A review of the top 10 cryptocurrency exchanges dominating the markets

There are over 5000 cryptocurrency assets prevailing in the markets right now that are traded across 300 exchanges and over 20,000 markets. With so many asset classes, markets and exchanges to choose from, it gets a bit tougher to zero in on a specific exchange that can help you set your sails easily.

The top ten exchanges are making as much as $3 million in fees in a single day or bagging more than $1bn per year according to a report by ‘Bloomberg’. Based on daily trading volume and fees, their annual revenue reaches billions of dollars which signifies that the digital asset ecosystem is generating some very real cash.

TradeDOG has compiled a list of ten prominent exchanges based on their average trading volumes, geographical accessibility, liquidity, market depth and more. Let us find you the best exchange so that you can relish safer trades, opportune trade windows, more liquidity and the best of services.

So let’s get and enlighten you about everything you really need to know.

First of all, we would like you to understand that there are primarily three types of exchanges.

Digital currency exchanges or sometimes wallets are businesses on which a person can buy or choose to trade his preferred cryptocurrency for assets, such as fiat currencies and other cryptocurrencies. They charge a few bids as transaction commissions for the services they provide.

Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market.

Marketplace is a hub where you can find all the currencies existing today. You can purchase and deal in any cryptocurrency you prefer. You can also sell and buy other cryptocurrencies at low trading fees and high trading volume without any restraints.

These exchanges are further divided into more forms such as Peer-to-peer exchanges, fiat-crypto exchanges, crypto-crypto exchanges, instant, hybrid, centralized and decentralized exchanges, each providing unique services which we will talk about in another article of this thread.

Binance is a centralized crypto exchange based out of Malta. Founded in 2017 it has quickly escalated in ranking due to its phenomenal working mechanism. Binance has scaled the first rank due to its excellent team, robust security, and support for many virtual currencies, stable coins and crypto tokens.

Binance has 10 VIP levels which require traders to qualify for each of the ranks by staking BNB tokens and a specific BTC trade volume. The higher the ranking and the traded amount the lower is the Maker and Taker fees. The traders can also qualify for a referral program wherein they will have to pay an even less as opposed to other irrespective of their rankings.

Excellent reputation

Safe & Secure

Multiple Cryptocurrencies and pairs to trade

Many Features

Many payment options

Not for complete beginners

No Phone Support

Coinbase is one of the first crypto exchanges and has become the most sought crypto platform due to its great reputation in the crypto markets. It has a strong team backed by prominent venture capitalists and proposes excellent security, services and ease of access to its users.

High liquidity and buying limits

Easy way for new users to buy bitcoin

Limited payment methods

May track how its users spend bitcoin

Kraken is a US-based cryptocurrency exchange. Founded in 2011 the exchange provides crypto to fiat trading and provides its price information to the Bloomberg Terminal. It is considered Europe’s best cryptocurrency exchange due to its worldwide presence, lower fees and many withdrawal options.

High liquidity

Most trusted crypto exchange

Cheap/free deposits in EUR

Cheap deposits for USA (ACH, FedWire)

Held accountable for Mt.gox liquidation

Customizability and variety of order types and position options

Potential low fees

Low leverage

Deposits can be expensive for certain users

Launched in October 2012, Bitfinex is an exchange based headquartered in Hong Kong and registered in the British Virgin Islands. The exchange supports virtual currencies, crypto tokens, and fiat. Owned and operated by iFinex Inc it allows spot trading for major cryptocurrencies.

Competitive Fees

Established Company

Ethical (Paid back all losses suffered from the 2016 hack)

High Liquidity

Supports multiple order types

US Clients not accepted

Less transparency

Bitstamp is a bitcoin exchange based in Luxembourg. It allows trading between USD currency and bitcoin cryptocurrency. Bitstamp was founded as a European-focused alternative to then-dominant bitcoin exchange Mt. Gox and offers secure and reliable trading on its platform.

Advanced trading platform

High liquidity

Low Fees

Regulated Exchange

Support credit/debit cards transactions

Support major fiat currencies

Weak Customer support

Long waiting period for account verification

In-depth KYC questioning

Bittrex is a crypto exchange based in the USA. Launched in February 2014, this exchange supports cryptocurrencies, stable coins, tokens, and fiat. With over 2 million visitors on its platform it is one of the leading crypto exchanges out there.

