There are dozens of cryptocurrency trading sites all over the world. With the continuous expansion of digital assets, users want to get access to them in easier ways. However, selecting the best cryptocurrency trading sites is not an easy thing to do.
Depending on your needs, you would prefer to use one platform or another. Everything depends on the tools you need and the type of trader you are. Some exchanges offer margin trading, derivatives, spot cryptocurrency trading, staking and other solutions.
What are Cryptocurrency Trading Sites?
Cryptocurrency trading sites are platforms that offer trading services for digital assets. Users can buy and sell virtual currencies using these cryptocurrency trading sites. In recent years, the number of crypto platforms to exchange digital assets has been growing due to a growing crypto demand.
Crypto exchanges are usually the best way to buy and sell virtual currencies. They have a great user experience and they do offer different services rather than just trading solutions. In some of these platforms, investors can deposit fiat currencies and exchange them for Bitcoin (BTC), Ethereum (ETH), and other virtual currencies.
Furthermore, some of the exchanges are also supporting bank deposits, purchases with credit cards and many other things. In the next section, we will go through some of the most important
Cryptocurrency Trading Sites Services
The main service offered by cryptocurrency trading sites is related to trading services. As we have mentioned in the previous sections, users can exchange their virtual currencies for other digital assets, stablecoins or fiat currencies.
Trading services would change depending on the platform. For example, some crypto trading sites would have higher or lower fees, different trading charts, matching systems that work differently and more.
Trading pairs are also an important part of trading platforms. The larger the number of the trading pairs, the better it would be for traders that want to expand their trading strategies and that want to expand their portfolios.
Furthermore, the trading volume would also play an important role in the way in which traders would feel while trading. The higher the volume, the more efficient the market would be and the lower the volatility would be.
Staking and Mining
Considering the crypto market reached millions of users from different countries, blockchain platforms have also expanded. That means that some blockchain networks started offering crypto staking and also mining.
While in the past it was somehow difficult to get access to mining and staking, it becomes easier with exchanges. Although there are some commissions you should pay when you cashout, the possibilities offered by crypto trading sites are unlimited.
Crypto exchanges became a key part of the crypto market. Users can hold their virtual currencies and stake them to earn rewards. Moreover, they can also mine some digital assets in selected crypto trading sites (this is not an option available on all the platforms).
Lending and Borrowing
Lending and borrowing became very popular with the expansion of decentralized finance (DeFi) platforms. However, cryptocurrency trading sites have also been adding these solutions. In this way, users that hold their funds on trading platforms are now able to also lend their funds.
These funds are then used by traders that want to trade with leverage. Furthermore, some platforms allow users to borrow funds and use them for other activities. Lenders will receive a reward according to the APY offered by the crypto trading site.
The APY could change over time and from crypto to crypto. Some digital assets would be more demanded than others and lenders would receive higher rewards. Now that exchanges are offering lending and borrowing, users do not need to be worried about how to use a DeFi platform (which are sometimes confusing and intimidating for many).
Margin Trading and Derivatives
Margin trading is an additional service that is available on most of the largest cryptocurrency trading platforms. This became a highly useful and demanded service by traders that use cryptocurrency trading sites.
Although the spot market is very useful to buy and sell virtual currencies, it is also necessary for advanced traders to trade derivatives. By trading crypto contracts, investors can increase their exposure to the market by using leverage.
Some cryptocurrency exchanges offer leverage of as much as 125x. That means that those expert traders that are sure about the direction of the market can easily increase their position and earn larger rewards. However, it is highly speculative and it could generate massive losses for traders.
Top Cryptocurrency Trading Sites
There are several cryptocurrency trading sites. Each of them is different and offers a variety of services and solutions for traders. In this section, we are going to share with you some of the most popular exchanges all over the world.
Binance is among the largest crypto trading platforms. The company has been operating since 2017 and it has expanded to become a leading crypto exchange in the industry. Nowadays, Binance offers a wide range of services compared to other platforms.
One of the positive things about this exchange is related to a large number of solutions they’ve added in the last years. For example, nowadays Binance allows users to lend funds, stake their coins, mine Bitcoin, participate in Initial Exchange Offerings (IEOs) and more.
Furthermore, Binance became a popular exchange due to the large number of tokens added between 2017 and 2018. Moreover, crypto projects are always waiting to have their tokens listed on the platform.
In terms of trading fees, Binance has standard commissions. There is a small difference between maker and taker positions and there are rebates for users that have large trading volumes and that hold Binance Coin (BNB) on their accounts.
In addition to it, Binance has added derivatives trading. In this way, the most advanced traders can get larger exposure to virtual currencies. Although this is a risky activity, the trading volume of the margin trading Binance platform has been growing over time.
