Choosing the right cryptocurrency exchange is important, and it should be based on more than rankings and the number of active customers using that exchange. It comes down to which exchange is most cost effective, the quality of the features and the trading instruments it boasts.
Generally speaking, exchanges don’t set up to target the average customers, but instead direct their market towards a niche within the crypto sphere. They target customers based on location, currency, requirements regarding personal details, and much more. Let’s take a look at what exchanges are dominating the market and providing the best service right now.
Binance was developed in China, then the company relocated to Japan before finally moving its headquarters to Malta. The exchange trading platform deals in direct exchanges for cryptocurrency; a one-for-one exchange of the same currency. Binance trumps most other trading platforms when it comes to the pure volume of trades they facilitate each day. Unlike many other cryptocurrency exchanges, Binance doesn’t deal with fiat currency in any form and it’s base unit for exchange is Bitcoin rather than USD. This acts as a positive and a negative for the exchange, as users know what they get there, but in equal measures it also narrows the scope for customers.
Kraken is one of the originals in this sector of the crypto world. It provides a trading platform allowing users to trade in both fiat money and cryptocurrencies. This isn’t a unique feature, as many exchanges offer this service, but there are a lot of options to trade in pairs. Kraken appeals to the more experienced crypto traders, providing a range of unique features to users. Such as a platform to trade with leverage, as well as futures trading, all delivered with 0% fees. The various funding opportunities further adds to the appeal of Kraken. While some of the features might seem fairly alien to newcomers, Kraken has stated that they intend to make their features more accessible to beginners.
If you know anything about cryptocurrency exchanges, you will certainly have heard of Coinbase. With over 8 years in the industry, they are probably the most trusted and well-respected names in cryptocurrency exchange. Regulated by the U.S. financial institution the Federal Deposit Insurance Corporation (FDIC) and supported by some serious investors, including banks and reputable investment firms, Coinbase is one of a kind. Much like at Kraken, Coinbase has a variety of features that really boost its capital. However, unlike other advanced trading platforms, Coinbase offers these services through a more simplistic platform, which has been designed to make trading easy and efficient. However, the focus on reputation and providing a quality user-interface means customers are limited to a maximum number of coin trades.
All of the exchanges we’ve mentioned here today are available in North America and in limited countries across Europe and Oceania. As well as that, these exchanges provide users with the ability to trade the most popular digital currencies on the market.