Each user has unique needs, so there is no one size fits all for exchanges.
Our Bitcoin and cryptocurrency exchange reviews detail each exchange's supported countries, payment methods accepted, fees, privacy, limits, liquidity, reputation, speed (delivery of bitcoin), customer support, and any past issues.
Coinbase Popular Buy Crypto Read Review
Coinbase is the world's largest Bitcoin (BTC) broker. They represent an easy and fast way for new users to purchase bitcoins, ethereum, litecoin and many other coins. Coinbase supports customers in over 30 countries, including the United States, Europe (besides Germany), UK, Singapore, Canada, and Australia.
Customers in the above-mentioned countries can purchase cryptocurrency by debit card, bank transfer, SEPA transfer, and more.
- High liquidity and buying limits
- Easy way for newcomers to get bitcoins
- "Instant Buy" option available with debit card
- Purchases made with bank transfer can take up to 5 days to complete
- Coinbase may track how and where you spend your bitcoins
Coinmama Popular Buy Crypto Read Review
Coinmama allows customers in almost every country to buy bitcoins, litecoins, ethereum and many other coins with a credit or debit card. They charge an ~6% fee on each purchase.
Customers in Europe can also purchase cryptocurrency with SEPA transfer for a lower fee.
Want to buy using Coinmama? This step-by-step guide will show you how to use Coinmama.
- Works in almost all countries
- Highest limits for buying bitcoins with a credit card
- Reliable and trusted broker
- Some of the highest fees among credit/debit card bitcoin brokers
Luno Popular Buy Crypto
Luno is a Bitcoin and ethereum exchange based in Singapore. It originally launched to support countries like South Africa and Indonesia, but recently expanded to Europe and supports the purchase of bitcoin and ether through credit, SEPA transfer, SOFORT and iDEAL.
- Trusted exchange that has been around for a long time
- Free deposits and low withdrawal fees
- Users should not store bitcoins in Luno's wallet service
5 Best Pure Cryptocurrency & Altcoin Exchanges
These are exchanges that require you to deposit cryptocurrency to start trading. Usually, this means depositing bitcoin (BTC) or ether (ETH).
Here is a quick comparison before we go into more detail on each exchange:
|Fees||Holds Funds||Based In||Founded|
Binance - World's Largest Exchange
Binance is a cryptocurrency exchange based in Malta. It has very low fees at just 0.05% per trade.
It supports lots of coins and has its site available in multiple languages, such as Chinese, English, Korean, Spanish, Japanese, Russian and French.
Once you purchase Litecoin, Bitcoin or Ethereum you can use Binance to convert one of those three coins into nearly any altcoin.
Binance has become popular for a few reasons:
1. It has the most volume of all cryptocurrency exchanges.
This means it's very easy to go in and out of coins at a good price. Most coins have deep markets, making Binance ideal for both big and small buyers and traders.
2. The Binance Mobile Apps
Binance has, by far, the best cryptocurrency exchange app. Binance's app is available for both iOS and Android. It's very easy to use and my be one of the most well designed applications I've ever seen.
Here is what the Binance mobile app looks like:
Changelly - Swap Coins Securely
Changelly is a unique exchange in that you don’t actually need to deposit coins.
You simply tell Changelly which coin you want to buy, and how much of it you want to buy. Changelly will then tell you how much of the coin you are buying with to send.
The whole process is very fast and convenient. If the crypto markets are moving fast, Changelly is a super fast way to exchange since you do not need to wait for your deposit to clear. You can lock in your rate and simply wait for your exchange to go through.
Bittrex is one of the world's largest 10 cryptocurrency exchanges. It supports a bunch of coins that other exchanges support. It generally has good volume across all its pairs, making it ideal for both large and small buyers and sellers.
Bittrex recently launched a new interface, after nearly three years using the same design.
Poloniex used to be the largest cryptocurrency exchange, but lost a lot of users when it had trouble scaling to support a surge of new signups.
The likely path for Poloniex is that is becomes a cutting edge exchange as money from Goldman Sachs and Circle start going towards improving the exchange.
Best Cryptocurrency Wallets for 2019
The main thing to know when you're trading cryptocurrency is:
Do NOT get comfortable leaving your cryptocurrency on an exchange. Ideally you should deposit on an exchange, make your trade, and then withdrawal the coins.
If you can't do that, at least assume that there is a good chance your account will get hacked.
A cryptocurrency exchanged called Coincheck was hacked for $500 million as recently as January 2018.
Your best option is to store your coins on a hardware wallet like the Ledger Nano X. The Nano X supports the most coins out of any of the other hardware wallets.
If you can't buy a Nano S, Exodus wallet is a solid desktop wallet that supports a lot of coins. The main issue with Exodus is that it is not open source.
Best Cryptocurrency Exchange for Beginners
The best fiat cryptocurrency exchange for beginners is probably Coinbase. I say this for a few reasons:
- It has the best user interface and is very easy to use
- The verification process is fast you can buy almost instantly
- It has excellent mobile apps for iPhone and Android
- It's a regulated exchange and FDIC insured
The best pure cryptocurrency exchange for beginners is probably Binance. The main reasons are:
- Binance's mobile apps make it easy to use for beginners
- Binance's web interface is quite simple to use as well
- You can start trading instantly on Binance with just an email address
- Binance is the world's largest exchange according to CoinMarketCap
If you're still unsure, this video goes deep into which exchange might be best for you:
What Kind of Exchange do You Need?
There are two types of cryptocurrency exchanges:
The first type is called a "fiat exchange".
Fiat exchanges allow you to buy cryptocurrency with fiat money (dollars, euros, pounds, etc.).
A fiat exchange lets you use traditional payment methods to buy cryptocurrency, like:
- credit card
- bank account
Fiat exchanges are how most people make their entry into cryptocurrency exchanges. If you're new you'll definitely need to use a fiat exchange, so keep following along.
The second type of exchange is called a "pure cryptocurrency exchange" or "altcoin exchange". These exchanges don't deal with traditional payment methods like credit cards and banks.
Instead, altcoin exchanges require that you deposit cryptocurrency FIRST and then you can trade the cryptocurrency you deposited for other coins and altcoins (any coin other than bitcoin).
Fiat Exchanges vs Pure Cryptocurrency Exchanges
So, to explain the difference and why you need both, let's look at a coin called Ripple (XRP).
Ripple is currently the third largest cryptocurrency by market cap.
Most Americans use a platform called Coinbase to buy cryptocurrency, but Coinbase doesn't sell Ripple.
