Guidelines when choosing an exchange

[Grabi]

The market of crypto currency is significantly different from other currency markets, primarily because it is in the position of the Schrodinger cat. Crypto-currency at this stage of its development is not backed up, and no one is behind it (neither the state, nor other structures).
However, this does not prevent millions of people from making good money on trading crypto money.
What should I look for when choosing a trading platform:

• reputation (before making money on an unfamiliar exchange, it is better to read reviews about it);

• commission (it can differ on different sites, but on average it is 0.2%);

• number of trading pairs operated by the exchange;

• liquidity (in many respects this indicator depends on the daily volume of trades);

• payment options (some exchanges support a variety of payment methods, including bank transfers, while others allow you to enter and withdraw funds only in the crypto currency);

• requirements for user verification.

Among other criteria for selecting the exchange can be identified:

• the country of the basing of the trading platform (for example, some Japanese and South Korean exchanges, despite their attractiveness as a tool for arbitrage operations, may "not allow" users from other countries);

• user-friendly interface;

• availability of various tools for technical analysis, including the availability of monitoring courses;

• availability of convenient statistics on operations;

• the possibility of margin trading (and, as a consequence, the possibility of obtaining passive income from the provision of loans to other participants of the exchange), etc.

We will allocate trading platforms confidently occupying the top lines of ratings of the most popular exchanges of crypt currencies: Binance, Poloniex, Bitfinex, Bitstamp,  Kraken.

Binance

Binance – quite a young Chinese exchange. In less than a year, it has gained popularity with a wide range of traders around the world.

What does this exchange offer to users?

Goodies:

• a wide range of crypto currency for trading. To date, their number is 222, and often new altcoyins are added;

• minimum commissions: 0.1% for standard trade and 0.05% for trading in pairs with Binance Coin crypto currency;

• user-friendly interface;

• various indicators and technical analysis tools, adding interesting crypto currency pairs to bookmarks, viewing charts in full-screen mode;

• the ability to view exchange rates without registration and trade without mandatory verification (two-factor authorization for entering and withdrawing funds is still mandatory);

• language support (8 languages);

• referral program - you can get 50% from the trade commission for all invited by your link users;

• offers users its own promising crypto currency–Binance Coin(BNB).

Minuses:

• Absence of input and output of fiat currencies;

• the functionality of the trading terminals is almost identical. Complex logic of their use.

Poloniex

Poloniex   was founded in January 2014. The company is based in San Francisco (California). Initially, the exchange was oriented to the United States market, but the popularity and large volumes of trades attracted altcoin-traders from all over the world. In addition to the most promising and interesting coins, little-known, but promising - are available for trade - more than 140 exchanges are available for operations. Poloniex is probably the most famous altcoin exchange. Supports languages: English. There is no partner program.

Goodies:

• high level of security, two-factor authentication, three-stage verification (voluntary);

• Verify is not necessary for withdrawal of amounts less than $ 2,000;

• convenient site interface, navigation and sorting of tokens;

• wide functionality - the possibility of trading, issuing loans and taking loans;

• standard trading, and margin trading with a leverage;

• a large number of liquid investment instruments - more than 140 currency pairs;

• low commissions for transactions and I / O. The exchange switched to a new model of taking commissions for operations called "maker-taker" - if a trader buys coins below the market price or sells above the others, he pays less. In general, the commission is from 0 to 0.25%;

• LENDING - not a typical section for most exchanges, which offers to take and give out loans to users;

• convenient graphics, various tools of technical analysis.

Minuses:

• does not support fiat currencies; forced verification in case of administration doubts in your operations;

• No mobile application, although there is a mobile version of the site;

Bitfinex

Bitfinex   is registered in Hong Kong since 2012. It has impressive volumes of trade, is one of the largest. To enter and withdraw funds requires verification of the person, while the conditions are quite stringent. For trading, there are 31 trading pairs, 14 currencies and crypto currency. Allows to conduct margin trading.

Goodies:  

• multifunctionality (margin trading with a shoulder up to 3,3x, the ability to provide and receive loans); high liquidity;

• commissions differ: for a market maker 0.1% and lower with an increase in turnover, and for a market-teker, 0.2% or lower;

• availability of API , two-factor authentication 2FA , advanced verification tools for account integrity control;

• has the official application for Android and iOS ;  

• customizable interface (choice of topics, sorting, etc.);

• technical analysis tools built into TradingView ;

• a large number of orders (stop-loss, take profit, etc.).

Minuses:

• when replenishing the purse or withdrawing funds via bank transfer to USD, the exchange holds a commission of 0.1%, but not less than $ 20. Therefore it is better to replenish it via crypto-currencies;

• complex verification.