Excellent security credentials

Fast transactions and withdrawals

Supports over 220 currencies

Fiat deposits and withdrawals for verified accounts

Inexpensive bank card deposits

No margin trading

Fiat deposits via bank take days to be processed

Extensive verification processes

BitMEX is a cryptocurrency exchange and derivative trading platform owned by HDR Global Trading Limited. Founded in 2014 Bitmex allows trading Bitcoin and other cryptocurrencies with up to 100x leverage. Faster execution, lower fees, Bitcoin futures and swaps make it a popular exchange amid traders and investors.

Highest liquidity on market

High leverage

Full package of order types

Good customer support

Major altcoins are tradable

High security

Good Trading Engine

Supports anonymity

Restricted for US traders

Email leak affair 2019

Not for Beginners

No Fiat Payments

No Phone Support

OKEx is a Malta-based cryptocurrency exchange founded in 2017. OkEx intuitive and easy to use UI allows professionals to trade tokens with fiat currency conveniently. It is considered the world’s leading crypto exchange as it provides both spot and futures trading and trading of fiat-backed tokens on its platform.

Trading interface is very simple and straightforward.

Offers large trading volumes

Telephone support

Customers’ reviews are mixed about their customer service.

Not beginner friendly

Supporting only two fiat currencies

Lack of regulatory oversight

Doesn’t accept debit/credit cards or e-wallets

High fees

Trading interface not user-friendly

Has been hacked before

Allegedly stole customer funds to cover its own mistake in futures contract

Founded in 2013, HitBTC is a crypto exchange that has over 800 trading pairs. It provides exchange, custodial and other related services and offers cold storage and encryption technology. HitBTC is at par with almost any other major exchange and has earned a reputation for fault-tolerance, good uptime, high availability and strong security parameters.

Very high liquidity

Advanced order matching engine

No upper or lower limits for digital asset deposits or withdrawals.

Low fees

Multi-language chat box

High security using advanced encryption and multi-step authentication.

For users of automated trading software, HitBTC offers advanced REST API and FIX API solutions.

Geographical restrictions on who can trade on HitBTC. US Clients are not allowed to trade on the exchange.

There have been numerous complaints of site crashes.

Hidden fees complaints

Demo interface is not fluid

Painstaking verification process

Lack of a mobile app

Slow withdrawals

Launched in June 2013 Cex.io is Based out of the UK. CEX.IO combines crucial features such as enhanced security, variety of options and high market liquidity to make trading on their platform convenient and safe. Cex.io has received the second level certificate of the Payment Card Industry Security Standard. This certificate confirms that Cex.io has a secure network, strong access control measures, a regularly monitored system and a maintained information security policy.

Enables buying bitcoins with credit card for low fees

Simple, intuitive and minimalistic interface.

Unlimited withdrawals

High trading volume

Mobile app

Extensive verification process to increase buying limits

Relatively high fees.

Limited number of currencies supported.

Getting in touch with them is not as straightforward as it should be.

No advanced order types

No Anonymous accounts

Important things to consider for opening an account on an exchange

1. Bitcoin exchange rate or price | Make sure to match the prices from several other exchanges.

2. Payment method | If the exchange supports convenient methods like credit card, PayPal or bank transfer it is definitely a thumbs up.

3. Trading fees | The trading fees should not exceed .5%

4. Deposit and withdrawal fees | Exchanges and wallet providers may charge you some fee for withdrawals and deposits.

One should be aware of these things that really need consideration

You should check the location of the exchange and make sure that it’s based in your country. It normally doesn’t cause any troubles but choosing an exchange in your particular nation would eliminate hassles in payment processing and time delays.

You always have to make sure whether a particular exchange deals in your preferred currency or not.

Be sure to be content with the legitimacy of the exchange, whether or not it is legit and safe to trade with.

Be smart in opting your exchange in terms of fee, a minimal fee would be good if you are a beginner.

There are differences in the exchange rates, do opt for the minimal exchange rates.

Make sure that the cryptocurrency you choose pairs with your national currency.

Give a check on liquidity of cryptocurrencies on exchanges.

Make sure that the currency which you are going to trade in is available and legal in your country.

Take a good look at the terms and conditions of the exchange and get to know whether that exchange provides adequate security for your cryptocurrency.

