Best Bitcoin Trading Platforms
How to choose the best Bitcoin Trading Platform?
One of the most common mistakes traders make is thinking that all they need to be successful is to develop good technical analysis skills, whereas there are multiple factors that can seriously affect a trader’s performance. Considering that there is a third party between the interaction of a trader and the market (exchange companies), it is imperative to do an exhaustive search to find the one whose policies do not affect our operations, thus allowing us to establish a healthy trading plan and achieve our objectives.
Many people wonder how to choose the best Bitcoin trading platform and the answer lies in the basics and policies of each site. If you were to invest money into a bank’s checking/savings account, you would want to do your research on their interest and bonus policies first, so as smart investors we should do the same.
What to consider when choosing the best BTC trading site?
- Deposit and withdrawal policies: The first thing we should consider are the available deposit and withdrawal methods, in order to ensure that we can send and receive money from the platform without any problems. Some companies abuse deposit fees or limit you when withdrawing your earnings, so this is a very important point.
- Spreads/Transaction fees: Choosing a Bitcoin trading platform with decent spreads and transaction fees is vital if we want to be successful in our risk management. If by opening an order we already have a considerable amount of loss (thus damaging our risk-reward ratio) then this platform is not for you. It is recommended that traders calculate exactly how much they can lose per trade and if transaction fees/spread seriously affect that loss margin, it will be very difficult to be profitable in the long term.
- Company info: Although many Bitcoin trading platforms are decentralized, it is also true that many fraudulent companies take advantage of this to offer fake services and scam users. We should be able to know at least who is behind the platform and if they really exist somewhere in the world. Considering that we are really going to entrust our money to a platform, it is necessary that we see a professional profile of the company and who leads it.
- Decent interface and charts: Experienced traders know what it feels like to operate on a good trading platform but whose charts make us have a misconception of the market by design. Considering that the price of digital assets is slightly different on each exchange and that many traders base their strategies on small movements, this could affect the destination of our trades. Make sure you get a platform with a clear interface and well-crafted charts.
- Available orders: Not all traders handle the same strategies or position the same orders when trading the crypto market. For some traders the best entries will be positioned through market orders, while for others they will be positioned with limit/stop-limit orders. There are even traders who trust OCO (One Cancels the Other) orders but not all trading platforms have the same types of orders, which is why it is advisable to choose one that does have variety in this regard.
- Strong security features: It is no secret to anyone that Bitcoin trading platforms are the preferred target of hackers, especially if they have weak security systems. Any serious platform should have security protocols such as 2FA, security questions or fingerprint / facial recognition, in addition to having the majority of user funds destined for cold storage, thus preventing any attacker from reaching them. In addition, we should be certain that the company is responsible for replenishing stolen funds in the event of a security breach in the system.
What are the best 5 Bitcoin exchange platforms?
FTX ( Best Platform for Professionals )
FTX is a cryptocurrency exchange whose platform is focused on trading crypto derivatives and other assets (as well as stocks and futures from the presidential elections). This exchange was founded in 2017, although there is no real information about who started the company.
This trading platform has 48 digital assets available to position operations in the market, including tokens such as OMG, YFI, UNISWAP, COMP, ATOM, TRX and more. By being able to trade these cryptocurrencies available as traditional futures and leveraged tokens, no fees will be charged for future settlements, while leveraged tokens will be charged redemption fees of 0.10%, and daily management fees of 0.03%. For perpetuals, 0.02% maker and 0.07% taker fees will be charged.
To deposit to your FTX account and start trading you can choose a transaction in cryptocurrencies (Not only are you limited to BTC, but you can also choose USDT) or you carry out a KYC process to complete SEPA transfers in fiat currency.
FTX has different types of orders, among which you will find Stop-loss limit, Stop-loss market, Trailing stop, Take profit, and Take Profit limit orders. Beyond their trading products, FTX users are happy to have a seemingly functional security system that has prevented them from being hacked so far.
- Perpetual swaps available for more than 20 crypto assets and stocks.
- Has never been hacked.
- Charts are well-elaborated.
- Decent fee rates.
- Interface design could be better.
- Low liquidity market.
- The platform can get quite slow.
- Almost no info on who is behind the company.
PrimeXBT ( No KYC required )
PrimeXBT is a next-generation trading platform that has been offering its services to more than 150 countries since 2017. Unlike the other platforms reviewed in this post, PrimeXBT not only works with cryptocurrencies, but also has Forex pairs. , indices and commodities, although it has 20 of the most important crypto pairs for its users to enjoy a good experience in the market.
There is not much information about the founder (or founders) of PrimeXBT or the technical team that keeps the platform standing, which leaves a somewhat cloudy feeling about the company.
PrimeXBT has the basic order types, which are Market, Limit, Stop and OCO, with take profit and stop loss levels for each setup. The orders issued on this platform come with a commission (0.05%), in addition to having a spread of 0.5 in the price of Bitcoin.
PrimeXBT keeps users’ funds through cold storage system, which means that even if there is a security breach, users will not lose their money. This could explain why the platform has never been hacked.
To deposit funds to PrimeXBT you can make transactions with Bitcoin or opt for the Changelly Widget deposit if you do not have cryptocurrencies yet. In this option, you can buy the cryptocurrency you want with a credit card and the funds will be sent to the PrimeXBT wallet.
