Back in 2010, a mere decade ago, only a handful of people had heard about cryptocurrencies, and even fewer people knew what bitcoin was and how exactly its system worked. The main platform to exchange bitcoin was called Mt. Gox. On the first day only 20 BTC were sold - merely three months later the daily turnover surpassed 150 000 coins. In May 2011 as many as 31200 users had been registered on the exchange. Such a turn of events lead to the emergence of new cryptocurrency exchange platforms, however, Mt. Gox itself ceased to exist in 2014 after a successful hacking attack.
Currently, the situation has evolved dramatically - online cryptocurrency exchanges have become, perhaps, even too numerous, which makes it incredibly difficult for inexperienced users to choose the exchange they might want to try out. If you too feel overwhelmed with the wide array of exchange platforms, this article will discuss the most popular cryptocurrency exchange platforms and explain which factors are the most vital when it comes to picking out a platform for digital asset exchange.
The criteria for selecting the best cryptocurrency exchange
The sheer multitude of exchanges currently available on the market might seem overwhelming, especially to those whose interest in the cryptocurrency has only just begun. To make selection out the best cryptocurrency exchange easier, try consider these following key points:
Reliability and reputation.
The better the reviews, especially on popular cryptography forums such as Bitcointalk or Reddit, the more trustworthy the exchange is. Investing your money on an exchange with an ambiguous reputation is most likely not worth the risk. We advise to seek and listen to the experiences of other users and to choose verified (and therefore the safest) platforms.
Cryptocurrency exchanges charge a fee for their services. The value of the fee is different for different exchanges, however on average it is estimated to be around 0,2%. Recently, the commission fee on many different exchanges has not a set but a dynamic value: the percentage of the commission decreases along with the increase of trading volume.
The bigger the choice of currency pairs on the exchange, the more means to profit. The pairs could include both popular, liquid cryptocurrencies, as well as less liquid altcoins. It is important to remember, however, that the quantity is not always the key to success. It is more vital to have an optimal set of currency pairs, that can ensure an effective and productive trade.
Daily trade volume.
The higher the trade volume index, the better perspectives of profiting. It is very unlikely to gain much money on a platform where the daily trade volume index is as low as 50 USD. A high trade volume index reflects the success, popularity and impact a certain exchange has on the cryptocurrency market.
The more payment methods available, the more possibilities of digital asset transactions. Some exchanges allow only to use cryptocurrencies and do not allow to use fiat money, while on other exchange platforms it is possible to use various monetary assets.
Every exchange has its pros and cons. One can offer a lot of currency pairs, another a convenient process of money allocation and withdrawal or low commission fees, and yet another one - a comfortable interface. That is why you don’t necessarily have to limit yourself to just one exchange platform. Try registering and operating on a few different ones to make the absolute most of your capital.
Daily trade volume
$2 461 776 458
$1 159 581 863
$732 485 409
$699 184 408
$698 520 853
$628 919 578
$512 116 477
$282 018 926
$113 581 446
$55 706 683
Daily trade volume of a cryptocurrency exchange is one of the most important factors to consider - it reflects the scale, success and impact the platform has in the global cryptocurrency exchange market. The bigger the trade volume, the more active users the exchange has, which in turn provides more transaction opportunities.
A list of leading cryptocurrency exchanges in 2020
We present you with short reviews of the biggest and most renowned cryptocurrency exchanges in the world. As they have been tested out and approved by hundreds of thousands of users, they are a good place to start your adventure with the cryptocurrency market. The list aims to help you to choose the most optimal platform for your needs.
Ever since 2018, Binance has been the undisputed leader when it comes to the biggest trade volume and the largest number of users among all cryptocurrency exchanges in the world.
The headquarters of Binace are located in Hong Kong. The exchange stands out due to the low platform fees (0,1%) and a quick transaction process. It is also characterised by a high trade volume, for example:
Bitcoin - over 251 million USD (Top 4),
Ethereum - over 198 million USD (Top 1),
Bitcoin Cash - over 137 million USD (Top 3),
Litecoin - over 90 million USD (Top 1).
Binance’s advanced technology allows the exchange to process up to 1,4 million transactions each second. The users have various language options available (english, chinese, japanese, korean, spanish and french), which makes it a perfect platform for users from various places all over the world. Platform’s interface is multifunctional and rather convenient to use.
StormGain exchange is well-accommodated for a wide range of users. On one hand, it offers an easy solution to working with cryptocurrency, which is perfect for beginners, on the other hand it provides all the necessary professional tools for cryptocurrency analysis, which is a very attractive feature for users experienced in cryptocurrency trade.
While making a transaction, traditional risk management tools, such as Stop-loss or Take-profit, are available. One of the most important traits of StormGain is the possibility to get a 12% annual percentage rate of charge (APR) from your deposit in the loyalty program. According to CoinMarketCap it is one of the biggest interest rates available on the cryptocurrency market. StormGain has a relatively low commission fee for the transactions on the platform.
Currently StormGains allows to trade in the following currencies: Bitcoin, Bitcoin Gold, Cardano 's ADA, DASH, EOS, Ethereum, Ethereum Classic, IOTA, Litecoin, Monero's XMR, NEM, NEO, OmiseGo, QTUM, Ripple 's XRP, Stellar' s Lumen, Tether, TRON's TRX and Zcash.
