Trading on a crypto exchange is now a multi-billion dollar industry. During the late surge of 2017, more than $50 billion in crypto was being traded in just a single day. The idea is simple. Visit a crypto exchange, trade one coin for another and then hope to make a profit. However, deciding which platform to use can be a headache. This is because whilst some are good for advanced users that have excellent knowledge of how trading systems work, others are better suited for beginners. This simple guide will discuss 3 crypto exchanges to suit anyone’s needs.
Coinbase – The beginner’s platform
Created in 2011, Coinbase are the most recognized crypto exchange operating in the market. One of the main selling points of their platform is that they allow users to buy coins using traditional payment methods such as a debit/credit card or a bank account. This provides an easy barrier of entry for those looking to buy crypto for the first time.
To mirror the websites simplicity, this particular crypto exchange only sells 4 different coins – Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). A further benefit of using Coinbase is that users can also withdraw their crypto holdings back into real-world money. Moreover, their customer support team is highly rated, offering both email and phone assistance.
Just remember that as you will be using fiat currency to deposit and withdraw, you will need to complete a simple KYC (Know Your Customer) process, which includes uploading a copy of your ID. Moreover, if using your bank card to buy coins, the fees are quite high at 4% per transaction.
Binance – The alt-coin lover’s dream
Binance joined the blockchain revolution as recently as 2017, however they have quickly become one of the most popular crypto exchanges. They list more than 100 different alt-coins, making it an ideal avenue for those looking to trade less established coins. In fact, when new cryptocurrencies are released, Binance are often the first crypto exchange to list the coin.
Unfortunately, Binance do not allow real-world fiat deposits using a debit/credit card or bank account, however this is something that they plan to offer in the near future. Instead, you will need to deposit and withdraw using a cryptocurrency.
The Binance platform has both a basic and an advanced version, which is suitable for both beginner’s and more experienced traders. There is no phone support service, however the team are quick to respond to email enquiries. Trading fees are one of the lowest in the industry, which comes out at just 0.1% per trade. Furthermore, if using the platform’s native Binance Coin (BNB), fees are reduced by an additional 50%.
Bittrex – The exchange for trading pros
Bittrex was creating in 2014 and has cemented itself as one of the most useful crypto exchanges for advanced traders. In fact, its platform has become so popular that they had to suspend new account registrations in December 2017 as they were flooded with new applications!
The Bittrex platform takes things one step further. Not only can you trade over 200 different coins, you can also involve yourself in more advantaged strategies such as arbitraging, as well as providing more common tools such as crosshairs and candlestick charts. The underlying technology is also highly rated, with very little interruptions of the network. This is of utmost importance if you are a serious day-trader, as even a few minutes without service could be costly.
Although trading fees are not as low as Binance, they are still competitive at 0.25%. There are no fiat currency deposit facilities so you will need to fund your account using a cryptocurrency.
You now have 3 popular crypto exchanges to choose from and your decision will depend on what you are looking to achieve. If you just want to buy some Bitcoin for the very first time, Coinbase are best suited for this as they will allow you to use your bank card. However, if you are more interested in trading different coins, then Binance and Bittrex are your best bet. Whichever option you choose, good luck!