Finally, the Binance exchange is also part of the Binance ecosystem. The Binance ecosystem includes the Binance Chain (BC), the Binance Smart Chain (BSC), the Binance Coin (BNB) virtual currency and decentralized exchange (DEX), among other things.
Coinbase is one of the oldest digital asset exchanges in the industry. The platform became very popular among users that wanted to get access to Bitcoin (BTC) and Ethereum (ETH) using fiat currencies.
One of the main advantages of this exchange is related to how easy it eas to manage your funds and the whole platform. It became especially useful for newcomers to the crypto market that didn’t know how to use digital assets.
In the last years, Coinbase added a larger number of virtual currencies to its platform. The goal was to attract a larger number of users that were using other exchanges such as Binance. Furthermore, with increased interest from institutional investors, Coinbase started offering solutions to larger buyers and sellers.
Nowadays, Coinbase is a proxy of institutional involvement in the crypto market. This is why several blockchain companies are analysing the number of BTC withdrawn from this platform or deposited. The larger the funds that move outside Coinbase, the larger the possibilities big companies are withdrawing their funds to cold wallets.
Bybit is another virtual currency exchange that focuses on derivatives. One of the main benefits of this exchange is related to the possibility to trade with leverage. Margin trading is one of the riskier things to do in the cryptocurrency market, but with a large possibility of generating profits that are larger than in the spot market.
Bybit aims at offering a fast and efficient platform that would not be lagged or down in periods of high trading volumes. This usually happens when digital assets move higher or when Bitcoin reaches a new all-time high. Moreover, when there is a massive crash in the market with a large volume, platforms could face technical issues.
This is among the top cryptocurrency trading sites offering leverage of as much as 100x. While other platforms might offer leverage of 5x, Bybit focuses on derivatives products (perpetual contracts) that follow the price of digital assets and that would offer users the possibility to make large gains if they are able to predict the next movement in the market.
Kraken is one of the most respected and established cryptocurrency trading sites in the world. It is not only one of the biggest but also one of the most secure. This exchange is the first option for a large number of users because it supports fiat deposits.
Most of the exchanges didn’t offer users the possibility to buy cryptocurrencies using fiat currencies. Just in recent years, it became a trend that most of the platforms implemented. The exchange was able to get banking partners in different countries, allowing it to accept deposits and withdrawals from fiat currencies in different countries such as Japan, the United States, the United Kingdom or even Europe.
Although Kraken has never been hacked (which is one of the most important things to look for in cryptocurrency trading sites), it does not have good customer support. Nonetheless, it is worth mentioning that bad customer support is a problem that many other exchanges are facing. This is not only a problem for Kraken.
If you want a stable and secure exchange with support to crypto and fiat pairs, then Kraken is one of the best platforms for you.
Let’s go with Bitmex. This is among the most recognized cryptocurrency trading sites due to its derivatives trading solutions. The exchange became very popular when derivatives were not that popular among the crypto community.
Bitmex offered advanced crypto traders to trade crypto contracts and use leverage for their trades. A few years ago, this was not common for crypto traders. Nowadays, there are other platforms that are competing with Bitmex.
However, Bitmex was a pioneer in terms of offering advanced trading tools and solutions to traders. While newcomers stayed in Coinbase, expert traders that needed better solutions used the Bitmex exchange.
At the moment, Bitmex continues to be one of the derivatives platforms in the crypto space with the largest trading volumes. This is the reason why it is among the best cryptocurrency trading sites. The team behind Bitmex is certainly recognized and has been working in order to offer some of the best services to clients from all over the world.
Bitfinex is a strong competitor of exchanges that offer fiat currencies. The exchange focuses on spot trading but also margin trading for users that want to get larger exposure to the cryptocurrency market.
The platform supports most of the largest altcoins in the market. In this way, users can diversify their portfolios and trade a diverse number of coins rather than just Bitcoin or Ethereum. In addition to it, Bitfinex accepts fiat currencies and bank transfers.
Although the platform was hacked in 2016 (this is one of the oldest cryptocurrency trading sites), it has now adopted the necessary measures to protect users funds and avoid getting attacked. Furthermore, users of the platform love the interface because it is very intuitive and helps users feel comfortable while trading in the market.
Bitstamp is one of the most used crypto exchanges in Europe with lave trading volume and some of the best services in the European continent. Compared to other platforms, Bitstamp offers better trading fees and makes it easier for users to get access to virtual currencies.
At the same time, Bitstamp focuses on fiat on-ramp solutions. In this way, they are able to attract new users and help interested individuals to get access to the crypto market. Due to this reason, Bitstamp is among the best cryptocurrency trading sites for European users.
The exchange is not offering margin trading. However, considering there are several exchanges supporting leverage trading, it could start offering it in the future. Bitstamp continues to attract a large number of users with high trading volumes in different fiat pairs. Furthermore, it is a secure platform for users that want to buy and sell virtual currencies.