Security, Commissions, and Volume— On the way to finding the right exchange
Crypto exchanges are the most suitable places to evaluate your cryptocurrencies. Since the adaptation of cryptocurrencies in everyday life is a slow process, most people still show a tendency to turn cryptocurrencies primarily into FIAT. But there is at least a new stock market as well as a cryptocurrency. We need to have detailed information about the exchanges to choose the exchanges that are suitable for ourselves.
In addition, the expectations of each person on the stock market may vary. Some people prefer central exchanges while others prefer decentralized exchanges. In addition, the location, daily volume, security and customer service quality of the stock exchange are the important factors that enable us to choose the exchanges.
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Besides, those who make financial gains from the price changes of the cryptocurrencies that we call trader are more interested in the interface of the exchange, its usefulness, the daily volume and ease of use.
Besides, I cannot say that we can get exactly what we want while searching for the perfect stock market. In this article, I would like to tell you some of my experiences and talk about a promising project as a solution.
When choosing an exchange, the most important thing to consider is Security.
Digital currency exchanges have been the subject of some of the most infamous incidents in crypto. The Mt.Gox exchange hack in 2014 saw the loss of 740,000 Bitcoins, the equivalent of $430 million at the time. Most recently, Canadian exchange QuadrigaCX admitted it was missing around $137 million in cryptocurrencies after its founder died in late 2018, apparently taking all the private keys to the exchange wallet to his grave.
There are many security flaws, hacks, and scams that have plagued the crypto-sphere for the past decade, and unfortunately, there have already been a few high profile incidents 2018:
- $500 million worth of NEM stolen from Coincheck — The 2nd largest exchange in Japan
- $195 million hacked from BitGrail — Italian exchange and the first to list Nano
- $45 million hacked from Binance — One of the largest global exchanges
- $40 million stolen in Coinrail hack — A boutique exchange in South Korea
- $60 million hacked from Zaif — Exchange in Japan
Last month, Binance, one of the world’s foremost exchanges, shown as the best exchange in the world by many authorities, got hacked. As a result, $ 42 million worth of cryptocurrency was stolen. Following this, Binance has temporarily stopped to deposit and withdraw from the exchange and increase security measures.
Last week, when the new security system is activated, we will see if Binance can return to its old days.
The volume at the exchanges increases your profitability by allowing you to instantly convert your crypto into different crypto currencies.
The founding of Bitmax is listed as 2008. They’ve come a long way in this time. They have their own Btmx tokens and the price is around $ 0.1. Thanks to Proof of Stake and Mining, you can also benefit from discounts from transfer fees. Before you mention all this, let’s talk to some data. I would like to give some example of Bitmax’s ”Reported Volume size especially in Coinmarketcap and show you the table.
Bitmax user interface is a stock market which is great. I also like the mobile version and the facilities it offers and the altcoins it hosts.
But a few videos that have recently appeared on Twitter and an article published in coindesk show that only a few exchanges are the real volume in the market. The data in the Coinmarketcap is manipulated by exchanges like Bitmax.
For more information, you can visit Blockchain Transparency Institute and read latest reports
TRADING FEES AND SUPPORTED COINS
Crypto exchanges (and other exchanges, such as for stocks, commodities, etc.) charge fees. Fees usually vary depending on the exchange, crypto and fiat currencies, and the size of the transaction. Usually, crypto exchanges can charge a flat fee, which is the same disregarding the size of the transaction. It can also be a percentage of the value of the transaction or a combination of both.
These fees are crypto exchanges’ main source of income. They allow the exchange to survive, pay salaries to tech support and provide customer services. In addition, fees allow crypto exchanges to invest in infrastructure, which makes them more secure, faster and allows including more cryptocurrency and fiat trading pairs.
Trading commissions of some exchanges and supported coins:
Coinbase: Coinbase includes a spread of 0.50% for each cryptocurrency. For example. if the price of a cryptocurrency is $1,000, then Coinbase will display a price for consumers of $1,005
Supported Coins: It offers Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) trading. Recently, Coinbase added 0x (ZRX), its first ERC-20 token.
Binance: Both makers and takers are charged 0.10% if the trading volume is below 100 Bitcoins or below 50 BNB.
Supported Coins: Binance supports over 380 cryptocurrency and fiat currency pairs.
Hitbtc: HitBTC charges market takers a 0.1% fee. It’s not the lowest fee compared to the other exchanges, but it’s the same disregarding the value of the transaction. Moreover, HitBTC rewards market makers with a 0.1% rebate.
