Top Crypto-to-Crypto Exchanges
Today, we’re going to show you how to kick your crypto trading up a notch.
Last week, we talked to investors about one of the most important tools that a crypto trader has: the exchanges.
Today we're going to take a second look at digital currency exchanges. But this time, we're only going to focus on crypto-to-crypto exchanges. These exchanges tend to be more technical than fiat currency exchanges. They also won't allow you to buy digital currencies using U.S. dollars (USD) and other fiat currencies.
With that said, if you want to make profits on a wider range of currencies, taking the leap to crypto-to-crypto exchanges is important.
To help you find the right exchange for you, we've broken down four of the top digital currency exchanges on the market.
Our team has looked at all the details, from fees to security. From our list, you'll hopefully be able to better gauge what exchange best fits your trading needs.
Let’s get started...
Binance is one of the fastest-growing crypto-to-crypto exchanges on the market. It's a go-to for many investors because it supports many languages and operates globally. Originally based in China, Binance now operates in Japan to avoid the China crypto ban.
One thing immediately worth noting is that Binance allows investors to use both an “advanced” and a “basic” version of its exchange. Most casual investors won’t need to venture past the basic version. Both versions offer an order book feature. In 2017, the token exchange released Binance Coin. Binance Coin is an ERC20 token that allowed the Binance team to raise $15 million toward continued exchange development. Binance also has an application that can be downloaded on app stores.
Security: Binance allows users to set up two-factor authentication (2FA).
Fees: Binance charges a flat fee of 0.1% for executing trades on its exchanges.
Areas of Operation: Binance operates almost everywhere in the world except for some countries with cryptocurrency bans.
How Many Coins: At the time of writing this, Binance lists 312 tokens.
Challenge Level: Beginner/advanced. Binance’s advanced platform can be a lot for an investor to wrap their head around. But if you stick with the basic interface, Binance should fit the needs of almost every investor.
Conclusion: For traders ready to take on the big leagues, Binance is a great exchange. The exchange offers traders a great degree of flexibility while still providing good customer service. With 312 coins, Binance also offers the most altcoin pairs of any exchange on our list. The only thing to keep in mind is if you're "advanced" enough for the advanced exchange. Basic should suffice for most traders...
To date, Bitfinex is still the largest digital currency exchange by volume. The exchange has the largest Bitcoin exchange platform, which makes up over 10% of the exchange's total trading. Over the course of its history, Bitfinex has been the subject of many hacks, including the world's second-biggest Bitcoin breach. Luckily for Bitfinex customers, the exchange managed to make reprimands by introducing BFX tokens. BFX tokens were introduced to represent customers' stolen equity. Bitfinex used to allow customers to withdraw their funds in USD but ceased this operation in 2017. Bitfinex has slowly moved the funds needed to operate the exchange into other countries, which haven't been disclosed. This has caused some issues with customer transparency.
Security: Bitfinex allows customers to use 2FA.
Fees: Bitfinex fees vary on how much money is being traded. You can see a full list of its exchange fees here.
Areas of Operation: Bitfinex moved its operations out of the U.S. about six months ago. It also operates in other parts of the world that don't have cryptocurrency bans.
Amount of Coins: At the time of writing this, Bitfinex allows users to trade 74 coins.
Challenge Level: Intermediate. The Bitfinex platform isn't terribly complex and offers many of the same functions as other platforms.
Conclusion: Bitfinex is not a favorite of the Token Authority team for a few reasons. Not operating in the U.S. is one of the exchange's shortcomings. Add to that a history of bad security and we have more than enough questions to turn our backs on it. But if you are looking for a simple exchange and are willing to forgive security fumbles, Bitfinex may work for you. With 74 tokens, it's not overwhelming...
Founded in 2013, Bittrex is a U.S.-based cryptocurrency exchange headquartered in Seattle. The company was founded by Bill Shihara and a few of his business partners, all of whom have histories in cybersecurity. With this kind of background, it comes as no surprise that Bittrex is currently one of the largest exchanges by trading volume. Beyond that, the exchange is known for having a huge range of digital tokens. Bittrex has also stated that it's dedicated to continued compliance.
Bittrex closed its doors in 2017 to new users in order to improve its existing platform. It briefly opened its doors again on April 10, 2018, only to close them again after it experienced a massive surge in volume. Today, Bittrex openly sets up new accounts.
Security: Bittrex allows users to set up 2FA. Beyond this, Bittrex has some of the best security measures on the market.
Fees: All trades on Bittrex have a 0.25% commission.
Areas of Operation: Bittrex operates all over the world, except for Iran, Syria, North Korea, and Crimea.
Amount of Coins: At the time of writing this, Bittrex allows users to trade 275 coins.
Challenge Level: Intermediate. Bittrex's platform offers users the same level of challenge as Binance.
Conclusion: Overall, Bittrex is a great exchange for users who want a lot of security while also still being able to trade a wide range of coins. The only downside to the exchange over the past year has been its frequent closures, which don't exactly fill new users with a sense of certainty. That being said, with a central base in the U.S., Bittrex may be the exchange that's best equipped to meet the news of the U.S. market...
Poloniex is another U.S.-based cryptocurrency exchange. Founded in 2014, the company has quickly climbed to be one of the most popular digital currency exchanges in the world. It ranks as the 14th biggest digital currency exchange in 2018. Poloniex allows users to trade just under a 100 tokens, which is a bit lower than the other exchanges mention on this list but is still impressive.
Beyond that, Poloniex has a fairly easy user interface. Over the past few years, Poloniex has survived a daring hacker attack, which cost it 12.3% of its bitcoins. In 2018, Poloniex was acquired by multi-currency money-sending application Circle. Investors should be aware of this when using the Poloniex exchange. To date, the acquisition has not changed exchange's operation.
Security: Poloniex allows investors to set up 2FA.
Fees: Poloniex will update its fees on May 20th. You can find more information on those fees here.
Areas of Operation: Currently in the U.S., Poloniex operates in every state except New Hampshire, New York, and Washington. Globally, operations depend on state regulations.
Amount of Coins: You can buy 99 tokens on Poloniex.
Challenge Level: Beginner.
Conclusion: Although Poloniex isn't one of our top two exchanges, we do like it for its user-friendly interface. With just under 100 tokens, Poloniex might not be the best exchange for adventurous traders. But it works well for traders who don't want to venture too far down the rabbit hole.
Well, that wraps up our second digital currency exchange review. If you missed our fiat-to-crypto exchange review, you can find it here.
Once you select a good fiat-to-crypto platform and a good crypto-to-crypto platform, you should be ready to trade with confidence.
And keep an eye on your inbox for your Thursday digital currency news update.
@AlexandraPerryC on Twitter
Alexandra Perry is the managing editor of Token Authority and the associate editor of Technology and Opportunity. She also contributes weekly content to Wealth Daily, a free investment research newsletter that addresses a range of market topics. She has multiple years of experience working with startup companies, primarily focusing on artificial intelligence, cybersecurity, alternative energy, and biotech. Her take on investing is simple: a new age of investor can make monumental returns by investing in emerging industries and foundational startup ventures.
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