This article also shows how to measure indicators of just how good the platform is. Each of the exchanges is analyzed in terms of verification demands, trade costs and functions, deposits/withdrawals and support/security.
Brief Information about Ethereum
Ethereum (abbreviation ETH) is an open-source crypto network that allows users to create smart contracts. The main purpose is for every participant to run its own application, decentralizing the control of the coin. The network fees are measured in ETH, providing the necessary safeguard against over-inflation of the coin.
In Jan 2018, the ETH’s volume accounts for 96.5 million coins, at the value of $7.7 billion on the global market level.
Compare Trading Platforms
There are several indicators that you should check out and compare when to find the best Ethereum trading platform 2018 for you. The said factors are:
- Verification requirements: is trading private?
- Service availability: is my country supported?
- Support and Security: how safe are my funds? Are inquiries ignored?
- Deposit/Withdrawal methods: how many of them are available?
- Fees: how much should I pay for trades?
- Trade functions: is margin trading available?
Answers to these questions would lead you towards the best trade platform for you personally. You can also trade with more than one service provider, as many of them are similar.
Coinbase is one of the largest cryptocurrency platforms in the world, offering USD and EUR trade in exchange for Ethereum. The verification is a must since company follows strict KYC and AML policies, including scanned ID and proof of address.
Using USD currency, you have a simple instant purchase and sale functions for Ethereum trade as shown below.
GDAX, being Coinbase’s subsidiary, manages margin trading, while providing an additional supply of coins. Coinbase offers bank transfers and credit/debit card deposits/withdrawals while the service is available in 32 countries only. Fees are charged for deposits/withdrawals, with wire transfers being free and credit cards 3.99%. You also have a PayPal withdrawal option, also costing 3.99% of the value transferred. If you are looking for Paypal deposits you should read our blog post, Buy Bitcoin PayPal.
Security is of the adequate level, as you have 2FA, IP address approval, and log/transaction record tracking systems.
Started in 2014, the Poloniex platform offers several trade markets for its clients. You have instant exchange service, margin trading, and the lending market as well, as shown in the screenshot below.
Orders themselves are crypto-to-crypto oriented, meaning that fiat currencies are not available. Service is globally available while fees are implemented through maker/taker structure, ranging from 0% to 0.15%.
Security is of the low level when compared to other exchanges, as only 2FA is available, even after 2014’s hacking incident.
Much of the Coinbase’s policies and features can be found at GDAX since the platform is a subsidiary product of the Coinbase. The only real differences are the availability of margin trading and wire transfers being the only available funding method. Rest of the indicators (support, security, regional coverage, and verification demands) remain the same as with the host company.
You can check out the margin trading tools in the picture below.
Bitfinex is the largest bitcoin to USD exchange in the world. The exchange has also included Ethereum as part of its trade platform. The margin trading is complex, geared towards crypto experts, as shown below. Similarly to Poloniex, Bitfinex offers margin lending.
USD and EUR are the accepted fiat currencies while funding is available through bank transfers only. Verification is a must if the trader wishes to fund account with fiat money while services are available globally.
Security is actively improved, with several tools being available:
- Two-factor authentication (2FA)
- Email encryption
- IP login limitations and whitelists
- Login email alarm system and history
- Keep the sessions alive or cut them off
Started by a company called Payward Inc. in 2011, Kraken, much like Bitfinex, offers both crypto-to-crypto and crypto-to-fiat trade. With margin trading and instant exchange services available, Kraken orients towards both experts and starters, as shown below.
Unverified users can purchase up to $2.000 daily and $10.000 monthly while full verification brings $200.000 worth of trade monthly. Service is available globally while security features are coin’s cold storage, 2FA, PGP/GPG email encryption and global settings lock.
Fee structure imposes maker/taker costs that range from 0% to 0.26% while bank transfers are the only available deposit/withdrawal method.
The best Ethereum trading platform 2018 is dependent on your demands. Kraken would be on the top of this list if the verification process did not take almost a month to be finalized. The margin trading is available in most of the platforms, with Coinbase being the only exception.
Further, verification is generally required, with only a few platforms (Poloniex and Kraken) accepting unverified trade accounts. You can now compare the pros and cons of these exchanges so that you can find the right one for your needs.
In this article we focused on the best Ethereum trading platform 2018. However, we have many similar blog posts. One blog post that might be interesting for you is the best Bitcoin trading platform 2018.