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🏆 Best Cryptocurrency Trading Platforms for August 2021
Explore investment opportunities with the biggest and hottest cryptocurrency trading platforms on the market. Cryptocurrency Trading Platforms offer a platform that enables users to trade cryptocurrencies with one another.
What is a cryptocurrency trading platform?
You can’t grow money on trees, but you can mine and trade them online in the form of cryptocurrencies. Cryptocurrency trading platforms are a marketplace where you can exchange your digital assets for another, based on the current market value. The thought of the trade is simple: you buy and sell cryptocurrency in the hope that it will increase its value in the future, like a virtual stock exchange.
Why do you need cryptocurrency trading platforms?
Cryptocurrency trading can be a profitable business. Given that the prices vary, depending on the current market value, you can play with your digital assets. With the help of cryptocurrency trading tools, these platforms can help you kickstart your digital asset trading journey.
Full Asset Control
If you want full power over your wealth, then cryptocurrency trading platforms can give you the control that you’re looking for. Unlike real-life money that is regulated by banks and the government, cryptocurrency bows to no one. You have full power as to how you buy and sell your digital assets. Most people invest in cryptocurrencies because of this level of autonomy they can’t get in real life currencies.
Better Payment Structure
Unlike bank transfers where you have to wait for the cash transfer posting, cryptocurrency trading is real-time. You spare yourself from non-real-time transfers; in cryptocurrency, all transfers are received anytime and anywhere. There are also no middlemen who will scrutinize the transaction you made and delay the process. With just a few clicks, the process would be marked completed.
Transactions in cryptocurrency platforms are discreet, wherein your trade is harder to trace compared with traditional modes of payment. It’s almost like paying with cash, but it’s hard to keep track of where the money came from. Cryptocurrency, however, doesn’t make you anonymous, but it helps you trade more confidentially instead.
When you are doing online or mobile transfers, you may think that you are doing full peer-to-peer transactions. However, the truth is, you have intermediaries between you and the other party. Cryptocurrency doesn’t need any middlemen. Because of your digital trading freedom, you can exchange your digital assets whatever way you want. You can send and receive money from anyone in the network without restrictions!
Core features of cryptocurrency trading platforms
Cryptocurrency trading platforms can make you the owner of your own money. Since you have full autonomy, it makes spending and trading quick and easy. But, before engaging in crypto trading, here are the different features that you have to consider in cryptocurrency trading platforms.
Simple and Easy to Use
Contrary to the belief that cryptocurrency trading is only for the tech-savvy, the majority of trading platforms are simple and easy to use. It only takes a few steps to buy cryptocurrencies and start trading. All you have to do is download a wallet where you can store your digital assets. There’s no need for technical background, so you can start trading in no time.
Accessing your assets has never been this easy. Since there are no third parties involved in all your transactions, you can access your credit at any time. You can send and receive currencies in these trading platforms from your computer or smartphone quickly. Also, transactions do not require your personal information nor bank account details. Thus, you’ll be sure that no identity thief will have access to your information.
Very Low Transaction Fees
Sending and receiving cryptocurrencies or digital assets are not only fast, but the transaction costs are also low. Compared to the typical bank transfer that charges you significant fees and exchange costs, online cryptocurrency trading platforms charge meager fees. Regardless of the amount or your distance from the receiver, you can send cryptocurrencies for a very minimal amount.
No Personal Information Compromises
Most cryptocurrency trading platforms are decentralized. There is no centralized entity to gather or sell private data of users. With this, you won’t have to worry about your personal information being leaked or used for malicious intent.
Variety of Payment Options
Payments for cryptocurrencies can be processed via mobile or electronic transfers. You’ll never have to worry about not having the right channels to make your trade because most payment options are accommodated—no need to go to banks or do meet-ups. Plus, members are free to do the transactions as they please so you can choose from a wide variety of payment options available in the market.
Types of cryptocurrency trading platforms
There are different types of cryptocurrency trading platforms. It’s best that you know your options first before signing up, so you’d know what fits your needs and knowledge. Take a look at your possible choices, as well as their pros and cons.
Centralized Cryptocurrency Trading Platforms
A centralized cryptocurrency trading platform is the traditional type. It is managed by a company or an organization centrally. Thus, it is the most reliable cryptocurrency trading platform type. Though you have full autonomy of your cryptocurrencies, the platform helps you conduct the transaction.
Pro #1: Secure
Given that there is a governing body that monitors the transactions, you won’t have to worry about entering a suspicious deal. The platform makes the trade for you, so they do the initial screening process.
