Top Cryptocurrency Exchanges 2018. Trading Volumes & Reviews.
A cryptocurrency exchange can be viewed as a medium through which transactions in the virtual currency realm are conducted. There are two major types of exchanges:
Cryptocurrency to cryptocurrency exchanges:
this type of exchanges allow users to trade cryptocurrency pairs. Most cryptocurrency trading occurs via Bitcoin or Ethereum and you can exchange your Bitcoin or Ethereum for any other coin listed on the exchange and vice versa. Examples include BitStamp, Kraken, etc.
These exchanges allow you to trade currencies backed by the government e.g. USD, Euro, Yen, etc. for cryptocurrencies. Most fiat exchanges allow the exchange of fiat currencies for Bitcoins. Examples include Binance, Bittrex, etc.
If you desire to be an active trader in cryptocurrencies, you would need to make use of both types of exchanges and you may even need to trade on more than one cryptocurrency to cryptocurrency exchange. Remember, you are trusting an exchange with your money so the least expected of you is to do your due diligence before handing them the trust. The MtGox story is still fresh in the minds of money and it perfectly embodies all that can go wrong with cryptocurrencies. Millions were lost by lots of people and there seemed to be nothing anyone could do about the unfortunate occurrence. Here are some of the factors you should consider before trading on an exchange.
The safety protocol of the website:
you should only trade on secure websites. An exchange’s URL should begin with https and not http. Also, the exchange should enable 2FA activation. It makes your transaction much more secure.
The liquidity of the exchange:
the higher the volume of trade on the exchange, the better. Exchanges with high liquidity typically have more trades going on. It means many others are using their services and while the majority isn’t always right, it is always better not to stray too far from the majority.
The transaction fees:
Exchanges with lower transaction fees typically hold more appeal. If the transaction fees of an exchange are prohibitive, you would obviously be making less return on your investment. However, you need to weight the benefits of the low transaction fees against the speed of transactions.
The coins listed on the exchange:
although most exchanges would have all the popular coins, it is not uncommon to see some obvious omissions on some exchanges. It is better to trade on all-embracing exchanges. Such exchanges have a large number of coins listed and they regularly update their listings. With them, you are less likely to miss out on a new coin that’s enjoying a jolly ride.
The payment options:
the more the payment options an exchange offers, the better it is for you. Some exchanges make use of payment options that require you to disclose your identity before accepting payments. Some others do not have this requirement. You should also consider your privacy and willingness to disclose your identity.
The customer support:
an exchange should typically attend to customer complains swiftly. You can get opinions about the exchange on the exchange’s forum or other popular websites such as reddit.com. If the customer support section of the exchange isn’t up to their task, it may be a bad idea to do business with them.
Highlighted above are some of the factors you need to consider before choosing to trade on an exchange. It is imperative to note that an exchange cannot be likened to a bank where you can keep your money virtual money. It is simply a means of transaction and you shouldn’t see it beyond that. Once you accumulate your profits, do not hesitate to move it to a secure cryptocurrency wallet.