So how do you get Ripple then?
You must first use Coinbase--your fiat exchange--to buy bitcoin with your bank or credit card. Once you've purchased bitcoin, you need to send to a pure cryptocurrency exchange, like Binance.
We hope that clears things up, and now we can start digging in to some exchanges.
Best Cryptocurrency Exchange for Day Trading
I realize I've mentioned Binance a bunch already, but it's also likely the best exchange for day trading for a few reasons.
1. Lowest Fees
Day traders make a lot of trades, and Binance has the lowest fees among all exchanges (like Bittrex, Poloniex, etc.).
Binance has the most liquidity of any exchange. You can get in and out of coins fast at good prices.
Which Cryptocurrency Exchange has the Lowest Fees?
Among pure crypto exchanges, Binance has the lowest fees.
For exchanges that deal with credit cards and bank transfers, Coinbase (broker), GDAX (exchange) and Bitpanda (broker) have the lowest fees.
What should you look for in an exchange?
How much personal information does the exchange require? Do you need to upload a picture of your ID?
How much can you buy? If you plan on buying a large amount, does the exchange support this much in exchange?
There are also sometimes withdrawal limits on exchanges that limit how much you can withdraw at once. This can be annoying since if you deal with large amounts you will have to withdraw small amounts over a few days.
OTC markets are available for buying large amounts of Bitcoin, but these markets are yet to appear for other coins for now.
How much does the exchange charge for converting your money? And how does this fee compare to other similar exchanges?
The average fee for credit card buys are about 4%. Bank transfer buying fees are usually 1-1.5%. Compare the rates of any exchange to other similar exchanges.
Cash fees are usually 1%, although there is often a 5-10% premium. This is especially true at ATMs, where there is always a premium.
How fast will your coins be delivered? Note that most problems with speed are due to the legacy banking system and not with cryptocurrency.
Credit card buys are often instant. Bank transfer buys can take days to clear. Cash buys are instant but you have to physically move and can’t do it online.
How long has the exchange been around? Is it regulated? Many exchanges have been scams in the past, so research any exchange before you deposit money with them.
How to Buy Cryptocurrency on Robinhood
Robinhood was a popular stock trading app that recently launched cryptocurrency trading. However, the app only supports four states as of now:
How to Buy Cryptocurrency with USD
Coinbase - Good for Beginners
Coinbase is probably the easiest way to buy cryptocurrency with USD. Americans can easily buy crypto with a credit card, debit card or bank transfer (ACH).
Americans can also wire Coinbase USD if they want to buy larger amounts.
How to Buy the Cryptocurrency Ripple
We have a detailed guide on how to buy Ripple cryptocurrency. There are many different ways to buy, but in most cases you need to buy bitcoins or ether and then convert it into XRP.
Best App to Buy Cryptocurrency
There are some excellent apps in the iOS and Android stores that allow you to easily buy crypto.
Buy Cryptocurrency with PayPal
There is no easy way to buy cryptocurrency with PayPal. You will first have to buy bitcoin with PayPal and then you can use the bitcoins to trade for other coins on a crypto-to-crypto exchange.
How to Check Cryptocurrency Exchange Rates
CoinMarketCap is the most popular way to check cryptocurrency exchange rates.
If you want to see charts, CryptoWatch has an excellent and easy to use interface for checking prices and charting.
What are the different types of exchanges?
The main difference in the crypto exchanges is that some require you to deposit money, while some “instant exchange” your money.
If you have to make a deposit, then you are at much bigger risk of losing money than if you use something like Changelly where there is only a small window of time before your exchange goes through.
The main benefit to using an exchange like Changelly is that if the exchange scammed someone, it would be announced soon and all deposits would stop going into Changelly.
With deposit exchanges, they have lots of customer funds stored and can exit scam at almost any time. We are not saying that all deposit exchanges are scams, but simply that there is more risk when you use this type of exchange.
What is important to look for in a cryptocurrency exchange?
Check if the exchange is regulated. If it has a history of hacks, be careful!
Check if the exchange has good customer support and is responsive to support requests. Most exchanges that have good support will respond to you in less than 24 hours. Especially with prices down, support times should be FAST!
Check if the exchange has been around for a good amount of time and has built a solid reputation. BTC-e is one of the oldest exchanges. Its owner are anonymous, but it is one of the most trusted exchanges because it has good support, has never been hacked, and has never run away with customer money. That could change at anytime, obviously.
What are the risks to be careful of with these exchanges?
As mentioned earlier, NEVER STORE YOUR COINS ON AN EXCHANGE! If you do not have the private keys to your coins, they are not yours. Simple as that.
Make sure you get a secure crypto wallet and use that to store your coins. Hardware wallets cost money but if you are serious about secure storage of your coins they are simply a must have. We hate to see people lose money in crypto! Take responsibility.
More Exchange Reviews
While we don't have a dedicated page for every exchange, the section below will give you more details on other popular exchanges
It's a licensed Bitcoin exchange and operates in 42 US states and many other countries (check here for full list of supported districts):
Once you create an account on the exchange you will need to setup 2-factor authentication, verify your bank account, and verify your identity. Once you do all of that you can get started with the exchange.
Gemini's interface can be confusing for first time buyers, which is why we usually recommend Coinbase to new buyers. Have a look at the trading interface below:
If you can get past understanding how to use Gemini it is a unique exchange. Some of its great features include:
Instant Deposit for ACH Transfers
At most exchanges, when you deposit via bank transfer you have to wait 1-7 days for the bank transfer to complete. Gemini understands this is frustrating and time consuming.
Luckily for US users, you can make instant ACH deposits to Gemini. This means you can buy bitcoins super fast. You will have the bitcoins you bought locked into your account until your ACH deposit clears, but at least this way you were able to buy bitcoin fast and lock in the price you wanted!
If you live in Europe, don't worry!
Kraken offers excellent liquidity as its average daily volume is around 10-12 million euros. So if you want to buy large amounts of bitcoins, Kraken is a good option.
Like all regulated exchanges, you will have to verify your identity and personal details before buying.
Here are Kraken's limits based on your verification level:
So in order to deposit money and buy bitcoins, you will need to verify your:
- Full name
- Date of birth
- Country of residence
- Phone number
- Address verification
There are further verification levels, but most people will only need Tier 2 to buy bitcoins.
