Looking to Trade Ethereum? Check Out Our Choice of the Best Ethereum Exchanges in 2018
Ethereum is one of the top-three highest-traded cryptocurrencies today. The coin’s history dates back in 2015, having been established by a 19-year old programmer named Vitalik Buterin.
In this post, we will not delve much into Ethereum as a coin, but I’ll leave you with the video below that describes Ethereum in detail, as well as some of its features.
When you wish to invest in the cryptocurrency space, your starting point is most likely signing up on an exchange for you to purchase and trade your digital assets.
In this post, I will take you through the key factors to consider before signing up on a trading platform as well as some of the best Ethereum exchanges you need to know about.
How to Determine the Best Ethereum Trading Platform
With the rising number of cryptocurrency exchanges, one wouldn’t be mistaken to think that at least 10 are created each day. However, most of them never survive to see a serious listing on their platforms due to the tight requirements by regulatory bodies such as the SEC.
That notwithstanding, below are some of the key parameters that can be used to gauge whether or not an exchange is worth your investment.
Security and Authenticity
Security is a major concern to cryptocurrency investors, and it’s imperative for you to do a background check on the level of security of any platform you wish to sign up with. If history is anything to go by, recent times have exposed how vulnerable exchanges can be when it comes to shielding their investors’ funds; take for example the recent hacking of two major exchanges, namely Mt. Gox and Coincheck, which led to the loss of millions of dollars in investor funds.
In addition, watch out for “pump-and-dump” exchanges. Some exchanges have a poor coin listing policy, which results in the dumping of projects that are not actually operational.
Purchase and Payment Methods
The method of payment will differ from one exchange to the other. Some accept fiat currencies as well as cryptos, while others are entirely crypto-to-crypto exchanges. Ensure that you’re comfortable with the payment methods offered on a platform prior to committing to it.
The same also will apply when it comes to purchasing your coins. Keep in mind that most exchanges currently offer convenient methods of payments, but don’t be shy to look around for what suits you best.
Transaction fees vary across various exchanges; this is why you need to shop around for the best rates. While some platforms may charge fees as high as 5% of the transaction amount, others are charging as low as 0.5%. As you can see, the variation is quite wide, and you simply can’t afford to miss taking advantage of it.
The level of interaction between a platform and its users will highly depend on its interface. The more user-friendly a platform is, the better for its users. As you look into signing up an exchange, consider reading user reviews on forums such as Reddit, Quora, Telegram, and more just to get a sneak peek of the functionality of the platform.
Very few exchanges don’t support Ethereum and Bitcoin, which is the most popular trading pair. However, it is necessary to trade on a platform with multiple trading pairs to grant you trading flexibility. Also, consider signing up on a platform that offers “stable” currencies to provide you with a form of a hedge against price fluctuations. An example of a hedge coin is the True-USD, which is backed by the USD and is directly collateralized in various financial institutions.
Other key things to consider include geographical restrictions, assets liquidity, and user privacy, among other things.
Let’s now look at some of the top Ethereum exchanges we highly recommend.
Coinbase is a US-based cryptocurrency that trades Ethereum, Bitcoin, Litecoin, Bitcoin Cash, and Ethereum Classic.
The platform is known for its user-friendly interface making it suitable for beginners as well as advanced users.
Coinbase offers its users a platform that enables them to purchase Ethereum directly on it via bank transfers and credit and debit cards.
In terms of transaction fees, the platform is mostly affordable; users are charged a standard fee of 1.49% of the transaction amount for all bank transactions. Credit card purchases attract a slightly higher fee of 3.99% due to the risk involved.
One of the advantages of trading on Coinbase is that they focus on the reputable coins only; this means that you can trade your Ethereum currency against its equals.
Why Trade Ethereum on Coinbase?
- It offers some of the best exchange rates
- It is highly secured
- Coinbase is beginner friendly
- Supports fiat currency purchases through bank wires, debit and credit card payment methods.
Kraken is one of the oldest cryptocurrency exchanges, currently trading a total of 71 coins including Ethereum, Bitcoin, Dash, Ripple, and more.
Kraken offers its users many perks including improved security controls, legal compliance with the set trading standards, limit orders and stop orders, as well as more than 50 trading pairs to choose from.
The platform enjoys high trading volume making its assets one of the most liquid in the cryptocurrency markets. In addition, Kraken offers faster transaction speeds while applying one of the lowest fees in the industry.
Why Trade Ethereum on Kraken?
- Kraken’s assets have a high liquidity compared to those of most other exchanges
- The platform has a huge coin listing, you can trade your Ethereum with more than ten pairs
- Users can enjoy lower transaction fees
- Kraken is supported in more than 90% of the countries around the world
Coinmama is considered one of the best trading platforms for Ethereum. The exchange allows its users to buy Ethereum using either a debit or credit card.
Coinmama has the instant purchase functionality, which processes user transactions in real time.
Apart from Ethereum, the platform trades Bitcoin, Litecoin, Ripple, and Qtum, among other coins.
Perhaps one of the notable concerns with the platform is that it charges a relatively higher transaction fee of 5.5%, which is among the highest in the crypto exchanges. In addition, when signing up on the platform, be sure to have your wallet ready as it does not provide an online wallet for its users for security reasons.
Another issue users have with the platform is that at the moment, it only sells cryptocurrencies; in case you wish to sell your coins, you may have to trade them on a different platform.
Other than these issues, Coinmama is one of the most secure platforms offering very competitive prices for its listed assets.
Why Trade Ethereum on Coinmama?
- Coinmama offers some of the best security features including two-factor authentication and information encryption
- It accepts purchases made in using currencies
- The platform lists the most reputable coins only
- It has a user-friendly interface
Founded in 2014, Bittrex is largely regarded as a secure and developed exchange with a customized engine meant to the enhanced faster execution of transactions. The exchange was developed by a team of experienced professionals with cumulative experience of more than 50 years.
The Nevada-based exchange is keen on securing its platform by dealing in only trustworthy coins.
Despite its focus on reputable coins only, the platform boasts more than 190 cryptocurrencies on its exchange with Ethereum being one of the highest-traded assets.
One distinguishing feature of this platform is its affordable fee, which currently stands at 0.25%, presumably one of the lowest in the industry.
Why Trade Ethereum on Bittrex?
- Very low transaction fees
- Highly secured
- Lists only reputable cryptocurrencies
- Has more than 190 altcoins listed on its platform
Bitstamp is another popular exchange in the cryptocurrency community and is better known for its high trading volume, which offers more liquidity to its assets.
Found in 2011 in Luxembourg, the platform offers one of the lowest fees in the industry at only 0.25% of the transaction amount.
Other than Ethereum, Bitstamp offers a host of other coins including Bitcoin, Ripple, Litecoin, and more. Despite being a European-based exchange, the platform enjoys a user base drawn from all parts of the world including the US, South Africa, and Canada, among others.
Why Trade Ethereum on Bitstamp?
- Bitstamp offers high liquidity for its listed assets
- It operates in numerous countries around the world
- Applies very low fees
- Contains a variety of coins that can be traded with Ethereum
All of the platforms discussed here will offer you a place to trade your Ethereum, but the differentiating factors lie in their transaction fees, user interface, security, payment methods, and supported coins. Depending on your preferences, you can look through each of them using the five listed Key Performance Indicators (KPIs).
Another important takeaway from this guide on best Ethereum exchanges is that no single platform is likely to have all you need. It may, therefore, be wise to sign up with several platforms depending on what they contribute to your list of what you consider to be qualities of a good Ethereum trading platform.