The following table represents 10 of the cheapest cryptocurrency exchanges based on their trading fees and other significant charges. It is not an exhaustive list by any measure but provides you with a good snapshot of where you can buy and sell Bitcoin at a lower cost. You should also be aware that exchanges are listed in alphabetical order, not by their fees.

Using the Cheapest Cryptocurrency Exchanges

There are several reasons why high-frequency traders or, in fact, anyone would want to use an exchange with lower fees. However, there are some considerations you should keep in mind before simply going for the cheapest option.

Advantages of the Cheapest Cryptocurrency Exchanges

Here are some of the main advantages of using exchanges with the lowest fees:

• Lower costs – This advantage is pretty obvious, but it is the main advantage of using such platforms. Even a tiny difference multiplied by tens or hundreds of trades per week can quickly make a difference in your capital.
• Higher liquidity – Exchanges that are able to offer low costs whilst maintaining a high degree of security normally attract a large volume of trades, giving it high liquidity. This is important since it ensures that you will receive your funds in a timely manner, without delays caused by a lack of funds from the exchange’s side.
• Available tools – Exchanges that do not solely rely on trading and payment fees to generate their income are more prone to offering a choice of tools and features. eToro platform is a great example of this, offering CopyTrade and CopyPortfolio options to attract beginner investors.
• Coin selection – Continuing from the previous advantage, low-cost exchanges seek to attract a greater market by offering a better selection of coins and tokens. There are some exceptions to this advantage.

Disadvantages of the Cheapest Cryptocurrency Exchanges

Using low-cost exchanges certainly sounds appealing, but you should be aware of potential risks. These include:

• Weak security – If an exchange is not generating enough income it may have to decrease or stop spending money on security. The end result is that your funds get hacked or completely stolen during a transaction.
• Unregulated platform – Another area where the cheapest cryptocurrency exchanges may try to reduce costs is regulation. Using an unregulated platform is not necessarily dangerous, however, an operating license provides an extra layer of trust and repute.

How Does a Cryptocurrency Exchange Make Money?

There are several different ways that cryptocurrency exchanges make money in order to stay operational. The main four areas are:

• Trading fees – These are fees that are directly associated with a transaction and can be marked as commissions or spread.
• Listing fees – These are fees that companies or individuals pay to exchanges in order to launch their public offering.
• Market making – These are fees that are generated as a result of a market-making or market-taking order.
• Payment fees – These encompass general admin fees, but are mostly-commonly deposit or withdrawal fees.

Cryptocurrency exchanges are responsible for their own security, listings, and services. They are therefore also free to set their own fees and charge whatever service they wish. Naturally, expensive exchanges are often shunned for cheaper alternatives, so every platform tries to strike a good balance.

Trading Fees

The traditional trading fee associated with exchanges is the commission, although many cryptocurrency exchanges do not charge this fee. Commissions are normally a set percentage based on the value of the transaction which can be as low as 0.1%. Today, the spread is the most common trading cost and is considered to be the difference between the buy and sell price of a coin. Spreads are normally calculated in pips.

Listing Fees

An area of cryptocurrencies that is quickly gaining traction is coin and security offerings. Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) are the main types of such token launches. By allowing the sale of a token to be carried out on their platform, exchange owners can collect a percentage of collected funds whilst providing additional credibility to the project.

Market Making

The creation of markets is one of the main ways that the cheapest cryptocurrency exchanges make money. Market making essentially means buying and selling coins and tokens on the exchange at a slightly higher price when compared to a second exchange. When a trade takes place, a counter trade is automatically made on the second exchange.

This results in a margin for the exchange where the original trade took place. Market Making has become increasingly sophisticated and complex, with Artificial Intelligence (AI) involved to carry out several transactions across different exchanges at the same time.

Payment Fees

This revenue generation model is not common amongst the cheapest cryptocurrency exchanges since it tends to put day traders off very quickly. The main payment fees are related to deposits and withdrawals and take place whenever you initiate a payment to and from the exchange. In an increasingly competitive world, deposit fees have almost vanished, yet some exchanges continue to charge withdrawal fees to cover their processing costs.

Discounts Offered by Cryptocurrency Exchanges

In order to compete in an extremely crowded market, exchanges utilise discounts to try and win over new users. There are several different ways platforms provide discounts, including sign up bonuses and ongoing promotions. However, the two most common types of exchange discounts are the following:

• Native token discount – Given to traders in exchange for them choosing to use an exchange’s own cryptocurrency.
• Volume trading discount – Given to traders who accumulate a high volume of trades over a set period of time.

Native Token Discount

Several cryptocurrency exchanges have released their own native tokens and encourage users to invest in them by offering discounts on trading fees. Binance Coin (BNB) is a perfect example of native tokens being used to incentivise user investment. By owning BNB and using it to pay fees, Binance will reward you with a 25% discount. Other exchanges run similar promotions and offers.

Volume Trading Discount

Cryptocurrencies reward serial traders with discounts based on trading volumes. There are different ways that these volumes are calculated, but the normal practice is to take a trader’s last 14, 21, or 30 days and add up the total volume traded. Bitfinex, for example, calculates the trader’s last 30 days trading volume in USD and provides an equivalent discount. For example, traders who have volumes exceeding $7.5m enjoy 0% maker fees and 0.2% taker fees. Taker fees can be discounted to as low as 0.055% with even greater volumes.

Choosing the Cheapest Cryptocurrency Exchange For You

The following list represents some of the cheapest, yet reliable and secure, cryptocurrency exchanges.

Binance

Binance is one of the biggest cryptocurrency exchange platforms in the world and operates several geographical subsidiaries, including Binance.us and Binance Jersey. The main Binance exchange, known as Binance.com, gives traders access to over 100 different coins and ICO tokens. In addition to supporting both fiat-to-crypto and crypto-to-crypto conversions, the exchange works across devices, including smartphones.

Binance’s main fees start at 0.1% Maker and 0.1 Taker. Discounts of up to 25% are available when using the exchange’s native coin, Binance Coin (BNB). The exchange does not charge any deposit fees and withdrawals vary by coin. Withdrawing Bitcoin, for example, costs 0.0005BTC. One of the world’s cheapest cryptocurrency exchanges offers further discounts for 30-day high volume traders, with the cheapest standard rates going as low as 0.012% Maker and 0.024% Taker.

Bitfinex

Bitfinex is a much-loved cryptocurrency exchange that is designed especially for serial traders. It provides access to over 45 different coins and tokens and supports traders with a comprehensive suite of charting and analysis tools. Furthermore, Bitfinex is highly secure, yet functional and convenient.

Bitfinex’s default Maker and Taker fees are 0.1% and 0.2% respectively. Discounts are available and based on 30-day volumes. The lowest standard fees are 0.00% Maker and 0.055% Taker, though it would take a cumulative 30-day volume of over $30 billion to achieve. The exchange does not generally charge deposit fees, apart from fiat payments of over $1,000 in value. Withdrawals are subject to a fee that varies by coin. Bitcoin withdrawals are charged at 0.0004BTC per payment.

BitMEX

BitMEX is a P2P cryptocurrency derivatives exchange that only supports Bitcoin payments. Although it is not regulated it is well-respected in the industry for offering a fair and reliable service. BitMEX has a very simple dashboard which makes it easy to use and provides a Knowledge Base to help traders become familiar with cryptocurrency derivative trading.

BitMEX’s base trading fees are -0.025% Maker and 0.075% Taker. This means that traders making the trade actually get a rebate. Discounts are available based on the length of the trade, with short trades subject to a further rebate which varies by coin. The exchange does not charge any deposit or withdrawal fees, although withdrawals are subject to the Bitcoin network fee.

BitPanda

BitPanda is one of the largest cryptocurrency exchanges in Europe, offering both a brokerage and pro service. Whilst its brokerage features more convenience for higher fees, its pro service makes it one of the cheapest cryptocurrency exchanges available. The exchange is known for its safety measures, utilising DDOS protection and SSL encryption amongst other features.

BitPanda Pro’s base trading fees are 0.1% Maker and 0.15% Taker. 20% discounts on these fees are applicable when using Bitpanda Ecosystem Token (BEST) to pay for them. The exchange offers seven levels of trading volumes with each level featuring lower fees. By trading volumes in excess of 20,000 BTC you can achieve fees of 0.05% Maker and 0.065% Taker.

ByBit

ByBit is a cryptocurrency derivatives exchange that was only launched in 2018 but quickly gained popularity amongst day traders. Although the exchange is not regulated it implements numerous security measures, including storing the majority of its funds in cold storage wallets. The exchange supports users from around the world and is available in numerous languages.

ByBit’s base trading fees are -0.025% Maker and 0.075% Taker. This means that opening Maker positions result in a rebate. The ByBit platform seeks to be the cheapest cryptocurrency exchange for everyone, irrespective of trading volume, so does not offer discounts to serial traders. Furthermore, it does not charge any deposit or withdrawal fees, although external mining fees could be charged.

CEX.io

CEX.io is a European exchange platform fully licensed to carry out money-based transactions which launched in 2013. The CEX.io exchange was designed with professional traders in mind and offers an extensive range of analysis and charting tools. Furthermore, it also offers a staking service whereby it rewards investors for keeping coins and tokens in their CEX.io wallet. The exchange is known for its safety and functionality, offering a diverse range of coins and tokens, and is available in over 100 countries.

CEX.io’s base trading fees are 0.16% Maker and 0.25% Taker. Discounts are available based on 30-day trading volumes. The lowest standard trading fees available from this exchange are 0.00% Maker and 0.10% Taker. Trading volumes greater than 6,000 BTC would be required to achieve this discount. CEX.io also charges deposit and withdrawal fees depending on the payment method used.

ChangeNOW

ChangeNOW is a non-custodial cryptocurrency exchange that lets you trade over 200 coins and tokens with other traders at very low fees. It is one of just a few reputable exchanges which does not normally require account verification, yet it is considered to be safe. This is because large trading volumes are oftentimes subject to KYC and AML checks.

ChangeNOW’s primary fee is the spread, which varies by the type of exchange rate and particular coin. The fixed exchange rate offers certainty by not allowing rates to change, however, this results in higher fees. The classic rate is subject to fluctuation but provides the lowest spreads. These start at 0.5% and increase up to 4%. In addition, the exchange does not charge deposit or withdrawal fees since it is not custodial.

Coinbase Pro

Coinbase Pro is the high-volume trading arm of one of the world’s biggest cryptocurrency brokerage service provider. Featuring numerous advanced trading tools, including margin trading and asset analysis, it offers significantly lower fees than the original Coinbase platform.

Coinbase Pro’s base trading fees are 0.50% Maker and 0.5% Taker. Discounts are available for 30-day trading volumes which exceed $10,000. The lowest standard fees are 0.00% Maker and 0.04% Taker, which are offered to traders exceeding $1 billion in trades. Most deposit and withdrawal methods and currencies incur a fee, with just a few exceptions.

eToro

eToro is a global trading platform that is regulated in several countries. It has recently introduced the option to buy and sell several coins and tokens. As a result, traders get the possibility to buy and sell numerous assets from a single, user-friendly, and low-cost platform. In addition, eToro offers an extensive range of tools, including educational resources, tutorials and news.

Contrary to other exchanges in this list, eToro does not charge Maker and Taker fees. Instead, it sets a spread on the coins. This spread varies by coin and, in the case of Bitcoin, is set at 0.75%. eToro prides itself of offering the lowest spreads to all users so no discounts are available to standard account holders. Moreover, the exchange does not charge any deposit or withdrawal fees, subject to a minimum limit and a maximum number of payments.

Kraken

Kraken is known as one of the world’s oldest cryptocurrency exchanges and today counts millions of users worldwide. Whilst not regulated, it enjoys the respect of several banks and financial institutions for its sophisticated security measures and four-tier verification process. Even though the Kraken exchange only supports a small number of coins and tokens, it offers some of the lowest fees in the industry along with several trading pairs.

