Crypto Exchange Reviews

What is a cryptocurrency exchange?

This is a platform which allows you to buy and sell the cryptocurrency which the government has declared a legal one and this is called as crypto currency.

You must know the different types of the cryptocurrency exchanges. There are many ways of the distinguishing the exchange of the crypto currency. One of the ways is the tradable currency. In this type, it can be either a crypto-to-crypto exchange or a fiat exchange.

Crypto-to-crypto exchange: In this  type cryptocurrencies can be exchanged for each other. The crypto pair widely traded is Ethereum vs Bitcoin.

Fiat exchange: This allows the exchange of cryptocurrencies with the government-backed currencies 

Cryptocurrency exchanges can also be classified as:

Cryptocurrency brokers: They are similar to the currency changes, the brokers ease the  buying and selling of the customers at prices decided by them, which is the current market price usually and a small premium.

Direct trading platforms: These Direct trading platforms facilitate peer-to-peer trading between the buyers and sellers, without any middle man.

Traditional cryptocurrency exchanges: These function just like the traditional exchanges, where the buyers and sellers trade in the cryptos based on the existing  market price. Here, the role played by the exchange is like a middleman helping in the transaction.

How do you get started?

Once you verify your identity, it allows you to buy Bitcoin using either the cash in your bank account or a credit card. 

If you wish to trade using the Bitcoin you bought, it has to be moved to the GDAX trading platform.(Global Digital Asset Exchange). Bitcoin can be deposited and it will instantly show up in your balance.

Factors to consider

Security:

Legitimacy and security of a platform is very important to be considered while choosing an exchange. Recently, South Korean exchange Bithumb was hacked, and the exchange loss was equivalent to $31.6 billion.

Crypto currencies supported:

A potential investor may do well to look out the around for exchanges, which allows the trading in all tokens.

Fees and commissions:

The fees and commissions of the high-volume trader may eat into your profits.

Mode of payment:

There are many permissible payment mode such as cash, wire transfer, credit cards, payment through PayPal, etc.

Geographic location:

Choose an exchange in the country of residence, as legislation and policies governing an exchange vary among countries.

Ease of use:

It is very simpler to use, especially when you are using a complex financial instrument.

Best for breadth of coins

Among the many fiat exchanges, the  Bittrex allows the trading in over 100 tokens, while Bitfinex supports 39 tokens. Kraken is the next best, it supports 17 tokens, and then it is followed by Kucoin, which supports 12 tokens.

Meanwhile, crypto-to-crypto exchanges such as Poloniex and Changelly support 66 and over 100 tokens.  Binance is a Chinese exchange which allows trading in over 350 currencies.

Best for number of countries supported

Coinmama, Bittrex and Kraken are the fiat exchanges which would  support about 200 countries but they are not available to all states in the U.S.

Best for commissions and fees

A maker fee is one which applies to a market maker, one who places limit orders on the order books.

Since market makers help avoid wild swings, they are rewarded with a lower fee. However, taker fees become applicable when an order is placed that is immediately filled in entirety.