Which are the best Cryptocurrency Exchanges?

There are some very clear differences between cryptocurrency exchanges. What makes one stand out more than the other can very well be subjective. In my opinion, the best cryptocurrency exchanges are easily identified based on the volume of trade that they do.

However, that metric could be misleading when applied to an up and coming exchange, particularly with the increasing adoption of decentralized exchanges over centralized exchanges. In this article, I'll share with you some of the experience I have with different cryptocurrency exchanges, and hopefully, this will help you spot the best cryptocurrency exchanges out there today.

What to look for in the best Cryptocurrency Exchanges

There will be a number of reasons why trade flocks to one exchange over another. The majority of the time people move with their feet over price, but, with the development of comfort and familiarity, prices can shift upwards just a little, and the people don't move at all. It's a bit like cooking a lobster in a pot; you start off with cold water and the heat slowly goes up, you don't drop the lobster into boiling water.

I have seen some very subtle price shifts to the upside with fees on some very well known exchanges, and they still do a roaring trade, even in such a small market.

This suggests that the first thing some of us will consider with a cryptocurrency exchange is the fee structure. These can be difficult to find on some exchange websites, and in some cases, once you find them, interpreting them is a whole other story!

Consider the Fees

Take the time to consider the fees for buying, selling and transferring the cryptocurrencies you are interested in across a number of exchanges. The table in the post Which Cryptocurrency Trading Platforms To Use I have provided a comparison of some of the fees associated with trading in crypto.

Before you commit to using any single platform, I would suggest that you consider every aspect of the fees that they charge, and make a decision that is right or you.

In my opinion, the best cryptocurrency exchanges are the ones that openly disclose their fees, and make it easy for you to understand how these are charged. In most cases, there will be a link in the footer of the website that will take you straight to the fees section. Exchanges like KuCoin, Binance, and Huobi make their fees easy to find. On the other hand, Cryptopia makes it rather difficult to find the fees on their website, and once you do see them, you will most likely choose not to use them.

Consider the Security

When trading online with any amount of money you need to be mindful of security. There are very specific things to keep in mind when using a cryptocurrency exchange, regardless of whether they are one of the best cryptocurrency exchanges or not. Keep in mind the following things:

• Check out what is being said on Reddit and other forums about the exchange
• Never leave money on an exchange for longer than you need to
• Always activate 2 Factor Authentication
• Choose a strong password

Some exchanges have a bad name for reasons beyond the security they offer their users. This can go much deeper, and in the case of exchanges like YoBit, there can be some uncertainty around their compliance with local legislation. YoBit, in particular, has been under investigation by the Russian authorities for a number of fraudulent activities.

As I said, take a look at Reddit and Bitcoin Talk to see what you can find out about the exchanges, and then decide for yourself if you wish to use them or not.

Setting Up Your Account

When setting up your account make sure that you use the same approach to security that you do for setting up your fiat to crypto on ramps. Account security for your exchange profile is more than just about a password that is more complex than the kind your mom or dad might use. Make sure you stick to the steps outlined in Starting With Bitcoin.

The Best of the Best Cryptocurrency Exchanges

For my money, the best of the best cryptocurrency exchanges in the centralized cryptocurrency market is Binance. Laying claim to the overwhelming majority of the volume in the cryptocurrency exchange market, Binance offers reasonable fees and a selection of quality cryptocurrencies.

When a project is listed on Binance it typically sees growth that is often to the upside, and sometimes parabolic when compared to other lesser used cryptocurrency exchanges. This is often leveraged as a strategy by hodlers with crypto that is looking for exchange listings, the moment there is a whisper it is getting listed on Binance, the price starts to go up. Now, that's an indication of the quality you can expect from Binance.

If we are looking at what is out there in the decentralized cryptocurrency exchange (DEX) space, I tend to lean towards BitShares, Waves, and Bancor in that order. A DEX offers a range of security features that a centralized cryptocurrency exchange can not, as well as more attractive fee structures. The main area where a DEX lacks in the security area is they don't currently have a means to facilitate 2FA.

This article was recenty posted on my website TechMagy and shared here with the Steemit community to add value.