User and Trading Interface
Like other exchanges geared towards traders, its interface can be quite confusing. Kraken, however, has aimed to make things easier for first-time buyers and its "Simple" order form is pretty easy to use:
Kraken's fees are quite confusing. So to keep it simple we will summarize:
If you are buying less than $50,000 of bitcoins per month expect to pay between 0.16-0.26% in fees per buy.
If you use the "Simple" order form is displayed above you will pay 0.26%. If you want to learn how to use Kraken's advanced order types you can pay just 0.16% if you become a "market maker".
Bitstamp is one of the longer running Bitcoin exchanges. It has been around since 2011 and is a licensed exchange with the Luxembourg's Ministry of Finance
It is a good option for traders and those buying large amounts of bitcoins.
Bitstamp requires extensive verification including the following information:
- Full name
- Date of birth
- Country of residence
- Phone number
- Address verification
- ID number and scan of photo ID document
Because Bitstamp is geared towards traders, it also has confusing fees if you use the exchange. The fees you pay depend on your total volume. Unless you trade high volumes, you will likely pay 0.25% per buy.
If you buy bitcoins on Bitstamp with your credit card then the fees will be 8% for purchases up to $500 or €500. There are other exchanges that offer lower fees for buying bitcoins with a credit card or debit card.
Bitfinex is a popular exchange because in terms of USD trading volume it has the most liquidity. It currently owns about a 10% share of the USD trading market.
Because of its confusing interface, it's probably only a good choice for traders who really know what they are doing. Here is what the main trading interface looks like:
Despite getting hacked and losing $70 million or more in customer funds, Bitfinex remains a popular option for serious traders. Still, the hack is scaring some people away.
In the chart below, the orange portion of the bars represent Bitfinex's share of USD volume:
One thing that has made Bitfinex popular is that if you only make a deposit with cryptocurrency no verification is required. If you want to deposit dollars or euro then you WILL have to verify your ID.
Bitfinex offers very low fees even for low volume buyers, at 0.1% per buy for market makers and 0.2% per buy for market takers.
Wall of Coins Review
How Does Wall of Coins Work?
Wall of Coins helps its customers buy and sell bitcoins for cash.
Its unique SMS system walks you through the entire process of buying, making it a good choice for first time buyers who want to purchase bitcoins with cash.
Payment Methods Accepted
Sellers are free to accept any payment method through Wall of Coins. Buyers will have to check the orderbook to see what payment methods are available. The most common payment method is cash deposit.
A cash deposit is when the buyer of bitcoins goes to a physical bank branch and deposits cash into the account of the Bitcoin seller
Wall of Coins vs Other Cash Exchanges
Cash is the most popular payment method on Wall of Coins. This table compares it so some other cash exchanges.
|Exchange||Fees ||ID Required ||Countries|
|Wall of Coins||~1%||No||12 Countries|
Wall of Coins is currently available in:
- United States
- United Kingdom
There are no official buying limits on wall of coins. The maximum amount you can buy is determined by the available offers by sellers.
- No official buying limits set by Wall of Coins
- Can buy as little as $5 worth of bitcoins
- Most sellers are not willing to sell large amounts of bitcoins
A phone number is the only personal information required to buy bitcoins on Wall of Coins.
Wall of Coins will ask you for location, but only to find bank branches near you. If you choose you can just enter your zip code manually.
Purchases made with cash deposit will in most cases have bitcoins delivered in under an hour.
- Coins are generally delivered within 15 minutes after confirmation of payment by buyer
- Speed of delivery is entirely dependent on seller confirming payment, so at times it can take a while (although it is generally within 15 minutes)
Wall of Coins’ owners are public and contact information is available on the exchange’s website.
You can also visit its about page.
- Fees are generally pretty low, about 1-2%
- Fees are not displayed publically but instead just included in the buy price
Wall of Coins offers live support on its website. A toll free number is available for support via phone: (866 841 COIN).
You’ll also receive directions on how to buy bitcoins via SMS after signing up.
- Wall of Coins has a live chat box on their site ready to help with any problems that may occur during the buying process
Payment Methods Accepted
|Payment Method||Funds Available||Currencies||Fees|
|Wire Transfer||1 day||USD||None|
Traders can funds accounts via wire transfer. itBit charges no deposit fees. Fees charged by your bank may apply.
itBit supports customers around the globe in most countries. Texas is the only U.S. state not supported.
Limits & Liquidity
itBit provides two services: a global Bitcoin exchange and an OTC trading desk. Neither service limits the amount of bitcoins that can be traded assuming proper verification has been submitted.
itBit’s OTC trading desk trades between 15,000 - 25,000 XBT per month. The average OTC trade size is around ~350 bitcoins and made at or below spot price.
More information on itBit’s OTC trading can be found here.
U.S. residents can complete identity verification using itBit’s Knowledge Based Authentication, which does not require ID scans.
Users outside the United States must provide ID scans and proof of residence documents.
International accounts may take 1-3 days to become verified. US customers may be able to verify faster using itBit’s knowledge-based authentication system.
Deposits made via wire transfer can take anywhere from 1-3 days to arrive depending on your bank.
Purchases can be made instantly once an account has been verified and successfully funded.
itBit was the first Bitcoin exchange to receive a charter from the New York State Department of Financial Services. The charter gives it the ability to operate legally in all 50 U.S. states. As a licensed exchange, itBit is audited regularly and follows all consumer protection laws.
itBit charges just a 0.2% taker fee on its global exchange.
A flat 0.1% fee is charged on the OTC trading desk, but trades are often executed at or below spot price.
itBit offers global phone support 24 hours a day, Monday through Friday. Its US office can be reached at (855)-997-2994.
Support is also available through email at [email protected] or via Whatsapp at (+65) 8428 3877.
For Residents of India: Best Bitcoin Exchange Reviews
The following section reviews and shows you how to use the top three Indian Bitcoin exchanges.
Firstly you need to login to https://www.unocoin.com , then you need to enter the existing email id and password of your choice followed by clicking on the SIGN UP option to create an account.
After clicking on the SIGN UP option, you get this dialogue box stating that the Registration Process is in progress after which unocoin will send you an activation link on your registered email id. You have to login to your email id and click on the link to activate the account.
Now you need to login with your email id and password used at the time of sign up.
After Logging in you will see this page, if you look at it carefully you will observe that in the status bar it shows that your account is unverified. In order to verify your account, you need to upload your id proof and bank account details, so now you will click on EDIT PROFILE
After clicking on the Edit Profile option, a new page will open up in which you have to enter all your details such as Name on account, Account Number, IFSC code, Mobile Number, Full Address as mentioned on your ID proof, State, City, Pin Code etc. After filling in all your details, click next.
