Ahoy Steemians!
With each passing day, we can see the drastic spike and fall of cryptocurrencies. While many are skeptical about cryptocurrency there are also many who are in the crypto market for the long haul.
2017 was a huge year for cryptocurrencies. The explosion of growth in the market also meant an explosion of questions. Many people ask things like “where can I buy cryptocurrency?” or “which cryptocurrency is best to purchase?”
To answer these questions we will look at the best cryptocurrency exchanges of 2018.
If you know anything about stock exchanges, you’ll have no trouble grasping cryptocurrency exchanges. They simply provide a marketplace for buying/selling/trading cryptocurrencies. The goal of any exchange is to provide a fair and orderly opportunity for anyone to invest in the market. Exchanges make money by charging small fees on the transactions that take place on their platforms. There are tons of cryptocurrency exchanges out there, and there’s a chance we see others emerge as the crypto craze continues to grow.
There are many factors that go into a good exchange, the obvious being reputation and security. As with any software platform, a good UI can make all the difference. Other factors to consider are the available order types, altcoins, maker/taker transaction fees, and payment options.
Each of us has different priorities and will value each of these things differently.
Let's take a look at some of the most popular cryptocurrency exchanges of 2018.
https://www.coinbase.com/?locale=en
Fiat support: Yes
Altcoin support: None
Order types: Market, limit, stop limit
Transaction fees: No maker fees, moderate taker fees
One of the most reputable and well-known platforms, Coinbase supports 32 countries spanning from North America, through much of Europe, the UK, and Australia. Asian investors will have to look elsewhere, as only Singapore is supported. Coinbase is very beginner friendly and often the choice for traditional investors looking to just get their hands on some Bitcoin. Available coins are currently limited to a few of the largest players: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Payments can be made after authorizing a bank account, or by credit card (with a higher transaction fee). This is a bit different from traditional exchanges, where you must deposit fiat money in your exchange account before placing a buy order.
GDAX, an extension of Coinbase, functions as a traditional exchange offering a real-time marketplace for trading the same four coins as mentioned above. However, being more of the traditional exchange that it is, traders may swap their Bitcoin for other coins. For example, you have the option to trade your Bitcoin for Ethereum and vice versa. There is currently no fees for moving funds from Coinbase to GDAX as they are partner platforms.
Both Coinbase and GDAX use a simple and clean user interface that should be intuitive to figure out.
Great for: Beginners who need a simple platform for buying and selling.
Not great for: Day traders who are looking for serious technical analysis tools and a large selection of coin pairs to trade between.
https://www.kraken.com
Fiat support: Yes
Altcoin support: Moderate
Order types: Market, limit AND margin trading
Transaction fees: Moderate
Kraken is a San Francisco-based exchange that sees the highest volume among European traders. It boasts some perhaps one of the most complete set of perks with fiat support, a few altcoins, and margin trading. Fiat currencies EUR, USD, JPY and CAD can be utilized after a bank wire deposit. The only issue is the Kraken UI. It’s largely unintuitive and often difficult to navigate.
Great for: Traders looking for complete-set of features.
Not great for: Traders looking for simple user interface or large altcoin selection.
Fiat support: No
Altcoin support: Good
Order types: Limit, stop limit AND margin trading
Transaction fees: Moderate
Yet another of the most popular exchanges worldwide, Poloniex is a solid and reputable choice for traders looking for a decent selection of altcoins. A major advantage of Poloniex is the ability to trade on margin, giving seasoned traders the option to short coins. Although there are only a handful of coins available for margin trading, this is a very welcome feature that seems to be pretty rare to find in the current state of crypto exchanges. Like many of the others, the Poloniex UI does not offer much in the realm of advanced technical analysis tools, but overall is a great interface that provides tons of useful information without seeming too cluttered.
Great for: Traders who are looking to margin trade.
Not great for: Traders who are looking for access to the largest number of altcoins.
Fiat support: No
Altcoin support: Good
Order types: Limit, stop limit AND margin trading
Transaction fees: Moderate
Yet another of the most popular exchanges worldwide, Poloniex is a solid and reputable choice for traders looking for a decent selection of altcoins. A major advantage of Poloniex is the ability to trade on margin, giving seasoned traders the option to short coins. Although there are only a handful of coins available for margin trading, this is a very welcome feature that seems to be pretty rare to find in the current state of crypto exchanges. Like many of the others, the Poloniex UI does not offer much in the realm of advanced technical analysis tools, but overall is a great interface that provides tons of useful information without seeming too cluttered.
Great for: Traders who are looking to margin trade.
Not great for: Traders who are looking for access to the largest number of altcoins.
https://bittrex.com
Fiat support: No
Altcoin support: Great
Order types: Market, limit, stop limit
Transaction fees: High
Bittrex is another US based exchange, with usage all across the world. This exchange puts a lot of focus on supporting as many altcoins as possible, including very new and emerging ones. Currently, they support over 190 coins. A common complaint with Bittrex is high transaction fees (currently at 0.25% on all trades). The UI is pretty good and gives a fairly high number of technical analysis tools for those who are interested.
Great for: Traders who are looking for access to as many altcoins as possible.
Not great for: Traders looking to minimize fees.
