You can be a seasoned crypto merchant or a newcomer trying to explore new investment opportunities, but you always need to sign up with a cryptocurrency trading platform to carry out your dealings. In the earlier days, there was a lot of skepticism surrounding digital assets. However, with advancements being made in blockchain technology, crypto coins have become a popular investment option worldwide. In this article, we shall discuss the platforms offering the best features and safety.
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Comparing 10 Best Crypto Exchanges
How to trade cryptocurrencies?
Firstly, you need to sign up with a brokerage service. This requires the sharing of personal information. After signing up, you need to put some funds in your account. Different brokerages offer different payment modes. Next, you should choose an asset you wish to buy. To trade efficiently, you need a solid strategy that will help you decrypt the market sentiment.
What are the platforms for trading crypto?
It is a system that facilitates trades between peers. They compare your buying and selling prices with other people’s orders and initiate the deal when there is a match. Some platforms function as brokers, and they let you deal in digital assets according to broker prices.
Types of crypto platforms
There are mainly two types of crypto platforms, namely centralized and decentralized. For centralized exchanges, you need to register, submit ID proof, and complete a KYC process. These platforms are characterized by high liquidity and trading volume. Usually, they provide users with insurance, but you have less control over your investments.
There is no central governing body for decentralized platforms. Since the server’s computers are distributed all over the world, it is difficult for hackers to launch an attack.
How to deposit funds in crypto platforms?
To deposit funds, select the deposit option on your crypto exchange. Some of them support fiat currencies, while others only allow you to deposit via crypto assets. You need to choose the payment mode and select the deposit address. After the deposit is confirmed, the record will be copied to your history, and you can check it later if needed.
Fees and commissions
On most platforms, there is a trading fee or commission you need to pay for each transaction. Usually, the greater the size of your transaction, the higher is the commission. Some platforms also charge a fee when you transfer money from your bank account.
This refers to the gap between the purchase and sell prices for a particular asset. When you initiate an order, you have two alternatives. You can either go long, purchasing the asset at a value slightly higher than the market price. For a short position, you need to sell the asset for a value slightly lower than the market price.
Commissions refer to the cost of processing transactions. While there are a few platforms that do not charge commissions for small transactions, you usually need to pay a fee.
Deposit & withdrawal fees
There are different deposit and withdrawal options available at exchanges. Depending on the mode of payment, you need to pay a certain amount as fees. Many exchanges do not charge anything for crypto deposits, but fiat deposits will cost you a little bit of money. The withdrawal fees depend on the asset category.
How safe are cryptocurrency trading platforms?
The best trading platforms always have ample security features that prevent unauthorized access. Many of them have a 2-factor authentication system where you need to enter a code while logging in. Some platforms store the assets on offline cold storage that cannot be accessed by hackers.
How to get started using a cryptocurrency trading platform?
It is imperative to find the best trading platform for cryptocurrency. Conduct some research and find out about what each system offers. While you might be tempted to sign up with free services, they might turn out to be scams.
What to look for on a cryptocurrency trading platform?
Prior to registering on a platform, there are certain factors you need to keep in mind. Every system is different, and some of them are only for seasoned users. Let’s take a look at the various things you ought to keep in mind:
Regulation and licenses
Always go for a platform that is well-regulated and licensed. These platforms are regularly audited by third-party organizations that make sure they follow all laws. As such, a regulated platform is less likely to be a fraud or a scam.
This is one of the most vital aspects to consider. After all, it doesn’t make sense to register on a platform if it doesn’t support the assets you wish to invest in. While the top crypto coins are available on most platforms, not all of them support the lesser-known altcoins.
Ability to trade via CFDs
CFD trading is a method where there is a contract between the trader and the broker. They enter a mutual agreement to replicate market conditions and settle the difference once the position is closed. If you wish to access overseas markets and engage in leverage trading, you should make sure the platform supports CFDs.
With leverage support, you have the chance to enhance your gains drastically. Leverage allows you to deal in large chunks without paying the entire amount at once. However, not all exchanges support this feature.
Types of payment methods
Most platforms allow you to link your bank account and make payments via credit and debit cards. Nevertheless, it is not prudent to use credit cards, keeping in mind the volatile nature of the crypto market. If you already hold coins in your wallet, you can use them to make deposits. PayPal is another popular option for exchanges that support fiat currencies.
Top 10 Best Crypto Trading Platforms You Can Rely On
After doing extensive research, we have compiled a list of the top crypto trading platforms. We have also outlined their key features, along with the advantages and disadvantages.
Based in Switzerland, Nexo is one of the most reputable and secure CeFi (centralized finance) crypto lending services serving millions of clients in nearly all corners of the globe. Loans are approved in a few minutes with no credit checks and start from $50 (for USDT and USDC) and $500 (for fiat currencies).