Following are the Guidelines for Document which you have to upload after clicking next.
Here you need to upload the document for verification and then click next
After clicking on next, you will be shown your profile information, you need to check the details and click on ‘Save Document’ button present at the bottom right corner.
After that you will be redirected to the same page where you had to enter all your details as unocoin needs time to verify your details and document and to make your status verified. So now you need to wait for the intimation or status to change from unverified to verified to buy and sell bitcoin.
For buying bitcoin, firstly user needs to deposit money into unocoin wallet and for doing so we need to Make NEFT/IMPS/RTGS in there respected bank account. Minimum amount to deposit is 1000 INR which is approximately $15.
To do any of these bank transfers user needs to have his/her bank account linked with a Cell phone, as prior to initiating the transfer bank will send OTP (One Time Password) which is required to be entered for the transaction to go through. To maintain security this OTP is valid only for a few minutes and if transaction does not go through in stipulated time, there will be a timeout and user will have to generate a new OTP to initiate the transfer.
You will get the bank information at this stage where you can send your bank wire/deposit.
After the money is deposited in their account user must contact their customer service number and provide details of the transaction and then money is added to your wallet on their website. Once that is done then user can start process of buying and selling bitcoins.
Coinsecure Review and User Guide
Firstly you need to open https://www.coinsecure.in , you will get this page and if you see there is a SIGN UP option on the bottom left side, you have to click on it.
After Clicking on the Sign Up option you will get a form in which you need to enter your new username, new password, repeat password, existing email id and tick mark on accept terms and then click on arrow sign in orange color to proceed further
As soon as you click on the arrow sign in orange circle you will get 2 pop-up on the same page one saying to SIGN UP and the second saying to click on the link send to your email account to verify your email id for signup.
Now you need to open you email account and click on the link you received, a new tab will open up and show you an option to sign in with your user id and password used at the time of sign up. As soon as you enter the username and password and click login, you will see this type of dashboard in front of your screen. Here you have to complete your KYC (Know Your Customer) and Bank information to start buying and selling Bitcoin. Now you will see the following line “Would you like to complete your KYC & Bank Link? “ , below it click on the start button to proceed.
After clicking on the start button, a new screen will appear in which you will be asked to enter your Full Name, Nick Name, Account Number, IFSC code & Phone Number. After entering all thedetails you need to click on SEND NEW SMS CODE.
After clicking SEND NEW SMS CODE button you will receive an OTP (One Time Password) on your registered mobile number mentioned in the above details. You need to enter OTP and click on SUBMIT.
After clicking on Submit, a Welcome page will open up and on the right side a dialogue box will appear stating success and below which it will be mentioned that we will mail you with the status as soon as we complete the verification.
Now you need to go to your dashboard, here you will see that you have received a message stating that your data has been uploaded for verification and below that with a star mark it is written “ This can take upto 48 hours to complete “.
After your verification is completed, on your dashboard you will see 2 dialogue box one to buy bitcoin and another for selling bitcoin at the current rate. Here you need to enter the quantity in any of the box depending whether you want to buy or sell and then click buy or sell.
User needs to deposit INR into any of their bank accounts mentioned below through bank transfers like: RTGS (Real Time Gross Settlement) /IMPS (Intermediary Payment System) / NEFT (National Electronic Fund Transfer)
To do any of these bank transfers user needs to have his/her bank account linked with a Cell phone, as prior to initiating the transfer bank will send OTP (One Time Password) which is required to be entered for the transaction to go through. To maintain security this OTP is valid only for a few minutes and if transaction does not go through in stipulated time, there will be a timeout and user will have to generate a new OTP to initiate the transfer.
You will receive Coinsecure's bank information at this stage. You can send your deposit via NEFT / RTGS / IMPS.
User receives a Transaction ID after deposit INR via NEFT / RTGS / IMPS. User will have to fill the details (like Transacton ID and Amount Deposited) into his Coinsecure account by going through the following:
'Bank' > 'Fiat Currency Balance' > 'Deposit'. (This is a one-time process). After depositing money the amount will be reflected in our coinsecure account and then only we can buy or sell bitcoins.
BitMEX is an international cryptocurrency exchange that was launched in 2014 by HDR Global Trading Ltd. (Arthur Hayes, Samuel Reed & Ben Delo). This particular platform is cryptocurrency only, meaning that deposits and withdrawals via fiat wire transfers are not allowed – i.e. Bitcoin in-Bitcoin out only.
BitMEX offers margin trading, with leverage up to 100x on Bitcoin on the spot and futures markets. Leverage on altcoins varies and for now Bitcoin is the only cryptocurrency that offers the full 100x, with Ethereum offering up to 50x and Litecoin up to 33.3x (It is important to exercise caution with respect to current market volatility).
Crypto Asset Offerings
BitMEX has limited selection at present in comparison to other cryptocurrency exchange alternatives such as Poloniex, Bittrex and Cryptopia. While new projects are added occasionally the volume thus far has remained low on every offering except for Bitcoin.
- Bitcoin – Spot + Futures
- Bitcoin/Yen – Futures
- Binary – Futures
- Dash – Futures
- Ethereum – Futures
- Ethereum Classic – Futures
- Litecoin – Futures
- Qtum – Futures
- Monero – Futures
- Ripple – Futures
- Tezos – Futures
- Zcash – Futures
As of September 9th, 2017 BitMEX’s liquidity for both the Bitcoin spot and futures markets is respectable and has continued to grow since inception. What is lacking however is the volume on every other cryptocurrency traded on Bitmex. Slippage (degree of price movement when entering & exiting a position) is so drastic on some of the pairs as to render shorter term trades or large entry’s & exits as unfeasible.
The Bottom Line – For now BitMEX only has adequate liquidity on Bitcoin trading. If you want to actively trade altcoins with minimal slippage then for now this exchange is less than ideal.
One of BitMEX’s strength is its focus on security. To date there have been no hacks or major security breaches and the withdrawals are processed by hand once a day for an added layer of security.
Additionally, the trading platform is written in kdb+, a database and toolset used frequently by major banks in high-frequency trading applications. The BitMEX engine has unprecedented speed and reliability, something that is a notable difference in comparison to some of the less polished platforms like Poloniex and Bittrex.
Generally speaking, many cryptocurrency exchanges today have sub-par interfaces (think webpages circa 2005). Some examples of poor UI that stand out in the space are Poloniex and Bittrex, which both command extremely high levels of volume in the altcoin markets. For what BitMEX lacks in overall volume, it makes up for in UI.