Pro #2: High Trade Volume
Since your transactions are secure, you are safe to transact in high volumes. One downfall of peer-to-peer transactions is the question of whether the trade is legitimate. If you have reservations with the person you are dealing with, you won’t be able to go all out on your transaction. Centralized cryptocurrency trading platforms erase those worries. Because of the security they provide, you are free to transact in bulk.
Con #1: Transaction Fee
One of the things that cryptocurrency platforms boast is they have a significantly low transaction fee. However, it is an entirely different story with centralized platforms. Since there is a third party involved, there is a transaction fee for the transfer of cryptocurrencies. Nevertheless, these charges are still minimal compared to banks, and you’ll get your money’s worth for the security it provides anyway.
Con#2: Abides by Governmental Regulations
Centralized cryptocurrency platforms are not as autonomous as the decentralized type. Though they give a level of freedom to the users, they are still a business after all. With this, they still abide by the rules of the government, and even the best cryptocurrency trading platform can be closed down for non-compliance.
Decentralized Cryptocurrency Trading Platforms
Decentralized cryptocurrency trading platforms are also known as DEX. Unlike the centralized type that has a governing body, DEX allows peer-to-peer transactions. It is developed as a decentralized application that enables you to use your wallets for your trade. Most decentralized platforms have their cryptocurrency, which is exclusively exchanged at the platform.
Pro#1: Control and Privacy
DEX gives you full control over your funds. Because you are entirely autonomous in the trade, your digital assets are at your entire disposal. No authority can freeze or have access to your digital assets.
Pro#2: Advanced Blockchain Technology
Given that there is no mediator for the transactions, how sure are you that you are entering a safe trade? The answer is technology. Using advanced blockchain technology, DEX creates decentralized exchanges within its platform. Without intervention, it looks at the exchange tokens to examine any suspicious activity.
Pro#3: Financial Inclusiveness
Most centralized platforms due to regulatory procedures have restricted access to specific countries. DEX, on the other hand, allows all users to join the trade. It doesn’t matter which part of the world you are; you are welcome to trade cryptocurrencies. The financial inclusiveness of DEX makes it more appealing to users.
Pro#4: Low Transaction Fees
You can transfer cryptocurrencies even to the most remote country in the world but still be charged minimal transaction fee with no exchange cost. This is one of the powers of DEX. Plus, the absence of a middleman takes the security burden from the platform. Thus, they have less work to do, which means less charge as well.
Con #1: Less Secured
Compared to centralized platforms, DEX is less secured. Given that the transactions are between users, you have no one to turn to in case you entered a bad deal. With this, you have to be fully aware of the particulars of the person you are trading with to ensure you won’t end up scammed.
Con# 2: Complicated
The processes in DEX are not user-friendly. According to cryptocurrency trading platform reviews, centralized platforms are much more guided than DEX. Due to several decentralized exchanges, the platform is not fit for beginners.
Hybrid Cryptocurrency Trading Platforms
Hybrid platforms combine the best features of the first two platforms in one. It takes the security component of centralized platforms and the autonomy of users in DEX. However, instead of a centralized governing body, the platform uses smart contracts technology. It is a computer program that executes contracts between users with the use of codes. It gives you the best of both worlds in one technology.
Hybrid platforms take pride in the fast technology it has patterned with centralized platforms, which are copied from banks. With this, the system is tested and runs smoothly and quickly.
Pro#2: Secured Control
This type of platform also gives you full autonomy over your assets with an added layer of security. Though there is no governing organization or company, the smart contracts technology looks after you. Since users are bonded by contract, you are sure that the trades you make with your fellow traders are secure.
Con #1:Still Experimental
Some say that hybrid platforms are still purely theoretical, and there is still no platform that can perfectly combine the best of centralized and decentralized platforms. We are yet to see if even the best trading platform for cryptocurrency can perfect their journey towards hybridization.
Who needs cryptocurrency trading platforms?
Since cryptocurrency trading platforms are purely digital, it can be a haven for the tech-savvies. If you are one, just imagine how advanced the trade of digital assets in the platforms is. Since everything happens online, you’ll be able to make full use of your knowledge and love of technology. You’ll be able to grasp the essence of the platform and fully appreciate its functions. You are not only exploring this digital haven; you can also make a decent profit in your investment.
Frequent travelers need cryptocurrency trading platforms because the currency in this digital space is international. You can use your cryptocurrency to pay for your purchases abroad—no need to use your credit cards, which charge high-interest rates. International stores can accept your cryptocurrencies. You can even use them to pay for your airline tickets. All your travel expenses are paid without high transaction fees or exchange costs.
