It is not just about rankings and the volume of transactions when choosing a cryptocurrency exchange. You need a broader comparison, based on fees, affordability, trading instruments or other common features.
Most exchanges aim to support a certain type of customers based on their location, experience, payment method, need for anonymity, etc. At the same time, very few of them can be considered universal, intended for the non-existent “average consumer”.
So which are the best cryptocurrency exchanges?
Coinbase
Coinbase was created to become the most trusted name among cryptocurrency exchanges. In this respect, it is more or less without competition in the market.
Coinbase is regulated as a U.S. financial institution that includes Federal Deposit Insurance Corporation (FDIC) insurance for $ 250,000 or less in U.S. deposits. The platform operates in accordance with key EU financial regulations. Coinbase is also supported by major investors, such as banks and investment funds. Coinbase margin trading is a top choice for most cryptocurrency investors. The design of the platform is simplified and adapted to this customer base.
Unfortunately, this focus on trust means that Coinbase trades only a limited number of coins, although it offers the most popular of digital currencies. The platform is also available only to users in a relatively limited number of countries in North America, Europe and Oceania.
Bitfinex
Bitfinex is one of the most modern platforms for trading fiat to digital currency, as well as digital currency to fiat money. The platform offers some of the highest liquidity and trading volume among exchanges. Bitfinex has few competitors when it comes to cryptocurrency traders who try to apply modern trading techniques and trade on a larger scale.
The exchange offers the full range of features that merchants expect from a single platform. This includes advanced order types, margin trading, and a large number of pairs to exchange cryptocurrencies and fiat money. Bitfinex also has low fees, which are aimed at traders with a high volume of their trading, as the fees drop dramatically with increasing trading volume.
Bitfinex has suffered two major hacker attacks in the past, as huge volumes have made it a major target for hackers.
Binance
Binance was founded by Changpeng Zhao – a Chinese software developer. Prior to this platform, he built systems for the Tokyo Stock Exchange and developed futures trading software for the Bloomberg Trading Book.
Although the platform was originally based in China, a change in cryptocurrency regulations has led to its relocation to Japan. However, when the Japanese Financial Control Authority (FCA) warned Binance, the exchange’s headquarters moved to Malta. Binance is a cryptocurrency trading platform that trades one type of coin directly for another. The exchange is one of the largest in terms of the number of available pairs of digital currency and the volume of trading in the crypto industry.
However, Binance does not deal with fiat currency at all, which makes it strictly based on crypto exchange. In this case, the base unit of exchange is not USD, but rather bitcoin.
Binance also has low trading fees and withdrawals.
Kraken
Kraken is one of the oldest and largest cryptocurrency exchanges. The platform trades in both cryptocurrencies and fiat money. It offers a larger number of pairs available than most similar exchanges, although the quantity is not huge. Kraken entices advanced cryptocurrency traders by offering them features such as cryptocurrency trading with leverage, OTC and futures, although it is making efforts to make it accessible to beginners as well.
More experienced cryptocurrency users will find all the features they expect from an advanced platform, as well as low fees, which decrease with increasing trading volume.
Kraken advertises its main features, among which are:
- A comprehensive approach to increase security
- Intuitive platform for cryptocurrency trading
- Fees up to 0%
- Round-the-clock support team globally
- Various funding opportunities
Coinmama
Coinmama offers consumers a quick and easy way to buy coins using fiat currency without having to store them on other exchanges. Coinmama is ideal for users who just want to buy cryptocurrency using fiat money without wasting time, nerves, going through a long registration or being at risk of hacker attacks. Most often, people make an initial purchase of a cryptocurrency with the help of Coinmama and then deposit the received coins from their personal digital wallet in a digital currency exchange, where it is traded directly from cryptocurrency to cryptocurrency. Coinmama charges relatively high fees for its services, so it is only recommended for users who are willing to pay more for the speed, discretion and convenience of the platform.