The mobile implementation is full featured and the desktop page blends usability with simplicity. For those who have experience with trading there is an ‘advanced UI’ feature that can be activated to make use of all of the platforms features, including an aesthetically pleasing ‘night-mode’.
BitMEX is one of the few exchanges in the space to have built-in full featured TradingView charting. This offers a wide range of charting tools and is a vast improvement on the offerings by some of the current competitors.
Deposit & Withdrawals
Bitmex (for now) _ONLY accepts Bitcoin deposits and withdrawals. Deposits can be made 24/7 but withdrawals are processed by hand at a recurring time once per day. The hand processed withdrawals increases the security of your funds by providing extra time (and email notice) to cancel any fraudulent withdrawal requests, in addition to bypassing the use of automated systems & hot wallets which may be more prone to compromise.
The founder & CEO of BitMEX puts out a weekly ‘Crypto Trader Digest’, the repository to which can be found here - https://blog.bitmex.com/. Arthur has been an active member in the cryptocurrency community since 2013 and often has interesting & unique insights on the ever-turbulent cryptocurrency market events. As a free to view offering this is a useful resource for any avid cryptocurrency trader.
Caveats/ Points of Caution
As with most exchanges in the cryptocurrency space, especially those that trade solely crypto assets and do not interact with USD (and thus do not fall under the same regulatory oversight) have their risks. Due diligence such as reading the terms of service is advised before signing up with any exchange. It is also important to remember to not trust unregulated and uninsured exchanges with large amounts of capital.
If you are looking to trade Bitcoin spot and futures markets with up to 100x margin, this might be the platform for you. Liquidity is high and the UI is laudable in comparison to most of the current competition. Management takes a security-centric focus which is a must in the crypto space.
Bitcoin Trading Guide
To the uninitiated, Bitcoin trading probably sounds like this:
A dream job, reserved for the fortunate few who trade Bitcoin from home, set their own hours and perform nothing more strenuous than clicking a mouse or watching a screen.
The harsh reality?
The overwhelming majority of new traders lose money and quit within a year. All those washouts likely thought themselves future members of that exceptional minority of traders who achieve consistent profitability.
Why is trading such a difficult endeavour?
Due to the intrinsic unpredictability of markets.
The human mind, which excels at pattern recognition, struggles with random outcomes.
Trading is emotionally-taxing, involving long hours of boredom interspersed with periods of intense stress.
Finally, as traders risk their own capital in an endless zero-sum game, trading is an occupation which bears close resemblance to professional gambling. Those looking to take part in short term trading may find that the rewards of a Bitcoin casino (see TheBitcoinStrip) are far more fulfilling.
Even successful traders frequently succumb to burn-out due to the pressures involved.
Except in the marketing of trading courses, products or services, trading Bitcoin is no glamorous road to easy riches. Rather it is an activity demanding great patience, control and discipline. New traders are likely to lose money as they develop their skills and achieving consistent profitability is never guaranteed, even for the most experienced Bitcoin trader.
Trading Bitcoin vs. Bitcoin Investing
This article discusses the active trading of Bitcoin as an (additional) occupation or supplementary income source. Trading Bitcoin is similar but distinct from investing in Bitcoin.
An investment in Bitcoin is a long-term undertaking, often with multiple goals such as portfolio diversification, fiat risk hedging, business or ideological objectives, etc. Bitcoin investors are generally insensitive to price volatility and unlikely to exit their positions, barring some dire eventuality.
By contrast, most Bitcoin traders maintain only short-term positions, staying in a trade for a maximum of a few months – but often for no more than a few hours. Bitcoin traders are also extremely price-sensitive, striving for perfect entry and exit prices and abandoning their positions immediately if they prove unprofitable.
Bitcoin Trading Advantages
For trading purposes, Bitcoin is superior to other instruments, such as stocks, commodities or Forex, for at least 3 reasons:
1) Bitcoin’s exceptional volatility allows for high percentage profits without leveraging.
Large price moves, the average trader’s bread and butter, are far more common in Bitcoin than almost any other instrument. Therefore, Bitcoin traders may eschew the increased risk and expense of leverage strategies designed to extract high profits from small moves.
2) Bitcoin trades non-stop; 24 hours a day, 7 days a week.
By contrast, stocks and commodities only trade during business hours and Forex markets shut over the weekend. Trade in Bitcoin remains active around the clock as volume is distributed primarily across American, European and Asian sessions.
3) Bitcoin is probably the cheapest, quickest and most convenient instrument to trade.
Bitcoin exchange fees are minimal compared to traditional exchanges and Bitcoin deposits or withdrawals are accomplished within hours from anywhere in the world. Less stringent requirements for personal information are the norm for Bitcoin exchanges, particularly if deposits and withdrawals are handled exclusively in Bitcoin.
Ways to Trade Bitcoin
Short-term traders rely on real-time data feeds and liquid markets to enable rapid entry to and exit from trades. Sophisticated, high-volume exchanges are preferred, if not required. To be considered a suitable trading venue, an exchange must allow traders to profit from downward price moves by offering the capacity to short sell.
The necessity of holding funds in cryptocurrency and fiat form dictates that “trader exchanges” be centralised services, although this may change with the advent of next-generation decentralised exchanges. Whenever funds are held by a third party, there is custodial risk) – so choose your exchange wisely.
Prefer those exchanges which offer proof of reserves for client Bitcoins, regular external audits for client fiat funds and have a long history of secure, ethical operation. For convenient trading, select an exchange which also offers decent volume and a real-time, responsive trading interface.
Frequently recommended to Western traders are Bitcoin exchanges such as:
Fear and Greed
For all their technological sophistication, markets are driven by these primal human emotions.
To become a successful Bitcoin trader, it’s necessary for an individual to manage these responses appropriately. Great opportunities present when the market becomes irrational due to an abundance of fear or greed. This frequently occurs following major price movements or dramatic news. At such times, weaker traders are overwhelmed by emotion and misprice their trades.
Market chatter can provide insights into the market’s current mood but by following it too closely you risk becoming infected by market hysteria. Excitable market participants will shout “pump!” and “moon!” or “dump!” and “doom!” with every $10 price move up or down. Some traders will support whichever direction favours their pocketbook as if cheering their favourite sport team. And the media and public figures can be just as irrational. Strive to stay objective when taking the market’s emotional pulse.
