U.S. Congress Struck a Positive Tone on Cryptocurrency in Latest Hearing A congressional hearing before the U.S. House Committee on Agriculture today struck a positive tone towards the impact that cryptocurrency and digital assets can have for
Both amateur crypto traders and retail investors alike are starting to lose interest within this booming cryptocurrency industry due to the rather lengthy and painful decline of the market. In spite of all this, cryptocurrency as a business continues to scale and evolve, especially cryptocurrency trading platforms.
New players to the cryptocurrency marketplace like Goldman Sachs and Intercontinental exchange (ICE) who is the parent company of the New York Stock Exchange (NYSE) are planning to allow their customers to trade Bitcoin futures. ICE on the other hand will offer swap contracts to banks so that clients can obtain their cryptocurrency the day following their purchase transaction.
While it seems some of the lower skilled investors are starting to leave the market the big players are starting to enter, which represents a huge potential for cryptocurrency trading. It’s more likely than not that cyber criminals will continue to target this industry more heavily now and in the near future.
Several security analysts have come up with a list of techniques that cyber hackers have utilized in order to hack user’s cryptocurrency trading platforms. The list below also includes some of the most common attack methods and highlights countermeasures used to combat these situations.
This includes a scenario where a security system message is sent from a cryptocurrency exchange letting you know that suspicious activity has been detected on your account. In response to this activity, the service send you a notification to your email along with a hyperlink and recommendation to change your password immediately in order to prevent your funds from being stolen.
Despite the simple scheme setup, many novice traders continue to fall for this as they click on the reset link and fill out several fields in order to change the old password to a new one. As you can imagine, once the old password field is completed, this information is transferred over to the hacker where he can readily access your account.
Here are a few rules that you need to follow in order to keep your accounts safe:
Example of spoofed email could be: firstname.lastname@example.org
Example of spoofed password reset link could be: http://passwordreset.binaance.com < notice the double aa.
Even the most savvy cryptocurrency trader will input the occasional typo when typing out their favorite cryptocurrency exchange into the address bar. Many have overlooked misspellings and security verification icons within their browser, which lead unsuspecting traders to input their username and password into a fake exchange.
In order to avoid this easy to make mistake be sure to:
The email link to your cryptocurrency exchange tends to be targeted just as much as your account itself. Once the hacker takes control of your email, he can then initiate a password reset from your cryptocurrency exchange, click the password reset link inside your email account, change your password, and then access your exchange.
This is where the two factor authentication method comes in handy. It’s the most effective protection mechanism to prevent unsuspecting attackers from accessing your account.
With TeamViewer installed, the attacker can access your computer in real time and hack into your exchange utilizing the Google authenticator embedded on your browser.
The 2FA is only effective if it’s installed on another device like your smartphone. This reduces the risk of being hacked considerably. You might find that the two factor authentication is a bit redundant, but you should keep in mind that hackers can outwit even the most successful traders.
It’s extremely crucial to follow these basic and simple guidelines which will significantly reduce the risk of you losing your valuable cryptocurrency in a potential hacking attempt.
With recent changes in regulation as well as customer sentiment rapidly shifting, it’s no surprise that cryptocurrency exchanges are embracing changes within this constantly fluctuating industry.
It’s important to note that there are only a few key players that handle the overwhelming bulk of crypto trading volume.
There are 3 types of cryptocurrency exchange groups. Custodial, noncustodial, and decentralized exchanges (also known as DEXs).
Custodial exchanges are those that act as a crypto wallet managers. They maintain user assets through an internal ledger. Customers therefore don’t have direct access to their wallets that the exchange holds for them. Only when the user decides to transfer his currency does he have a resemblance of control.
An example of these exchanges would be Coinbase, Bitfinex, Gemini, Bittrex, Bitfinex, etc. These are, by nature, centralized exchanges. An overwhelming number of trading volume (73%) runs through these custodial exchanges.
One of the most notable advantages of using these exchanges is the ease of use at which they come with. Nonetheless, this still provokes concern over the exchanges centralized nature. With hackers breaching their internal systems and attaining private keys to the exchanges, a user’s funds can be lost overnight.
It’s worth noting that more exchanges these days have been proactively taking measures to store funds in “cold storage” (storage without connection to the Internet) which provides an extra layer of security. However, what happened with the infamous Mt. Gox, Bitfinex, and recent CoinCheck hacks still have users weary when it comes to storing large amounts of cryptocurrency on their chosen exchange.
These types of exchanges also face a major concern over price manipulation as reflected in the recent probe by the US Department of Justice.
– Pros: easy to use interface, instant fiat to cryptocurrency conversion, customer support
– Cons: lack of privacy, high fees, and major target for hackers.
Most of these concerns over the custodial exchanges have prompted many users to push for more decentralized exchanges.
These exchanges, although still centralized, do not manage user wallets. They simply match orders through an internal order book and then take a fee on top for providing their services.
Some of the more popular noncustodial exchanges are Changelly and ShapeShift. The more popular exchange of the 2, Shapeshift, roughly takes in around 15,000 orders a day and averages around $10-$15 million in transaction volume.
The exchange’s internal mechanics are still not transparent, which is why they are still considered centralized. Foul play is still possible within these exchanges. Also worth noting, non-custodial exchanges tend to have low liquidity which scares away more sophisticated investors.
Last but not least, we have the decentralized exchanges, also known as DEXs. Many within the crypto community are rooting for their success. After all, isn’t the whole appeal behind cryptocurrency the idea of having a decentralized currency as well as a platform that no single party controls?
If that’s the case why do centralized platforms control so much of our crypto assets? On paper, decentralized exchanges are the perfect solution for concerns raised over centralized exchanges. They are extremely light in fees (if there are any fees at all), they are transparent in nature, and are highly secure as they allow you to control your own wallet.