Bitstamp

Bitstamp - one of the first serious sites that appeared for the work of stakeholders with Bitcoin. It was created in 2011 and has a license to operate in this segment. The license granted by the Ministry of Finance of Luxembourg (CSSF) made Bitstamp the first regulated and licensed crypto exchange in the EU. This license entitles the Exchange to provide services in all countries that are part of the European Union.

Goodies:  

• 2-factor authentication, account management by API, mobile phone verification, with which you can configure SMS Price Alerts;

• mobile versions for Android and iOS ; communication with the administration of the site is carried out using a ticket system;

• input and withdrawal of funds is possible in such ways as SEPA (European translation), payment systems AstroPay , Ripple , international bank transfer;

• a dynamic commision of 0.5%, which decreases with the increase in trade turnover.

Minuses:

• conducts only one type of transactions in which the Bitcoin crypto currency is converted into US dollars;

• supports only 9 pairs;

• does not support popular payment systems in the form of WebMoney , QIWI , PayPal and so on.

Kraken

Kraken founded in 2011 the exchange and today it is one of the largest in terms of trading volume. With the help of Kraken, you can buy, sell and exchange Bitcoin for other crypto currencies, as well as for fiat currencies such as US dollars, Canadian dollars, euros, British pounds and Japanese yens. At the exchange is available more than 49 trading pairs and 15 crypto-currencies. For advanced users, Kraken offers margin trading and many other trading functions. German bank Fidor and American bitcoin-exchange Kraken have joined forces to create the first specialized bank of crypto-currency.

Goodies:  

• good reputation, high liquidity;

• for business customers, as well as for customers who carry out transactions with a large amount of cash, a corporate program is provided;

• The dynamic commission varies depending on the volume of trades and the type of trading pairs, as well as on who you are (for the market maker, the commission is lower);

• the ability to replenish the wallet with various fiat currencies and crypto-currencies;

• presence of API, two-factor authentication, the ability to apply advanced security settings;

• the possibility of margin trading, several types of orders (stop-loss, take profit, etc.);

• relatively low commissions for the implementation of transactions;

• there is an application on iOS;

• excellent support service.

Minuses:

• not an intuitive user interface;

• high commissions for replenishing the purse and withdrawing funds;

• is more suitable for advanced traders.

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[Svelto]

Thank you for the guide and reviews of the various crypto exchanges. I believe Bittrex and Kucoin are popular among the users here, you may want to consider adding to your list. 

[CryptRoller]

This is a very nice post. You clearly put some time in it.
Thank you (wish I had merit to give...)

[martinrep]

Great article, thanks for information it was really helpfuly!

[onlinedragon]

Nice list but maybe you could add a highlighted part for the quality of customer support, some exchanges are treating their users terrible and you can only hope you never need any support. If you ever face any problems than you have to wait weeks/months before they help you out. Also the fact that some are locking user funds for a really long period of time. Layout and trade options are not always the most important of a good trade experience.

[parkraol]

That depends on your coin hold. If your token or coin from ICO, you shall wait for their announcement of which exchanges are allowed on their coin and from there you will choose. But if from the top 100 coins, Bittrex and Poloniex are most suggestions from others. I have no experience with these yet but this is the most frequently used exchanges of my friends here in the forum.

[oludare1]

What country is the exchange located in?  Knowing your country and where the exchange is based out of is important, as laws and regulations can vary country to country. Buying bitcoin in your home country is typically recommended.

How can the coins be purchased?  Can you pay with wire transfer, cash, credit cards, PayPal, and so on.

Exchange fees. You will want to make sure that the exchange fees are within reason and aren’t exorbitant compared to the rest of the market.

Order book volume. Most exchanges with a decent customer base will publish their order book. An order book is simply a list of buy and sell orders on the exchange that are being offered. A higher volume order book is an indicator that people are using the exchange and the exchange has liquidity.

Is the exchange transparent?  Exchanges that are fully transparent will publish cold storage addresses or audit information on how to verify their coin reserves.

How quickly will you get the coins after buying or selling them?  This may vary person-to-person, but it’s good to know how long before the coin will be sent out or send to you after sell or purchase.

Security is paramount   Knowing the exchange is secure is very important and shouldn’t be overlooked. Is the exchange site HTTPS or HTTP? For it to have a secure protocol it must be HTTPS. Does the exchange offer secure logins along with two-factor authentication (2FA)? These are just a couple things to think about before selecting an exchange.

Is the exchange reputable?  This is an important question that can only be answered by discussing it with your peers. If you want to make sure the exchange has good customer reviews, search for feedback about the exchange on internet forums such as the Bitcoin Reddit or the Bitcoin Forum. If you can’t find any feedback about it, ask in those forums if your peers have used it and what their experience was.

Avoiding fraud: Not becoming a victim should be a high priority. This means avoiding any scam exchanges that are designed to steal from you.