Smart investors build long positions when price is flat and public interest is low during the stealth phase. Traders aim to open long position in the troughs (bear trap, bull trap and despair) and open short positions at each peak (first sell off, “new paradigm,” and return to “normal”). Traders thus attempt to profit from every phase of the cycle; a lot harder but also far more profitable if achieved.
Perhaps the most important element of trading is capital preservation. Before undertaking to trade Bitcoin, consider how much money you can afford to lose before your current lifestyle becomes unaffordable. This will allow you to better determine your “pain point,” or how much wealth you’re willing to risk losing. Never commit any more than this sum to your trading account.
Of this trading capital, never risk more than 5% on a single trade. Neophyte traders should not risk more than 1%. If your trading is successful, the size of each trade in absolute terms steadily grows as your trading account swells. If unsuccessful, at least losses are kept to a minimum, which allows time to adjust your trading plan.
Profit Targets and Stop-Losses
Initiating a trade without a clear exit strategy is a recipe for disaster. Determine beforehand the price at which you’ll cut your losses if the market moves contrary to expectations. This level is known as a stop-loss and it’s critical to market survival. Limit your losses below 25% of your position size. A stop-loss is wisely placed on the other side of a level at which price has reversed previously, the more times the better.
The converse of a stop loss is the profit target; the level(s) at which profit is taken when price behaves as expected. Profit targets are best-placed slightly before previously significant levels. If price exceeds your expectations by penetrating significant previous levels and maintaining a strong trend thereafter, consider substituting your target(s) for a trailing stop ; this acts as a ratchet on your profits.
Finally, know your breakeven point; the price at which you can exit a trade without incurring any loss due to trading fees. If you enter a trade only for the market to meander sideways, consider exiting at breakeven rather than wasting time and energy on monitoring a flat market.
Exercising discipline in regards stop-losses and targets is the best way to manage greed and fear. Placing stop loss and profit target orders immediately after entering each trade is a good habit to acquire.
Risk / Reward Ratio
Consider that setting a stop-loss of negative 25% in combination with a profit target of positive 50% affords a risk / reward ratio of 1:2. Adhering to this methodology, one good trade compensates for two bad ones. It’s fair to assume that a trader’s odds of success are roughly even on each trade. Therefore, selecting only trades which will potentially satisfy a 1:2 (or better!) ratio should ensure consistent profitability over time. Of course, markets are seldom predictable. Their randomness means that consecutive losses should be anticipated and guarded against through proper position sizing.
Timeframes Define Bitcoin Traders
The various types of Bitcoin traders are primarily distinguished by the timeframes they employ. Only consider a trader’s market view with reference to their timeframe context:
Bitcoin scalpers usually trade on a 5 minute or lower timeframe, sometimes following tick charts which record every single trade without reference to time. Scalpers seek to profit from fleeting imbalances between buyers and sellers. They may make hundreds of trades over the course of a single day. For obvious reasons, such traders are particularly common on Bitcoin exchanges which offer zero or minimal trading fees.
Those who seek to profit from larger Bitcoin price moves during the course of their session are known as day-traders. This term originates from traditional stock market traders who refrain from holding positions overnight. Nevertheless, it fits for Bitcoin traders who usually follow half hour, hourly or 2 hour charts.
Swing traders or trend traders are those who maintain positions for days, weeks or even months. Such Bitcoin traders attempt to capitalise on large swings within a range-bound market or major trends. They generally follow daily charts, with occasional reference to weekly charts for greater context. They may consult lower timeframes to study price action at important levels or to achieve greater precision on exits and entries.
Bitcoin investors are the most likely to time their market actions with reference to weekly or even monthly charts.
Choose your timeframe depending on your desired level of market activity. Scalpers and scalpers follow every trade and commonly conduct multiple trades per day, whereas swing or trend traders check price only occasionally and rarely execute market actions.
A final word of advice regarding timeframes: intelligent traders consider multiple time-frames when planning their trades. When a convincing case for the market’s future direction can be made across all relevant timeframes, it’s time to act!
Trending vs. Rangebound Markets
Markets spend the majority of their time rangebound. Price ranges between strong support (the consensus “low” level at which eager buyers absorb all volume offered by sellers) and strong resistance (the converse of support). This rangebound state is best illustrated by the following daily Bitcoin chart from late 2014 to late 2015:
The more frequently price reacts against support or resistance (S/R) levels, the more important such levels become. S/R levels tend to become entrenched at psychologically-significant “big round numbers,” such as $200 and $300 in the above chart.
When S/R lines are slanted, they’re known as trendlines. As alluded to previously, stop-losses are well-placed to the other side of trend or S/R lines – if they’re decisively penetrated on high volume it’s a strong signal that momentum has shifted.
In mid-August, an upwards trend, denoted by the green line, emerged. This bull trend finally propelled Bitcoin’s price through the $300 – $320 resistance level, on high volume (denoted by the feint red and green bars). As often happens, resistance then became support as the initial impulse to $500 faded.
Enough screen-time will give you a feel for when markets are shifting from rangebound mode (when the winning play is to short at resistance and buy at support) to trending mode (when it pays to hold a position as it overcomes S/R and exit at an emotional extreme). In the above chart, the clue was that price action underwent a change in character around mid-October, transitioning from up-and-down chop to a steady upwards slide. This slide presaged the exciting curl-up on rising volume as market momentum gathered for the decisive upwards break.
What will price do next? Welcome to the mystery of the hard right edge, the as-yet blank area of a chart.
Indicators and Patterns
Charting sites or programs and trading interfaces commonly feature indicators – mathematically-derived visualisations of (sometimes) revelatory market aspects. Common useful indicators include moving averages, MACD, Bollinger Bands, RSI, etc. Before experimenting with the vast array of indicators, it’s recommended to master the basics covered above – money management and stop-loss discipline in particular!
Chart patterns and candlesticks are further tools to assist your trading. Certain topping and bottoming patterns are particularly important. Such things are best explained visually, as on Thomas Bulkowski’s excellent Pattern Site.
Incorporating all the above strategies and tools into a coherent trading plan will take a great deal of time, study, experimentation and discipline.
Once you’ve proven the viability of a particular plan, consider advancing to the next stage of Bitcoin trading: programming a trading bot which connects to your exchange’s API and faithfully carries out your plan whilst you soak up the rays on a tropical beach… Good luck, you’ll need it!
Bitcoin Trading Charts
While in some ways Bitcoin behaves like no other asset, charts can still be used to track and predict Bitcoin’s next move.
A number of Bitcoin trading charts exist that help users plot, record and share their technical analysis, patterns, and more.