There are several DEXs which execute orders under smart contracts. The chart below lists some of the current players in the space including companies that are building protocols around decentralized exchanges.
There are a few downsides to decentralized exchanges in their current state. Many of these downsides mimic the challenges of non-custodial exchanges.
Many within the crypto community agree that decentralized exchanges will take a more prominent role in the future. Megan Hernbroth, Head of Communications for Coinbase, stated that the decentralized exchanges are “very important to the ecosystem of cryptocurrency trading by acting as a middle ground”.
Also note, custodial exchanges play a major role in the future of crypto trading as they offer more convenience for the casual trader. Many enthusiasts believe that the future of crypto will contain more of a hybrid approach in which both centralized and decentralized exchanges are combined. These newly developed hybrids will utilize the benefits of both exchanges.
It’s inevitable that decentralized exchanges will continue to rise in popularity. With that said, it’s highly doubtful that they match the scale and popularity of custodial exchanges anytime soon. If the awareness of security and privacy continues to grow, we may witness the birth of these “hybrid solutions”.
With regulation concerns looming over the industry, presently those within the crypto community should not entirely comfortable with storing or trading their cryptocurrency with one particular exchange.
I think if there’s one thing that we can all agree on it’s that fees suck!
With that said, when it comes to the world of cryptocurrency exchanges, fees really aren’t all that bad. Especially when you compare them to your typical bank fees, smart phone fees, cable fees, and the list goes on. They’re not even close to the fees that you would pay to a traditional stock exchange brokerage. These fees are simply the cost of doing business and an inherently low cost at that.
Even though exchange fees are nominal, you’d rather save as much as possible, right? That way you can spend it on more important items like a drone selfie camera or glow-in-the-dark underwear. You know….the stuff that really matters. 😉
Before we dive into these “low fee” exchanges, let’s take into consideration what type of trader you are. You can generally categorize yourself into three types: the investor, swing trader, or day trader.
If you fall into the first 2 categories you really have no reason to sweat exchange fees. The difference between 0.10% and 0.25% is almost microscopic when trading once a month or twice a week. You’re really not producing enough trades for these fees to really make a difference.
Now if you’re a masochist like myself, and have chosen the world of day trading, then these fees will quickly add up. They do actually matter when it comes down to your bottom line.
With that said, let’s have a closer look at some of these low fee exchanges…
Binance is the largest cryptocurrency exchange by trading volume. It didn’t get there by some stroke of luck. The combination of their referral program, intuitive interface, amazing community, and you guessed it… low trading fees, put them at the top of the heap. At 0.10% on both buy and sell orders, it just doesn’t get any cheaper than this (well other than free I suppose).
Considering their popularity, vast array of altcoins to trade, their top-notch security protocol, as well as customer support, this is my number one place to go for low fee crypto trading.
If you want a more detailed review on Binance, I highly recommend you check out our article located here.
The Coinbase owned exchanged is one of the most popular cryptocurrency exchanges in the world as of December 2017. You can place order that will immediately get filled for as low as 0.10% (you would be considered a taker). Limit orders are free (you’re considered a maker).
That’s right, I said it, FREE! However, this all depends on if you’re a maker or taker on the order book. If you’re not familiar with maker and taker fees, let me explain. If so, then just skip past the highlighted section.
In essence, a maker fee is when a trader places a bid on a coin and waits to get it fulfilled by another trader within the exchanges order book. A taker fee is where a trader immediately accepts the highest bid (either buy or sell order) within an exchanges order book.
If you’re still confused, I highly recommend you check out our article here for a more detailed explanation.
With GDAX’s low to free fee structure, there is one caveat to trading within the exchange. You’ll only be able to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
This may be a deal-breaker to some, while others that are new to the trading scene may only care to get started with the select few pairs. Either way, the fees are some of the lowest in the industry so this may be a great place to get your feet wet when starting out on your cryptocurrency trading journey.
While HitBTC is not one the most popular exchanges, it is one of the cheapest. HitBTC has also been around for a very long time (since 2013 to be exact) thus has a long-standing track record.
Like Binance, HitBTC only charges 0.10% on both buy and sell orders. I wouldn’t necessarily recommend this exchange when transferring your countries fiat over to crypto, however they are a great cryptocurrency trading exchange for those looking for a beginner friendly solution.
For a more detailed review on this exchange, please check out our review here. We give you all the details on what makes this exchange stand out from the crowd.
This UK based exchange charges a little more than the two mentioned above, however is still relatively cheap when compared to the average fee of most exchanges in the market today.
CEX.io charges a 0.20% fee across-the-board (both maker and taker fees). This is still 0.05% under the standard trading fee for most exchanges which is 0.25%.
This trading platform has also been around or quite some time. They were established back in 2013 as one of the first cloud mining providers. Since then, they’ve become a multifunctional cryptocurrency exchange with millions of users worldwide.
Bitfinex is also fairly cheap when compared to the standard the structure of most cryptocurrency exchanges. They offer 0.10% maker fees and 0.20% taker fees.
If you’re not familiar with maker and taker fees, let me explain…
They also offer a tiered fee structure. This means that their maker and taker fees are lower the more you trade, however don’t get too excited. The lower tiers don’t start until you start trading $500,000 or more.
NOTE: I don’t recommend this exchange unless you’re an experienced trader with over a year of experience. Margin trading can be a dangerous for novice traders. I only recommend traders with at least a years’ worth of experience to potentially dabble in margin trading.
Any of the exchanges mentioned above will work for international traders (meaning you don’t live in the US), however if you’re looking for a more local exchange to support, you may find the exchanges below more accommodating.
China/Japan – Huobi is the 3rd largest exchange in the world by trading volume. This is the most widely accepted exchange among easterners.
There you have it folks! The lowest fee crypto exchanges to date. I’ll continue to keep this article updated as newer “low fee” exchanges are released.
