When searching for the best altcoin exchange, there are many things you should consider before signing up. To start, there are many leading altcoin exchanges to choose from and many preferred exchanges. Different traders and investors will have different needs, and each exchange offers different services.
Your location and country will play a major role when it comes to determining which is exchange is right for you. Some exchanges are global, while others operate only in Europe or the US.
If you’re new to cryptocurrency, then choosing an altcoin exchange can be very time consuming and even a little overwhelming.
Fortunately, we’ve taken the time to do all the legwork for you and have come up with the top three exchanges on the market that have a lot to offer in terms of payment options, currencies, and reasonable transaction fees.
But you may be wondering what determining factors we used to pick our top three. So, let’s find out.
How We Chose the Top Five Altcoin Exchanges
While researching exchanges, we paid attention to a number of important traits that helped to separate the best exchanges from the bad ones.
We used the following criteria to make our final decisions:
Security: On a daily basis, any major altcoin exchange is going to face a hacking attempt. Even some of the leading exchanges in the industry have been known to suffer leaks. This is all part of dealing with some of the top hackers in the world. Regardless, you want to use an exchange that has a limited history of leaks and a solid security system in place.
Privacy: As any trader will tell you, the best part about trading in altcoins is that you’re able to do so with one hundred percent privacy. But keep in mind, the only guaranteed way to purchase coin privately is with a cash deposit, and unfortunately, not every exchange offers this option. It can be easier to find an exchange that accept Paypal, debit card, credit cards, and bank transfers. However, some of these aforementioned payment methods are tied to a person’s identity. But if you want to avoid your transactions being tracked, then you must use an exchange that offers cash deposit or cash exchanges.
Limits: There are many exchanges that don’t have limits, or the limits they do have are very reasonable. If you have the money you can purchase as many altcoins as you want. However, some exchanges have very low daily or monthly limits, which can be very frustrating for the advanced trader or investor. We paid close attention to each exchanges’ limits and chose the best options based on both daily and monthly trading limitation.
Rates: Exchange rates are probably the most confusing aspect of trading in altcoins. Currently, there’s no official exchange rate for most cryptocurrencies. Instead, prices are often based on the average pricing of a particular altcoin across the majority of exchanges. We double checked that the exchanges we have chosen offered fair exchange rates based on current pricing.
Rep: We picked only long-standing, trusted exchanges. While there are newer altcoin exchanges that offer better rates and faster service, we don’t recommend going with a newbie exchange until they’ve built a solid reputation in the crypto community.
Fees: All exchanges will have fees. This is typically done in the form of withdrawal and deposit fees, in addition to a fee for each exchange. If you trade a lot of altcoins, there are some exchanges that will eliminate or reduce these fees.
As you can see, we’ve done our homework and now we’ll bring you an in-depth look at the top altcoin exchanges that offer the best rates, features, and other important trading options.
|Exchange||Transaction Fee||Cryptocurrency Type||Number of Payment Methods||Rating|
|BitPanda||5%||4||8 Crypto & Visa||4.5|
|HitBTC||1%||50||3 Crypto to Crypto||2|
|Binance||0.50% - 1 %||150||4 Crypto to Crypto||4.5|
|BitMex||0.25%||11||1 Crypto to Crypto||4.5|
|Localbitcoins||1%||1||5 Crypto to Crypto||4|
1. BitPanda Exchange
BitPanda is the best altcoin exchange around for a number of reasons. Offering a wide range of currencies to choose from, low transaction fees, and a variety of payment options, it comes as no surprise that this exchange continues to grow and thrive in the highly competitive cryptocurrency world. While the exchange is limited geographically, it’s still the go-to exchange in Europe and one that will continue to expand over the coming years.
2. HitBTC Exchange
*** I recently had given 5 stars to HitBTC, but after recently seeing loads of complaints on twitter about it I’ve adjusted it down to 2 stars. If these issues are dealt with we may increase its ratings back up accordingly. I personaly haven’t experienced any issues with it ***
HitBTC This site is easy to use and features a simple, straightforward sign-up process, excellent security, low transactions fees and it offers more than fifty cryptocurrency options. What more could you ask for?
3. Binance Exchange
Considered one of the fastest altcoin exchanges and with a large number of coins available to trade, Binance caters for those who love you trade on both up and coming coins and the long-term leaders such as Bitcoin & Ethereum. It also offers lower than average transaction fees, offers great support in different languages. An exchange that continues to improve and is higher recommend.
4. BitMex Exchange
BitMex is a great platform but probably not ideal for a beginning unless you have time to explore its features. Once you get a handle on the BitMex Exchange you will love it. If your a Newbie and are looking for something more simple to get started I suggest having a look at our Bitpanda Review . In the meantime, you can have a look through the BitMex site. Its easy to signup and they have a great customer care and support. Also there fee’s are very low which also makes them an attractive exchange.