Most importantly watch out for HYIP or ‘High Yield Investment Program’ scams. This could be just another Ponzi scheme. They might someday collapse the trade and exchange and flee with your valuable assets.

If you are looking for a wallet provider, for your convenience you should always prefer finding a service which has a multi-crypto wallet facility. You can store multiple altcoins at the same time without needing any more wallets for other currencies.

Conclusion:

All these exchanges are ultra-secure and it is perfectly fine to link your bank account to these platforms. All these exchanges are largely used all around the world and most of them are regulated and have licenses to operate at a certain location. All crypto exchanges have learnt from the past hackings and have reinforced their security measures and fortified their servers to prevent any uninvited bug or hacker looking for easy money. You can always vet their credibility and ease of access before initiating an account creation request.

In the next series of ‘Exchanges’, we will guide you through opening accounts and other important aspects such as their Withdrawal limits, supported payment methods, Fiat deposit time, limits and liquidity and more. The following article to this thread will also talk about the founders behind these exchanges and some other unique features and statistics that might surprise you.

Make sure to subscribe to our feed for all the necessary updates on cryptocurrencies. Keep track of our trade advice and make a difference with TradeDOG.

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Source: medium.com

Author: TradeDog®

Chainalysis and Paxful Create New Compliance Standard for Peer-to-Peer Cryptocurrency Exchanges

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Press Release: Friday, April 17 2020, 12:30 CAT | Source: Paxful

Chainalysis, the blockchain analysis company, announced its partnership with Paxful, a global, peer-to-peer (P2P) Bitcoin marketplace, which is raising the bar for compliance standards for P2P exchanges. Paxful uses Chainalysis KYT (Know Your Transaction) to monitor its platform’s cryptocurrency transactions in real-time and Chainalysis Reactor to build investigations when it detects suspicious activity. Together, these tools amplify Paxful’s compliance expertise and sets a new compliance benchmark for P2P cryptocurrency exchanges globally.

Previously, Chainalysis considered all P2P cryptocurrency exchanges as inherently risky and labelled them as such in its products because most are decentralised and oftentimes don’t even require users to set up an account. Paxful, however, set a new precedent for P2P exchanges by focusing on top-notch compliance and Know Your Customer (KYC) standards, driving Chainalysis to evolve its policy and evaluate P2P exchanges on a case-by-case basis before labeling them as risky, just as it does for other cryptocurrency exchanges.

“Compliance is the key factor for establishing trust in cryptocurrency exchanges,” said John Dempsey, VP Product, Chainalysis. “By adopting a case-by-case approach to evaluating P2P venues, we are helping to broaden trust and transparency across the cryptocurrency ecosystem.”

“At Paxful, compliance and security are top-of-mind as we work to keep the marketplace free from fraud and scammers,” said Lana Schwartzman, Chief Compliance Officer at Paxful. “Partnering with Chainalysis was a great choice as we work to protect our users and instill in them the importance of regulation and compliance on P2P marketplaces like ours.”

Through its work with Chainalysis, Paxful is well-equipped to develop new controls for customer protection, including blocking outgoing transactions to high-risk addresses linked to terror financing, sanctioned addresses, child abuse websites, and stolen credit card platforms. As Paxful continues to complete additional risk assessments in the coming months, their compliance capabilities will continue to expand.

By leveraging Chainalysis KYT, cryptocurrency businesses like Paxful can monitor large volumes of cryptocurrency activity and identify high risk transactions on a continuous basis. Real-time alerts on the highest-risk activity, coupled with enhanced due diligence, allow compliance teams to focus on the most urgent activity, better allocate resources to enforce compliance policies, and fulfill their regulatory obligations to report suspicious activity.

Chainalysis Reactor assists cryptocurrency businesses including Paxful to further investigate suspicious transactions and provide more detailed reporting to regulators and law enforcement on criminal activity such as fraud, extortion, and money laundering on the blockchain.

— – – – – – – – – – – – – – – – – – –

This article is a Press Release received from Paxful. SA Crypto did not receive any form of compensation for its publication, and as this material is deemed newsworthy for the Southern African blockchain industry, it was thus published accordingly.

Image by Darwin Laganzon from Pixabay 

Source: sacrypto.co.za

Author: SA Crypto Research Assistant

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