Feel free to chime in to the comments below and let me know what other cheap exchanges you’ve used, so we can add them to the list.
Now get out there and start trading. Make sure to buy me something nice with all that money I saved you on fees. 😉
HitBTC is one of the older cryptocurrency exchange platforms which has been operating since 2013. It’s based out of Estonia and was developed by a man by the name of Dave Merrill. It’s the largest European cryptocurrency exchange, however is still not as widely known as some of the other larger exchanges like Coinbase, Bittrex, and Binance.
Many previous users tend to claim that HitBTC is one of the easiest and quickest exchanges to get started on. Personally, I didn’t find it any more convenient than any of the other cryptocurrency exchanges I’ve used. However, that doesn’t take away from the vast array of features that this exchange offers its users.
To start things off, there trading fees are at a low 0.10% (that’s 0.10 of a percent). If you’re a market maker, then you get a rebate of 0.10% back on your fees. There currently one of the only exchanges that are doing this at the moment.
These low fees might not seem like a lot at first, but it certainly adds up, if you’re day or swing trading (as opposed to investing long-term).
Additionally, , HitBTC lets you trade in various currencies like ETH, USDT, and of course BTC.
Another great benefit to using HitBTC is the fact that you can remain completely anonymous on the platform. This is important for many individuals as many users prefer to keep their privacy intact for various reasons.
The exchange even has a “Favorites” tab where you can save your favorite trading pairs and find them from this easy to find location. Many traders appreciate this feature along with the wide array of cryptocurrency pairs the trade with.
HitBTC is one of the more beginner friendly exchanges, however if you’re new to cryptocurrency trading, there may be a small learning curve. This goes for just about any exchange you get started on. I personally didn’t find it any easier or complicated than some of the other popular exchanges I have reviewed.
Another cool beginner feature that HitBTC allows individuals to take advantage of is demo trading. This enables you to gauge whether or not you’re cut out for crypto trading. This is one of the reasons why the exchange is a great place to start for beginners.
Free demo trading is unheard of within most cryptocurrency exchanges. If others offer it, they tend to request you make a trade of at least $5 or more (which really isn’t a true demo). This isn’t the case with HitBTC as they allow you to trade with the full demo whenever you like.
The only minor drawback that I could find with HitBTC is that they don’t offer a mobile app. This really isn’t that big of a deal, as many other exchanges don’t offer this as well (Binance has a mobile app and that’s the only one I’m aware of). You can still login to the site via your mobile phone web browser and make trades that way, but it’s just not as intuitive as a mobile app.
Like most other exchanges, you’ll need to go through a verification process if and only if you intend on depositing fiat currency into the exchange from your bank account. The process usually takes around 3 to 5 business days and will require you to upload a photocopy ID. This is the same process on all cryptocurrency exchange platforms.
After you’ve been verified, you are limited to trading $2,000 per week and $10,000 per month. One of the great aspects to HitBTC is that they let you increase this trading limit if you put in a request. You’ll be happy to know, they tend to always gets accepted.
When it comes to fiat transfers from your bank account to the exchange, HitBTC only accepts cryptocurrency transfers. In order to trade on HitBTC, you need to transfer your cryptocurrency from your crypto wallet to the exchange. I recommend these exchanges for fiat to cryptocurrency deposits:
Deposit fees can vary greatly depending on the cryptocurrency you decide to deposit. At the time of posting this, BTC fees are very high, however LTC is very low. I highly recommend you check out your deposited crypto fee before initiating a transfer. Click the image on the left for reference.
Deposits are not the only time a fee is charged. Each time you make a withdrawal, a fee is charged as well. A network fee is also charged for cryptocurrency and 2% flat fee is applicable with fiat. As I mentioned above, you want to check the withdrawal fees calculated by HitBTC before you decide to initiate. You should never be surprised over transfer fees after a transfer has been completed.
PRO TIP: I typically use LTC, BCH, or Dash when transferring cryptocurrency in and out of HitBTC. They are known to have the lowest fees. Once your currency has reached HitBTC, you can then transfer it over to BTC, ETH, or USDT in order to trade pairs.
The security features delivered by the exchange are quite generic and are delivered by all other exchanges. They include the industry standard two-step authentication process (2FA). This authentication is completed for all withdrawals and logins. 2FA is optional, however I highly recommend you enable it for all cryptocurrency exchanges you currently trade on.
The second essential security function they include with all accounts is their proprietary encryption technology. This is to protect your account from hacking attempts. HitBTC has an outstanding track record of protecting accounts from hackers.
The exchange has a system in place to let you know if someone else has been trying to access your account from another location. You’ll receive a notification to your email address if this occurs.
The interface of this exchange will either be the best thing you come across or the worst. Your take on it will depend on your level of expertise. They do a great job on explaining every little feature when you hover your mouse over the question mark bubble. Each tab and dropdown menu includes one to get you up to speed.
For the professional, HitBTC offers a wide array of features like stop losses, stop limits, and a newer feature you won’t find anywhere else…the “Scaled” tab. This feature allows you to set multiple orders at designated price points. This is also referred to as scaling in and scaling out of a trade. For more information on this topic click here.
The price charts for this exchange aren’t as nice as some of the other exchanges like Binance and Bittrex, however they do give you an option of utilizing the TradingView charts which I highly recommend over the standard charts.
There is also a unique feature called the “Trollbox” which works in the same way as a typical chat room. This allows you to chat with other traders and possibly gain insight into a particular cryptocurrency that’s gaining momentum. At the same time, be careful with all the FUD and shilling going on in there, as the place is a hotbed for that sort of activity.
HitBTC does deliver some features that are not found within other exchanges. Whether it be the demo version of trading or its ability to use “Scaled” trading, the exchange has succeeded in standing apart from the crowd for many years now. We can’t tell you whether the exchange platform is perfect for you, however I will tell you that it is worth signing up for.
