Crypto trading has been giving tough competition to the traditional investment formats in the Indian financial markets. With the endless opportunities for profits that this avenue offers, more people are entering the crypto space. To enter the crypto world, however, it is important to have the right platform for trading. This brings us to one of the most important platforms of cryptocurrency trading, which is cryptocurrency exchanges.
Here, we have put together a list of the top 5 crypto trading exchanges with a brief overview on each.
1. Kraken
One of the top cryptocurrency exchanges on this list is Kraken. It is regulated by FCA in the UK, and FinCEN in the US. Considered as one of the safest and most credible platforms for trading in cryptos, in this exchange, users can buy or sell through the ‘Instant Buy’ option. The exchange charges 1.5% fee and additional fee as per the payment method chosen or instant buys. Kraken Pro feature on this exchange is based on the maker/taker pricing mechanism.
2. Coinbase
Another of the best and one of the largest (in terms of trading volume) crypto exchanges across the globe is Coinbase. It offers higher flexibility to users as they can choose between the regular platform or ‘Coinbase Pro’. While the former offers simple features and is mainly convenient for casual investors, the latter offers advanced features like real-time order booking and an economical fee structure.
Like Kraken, Coinbase Pro also uses a maker/taker mechanism, whereas the regular Coinbase platform has a variable fee structure. It allows users to choose from more than 130 crypto assets. The exchange also lets users fetch staking rewards through Coinbase’s automated offerings. The exchange has a free-to-download self-custody crypto wallet app that has more than 4000 assets to choose from, including NFTs. It is known to be one of the industry leaders for offering high-end security that protects user’s holdings.
3. eToro
Most experts will vouch for eToro as one of the top cryptocurrency exchanges in today’s times due to their low fees. Widely respected in the crypto space, this exchange follows extensive regulation passed by governing bodies. The exchange boasts of more than 23 million users. On this exchange, one can invest in more than 40 cryptocurrencies and 14 crypto crosses, including BTC/XLM and ETH/EOS.
The platform does not charge any transaction fee for initiating a trade. The only charge applicable is the spread, which is essentially the difference between an asset’s buy and sell prices. Each coin has a different spread.
eToro exchange allows users to make deposits using credit or debit cards, e-wallet payments, or even bank transfers. For the convenience of beginners, the exchange has set up a dedicated education service known as ‘eToro Academy’. It has a wide range of free knowledge articles and videos that aid beginners in understanding the trading process. Lastly, eToro also offers a free crypto wallet for iOS and Android users. This can be used for safe storage of crypto holdings.
4. Binance
Binance is another top-rated crypto exchange which is also the largest of its kind in the world in terms of trading volume. It provides access to more than 500 cryptos that can be traded at substantially low fees with charges ranging around 0.1% fees for trade opening and closing.
For users who hold BNB, the exchange further reduces the fees by 25%. BNB is Binance’s native cryptocurrency. Binance is a great exchange for both beginners and experienced traders since it offers two different platforms, each providing special features to cater to a specific demographic.
With high-end charting capabilities and a wide range of technical indicators, the exchange focuses on optimizing trading for users. Binance also accepts FIAT deposits and allows users to make free crypto deposits.
5. Webull
Launched in 2017, Webull offers one of the lowest fees to attract many casual investors. Since its inception, it has grown exponentially with more than 7 million registered users. This exchange comes under the regulation of SEC and FINRA in the US. It allows users to trade for as low as $1 and does not charge any transaction fees. Webull has a 100bps (1%) markup chargeable on the price of the asset being traded. Currently, its offerings include 25 coins and real-time charting options. Some of its unique features are multiple timeframes and technical indicators that can be used by traders. The platform has an easy-to-use app and a two-step authentication for additional security.
Conclusion
Each of the above-mentioned top exchanges offers distinct features that allow the best user-experience and convenience while dealing in cryptos. Since Cryptos are unregulated virtual assets in India, these are subject to market risks. Investors must carefully assess the risks involved before dealing in cryptos.
FAQs
A crypto exchange is like a marketplace to deal in cryptocurrencies, such as Dogecoin, Bitcoin, Ether, etc. These function like any other trading platform where users can set up their accounts and create order types like buy or sell in the crypto market.
While choosing the right crypto exchange, one must consider aspects such as trading volumes, fees, security, educational assistance, availability of different cryptocurrencies, etc. Users must also consider the accessibility specific to the country and state.
Cryptocurrency or crypto is any currency that exists digitally. These currencies use cryptography to secure transactions. They are mainly used for digital payments that do not rely on banks for transaction verification. Cryptocurrencies are based on peer-to-peer mechanisms, enabling anyone anywhere around the world to send or receive payments.
Currently, there is no central or regulatory authority governing cryptocurrencies. Therefore, these make use of a decentralized system for recording transactions and issuing fresh currency units.
To buy cryptocurrency in India, you must have a virtual account, also known as blockchain wallet, to ensure safe and legal payment and exchanges. For a digital crypto wallet, you must select a crypto exchange that offers these services. Once an account is set up, you can easily buy or sell cryptos just like you would buy or sell stocks.
