Cryptocurrency exchanges provide us with nothing but an amazing platform for all the transactions that need to be done with it. The conversion between different cryptocurrencies and Fiat currencies is also made possible through these exchanges itself. However, providing us with integrated environment costs us our identity, which in other platforms apart from cryptocurrency exchanges is more anonymous in nature like localbitcoins.com.
Almost 90% of the total number of cryptocurrencies exchanges which exist are centralized in nature and the rest being decentralized. According to the original concept proposed by Satoshi Nakamoto, one of the core foundations of the cryptocurrencies is its decentralized nature and the centralized power of cryptocurrency exchanges to manage our investments doesn’t seem to go hand in hand with it.
The Top cryptocurrency exchanges are in a rat race, to remain dominant in their operations. However, unexpected situations like hacks and theft might leave them in denial and hence security is one of the major points of focus for the key members of an exchange. Here is how the top 5 cryptocurrency exchanges According to coinmarketcap compete with each other.
The Asian cryptocurrency exchange Binance doesn’t support Fiat currencies. In order to start trading on this particular cryptocurrency exchange, one needs to buy Bitcoin, Ethereum or any other cryptocurrency. However, it even provides a number of cryptocurrency trading pairs and hence is the largest cryptocurrency exchange based on daily trading volume.
The China-based cryptocurrency exchange Okex allows user for a provision to trade between a number of cryptocurrency and Fiat backed tokens. It even provides an exclusive environment for the professional traders through advanced tools, charts, and other pieces of information. The exchange even provides a cryptocurrency wallet, a vault to secure the funds, and also a Blockchain Explorer to provide a complete history of the Blockchain. Multiple leverage options are available for the digital asset based futures.
One of the leading Global digital asset exchange Huobi is dedicated to storing 98% of all its funds in multi-signature cold wallets. Founded originally in 2013 in China by Leon Li, the company has offices in Singapore, United States, South Korea, etc.
Founded in the year 2012 and headquarters in Hong Kong the cryptocurrency exchange Bitfinex is well known to provide liquidity to the Bitcoin market. The cryptocurrency version of the US dollar, Tether is estimated to be closely related with this exchange.
The China-based cryptocurrency exchange Zb.com offers Crypto to Crypto as well as Crypto to Fiat trading. The Chinese cryptocurrency exchange was launched after the ICO ban in the country. Founded in 2017 the cryptocurrency exchange has gained a lot of momentum with its operation being globalized in nature.
Some of the above-mentioned cryptocurrency exchange support Fiat trading and conversion like Bitfinex. Supporting Fiat currencies is crucial as the newcomers in the cryptocurrency field cannot enter the Crypto trading industry without the support of Fiat conversions. Many cryptocurrency exchanges, keeping this in mind, support them. On the other hand, due to the regulatory concerns and other verification process required for the Fiat transfers some of the exchange keep it preferable to avoid them. ZB.com cryptocurrency exchange supports only cryptocurrencies.
A transaction fee is levied upon all the transactions which take place on the cryptocurrency exchange and is one of the major means of income for the exchange. The transaction fees differ based on the trading volume of a particular user or can also be constant for all of them. The transaction fees for Binance is 0.1%. The crypto to Crypto trading fee for OKEx is anywhere between 0 – 0.3%. In case of Huobi, both maker and the taker fees account for 0.2%. Bitfinex and ZB offer the trading fees between 0 to 0.2%.
Some of the cryptocurrency exchange employs a condition, that a certain amount of investment must be made available in the exchange’s funds in order to initiate the trading process. Large cryptocurrency exchanges like Binance do not impose such restrictions on the traders. However other cryptocurrency exchanges like Bitfinex needs $10,000 worth of deposit before initiating a trading process.
It is well known that the beginners and the professionals have a completely different set of expectations from a cryptocurrency exchange. Hence many cryptocurrency exchanges opt for 2 user interfaces, one for the beginners and the other one for the advanced users. Binance and ZB.Com are the prominent Crypto exchange which supports this advanced facility for its customers.
It must be understood that this is an infinite game between the Crypto exchanges and no one can ever win or lose the battle. The main goal must be to keep the things going on along with the daily improvements.