Capital.com is an international platform for CFD trade with leverage across the world’s most popular indices, commodities, cryptocurrencies, shares and currency pairs. It provides access to over 3000 most renowned world markets. As of the year 2020 it has almost 800 000 clients and it has processed over 100 million deposits.
Capital.com offers a quick transaction process, one of the narrowest bid–ask spreads on the market (0.6 PIP for EUR/USD), trade without a commission charge or any hidden costs.
One of the most unique features of Capital.com is implementation of AI technology to detect irregularities in clients' behaviour as well as trading biases and it recommends personalized content to help the users trade smarter. If you want to get to know Capital.com before fully committing, the site offers a demo account that allows everyone to test out the functionality of the exchange.
Huobi, launched in 2013, is a cryptocurrency exchange platform for professionals. For the first few years of its activity it was available only in China, but in 2017-2018 it expanded to the world-wide market. The main headquarters are situated in Singapore, while service centres are located in main cities of South Korea, China, and in Singapore.
According to CoinMarketCap, Huobi is among the 10 best exchanges when it comes to the daily trade volume - it surpasses 1 billion USD. The exchange offers 772 trading pairs and lists 282 coins. The most popular token on the exchange is NT, which was emitted by the exchange itself in order to finance its activity. Huobi Token is an exchange token that allows users to get a discount for the platform fees, as well as gives voting rights.
The platform does not have a set commission fee. The fee is dynamic and it changes depending on various factors, mainly the type of currency and its quantity. The platform is available in 9 languages.
KuCoin is a Hong Kong based exchange which allows digital asset transactions, trade of 490 currency pairs and the exchange of various crypto assets for users all over the world. It is a relatively new creation on the cryptocurrency market, as the exchange was launched in 2017.
KuCoin Shares (KCS) are KuCoin’s internal cryptocurrency. Every registered user can purchase and profit from KCS - the currency is characterised by a stable increase in value, as the number of active users on the platform is also constantly growing. KCS are emitted based on Ethereum (ERC20 tokens), so aside from the exchange they can also be stored on the Ethereum wallet.
KuCoin offers attractive commission fees for the transaction - they are a little below the market average and amount to 0,1% of the transaction's total value.
OKEx is a secure crypto exchange that allows to buy, sell, and trade cryptocurrency, fiat money, digital assets and futures contracts. It is an exchange that was registered in Hong Kong in 2015, and the only two language options available are English and Chinese.
It offers 500 currency pairs and it ranks as the third biggest platform when it comes to the number of daily transactions. It is the right platform for beginners as well as more experienced users with the wide functionality of the exchange. Most widely used assets on the exchange are: Bitcoin (BTC), Tether (USDT), Ethereum (ETH), OKB (OKEx’s own token). The global utility OKB token can be used to trade cryptocurrencies and to receive certain rewards. OKB is a token with the total supply of 300 million OKB, and a certain amount of the issued tokens will be repurchased by the platform from the secondary market quarterly. The exchange offers an attractive commission on the transactions for the owners of their digital assets. The investors can also profit prom some perks and commissions issued by the exchange.
Hotbit is one of the professional digital asset exchanges that allows users from all over the world to trade the main digital currencies, such as Bitcoin, Litecoin or Ethereum, as well as various altcoins.
Hotbit was created in 2018 and the exchange registered in Hong Kong and Estonia with team members from USA, China and Taiwan. The platform is available in 6 languages and it has gathered over 540 000 registered users from over 170 countries and regions.
The platform lists over 1474 currency pairs and more than 700 coins. There is no fee for making deposits, and the fee for withdrawals depends on the type of currency. Typically, altcoins have lower withdrawal fees than currencies like BTC. Producer’s fee is 0,05% and taker’s 0,20%. The exchange puts in every effort to make it as safe as possible for its users and the security rating of Hotbit is classified as B+ (which is the same as the leading exchange Binance).
User reviews are possibly the best source of information about a certain service or product. Websites and platforms will, of course, offer essential information about their policies, methods and possible benefits for the users but it is always a good idea to listen to first-hand experiences other users have had with one one another cryptocurrency exchange. After all, the exchanges should be created with the users in mind and allow them to profit along with the platforms. We recommend visiting cryptocurrency forums where people share their opinions, give reviews, analyse the newest information, rate new coins and exchanges, and give out advice. In the meantime, we prepared a list of the top exchanges to trade cryptocurrency according to user experience:
Daily trade volume
$1 260 676 385
$18 590 938
ENG, CHN, FR, IT, ESP, PL, RU
$18 590 938
ENG, CHN, FR, IT, ESP, PL, RU
$699 419 098
ENG, CHN, RU
$16 833 501
ENG, CHN, RU
$9 462 825
$55 706 683
$113 581 446
ENG, CHN, RU
$67 433 329
If you are determined to find more about this subject, read some other materials on our website (https://tecracoin.medium.com) and keep in touch with exprienced users on forums dedicated to cryptocurrencies (like Bitcointalk). Remember, cryptocurrency is the currency of the future, so it is more than worth keeping track of the news and information related to this subject. Best of luck!