Rather than relying on someone else’s experience, you can try it out for yourself using the demo version. If you enjoy your experience or find it useful, please leave a comment below and let others know what you think.
Ever since it was launched back in 2014, Bittrex has succeeded in gaining popularity among all the various cryptocurrency exchanges to this day. The company originated in the US and was founded by Bill Shihara, Richie Lei, Ryan Hentz and Rami Kawach.
It has been steadily growing over the last few years. One of the biggest reasons for its popularity can be traced back to its enhanced security features. This was made evident by the founders who are security professionals.
This area of expertise is a highly regarded profession within the crypto sphere. Hackers are always looking for new schemes and methods to infiltrate these high value exchanges. The team over at Bittrex allows cryptocurrency investors to rest assured that they won’t someday wake up to an empty online wallet.
Whether an exchange platform is worth using depends on the number of cryptocurrencies available for investors to trade with. After all, what is the point of using an exchange when your favorite or most popular cryptocurrencies are not listed? Believe me, Bittrex does not disappoint in this area.
The exchange includes a vast array of cryptocurrencies at well over 300 and counting at the time of this release. These include some of the more popular currencies like Bitcoin, Zcash, Ethereum, Litecoin, Cardano, Stellar, NEO, just to name a few. Moreover, the exchange platform lets you trade with BTC, ETH pairs as well as and Tether (the cryptocurrency equivalent to the US dollar). If you ever wish to secure your cryptocurrency investment from volatile swings, USDT (Tether), is the currency you want to secure your currency in.
[UPDATE] Bittrex is now one of the only cryptocurrency exchanges that is now offering US dollar to cryptocurrency trading. This is currently being tested in a select few states. For more information click here.
Signing up to the Bittrex exchange is a piece of cake. For those of you who wish to trade cryptocurrency pairs, it’s one of the best places to get started.
The platform does not require you to share a ton of information to sign up. All you need to provide is a name, email address, phone number, date of birth, and voila, you’re done! Your basic account will be ready to use.
However, if you wish to utilize other various services of the platform, you’ll have to go through Bittrex’s process of enhanced account verification and purchase a minimum of $10,000 worth of cryptocurrency. A high-tier account also allows you to make withdrawals higher than $10,000.
When we say Bittrex is one of the most secure exchanges out there, we weren’t joking. The platform has taken many measures to ensure its security. This also means that you might face a few inconveniences along the way. Just remember, it’s for your own good.
For instance, if you change your password, you won’t be able to withdraw money from your account for 24 hours. This helps the exchange make sure that you’re not a hacker who is able to access your account and withdrawal funds.
Also worth noting, Bittrex encourages its users to utilize the 2FA (two factor authentication) added to your account for more enhanced security. For those of you who choose not utilize this feature, you’ll be able to withdraw 1 BTC per day. Individuals who opt for the basic account (and basic safety features) will be able to withdraw 3 BTC per day.
If you wish to withdraw 100 BTC per day, you need to choose the enhanced account. It’s also not necessary for you to withdraw to BTC. You can withdraw any equivalent cryptocurrency amount to your soft or hard wallet.
When it comes to trading fees, you’ll find that Bittrex is a little more expensive compared to other exchanges within the industry. There are no discounts for those who trade high volume. So if you’re a baller, don’t expect Bittrex to cut you any slack as far as fees are concerned.
Regardless of your trading volume, or if your considered a market maker or taker, a 0.25% commission is charged across the board. Regardless of having a comparatively higher fee than a few other newer trading platforms, the number of users on Bittrex continues to rise. This is attributed to the secure nature of the exchange platform as well as its many years of stability. Bittrex’s fast withdrawal services along with its reliability have been a huge reason for its success.
Ever since its release in 2014, it has succeeded in attracting a high volume of traders. It’s only competition; with regard to longevity is Poloniex. Bittrexs volume of traders are still nearly double of what Poloniex has to offer. Their customer support is far more superior to Poloniex as well. A great achievement considering it has only been operational for 4 years.
In terms of customer support, the clear winner is Bittrex. This is because Poloniex is flooded with a large number of user complaints. A glimpse over various forums will reveal many dissatisfied Poloniex customers.
On the other hand, Bittrex answers queries on social media, posts updates and gets back to its users comparatively quick. While Bittrex is not perfect regarding their support, I’m sure you’ll find a few complaints about any cryptocurrency exchange.
Trading pairs offered by Poloniex are around 100. Compare this to Bittrex who deliver over 300+ trading pairs and growing, every single month. Now, if you’re only interested in trading popular cryptocurrencies, this might not matter to you, but for those of you who enjoy having a lot more choices to trade, Bittrex, is by far the better exchange.
Even though Poloniex has been operating a little longer than Bittrex, when it comes to delivering value, support, and selection, Bittrex emerges as the true winner.
Bittrex is primarily used for trading only and not for exchanging your fiat currency (like USD or EUR) to crypto.
Bittrex is an excellent choice for all you traders who are on the lookout for a secure platform to trade on. The enhanced security offered by this exchange makes it an excellent option for anyone.
The exchange delivers on with a ton of benefits, stability, longevity, selection, and security . This makes it one of the best platforms you can currently trade in.
(Tutorial for New interface coming soon)
Blockchain has revolutionized the way we look at monetary transactions and banking, however the 9 year existence of cryptocurrency has been peppered with some monumental hacks.
Blockchain technology will always push the envelope when battling against such cyber-attacks while the space is constantly evolving. Unfortunately, the criminal empire will always evolve alongside these changes.
Let’s take a look at some of the biggest exchanges over the past 9 years.
Mt. Gox, one of the most notorious incidences since bitcoin’s inception, which has set the bar very high in terms of its effect it had within the cryptocurrency community.
The incident claimed over 850,000 Bitcoin, which made headlines over the last 4 years and has been a major talking point during this time. At the height of its popularity, in 2013, Mt. Gox was the largest exchange in the world, responsible for over 80% of all Bitcoin transactions.
