What makes a great cryptocurrency exchange?
As we know, cryptocurrency exchanges don’t just exist in a void. And those that all they do is report the hundred millions of dollars (in profit) without delivering quality services, and communicating to the crypto community are not real-time exchanges. At least, not those we probably want to do business with.
The truth is that they just don’t deserve our patronization (partnership), not in 2019 if we did in 2017, and early 2018.
At times dealing with a crypto exchange can get messy, and if it does, we may be the losers at the end of the day; most especially if we had no foreknowledge of the users favorite crypto website to go for.
But how do you know the right cryptocurrency exchange when you are not told the qualities you must look out for?
Now, the big question is, how can you get along with the best reputable Altcoin exchanges to avoid all sorts of embarrassments and disappointments?
Talking about disappointment, I don’t know about you but I have had my own share of it – once though.
Now, as I sat and thought how I was affected by this, immediately it dawned on me that perhaps, there is someone out there that might have shared the same ugly experience while using a poor delivery Bitcoin exchange. What a vexation!
Now, the question you might want to consider are, does a bitcoin exchange that offers options such as app integration, personal calls, fiat to fiat pairing, and more, the best? Or, how do I choose the best crypto exchange based on community trust and accountability? These and more is what I want to guide you through.
What to do?
Position yourself because things won’t go well with the cryptocurrency exchanges that all they do is tell us how they are worth $19 Billion and making a roundup profits of $10,000,000. Enough of those!
The users for all I care want a better service delivery. After all, they are worth billions of dollars because of us.
Al right, let’s know the basis for the sake of the esteemed beginners.
AN OVERVIEW OF THE BEST CRYPTOCURRENCY EXCHANGES/BROKERS
WHAT IS A CRYPTO EXCHANGE?
Crypto Exchange is an online platform where the buying and selling of cryptocurrencies in the most common way (locally & advanced) are made possible for actors (traders).
In a straight line definition, you can see them as websites that trade digital currencies. Learn more.
Based on the structural pattern of a crypto exchange, they may offer a fiat/crypto paring; an opportunity you can trade cryptos with local currency.
TYPES OF BITCOIN EXCHANGES/BROKERS
There are basically two types of cryptocurrency exchange. One is a decentralized exchange and the other, decentralized.
These are online platforms that offer the buying/selling cryptocurrencies with fiat (fiat/crypto paring), as well as buying/selling cryptocurrencies with other cryptocurrencies (crypto/crypto pairing).
Basically, centralized exchanges are private entities. Meaning that, since it is a brainchild venture, it is run with a back-end of making a profit from charges made by the users and transactions.
In a centralized exchange, the operation (how things work) is strictly on the exchange terms and conditions.
Some examples are Coinbase, CEX, Binance, Bittrex and etc.
This is a varying opposite of a centralized exchange system.
While a centralized exchange makes buying/selling cryptocurrencies with fiat (fiat/crypto paring), and (crypto/crypto pairing) possible, a decentralized exchange on the other hand only operates on a (crypto/crypto pairing) base.
However, the main difference between a Decentralized and a Centralized is that, in a Centralized exchange, you are simply trusting somebody else to handle your money.
DEX: Decentralized Exchange
Does not need a middleman for trading.
You pass through the exchange directly.
Deals and payment are facilitated via smart contracts
The private key to access all your digital coins is with the exchange.
Possible bad experiences due to confusing usability.
Present a simple user steps and guide.
It blots out any form of trusting anyone with your fund.
You are basically trusting the exchange with your money.
Breaches are almost not possible – difficult. (the funds are with the users)
A breach or a deep compromise in a centralized exchange vault means a loss of funds. (Mt.Gox, Coincheck)
They operate in a pure peer-to-peer system.
They operate as both a 2p2 and as a centralized system
Not attractive to hackers – mission impossible or useless.
Major targets for hackers
The transactions are fairer.
Transaction charges might be on the high side.
They lack enough liquidity
Regulations are strictly on the exchange terms.
FORMS OF CRYPTOCURRENCY EXCHANGES ONLINE
1. TRADING CRYPTO EXCHANGES
These are crypto exchanges that connect buyers and sellers and take a fee from each transaction. An example is Remitano.
2. BROKER EXCHANGES
These are websites whereby anyone can visit and buy digital currency available on the website. These platforms can serve both globally and individual countries. An example is Lakebtc.
3. DIRECT TRADING EXCHANGES
These are platforms that offer direct person-to-person trading exchanges. Direct trading exchanges do not have a fixed market price rather, each seller sets its own exchange rate based on the general market price.
An example is Bisq.
THE BEST QUALITIES OF A CRYPTOCURRENCY EXCHANGE WEBSITES
The determining factor of the best Altcoin exchanges differs in diverse ways. The above and the following are the basic things a beginner must look out for before choosing a particular Bitcoin exchange.
And without any particular form of listing, let’s examine them.
10. PRIVACY OPTION
When considering buying bitcoin from exchanges, one important factor you would want to consider is the privacy option you will be offered.
And talking about privacy option, you know that the Blockchain Technology serves best.
