An astounding 600 digital currency exchanges lie scattered across the globe. They issue invitations to investors to trade in the official bitcoinpro, Bitcoin, and other virtual assets.
Reasons for so Many Exchanges
The crypto world does not place any barriers to entry. Any entrepreneur with the right amount of money and the right kind of software, may set up a cryptocurrency exchange. The highly-advanced technology is available from firms, such as GCEX in London, B2Broker from Cyprus, Alphapoint from New York City, etc. The entrepreneur must shell out a mere $5,000 per month for this software. Additional expenses involve setting up the official website, the financial connections, the legal setup, etc. They do not amount to much either. The start-up need not be in a big city or a well-known country. Several entrepreneurs launch their start-ups in Samoa, Saint Kitts, etc., which are small islands and not too concerned with regulations.
Forbes’ Analysis
The Forbes team categorized these crypto exchanges into Classes A, B, C, and D. The criteria for Class A, included the trading charges, backing provided by the concerned establishment, the cyber-security measures in place, the extent of compliance with regulations, etc. The list even considered those exchanges that exhibited $100 billion in daily trading volume. This sufficed to let investors know that crypto exchanges were making huge trading volumes every day.
Class B consisted of firms that engaged in crypto trading, but had not made it their regular business. Class C firms are not as regulated as the Class A firms, are. Class D category comprises of firms displaying official websites. These websites are legitimate and even registered legally, albeit in places, such as Hong Kong, Seychelles, et. Business registrations are there. However, they do not necessarily indicate regulatory compliance. Sometimes, regulating bodies are only missing. Therefore, the Forbes Team placed such heavy weightageon regulatory compliance.
Best Cryptocurrency Exchanges
Binance U.S.
Binance U.S. offers an extremely generous fee structure to its fans. Investors should find the transaction charges quite affordable. The investor may deal in any kind of cryptocurrency with U.S. dollars. The conversion fees are affordable. The maker/taker fee is just about 0.1%. As the investor’s trading volume rises, the fees keep getting lower and lower.
It is wonderful for an investor to be linked with Binance, for it has the label of possessing the largest global trading volume. Even Binance U.S., its local counterpart, does not do too badly. An investor using the native coin, BNB to cover purchase/sell/exchange deals, may expect to receive good returns. There are advanced data graphs and trading charts, to let the investor know what to expect. Furthermore, the transactions go through with extreme speed.
The Binance platform is also known for offering discounts, margin trading, various orders (market orders, limit orders, etc.) and comprehensive market dashboards.
It is not possible to approach Binance, if the investor resides at Texas, Idaho, Vermont, Hawaii, New York, or Louisiana.
Coinbase
Coinbase is excellent for people making an entry into the crypto world. The novice gains access to educational material easily. This material talks about healthy security measures, blockchain technology, volatility of crypto marketplaces, etc. They are all part of the Learn & Earn program. Additionally, the interface of Coinbase is highly user-friendly, and easy to navigate. Getting onboard is a straightforward process. Even managing the currencies, thereafter, is an easy job. Purchasing cryptos from this exchange, is easy. The platform offers a wide selection of digital currencies. The exchange is very well-known, especially in the U.S.
Coinbase has marvelously stringent security measures in place. Every kind of platform requests a two-factor authentication. There is even an insurance policy in place, for the protection of custodial accounts. These accounts may have amounts of $250,000 in them, in alignment with per-depositor FDIC coverage limits. Therefore, even if the fees’ structure seems complex and costly, investors are happy to go along with Coinbase’s regulations.
Coinbase offers another exchange platform, with the name of Coinbase Pro. The platform provides advanced charting and trading features.
Other Exchanges
Crypto.com offers outstanding security features, to keep an investor’s holdings safe. One such feature is two-step authentication. Log on to Bitcoin smart for safe investment and safe Crypto trading.
BlockFi is marvelous for earning heavy monthly interests on crypto holdings.Unlimited, free withdrawals are another feature.