This resulted in $473 million worth of Bitcoin stolen. The details surrounding the hack are still not clear; however a large number of people were arrested for the involvement with these stolen funds.
Take note that it’s hard to refer to Mt. Gox as a pure cyber hack, as the CEO Mark Karpeles was indeed charged with embezzlement of these Bitcoin funds for his involvement in this case, not to mention various associates of his which were also involved.
Fast forward to 2018, where this most recent hack, which was unfortunately titled as the largest cryptocurrency hack in modern history, with regard to value, was stolen by hackers.
It’s not entirely clear how this happened, however the hacker gained access to private keys of Coinchecks online wallet and moved approximately $523 million worth of NEM coins.
The exchange was condemned for its horrible security standards. Those within the cryptocurrency community could not believe that all these funds were stolen from a single wallet address.
Nonetheless, the exchange worked diligently to reduce the damage done by eradicating the transactions, in an attempt to undo the damage as well as manage to create a tagging system that allowed them to track these stolen NEM coins.
Since these stolen coins were flagged, the hackers were not able to sell or convert these coins on different exchanges. In an attempt to make good with their customers, Coincheck vowed to commence repaying users for these lost funds.
Known as one of the largest cryptocurrency exchanges by volume, Binance is the most recent exchange to be hit by an attempted cyber-attack.
Unlike some of the other hacks that occurred in the past, Binance was completely perplexed by a far more sophisticated operation. With that said, the exchanges security systems picked up on the suspicious activity and the hackers were not able to make off with any of the stolen cryptocurrency.
On March 7, numerous users complained to Reddit and other social media outlets that the unauthorized transactions were taken out of their accounts.
According to Binance members, those hackers used phishing websites to hijack user logins. Once they acquired enough user login accounts, they created trading API keys within the stolen accounts.
On March 7, the cyber hackers utilized these keys to place buy orders on the VIA/BTC market, which pumped the price to an all-time high. These coins had been moved to 31 different accounts, sold at the highest price, and then moved back into the corresponding BTC accounts.
The Italian based exchange, Bitgrail, lost 17 million dollars worth of Nano tokens, estimated at around $187 million. The founder of Bitgrail, Francesco Firano blames the Nano development team and its blockchain technology, while the Nano team refuted those claims, thus blaming the founder Francesco Firano.
Since the inception of this news, Bitgrail has announced that these funds will be returned to their users, however the users of this exchange have to sign an agreement that rules out any future legal action against the Italian exchange.
This mining service had over 4000 bitcoin stolen, worth around $63 million at that time, by hackers who had allegedly hacked the company’s wallet.
The popular service did very well to recover after the attack, by displacing the current CEO. After several weeks, they resumed their service and pledged to refund all users affected by the cyber-attack, which started back in February 2018
We have certainly come a long way since the Mt. Gox debacle. We’re still in dealing with the effects and aftermath of the infamous incident, however last weeks news was announced that Mt. Gox trustees had been liquidating large amounts of Bitcoin to reimburse creditors.
If that wasn’t bad enough, the sales of these funds were in excess of 400 million dollars and is currently being blamed for the markets lows in early 2018.
The FBI continues to investigate, focusing on a UK-based company that is believed to have laundered 650,000 Bitcoin.
Fortunately those responsible for the Coincheck and Binance hacks have been far more proactive, which is a good sign for newer exchanges which tend to take measures regarding the stoppage of these cyber-attacks as well as the return of funds to their customers.
Binance has promised will award anyone with information that would lead to the arrest of the cyber hackers responsible for the attack, who would be awarded $250,000 worth of Binance Coin bounty for the offer.
These two exchanges have given users a bit more confidence with regard to cyber tax as a whole. They’ve gone to great lengths to ensure that the affected community is reimbursed as quickly as possible.
Bitgrail has come under heavy scrutiny from the cryptocurrency community due to the fact that the CEO of the company had never admitted full responsibility for the theft, unlike Binance and Coincheck which immediately announced future plans to refund all customers that were affected by the attack, most of which have been refunded.
Taking all these previous scenarios into account, it seems that these cryptocurrency exchanges are reacting to future cyber-attacks in a more proactive manner, however this is completely dependent upon the ethics and credibility of the CEOs of said companies and their respective management teams.
So you’ve been hearing a lot of hype about the highly profitable world of crypto margin trading. You probably stumbled across this guide because you need some real insight into what you should expect. If you’re looking for an unbiased review and guide on how to get started, you’ve come to the right place.
Margin trading allows users to trade with money they don’t inherently own by leveraging their position with borrowed money. Can 2-100X your initial deposit with this temporary loan. So for example, if we had an open position at 2X leverage with $50 of your own money, we would also trade with another $50 from a “lender” off the exchange, totaling $100.
Standard position trades are traded at a leverage of 1:1. With leverage trading you can double, triple, or even quadruple your leverage, thus exponentially increasing your profits (or losses).
|PRO TIP: limit your potential losses by implementing a stop loss with every margin trade. We cover more on the stop loss topic here.|
Margin trading allows anyone to open a position with more money than they actually have. You can imagine, this can be a “double edged sword” depending on your trading experience and technical analysis skill set.
Let’s look at a real world example…
Say you opened a leverage position with $100 of your own money. If you 2X your leverage then you’ll receive another $100 from the exchange bringing you to a total of $200. If the cryptocurrency your trading drops by 50%, it’s now worth $100. You essentially just lost the exchanges borrowed money and have to pay them back with the $100 of real cryptocurrency you just deposited, plus interest.
You’re essentially doubling, tripling, etc. your profit or loss percentages. If the cryptocurrency goes down by 10%, you really just loss 20%, however if it goes up 20%, you just gained 40%. Either way you look at it, you’re risking more to make more, and at a much faster rate.