More on Blockchain Tech:
9. SERVICE CHARGES
As I considered above, centralized exchanges have a back-end profit in mind. And as such, before a transaction takes place, you want to consider the fees you might be charged.
However, the good thing is that the fee charges are boldly written on their websites, so you want to look at that beforehand.
See an example below – Coinbase exchange.
8. USER & BEGINNER FRIENDLY
Nobody loves complexity. Even the pro traders want a simple interface to trade with.
Just as 80% of the Bitcoin community wants it, a top altcoin exchange platform should be responsive enough for beginners.
According to SearchEngineWatch, 72% of consumers want a friendly site. That is to say, Websites that are not user-friendly annoy users and that is a bad business.
While this is true, realistically, if you are a beginner, you want to go with the top friendly Bitcoin exchanges. And if you are a pro trader, you probably know where to sort yourself out having been in the business for a long time.
7. SWIFT SERVICE DELIVERY
Of course buying bitcoin these days can be challenging at times (mining fee & delivering), mostly if it is in a large quantity.
To this end, the problem at times may not really be on the bitcoin transaction network, but from the exchange end.
The truth is,
While some exchange may take 30minutes before a transfer shows up (on your wallet), others may take (let’s say 5 minutes) for it to show up even though not yet delivered – at least you have seen that there is a Bitcoin Clearing in-progress coming from the Blockchain network.
To mention a few,
LocalBitcoins will tell you that it may take 30 minutes for absolute verification (for your Bitcoin to be delivered), but exchanges like Coinbase, Paxful (just to mention a few) will notify you after some minutes that a transaction is coming in from the network.
So watch out. If you are not in a rush, then it is all fine. Else you might want to use other swifter exchanges or Altcoins for instant deliveries.
Some fast delivering cryptos are Dash, Litecoin, and more. (I have actually used Litecoin -it’s pretty fast).
6. PAYMENT METHODS
When it comes to payment methods, the people always love various ways to transact. And of course, an exchange offering more than one payment method would possibly be the most preferred.
Why is this important?
As you already know, some regions may not be allowed to transact directly with some payment options. When this is the case, the best the user can do is look for other ways to trade.
Just to mention a few, there are so many friendly cryptocurrency exchanges that offer alternative payment methods (3 and above). Some of them are Coinmama, Changelly, LocalBitcoins, Paxful, Coinbase and more.
5. TRANSACTION LIMIT
Transaction limit regulates the maximum amount of cryptocurrencies you can trade with on daily bases.
On Coinbase for example, regular users may only transact up to $1,000 worth of bitcoins per day while fully verified users are open up to $30 – $50,000 per week.
As a user, this might not be a problem at all because all you need to do is, after opening your account, you want to go ahead and verify it in order to grab other great options.
This is what I mean. For an example, if on CEX exchange, if you are not a verified user, you cannot make direct withdrawals using your Credit card. Also, you may be charged more until you upgrade to Level 2 where the charge is almost nothing – 0.1%.
On Luno crypto exchange, if your crypto account is without verification (at least the first tier), you might lose out on some benefits like buying preferred (small/moderate) amount of Cryptos, and as well as more personalized attention from the support.
The interesting Part? When you are a verified user, you can buy as low as $5 Bitcoin or Ethereum.
So, all in all. When you’ve chosen the best crypto exchange to go for, go ahead and verify your identity.
The cool verdict?
It does not take much to be a verified user. All you need to provide is your ID, passport and Billing address.
Who wants it? How To Get Your Account Verified On A Crypto Exchange Website in 5 Minutes – Tactics.
4. LOCAL BANK LINKING
At times, you may feel like using a direct deposit to buy bitcoins for easy trading, and it can be damm frustrating if you don’t see a flexible exchange that offers that.
Just to recommended, two of the top crypto exchange websites I can think of now are Coinbase and Cex.io
Coinbase, for instance, has the option to link your wallet account to bank account locally. So, from your back-end, you can simply link your local bank account for direct trades; any time and any day.
As it stands, going for this option means you have to bear with some add-on charges if only they exist (will be stated).
➡ The New Beginners Guide To Opening, Verifying And Setting Up A Coinbase Crypto Exchange Account In 10 Minutes – Upcoming guide.
3. QUERIES & SOLUTIONS
One of the qualities that makes a great crypto exchange is the ability to communicate with users on social media, forums and other communities.
The truth is that through these communities, users would have been able to solve their questionable challenges- some very minor they can use the exchange site – support page – but they won’t. 😀
But yet, why should the exchange sites devout their time into it? I mean, how many of the crypto users know about relevant crypto communities?
Hmmm, I don’t know whose side I am for now, but, I do know that if some users’ questions can be addressed on these crypto platforms, then it would have been so great. And again, how many users know about these communities? Few I guess. But have got news for you.
I have a solution.
Here is a link to share – with your crypto communities for more awareness.
And talking about crypto exchanges participating as well as solving queries on crypto forums, one of the known exchange taking this up seriously is LocalBitcoins –on r/b/reddit.
Another great exchange is CEX. Cex.io does it better on their website. Based on personal experience, I was even surprised to get a return email from them (reply) – not taking time – probably same day I guess.