5. Localbitcoins Exchange
Considered one of the safest, most secure altcoin exchanges, Localbitcoins caters to over two hundred countries and offers lower than average transaction fees, a wide variety of payment options, and the ability to interact closely with traders and sellers. While it doesn’t offer a broad range of cryptocurrency options, it does allow you to work directly with other users in a more secure trading environment.
A Guide to the Cryptocurrency World
Just like the in the stock market, learning how to make it big in cryptocurrency investing will take more than just a good tip. It actually takes hard work, great intuition, and skill. You’ll also soon realize that doing your own research instead of following leads will be essential to your success in this highly competitive market.
Are you vaguely familiar with bitcoin and altcoins and want to find out how they work? Are you interested in learning more about the cryptocurrency market? Do you want to give trading cryptocurrency a try? If so, then you need to learn how to identify the best altcoin exchange. An altcoin exchange is a site where you can exchange, sell, or purchase cryptocurrency for other types of digital currency, or even traditional currency. If you want to start trading like a pro, then you’ll need access to the top of the line trading tools, from an altcoin exchange that requires identification verification when you sign up for an account. If you plan on casual trading then there are exchanges you can use that don’t require you to set up an account.
If you’re new to the cryptocurrency market, then you may not know that bitcoins aren’t the only type of cryptocurrency around. There are thousands of alternatives to bitcoin available, each of which features unique functionalities, differences, and purposes.
Altcoin isn’t the name of a type of cryptocurrency, instead, it describes any type of crypto alternative to bitcoin. As an example, Ethereum, litecoin, and ripple are all types of altcoins. People often use the term altcoin to describe coins that have a lower market capitalization. Major alt is another term used when traders are discussing coins with top market caps other than bitcoin currency. On the other hand, minor altcoin is often used to describe all other types of crypto.
How to Find the Right Altcoin Exchange
Before you start trading it’s important to do a little research.
Here are some things you should check out before you make your first trade:
The best way you can learn about a particular cryptocurrency exchange is by checking out reviews made by traders.
Check out forums and ask any questions you may have.
Next, take a look at each exchanges’ fees. Most will have fee related information on their site. Before you sign up, make sure you have a solid understanding of the withdrawal, transaction, and deposit fees. The fees can vary from exchange to exchange.
In terms of payment methods, find out what types of payment methods are accepted on each particular exchange. Many accept Paypal, wire transfer, debit card, and credit card payments. If an exchange you’re interested in has very limited payment options, then it might not be the most convenient option for you. Keep in mind that when you buy digital currency using a credit card that is will always require you to verify your identity and will have higher processing and transaction fees.
When you buy crypto using a wire transfer you can expect the process to take much longer.
As we briefly touched on, most altcoin exchanges in America require some sort of identity verification process. While some exchanges allow you to remain anonymous, most will require you to go through the identification process in order to make withdrawals or deposits. While this lengthy process may seem tedious and frustrating, it works to protect the exchange against money laundering and all types of scams.
Make sure the exchange doesn’t have any geographical restrictions that can affect your trade options. Some of the user functions may only be accessible from specific countries. Based on the country you live in, make sure the exchange will give you access to important platform functions and tools.
Pay attention to exchange rates. Each exchange will have their own rates. You’d be surprised by how much you can save if you do a little research and shop around. It’s pretty common for currency rates to fluctuate by as much as ten percent or higher.
A Bitcoin Alternative
Bitcoin is no longer the only cryptocurrency out there. And since the rise of altcoins, many beginner and pro investors are turning toward altcoins as a way to make a reasonably steady income each month.
So, how do altcoins really work?
Basically, altcoins work much the same as Bitcoin. However, there are some minor details that we have listed below.
By far, bitcoin is the most widespread and popular cryptocurrency. Which makes the bitcoin market extremely competitive, so it can be almost impossible for beginners to get into.
On the other hand, altcoins aren’t quite as popular, they’re much less expensive, less competitive, and they can often even be mined by a beginner with a CPU. In fact, there are some coins that are CPU only.
On the market, you’ll find thousands of altcoins. Each of which varies in technical details, price, and popularity. Many use the SHA 256 hashing algorithm, which is the same algorithm bitcoin uses. Scrypt is the second most popular algorithm. There are also other altcoins that use specialized, different algorithms.
Litecoin is one of the most popular altcoin options. It’s Scrypt based and it’s more stable than bitcoin and has a high market value.
Remember, bitcoin isn’t perfect. While it’s true that the system is well designed, it’s still the first widely used digital currency and because of this, as it continues to grow, traders and investors are starting to notice challenges and problems that were initially impossible to predict when bitcoin was first introduced. New altcoins have been designed and developed to address specific concerns regarding bitcoin’s future viability.
When it comes to trading and investing in altcoins, it can be a profitable and even fun investment. Investing in altcoins is similar to trading in penny stocks. Traders and investors can invest in small amounts and can choose the coins they feel have the best chance of long-term success.