Here are three of the best sites for charting Bitcoin.
Cryptowatch is a somewhat new trading site in the Bitcoin space.
It has, however, quickly become the most popular charting site among traders.
Recently, the Bitcoin exchange Kraken purchased Cryptowatch in order to improve its own internal trading charts and interface.
Cryptowat.ch along with Trading View are probably the most up-to-date and have the most options.
Cryptowat.ch shows charts for most popular exchanges like Poloniex, Kraken, GDAX, Bitfinex, Bitstamp, Bitflyer, OKCoin, BTC-e, and BTCC.
Unlike the other charting sites mentioned, Trading View is not just for Bitcoin traders.
It has charts for gold, stocks, and nearly anything else publicly traded.
Trading View allows you to create an account where you can save your charts. There is also a social aspect. You can join the Bitcoin trading group chat on trading view to share your views and charts with others.
This chat gets very hectic, especially when Bitcoin’s price jumps or falls!
Bitcoin Wisdom is the oldest Bitcoin charting site.
Bitcoin Wisdom is popular because it has a simple, clean interface.
The main issue with the site is that its owner does not maintain it anymore. So there are a number of new Bitcoin exchanges that you won’t find listed on the site.
BitcoinCharts.com is different than the other three sites.
Rather than a live chart, it is slightly better for browsing historical data.
Are we missing a Bitcoin trading chart that you like? Questions? Drops us a line in the comments!
We’ve previously examined general Bitcoin trading in depth. This article focuses on day trading Bitcoin.
What is Day Trading?
Given the chaotic sleep schedule of most traders, “day trading” could be better stated as:
Trading when it’s convenient to you, without holding any position while you sleep.
Day trading is an active and involved trading style which seeks to capitalise on short but significant price moves.
The good news is:
Bitcoin has more than its fair share of short but significant price moves! This makes Bitcoin a great instrument for day traders.
Why Day Trade Bitcoin?
We might go so far as to call Bitcoin the ultimate day trading instrument, based on these 5 factors:
- Trading-focused Bitcoin exchanges have very low fees and minimums compared to traditional exchanges. Zero fees for makers are common and you won’t pay more than 0.25% in fees if you choose your exchange wisely. Our site helps you choose!
- Bitcoin can be traded from anywhere in the world, 24 hours a day, 365.25 days a year. It doesn’t matter where you are or when you have time to trade; you can be part of the multibillion Dollar Bitcoin market if you have an internet connection.
- Day trading lets you profit from Bitcoin without having to understand its technical complexities nor hold a long-term position in a new form of money, which is still considered experimental.
- Several Bitcoin exchanges offer leveraged trading. This means you gain can more exposure to upside and downside price risk than your trading budget would ordinarily allow.
- Bitcoin’s volatility remains much higher than most other trading instruments, with the exception of alternative cryptocurrencies. This means you’re likely to find plenty of tradeable action in the Bitcoin market. For better or worse, Bitcoin seldom has dull, sideways price action!
One Good Reason Not to Day Trade Bitcoin
- Unless you’re a skilled professional day trader, perhaps with a bit of luck, it’s usually much easier and more profitable to adopt a longer term strategy. Simply buy Bitcoin at a major low and sell it at the next major peak (or vice versa if you’re betting on a price fall). This strategy saves a lot of screen-watching, stress, and trading fees.
Our guide to general Bitcoin trading covers the various timeframes and their related trading approaches. Be sure to consider all of them before committing to day trading! Day trading is demanding in terms of time, energy and attention. If you already have a busy lifestyle, it’s probably not a good fit for you.
How to Day Trade Bitcoin
You’ll need 4 things to get started with day trading Bitcoin:
- A good Bitcoin exchange for trading,
- Trading capital,
- A gameplan.
Let’s discuss these elements in detail…
Bitcoin Exchanges for Traders
Check out our full article on the leading Bitcoin exchange by volume, Bitfinex. Other good options for traders include Bitstamp, Kraken, BTC-e, Cex.io, GDAX, Luno… the list goes on!
If you wish to search for a good exchange for your location and / or payment method, BuyBitcoinWorldWide exists for this exact purpose. Search for exchange (as opposed to “broker”) entries which specifically mention low fees, deep liquidity, and an interface designed for traders.
Only day trade with funds you can afford to lose. If you’re a new trader, the odds are extremely high that you will lose your initial trading funds. Always start out with a small amount while you learn and practice and consider this amount as “school fees.”
Day trading is based on technical analysis; the ability to make market decisions based primarily on price charts. This skill takes a lot of practice and screen time to master. Even more important is a sound money management strategy. Markets can never be predicted with perfect accuracy so proper money management is key. It will minimize your losses due to wrong calls and maximize your profits when you get things right.
For further info, check out our general guide to trading.
Avoiding Scams with Cryptocurrency Exchanges and Websites
There’s an important difference between Bitcoin/cryptocurrency transactions and other means of money transmission, such as credit cards, bank transfers or PayPal - Bitcoin/crypto payments are irreversible.
If you’re cheated, there’s no central authority to refund or reverse your payment. It’s also highly unlikely that authorities will be able to assist, as it’s extremely difficult to establish ownership of a Bitcoin address.
You bear full responsibility for managing your coins.
Fortunately, a little common sense and knowledge will go a long way to avoiding scams.
A good maxim to keep in mind when considering any proposition is:
If it sounds too good to be true, it probably is. Browsing cryptocurrency-related forums, sites or social media, you’ll encounter many enticing offers of high investment returns.
Often times these are not exchanges. But, if a scheme or exchange is presented as highly-profitable and low-risk, ask yourself why such a great opportunity is being shared with the public.
Remember, you’re most susceptible to being scammed when you allow desire for easy money to override your logic and caution. Discipline yourself to make decisions only after calm reflection and beware of anyone rushing you or using FoMO tactics to manipulate your emotions.
Another gem and the reason trust ratings exist:
The best indicator of future behavior is past behavior. If someone making an offer has a history of shady dealings (as reflected by their trust rating on BitcoinTalk, LocalBitcoins, the WoT etc.) then be on your guard.
Exercise equal caution when dealing with a newbie with no history, as busted scammers often simply create new accounts and start over. The same goes for exchanges with no history.
It’s also possible that an exchange with a great history may be planning a “long con,” in which they build up a good reputation by behaving honourably – until a large sum is up for grabs. Always balance the value of their good reputation against the money at stake.
