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The goal of any exchange should be to provide and fair and orderly opportunity for anyone to invest in the market. Exchanges make their money by charging small fees on the transactions that take place on their platforms. So how do we find the one that we want out of all these options?
There are many factors that go into a good exchange, the obvious being reputation and security. You may be restricted from certain exchanges due to your region. As with any software platform, a good UI can make all the difference. Margin trading is also a very desired feature among traders.
Each of us have different priorities and will value each of these things differently. For example investors would probably be more likely choose one exchange with a high reputation and ease of access, while most traders will use a combination of exchanges to gives themselves access to all the features they need.
Market, limit, stop limit Transaction fees: No maker fees, moderate taker fees. One of the most reputable and well-known platforms, Coinbase supports 32 countries spanning from North America, through much of Europe, the UK, and Australia. Asian investors will have to look elsewhere, as only Singapore is supported. Coinbase is very beginner friendly and often the choice for traditional investors looking to just get their hands on some Bitcoin.
Available coins are currently limited to a few of the largest players: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Payments can be made after authorizing a bank account, or by credit card with a higher transaction fee. This is a bit different from traditional exchanges, where you must deposit fiat money in your exchange account before placing a buy order. GDAX, an extension of Coinbase, functions as a traditional exchange offering a real-time marketplace for trading the same four coins as mentioned above.
However, being more of the tradional exchange that it is, traders may swap their Bitcoin for other coins. For example, you have the option to trade your Bitcoin for Ethereum and vice versa. Beginners who need a simple platform for buying and selling. Day traders who are looking for serious technical analysis tools and a large selection of coin pairs to trade between.
Limit, stop limit AND margin trading Transaction fees: Yet another of the most popular exchanges worldwide, Poloniex is a solid and reputable choice for traders looking for a decent selection of altcoins. A major advantage of Poloniex is the ability to trade on margin , giving seasoned traders the option to short coins.
Although there are only a handful of coins available for margin trading, this is a very welcome feature that seems to be pretty rare to find in the current state of crypto exchanges. Like many of the others, the Poloniex UI does not offer much in the realm of advanced technical analysis tools, but overall is a great interface that provides tons of useful information without seeming too cluttered.
Traders who are looking to margin trade. Traders who are looking for access to the largest number of altcoins. Market, limit AND margin trading Transaction fees: Kraken is a San Francisco-based exchange that sees the highest volume among European traders. It boasts some perhaps one of the most complete set of perks with fiat support, a few altcoins, and margin trading. The only issue is the Kraken UI.
Traders looking for complete-set of features. Traders looking for simple user interface or large altcoin selection. Bittrex is another US based exchange, with usage all across the world. This exchange puts a lot of focus on supporting as many altcoins as possible, including very new and emerging ones. Currently, they support over coins. A common complaint with Bittrex is high transaction fees currently at 0. The UI is pretty good and gives a fairly high number of technical analysis tools for those who are interested.
Traders who are looking for access to as many altcoins as possible. Traders looking to minimize fees. A Hong Kong based exchange, Binance is another very popular choice across the globe.
With recent news that China has banned cryptocurrency exchanges , there is reason to be weary, however Binance is registered outside of China and so is not currently subject to this ban. This has helped Binance to keep a very low transaction fee of 0. The goal is to help other pre-ICO blockchain startups achieve their goals. Fiat money can not be used on Binnace so you will need to have purchased Bitcoin, etc. On the other hand, there are tons of altcoins available with trading pairs for the aforementioned Binance coin, Bitcoin, Ethereum and Tether.
Those just getting started will find the Basic view to be simple enough, while the Advanced view provides some tools for more experienced uses to do some basic technical analysis. Traders looking for unique platform with a broad selection of coins and low fees.
Those who do not want to worry about keeping an eye on Chinese cryptocurrency regulations. Market, limit, stop limit, trailing stop AND margin trading Transaction fees: Bitfinex is perhaps the most professional exchanges out there right now.
Although Bitfinex seems to take security very seriously, a hack is something to take note of. Having no hiccups to speak of since that attack, Bitfinex has done well to bounce back.
For those willing to wait in line for a Bitfinex account and look past the security breach, you will be getting a feature-rich platform. Perhaps the best set of order types out there, including a trailing stop loss, as well as fiat support and margin trading, experienced traders should be satisfied. Another great and unique feature of Bitfinex is a customizable interface and in browser notifications.
Serious traders looking for top-notch features. Those not interested in doing much trading or traders who are looking for a large altcoin selection. Yes KRW only Altcoin support: Market, limit Transaction fees: Bithumb regularly sits among the leaders in trading volume despite being an exchange exclusively for Koreans or at least those using the South Korean Won as their currency. It offers fiat support for a dozen of the biggest coins in regards to market cap , making it one of the few places where you can trade straight between your base fiat currency and coins like Ripple and Monero.
The Bithumb UI is very simple, yet effective for getting your hands on some of the most popular cryptocurrencies. Those with access to the Korean Won and looking for an easy place to trade it for popular cryptocurrencies. Anyone without access to Korean currency or anyone looking to day trade. Shapeshift of the most unique exchanges out there.
It stays with the nature of cryptocurrencies by decentralizing the trading process. In other words users need no account in order to swap their Bitcoin for Ethereum. With no fiat support, but a low practically nonexistent barrier of entry to a pretty large selection of altcoins, Shapeshift has continued to grow as a popular exchange among traders. Another promising development from the Shapeshift team, Prism , currently sits in closed beta and has attracted a lot of interest among crypto investors.
Traders looking for a quick and decentralized way of swapping between cryptocurrencies. This exchange supports a lot of altcoins including recent ICOs and emerging cryptocurrencies.
Currently, they support over 50 coins. Kucoin's trading fees are set at 0. The UI is good, order book is active, and the trading section integrates with TradingView one of the leading technical trading platform. Traders who are looking to trade with NEO or want to have access to rare coins with low fees. Traders looking to get a large selection. Volume is still low compared to other well known exchanges.
Market, limit AND Transaction fees: Cobinhood is a very new exchange that has gotten a lot of buzz in the crypto world, mostly due to ZERO transaction fees. Cobinhood provides an ICO underwriting service. This program is what provides funds, allowing Cobinhood to get by without the transaction fees.
Traders looking for an alternative to something like GDAX. Those looking for an established platform. Market, limit, cancel Transaction fees: Coinone is the second largest exchange in South Korea. Coinone is based out of South Korea. Currently, the only fiat currency that is accepted is the Korean Won. Traders who are based in South Korea. International arbitrage, as currency would need to exchanged for Korean Won first.
IO is based out of London. However, not all US States are covered. IO is the first cloud mining provider, and has became a multi-functional cryptocurrency exchange, offering cross-platform trading through the https: Individual Business and Corporation as there are no limits on purchasing bitcoins. Credit card processing fee is 3. There are reports of account creation taking upwards of a month on some exchanges.