Margin trading allows you to make larger bids than you presumably would be able to afford, at the cost of extra fees and risk.
There is an additional cost to margin trading in the way of interest. Paying interest on the borrowed capital (it could be the exchange or other users) can differ from one exchange to the next. The maximum amount that you can lose is the amount that you originally invested into the position, so if your coin goes down by 50% and you’re at a leverage of 2X, then you just lost all your coins.
This is also referred to as liquidation value. This value, is what the exchange automatically closes your position at. It’s there to ensure that you don’t lose any of the lenders money (or the exchanges).
Again, in the example we used above, if you lost $100 of your $200 position, then your trade is essentially closed by the exchange because you just lost all of the lenders money. However, in reality your position would close at around the $90-$95 mark, as you have to pay fees on the borrowed money.
Most people know what a long position. It’s a very simple concept to comprehend. You look for a place to “buy the dip” and if it goes up 10% on $100, you now have $110. Simple right?
|A short position is a bit more difficult to understand, however just know that this is a trade where you expect the price to decrease. If you think that a particular cryptocurrency is about to drop you could open up a leveraged “short position” by telling the exchange to lend you additional currency so that you can buy it back later at a cheaper rate.|
In other words, if you open up a 2X short position with $100, and it went down 50%, you would earn $100, thus coming out of the trade with $200. If the trade went up 50% then you would have lost $100 in the exchange which would automatically close out your position.
|PRO TIP: there’s generally a set time limit on margin trades. If you can’t execute your trades within the time limit, the leverage portion of your trade will be settled once that time limit has expired, regardless if you’re ready for it or not.|
|I strongly suggest you stay away from margin trading unless you have a lot of experience trading and a fundamental understanding of technical analysis. Trading is stressful enough without having to worry about borrowing someone elses money This will only magnify your stress if you don’t know what you’re doing.|
You can easily wipe out your entire trading capital with margin trading, if a coin suffers from a dramatic dip. If you’re simply trading a long position (with your own money), you can always recoup those costs in time by holding onto the coin (aka holding bags) in order to recover your funds.
However if you’re a “logical” risk taker with lots of trading experience and have always wanted to give margin trading a chance…..then go for it. Make sure to read over all the margin trading ratios and calls within documentation of any given exchange that you’ll be trading on before taking that dive.
For the latest “easy to follow” crypto trading guides, visit the trading guide section here.
If you’ve been an advocate for cryptocurrency for some time now, you’ll know that 2017 was nothing short of a fantasy ride for those who are lucky enough to invest. The market, spearheaded by sharp rise of bitcoin, all gained quick momentum in growth, which provided a sturdy base for investments.
Ever since the boon, cryptocurrencies have been in the limelight as well as attracted global interest from thousands of investors. Similar to trading shares within the traditional stock market, investing and trading in cryptocurrencies is facilitated through online cryptocurrency exchanges.
Top Cryptocurrency Trading Exchanges for 2018
The cryptocurrency exchanges provided below are a platform and hence a marketplace for investing in and trading crypto coins, similar to traditional exchanges like NASDAQ, NYSE and the like. They ensure that a fair and orderly opportunity is available to all investors.
Cryptocurrency exchanges are now comprised of websites where anyone can buy, sell or trade just as long as you have money to throw at it. At the time of this review, cryptocurrency exchanges are unregulated by government agencies. We’re currently in the Wild West of cryptocurrency and their corresponding exchanges.
With the crypto space expanding every day there are more and more altcoins being added to these exchanges. The opportunities to capitalize on this massive revolution in financial technology are massive.
Cryptocurrency exchanges earn their share of profit by charging a nominal fee on each transaction made through the exchange. The fee charged, therefore, depends on the volume of the transaction completed and is different for each exchange. Most do not charge more than .0025%, which is a quarter of a percent to buy or sell a coin. This is a very nominal fee when compared to typical stock exchanges.
There has been a tremendous increase in the number of crypto exchanges all across the globe with many rapidly evolving since the time of inception. Given how transactions are continuing to increase rapidly, it is likely that the number of exchanges will increase at an alarming rate.
With a number of options available , choosing which exchange to use as now become very important. You must understand and recognize the characteristics of a good exchanges. A few of them are listed below.
Of the many available options to choose from, here is a list of a few of the most noteworthy exchanges for 2018 on the basis of their rapport with investors, security, fees, accessibility and beginner friendly features provided to the new traders.
Spanning across most of North America and Europe, active in more than 32 countries at the moment, Coinbase is the most widely used and densely connected network for coin exchange. It is used by millions of people through these countries and therefore backed and trusted by many of these investors. However, the exchange is not functional for Asian countries except for Singapore, which makes it tough cookie for Asian investors.
The exchange provides an extremely user-friendly interface, and therefore is the first choice of most novice investors. The platform allows users to securely buy, sell, and store cryptocurrency through their online digital wallet. The platform has extended flexibility for accessing the wallet. Users can download an app for Coinbase, for both Android and iPhones.
Pros: Enjoys a good reputation among users, hassle-free interface, good security, easy accessibility, nominal fees, recovery of your funds through insurance if the site ever gets hacked.
Cons: Narrow geographical coverage, few coins supported (only Bitcoin, Litecoin, Ethereum, and Bitcoin Cash, and Ethereum Classic as of this post), GDAX is available for more technical traders.
The company has announced that it will expand their selection of crypto and add more to their platform in the foreseeable future.
Another very popular choice for most cryptocurrency enthusiasts is Binance which means ‘Binary Finance’. It is both a cryptocurrency (BNB coin) as well as an exchange, which has a very low transaction fee of 0.1%.
At the time of this review, it is the number one most highly traded cryptocurrency exchange by trading volume. It has held this position for quite some time. Binance is a centralized exchange. Their headquarters is based out of China. They are a rapidly improving exchange and plan to become a decentralized exchange in the near future. It may therefore be immune to a ban on cryptocurrencies from the Chinese government.