Even reputable banking institutions have cryptocurrencies in their portfolios. This means that they see the potential in the product. They know that investing in it is a good move for the future. Given that banks see the potential in cryptos, bankers should follow the lead. Cryptocurrency trading platforms can teach them the basics of trading so they would know why their institutions believe in the future of this currency.
Cryptocurrencies are promising investments. Because economic inflations do not govern them, cryptocurrencies’ value does not decrease when the economy goes down. Given the rise of technology, cryptos hold a bright future ahead of them, making them perfect for adventurous investors. If you are looking for investments that would give you a high profit in the long run, cryptocurrency trading platforms can provide your investment journey a boost.
New as it may sound, but cryptocurrencies help the environment. People use environmental credits, which is a cryptocurrency, for environment-friendly goods like solar panels. Cryptocurrency trading platforms do not only create systems for profit, but some also create them for good causes such as environmental preservation. That’s hitting two birds with one stone.
Since digital assets can be exchanged freely in trading platforms, then it can also be used in causes like fundraising. If you are a fundraiser, you can create a crypto wallet to raise funds from traders. Instead of the usual cash or bank transfer, you can be creative and add another fund-raising channel to capture a new market of donors. You’ll not only receive the money in real-time; you’ll also be allowed to raise funds from different parts of the world.
E-commerce Business Owners
Business opportunities can double if you increase your payment channels. Opening your business for crypto payments through platforms can be an excellent way to go. Since the charges even for high volume transfers are minimal, you can encourage customers to spend more. You are giving them a more substantial purchase power, which can set you apart from the competition.
Step-by-step guide on how to use a cryptocurrency trading platform
Step 1: Create a wallet.
The first step in digital assets trading is creating a wallet for your cryptocurrencies. You can get your wallets from software or mobile applications to begin your trade.
Step 2: Choose a platform.
Once you create a wallet, you have to choose a platform. Identify whether you’ll go for a centralized or decentralized platform. You can read reviews or seek recommendations from friends in selecting the type and specific platform you will be using from hereon.
Step 3: Look for patterns.
One of the basic principles in cryptocurrency trading is reading the charts or looking for patterns. Always study the history of your cryptocurrencies. Observe how they go up and down, and how far so you can predict future movements. If you plan to engage in day trades, then patterns are incredibly essential to make sure you are making the right move and won’t be in the losing end of the deal.
Step 4: Make a plan.
In creating a plan, you should consider two things, how you make profits and how you cut your losses. You can create an idea of what percentage of your digital assets you are going to sell every time the price goes up to make a profit. This also applies to losses because you have to identify the percentage of your assets you have to sell every time the prices are going down. This helps you create a rhythm to maximize profits and minimize losses.
Step 5: Experiment.
Starting your journey in cryptocurrency trading is a bold move. Since you are investing in intangible assets, you might not see how your money can grow. However, once you get a hold of the situation, you’ll see how promising cryptocurrency trading is. Once you’re already in that position, don’t be afraid to take risks.
Step 6: Take risks.
Since you already made a plan, stick to it. Once you see your digital assets are making stable profit and losses, you can start doing peer-to-peer transactions with higher projected returns. This will give you the best benefits of engaging in cryptocurrency trading.
Frequently Asked Questions (FAQs)
Cryptocurrencies are digital assets. Just like fiat money, you can use them to buy goods and services. However, what makes them different from traditional currencies is that cryptocurrencies use a decentralized system and are secured by cryptography. They are not controlled by a centralized authority, giving you full control over your assets.
If you want to engage in cryptocurrency trading, you’ll first need a wallet. A cryptocurrency wallet, or crypto wallet, is a program that stores your cryptocurrencies. It also enables you to send and receive your currencies, as well as monitor and track your cryptocurrency balance.
The largest cryptocurrency trading platforms usually help beginners by providing cryptocurrency exchange and wallet. To make it even better, these wallets are free. Once you are set up, you just need your recipient’s address and click send.
In choosing a trading platform for cryptocurrency, you have to identify your knowledge of the trade first. If you are a beginner, a guided type of platform is advisable for you. Central cryptocurrency trading platforms can give you the security in trading that you need. It’s like using an online banking website or application.
On the other hand, if you are already familiar with the basics of cryptocurrency trading, you can shift to decentralized or DEX platforms so you can have full control of your digital assets. That will allow you to explore the trade and do your transactions freely. It is a good ground for increasing your knowledge of cryptocurrency trading.