And remember, reputational feedback is only as valuable as your knowledge and trust of the provider. Positive ratings from numerous newly-registered accounts may signal a Sybil Attack, whereby a scammer games the rating system by creating shell accounts for the sole purpose of raising their trust profile.
Use Escrow if Possible
Of course, not all payments can be escrowed. Bitcoin exchange deposits are a good example.
Mt. Gox is the most infamous case of a fraudulent exchange, in which 650,000 bitcoins were lost. There were many warning signs before Gox failed and it’s worthwhile to research the entire saga to learn what they were.
The more you learn about previous scams, the easier it becomes to recognize the signs.
Unless you’re an active trader, a good rule of thumb is to never leave your bitcoins or fiat money on an exchange. Bitcoins outside your personal wallet are bitcoins you don’t own.
Bitcoin Investments and Ponzi Schemes
Before jumping aboard any scheme promising regular payments, learn to recognize the tell-tale signs of a Ponzi scheme, in which payments from new entrants go towards funding older members, at least until the whole rotten swindle collapses.
Pirateat40 was the biggest of the Bitcoin Ponzi schemers to date, and reading through his thread will provide insight into the ways of scammers, shills and their victims. Sadly, victims are often the fiercest defenders of such scams, at least until they lose their shirts.
Modern cryptocurrency Ponzi schemes are often disguised as cloud mining plans. This thread offers excellent advice on spotting these scams and indeed, Josh Garza’s GAWminers, which was mentioned as highly suspect at the time, turned out to be the biggest and most audacious cloud mining scheme to date.
We hope the above advice will save your bitcoins from scammers. When in doubt:
Research more, exercise patience and caution, use escrow if possible and discuss things with those you know and trust.
Learn More About Crypto Exchanges
Centralized vs. decentralized exchange
The rising popularity of cryptocurrencies and their booming value means that hackers are now looking for ways to steal money from users and exchanges. In fact, cryptocurrency exchanges have been hit by more than 60hacker attacks since 2011 that have led to the loss of millions of dollars in wealth.
A common link that connects some of the cryptocurrency exchanges that have been affected by hacker attacks is that they were centralized in nature. The likes of Mt. Gox, Coinrail, Bitfinex, and Bithumb, among others, were all centralized exchanges, which meant that they held users’ money as deposits. Additionally, centralized exchanges are also the custodians of users’ private keys.
They store these private keys in some centralized server or database, making them easy prey for hackers. In case the database is compromised, users of that cryptocurrency exchange stand to lose their wealth in almost no time. That’s one of the reasons why it is always suggested that users shouldn’t leave their cryptocurrency in their exchange accounts.
In effect, users don’t have control over their crypto assets if they are using a centralized exchange. However, the emergence of decentralized exchanges can change the narrative and potentially reduce the number of hacks. That’s because a decentralized exchange doesn’t hold critical user data in a single location and it doesn’t entrust data to a third party, which makes it difficult for the same to be compromised.
In addition, there are some other advantages of using a decentralized exchange. One of the biggest advantages is that decentralized exchanges give users more control over their privacy since they don’t require sign-ups or know-your-client (KYC) documents. As these exchanges are hosted in a decentralized manner, they cannot be taken down by either hackers or governments in the guise of regulation.
Additionally, the distributed nature of the hosting of decentralized exchanges means that they are not prone to downtimes. But the fact remains that centralized exchanges are still very popular because they make it easy for users to buy, sell, or trade in cryptocurrency despite their drawbacks. At the same time, decentralized exchanges are still in the development phase, which means that they are not very friendly to use.
Apart from these problems, decentralized exchanges also suffer from lack of liquidity because of their limited use, while the lack of a central point of contact means that there would be difficulty in addressing users’ concerns. So, decentralized exchanges might not be a viable option for users as of now, but there are some promising developments taking in this place.
The likes of CryptoBridge, EtherDelta, and many other decentralized exchange projects are in the development phase. They could turn out to be the key drivers behind the broader adoption of cryptocurrencies because of the independence, anonymity, and security that they bring to the table.
Cryptocurrency exchanges with the highest volumes
Trading volume is one of the most important criteria a user needs to look at while selecting a cryptocurrency exchange for a few basic reasons. For one, higher volumes will allow users to easily buy or sell the cryptocurrency of their choice without much difficulty because of the available liquidity. Next, higher volumes on a cryptocurrency exchange are an indication that it is widely trusted by a lot of users.
At the same time, the trading volumes will also help users get an idea about the buying and selling activity on a cryptocurrency and determine the direction in which the price could be heading. As such, a cryptocurrency exchange with high volumes brings many benefits to users looking to deal in digital currencies. Here are some of the exchanges with the highest volumes as of this writing:
As of this writing, Binance occupies the first place among all the cryptocurrency exchanges with a 24-hour trading volume of more than $1.3 billion, and that too by a fair distance. Its trading volumes are nearly 30% higher when compared to the next occupant on this list. Bitcoin accounts for the majority of the volumes at nearly 29%, followed by Ripple.
OKEx follows Binance with a 24-hour trading volume of just over $1 billion. Like Binance, Bitcoin is the most widely traded digital currency on this exchange as well with almost 30% of the overall volumes. The next most traded platform on OKEx is EOS, opening up an opportunity for users looking to trade this coin.
Bitfinex is the next name on the list with a 24-hour trading volume of nearly $800 million. Bitcoin enjoys a greater proportion of trading on this cryptocurrency exchange as it accounts for nearly 46% volumes, followed by Ethereum and Ripple.
Things to keep in mind
While a cryptocurrency exchange with high volumes definitely presents an advantage for the user, it is worth keeping in mind that it shouldn’t be the definitive criteria. Exchanges have been known to manipulate trading volumes with the help of bots. Additionally, high volumes aren’t a guarantee that a cryptocurrency exchange is entirely reliable.
For instance, Bitfinex, the third name on the list above, was hacked in August 2016 and $72 million in Bitcoin was stolen from this exchange. Just before the theft, Bitfinex was fined by the U.S. Commodity Futures Trading Commission for offering illegal commodity transactions. As such, users shouldn’t rely on volume alone while selecting a cryptocurrency exchange.
Moreover, certain new exchanges have been growing at a really impressive rate. Gemini, for instance, was witnessing 100% volume growth every two days back in 2015, and it is now looking to widen its horizons by bringing institutional investors into the cryptocurrency market. This should ensure further volume growth going forward, which also means that users shouldn’t restrict themselves to exchanges with only high volumes and consider other options as well that are fast coming up.