Review of cryptocurrency exchanges. What criteria should you follow when choosing an exchange?

The exchange provides a platform for transactions in many areas of exchange. The exchanges themselves take place between the participants of the exchange, and the exchange itself is needed in order to bring people together and provide a guarantee that the transaction will take place fairly. In fact, this is where the exchange makes money, taking a fraction of a percentage of all transactions carried out through it. Today we will present a brief overview of some of them.

The cryptocurrency market differs significantly from other foreign exchange markets primarily in that it is in the position of Schrödinger's cat. Cryptocurrency at this stage of its development is not backed by anything, and no one stands behind it (neither the state nor other structures). However, this does not at all prevent millions of people from making good money by trading crypto money.

What you should pay attention to when choosing a trading platform:

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

 • commission (it may differ on different platforms, but on average it is 0.2%);

 • the number of trading pairs that the exchange operates

 • liquidity (this indicator largely depends on the daily trading volume);

• payment options (some exchanges support many payment methods, including bank transfers, while others allow deposits and withdrawals only in cryptocurrency);

• requirements for user verification. 

Other criteria for choosing an exchange include:

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

• the convenience of the user interface;

• the availability of various technical analysis tools, including the presence of exchange rate monitoring;

• the availability of convenient statistics on operations;

• the possibility of margin trading (and, as a result, the possibility of receiving passive income from providing loans to other exchange participants), etc.

Let us highlight trading platforms that confidently occupy the top lines of the ratings of the most popular cryptocurrency exchanges: Binance, Poloniex, Bitfinex, Bitstamp, Kraken. 

Binance is a fairly young Chinese exchange. In less than a year, it has gained popularity among a wide range of traders around the world. This week, set a record for the amount of daily transactions among crypto exchanges, concluding transactions in an amount exceeding $5.5 billion.. 

What does this exchange offer users?

Pros:

• large selection of cryptocurrencies for trading. To date, their number is 222, with new altcoins being added frequently; 

• minimum commissions: 0.1% for standard trading and 0.05% when trading pairs with the Binance Coin cryptocurrency; 

• user-friendly interface; 

• various indicators and technical analysis tools, adding cryptocurrency pairs of interest to bookmarks, viewing charts in full screen mode;

• the ability to view exchange rates without registration and carry out trading without mandatory verification (two-factor authorization for depositing and withdrawing funds is still required); 

• language support (8 languages);

• referral program - you can receive 50% of the trading commission for all users invited through your link; 

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

Disadvantages:

• Russian localization is lame;

• lack of input and output of fiat currencies; 

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

Poloniex  was founded  in January 2014. The company is based in San Francisco (California). Initially, the exchange focused on the United States market, but its universal popularity and large trading volumes attracted altcoin traders from all over the world. In addition to the most promising and interesting coins, little-known but promising ones are also presented for trading - more than 140 exchange directions are available for transactions. Poloniex is probably the most famous altcoin exchange. Supports languages: English. No affiliate program..

Pros:

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

 • verification is not required to withdraw amounts less than $2 thousand; 

 • user-friendly website interface, navigation and sorting of tokens;

 • wide functionality - the ability to trade, issue loans and take out loans;

 • standard trading, and margin trading with leverage;

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

 • low fees for transactions and input/output. The exchange has switched to a new model of charging commissions for transactions called “maker-taker” - if a trader buys coins below the market price or sells above others, then he pays less. In general, the commission ranges from 0 to 0.25%;

• LENDING is not a typical section for most exchanges, which offers to take and issue loans to users; 

• convenient charts, various technical analysis tools. 

Cons:

• does not support fiat currencies; forced verification if the administration has doubts about your operations; 

• lack of a mobile application, although there is a mobile version of the site; 

• lack of a Russified version of the site.



Bitfinex has been registered in Hong Kong since 2012. It has impressive trading volumes and is one of the largest.  Personal verification is required to deposit and withdraw funds, and the conditions are quite strict. 31 trading pairs, 14 currencies and cryptocurrencies are available for trading. Allows you to conduct margin trading.

Pros:  

• versatility (margin trading with leverage up to 3.3x, the ability to provide and receive loans); high liquidity; 

 • commissions vary: for a market maker 0.1% and below with increasing turnover, and for a market taker 0.2% and below; 

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

• has official applications for Android and iOS;  

• customizable interface (selection of topics, sorting, translated into Russian, etc...); 

• technical analysis tools built into TradingView; 

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

Disadvantages:  

 • when replenishing your wallet or withdrawing funds via bank transfer in USD, the exchange retains a commission of 0.1%, but not less than $20. Therefore, it is better to top up through cryptocurrencies; 

 • complex verification: documents must be provided in English.

Bitstamp is one of the first serious platforms that appeared for interested parties to work with Bitcoin. It was created in 2011 and has a license to operate in this segment. The license granted by the Luxembourg Ministry of Finance (CSSF) makes Bitstamp the first regulated and licensed cryptocurrency exchange in the EU. This license gives the exchange the right to provide services in all countries that are part of the European Union. 

Pros:

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

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

• depositing and withdrawing funds is possible in such ways as SEPA (European transfer), payment systems AstroPay, Ripple, international bank transfer; 

 • dynamic commission from 0.5%, which decreases with increasing trading turnover.

Disadvantages:

 • carries out only one type of transaction, in which the Bitcoin cryptocurrency is converted into US dollars; 

• supports only 9 pairs; 

• does not support popular payment systems such as WebMoney, Yandex.Money, QIWI, PayPal, and so on.

Kraken was founded in 2011 and is currently one of the largest exchanges in terms of trading volume. With Kraken, you can buy, sell and exchange Bitcoin for other cryptocurrencies, as well as fiat currencies such as US dollars, Canadian dollars, euros, British pounds and Japanese yen. More than 49 trading pairs and 15 cryptocurrencies are available on the exchange. For advanced users, Kraken offers margin trading and many other trading features.. The German bank Fidor and the American bitcoin exchange Kraken have joined forces to create the first specialized cryptocurrency bank.

Pros:  

 • good reputation, high liquidity;  

 • for business clients, as well as for clients who carry out transactions with large amounts of funds, a corporate program is provided; 

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

• the ability to top up your wallet with various fiat currencies and cryptocurrencies;  

• the presence of an 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 transaction fees; There is an application on IOS; 

 • excellent support.

Cons:

 • not intuitive user interface; 

• high fees for replenishing your wallet and withdrawing funds;  

• more suitable for advanced traders.

We closely follow the news of crypto exchanges and will review all sites that are of interest to our readers.