Since hybrid platforms are still experimental, we are yet to see a good platform of this type to emerge in the market. Reading reviews will also help you choose a specific trading platform for you. You can also study the rise and fall of cryptocurrencies and how users handled them to get an idea of what you’ll do later on.
Cryptocurrency demo trading platforms show you the basics of the trade without making a deposit. It gives you a free tour to gauge how the process works. You are granted a cryptocurrency trading platform demo account to use during the trial process. It helps you be acquainted with the user interface, technicalities, market dynamics, and the rules of the trade.
Through these demo trading platforms, you are entering secure transactions without the fear of losing any money because you are trying out the services without a deposit. Newbies are encouraged to try out the demos first before engaging in hardcore cryptocurrency trading.
Open-source software means the codes are available for viewing and modifications. They are shared publicly and transparently. Instead of using the software as it is, you are given a chance to modify the data to reach an agreement as to how the system should work. You can connect to the network and develop the codes as long as the changes you make are under the copyright terms. Also, every change made in the code is recorded for future tracking.
Though cryptocurrency trading is slowly making a name in the market, it is not treated the same way in different countries. Depending on the nature of the government when it comes to assets, some countries may be restrictive towards the trade.
For instance, countries like the United States widely accept cryptocurrencies as a part of their evolving payment channels and investments. With this, even the best US cryptocurrency trading platform goes neck-to-neck with other companies because of the increasing competition.
On the other hand, a cryptocurrency trading platform in India can have a different story. There were instances when the reservations on cryptocurrencies are so strong that the supreme court even took part in it. The court made the verdict of whether formal banking institutions can provide cryptocurrency services. These cases show how different the treatment of digital assets is across the world.
Cryptocurrency day trading is extremely short-term trading. It is a form of trade where the buyers' and sellers’ primary aim is to get profit. For instance, you will buy digital assets now because the price is low. After a few minutes, a particular bank announces that these digital assets can now be used to make payments. People will then wait for their chance to buy the assets. Once the price skyrockets, you can sell them for a significantly higher price.
Though making large profits sounds attractive, a large percentage of day traders, even in the best cryptocurrency day trading platform fail because of the tricky rules of the trade. You can never be sure whether the prices will increase or decrease, so buying the right digital assets is crucial.
Cryptocurrencies are not as anonymous as cash. However, the systems, especially in the new cryptocurrency trading platforms, allow users to enjoy a high level of privacy. If used correctly, you can make your trades confidentially. However, cryptocurrency trading is not entirely anonymous. Records are still left within the system to help investigate possible scams within the platform.
Losing your cryptocurrencies can be extremely frustrating. After all, you spent money mining and buying them. It is a problem that can occur even to users of a top cryptocurrency trading platform. Unlike misplaced money that can go on someone else’s pockets or just under your couch, lost cryptocurrencies remain in the blockchain circulation.
Once they are lost, they remain dormant because of the private keys needed to access them. Also, since the production of cryptocurrencies is limited, what remains in the market will continue to increase their values.
There have been significant debates by government institutions whether cryptocurrencies should be taxed. During the first years of cryptocurrencies, they are set to be untouched by taxes. However, as they grow in value, they slowly become subjected to taxing, but specific guidelines still apply.
For instance, mined cryptocurrencies using hardware and mining pools will only be taxable if they are traded and used to buy goods and services. Acquiring them will not make them taxable. However, once you start involving third parties in the transactions, that’s where taxes enter.
Supply and demand mainly determine the cryptocurrencies' values. Since there are still limited digital assets out there, we are only circulating what we have. If there is a high demand, then the prices are expected to increase.
However, one concern about cryptocurrencies is that they can go worthless over time. Once people don’t find any use for them, they can become useless and obsolete. Nevertheless, with the continuous improvement in technology, cryptocurrencies’ value is predicted to be far from going stale.
Unlike before, when cryptocurrencies were only obtained by mining, getting digital assets are accessible now. You can join mining pools or digital platforms that allow you to mine them easily. You can also get them from selling services online and simple digital asset trades.
The best time to sell cryptocurrencies is when the price increases to 25% of your original buying price. Unless the prices reach that high, you should wait a little longer. This increase ensures that you are getting the most out of your investment.
Yes, there are fake cryptocurrencies in the market. When cryptocurrencies were first introduced, several other types sprung. Due to the hype, there are hundreds of digital assets in the market. However, aside from the established cryptos, there are only a few legitimate alternatives.