Kraken’s base trading fee is 0.16% Maker and 0.26% Taker. Discounts are available to high volume traders and are based on 30-day totals. The lowest standard fees are 0.00% Maker and 0.10% Taker. Kraken does not charge any deposit fees although withdrawals are subject to a small fee based on the currency. Bitcoin payments, for example, are charged at 0.0005BTC per transaction.

What to Look For in the Cheapest Cryptocurrency Exchange

So as to have a good trading experience, there are several other factors which you should consider. We’ve already covered how safety should be at the top of your mind, but here are some other features to consider.

Simplicity

If you plan to carry out numerous trades per day or week, or even just wish to make a single transaction, having a user-friendly interface can be extremely beneficial. Design and user experience is an area where many exchanges compete, and this benefits all crypto traders.

Reliability

This factor is most important to high-frequency traders. Trading during times of high volatility is what makes a big impact on your results, yet some exchanges are not able to handle a sudden and significant increase in trading activity. This is why you should opt for exchanges that have proven to be reliable even during extremely busy periods.

Support

Trying to be the cheapest cryptocurrency exchange can quickly lead to underfunding the support team. This is an important tool which you would only realise is missing when you really need it. The best exchanges provide live chat support, ideally 24/7, to assist all their users in a timely manner.

Mobile

Some of the best exchanges are available across digital devices, including smartphones. In most cases, the features offered on the desktop is also available on the mobile app. However, some exceptions exist, especially with regards to allowed trading limits and coin availability. You should always check the features of the mobile app before relying on it exclusively to trade.

The post Cheapest Cryptocurrency Exchanges appeared first on Cryptimi.

Consequently, many countries started restricting or even banning ICO token sale events. Since then, cryptocurrency start-ups were on the lookout for an alternative to raise funds for their projects. This is where IEO Exchanges made their debut: they became a great tool for both start-ups and crypto investors alike.

What Are IEOs Exchanges?

An Initial Exchange Offering (IEO) is a token sale or fundraising conducted by a cryptocurrency exchange on its platform. Unlike ICOs, an IEO is fully managed by a crypto exchange on behalf of the start-up in question, which needs to raise funds by selling its new tokens.

Since the IEO is scheduled and conducted by cryptocurrency exchanges, start-ups must pay a listing fee to them to list their tokens on the platform. Apart from such fees, token issuers also need to pay the agreed amount of tokens to the crypto exchange to use the platform’s services. In short, a cryptocurrency exchange acts as an intermediary between the start-ups and investors.

Before listing an IEO on its platform, a cryptocurrency exchange screens the start-up thoroughly to ensure that it is legitimate. Otherwise, the crypto exchange will not schedule the IEO on its platform. This step is essential in order to avert scam ventures from raising funds, thus making IEO exchanges more secure and trustworthy than ICOs for investors.

Additionally, since IEO tokens are listed on the exchange’s platform immediately after the token sale, investors can get instant liquidity for their assets. Moreover, they needn’t go through the inconvenience of dealing with several token issuers to buy different types of tokens. Instead, they can start investing in their desired projects from within the exchange platform itself.

IEO vs ICO

When compared to ICOs, IEO exchanges offer several significant advantages for start-ups. In ICOs, start-ups need to spend a huge amount of money to attract investors and gain their trust for fundraising. However, an IEO helps crypto start-ups to significantly reduce their marketing budget, as marketing and promotion of tokens are handled by the crypto exchange.

Moreover, start-ups needn’t worry about KYC (Know Your Customer) and AML (Anti-Money Laundering) checks, as these are taken care of by the cryptocurrency exchange. Therefore, an IEO provides a standard model of raising funds for someone who can design and develop innovative projects.

Overall, an IEO provides a significant number of benefits not only to investors and start-ups but also to the cryptocurrency exchanges. By listing reputable IEOs on its platform, a cryptocurrency exchange can acquire a completely new customer base and even extend the portfolio of its existing customers.  

Generally, any cryptocurrency exchange which lists IEOs on its platform is known as IEO exchange. At present, IEO is only supported by a limited number of cryptocurrency exchanges such as Binance, Bittrex, OKEx, KuCoin, and ProBit.  However, it is believed that more cryptocurrency exchanges will embrace the concept of IEOs in the near future. 

Most exchanges allow users to buy IEO tokens with the exchange’s own native token. Only very few exchanges, like Bittrex, accept other currencies to participate in IEO token sales.

Binance

Binance is one of the very few exchanges that has gained the trust of millions of investors in a short span of time. Even though it was quite recently launched in 2017, it has grown rapidly and become the world’s largest crypto exchange.

It allows users to quickly trade Bitcoin, Ethereum and hundreds of other altcoins or tokens on its platform. Binance has its very own token named Binance Coin (BNB) and it offers attractive discounts to users for using BNB to trade other cryptocurrencies.

Considered to be one of the best crypto-to-crypto exchanges with high trading volume and liquidity, Binance provides a handful of professional trading tools. These include in-depth pricing charts and advanced trading techniques like margin trading to cater to seasoned investors.

Furthermore, it offers both an integrated wallet and a wallet service from Trust Wallet for its customers to store their cryptocurrencies. As to fees, this exchange follows the maker/taker model, charging a nominal trading fee. The only drawback is that it doesn’t accept fiat currencies

As one of the early adopters of IEO, Binance launched its own IEO platform called Binance Launchpad at the start of 2019. BitTorrent (owned by TRON) was the first token issue that launched its token sale on Binance Launchpad.

So far, Binance has conducted more than 10 IEO token sale events on its platform. Before listing a project on its Launchpad, Binance checks the project thoroughly, evaluating various factors such as the objective, scope, growth potential and stages/roadmap of project development. Additionally, it also checks the profiles of the project’s team members.

When participating in IEO token sale events, users need to create an account on Binance exchange and verify their identity by uploading relevant documents. Binance has also launched a new Lottery Token Sale System which allows BNB owners to claim lottery tickets depending on their BNB balance over a 20-day period up to the day of the lottery. In this system, users can claim up to a maximum of 5 tickets per account.

Even though Binance is not regulated by a legal entity, it follows extensive security measures to protect its customers’ assets. Some of the notable security features include anti-phishing code, SSL encryption, PCI scanning, and pseudonymisation. Apart from that, it provides two-factor authentication to protect customers’ funds from unauthorised access.

ProBit

ProBit is a South Korean-based cryptocurrency exchange that aims to provide an easily accessible IEO exchange, with advanced trading tools for users.

Essentially, it is a coin to coin trading platform and doesn’t support any fiat payment options. ProBit has its own native token called PROB. The exchange offers trading fee discounts and other numerous benefits for PROB token holders.

Like most of the crypto exchanges, ProBit also supports a wide variety of altcoins and tokens on its platform. It also follows the maker/taker model and trading fees vary depending on the membership level (Standard / Premium / Market makers). In case users decide to pay fees using PROB, then they will get a discount (of up to 50%) on the trading fee.

Even though ProBit is a relatively new exchange, it is an early adopter of IEO and has completed over 20 token sale events on its platform. It lists only promising projects after conducting an extensive review of the project.

Additionally, it conducts IEO with more than 5 currencies (BTC, ETH, XRP, PROB, USDT), multiple sales round, different bonus rates, and various lock-up structures. It also stores customers’ funds received from IEO with the same high-level protection that it uses for the exchange’s deposits. To participate in IEO crowdsale, users would need to have completed their KYC verification process. 

ProBit supports the use of hardware security keys to provide enhanced security for the customers’ assets. Apart from this, it provides two-factor authentication (2FA) to protect customers’ accounts from hackers.

OKEx

OKEx is one of the largest cryptocurrency exchanges in the world with a trading volume of $1.5 billion BTC per day. It was originally launched in 2014, in China. However, more recently the exchange has moved its headquarters to Malta. OKCoin is the parent company of OKEx which was founded by the investor Star Xu. 

Offering both spot and derivative trading on more than 100 cryptocurrencies, OKEx supports both fiat-to-crypto and crypto-to-crypto trading options. It provides a multicurrency wallet for users to store their digital assets.

It also offers a wide range of innovative trading features such as technical analysis and algorithmic trading tools to meet the needs of both novice and experienced traders. Since OKEx offers a volume-based maker-taker fee schedule, trading fees vary based on users’ 30-day trading volume.

When other exchanges were embracing the new concept of IEO, OKEx quickly joined them and launched its own token sale platform called OK Jumpstart. OKEx follows an interesting model called COMPASS to list new projects on its platform. This model is very similar to the one used in the VC (Venture Capital) market and it evaluates seven aspects which are:

1. Creativity
2. Operational Competence
3. Marketing Competence
4. Progress
5. Activeness of Community
6. Sustainability
7. Scalability.

Overall, it considers over a hundred factors before giving approval to the project and listing on its token sale platform.

OKEx follows a process called subscription-allotment which allots tokens for its users. Only holders of the OKB token (OKEx exchange’s token) are eligible to participate in the token sale. Token allotment depends on the user’s average OKB holding amount.

The users’ account will be snapshotted daily at a random time and they must hold at least 500 OKB over a period of 15-days. In other words, the more OKB you hold, the more allotment you will get.

Regarding security, OKEx provides 2FA protection to prevent unauthorized access. Moreover, users can configure the security setting so that withdrawals will be processed only after providing an authentication code. OKEx has launched a Bug Bounty scheme so that users can report any security vulnerability on the platform and get rewarded for the same.

Bittrex

Bittrex is one of the most secure cryptocurrency exchanges with a 24-hour trading volume of approximately $300 million. Launched in 2014, with its headquarters in Seattle, USA it allows users to trade hundreds of altcoins and cryptocurrency trading pairs. Bittrex is well-known for its fast order processing with its custom-built trading engine, which is specifically designed to be scalable using elastic computing.

What’s more, this exchange also offers a wide range of cryptocurrencies on its platform which includes the top cryptos such as Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Ethereum Classic, Tether, Cardano, TRON and NEO. When it comes to fees, it charges a flat rate of 0.25% commission for every trade.

Like its competitors, Bittrex was also quick to introduce IEO on its platform. However, it cancelled its first IEO token sale event of RAID cryptocurrency project just hours before the crowdsale was about to begin.

It is believed that one of the core partners decided to end their partnership with RAID. As a result, Bittrex cancelled its token sale event, since the project no longer seemed promising for its customers. 

Before listing a token on its platform, a committee made up of Bittrex employees will do an in-depth review of the project in question. Once this is sorted, they will determine if the token meets their robust criteria and is eligible to be listed on their platform. The good thing about Bittrex is that it doesn’t charge any fee for listing a token on its platform.

As for security, Bittrex has a good reputation in the crypto world, due to its exceptional security features. It keeps 90% of the customers’ funds on offline storage to provide maximum protection. Moreover, users must provide an authentication code to place withdrawal request or to use APIs.

KuCoin

This HongKong-based cryptocurrency exchange aims to provide a simple and secure method to exchange cryptocurrencies. Even though KuCoin is a relatively new player in the crypto world, it has already gained the attention of crypto investors with its exceptional services. It supports more than a hundred cryptocurrencies including top cryptos like Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.

KuCoin has its own native cryptocurrency called KuCoin Shares (KCS). KCS holders are eligible to get discounts and dividends while trading on the platform. This means KCS holders will receive a 1% discount on trading fees for every 1000 KCS with up to a maximum of 30%.

Moreover, KuCoin pays 50% of the total fee revenue to all KCS holders every day. When compared to other exchanges, KuCoin only charges a nominal fee of 0.1% per trade. The only downside of KuCoin is that it doesn’t support fiat currencies. 

Having launched its own IEO platform called Spotlight at the beginning of 2019, so far, KuCoin has completed 4 IEO token sale events on its platform. Unlike other exchanges which make use of a lottery system for allotting tokens, KuCoin allows users to buy IEO tokens on a first-come, first-served basis.

Usually, token sale will be based on KCS and the actual price will be announced on the day of crowdsale. In order to participate in an IEO token sale, users must complete a KYC verification process and hold the required number of KCS to make a purchase.

