In this review, we will present the best Bitcoin trading platform 2018 by analyzing five different platforms. We introduce several indicators to evaluate and differentiate platforms in terms of their service quality.
Stay tuned as we list out security features, trade functions, fees, deposit and withdrawal methods of each individual bitcoin trading platform. The platforms analyzed by this guide are BitMex, Bitfinex, Bitstamp, Coinbase, and Kraken. The information provided by this guide has an aim to guide you towards the best Bitcoin trading platform 2018 for you.
Little bit about Bitcoin
Created by an anonymous developer called Satoshi Nakamoto in 2009, bitcoin became the pioneer of the cryptocurrency world. The coin has been and is still the largest digital coin in the world due to its decentralized nature. No one controls Bitcoin, which is used to transfer money around the world for low network fees.
In recent months, its value skyrocketed due to the increased market awareness and forks implemented in 2017. Adding to that is increased difficulty for mining and lower supply. Thus, bitcoin is expected to grow in value though large energy consumption for its production still remains an issue.
What Indicators Should I Check Out?
Almost every crypto trading platform out there offers bitcoins for trade. Thus, you have numerous choices when it comes to buying and selling BTCs. The best way to differentiate them from each other is to use following indicators of great trade platform:
- Deposit and withdrawal methods
- Fiat currencies available
- Margin trading functions
- Registration, identity checks and verification
- Security and support features
- Regional service availability
- Exchange rate and fair fee structure
If you are looking for a variety of margin trading functions, then BitMex is a place for you to start. The platform offers bitcoins with the help of limit, market and stop loss functions. You also have several other tools that would help you create an appropriate order, such as fill or kill and Reduce-only. Leveraging is available for up to 100x, providing a large rate of profit or loss activities.
Service is available globally while the interface is geared towards experts. The fee structure is organized through maker or taker costs, ranging from 0% to 0.075%.
- extensive amount of margin trading functions
- no fiat currencies accepted
- no verification needed for trade
- beginners might find interface confusing
- service available globally
Bitfinex is the largest USD to BTC trade platform that offers services globally. Its margin trading and interface are oriented towards experts, while beginners might find the trading platform a bit confusing to use. The accepted deposit method is bank transfer only with fees ranging between 0% and 0.2% depending on the volume achieved.
You can check out the BTC margin trading functions in the snapshot below.
Security has been upgraded following the hacking incident in 2016, with several safety tools now available. These are 2FA, email encryption, IP whitelists, email notification system and session management. You do need to provide proofs of identity and address before you are able to trade with bitcoins at Bitfinex.
- services are available globally
- identity verification is a must-do
- numerous security tools
- only bank transfers accepted
- low trade costs
- beginners might feel lost with the complicated interface
- complex margin trading
Bitstamp is a crypto platform based in the UK, offering instant exchange and margin trading services for its clients. The verification of the identity is mandatory while bank transfers and credit cards are the accepted fiat funding methods. The margin trading platform can be seen in the snapshot below.
Services are available globally, with fees standing at 5% for credit cards and 0.05% for bank transfer payments. Security is of the higher-end in the industry offering cold storage of coins, 2FA, and email notification system.
- margin trading available for traders
- high 5% fee for credit cards
- services reachable worldwide
- verification of the identity is a must
- low transaction fees for bank transfers
- adequate security
Coinbase, alongside with Bitfinex, is a bitcoin trade giant. The company offers cryptocurrency with the help of bank transfers and credit cards, though PayPal is available for withdrawals. Service is available only for verified users originating from a limited list of countries (32 of them).
The exchange offers simple trade function while margin trading is available at the subsidiary platform of Coinbase, called GDAX. You can check out the order system below.
Although insurance is offered for all coin assets, personal protection is low at Coinbase, as you have only 2FA protecting your balances.
- GDAX adds liquidity
- no margin trading
- large volume trade
- verification is needed
- PayPal withdrawals available
- only 32 countries supported
- the low number of security options
Kraken exchange and trading platform offer functions for both starters and experts from the cryptocurrency industry. The available deposit methods are bank transfers only while trades form around the world can make USD or EUR payments for bitcoins. Margin trading is available for unverified users though verification would bring about larger trade limits. You can check out the trade widget ion a picture below.
As for the security, you have cold storage, 2FA, PGP/GPG email encryption and global settings lock at your disposal. Fees range from 0% to 0.26%, depending on the monthly achieved trade volume.
- worldwide available services
- only bank transfers accepted
- ability to purchase bitcoins with unverified account
- verification process might take a long time
- availability of both margin trading and simple exchange
- low trade fees
- availability of different fiat currencies (EUR, USD, JPY, CAD, and GBP)
- adequate security tools
Taking everything into account, we deem that starters can try out Coinbase or Kraken. It is easy to understand the functions and the interface are geared towards beginners with these platforms.
Bitfinex is probably best for more expert traders due to a large number of functions and volumes available for trade. Apart from Bitfinex, advanced users might find Bitstamp or BitMEX interesting as well.