Aside from being a credit facility, Nexo is also a generic crypto exchange, offering 38 cryptocurrencies and 300 pairs.
Key features of Nexo
Here are the best features of Nexo:
- Reasonable borrowing rates: Borrowers pay interest rates between 6.9% and 13.9% APY (annual percentage yield).
- Opportunity for lenders to earn interest: By loaning your crypto, you can earn up to 17% in yearly interest.
- Wide collateral options: Borrowers can collateralize their loans with one of 38 supported cryptocurrencies.
- Flexible LTV (loan-to-value) percentages: Nexo’s LTV ratios start from 50% to 90%.
Upsides of using Nexo
- Top-notch security
- Clients can borrow from $50 to $2 million
- Competitive LTV ratios
- Industry-leading interest rates for borrowing and earning
- Unlimited lending period
Downsides of using Nexo
- Low selection of cryptocurrencies
- Withdrawal limits apply based on the verification level
On CoinMarketCap presently, FTX is ranked the third-highest for web traffic, liquidity, volume, and confidence, making it one of the top crypto trading platforms to rely on indeed. FTX specializes in various derivatives such as leveraged tokens, futures, options, and even prediction markets.
Additionally, you can also receive yields from staking FTT (the exchange’s utility token), Solana, Raydium, and Serum.
Key features of FTX
Here are the standout features of FTX:
- Vast market selection: FTX offers over 400 markets derived from roughly 321 cryptocurrencies.
- Comprehensive fiat currency support: Clients can trade USD, EUR, GBP, AUD, HKD, ZAR, CAD, and SGD pairs.
- Leveraged trading: Traders can get up to 1:101 leverage on futures and 3x maximum leverage on ERC20 tokens.
- Utility token: FTT is one of the most traded exchange-based utility tokens. FTX users can benefit from discounted trading fees, staking rewards, airdrop rewards, free ERC20 withdrawals, increased referral rates, etc.
Upsides of using FTX
- One of the largest crypto exchanges by trading volume
- Broad choice of cryptocurrencies and markets
- Competitive trading fees
- Offers utility token via FTT
- Provides leveraged trading
Downsides of using FTX
- Best suited for advanced traders
- No live chat or phone support
If you’re looking for a stripped-down exchange with a straightforward list of products, Bitstamp may be the one for you. Bitstamp is one of the oldest crypto exchanges, as it was founded in 2011. The brand primarily offers simple trading services in its selection of 54 of the most popular cryptocurrencies.
Key features of Bitstamp
Below are some of the outstanding features worth noting:
- Reasonable starting balance: You can start trading with Bitstamp from as low as $10.
- Numerous payment methods: For all accepted customers, you can fund/withdraw with crypto, bank wire, and debit/credit card. US customers can use ACH; UK customers can use Faster Payments; EU clients can use SEPA.
- Staking: Presently, you can earn around 5% APY respectively by staking Ethereum and Algorand.
- Reasonably wide market selection: Bitstamp currently offers about 130 markets derived from 54 coins, including USD, EUR, and GBP pairs.
Upsides of using Bitstamp
- Been in existence since 2011
- 24/7 email and phone support
- Staking rewards offered for Ethereum and Algorand
- Many payment options are available
- No deposit fees for crypto
- Reasonable trading costs
Downsides of using Bitstamp
- No live chat service
- No wallet provided
PrimeXBT is a crypto trading platform for CFD trading in 17 cryptocurrencies with 100x maximum leverage and zero minimum deposit. Additionally, you can also trade 51 currency pairs, 5 commodities, and 11 indices, similarly with no starting balance.
Key features of PrimeXBT
Here are the best features of PrimeXBT:
- No KYC required: PrimeXBT doesn’t follow a KYC (Know Your Customer) procedure, meaning users can retain their private personal data.
- Wide choice of non-crypto securities: Aside from digital currency CFDs, you can also trade forex, commodities, and indices.
- High leverage for crypto trading: The maximum leverage provided for digital currencies is 1:100, a much greater ratio than the average.
- Staking: The cryptocurrencies offered for staking rewards include Ethereum, Tether, and USD Coin.
Upsides of using PrimeXBT
- Anonymous platform (no personal information required)
- 24/7 customer support
- Offers numerous financial instruments aside from crypto
- Zero minimum deposit
- Copy trading service available
- 1:100 max leverage on crypto
Downsides of using PrimeXBT
- Not regulated
- Only permits deposits via crypto
eToro takes a social-media-like approach to crypto trading. Here, you can trade in more than 20 crypto coins. It is suitable for beginners due to the virtual trading option where you can practice with $100,000 worth of virtual money before investing real funds.