Since KuCoin is relatively a new exchange, it is too early to give an exhaustive evaluation on its security features. Nevertheless, the exchange has been taking extensive security measures not only on system-levels but also on the operational levels, to provide maximum protection for its customers’ assets. 

The post Best IEO Exchanges appeared first on Cryptimi.

Wallet security remains one of the most important factors when choosing an exchange. No matter how good your investment decisions are, they won’t matter if you choose an insecure exchange that loses the funds. However, before listing down the best exchange wallets, let us list down the main advantages and disadvantages:

Let us delve into the exchanges that have the most secure wallets so that if you do decide to leave your funds on an exchange, they have the best chance of staying there.

Safest Exchange Wallets For Traders

BitMEX

BitMEX is the most popular by a significant margin when it comes to cryptocurrency derivative exchanges. The exchange is headquartered in Hong Kong and has been operating since 2014. Its flagship product is an instrument that tracks the price of Bitcoin against USD. The product alone accounts for a huge percentage of the Bitcoin trading volume and commonly accounts for over 20 to 30% of the trading volume of Bitcoin against USD.

BitMEX has applied strong security practices from the start of operations. All funds are stored in cold storage and multi-signature is used for all transactions. Multi-signature wallets require signatures from a number of accounts before the transaction can be processed.

At least two of the three founders of BitMEX need to sign off on every transaction. These procedures can be verified by examining the blockchain. Security sometimes comes at the tradeoff of convenience. Withdrawals from BitMEX are only processed once a day which means that those in urgent need of funds will not be able to access them in a short amount of time. Users can also enable two-factor authentication to their accounts to add an extra layer of support.

With BitMEX both being a highly popular derivatives platform and providing high levels of security, it makes it one of the top considerations for exchange wallets with strong security. The key limitation is that funds can only be withdrawn once per day, but many users see this as an advantage as if their account got hacked, they would have time to respond.

Kraken

San Francisco headquartered Kraken is the world’s largest Bitcoin exchange in Euro trading. The exchange was founded in 2011 giving it a long history of operation. Kraken has been backed by a number of significant investors including Money Partners Group, Hummingbird Ventures, Blockchain Capital, and Digital Currency Group. The exchange also deals in altcoins and a number of different fiat currencies.

Kraken takes its security seriously, moreover, it boasts of having a strong, integrated exchange wallet. All user deposits are stored in cold wallets which are offline wallets. The vast majority of the funds of the exchange are stored in cold wallets. Only the amount of funds required to maintain high liquidity and operate effectively are stored in hot wallets. Hot wallets are online wallets that are less secure and more susceptible to hacking.

Kraken is one of the only exchanges which conducts proof of reserve audit. This is an audit conducted by an independent party that supports that Kraken holds fully all of the user’s funds. This process also enables users to independently verify that Kraken holds the funds for their accounts.

While some exchanges focus heavily on security and charge hefty fees for it, Kraken is an exchange accessible to everyday cryptocurrency users that applies strong security. Users can also further the security of their accounts by adding two-factor authentication. Kraken is an exchange that also performs well in other areas. It is highly liquid, provides a suite of professional trading tools, and has low fees.  With all things considered, these factors put Kraken at the top of the list of exchange wallets with the best security.

OKCoin

OKCoin is an exchange that has been operating since 2013 and is headquartered in Hong Kong. OKCoin has been expanding into North and South America and supports a variety of fiat currencies and cryptocurrencies. OKCoin provides products in both the spot and derivative markets.

OKCoin takes the security of their exchange wallet seriously and undergoes an intricate procedure to ensure that users funds are safe. OKCoin generates multiple private keys and the majority of funds are stored across a number of cold wallets. High levels of encryption are applied to the private keys and these are stored in bank vaults.

There is a limit to the amount that can be stored in any one cold wallet and after a transaction is made from the cold wallet, it cannot be used again. Hot wallets are used to operate the exchange and provide sufficient liquidity.

The security process gets even more complicated. To access a private key requires two people, the person to decrypt the encryption applied and also the person who can access the bank vault. Those with access to the bank do not have access to the decryption password. Only two people will be provided with access to the bank and these two people cannot travel together.

OKCoin detail a highly complicated procedure for securing users’ funds. There is no way for a user to verify that this process is actually implemented but it is beneficial and the company can be held accountable if it turns out that these practices are not being implemented. Two-factor authentication can also be enabled by users, for more peace of mind.

bitFlyer

bitFlyer is a Tokyo-based exchange that has been operating since 2014. bitFlyer provides both spot and futures products. They have a host of security practices they have detailed including strong encryption, proper programming and OS considerations, and conducting identity verification.

In terms of their Bitcoin wallet, bitFlyer proposes that users keep at least 80% of their users in cold wallets. The wallets are also multi-signature and require two or more signatures to process transactions. bitFlyer have also developed their own proprietary Bitcoin daemon in an attempt to reduce the vulnerability of users’ funds.

A daemon is a computer process that runs in the background and is not under the control of the user. Two-factor authentication can also be enabled by users to add an added level of security. The exchange wallet details provided are for Bitcoin but there is no mention of wallet practices for altcoins which may not be as secure.

Overall, bitFlyer offers strong wallet and security procedures but similarly to OKCoin, there is no way for the user to independently verify.

Coinbase

Coinbase is the leading cryptocurrency exchange. When assets are purchased through Coinbase, Coinbase acts as the custodian. Coinbase also offers a separate wallet service which puts the user as the custodian. The wallet is available in web-browser, Android, and iOS. It was initially launched under the name Toshi but has recently changed to Coinbase Wallet.

The exchange wallet was developed with a focus on Ethereum. It aimed to enable users to both manage their Ethereum and Ethereum-based tokens while also providing an interface to access decentralized applications (DApps). The wallet so far only supports Ethereum and assets built on top of Ethereum such as 0x Project. But it plans on supporting Bitcoin, Bitcoin Cash, and Litecoin shortly. Yet the fact that it does not yet support these cryptocurrencies is certainly a key limitation.

One of the key features of the exchange wallet is that the private keys are secured through the user’s device. The vast majority of exchange wallets are in control of the private keys themselves and users are essentially transferring the control of the cryptocurrencies to the exchange.

The key benefit to this wallet is the fact that users control their own private key with the ability to interact with DApps. The main drawback is the limited amount of cryptocurrencies supported. Overall, Coinbase Wallet is a good alternative, but could be improved further it supported a wider variety of cryptocurrencies.

Storage For Institutions and High Net Worth Individuals (HNWI)

All of the exchange wallets above are easily accessible to the everyday user. Some exchanges also specialise in providing custody services to institutions and HNWI. Some institutions such as hedge funds are required by law to store their funds with a specialised custodian. Others do it for the extra security. While these are not applicable to the everyday user, it is useful to know the big exchanges catering for the big players.

Coinbase Custody

Coinbase has the previously detailed wallet solution and users can also choose to leave their funds with the Coinbase exchange. Coinbase custody is a separate service aimed at institutions. Coinbase custody secures assets by placing them in segregated cold wallet accounts. As part of the service, fund transfers will be catered for and there is regular audits and customer support available.

The assets supported for this service include Bitcoin, Bitcoin Cash, Ethereum, Litecoin, 0x Project, Ethereum Classic, Ripple, Basic Attention Token, and OmiseGo. This service is not available to non-institutional clients. Clients are mainly cryptocurrency hedge funds such as Polychain Capital and Multicoin Capital.

Gemini

Gemini was founded by the Winklevoss twins and has been operating since 2015. Gemini is regulated by the New York State Department of Financial Services (NYSDFS) and is a New York State Trust Company. All USD deposits with the exchange are stored in FDIC insured bank accounts. The exchange offers two types of custody for digital assets. Depository custody which is the default for clients of Gemini mixes the funds together and secures them in a cold storage system.

The other type is a segregated custody account and is aimed at institutions such as hedge funds. Clients assets are separated into their own accounts in this service and are secured offline in Gemini’s own proprietary cold storage system. The fees for the service are 0.964% annually with a minimum of $100,000 having to be paid in fees.

itBit

itBit is another New York State Trust Company that is regulated by the NYSDFS. The company has been operating since 2012 and has both a regular exchange and an over-the-counter (OTC) trading desk. Both cryptocurrency and fiat currency deposits are fully backed as required by regulation. itBit also offers institutional custody services. Assets are segregated by client account and are stored completely in cold storage. Clients of the custody service get 24/7 support and can also verify and obtain reports on their funds at any time.

In conclusion

Compared to crypto wallets, exchange wallets are more convenient for active day-to-day trading. It puts the investor in a read-to-go position where he can pull the trigger every time the market conditions are met. However, we still recommend storing a large amount of cryptos in a hardware wallet for maximum security.

The post Exchange Wallets: The Safest Built-in Wallets in 2022 appeared first on Cryptimi.

Buying Ethereum (ETH) will start by choosing the best Etherium exchange. Etherium exchanges are divided into 3 types:

• Trading platforms – financial intermediaries where traders can trade digital assets, including altcoins like Ethereum. Although there are different kinds of trading platforms, the most known is the commercial platform which is used by day traders. Buying Ethereum using a trading platform is one of the most common ways, however, market knowledge is required. For that reason, trading platforms are more suited for professional investors;
• Brokers are the middleman between trading platform and investor. This type of trading is more beginner-friendly as brokers provide additional support and guidance;
• P2P marketplaces – is a decentralized marketplace where peers are changing their digital assets amongst themselves. In P2P there is much more negotiability involved before the deal is set allowing to bargain on the price.

If you have trading experience, scroll down to the ‘Best Ethereum Exchanges For Traders’ section to benefit from low trading fees and high exchange liquidity.

Why buy Ethereum (ETH)?

Currently, the exchanges which have the largest Ethereum exchange markets are:

1. Coinreal (ETH/USDT)
2. CoinEgg (LTC/ETH)
3. Biki (ETH/USDT)
4. Dcoin (ETH/USDT)
5. Fatbtc (ETH/BTC)

Ethereum has also reached a position where it is an important pairing cryptocurrency. For a long time, fiat currencies and Bitcoin were the only base currencies altcoins were priced against. The rise to prominence of Ethereum has made it an important base currency as well. With this unique position of Ethereum, we delve into what are the best exchanges for trading Ethereum and Ethereum-based tokens.

Best Ethereum Exchanges For Beginners

If you’re thinking of buying your first cryptocurrency, whether it’s Ethereum or any other, we recommend you to check out our ‘Making Your First Step‘ guide to help you get started. For those who intend to buy Ethereum (ETH) at a low price and sell it at a higher price to make a profit, we highly recommend trying out the following exchange platforms:

Coinbase

Coinbase’s traditional Coinbase Consumer service enables traders to easily purchase popular cryptocurrencies such as Ethereum. Users can purchase Ethereum online on the Coinbase exchange platform through a variety of payments methods. Coinbase simplifies complicated cryptocurrency concepts such as wallets and transactions to make it easy for the first-time user to understand.

Coinbase is a good service for beginners because it simplifies the process, but it’s also widely available. There are not many restricted areas where Coinbase does not operate. There are a number of payment methods users can opt to purchase Ethereum on Coinbase. They can fund their account via bank or wire transfer. Major fiat currencies such as EUR, GBP, and USD are supported for this method. Another option is using a credit or debit card.

This enables users to purchase cryptocurrencies in a wide variety of local currencies. The fee for purchasing via credit or debit card is 3.99% and there is a 1.49% fee for buying and selling between fiat and Ethereum.

Click here to earn an extra $10 upon your first deposit with Coinbase!

Coinbase is very heavily focused on compliance, ensuring it adheres to all regulations. This means the sign-up process involves users submitting numerous pieces of personal information along with verifying their identity through documentation. Some users find this overly invasive, but it is a trade-off that is made to use an institution that is backed by large investors which is compliant with regulations.