[UPDATE] Binance just opened a new office and bank account in Malta. Click here for the latest Binance news.
Pros: Low transaction fee, a wide range of crypto coins available.
Cons: Runs a bit slow during peak hours, earlier this year, as reported by other users. This has since been improved but you may experience the occasional slow page load while trading from time to time.
A US based cryptocurrency platform, Bittrex provides trading for over 300 cryptocurrencies at the time of this guide. They offer one of the largest selections of digital tokens available to any cryptocurrency exchange to date. They are also the only cryptocurrency exchange (at time of this release) that offers a more expansive selection of fiat to cryptocurrency pairs. They currently support Tether, TrueUSD, and USD to crypto pairs.
Since trading on the platform complies with US regulations, you won’t need to worry about your funds being hacked, as they are insured by the company. If you’re not familiar with stablecoins, click here. There are many advantages to using stablecoins as a base pair to trade cryptocurrency with or as a unit of storage to avoid price volatility.
The platform provided by exchange is very user-friendly. The company recently renovated their user interface to be more mobile friendly and responsive to various smartphones and tablet devices.
To begin trading with Bittrex, you need to register and login using an email ID. To withdrawal funds, a KYC needs to be completed by submitting details of a valid ID and phone number, which is typical for all exchanges.
Users also need to activate a two factor authentication for setting up an account in order to trade higher limits. However, the account verification is pretty quick and the support team will get you up and running more quickly than most other exchanges.
Pros: number of accessible bitcoins/altcoins, user-friendly, clean interface, high performance, reliable, high security. One of the most reliable and best exchanges out there.
Cons: High trading fees if you’re really reaching for a con, however their fees are standard in reference to most cryptocurrency exchanges.
Founded in 2014, Poloniex is another leading cryptocurrency exchange and is the second oldest next to Bittrex. The exchange continues to build a rapport among its potential investors and remains popular among its customers for providing a secure platform with a wide selection of altcoins.
[UPDATE] Poloniex has recently been acquired by the payment processor Circle for around $400 million.
One advantage to this exchange is that they provide the ability to margin trade, though only a limited number of coins are available for this type of trading. This is a welcome feature which is not present within many other exchanges.
The trade fees are moderate and dependent on the status of the investor. Trading on Poloniex involves a volume-tier, maker-taker setup for fee structure. For makers, the fee ranges from 0-0.15% and for takers it ranges from 0-0.25% depending on the quantity of the transaction. Again this is 1/4 of a percent, not to be confused with a 25% fee. Full fee structure can be viewed here.
Another feature of this exchange is the availability of a chat box which provides solutions to all user queries. Anyone on the exchange can post complaints or issues they are facing, as well as trading advice.
Pros: Fast platform, low trading fees dependent upon how you trade, open API, margin trading.
Cons: Horrible customer support, lag during large trading volume, withdrawal issues.
Founded in 2011, Kraken is a cryptocurrency exchange based out of San Francisco. It’s the largest exchange in terms of euro volume and is a partner of one of the first cryptocurrency banks. With moderate altcoin support, Kraken also supports fiat currencies and is the largest internationally accessible crypto exchange which makes it a top choice for many international users. For more experienced users, Kraken also offers margin trading for more experienced traders.
Pros: many reports of smooth experiences for users, very secure, good customer support, low trading fees, a large number of altcoin trading pairs.
Cons: Limited payment methods, many reports on the lack of customer service.
A newly developed exchange, KuCoin is a Hong-Kong based company supporting a wide range of crypto coins. Since the exchange operates on a crypto-to-crypto basis, it does not support fiat currencies. However, the prospect of trading digital assets of KuCoin are very exciting. Users can buy and sell the shares of the parent company called KCS (KuCoin Shares) and operate in a similar fashion as Binance (BNB coin). Using the exchanges proprietary coin is a great way to save on fees!
Currently, KuCoin supports approximately 57 coins, a number that is expected to grow in the near future as their customer base expands. The fee charged for each transaction is very low and is approximately 0.1% (1/10 of a percent) for some coins. Other coins have an incredibly low the like BTC at just 0.0005, LTC at just 0.001, and ETH at just 0.01.Withdrawal fees vary from coin to coin.
Pros: User-friendly interface, low fee, a wide variety of altcoins available.
Cons: Less trust and rapport among customers because the exchange is still fairly new. Only serves
Known for providing a ton of lower market altcoins which are usually not listed with most of the other exchanges. Cryptopia is another popular exchange for those looking at more high risk to high reward trading. Cryptopia stands out compared to other cryptocurrency exchanges due to the fact that they are a peer-to-peer network. This means that trades are done directly with other users.
The exchange also features a marketplace where users can buy, sell, and trade products using cryptocurrency as payment. The marketplace is similar to a classified ads website.
Pros: An exceptionally large repository of altcoins, low fee, decent customer support, and a ton of high risk/high reward coins to trade with (low market altcoins).
Cons: Low volume, confusing and clunky interface.
The exchange provides a wide range of services and features. This London based cryptocurrency exchange supports fiat currencies and allows trading across almost all countries of the world. It facilitates instant buying and selling of cryptocurrency through a simple bundled interface.
For professional trading, the exchange offers highly intuitive dashboards and margin trading for bitcoin and as well as various altcoins.
Pros: User-friendly, low fee structure, secure, global presence and wide acceptance (confidence in the exchange is high), good customer rapport, excellent customer service, offers margin trading.
Cons: Depositing funds can be expensive.
Other than the cryptocurrency exchanges listed here, there is an ongoing list of newer exchanges which are being open every day to provide unparalleled trading experiences to investors.
However, the exchanges listed within this article, are at the very top of the heap and should undoubtedly be a great starting point for your cryptocurrency trading needs. For seasoned traders, I recommend trying out some of the newer exchanges as they offer a lower fee structure as well as newer features that other more older exchanges may not offer.
