The Top 4 Cryptocurrency Exchanges in the Market
Cryptocurrency exchanges are platforms that allow investors and traders to sell, buy, and trade digital currencies that are mostly purchased with fiat currencies such as the pound or dollar. They can be likened to the traditional stock exchanges but instead of stocks, these exchanges only deal in cryptocurrencies. For anyone interested in starting a journey into the crypto world, a good exchange provides a sound footing to learn.
So, this article will look at the top four cryptocurrency exchanges in the market and their distinctive features.
With a market cap of $1 billion, it is easy to see why Binance is the world’s largest cryptocurrency exchange. Customers, who use the platform to trade about $500 million daily, are enamored with the exchange’s low transaction fee, which is set at around 0.1 percent. Binance allows more than 130 currencies to be traded on its platform.
In addition, the platform’s beginner and advanced trading modes allow customers to personalize the platform to fit their needs. However,the use of fiat is not allowed on the platform. Neither can one margin trade nor short sell. Besides, the minimal regulation of the exchange might be off-putting to some.
This exchange, which was launched in 2012, has been termed by many as the “most beginner-friendly exchange.” Its platform is easy-to-use and allows beginners to either use their wallets to purchase digital currencies or to trade through GDAX, their sister platform for advanced traders interested in trading directly with each other at reduced fees.
This San Francisco-based startup functions as a combination of a wallet, tool, and exchange for merchants. Coinbase is currently licensed in most US states and is also registered with FinCEN as a Money Services Business. The exchange’s wallet is readily available for both Android and iPhone users.
For advanced crypto traders, the Bitcoin Mercantile Exchange (BitMEX) is the preferred trading platform. The Hong Kong-based company solely deals with Bitcoin – a feature that has made it popular among the original cryptocurrency fanatics judging by the over $2 billion transactions it does in a 24-hour period.
Even though fiat is not accepted by the exchange, users can still margin trade and short sell. BitMEX also allows traders to purchase “leveraged contracts like futures contracts and perpetual contracts full of Bitcoin instead of just owning the coin itself.” In other words, any profits or loss accrued are available in XBT not cash. For all of its qualities, the exchange is not available to users in the US.
OKEx is another company from Hong Kong that is popular for offering over 145 coins for trading in addition to its own coin, which is known as the OKB. Traders and verified customers on this exchange receive “discounts, a voting capability in the company, and benefits like margin or fiat trading.” The OKEx website sees daily trading of about $1.5 million according to the company. A down point is that the exchange does not offer its services in the US.
These four cryptocurrency exchanges has everything a crypto enthusiast might need to fully enjoy their journey in the market. It is recommended that one studies what each exchange offers carefully before fully committing to any of them.
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