ChangeNOW

Users who are interested in swapping their cryptocurrency into Ethereum, rather than buying it, should check out ChangeNOW. They offer over 170 coin swaps of various Ethereum (ETH) based ERC-20 tokens such as the Binance Coin (BNB), 0X (ZRX) or Augur (REP), their interface is extremely easy to use, and there is no limit to how much Ethereum can be swapped.

Some of their popular coins are:

• Ethereum (ETH)
• Ripple (XRP)
• Litecoin (LTC)
• BitcoinCash (BCH)
• Bitcoin SV (BSV)
• Tether (USDT)
• EOS (EOS)
• Ethereum Classic (ETC)

Currently, ChangeNOW does not support purchasing ETH with Visa or credit card. Additionally, users need to own their personal Ethereum wallet to make use of the exchange, because ChangeNOW does not store users’ funds.

This ChangeNOW’s detailed overview offers a step by step guide on how to swap ETH on this trading platform exchange. It is worth mentioning that KYC is not compulsory, however this exchange reserves the right to ask its users for identification documents at their own discretion.

CEX

CEX is an exchange that makes purchasing Ethereum easy for beginners and also offers more advanced trading features. Once users set up their account through a very straightforward sign-up process, they will be able to purchase cryptocurrencies with their credit or debit cards. There will be strict limits applied to how much they can buy but if they wish to extend their limits, they can choose to verify their account further.

Users are quoted specified amounts of cryptocurrency that they can purchase, and are able to choose between amounts of $200, $500, and $1000. They also have the option to choose custom amounts to purchase. Although the default option is Bitcoin, this can be easily changed to Ethereum.

The quoted amounts are recalculated every two minutes. Although this is the easiest option for the beginner, CEX does charge a 7% fee for this service which is included in the quote. If this purchase is completed through a credit or debit card, there will be a further payment processing fee. Despite the fees being higher to use credit and debit cards, the ability to pay through this method is an attractive feature for a lot of users as it enables them to purchase in a wide variety of local fiat currencies.

CEX also have a more advanced exchange where users can avail of lower trading fees along with margin trading. Margin trading enables users to go both short and long and also to apply leverage to their position. Although this is perfectly suitable for the beginner, it provides valuable features to the exchange. The fee schedule for trading on the more advanced exchange is much lower than the quick-purchase option and also highly competitive.

Overall, CEX is a great online exchange for beginners because of its options which enable users to buy Ethereum quickly and easily. When getting started, it can be difficult for users to navigate exchanges but CEX makes this as straightforward as possible. It is also important to be aware of the fees that will be paid for this quick option. Another aspect that makes CEX suitable for beginners is when they are ready to get more advanced, they can delve into the more advanced exchange options.

Best Ethereum Exchanges For Traders

Exchange Ethereum On Binance

Binance is the exchange with the largest amount of trading volume. It completed its ICO in 2017 and quickly grew to be the market leader. Binance has Ethereum as one of its main pairing currencies. There are over 150 products offered on Binance which can be traded against Ethereum. This allows users to speculate on the movements of altcoins against Ethereum and grow their Ethereum holdings if they speculate correctly.

Binance provides a suite of tools essential for professional traders. The tools include an order book, a price chart, and a depth chart.

Binance is also highly competitive with its fee schedule. The fees start at 0.1% and get progressively lower based on trading volume and BNB holdings. BNB is Binance’s own cryptocurrency which was distributed during the ICO in 2017 when Binance was raising funds to develop the exchange. Holders of BNB avail of lower fees.

With Binance not operating with fiat currencies, they remain largely unregulated. Binance has recently moved its headquarters to Malta to take action towards being more regulated. Malta is developing a regulatory framework for businesses operating in cryptocurrencies and it is likely that Binance will be compliant with these regulations.

Exchange Ethereum On Coinbase Pro

If the goal is to simply speculate on the price of Ethereum in relation to major fiat currencies at attractive costs, Coinbase Pro is a great option to consider. Coinbase’s traditional service is hugely popular with first-time cryptocurrency buyers but the fees are huge.

Coinbase Pro is another service offered by Coinbase which is tailored towards professional traders. The service offers a suite of tools including an order book, depth chart, price chart, and recent trades printing. It is also one of the most liquid exchanges. Users can speculate on the price of Ethereum against USD, EUR, and GBP.

Customers can place a number of different order types including limit, market, and stop. A limit order communicates to the exchange to execute the trade if the price reaches a certain price or is more attractive. For example, a limit order could be to buy 2 Ethereum at $200. This order will only execute if the price drops to or below $200. Traders who make these kinds of orders are called market makers as they provide liquidity to the exchange.

A market order takes the best possible price at the time. Users who make this type of order are known as market takers. This is because they take liquidity from the exchange. One of the most attractive features of Coinbase Pro is the fee schedule. Market makers can actually trade for free as they provide much-needed liquidity. Market takers have a progressive fee structure based on the volume traded.

Coinbase also places a key emphasis on compliance. It complies with all the relevant regulations in the United States and the other jurisdictions in which it operates. The exchange has significant backing from investors and has recently completed its Series E round of funding which puts the company at a valuation of $8 Billion. Signing up for Coinbase Pro will require further identification than what is required when signing up for Coinbase’s mainstream consumer service. For a deeper analysis of the two platforms, please visit our guide on the differences between Coinbase vs Coinbase Pro.

Exchange Ethereum On Kraken

Kraken is another highly liquid exchange where you can trade Ethereum for fiat currencies. The exchange is headquartered in San Francisco and was founded in 2011 giving it a long history of operation. Kraken has been backed by a number of significant investors including Money Partners Group, Hummingbird Ventures, Blockchain Capital, and Digital Currency Group.

It is a good exchange to consider due to its high amount of liquidity along with its competitive fee schedule. Kraken also applies strong security procedures. When you deposit Ethereum or fiat currency with an exchange, it can be difficult to know what the exchange is doing with that money.

They could essentially be doing their own form of fractional reserve banking where only a fraction of the money is kept and the rest is put to more risky use that may provide a return. Kraken conducts proof of reserves audits to communicate to clients that they have the reserves to cover all of the necessary balances. The vast majority of coins are also stored in cold storage offline.

The fiat currencies it supports include the USD, EUR, CAD, GBP, and JPY. The fees for Ethereum follow the below schedule.

One of the key features which Kraken provides that other exchanges don’t is the option to go short. Traders on Kraken can utilize margin trading to both increases their exposure to long positions or take short positions. The fees for margin trading range from 0.01% to 0.02% to open the position and 0.01% to 0.02% every four hours to maintain the position.

Kraken is not regulated by the government. It participates in self-regulating organizations such as DATA and JADA. Kraken received some attention this year when it failed to comply with demands made by the New York Attorney General into its business operations.

The key strengths of Kraken include its level of liquidity, the ability for traders to make margin trades and take short positions, and its security measures and auditing practices. The regulation situation may concern some, but Kraken has always been clear and communicative with its clients regarding any concerns.

Exchange Ethereum On DiversFi

DeversiFi (formerly known as Ethfinex), is a decentralized exchange, unlike the ones mentioned above which are all centralized. One of the key issues with centralized exchanges is users lose control of their funds. Once users deposit their funds with an external entity, this entity now has the ultimate control of funds. If the exchange gets hacked or goes bankrupt, the users will lose their funds. This has been demonstrated numerous times in cryptocurrencies history. The Mt.Gox hack of 2014 resulted in users of the exchange losing 850,000 Bitcoin.

Many businesses have been now venturing into decentralized exchanges to tackle this. Decentralized exchanges put users in control of their own funds as it provides users with their own private keys. For users who wish to remain anonymous, there will also be no sign-ups or KYC processes.

The exchange includes tools for traders such as a price chart, depth chart, order book, and recent trades printing. There is also a wide variety of technical analysis tools available for the price chart. Users will have an account for exchange trading, margin trading, and funding other traders margins. The margin account allows users to go both short and long. Funding other traders margin provides an interest rate return.

The exchange also has a native token, Nectar. Users of the exchange are required to store some Nectar in their accounts. The exchange mainly facilitates for trading in Ethereum and Ethereum based tokens. The fees for trades are competitive but fees are also applied for depositing and withdrawing cryptocurrencies which is a drawback. Some of the fees go to holders of the Nectar tokens.

Overall, decentralized exchanges still need to develop to provide a better service. But for those who wish to control their own private keys, DeversiFi will facilitate this.

Exchange Ethereum On LocalEthereum

LocalEthereum is another service that tackles some of the problems with traditional exchanges. Essentially, centralized exchanges expose investors to the risks of the exchange itself, but they also often require detailed information on users. Some operators in the cryptocurrency markets wish to remain anonymous and traditional exchanges can often make this impossible.

LocalEthereum is a peer-to-peer exchange powered by smart contracts. It is a marketplace made of bids and offers by different entities. Setting up an account is straightforward and simple and doesn’t require divulging any sensitive information. The trade is conducted via a smart contract that acts as an escrow.

A dispute can also be opened if there are issues with the trade. LocalEthereum charges 0.25% to the person who posts the offer to the exchange and 0.75% to those who take an offer.

How to keep your Ethereum safe after buying?

After choosing the best Ethereum exchange for trading, it is important to store your digital assets properly. By selecting a safe Ethereum wallet you will keep your coins safe. Digital wallets help to manage our private keys and allow us to move them around when needed. The most common types of wallets are software wallets that traders download on their phones, but there are also wallet variations like web-based and hardware.

For keeping a large amount of Ethereum, it is recommended to get the hardware wallet as it is the most secure one. Move on to our best Ethereum wallets guide and learn how to keep your tokens safe.

The post Best Ethereum Exchanges appeared first on Cryptimi.

There are numerous factors to take into consideration when choosing the best Crypto to Fiat exchange. It is important to note down the following factors:

• Fee structure – Exchanges get their commission using various fee types like trading and liquidation fees. For a more comprehensive fee structure, check out our cheapest cryptocurrency exchanges list. The one traders must look out for when converting crypto back to fiat is withdrawal fees. Withdrawal fees are more common than deposit fees as exchanges are interested in incentivizing trades. In practice, the lower the withdrawal fee, the cheaper it will be to cash out the assets. The most common type of withdrawal fee is a flat rate regardless of the amount taken out;
• Withdrawal limits – exchanges can apply daily cash-out limits to insure against fraudulent actions and keep the security standards high. Depending on the cashout size, smaller withdrawals might go under the radar, however, all cashouts are subject to local tax (other regulations may apply);
• Support and ease-of-use – the importance of good customer care have never been more relevant than today. Slow customer care, complicated user interface and terrible transaction speed discourage traders from using that exchange.

It’s important to note that these are only a few things to look for in an exchange. There are other factors to take into consideration, like volume, liquidity, geographical restrictions and so on. Here is our list of best crypto to fiat exchanges that have a good reputation in cashing-out funds.  

1. Bitstamp

Bitstamp is the leader in this area due to the fact that it has no limit on withdrawal amounts. The exchange has been operating since 2011 and has a stellar reputation. This exchange is ideal for those who wish to withdraw large amounts. For example, it is possible to facilitate withdrawals in the multi-million dollar amounts on this exchange. Theoretically, the exchange has no limit.

It is not as suitable for those who are withdrawing small amounts due to a minimum fee being applied. For example, if a user were to withdraw €100 via SEPA transfer, they would have to pay a minimum of €10 in withdrawal fees which would make such a withdrawal not worthwhile.

International withdrawals incur a 0.09% fee but need to be a minimum fee of $15. This is a tiny fee if large amounts being withdrawn. A user withdrawing $1,000,000 would only pay $900 in fees which is a minuscule amount to facilitate such a large transfer. Users could go looking for exchanges with lower fees but this would involve trading off the trustworthiness and reputation of Bitstamp. A search for lower fees may result in the user losing all of the capital.

Fiat currencies which can be withdrawn include EUR, USD, GBP, CHF, AUD, YEN, and CAD. Bitstamp also supports the majority of major cryptocurrencies. Users can trade with Bitcoin, Ethereum, Ripple’s XRP, Litecoin, and Bitcoin Cash.

