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With ByBit beginning to cease operations in the U.K., British users are looking for alternative crypto trading platforms, especially those offering both crypto futures and crypto investments aside from spot trading. There are several factors to consider, including licensing status, user experience, fees, the range of supported assets, and GBP support. Let’s go through each of these factors.
There are two types of exchanges available for crypto enthusiasts in the U.K.: those who have registered with the Financial Conduct Authority (FCA) and offshore entities. The case with offshore exchanges requires a thorough evaluation from users’ side; it’s recommended that anyone wanting to engage with such a platform makes sure that it has decent operating licences and has a clean record. Take this as an example: Binance has acquired licences in several jurisdictions, but not major ones, and they have been under scrutiny by authorities in the U.S., France, Netherlands, Brazil, Canada, and Australia. The uncertainty that comes with Binance’s licensing status will most likely lead to increased regulatory risks, an aspect users must definitely take into account.
At the same time, of course, the British need an exchange that supports GBP deposits and withdrawals. Even better if there are GBP trading pairs, given that there is not yet a trusty GBP stablecoin. An alternative exchange that meets these requirements is Bitget, which allows for crypto purchases in GBP via Visa/Mastercard and conveniently offers four GBP trading pairs: BGB/GBP, BTC/GBP, ETH/GBP, and USDT/GBP - basic cryptocurrencies for either holding or easy buying/selling of other crypto assets. It receives operating licences from the U.S. and Canada, hence KYC is a must. Another option for crypto enthusiasts in the UK searching for alternatives to Binance and Bybit might consider KuCoin. The platform has recently incorporated the Faster Payment System (FPS) for GBP, offering a swift and straightforward method for users to deposit fiat currency. Furthermore, to aid users in this transition, KuCoin hosted an informative AMA session, guiding users through the deposit process and the subsequent transition into cryptocurrencies.
For justifiable reasons, fees and the range of supported assets and services all belong to the big category of user experience. Assuming that Bitget is the object of evaluation in this case, one should now proceed to collect as much information about the exchange as possible.
How many trading pairs are there on Bitget? The exchange supports 580 coins and counting, with ca. 800 spot trading pairs and 200 futures pairs. Is it diversified enough for you, i.e. can you find your preferred coin/trading pair in Bitget’s provided selection? If yes, then the next step is to check out and compare the fees.
There is a difference between the fee schedule between spot and futures markets; most of the time, exchanges apply the same fee for Makers (those with large-sized orders, normally market makers and institutional investors) and Takers (retail investors) on spot markets and special offers for Makers on futures markets. Bitget charges a 0.1% spot fee for all spot orders, which can be deducted by 20% when paid with the exchange’s token BGB, and a standard 0.02%/0.06% futures fee. Registered VIPs will have access to a tiered fee structure, but it’s not our focus here. Most similar to Bitget is KuCoin with a 20% discount for fee payments using the platform’s token KCS, 0.1% spot fee, and 0.02%/0.06% futures fee. Gemini, eToro or Kraken (those regulated by the FCA) impose higher fees, so it’s back to square one with the question of local regulatory protections or versatile offshore options. Between Bitget and KuCoin, which exchange token shows more potential in the long-term, assuming you want to take advantage of the 20% fee discount? What else can you use the exchange token for besides paying for fees? Holding exchange tokens, in general, means you are eligible for exclusive deals and services introduced by that particular exchange such as staking or savings services, farming, airdrops, or, in the case of Bitget, you can earn more as a copy trader if your BGB holdings reach a certain amount.
The example above is meant to give U.K. users an idea on how to ask themselves the essential questions and encourage them to do proper research before initiating engagements with any exchange. Suggestions and recommendations oftentimes fall in the category of subjective opinions, thus selecting the one platform that best suits personal needs is undoubtedly the only tip users should ever take.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.