Key features of eToro
Here are the main features of the platform:
- CopyTrader: This feature lets you follow the portfolios of experienced investors. Each investor has a risk score attached to them.
- Social trading: With more than 20 million community members, this is one of the top trading platforms for social traders. You can interact with others, sharing ideas and insights.
- Multi-regulated platform: eToro is regulated by authorities like FINRA, FinCen, GFSC, CySec, ASIC, and FCA. They make sure the platform follows the highest security standards.
- Ready-made portfolios: You can choose from pre-made portfolios containing several assets based on a predetermined strategy.
Upsides of using eToro
- Small starting investment
- Well-regulated and licensed
- Social trading features
Downsides of using eToro
- Not available in some US states
Capital.com is a CFD brokerage platform regulated by multiple authorities. Registering on this platform is free, and you only need to provide proof of identification. It supports different payment modes and more than 4000 assets. The system was launched in 2016 and has complied with PCI Data Security Standards.
Key features of Capital.com
The key features are as follows:
- Multiple account types: The three account types are standard, plus, and premier. The standard account has negative balance protection and advanced charting tools. With the Plus account, you get a dedicated account manager and custom analytics. The Premier account lets you access premier events and exclusive webinars.
- Educational resources: Beginners can benefit from the comprehensive courses available on this platform. There are helpful guides and a glossary where you can find a wealth of information.
- Customizable charts: It is easy to interpret the charts on Capital.com. You can choose between different chart types like line charts, Heikin-Ashi, area, bar, and candlestick.
Upsides of using Capital.com
- No commission
- Speedy order execution
- Negative balance protection
Downsides of using Capital.com
- Each fiat currency requires a separate live account
Launched in 2017, Binance is considered the best platform to buy cryptocurrency by many traders. While the fees are quite low, you won’t find some of the lesser-known coins on this platform. The software system is built to execute orders at high speed.
Key features of Binance
Here are the key features of this platform:
P2P trading: Through the OTC portal of Binance, you can directly engage in trade with another person. Although this does not require any transaction fee, you need to pay the spread between the buying and selling price. The minimum transaction amount for P2P trading is $10,000.
Staking rewards: Traders can earn incentives by staking their coins on this platform. Here, you earn interest by using crypto assets to authenticate transactions. Although the rewards are accrued every day, you can receive them once every month.
Crypto to crypto trading: With Binance, you can directly convert one crypto coin to another. This enhances efficiency and does not require you to pay any trading fee.
Upsides of using Binance
- Low trading fees
- Additional services
- Staking rewards
Downsides of using Binance
- Not available in all US states
Kraken is the best crypto trading platform in terms of security. It has never been hacked, and it offers a large number of investment options. Experienced traders will appreciate the advanced tools available on this platform.
Key features of Kraken
Here are the main features of Kraken:
- Advanced tools: Here, you can find real-time order books, along with complex analysis and charting tools and indicators like trading volume and MACD.
- Staking: Similar to Binance, Kraken rewards you every two weeks for staking specific coins.
- Fiat funding: All the major crypto coins on this platform can be purchased with fiat currencies.
Upsides of using Kraken
- Low trading fees
- Large collection of crypto coins
- Advanced tools
Downsides of using Kraken
- Lack of quality education resources
Many traders consider Paxful the best crypto platform simply because it offers multiple payment modes. The minimum deposit requirements are low. This is a decentralized platform acting as an intermediary between buyers and sellers.
Key features of Paxful
Let’s look at the main features:
- Various payment modes: The payment modes supported by this platform include Amazon/VISA/Mastercard gift coupons, Western Union, and PayPal.
- Low service charge: The fee for processing transactions is only 1%, which is low compared to others.
- High security: The platform’s wallet is protected by multi-sig. There is an escrow service available for P2p traders.
Upsides of using Paxful
- Helpful support forum
- Escrow account available
- Direct interaction with other traders
Downsides of using Paxful
- Leverage not available
Coinsquare is the best cryptocurrency trading platform in Canada, and it has been around for quite some time. Newer traders will find this platform well-suited to their needs since it has low trading fees and a simple user interface.
Key features of Coinsquare
- OTC trading: Over-the-counter trading lets you get lower rates compared to order books.
- QuickTrade: This feature allows for instant conversion between 2 digital assets.
- High-end security: Most of the assets are kept in offline storage, and the platform also uses 2-factor authentication.
Upsides of using Coinsquare
- Instant verification
- Referral program
- Low processing time
Downsides of using Coinsquare
- 24*7 support not available
Summary: which crypto trading platform is right for you?
We cannot point out one particular platform and term it the best. As you can see, each has its own advantages and disadvantages, so it is important to determine what you want from the service first. Hopefully, after going through this article, you can make a more informed decision.