiat currencies are currencies that the government considers legal, e.g Dollars, euros etc. A typical exchange works 24*7. One of the reasons people appreciate the exchanges is their anonymity. No one in an exchange knows who the buyers and sellers are.
The procedure might sound simple but you need to do your homework before deciding which exchange you might want to go with. Let us go through some basic properties of a good exchange.
- Reputation : How reliable is the exchange? The exchange is going to handle your money, possibly a lot of it, so you need to make sure that the exchange is trustworthy. So go for user reviews, check websites for commentary on the exchange and make your decision. You are always going to find some lousy reviews but as long as the pros are more than the cons, you should be good to go.
- Fees : How much is the exchange charging for a transaction? A reliable exchange lists its fees upfront. The fee depends upon the transaction type but anything below 3% should be considered. Always check for hidden withdrawal fees.
- Payment Methods: How to get money into your exchange wallets? Several services offer coin to coin transactions but others also allow you to pay in fiat with a bank account, a card or more.
- Verification Process: Most exchanges will ask you to maybe fill a form for account verification, provide a photo, your name, address and other details especially if you link your bank accounts before you can actually start trading. This can sometimes lead to lengthy delays in the verification process.
- Geographical Restrictions : Every exchange is not available globally. You need to research and make sure that you have full access to buy/sell before signing up for the exchange.
- Security : Securing your money should always be a priority. Look for an exchange that takes every possible measure to safeguard your money like SMS confirmations, captchas etc.
process. All you need is to verify your identity with a passport or an ID after which you can add your payment methods. The procedure might take a few hours but once verified, you In the world of cryptocurrency you will always need a reliable exchange. Let’s take a look at the top 5 exchanges suitable for trading.
Binance
Although Binance is new to the market, it has already attracted a lot of customers, thanks to its low transaction amount and a collection of coins to trade. The office is located in Hong Kong and Binance has one of the highest trading volumes. Binance does not deal with fiat exchanges so that does save a lot of verification processes. All you need is a valid email id and you are ready to trade. Also, Binance is prompt when it comes to customer services. Additionally, the exchange keeps on adding new coins. Binance serves worldwide with a transaction fee of 0.1 %. It nearly has 120 popular and trending currencies.
Bittrex
Bittrex is one of the big exchanges out there. The exchange is based in Las Vegas and the services aim at providing as many coin trading pairs as possible. Bittrex has two levels for your verification – basic and enhanced. The basic verification will set your trading volume at 0.4 BTC and will ask for a few basic details to match your identity with the public records. Failing this level (which often happens) you will be directed to enhanced verification. Here your trading volume will jump to 100 BTC but you will have to provide an ID scan and selfie. Bittrex struggles in its track record with the customer services. Many users have complained about the support system in reviews.
Coinbase
The Exchange was founded in 2011 and took only 6 years to become a successful exchange with over 13 million users. Its headquarters are in San Francisco. Credit and debit card purchases are encouraged but with a heavy fee of over 4%. Buying and selling is an easy are ready to trade. The exchange serves 30 countries at present including U.S, U.K, Canada, Australia and more. Coinbase is more your thing if you want to deal with the popular cryptos only. The transaction fee varies from 1.49% to 3.99% depending on the payment method and your location.
Kucoin
Kucoin was founded in 2017 but already has a good following. The coin deposits are faster and you get a variety of coins to choose from. Kucoin interface is one of its assets. Also, it has a proprietary Kucoin share tokens which can be purchased and also used for trading. Kucoin validates your account with a photo ID and a selfie, but it isn’t necessary for trading, just referral linking. For trading you just need your email id and you are ready to go. Kucoin serves countries worldwide. The transaction fee averages at 0.1%.
Poloniex
With a clean interface, margin and lending trades and dozens of altcoin pairs, poloniex is available to users around the world. If you have some coins stored in your wallets, poloniex can help expand your investments with simplicity. The verification process will require your basic details and a selfie. It might feel weird to click for an exchange but it’s better to send a selfie than snaps of your passport. Poloniex also has its fair share of complaints. Back in 2014, the exchange lost over 12% of their bitcoins in a hack. No major security breaches have been reported since but it may be noted that their ticket response is still a bit messed up. Poloniex serves worldwide and the transaction fee varies from 0-0.25% based on the trading volume and activity
Closing thoughts :
It seems a new exchange keeps popping up every week. Some of them are genuine competitors to the already established services while others just aim to make quick cash. The best defence is to stick around with a reputable exchange. The best exchange for you is the one that suits your needs.
So what do you think about the above-listed exchanges?
PCEX is a new and secure cryptoexchange with unparalleled features. With a platform supporting both crypto-to-crypto and crypto-to-fiat trading, high liquidity, low fees and fast order-matching, PCEX promises to be a hull-service platform.