Users need to undergo verification in order to withdraw from Bitstamp. For a personal account, users will need to fill in a form and submit personal identification documents. Users can also apply for corporate accounts which undergoes the same process.

Bitstamp consulted with the UK Financial Conduct Authority regarding regulation and was informed that cryptocurrencies were not subject to regulation under its jurisdiction. Bitstamp now self-regulates and participates in practices to prevent money laundering.

2. Kraken

Kraken is also one of the best exchanges for converting cryptocurrency into fiat currency and withdrawing due to its high withdrawal limits. There are four different tiers applied to customers which determines how much they can withdraw. Users that submit verification documents unlock the higher tiers and can avail of higher deposit and withdrawal amounts.

The tiers range from zero to four. Zero is when you have created an account and has no capabilities. Tier 1 and 2 can be unlocked by inputting a few basic details. Tier 3 is the first step which requires actually submitting documents.

Tier 4 is focused on high net worth clients or corporate clients. It can be unlocked by submitting further documentation. By just submitting details such as date of birth, name, and address, users can unlock tier 2 and avail of a daily withdrawal limit of $2,500 and a monthly withdrawal limit of $10,000.

By submitting documents that verify your identity and unlocking tier 3, clients can avail of $25,000 daily withdrawal limits and $100,000 monthly limits. The most advanced tiers enable users to avail of $100,000 daily withdrawal limits and $500,000 monthly withdrawal limits.

Comparing Kraken to other major fiats to cryptocurrency exchanges, Kraken supports a wide number of altcoins. Kraken also has support for most major fiat currencies including USD, EUR, GBP, JPY, and CAD. The fees for SEPA withdrawal are low at €0.09. The fee is $5 for withdrawing USD and C$10 for withdrawing CAD.

Similar to Bitstamp, Kraken has also been operating since 2011 giving it a reputation of trustworthiness. They also conduct proof-of-reserve audits to communicate to users that they hold all of their funds. Kraken is not regulated by the government but it participates in self-regulating organizations such as DATA and JADA.

3. CEX

Similar to Bitstamp, CEX has no withdrawal limits. The basic account which does not verify the user’s identity applies a daily limit of $1000 and a monthly limit of $3000. Once verified, users can avail of unlimited withdrawal amounts.

Users can withdraw straight to a debit or credit card with CEX. The other methods of withdrawal go through the company Crypto Capital which ensures compliance. The withdrawal amounts through Crypto Capital are not subject to limits but the credit and debit card withdrawals are subject to some limitations.

Credit and debit cards have a daily limit of $5,000 and a monthly limit of $30,000. They also incur a fee of $3.80 for Visa and $3.80 and 1.2% of the amount for Mastercard. 1.2% of a large amount would result in a significant fee for withdrawing to Mastercard. The Crypto Capital has unlimited withdrawal amounts and applies no commission to CEX.

CEX has support for EUR, USD, GBP, and RUB. Not many exchanges support RUB which puts CEX in a strong position for crypto to fiat exchanges.

4. OKCoin

OKCoin is an exchange that has been operating since 2013. OKCoin initially launched in China but due to China’s ban on cryptocurrencies, the business has been undergoing an expansion that has involved expanding operations to both North and South America.

The company is still based in China but it is opening offices and developing a team all around the world. One of the main reasons OKCoin has made this list is due to this expansion. Not many exchanges facilitate for fiat currencies in South America but with this expansion, OKCoin will cater for fiat currencies such as the Argentine Pesos.

This enables users to deposit, trade, and cashout in local currencies which are not facilitated by a wide number of other exchanges. One of the key limitations of the exchange is it has not yet branched out into supporting Euro fiat currency.

There are both personal accounts and corporate accounts on OKCoin. Both accounts have a number of different levels within which the withdrawals limits vary. Level 1 involves only submitting information but level 2 involves submitting documentation to prove your identity. Proof of address is also required.

Users at level two verification can withdraw $50,000 over the space of 24 hours. Level 3 requires contacting OKCoin and users at level 3 will be able to withdraw up to $500,000 over 24 hours. Corporate accounts avail of even higher limits. The fee for withdrawing is 0.1% or a minimum of $15. This makes OKCoin unsuitable for small withdrawals but very attractive when withdrawing large amounts.

OKCoin has a strong focus on compliance with regulation which adds to its credibility and level of consumer protection. The key benefits of the exchange are the large withdrawal limits and the support for fiat currencies in South America. The key limitation is that there is no support for Euro.

5. Coinbase

Coinbase is the leading cryptocurrency exchange and is typically the first stop for beginners who are looking to exchange their fiat currency into cryptocurrency. The exchange is ideal for beginners because of its easy-to-understand interface and a stellar reputation.

It is not always considered the best exchange for cashing out from cryptocurrency to fiat currency due to its high fees and the amount of verification required. There are also reports online of users having their withdrawal limits drastically cut for no apparent reason.

Nonetheless, Coinbase is a viable option for cashing out and deserves to make this list given the huge amount of trust and partnerships behind Coinbase. The company is backed by prestigious investors such as Andreessen Horowitz, Union Square Ventures, and Y Combinator.

Coinbase supports the major large-cap cryptocurrencies and the major fiat currencies. There is support for USD, EUR, and GBP. In terms of cryptocurrencies, there is support for Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, 0x Project and more coming soon.

Users of Coinbase’s service for advanced trading, Coinbase Pro, will have a withdrawal limit of $10,000 per day. Although this may seem a lot, it is low when compared against the leading competitors in the industry. Users of the exchange can contact Coinbase for higher withdrawal limits. The withdrawal fees Coinbase are €0.15 for SEPA transfer and $25 for wire transfer.

As part of Coinbase’s compliance with US regulations, users have to undergo a stringent verification process. For Coinbase Pro, they will need to submit at least two government-issued documents confirming their identity which is not always feasible for everyone.

Users will also have to verify their address, phone number, among other personal details. This is too invasive for some users and also leads to increased complications to get to the point of withdrawing. Although Coinbase is one of the best exchanges in terms of liquidity and trading features, when it comes to cryptocurrency to fiat exchanges, the exchanges listed above are outperforming.

Best Peer-to-Peer Cashout Exchanges

An alternative to cashing out via traditional, centralized exchanges is using peer-to-peer exchanges to exchange your cryptocurrency into fiat currency. These peer-to-peer platforms can be attractive because they offer a number of options for cashing out and also make it possible for users to maintain anonymity if they wish to do so. Peer-to-peer platforms are not as convenient as online exchanges but are preferable to some users. The two largest peer-to-peer exchanges cater to Bitcoin and Ethereum.

LocalBitcoins

LocalBitcoins facilitates peer-to-peer buying and selling of Bitcoin. The exchange has been operating since 2012 and facilitates exchanging of Bitcoin in most places globally. LocalBitcoins does not charge any fee for buying or selling Bitcoin. The company generates revenue from other sources such as advertisements.

When selling Bitcoin, there are a number of ways that the trade can be conducted. Sellers can receive bank transfer or another method of electronic payment. All online payments are facilitated via an escrow account. Sellers should never release the funds from escrow until they are absolutely sure that the payment is being processed. Sellers can also organise to meet the buyer in person to receive cash. Meeting in person to conduct the trade is most suitable for those who are wishing to remain anonymous.

LocalEthereum

LocalEthereum operates in a similar manner to LocalBitcoins. It provides users with a number of options to cash out and also a way to maintain anonymity. The main difference between LocalEthereum (Now renamed to LocalCryptos) and LocalBitcoins is that the exchange is facilitated via smart contracts that act as escrow account. A dispute can also be opened if there are issues with the trade. LocalEthereum charges 0.25% to the person who posts the offer to the exchange and 0.75% to those who take an offer.

Why convert cryptocurrency into fiat?

There are a lot of reasons why one might want to convert cryptocurrencies into fiat. The most common reason is cashing-out profits from a favourable trade. Even though today a lot of companies accepts Bitcoin as a payment method, fiat might be more flexible at moments. By choosing the best Crypto to Fiat exchange that is not only fast but also cost-efficient, traders can securely cash-out cryptos in the most beneficial way. We recommend going with a reputable exchange that has been around for a long time.

The post Best Crypto to Fiat (Cashout) Exchanges appeared first on Cryptimi.

Although 2017 was a year where altcoins became popular among cryptocurrency investors, Bitcoin remains the market leader and owns the largest share of the trading volume. Bitcoin typically represents over one-third of cryptocurrency trading volume and with it being used as a pairing instrument, traders commonly switch to Bitcoin when exchanging between altcoins serving to drive the trading volume up even further.

When choosing a Bitcoin exchange, it’s important to note what is your level of trading. Beginners might want an easier way to buy cryptocurrencies while professional traders will be looking for more advanced features. Also, beginners might need to familiarize themselves with common terms and compliance. In this article, we will look at some of the best Bitcoin exchanges that will be more suitable for beginners and list down those exchanges which will be best for professional traders.

If you are an experienced trader, scroll down to the ‘Best Bitcoin Exchanges For Traders‘ section to benefit from low trading fees and high exchange liquidity.

Best Bitcoin Exchanges For Beginners

For beginners who want the process to be as straightforward and simple as possible, there are other exchanges that are suitable for starting out. If you’re thinking of buying your first cryptocurrency, whether it’s Bitcoin or any other, we recommend you to check out our ‘Making Your First Step‘ chapter guide to help you get started. The platforms mentioned in our ‘Best Bitcoin Exchanges For Traders’ section are more tailored for the professional trader who wants to avail of low fees.

Coinbase

Later on, we’ll have talked about Coinbase Pro, however, Coinbase also offers an online exchange platform where beginners can buy and sell cryptocurrency with ease. Coinbase’s traditional service is the most popular among beginners. The website is designed for those with no experience. Once an account is set up, which will require some personal details such as a photo of your ID card (standard procedure on every exchange platform), users can simply choose the amount of Bitcoin they wish to buy and have a number of payment methods.

Users can choose to purchase cryptocurrency through a number of payment methods. Users can deposit to their Coinbase account via banks transfers or wire transfers. There is also the option to purchase with a debit or credit card. The option to purchase with a debit or credit card is an attractive feature that is not offered by many Bitcoin exchanges. It makes cryptocurrency accessible to people dealing in a variety of different local currencies, including the Euro(€), Dollar($) and GBP(£).

If you click here you will earn an extra $10, and so do we, upon your first deposit with Coinbase.

There is a 1.49% fee on buying or selling in Coinbase. There will also be a 3.99% fee applied if a purchase is made with a debit or credit card. Although this is the most convenient option, it is also the most expensive.

Despite the higher fees, Coinbase is the most popular exchange for a reason. It has a very secure wallet, insured up to $250,000, the user interface is sublime, and everything is easy to understand.

Coinmama

Coinmama is another exchange where users can use their debit or credit card to purchase cryptocurrency in a straightforward and simple way. When compared to Coinbase, it is slightly more expensive. Once an account is created, users can buy Bitcoin straight from the home page. Users are quoted amounts of Bitcoin for $100, $250, $1000, and $3000. It is also possible to customise the amount of Bitcoin to be purchased.

The quoted rate will adjust based on market movements. The quoted rate also includes Coinmama’s fee which equates to 5.9%. If users make the purchase with a debit or credit card, a 5% payment processing fee will be additionally charged.

This is not the best option if you are looking to save on fees but if you are looking to quickly and simply purchase Bitcoin, Coinmama is a good choice!

Best Bitcoin Exchanges For Traders

For traders who are well experienced in trading Bitcoin, there are exchanges that offer advanced charting, more trading options, and an advanced level of security. Whether it’s exchanging Bitcoin for stocks, indices, commodities, other instruments or altcoins, we recommend the following exchange platforms.