Good luck and happy trading!
The Official Dummy’s Guide to Trading the Binance Exchange
Today we’re going to review one of the biggest and fastest growing cryptocurrency exchanges to date, Binance. In fact, it’s been able to reach the 2nd place rank out of all exchanges with regard to trading volume in just under 8 months. With crypto trading becoming more and more popular, Binance was able to ride out this trend. They currently offer an excellent user experience for traders who want to enter the market for the first time.
|Sure, there are so many other cryptocurrency exchanges out there, however why does Binance seem to have almost a cult like following? At the rate it’s currently moving, Binance may even reach the number 1 spot as the top cryptocurrency exchange in the world by the end of 2018.|
This popular exchange offers a wide range of altcoin trading aside from the typical Bitcoin and Ethereum pairs. In fact, Binance is already in the same league as some of the biggest exchanges like Bittrex and Poloniex who have been active in this space for well over 4 years.
They’ve managed to outdo the competition in many different ways including…
To start trading on Binance, you simply have to open an account, fund it, configure a few settings. After that, you’re off to the races. Check out the step-by-step guide below.
Easy right? Not exactly.Go to Binance , click the Register button and fill all the necessary information you’re used to filling out on these cumbersome applications. Don’t worry it only takes a few minutes.
Once you’ve filled out everything, submit your form and wait for a confirmation. Follow the steps within the email, click the confirmation link, and you’ll redirected to your very own Binance dashboard.
This is one of the most important steps in the registration process. It’ll give you that extra padding of security you’ll need so that no one can easily access your account. Once logged in, you’ll receive a message prompting you to set up your 2 Factor Authentication. You’ll be instructed to download the Google Authenticator app on your smartphone. Once that’s done, you’re ready to login. Just follow the instructions given in the message prompt and you’re good to go. Top-notch security at your fingertips!
With a basic Binance account the withdrawal limit is 2 bitcoin every 24 hours. With a verified account, you’ll need to scan your photo ID. Once approved, you can withdraw 100 bitcoin every 24 hours. Quite the difference right?
If you’re planning to be the next crypto millionaire, then you just might want to verify your account. Either way….it’s good get it done.
While you’re waiting for your photo verification to be approved, you can still trade, so let’s get to it. Go to your dashboard and on the top right hand side you’ll see a funds option above the menu bar. Hover over that and a drop down should appear. Click on the Deposits/Withdrawals option. It will bring you to the page where you can deposit your funds.
You have the choice to deposit various types of coins, which you’ll use to trade later. Choose which one you’ll want trade with and then press the deposit button. Upon doing that, you’ll be appointed a code for your dedicated wallet (it’s a mix of numbers and letters). This is the address that you’ll use to deposit your funds into your Binance account.
Take note that the wallet address differs per coin, so it’s better to stick to one wallet which can be used as your main deposit wallet. Once that’s done, transfer your coins from your other wallet (via Coinbase, LocalBitcoin, Gemini, etc. Take a look at our exchange page for options) to this new coin address.
Once you’re done with all the verifying, form filling, and wallet transfers, you can finally start trading like the big boys! Take your first step and hover over the Exchange option on the top left menu and click the Basic Exchange option. From there, you’ll see a list of coin pairs that you can trade.
Take note that you’ll be trading coin pairs, much like how you would in Forex (e.g. Bitcoin against Ethereum is ETH/BTC). If you know the coin pair that you would like to trade, you can search for it using the Binance search bar so you can instantly view your cryptocurrency of choice.
|PRO TIP: I highly advise you check out our technical analysis section of the site to discover the basics of fundamental trading, unless you just want to roll the dice and invest in what your friend told you last week.|
So, let’s use the example of Bitcoin and Ethereum. In the exchange, click on the ETH/BTC pair to buy/sell it. When you click on the pair, you’ll be brought to the order book where you can see details on the pair such as volume, last price, high 24 price, low 24 hour price, and a trading chart.
When you’re ready to trade, there are a few features you’ll need to take note of.. The buy or sell limit feature allows you to choose at what price you want to purchase the coin for. Once your particular coin reaches your limit price, the exchange will open your trade.
Say you’re trading the BTC/ETH pair. Once you set a buy limit order for 0.02 ETH for 0.01 BTC and your order is filled, you’ll have 0.02 ETH at the buy price of 0.01 BTC. This may be hard to grasp at first, but once you do it a few times, you’ll won’t ever forget it.
For more detailed information about this process, check out this video
Also take note of the Stop Loss feature which is a function that allows you to close a trade once the pair hits a certain price (usually below your buy in price). This lets you control how much of a loss you’ll incur in the event that your trade doesn’t go too well. This is a significant feature in trading due to the fact that it allows you to manage your funds wisely. It’ll ensure you never lose more than a given percentage in case your trade goes south.
The Binance coin, also known as the BNB, is Binance’s own token which was specifically created by the exchange. This coin is the preferred method of paying for fees incurred while trading on the platform. The fees include buying and selling, as well as withdrawal fees in case you decide to move your currency to another exchange.
One of the great things about using the BNB coin is that you will get a 50% discount for your transactions in the first year of trading withinthe exchange.
This is to entice more people to use the coin and participate in the exchange more often. On the second year, you’ll receive a 25% discount, 12.5% discount in the third year, and a 6.25% discount in the fourth.
Another great feature of BNB is that it’s used alongside the Binance Launchpad to allow you the opportunity to directly invest in ICO’s through Binance. If there’s is a particular ICO you’ve been researching, Binance will allow you to have first dibs on the ICO using their BNB token. Pretty cool right?
Start trading on this extremely well-designed crypto trading platform today. Remember, only trade with money you can afford to lose to ensure you have a great and potentially profitable experience. Good luck and happy trading!
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