Supported Coins: It supports over 300 cryptocurrencies.
Bitfinex: For makers, fees start at 0.10% for a volume up to $500,000 but decline to zero if the volume exceeds $7.50 million.
Supported Coins: It supports most major and small cryptocurrencies.
Kucoin: For trading, KuCoin takes a 0.1% fee for each transaction. However, users that hold KuCoin’s native KCS tokens can get discounts of up to 30% depending on the amount of KCS they hold.
Supported Coins: It is based in Hong-Kong and supports over 180 cryptocurrencies.
Bitstamp: Bitstamp doesn’t offer separate fees for market makers, although it does specify that for higher volumes, they can obtain customized fees. Other than that, the usual trading fees vary from 0.10% to 0.25% based on the trading volume.
Supported Coins: . It covers Ripple (XRP), Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), and cryptocurrencies. You can deposit/withdraw the US dollar and the Euro.
A stock market with many distinctive and advanced features: promising and promising stock exchanges:
XCRYPT — A different perspective
I came across this project when I was looking for a suitable one. I would like to talk about some of the features of this exchange.
Because the features it offers are responsive to most of the question marks on security, volume and commission.
Commission: Commission fees are relatively less in the crypto world compared to traditional exchanges or compared to banks. However, the fact that people who traded in the cryptocurrency do hundreds of transactions per day, even though they are small in the number of 0.2%, they can reach serious figures as they accumulate.
All exchanges charge approximately 0.2% commission from traders. However, this stock market develops a new system, the stock market transactions in any way does not charge commission. xCrypt adopted a zero fees method, freezing them all.
Security: After several known events, to which we will, unfortunately, keep assisting in the future, the exchanges are exposed to the counterparty risk, a huge problem, which makes the users lose loyalty. Unlike central stock exchanges, decentralized exchanges are much safer in terms of security. xCrypt adopts the highest security standards on the CCSS market, combining them with the CE DEX technology.
It happens too often that, due to problems related to the security, the exchanges must activate security measures freezing the users’ balances sometimes longer than 24 hours (like Binance incidence) xCrypt has in store big investments on the client service, to increase the added value and the loyalty process xCrypt has a solid regulation, offered by its host country, Malta.
The infrastructure that supports Security Tokens and ERC-721:
ERC721 a non-fungible token standard designed to represent assets on the blockchain. Security tokens are tradable financial assets such as bonds, debentures, notes, options, shares (stocks), and warrants. And if we take the example of stocks, you might understand that it is a way to own a part in a company without taking actual possession of it. Unlike other exchanges, this stock market is different from the others in order to include these two different crypto assets. In this way, you can have the opportunity to use different facilities while diversifying your investments.
Debit Cards: The process of adaptation of blockchain technology to the real world is somewhat painful. A few projects that I have followed and know the project stage are preparing to launch cryptocurrency debit cards.
But for the first time, we see that an exchange has issued its own debit card and prepared for the adaptation process to daily life. xCrypto has also introduced a special innovation on this issue. I Always dreamed about storing my top cryptocurrencies on a single usable physical & virtual card. xCrypt Card users will be able to shop worldwide or withdraw cash at ATM’s.
Social Media Trading: Xcrypt SAF (Social Analytical Funding System) system by xCrypt is an advanced investment solution, which enables trading on one account managed by a skillful and experienced trader using his own funds and joint funds invested by other traders in his SAF account. Social Media Trading works as follows: a manager creates an account, selects trading conditions, makes an offer to investors (indicates minimum deposit amount, amount of the compensation, rollover period, etc.) and deposits it. Investors look through the rating of traders and choose one or several accounts to invest their funds in. Then as a result of trading manipulations by a manager, profit/loss is distributed among account manager and investors according to a ratio based on their shares in this account.
As a result, when looking for the right exchange, we must pay attention to safety, commission fees, volume, and innovations. I’ve always loved trying new things. Although the daily volumes of the stock exchanges such as Binance and Bitfinex are very high, I think they have difficulties in adapting to security and innovations. So never forget to try new things and be fearless in finding the stock market with the most suitable features.
Legal Disclaimer: This paper is for general guidance only and it does not constitute legal investment advice.
Disclosures: Im not a part of any cryptocurrency or any exchange. I have not been paid or otherwise hired by them. All risks are your responsibility when investing.
Security, commissions and volume— On the way to finding the right exchange was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.