Exchange Bitcoins On Coinbase Pro

Coinbase Pro has become almost synonymous with cryptocurrency. The Bitcoin exchange has been operating since 2012 and has pioneered numerous cryptocurrency products. The exchange displays a professional and intuitive user interface which makes the process for purchasing cryptocurrencies as straightforward and easy as possible. However, users have started paying a high premium in fees for this service with Coinbase being the initial exchange used by many first-time buyers.

Not everyone is aware of Coinbase’s Pro service. Coinbase Pro provides a suite of tools targeted at professional traders and this is accompanied by a drastic reduction in fees. The fees are actually zero for market makers, which are traders that place limit orders that provide much-needed liquidity. There is a progressive fee structure for market takers, traders that place market orders, based on the amount of volume traded.

It is also one of the most liquid Bitcoin exchanges for fiat trading. Data from Bitcoinity.org shows that the spread is almost always zero for Bitcoin traded against the USD and removal of vast sums from the order book will only result in slight increases in the spread. The removal of ten bitcoins from both the bid and the order, the equivalent of around $130,000 in October 2018 prices, would result in the spread increasing to 0.04 in the BTC/USD order book.

The suite of tools offered includes an order book, trade history, price chart, and depth chart. The products supported include Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ethereum Classic, and 0x Project. These can be traded against the Euro (EUR), United States Dollar (USD), or Great British Pound (GBP). Crypto to crypto trading is also facilitated and the exchange has announced upcoming support for Basic Attention Token. Within the crypto to crypto trading, users of the exchange can also trade between cryptocurrencies and USD pegged stablecoin USDC.

Among the key strengths of Coinbase Pro are its suite of tools, its high amount of liquidity, and the trustworthiness it has built within the industry. One of the only drawbacks is there is still a limited amount of support for cryptocurrencies. As of recent, Coinbase Pro have been listing more with the recent announcements of 0x Project and Basic Attention Token.

Coinbase also places a key emphasis on compliance. It complies with all the relevant regulations in the United States and the other jurisdictions in which it operates. The exchange has significant backing from investors and has recently completed its Series E round of funding which puts the company at a valuation of $8 Billion. Signing up for Coinbase Pro will require further identification than what is required when signing up for Coinbase’s mainstream service. To learn more, please visit our detailed guide on Coinbase vs Coinbase Pro here.

Exchange Bitcoins On Kraken

Another United States-based exchange, San Francisco headquartered Kraken is the world’s largest Bitcoin exchange in Euro trading. The exchange was founded in 2011 giving it a long history of operation. Kraken has been backed by a number of significant investors including Money Partners Group, Hummingbird Ventures, Blockchain Capital, and Digital Currency Group.

It might be one of the best Bitcoin exchanges to consider for a number of reasons. When you deposit Bitcoin or fiat currency with an exchange, it can be difficult to know what the exchange is doing with that money. They could essentially be doing their own form of fractional reserve banking where only a fraction of the money is kept and the rest is put to more risky use that may provide a return. Kraken conducts proof of reserves audits to communicate to clients that they have the reserves to cover all of the necessary balances. The vast majority of coins are also stored in cold storage offline which is a high level of security.

For USD trading, the spread is 0.01 and if 10 Bitcoin were taken from the bid and offer, the spread would be estimated to be 0.11. The tools provided include an order book, price chart, volume bar chart, and depth chart.

Kraken also has wide support for other cryptocurrencies beyond Bitcoin. The fiat currencies it supports include the USD, EUR, CAD, GBP, and JPY. The fees can vary based on the liquidity of the product pair being traded but the vast majority of Kraken’s products have the following fee schedule. Although the maker fee is not as attractive as Coinbase Pro, this is overall an attractive fee schedule.

One of the key features which Kraken provides that other Bitcoin exchanges don’t is the ability to go short for certain cryptocurrencies. Traders on Kraken can utilize margin trading to both increases their exposure to long positions or take short positions. The fees for margin trading range from 0.01% to 0.02% to open the position and 0.01% to 0.02% every four hours to maintain the position.

Kraken is not regulated by the government. It participates in self-regulating organizations such as DATA and JADA. Kraken received some attention this year when it failed to comply with demands made by the New York Attorney General into its business operations.

The key strengths of Kraken include its level of liquidity, being the largest exchange facilitating Euro trading, and its security measures and auditing practices. The regulation situation may concern some but Kraken has always been clear and communicative with its clients regarding any concerns.

Exchange Bitcoins On Bitstamp

Bitstamp is a London based exchange that was founded in 2011. Bitstamp is one of the largest crypto exchanges by trading volume and facilitates trading in both USD and EUR. Data from Bitconity shows the Bitcoin against USD order book at a spread of 0.03. The removal of 10 Bitcoins from both the bids and the orders estimates the spread would increase to 0.17.

Bitstamp provides the same suite of tools as the other major exchanges. There is an order book, depth chart, price chart, and recent trades printing.

Bitstamp has higher fees than its major competitors such as Coinbase Pro and Kraken. The below fee schedule shows the main fees for trading. There are also fees applied to deposit and withdrawal.

Bitstamp consulted with the UK Financial Conduct Authority regarding regulation and was informed that cryptocurrencies were not subject to regulation under its jurisdiction. Bitstamp now self-regulates and participates in practices to prevent money laundering.

The key benefits of Bitstamp are its professional suite of tools and the high liquidity of the order book. The key drawback is the high fees compared to competitors.

Exchange Bitcoins On Binance

If your key concern is the ability to speculate with your Bitcoin, Binance is the place to do this. One of the key use cases of Bitcoin has been as a pairing instrument with altcoins. Binance is the largest exchange by trading volume and lists a wide number of altcoins paired against Bitcoin which enable traders to speculate with their Bitcoin. One of the key downsides is there is no support for fiat currency so Bitcoin will need to be purchased elsewhere and transferred to the exchange. Users can speculate on the price of Bitcoin in relation to USD by trading the BTC/USDT instrument which pairs Bitcoin against the USD Tether stablecoin.

Binance provides a suite of tools similar to the exchanges listed above but the liquidity would be far less in some products. If traders are using Bitcoin on Binance to speculate on lower-cap altcoins, they will find a far different experience than trading on the above-listed fiat exchanges. Nonetheless, Binance provides the tools a professional trader requires such as order book, price chart, and depth chart.

The fee schedule for Binance is highly competitive. The fees start at 0.1% and get progressively lower based on trading volume and BNB holdings. BNB is Binance’s own cryptocurrency which was distributed during the ICO in 2017 when Binance was raising funds to develop the exchange. Holders of BNB avail of lower fees.

With Binance not operating with fiat currencies, they remain largely unregulated. Binance has recently moved its headquarters to Malta to take action towards being more regulated. Malta is developing a regulatory framework for businesses operating in cryptocurrencies and it is likely that Binance will be compliant with this set of regulations.

The key benefits of Binance are the ability to use Bitcoin as a base currency between different cryptocurrencies. The fees are also competitive with other exchanges and the exchange is the largest by trading volume. The main drawback would be the inability to trade with fiat currencies but Binance has announced that they will be adding this. Binance has also launched a partnership exchange in Singapore which facilitates Bitcoin trading with fiat currency. The regulatory position of Binance may also be a concern as there would be no protection in the event of a hack.

Exchange Bitcoins On Gemini

Gemini was founded by the Winklevoss twins who are well known for their controversy regarding the starting of Facebook. Gemini is an exchange that is more tailored towards institutional clients, therefore, making it one of the best Bitcoin exchanges to choose from. The fee schedule of the exchange is high unless clients are trading in multi-million USD amounts.

The exchange has a strong emphasis on compliance and is regulated by the New York State Department of Financial Services (NYSDFS). In terms of liquidity, the exchange would be in the top ten. The spread for Bitcoin traded against USD is approximately 0.03. Taking 10 Bitcoin from both the bids and the orders would result in the spread increasing to 0.23.

Gemini also offers other services such as custody solutions. Their exchange facilitates unique orders such as the purchasing of digital assets through auctions. The strong emphasis on compliance and security make it a tailored solution for large clients. It is definitely not the optimal place for the everyday use due to the large fees.

To learn about investment techniques be sure to check out our ‘Investing Like An Expert In Cryptocurrencies‘ guide to learn about leverage trading, shorting, ICO investing and more.

The post Best Bitcoin Exchanges appeared first on Cryptimi.

Even if the underlying instrument remains stable, a lack of liquidity could lead to a quick crash or spike in the price of the derivative instrument. We delved into different cryptocurrency derivative exchanges to present the ones which are the most liquid and that have the most attractive features.

The following derivative platforms are the top performer in their own respective field. These platforms not only allow for cryptocurrency derivative and margin trading, but also offer other instruments like stocks, indices, forex, commodities and ETFs.

BitMEX

BitMEX is the most popular by a significant margin when it comes to cryptocurrency derivative exchanges. The exchange is headquartered in Hong Kong and its flagship product is an instrument which tracks the price of Bitcoin against USD. The product alone accounts for a huge percentage of the Bitcoin trading volume and commonly accounts for over 20% to 30% of the trading volume of Bitcoin against USD.

If you sign up with Bitmex through our link, you will earn 10% off your trading fees for 6 months!

One key point to note with BitMEX is it only deals in Bitcoin. When you make a trade on BitMEX, you are risking your Bitcoin funds. When your trades perform well, the balance of your Bitcoin will increase. The following derivative products which track the price of the standard spot pair can be traded on BitMEX:

• Bitcoin/USD
• Ethereum/USD
• Ethereum/Bitcoin
• Cardano/Bitcoin
• Bitcoin Cash/Bitcoin
• EOS/Bitcoin
• Litecoin/Bitcoin
• Tron/Bitcoin
• Ripple/Bitcoin

The majority of the products will expire on a quarterly basis which means that you can hold most of the contracts for a maximum of about three months. The most popular product is the perpetual Bitcoin priced against USD derivative which does not expire and can be held for any length of time.

BitMEX has a suite of professional trading tools and has some capabilities which a lot of other exchanges cannot provide. In terms of tools, BitMEX has an order book, depth chart, trades printing, price chart, and a host of technical analysis tools which can be used on the price chart.

BitMEX has enormous leverage capabilities and users can leverage up to 100x on some products. The perpetual Bitcoin/USD product can be leveraged up to 100x which means that to speculate the equivalent of 100 Bitcoin only requires 1 Bitcoin of the users own funds. Users can go both short and long. If the trade goes the wrong way, the most you can lose is the funds you put into the position.

The fees for BitMEX are 0.075% for market takers and a 0.025% rebate for market makers. Market makers are traders that place limit orders that provide much-needed liquidity. Market takers are traders which take the best price possible at a given time and take away liquidity. The fees are calculated on the total value of the position.

In the last example, where 100 Bitcoin was traded using 100x leverage, this means that market takers will pay a 0.075% fee on 100 Bitcoin despite their own capital in the position only being 1 Bitcoin.

This means users will pay hefty fees on leveraged positions if they are market takers. There is also a funding rate applied to positions and occurs every eight hours a position is open. The funding rate involves either the shorts paying the rate to the longs or vice-versa. The funding rate can be monitored on the home screen dashboard.

With BitMEX being both the most popular and most liquid, it is operating on the frontier of cryptocurrency derivatives. It can be complicated to use for beginners but many intraday traders in the cryptocurrency markets conduct their trading activities here.

BaseFEX

BaseFEX is a recently launched crypto derivative trading platform that aims to provide a transparent, reliable and user-friendly derivative exchange, that can be accessed by traders located worldwide. It allows users to trade perpetual future contracts (with no expiry date) for both Bitcoin and Altcoins.

Sign up with BaseFEX by clicking here and enjoy a 10% discount on fees!

At the time of writing, it supports 10+ pairs which include BTCUSD, ETHXBT, XRPXBT and more. For Bitcoin contracts, it offers up to 100x leverage whereas for altcoins the leverage is between 20 to 50x. The trading interface, as described on our BaseFEX review, is not only intuitive but also filled with the in-depth price & market charts, real-time position of assets and more.

