In this article, we will discuss the qualities and characteristics that make for the best bitcoin trading site. There are many different Bitcoin trading platforms to choose from and it can take a lot of time to find the right one. We will help you find a crypto trading platform for your needs and understand what questions you need to be asking. We must first define which criteria a Bitcoin trading site must meet in order to be considered the best. We will cover the following topics:
- How Can I Find the Best Bitcoin Trading Site?
- Crypto Trading Liquidity
- Crypto Trading Tools
- Crypto Trading Security
- Crypto Trading Fees
- Crypto Trading Deposit & Withdrawals
- Crypto Trading Regional Availability
- Available Trading Pairs
- Crypto Passive Trading
- Crypto Trading Bots
- Which is the Best Bitcoin Trading Site?
Best Bitcoin Trading Site
How Can I Find the Best Bitcoin Trading Site?
One of the most common questions we get is: which is the best bitcoin trading site? This is a very difficult question to answer, because there are hundreds of different crypto trading sites that specialize in different things. A crypto trader must decide for himself/herself what qualities of a trading site are important for their own trading. They must ask more precise questions, such as:
Which is the most beginner-friendly Bitcoin trading platform for US traders?
Which crypto trading platform offers low fees on credit card deposits?
If you find it hard to specify your own requirements, you will learn more about how to think about this problem in the course of this article.
Crypto Trading Liquidity
Crypto trading is a new market and still has crypto exchanges and trading platforms’ isolated markets. This means that liquidity can be limited in some trading platforms. If you choose one of the major trading platforms, such as Binance or BitMEX, and intend to trade one of the major cryptocurrencies such as Bitcoin or Ethereum, liquidity is nothing you need to consider.
However, if you are interested in smaller crypto trading platforms or trading in smaller alt coins, it is very important to check which trading platform offers the most liquidity in market. This is because trading spreads are highly dependent on liquidity. The lower the liquidity, the higher the spread – spreads can easily eat up your margins. The easiest way to investigate liquidity is to go to Coinmarketcap, click on the cryptocurrency you are interested in and then click on markets. You will see all markets listed in also the trading volume, which is the same as liquidity.
Crypto Trading Tools
Different trading platforms offer different types of crypto trading tools for their customers. Some offer very good tools for crypto technical analysis, while others offer helpful tutorials for their traders. There are also platforms that offer free news, webinars, free trading signals and much more. It can be difficult to know what to look for as a beginner, but a platform with good education is always good for beginners. Advanced traders usually know what tools they need for their specific trading. eToro has a beginner friendly interface, but they do charge high fees. Binance and BitMEX offer good trading tools for technical analysis.
Crypto Trading Security
Crypto trading security is a difficult point to review and compare; traders either do not understand the terms or have difficulty comparing similar terms. If you use a large, well-known trading platform, you don’t have to worry so much about security. There are often many options you can do yourself to strengthen the security of your own account, such as:
* Withdrawal limits (Daily or weekly withdrawal limits)
* White IP (You can specify that its only possible to make withdrawals from your own IP)
*White listed withdrawal addresses (You can select which withdrawal address are allowed)
* Google Authentication (For login and withdrawal requests)
* Extra password for trading (Some platforms request a 2nd password for trading or withdrawal, different to the login password)
* Email verification for withdrawal (You can choose to verify withdrawals from your email)
One simple way to reduce the risk is to use 2–3 trading platforms and to have a part of their capital on a hardware wallet.
Most large trading platforms, including Binance and BitMEX, offer the standard security features nowadays.
Crypto Trading Fees
Crypto trading fees are extremely important for day trading and high frequency trading since you have small margins on each trade. The lower the frequency you have in your trading, the less important crypto trading fees are for you. If you are HODL, you hardly need to worry about fees. If you are a swing trader or trend trader you should compare fees, but if there’s only a marginal difference between platforms, it’s more important that the trading platform offers the right crypto trading tools for your trading. Binance offer the lowest crypto trading fees among all crypto trading sites.
Crypto Trading Deposit & Withdrawals
Crypto trading deposits and withdrawals are not so important to compare if you have little flexibility. In the worst case, it is always possible to make deposits or withdrawals via another exchange or trading platform that you do not just use for your trading.
Crypto Trading Regional Availability
The region availability of the trading platform is extremely important, since it will decide whether or not you can even use the platform. Many crypto trading platforms are banned in the US, for example. If you are living in a country with tougher crypto regulations, you’ll usually find there’ll be some financial limitations.
You must check crypto trading regional availability first. European countries generally allow you to trade on most platforms while the USA, Singapore and Hong Kong usually have limitations on them.
Available Trading Pairs
It is very important that the trading pairs that you are interested in trading or investing in are offered on the platform you are thinking of using. The most important thing to consider is whether fiat markets or crypto markets are offered. For example, if you want to trade BTCUSD but this isn’t offered on a chosen platform, you may need to reconsider. Binance offer many crypto trading pairs and have replaced fiat currencies with stable coins. BitMEX, meanwhile, does only offer a few trading pairs.
Crypto Passive Trading
There are many who do not want to spend their full time on crypto trading – crypto passive trading can be a good alternative in this case. This requires less involvement, but at the same time you leave the decisions to someone else. eToro is the platform that is best known for offering its customers this option.
Crypto Trading Bots
Many traders use crypto trading bots to facilitate their trading. The absolute best thing about crypto trading bots is that they can do your trading while you sleep or do other things. However, you should not fall into the trap of thinking it’s possible to buy a crypto trading bot, switch it on and just collect the profits month after month. A crypto trading bot needs to be optimized and maintained to create a sustainable profit over time. Binance and BitMEX offer the availability to connect crypto trading bots via their API.
Which is the Best Bitcoin Trading Site?
Binance is probably the best overall trading platform for beginners and advanced traders. Binance offers low fees and good liquidity. Binance also allows US traders and has an API for crypto trading bots.
BitMEX is the best bitcoin trading platform for advanced traders that are looking for high leverage and advanced trading tools.
eToro is the best bitcoin trading platform for passive trading, social trading and investment in managed crypto trading products, such as eToro Crypto CopyPortfolio.