Cryptocurrency exchanges lost more than $356 million during the first quarter of 2019 due to hackers' attacks, the report of CipherTrace, a company that develops anti-money laundering solutions, states. These statistics prove that some trading platforms are vulnerable to hacking and cannot protect clients’ funds and personal data. Moreover, exchanging services are often blamed for bad customer service and providing fake trading volume values.
The point is how to choose the exchange to sleep calmly and be sure that your digital assets are safe? Here are some tips.
How to choose the best exchange
When choosing the exchanging platform, beginners should take into account the following important features:
Before depositing money, it's necessary to learn everything about the exchange. Ask experienced users as well as follow reviews and advice provided on popular forums, such as Reddit or Bitcointalk.
Every cryptocurrency exchange sets specific commissions for their services. In general, commissions range from 0.1% to 0.2% depending on the transaction amount.
Number of trading pairs
The more currency pairs the exchange offers, the more options to earn users have. Some customers prefer to trade in highly liquid cryptos while others stake on volatile or less liquid altcoins.
The higher the trading volume is, the more chances to make profit users have. Successful and popular exchanges usually have high daily turnovers.
A wide set of payment methods provides users more opportunities to manage their digital funds. Some exchanges accept only virtual assets while others allow traders to use fiat currencies.
There are exchanges that allow users to remain completely anonymous while others require undergoing the verification process. When customers fail to do it, their trading options can be limited.
The interface should be simple, understandable, and convenient for both newcomers and professionals, as well as having clear navigation between all the sections. It’s also very important to be able to use various analytical and statistical instruments that make the trading process more effective.
Some exchanges can be unavailable for users from other specific countries. For example, Japanese and South Korean platforms are very attractive for cryptocurrency transactions but they are open only for the residents of these countries. That's why traders should check whether they can use the services of one or another trading platform within their area or not.
The task of every support service is to timely solve the customers' problems and answer their questions.
Top cryptocurrency exchanges
There is a rating of the most popular trading platforms based on the trading volume, security, commissions, and other criterias.
Founded in 2013, Huobi occupies leading positions in the rating of the best exchanges. The trading platform offers users margin trading, competitive transaction commissions, 24/7 support service, and training materials for new traders. Total users' assets exceed $10 billion. The platform uses a specialized cyber theft protection system.
Nevertheless, the exchange was blamed for falsification of trading volumes. Crypto trader Sylvain Ribes conducted research and compared several large cryptocurrency exchange services. He stated that Huobi, HitBTC, Coinbene, OKex, and other platforms overrated their trading volumes up to 80%.
Coinbase is both exchange and cryptocurrency wallet that has a high trading volume and capitalization. The exchange allows authorized users to earn on exchanging and trading transactions. Coinbase numbers more than 10 million customers and officially supports clients from 32 countries. In spite of the leading positions in the rankings, the service has disadvantages. Users often complain about weak customers support that often ignores their claims and questions. The consultants respond to the problems only when customers make their issues public through the Reddit.
Like Huobi, HitBTC has operated since 2013. This large trading platform provides customers with low commissions (0.1%), an optimal number of trading pairs, fast registration process, intuitive design with effective analytical instruments, as well as high security of traders' accounts. One of its interesting features is demo trading. Instead of having to deposit any coins, new users can learn the basics of crypto trading by playing with demo crypto on the website, which is very useful for the beginners!
This exchange did not avoid the scandal, either. It erupted on January 3, 2019, in the course of the Proof Of Keys campaign. Traders were offered to withdraw their digital assets from the exchanges to identify the platforms that don’t store the declared amount of virtual coins. HitBTC froze the users' accounts having explained that the exchange would not be able to properly function if the customers withdraw their funds.
The crypto community condemned such actions. Even famous crypto enthusiast John McAfee could not stay away: "I warned everyone more than a dozen times. Don't sign up. Don't use it. Withdraw your funds. I was trashed for calling out HitBT as a corrupt company. Tough shit. You had six months warning from me to withdraw your funds. Do not ask me to help you now."
South Korea-based Bithumb is a leading cryptocurrency exchange with the largest trading volumes in the world. The platform allows users to buy and sell more than 35 largest digital currencies. Bithumb offers not only crypto-to-crypto trading but also accepts fiat deposits in South Korean won (KRW).
In spite of the security measures, the service was hacked three times. In June 2017 cyber criminals hit 3% of all Bithumb users. In June 2018 hackers stole $31 million. In March 2019, Bithumb was attacked again. The platform lost more than 3 million EOS (~$12.7 million) and 20 million XRP (~$6.2 million). According to the official statement, users' funds were under the protection of cold wallets and only Bithumb's assets were stolen.
BTCNEXT by Platinum Q DAO Engineering is a new spot and margin trading exchange that offers a wide range of services, such as SPOT Trading, Margin Trading, IEO Launchpad, as well as provides access to STO markets. The exchange has an easy-to-use interface and employs a number of sophisticated trading tools that help users get statistical and analytical data.
In order to protect users' assets, BTCNEXT applies more than 300 security measures, including risk control and strategies used to secure national banks. Besides, the exchange's servers are placed at the duly certified data centers, which ensure the protection of the traders' identities. BTCNEXT undergoes rigorous internal multi-run and external audits on a regular basis.
The main advantage of this next generation platform is its 24/7 support service. Users can be sure that their issue will be solved within several minutes if now seconds. The founders seek to avoid mistakes made by other exchanges. They are aimed at building totally transparent and reliable relations with the customers. No ignoring, no long waiting, everyone will be heard.
Despite BTCNEXT was launched recently, It has gained the first popularity from the trading community. It is managed by a highly experienced team of Platinum Q DAO Engineering that has already implemented several successful projects and has a significant background in the blockchain and crypto trading industry, including providing IEO, listing, and market making services. The exchange is actively listing coins and developing new services, including the mobile app.
It’s also worth mentioning the partnership with USDQ, a fully decentralized stable coin backed by Bitcoin and other top 10 currencies in the future, as well as its governance token Q DAO. Since stable coins are collateralized, they are not prone to the market volatility so severely as usual as virtual coins are. This feature allows them to be more stable and reliable, which opens new opportunities for traders. The Q DAO ecosystem will be expanded with a range of stable coins backed by fiats soon (JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, and RUBQ). They will be available on BTCNEXT, too.
BTCNEXT is a cryptocurrency exchange whose priority is customer service and transparency. The trading platform applies effective tools to make the exchanging process as seamless and clear as possible, as well as making it understandable to both professionals and newcomers. The exchange also employs the most efficient security instruments to protect customers' personal data and their funds from hackers' attacks. To learn more about BTCNEXT, visit the exchange’s official website and follow it on Twitter, Instagram, Telegram, Facebook, Medium, or LinkedIn.