- Multiple assets available from different markets, which makes it a wide-range trading platform.
- Advanced options and very well designed charts, thus facilitating technical analysis.
- The funds are kept in cold storage.
- Acceptable interface.
- Unregulated broker
- It does not have information on who is behind the company.
- PrimeXBT is not a high liquidity platform.
- It does not have so many crypto trading pairs.
Binance ( Great allround Platform )
Founded in 2017 by Changpeng Zhao, Binance is currently considered the best cryptocurrency exchange for its multiple functions and varied trading products. Binance provides its users with a friendly interface with well-designed charts, which are used to analyze cryptocurrency pairs either in the spot or futures market. This platform has basically any cryptocurrency and types of existing orders, which gives the user all the options to successfully exercise their strategies.
Although Binance has a strong security system and different mechanisms to protect accounts, there have been attacks in the past, with the theft of 7,000 BTC in May 2019 being the largest attack that the exchange suffered. Responsibly, Binance took full responsibility for the event and replenished all stolen funds.
Binance works through a commission system that establishes 0.1% maker and taker fees (0.0750% if you trade BNB) for each of the operations positioned in the market, although you can pay even less fees if your 30-day trading volume is significantly high.
Another wonderful aspect of Binance is that you do not have to pay deposit or withdrawal fees, except for the corresponding network fee for each cryptocurrency. In this case, the BTC fees can be a bit high compared to the rest, so it is recommended to use other coins such as DASH or Litecoin for their exceptionally low network fees.
Binance also allows multiple deposit methods including transactions with cryptocurrencies, bank wire transfers and purchases with a debit / credit card, although for these functions it is necessary to complete a KYC procedure.
- Binance has listed all the best altcoins and ERC-20 tokens in the crypto market.
- Has a really good mobile app.
- Supports P2P exchange operations.
- Huge transaction volume and liquidity.
- It is one of the safest exchange platforms out there.
- Has multiple deposit methods, making it easier for new crypto users to join the market.
- Customer support service can be quite tedious sometimes.
- Unregulated exchange.
- Not the easiest platform for beginner traders.
Bitfinex ( Great Liquidity )
Bitfinex is one of the largest Bitcoin trading platforms in the crypto ecosystem and was founded in 2012 by Giancarlo Devasini and Raphael Nicolle. This exchange has a very pleasant interface with intuitive designs and charts that will favor the technical analysis of users, who will be able to enjoy more than 480 pairs of cryptocurrencies to trade.
The Bitfinex datasheet is not hidden and you can get enough information about the company to which the platform belongs, iFinex Inc.
Bitfinex commissions are charged under the maker system (0.1%) and taker (0.2%) fees, although the exchange enables discounts on its transaction fees for users with accounts with certain levels and who trade UNUS SED LEO.
Like any advanced trading platform, Bitfinex has different types of orders: Limit, Limit (Order Book), Market, Stop, Stop-Limit, Trailing Stop, Fill or Kill, Immediate or Cancel and Scaled order. In addition, there are several options for orders such as OCO (One Cancels the Other), Hidden, Reduce-only, among others …
To deposit to Bitfinex you can use crypto transactions or verify your account with KYC procedures to be able to make deposits and withdrawals in US Dollar (USD), Euro (EUR), Great British Pound (GBP), Japanese Yen (JPY) and Chinese Yuan ( CNH).
This exchange has already been hacked in the past and received a hard hit after said event, for which they have established rigorous security measures when logging in and carrying out certain operations.
- Lots of listed cryptocurrencies, including hundreds of altcoins and ERC-20 tokens.
- 2fa and strict security measures were established in the platform.
- Different deposit and withdrawal methods.
- Relatively low transaction fees.
- It has a mobile app.
- Friendly interface.
- It has been hacked in the past so it can bring out some doubts when creating an account.
- Way too high deposit minimum.
- The platform may get buggy sometimes.
Kraken ( Great for US Citizens)
Kraken is a great option for trading cryptocurrencies if you are looking for a reputable regulated exchange. The Kraken platform meets all the parameters to be among the best Bitcoin exchanges, offering an implecable service through an intuitive interface and with different trading products.
This exchange has a strong security system that, despite the fact that Kraken has been active in the cryptocurrency market since its founding in 2011, it has not suffered any security breaches or lost user funds.
Kraken commissions are based on 0.16% maker fees and 0.26% taker fees, although users with high transaction volumes may pay less.
Kraken also has multiple types of orders on its platform, among which are Market & Limit, Stop loss, Take profit, Stop Loss Limit, Take Profit Limit and Settle Position. These orders will serve to establish limits and parameters in the open positions of each user.
Kraken was founded by Jesse Powell and you can find all the necessary information about the company on the platform, which gives the exchange transparency. If you want to become a Kraken user, you will have to verify your account through a KYC process and you will be able to fund your account with Bitcoin or through bank wire transfers and/or debit/credit cards.
- Spot and futures trading available.
- Lots of listed trading pairs for margin trading (155 to be exact).
- Very reasonable fees.
- Regulated exchange with impeccable reputation.
- High security measures to protect users from hackers.
- KYC verification might take longer than in other exchange platforms.
- Quite an exclusive Bitcoin exchange, so Kraken is not available in many countries.
- They could have more available orders for margin trading.