As the cryptocurrency phenomenon is about to go mainstream, there are a lot of misinformation and confusion regarding this interesting topic; I will write a series on this subject. I don’t know the absolute truth, so each of the articles on the subject, will only be a “a drop of light in an ocean of darkness”
I have to let you know, that not even on an international exchange website you cannot trade all of the coins. Some of them offer limited options for trading, in the cases of altcoins. If you own or hold Ripple (XRP) and you want to purchase Cardano (ADA), the transaction cannot be made in an direct mode, not even on international exchanges there is no trading XRP – ADA pair – I hope you understand what I mean. In this case, you will have to make 2 transactions / trades. First one would be: XRP – BTC (sell Ripple for Bitcoin), and the second one would be BTC – ADA (sell Bitcoin for Cardanno).
Please keep in mind, for every transaction there is a fee (transaction commission / fee) directly proportional to the traded amount. In our case, we will have 2 transactions with 2 different fee’s (commissions).
Some of the best-known international exchanges that offer a relatively wide range of altcoins would be:
- Binance – https://www.binance.com – is an exchange where you can trade about 250 altcoins, being in the top of exchanges, due to it’s trade volumes, based on 24 hours. It constantly adds new altcoins and it has low fees (0.1% for each transaction). This fee or commission taken by Binance can be reduced to 50% by using BNB tokens (an altcoin offered by Binance). This way the final commission or fee will be 0.05% for each transaction. The discount offered by the BNB token can change in time, more details can be found on their article called “What deductible fees does BNB charge?“
- Bittrex – https://bittrex.com – is an older exchange than Binance, it has approximately 260 altcoins listed, but the transaction / trade volume is smaller. Note: even if the altcoins listed on two exchanges is quite equal, that doesn’t mean the two exchanges have the same altcoins listed. There are altcoins which are listed on Binance, and you cannot find them on Bittrex, and vice versa.
- Bitfinex – https://www.bitfinex.com – it was one of the first exchanges which offered the opportunity to trade Bitcoin Cash (BCH); today there are about 100 altcoins listed. There is also a small controversy with Bitfinex, due to it’s altcoin called Tether (USDT).
- Kucoin – https://www.kucoin.com – it’s quite new, it was launched in 2017, and it focuses on lesser known altcoins, which don’t appear on the major exchanges. It has over 200 altcoins listed, even though the exchange is quite new.
- Cryptopia – https://www.cryptopia.co.nz – offering the biggest variety of altcoins among all the exchanges listed above; to be more exact, it has over 450 altcoins. It’s a niche exchange, having small volume compared to big exchanges; but it has the advantage that it offers altcoins only found on Cryptopia.
- Etherdelta – https://etherdelta.com – it’s a decentralized exchange and it offeres over 300 altcoins; even though the decentralization idea is excellent; it is more complicated to put this plan in action, at least for the moment. For each transaction or trade, for example Cloud (CLD) – Ethereum (ETH) you have to wait a few minutes for the confirmation; on oother exchanges it’s quite instant.
I’ve shown and presented the positive aspects of international exchanges, and what they offer compared to local exchanges, but I have to add this too:
- Because of the high user registration volume at the end of 2017 and at the beginning of 2018, some exchanges have temporarily closed the possibility to register. They did upgrades, hired more staff, and they reopened the doors for the public (new users), but you must remember that not always you can register on these sites.
- If the exchange has issues with withdrawal or other services, this issue might be persistent of days or weeks, until you will get an official answer from the exchange. Almost all big exchanges have this problem because of the users which registered in the last period.
- It doesn’t matter how secure or what kind of promises the exchange makes; it has to be looked at like a “hot wallet”. If the exchange gets closed, or it’s funds are stolen or just simply it think you’ve broken the ToS (Terms of Service) – it can block / ban your account permanently. Even though this unhappy event is rarely the case, we have to keep in mind that it can happen to anyone, any time. Before you put your money (fiat) or crypto into an exchange it is highly recommended you do an “risk vs reward” analysis.
Until next time, remember this fact:
It is very important that you get informed from more sources. Don’t just believe what I write in this articles, verify for yourself whenever you have the opportunity.