Also, going over to her websites. On the help page, you will see the degree of feedback, ratings, and trust level her users have given them.
– using Coinbase as a case study exchange.
Does reputation qualify a crypto exchange as the best? Yes, I think so, but to a certain extent – I will explain.
You know, the only oil people want to be anointed is positivity, right? People love it when they have a swell time using a service.
Surprisingly, one of the biggest negligence of some best crypto exchanges is giving the users a good service. I don’t know why it is that way, but it can be traced to new users they are admitting every day.
If users get the ability to call any exchange help desk at any time, get a response, and more, a user like Cody Brown would not have lost $8,000 after being attacked through phishing.
I do not know (if for a security reason or customers’ service), but, this is what actually happened. Some cryptocurrency exchange websites like Bittrex, Binance, and even BitMEX closed her doors to accepting new customers.
I know one might look at it as a bad process, but yet, why admit 1,000,000 more when you cannot manage the 2,000,000 you have (efficiently)?
This is the concern when you look at an exchange like Coinbase. You keep admitting more customers when the ones you have are not spoon-fed to satisfaction.
At times, what these exchange/broker websites do not know is that service delivery is not just all about Security; I mean, I know, this is very important, but yet, a crypto exchange site like Coinbase has to look beyond the security and funds insurance they offer her customers.
That being said, the hanging question is till;
Does reputation qualify the best crypto exchanges? Yes, it does, but to an extent.
This is why.
If you go on to over 165 interactive crypto communities online, you might find a degree of complaints about Coinbase. Not in any other service area but in customer support. And as it stands, you might not want to use her services at all.
I might lose $10 for sign-ups, but, sorry Coinbase, I value my readers over $10, and, as such, I will tell them the truth.
Full disclaimer: I like Coinbase exchange a lot because of the simple interface and security, and above all, funds insurance (not provided by many crypto sites). But see the truth.
Having gone beyond many bad reviews I found online to use Coinbase, for over years now, I haven’t had any complaint. But that does not mean the other users out there are saying rubbish. Yet, a lot of the reviews you might find are based on emotional feedback.
The interesting part is that some of these users have failed to set up their account the way it should – verification – 2FA, and the rest.
So many users do not recognize the fact that Coinbase has a great self-help page to solve immediate challenges – only to go to certain crypto forum & communities to play black cards about the exchange. Same goes for other exchanges. Users ignore to go through the already solved challenges.
Good and fair enough, if you signup on Coinbase using my ref link, you and I will get $10 on your first $100 transaction, yet, the truth is that I haven’t had a personal problem with it (over the years now). So, I would say do not anticipate a problem.
Forget about my ref link, I am a lot concerned about you – the beginners. This is it.
Coinbase realized this and over the last 4 months, they have been recruiting more workers –supports. More on their website.
The big question?
Proud to work with a top security, insured, and a $1 billion startup – Coinbase exchange? If you sign up using my link, buy at last $100, you will get a free crypto4 wallet, and again, an extra free $10 – yours to preserve in your wallet.
Visit Coinbase – if you want. (not linked, you can ask for it in the comment box if you want).
The most important of it all security.
Now, this is where we know the best of bests crypto exchange.
Since most of the frequently used exchanges are centralized; meaning they’ve got to deal with great security issues in order to protect her users, you want to look out for the security options of certain Bitcoin exchange websites to avoid being screwed up of your bitcoins.
How do you know the best?
First of all, go through the website and see how it is designed, security integration, and what the crypto community is saying about it only in terms of security.
But how does a beginner know all these? See below.
Design – it is simple enough to detect questionable problems.
Integration – do they offer 2FA, cold wallets storage, funds insurance, Business accredited and more.
Community: what security breaches have already been detected?
To help you further, Google this “Crypto exchange sites + security breaches+ hacks”. Just check that out because stats and history easily get hidden.
(Note: I shall write on this soon).
* SECURITY (SUPPORT) COMMUNITY
We’ve already reached the 10 qualities. Just included this for more awareness.
Again, I only excluded this option because a lot of exchanges do not have it. As an old time user of Coinbase exchange, I am a little bit interested not to exclude it, at least to build the confidence of beginners that they can start their crypto journey with a safe crypto exchange.
So, it is worthy to note that Coinbase has a security support community where a lot of programmers and Hackers help to beef up the security.
That is why they are the highest populated crypto exchange – security is at 110%.
Don’t fall their hands, please…
I don’t want to fall the hands of other Cryptocurrency exchange websites that do not have a security support community. Why? They might have pumped in more FUNDS to beef up security than you might think of.
Over to you.
Going for an exchange NOW will be left for you to rate them the way you please? That is a security support community + an internal security exchange, or just an internal security exchange.
However, all in all, know that none of them WANTS to go out of business. So, they will do everything possible to secure your digital coins.
Do you care because I care…
The truth is that while remaining positive & professional is a great way to play along bitcoin, it is the place of major cryptocurrency exchanges to play their part with a double mind such as serving the masses.
With that being said, a website can only be termed the Best Cryptocurrency Exchange/Broker if only they have the above options. Or don’t you think so?
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