If you had the opportunity to invest in bitcoin for pennies on the dollar back in the day, you would’ve easily made thousands of dollars. Altcoins can provide you with the opportunity you missed with the rise of bitcoin.
Now, let’s learn more about the different types of altcoin exchanges and how they work.
Direct Trading Platform
This type of platform provides direct person to person trades, known as peer to peer trading. Here, individuals from all over the world can exchange currency. Instead of a fixed market price, with this platform, a seller is able to set their own exchange rate.
For some, the best altcoin exchange is this type of decentralized or peer to peer exchange, which is maintained and operated by software. These exchanges allow users of cryptocurrency to trade with each other directly, without the use of a third party around to hike up the fees or process trades. While there are also basic cryptocurrency exchanges, which differ from peer to peer exchanges in the way that they act as intermediaries between traders and collect a small fee, advanced traders prefer to go it alone. Other traders prefer the added security of a regular crypto exchange, while others solely use a peer to peer exchange in order to cut down on transaction fees. Ultimately, it’s up to the trader which type of exchange they want to use, and there are benefits and disadvantages that come with both types.
A peer to peer exchange offers a higher than average resistance to transaction censorship, they’re secure and private, and cheaper to use than a traditional online cryptocurrency exchange.
Basic Trading Platform
As we mentioned these are exchange sites that connect sellers and buyers and take a small fee per transaction.
Here, cryptocurrency prices are set by the broker. Anyone can visit a broker site to purchase cryptocurrency.
Top Altcoin Trading Tips
If you’re new to trading, your first concern should be how you can avoid common trading mistakes. It’s important to keep in mind that in order to make great trades you need to do your research. Additionally, trading isn’t for everyone.
Before you enter a trade, have a strategy already in place.
Not every trader will make gains. Largely, the altcoin market is driven by whales. These whales patiently wait for newbies to make mistakes. Even if you have a dream of trading on a daily basis, there will be times when it’s smarter and safer to not trade, as opposed to jumping right in and exposing your funds to losses. Ask any pro and they’ll tell you that there will be days when you’ll only be able to hold onto your coins by passing the market by.
When you’re trying to choose the correct stop loss level for a trade, there are a number of important factors to consider. At times like these, it can be too easy to let your ego take over and control your trade game. At times, altcoin trades are much riskier than trading stocks.
Managing risk wisely is a must. In order to be profitable with trading cryptocurrency look for smaller profits that will result in a large profit over time, as opposed to looking for the peak of the movement.
Most altcoins are traded based on bitcoin value and bitcoin is moving sharply. When bitcoin value is on the rise, then lesser known cryptocurrency loses its bitcoin value. Typically, trade conditions aren’t clear whenever bitcoin is volatile.
In these types of foggy trading conditions, the trader isn’t able to see any potential moves. Because of this, it’s much better to have close targets for your trades or just don’t trade at all.
Over time, most altcoins will lose their value. Basically, they bleed their value away rapidly or slowly. Make sure you take this into account when you’re holding altcoins for the long term.
What are the Downsides of Altcoins?
Using this guide, you’ve probably already become familiar with the basics of cryptocurrency, particularly bitcoin and altcoins. Altcoins actually differ from bitcoin in many ways. Some altcoins offer a totally different coin distribution method or different economic model. Others even employ different types of proof of work mining algorithms that are designed to combat mining hardware. Some don’t even rely on proof of work at all.
There are many types of altcoins that feature a more versatile programming language to build on, while compared to bitcoin, some offer more privacy. You’ll also find some that serve non-monetary use cases that are very specific, such as data storage pointers or name registry.
However, there are many types of altcoins that don’t do much at all. There are plenty of types of altcoins that basically tweak some minor parameters or offer something that initially sounds useful but really isn’t. As an example, if an altcoin features a larger total amount of coins, it simply means that each of the coins is worth less. If a type of altcoin detects blocks at a faster rate, it may only mean that a transaction will require more confirmation for the same type of security.
You’ll find that there are many types of altcoins that will not offer any type of benefit over bitcoin at all. Additionally, they’ll have even less hash power to secure them, fewer developers to improve them, and they’re often less useful because of their smaller networks. While there are many types of altcoins that claim they offer useful and important features, when you dig a little deeper, these are often false claims.
For these reasons, many pros feel that altcoins can be riskier than bitcoins. Often, their exchange rates can also be more volatile. Over the years, basically, no altcoins have been able to maintain their value over bitcoin. Which is why so many altcoins have come and gone. Additionally, many types of altcoins can even be scams that were designed to enrich their creator and the early adopters.
While there are definitely some types of altcoins that do perform useful tasks and have a future in cryptocurrency, there are still many others that are driven exclusively by speculation. So, be sure to do your research before you invest.