Finding the best cryptocurrency exchange can be hard and there are a number of factors to take into account.
As far as arbitrage trading goes, the best cryptocurrency exchanges are those with the greatest deviations of the price, compared to the rest of the cryptocurrency exchanges, the ones that you can potentially profit from the most.
In other words look at the cryptocurrency exchanges that have the lowest prices and the highest prices. These are the cryptocurrency exchanges I would open accounts with first. The accounts should all be free to open and won’t require you to deposit money in them so you have zero risks.
The next thing you want to look at are the fees.
One ‘cheap’ cryptocurrency exchange may have the best/lowest rates to buy cryptocurrency but may have the highest fees. In other words, the exchange may have prices that are 2% lower than any other exchange at all times but may charge 3% transaction fees. Compare this to a seemingly ‘expensive’ cryptocurrency exchange that has prices 2% higher but only charges a 0.25% transaction fee.
The end result is the ‘expensive’ cryptocurrency exchange actually works out to be the cheapest after you’ve factored in trading cryptocurrency costs.
Another key factor is the ease in which you can get money in and get money out.
Some cryptocurrency exchanges will accept fiat and cryptocurrency. Other cryptocurrency exchanges only take cryptocurrency payments to fill your account. So as a newbie this won’t work at all. You will more than likely need to start your trading career with a cryptocurrency exchange that takes fiat.
Coinbase is the easiest to start with as they take credit card payments and will load your account as soon as you transfer.
Exmo is another cryptocurrency exchange that takes credit card payments.
Coinmama is another exchange that allows credit card purchases of cryptocurrency, as long as you have a Visa or MasterCard.
You may want to start small and most accounts don’t have a minimum, so don’t break the bank when filling your cryptocurrency accounts. Just spend what you can afford.
If you are a seasoned pro at arbitrage and have the money at your disposal then you will know that the size of your trades dictates the size of your profits.
Be sure you know what you are doing if you go big and if you do then good luck with your new money printer…
For the best cryptocyrrency exchange trading results it obviously pays to have multiple options.
Once you have decided on the best cryptocurrency exchange for you next thing to do to get started is to open multiple accounts – the more the better. These should all be free and will not ask for any bank or credit card details until you go to purchase. The reason to open multiple accounts early is due to the time some exchanges may take to verify your account – this may be a matter of minutes or in some cases a matter of weeks. And there is nothing worse than seeing profitable trading opportunities sail by cause you are waiting for your account to be verified. Trust me, I’ve seen watched thousands of dollars go to waste as I waited what seemed like an eternity for an account be verified. Multiple accounts mean a larger selection of prices, therefore a greater chance of finding profitable trades.
Once you have your accounts open then I would look at the process of depositing.
If it is via credit card and is instant then I would just leave those accounts alone until a trade opportunity arises. If you it is by B-Pay or another option that takes time for cash to clear then I would look at depositing into these accounts but I would only look at doing this with the cryptocurrency exchanges that have the lowest prices as these will be the best ones to buy cryptocurrency.
The worst thing a cryptocurrency arbitrage trader can do is to have empty accounts. If you know what you are looking for and can see profitable trades in your targeted cryptocurrency exchange right in front of your eyes then it’s like watching a briefcase full of cash floating away from you while you’re helpless to do anything about it.
Always ensure you have funds in multiple accounts so you are ready to pounce when you see trades ripe for the picking.
Here are the best cryptocurrency exchange sites that can be traded between:
Personally, I would open as many as possible as it opens up more possibilities. Remember, you don’t need to deposit into any. By opening accounts and passing the verification stage you are ready to trade when you want. Here are the best cryptocurrency exchanges that I’ve seen with the biggest differentials in prices ripe for the picking.
Coinspot is an Australian exchange and must have close to the biggest variety of cryptocurrencies of any exchange. Whether you are looking to find the most well-known coins or the obscure (altcoins) new coins on the market.
The exchange is one of the most user-friendly out there with the only minor limiting factor being you cannot put Limit orders on so you will need to watch the market and execute when you are ready…
Coinbase is the world’s largest Bitcoin exchange. Bot only is Coinbase is the world’s largest Bitcoin broker but it also offers exchange, wallet and developer API. Coinbase focus on only the biggest coins, so it’s great if you want to trade the ‘blue chip’ coins but not if you are after the variety of alt coins. You can purchase Bitcoin and other cryptocurrencies with a credit card on Coinbase too.
Exmo claims to have the lowest fees on the market out of any other cryptocurrency markets. Depositing and withdrawing are quick and easy. The user interface is very simple to use and Exmo exchange platform has the ability to place market or limit orders which is always a bonus. You can purchase cryptocurrency with a credit card on Exmo too.
Live Coin has huge variety of alt coins to trade and can usually find big differentials with other exchanges making it fantastic for arbitrage. It is easy to sign up and to good for both beginners and advanced users with access to ICO’s and a ton of alt coins.
Bleutrade cryptocurrency exchange offers a wide variety of cryptocurrencies, is one of the largest exchanges in the world and accepts clients from across the globe. Bleutrade does not support fiat currency so you will need to have purchased your cryptocurrency elsewhere before hitting this exchange, although it usually has some rather large differentials that make arbitrage opportunities a regular event.
Coinmama is a highly trusted site that allows you to buy Bitcoin with credit card. It’s available in most countries, has great customer service and high limits for buying. Only drawback is the fees are higher for credit card purchases so factor this into your trading math.
QuadrigaCX is 100% Canadian owned and is the most convenient way to trade BTC and ETH to CAD. They claim to have the highest level of security of any marketplace. QuadrigaCX does not do alt coins but usually has decent spreads when it comes to the main cryptocurrencies for trade.
Binance has great alt coin offerings is easy to use and has incredibly low trading fees. Its super simple to sign up and supports the Asian and English markets. When looking for the best altcoin exchanges this would have to be up there with the best. As far as variety goes, Binance would also have to be one of the best for altcoins.