BaseFEX exchange makes use of the best security practices in the industry and stores user funds on multi-signature cold storage wallets. For making any transactions, 5 out of 7 partners need to sign the transaction, which helps to provide the utmost security for users’ digital assets. In addition to this, it offers 2FA protection to prevent customer’s accounts from unauthorized access. Moreover, the exchange doesn’t store any of the public or private keys on its servers to provide better privacy and security.

At the time of writing, BaseFEX accepts only Bitcoin deposits to trade perpetual futures contracts. The exchange operates on the maker-taker model and only deducts a nominal trading fee. The maker fee is nil for most of the assets, whereas the taker fee ranges between 0.07% to 0.20%. A funding fee is also applicable and is based on the type of fund (Short/Long).

Even though it is too early to give a verdict on BaseFEX exchange, it is a good competitor to other popular derivative exchanges like Bitmex and Deribit.

Deribit

Deribit is one of the main competitors to BitMEX. Deribit provides both cryptocurrency futures and options. The exchange is based in Amsterdam and offers both futures and options products. Deribit operates in a similar fashion to BitMEX in the manner that it only operates in Bitcoin.

The perpetual Bitcoin USD product on Deribit enables users to leverage up to 100x when speculating on the USD price of Bitcoin. While BitMEX also offers this, Deribit has a more developed options exchange. Options are another type of derivative instrument that enables users to speculate on the price of the underlying instrument. Although there are further intricacies, essentially, call options are used when speculating on the price going up and put options are used when speculating on the price going down.

While BitMEX delves into altcoins, Deribit just focuses on Bitcoin. There is a perpetual futures contract for Bitcoin and also contracts which expire quarterly. The fees for the perpetual contract are 0.075% for market takers and a 0.025% rebate for market makers. The fees for quarterly contracts are 0.05% for market takers and a 0.02% rebate for market makers. Options fees are 0.04% of the underlying or 0.0004 BTC per option contract.

Deribit has advantages and disadvantages when compared to BitMEX. It competes closely on a lot of factors and has a more developed options market. Nonetheless, BitMEX has far superior liquidity and also enables traders to speculate on the Bitcoin price of various altcoins.

OKEx

OKEx is an exchange which offers both spot and derivative trading products. OKCoin is the parent company of OKEx and has been operating since 2013. OKEx was launched in 2017 and is headquartered in Hong Kong.

The derivative products offered are futures which enable traders to apply large amounts of leverage up to 20x. The trading platform is aimed at professional traders and has a number of tools. Traders need to fill out a quiz to demonstrate their knowledge of futures products before participating. The features include an order book, price chart, technical analysis tools, and algorithmic trading tools.

In terms of fees, there are eight levels of progressively decreasing fees based on volume traded. The fees start at 0.01% for market makers and 0.03% for market takers at the lowest tier. The highest tier has a 0.01% rebate for market makers and 0.02% for market takers.

Some of the key benefits of OKEx is offering derivative trading products at low fees that can be traded with fiat currency. The key limitation is that trading in Euro is not yet supported and the exchange has only been launched since 2017.

bitFlyer Lightning

bitFlyer is a Japanese headquartered exchange which has been operating since 2014. The exchange launched bitFlyer Lightning in 2015 which offers derivative cryptocurrency products along with spot trading and ForEx to clients.

The futures available enable users to speculate on the price of Bitcoin against the Japanese Yen (JPY). Users can avail of leverage up to 15 times their margin (deposit). Both Bitcoin and JPY can be used as margin.  There are three different types of futures offered on the exchange.

There are futures with weekly, monthly, and quarterly expiry dates. The futures products enable traders on the exchange to go both short and long whereas bitFlyer’s spot products do not provide this capability to traders. The exchange has an order book, price chart, and recent trades printing. The futures products have no fees to trade.

The key limitation of the derivatives of bitFlyer Lightning is the limitation in the number of products offered. Bitcoin is only offered priced against the Japanese Yen which would mostly be relevant to Japanese clients. There is also no altcoins products available. Some of the key benefits include that the product would be highly useful for those trading in JPY and the product is also free to trade.

CME & CBOE

For traders and investors with large amounts of capital, both the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) launched Bitcoin futures products in 2017. Both marketplaces are highly regulated and offer a means for larger investors and institutional investors to participate in speculating on the price of Bitcoin. All contracts are denominated in USD.

The CME contract is based on 5 Bitcoin while the CBOE contract is based on 1 Bitcoin. CBOE requires 40% initial margin to trade their product and the CME requires an initial margin of 35%. With the products being traded on regulated exchanges, users would have to trade the product either through a registered broker or via owning a seat on one of the exchanges. This requires large amounts of capital and makes the product unsuitable for most who are trading in cryptocurrencies.

The exchanges apply circuit breaks to assist in handling the volatility of the market. Circuit breakers halt the market if the price moves a certain percentage within a trading session. Unlike online cryptocurrency exchanges which operate 24/7, trading in these products is only available during specified market hours.

While these products provide the opportunity for larger investors and institutions to speculate in the cryptocurrency market via derivatives, they are highly unsuitable to the majority of investors seeking to participate in the cryptocurrency markets.

The post Best Derivative Exchanges appeared first on Cryptimi.

If you’re looking to convert your fiat currency into Bitcoin or any other altcoin then spending time to find the best exchange is important. The so-called Fiat-to-Crypto exchange allows investors to buy cryptocurrency using traditional payment methods and easily sell digital assets when needed. In this article, we delve into the best fiat to cryptocurrency exchanges. We cover different angles and ways of exchanging to help you make the decision on which option is best. We will also present exchanges that support a wide variety of fiat currencies to save on forex fees, support multiple payment options such as Visa, Paypal, and Bank Transfer, and that cater to cryptocurrency enthusiasts from different geographical regions.

Do Fiat to Crypto Exchanges Suit Beginners?

Some exchanges will be more suitable for experienced traders while others will be more beginner-friendly. A good fiat to crypto exchange will not only have a good reputation but will also support your local currency. If you’re looking to day trade, factors like fees also come into play otherwise profit margins will suffer. Most of the fiat to crypto exchanges are beginner-friendly with good customer support and a simple interface.

Before diving straight into typical crypto exchanges that support fiat currency, let’s consider some other options which can facilitate cryptocurrency trading without the risks of security breaches. The following CFD platforms support fiat to crypto trades, even with Paypal, however, instead of buying actual cryptocurrency assets, you’ll be purchasing CFDs. To learn more about the benefits of CFDs read this article about Bitcoin CFDs.

Coinbase

Coinbase is one of the leading fiat to crypto exchanges for a reason. The company makes it straightforward and simple to exchange your fiat currency for cryptocurrencies. Coinbase is an ideal exchange for beginners because the process is designed to simplify the complicated aspects of cryptocurrencies.

Concepts such as wallets and the actual exchange process are designed to be easy-to-understand. Users can easily set up an account as they would on any standard website. Coinbase has a strong emphasis on compliance with regulations so personal details will be required when signing up. You will also be asked to verify your identity.

If you click here you will earn an extra $10, and so do we, upon your first deposit with Coinbase.

Users can choose to purchase cryptocurrency through a number of payment methods. Users can deposit to their Coinbase account via banks transfers or wire transfer. Depositing through wire transfer or bank transfer takes a few days to arrive. There are fees applied on depositing and withdrawing depending on the method and jurisdiction.

There is also the option to purchase with a debit or credit card. The option to purchase with a debit or credit card is an attractive feature which is not offered by many exchanges. It makes cryptocurrency accessible to people dealing in a variety of different local currencies.

There is a 1.49% fee on buying or selling in Coinbase. There will also be a 3.99% fee applied if a purchase is made with a debit or credit card. Although this is the most convenient option, it is also the most expensive.

Despite the higher fees, Coinbase is the most popular exchange for a reason. It has a very secure wallet, the user interface is sublime, and everything is easy to understand. Coinbase has also recently launched the Coinbase Bundle where users can buy a basket of five cryptocurrencies that Coinbase supports in proportion to their market cap. The bundle includes Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin.

CoinMama

Coinmama provides a quick and easy way to buy cryptocurrencies straight from their homepage. Once an account is created, users are presented with options to buy different cryptocurrencies in specified amounts on the homepage. The cryptocurrencies offered include Bitcoin, Ethereum, Litecoin, Ripple, Cardano, Quantum, and Ethereum Classic.

Users are quoted amounts for $100, $250, $1000, and $3000. It is also possible to customise the amount to be purchased.

The quoted rate will adjust based on market movements. The quoted rate also includes Coinmama’s fee which equates to 5.9%. If users make the purchase with debit or credit card, a 5% payment processing fee will be additionally charged. The ability to purchase with a debit or credit card is an attractive feature for a lot of users as it enables them to invest in cryptocurrencies through a wide variety of local fiat currencies.

Users will need to verify their account before making a purchase with either passport of national ID. Once verified, users can purchase up to $15,000 worth of cryptocurrency. Coinmama have also recently introduced the ability to deposit to the account via SEPA transfer which saves users paying the 5% payment processing fee.

CEX

A similar service but with options for advanced traders is CEX. CEX offers quoted rates in the same manner as Coinmama. Users are quoted amounts of cryptocurrency for $200, $500, and $1000 amounts. There is also a custom option. Users first have to set up an account before completing a purchase. Once users set up their account, they will be able to purchase cryptocurrencies with their debit or credit cards. There will be strict limits applied to how much they can buy but if they wish to extend their limits, they can choose to verify their account further.

Supported cryptocurrencies include Bitcoin, Ethereum, Bitcoin Cash, Bitcoin Gold, Dash, Litecoin, Ripple, Zcash, and Stellar Lumens. The quoted amounts are recalculated every two minutes. Although this is the easiest option for the beginner, CEX does charge a 7% fee for this service which is included in the quote. If this purchase is completed through debit or credit card, there will be a further payment processing fee. Despite the fees being higher to use debit and credit cards, the ability to pay through this method is an attractive feature for a lot of users as it enables them to purchase in a wide variety of local fiat currencies.

CEX also have a more advanced exchange where users can avail of lower trading fees along with margin trading. The margin trading enables users to go both short and long and also to apply leverage to their position. Although this is perfectly suitable for the beginner, it provides valuable features to the exchange.

The fee schedule for trading on the more advanced exchange is much lower than the quick-purchase option and also highly competitive. Fees are lower for market makers which are traders that place limit orders that provide much-needed liquidity. Market takers are traders which take the best price possible at a given time and take away liquidity.

Overall, CEX is a great exchange to consider for transferring fiat currency into cryptocurrency. It makes it straightforward for the beginner through the quoted amount option but also provides the features if the user wishes to do more advanced trading with their fiat currency.

Other exchanges that provide high-quality professional trading platforms at competitive fees are both Kraken and Bitstamp. However, both of these do not have the easy system for buying through quoted rates which makes it easy for those starting out and that is why they did not make this list.

OKCoin

OKCoin is an exchange that has been operating since 2013. OKCoin initially launched in China but due to China’s ban on cryptocurrencies, the business has been undergoing an expansion that has involved expanding operations to both North and South America.

The company is still based in China but it is opening offices and developing a team all around the world. One of the main reasons OKCoin has made this list is due to this expansion. Not many exchanges facilitate for fiat currencies in South America but with this expansion, OKCoin will cater for fiat currencies such as the Argentine Pesos.

OKCoin also has support for most major cryptocurrencies. This includes Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin among more. Users are also provided with a range of professional tools. This includes a price chart, order book, and recent trades printing. Users also have some technical analysis tools that they can use. The exchange has some of the largest volumes making it highly liquid.

OKCoin has some of the most competitive fees in fiat cryptocurrency trading. There are no fees for either deposits or withdrawals. Fees for trades get progressively lower based on the volume traded and are lower than most even from the highest tier.

One of the key limitations of OKCoin is that they have not yet expanded into providing trading for the Euro. Its expansion into South America puts it into a unique position in terms of supporting fiat currencies. The tools provided, competitive fees, and high liquidity all make it a strong exchange to consider for exchanging from fiat into cryptocurrency. OKCoin also has a strong focus on regulation adding to its credibility.

Bittrex

Bittrex was for a long time the main player in the field of crypto-to-crypto. They recently began supporting fiat currency which made them a contender for this list. The main selling point of Bittrex is the sheer amount of altcoins available. There are over 500 altcoins available to be traded against Bitcoin. Fiat trading pair options will be rolled out slower and currently, there are only 20 options available to be traded against USD. Despite the limited amount, using fiat to transfer into Bitcoin opens investors up to the over 500 pairs available to be traded with Bitcoin on Bittrex.

Similar to OKCoin, Bittrex also provides a range of professional tools to assist in trading. Traders have access to a price chart, an order book, a depth chart, and trades printing. Users also have some technical analysis tools which they can apply. All trades incur a 0.25% fee which is highly competitive.

Bittrex is not regulated which provides an additional risk to users. While exchanges like Coinbase are regulated and have consumer protection laws governing their operations, Bittrex do not provide this safety net to investors.

However, with Bittrex operating since 2014, it has built a trustworthy reputation and ranks highly among exchanges. The main benefits include the wide variety of altcoins supported, the fiat currency support recently added, and the low trading fees.

When choosing the best fiat to crypto exchange, we recommend looking at other factors like security and how long the exchange has been around. It is well worth noting the SSL certificate that allows secure connections on the world wide web. It is also highly recommended that you conduct your own research on the crypto exchange.

The post Best Fiat to Crypto Exchanges appeared first on Cryptimi.

The Altcoin Market

The altcoin market hugely rose in popularity during 2017. The largest altcoin by market capitalisation for most of 2018, Ethereum, rose from around $8 at the start of the year to above $1400 at one point. Massive market movements attracted traders and investors to place more and more positions in altcoins in hopes of massive profits.

The altcoin market is vastly different from Bitcoin. New projects arise every day. CoinMarketCap currently provides data on over 2000 projects. Many of these projects will not be around in the future and a lot have extremely low levels of liquidity.

Where to buy Altcoins?

Oftentimes, users want to invest in a certain project but only a small number of exchanges will list it. Here we cover the best Altcoin exchanges with the best operations and liquidity, and also the exchanges where you will likely find the altcoin that you wish to invest in. We include altcoin exchanges where you can speculate on altcoins with fiat currencies and also via crypto-to-crypto trading. This list takes into account the tools provided, liquidity, security, and more.

To kick-off our quest for the best altcoin exchanges, let us start with the best CFD platforms that offer the largest variety of altcoin CFDs:

• Topping this chart is eToro as it offers 16 different altcoins;
• Followed by XTB with 12 altcoins;
• Plus 500 and IQ option with 11 altcoins;
• And lastly, AvaTrade with 10 different altcoins.

However, for traders who prefer to purchase assets via Altcoin Exchanges, here are some of the best alternatives.

Binance

Binance is the largest cryptocurrency exchange by trading volume and lists 1,313 of the leading altcoins with new coins added weekly. Cryptocurrencies can be traded against USDT (a stablecoin which is pegged to the USD), Bitcoin, Ethereum, and BNB (Binance’s own cryptocurrency). Binance is considered one of the best options for crypto-to-crypto trading. It is the leading exchange by volume and has the most liquidity because of this. It lists a wide variety of projects and will also delist projects if it feels the need to.

Binance provides a set of professional tools to assist the trader including an order book, depth chart, and price chart.

The fees are also highly competitive for the exchange. Users that hold amounts of Binance’s native cryptocurrency, BNB, avail of lower fees. BNB was distributed as part of Binance’s ICO in 2017. BNB can now be bought and sold on Binance. Fees are lower for market makers which are traders that place limit orders that provide much-needed liquidity. Market takers are traders which take the best price possible at a given time and take away liquidity.

Binance mainly operates in crypto-to-crypto trading. Users of the exchange can speculate on the value of cryptocurrencies priced against USD by trading the pairs which are priced against USDT. Binance has mentioned plans to open a partnership exchange in Singapore with support for fiat currencies.

Nowadays, Binance also supports fiat to crypto purchases by making use of Simplex. Binance has recently moved its headquarters to Malta to take action towards being more regulated. Malta is developing a regulatory framework for businesses operating in cryptocurrencies and it is likely that Binance will be compliant with this set of regulations.

Bittrex

Bittrex was for a long time the main place where most traders conducted their altcoin trading. Prior to Binance and other exchanges developing a focus on a wide variety of altcoins, Bittrex had one of the largest crypto-to-crypto offerings. Bittrex has also recently added fiat currency support setting it up to compete with the likes of Coinbase and Kraken.

Bittrex has markets that pair altcoins against USD, Bitcoin, and Ethereum. There are over 500 pairings for altcoins against Bitcoin. The tools provided include an order book, price chart, depth chart, and trades printing. All trades incur a 0.25% fee which is competitive.

Bittrex is not regulated which adds some further risk to users funds. However, Bittrex has been successfully operating since 2014 and the executive team running the exchange are publicly known adding accountability. The main benefits to using Bittrex include the wide variety of altcoins available, the low trading fees, and the suite of trading tools provided.

Poloniex

Poloniex is a crypto-to-crypto exchange that has been operating since 2014. It was acquired by Circle in February 2018. Poloniex is an exchange that some traders love and other traders hate. There are key benefits to it but there are also some key caveats. We will note both here and you can make up your own decision about whether to use this altcoin exchange.

The fees for trading on Poloniex are competitive and progressively decrease based on the amount of volume being traded.

Some of the key features Poloniex offers include margin trading, the ability to open short positions, and lending. Margin enables traders to apply leverage to their position. It puts them in a position where their risk of loss is increased but also improves their returns if they speculate correctly. Fees will be charged on margin positions based on the market environment at the time.

Opening a margin position involves the use of borrowed funds. The funds are borrowed from other users on the exchange and they specify the interest rate. It is possible for users of Poloniex to use their funds to lend to other traders and earn an interest rate. This is a feature that few cryptocurrency exchanges offer. Margin trading also provides users with the option to take a short position. Few exchanges also offer this capability.

Although having unique features, Poloniex also has its fair share of issues. There have been numerous problems with users withdrawing funds from the exchange. There have also been reports of support tickets being opened by users and ignored by the Poloniex team.

Users of the exchange have to weigh up both the features and the caveats. Although some have an issue withdrawing funds, users have also reported that exchanging to another cryptocurrency and then withdrawing can be a solution. One of the key benefits of Poloniex is having Circle as the company that owns it.

The circle is backed by venture capital investors such as Goldman Sachs and it would tarnish both the company and the venture capital investors names if the exchange did not protect their user’s funds.

Kraken

Another exchange that offers margin trading is Kraken. Kraken support major fiat currencies such as EUR, USD, and GBP so that traders can speculate both long and short with their fiat currencies. Most cryptocurrency exchanges that deal with fiat currency do not have a wide selection of altcoins supported. Kraken is an exception and supports a considerable amount of altcoin pairs which can be seen in the below table.

This puts Kraken in a unique position. While there are ways to short altcoins through derivatives and margin, Kraken is an exchange where you can use your fiat currency to short altcoins. Users pay a fee for making a margin position but the fees are attractive. The standard maker and taker fees can be seen below.

The fees get progressively lower based on the volume that is traded. There is a 0.01% to 0.02% fee applied for opening a position with margin and 0.01% to 0.02% is also charged every four hours depending on what product is being traded. This can add up if the user is taking a long position with margin but for intraday trading, these fees are very low.

Kraken also provides a professional suite of tools which includes an order book, depth chart, recent trades printing, and price chart along with technical analysis tools. Kraken is also one of the more liquid exchanges. It is the world’s largest exchange in Euro Bitcoin trading. The company has also been operating since 2011 giving it a long history of operation and a reputation to protect.

The key benefits of Kraken are the unique position it is in to provide the ability to go both long and short altcoins with fiat currency. Leveraged trading can also be applied with the margin capabilities. The liquidity of the exchange and suite of tools serve to add even more value to the user.

The main drawback for Kraken in terms of altcoins is it does not offer the widest range of altcoins. While exchanges such as Bittrex offer over 500 pairs against Bitcoin, Kraken offers a wide variety for a fiat currency exchange but a small number when compared to the exchanges which especially deal in crypto-to-crypto trading.

Altcoins Through Atomic Swaps

Exchanges are the standard way that traders and investors swap between their cryptocurrencies. There are drawbacks to this process. If you hold your funds in a wallet, it can be costly to transfer them to an exchange, complete your trades, and transfer them back to the wallet.

There are other options. Some services facilitate atomic swaps where altcoins can be directly swapped for one another. The process is simple. You input the address where you want to receive your desired cryptocurrency and you will be provided with an address to send the cryptocurrency which is being exchanged. We present in this bonus section the two leading atomic swap providers.

ShapeShift

Users are required to set up an account to start using Shapeshift. ShapeShift take security seriously and require that users both verify their email and enable two-factor authentication before using their service. Users will also be provided with codes they can use to recover their account in case access is lost. Once users set up their account and verify, they will be able to conduct trades to a limit of $10,000 daily.

The transfer process is straightforward. Users select the cryptocurrency that they wish to transfer from and the cryptocurrency they wish to transfer to. They provide the address that they wish to receive the cryptocurrency to and they will be provided with an address to send the cryptocurrency being exchanged to.

An exchange rate will be clearly stated and the miner fees will also be clearly shown. The exchange rate incorporates an approximate 0.5% fee for ShapeShift. Users can easily transfer from Bitcoin to altcoin, altcoin to Bitcoin, or altcoin to altcoin. ShapeShift currently supports 40 cryptocurrencies and aims to support more going forward.

ShapeShift also have their own native token called FOX. Users with amounts of FOX will be able to access extra membership features going forward but these are not yet available. Users receive 100 FOX for verifying their account.

Changelly

Changelly operates in the very same way. Users can exchange Bitcoin to altcoin, altcoin to Bitcoin, or altcoin to altcoin. The account set-up is not as strict and users can exchange straight away once they have set-up their account. Miner fee will be clearly stated along with the exchange rate.

Changelly charges the same fee as ShapeShift at 0.5% and this will be incorporated into their exchange rate. Changelly supports exchanging between over 120 cryptocurrencies. Users can avail of a daily limit up to $20,000 and a monthly limit up to $50,000.

While Shapeshift only supports exchanging between cryptocurrency, Changelly also supports exchanging EUR and USD between cryptocurrencies. Users can purchase cryptocurrencies with debit or credit cards. Users have to undergo a verification to use this option and will also pay higher fees of 5% going to Changelly and 5% going to the payment processor. The transactions of fiat for cryptocurrency are fast taking approximately 10 to 30 minutes.

Which exchange has the most Altcoins?

From our above-list of best altcoin exchanges, our recommendation goes with Binance. Not only it supports almost 200 different cryptocurrencies, but also their fee structure is highly competitive. Binance is available for users around the world (including the US) and it keeps improving on its product by partnering up with other crypto operators like Simplex. Altcoins can be traded for another cryptocurrency or fiat.

Is it worth buying Altcoins?

Investing in Altcoins is riskier than other investments, however choosing altcoins that have been around for a proven amount of time, like Ethereum, can bring high-returns. Investing in the correct altcoins can deliver high returns to its investors.

Top Altcoins to lookout for:

• Ethereum (ETH) – $186 billion
• Tether (USDT) – $28 billion
• Cardano (ADA) – $21 billion
• Ripple (XRP) – $19 billion
• Polkadot (DOT) – $18 billion

Most of these rankings change continually, although Ethereum, Ethereum-based, or Bitcoin-based currencies commonly feature in the top 3 rankings. Other significant Altcoins include Litecoin (LTC), Bitcoin Gold (BTG), and Stellar (XLM).

Check out our recommendations on the best Altcoin wallets for secure storage and ensuring that you won’t fall into any criminal’s trap whilst also enjoying enhanced functionality and Altcoin support.

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