January 22, 2021

Cog Analysis: Which Cryptocurrency Exchange to Choose for Trading?

Cog Analysis: Which Cryptocurrency Exchange to Choose for Trading?

According to Coinmarketcap, by the end of 2019, there are more than 300 exchanges and trading floors in the cryptocurrency market. Part of them do not function or went bankrupt in2018 cryptozyme time. Trading conditions on exchanges are significantly different. To understand the working conditions on the trading floors, we will compare four popular exchanges: Binance, BitMEX, Currency.com, PrimeXBT. These sites are most often chosen by professional traders and investors for a wide selection of assets and mild trading conditions.

Binance

Binance is one of the largest in terms of trading volume andA popular cryptocurrency exchange launched in 2017. The advantage of the exchange is more than 500 trading pairs, which mainly consist of cryptocurrencies and tokens. Unfortunately, many of the crypto assets are illiquid and periodically fall under the delisting procedure.

A variety of digital assets enablesdevelop blockchain projects that use tokens for internal calculations. At the same time, all altcoins and tokens are dependent on the course of bitcoin. If the main cryptocurrency falls or grows, the whole market follows it, this leaves no room for maneuver for traders and investors. They cannot hedge risks or diversify a portfolio.

Despite its popularity and collaboration withstate and law enforcement, Binance still does not have a license. Changpen Zhao, CEO of the exchange, was invited to Malta in 2018 as an expert in the development of legislation that will regulate the digital economy. Later it became known that the head office of Binance is preparing to move to Malta, but there was no news about licensing the company.

Verification

Binance requires a procedureverification of identity. Without passing the KYC procedure, the withdrawal amount is limited to 2 BTC, after passing the test - 100 BTC. In order to increase the limit, you need to write to the support service. Due to the large number of customers, the KYC procedure may take several days.

Input Output

You can top up your balance at Binance only in oneof cryptocurrencies listed on the exchange. Replenishment using Visa and MasterCard with fiat currencies is possible only through the integrated Simplex payment acceptance service. Commission 3.5% of the transfer amount, but not less than $ 10 and the exchange is not compensated. Conclusion is possible only in cryptocurrencies.

Trading Commissions

The size of trading commissions depends on the volume of tradingperfect in a month, as well as the type of order being placed. For those whose monthly turnover is less than 50 BTC, the commission is 0.1%, regardless of the type of order being placed: limit (maker) or market (taker).

If the trader’s turnover is more than 50 BTC per month, the commission for the maker is reduced to 0.09%. The minimum commission of 0.02% for the maker and 0.03% of the taker is available to traders whose turnover has exceeded 15,000 BTC per month.

In addition, you can get an additional 25% discount on commissions if you use a BNB exchange token to pay it.

Spread

Binance spread is floating and dynamicbidding. On average, for the BTC / USDT pair, 0.03% of the transaction amount, which at the exchange rate of $ 7500 for 1 BTC is about $ 2.25 for 1 BTC. That is, if you buy and immediately sell Bitcoin on Binance, the spread will be $ 2.25 or 225 points. In moments of increased volatility, the spread can reach $ 10 per 1 BTC or more.

Leverage

For the exchange exchange of cryptocurrencies, leverage is not provided. To trade settlement futures, the trader independently chooses the leverage from 2x to 125x.

Referral program

By inviting people to Binance to trade, you canreceive up to 20% of their trading commissions. You can choose the commission for the invited customers and the size of the discount on his trading commission. From 20% of the trading commission, from 5% to 15%, the trader can keep for himself, and provide the rest to the invited customers as a discount.

In addition to the referral program, recently appearedthe ability to place deposits, that is, interest is accrued to the trader for storing cryptocurrencies on the exchange Binance customers have 2 options for depositing:

  1. Termless deposit: at BNB - 1% per annum, at BTC - 0.8% per annum, at BUSD - 2.8% per annum.
  2. Fixed deposit for a period of 14 days: in BNB, ETH, USDT and MATIC - 6%, in BUSD - 10%, in BTC - 3%.

Additional Information

Binance cryptocurrency exchange is constantly evolving and periodically provides its customers with new projects and functions. In addition to exchange trading, Binance customers are available:

  • Academy - educational service in the field of blockchain and cryptocurrencies;
  • Binance Charity - Binance Charity Foundation;
  • Binance Labs - an incubator of cryptocurrency and blockchain projects;
  • Binance Launchpad - a platform for issuing tokens;
  • Binance Research - analytical services for institutional investors;
  • Trust Wallet - the official cryptocurrency wallet of Binance;
  • Mobile applications based on iOS and Android.
  • Summary

    Binance cryptocurrency exchange is reliable andA popular marketplace, has many additional services and projects. Despite several hacking incidents, the exchange is still considered one of the safest on the market. One could stop at Binance, but many traders are scared away by large trading commissions and a wide spread. In May 2019, the exchange introduced a new rule that prevents the placement of limit orders, the execution price of which deviates from the market by more than 30%.

    Bitmex

    BitMEX - one of the largest cryptocurrencytrading floors on the market, founded in 2014, the trading volume of more than $ 3 billion. There are 9 trading pairs on the platform: derivatives on XBTUSD and ETHUSD, contracts for long and short positions on Bitcoin, as well as derivatives on Cardano, Bitcoin Cash, EOS, Litecoin, Tron and Ripple against BTC. The presence of only the top cryptocurrency assets gives traders less opportunities for hedging or diversification than on Binance.

    BitMEX is not regulated and has nopublic reporting. In July 2019, an investigation was launched against the exchange by the CFTC (U.S. Commodity Futures Trading Commission). The regulator believes that the exchange allowed US citizens to trade without a special permit. Against the background of the investigation, from July to August 2019, customers withdrew more than $ 500 million from the exchange. Trading volumes and the number of customers on the platform have recovered, but an investigation is still ongoing.

    Verification

    There is no KYC procedure on the platform. Anyone can go through a quick registration, replenish the balance and immediately start bidding.

    Due to the lack of an identity verification procedure, the famous economist Nuriel Roubini accused the platform of not complying with the KYC and AML rules, due to which it is possible to launder income through BitMEX.

    Input Output

    Top-up and withdrawal to BitMEX is possible only in bitcoins. No other cryptocurrencies and options for replenishment or withdrawal on the exchange are available. Commissions for deposit and withdrawal are not charged.

    Trading Commissions

    For perpetual contracts on BTCUSD and ETHUSDmakers receive rebates in the amount of 0.025%, and takers pay a commission in the amount of 0.075%. For the other derivatives, makers receive a rebate of 0.05%, and takers pay a commission of 0.25%.

    Trading commissions on BitMEX are quite democratic and correspond to the average market ones, but the commission of the taker for altcoins is 2.5 times higher than on Binance.

    Spread

    The spread on the platform is floating and depends onmarket volatility. In calm times, the difference between the purchase and sale prices averages 35 cents per 1 BTC, and during strong volatility it reaches $ 20 per 1 BTC.

    Leverage

    The amount of leverage depends on the trading pair:

  • BTCUSD - 100x;
  • ETHUSD - 50x;
  • LTCBTC - 33.3x;
  • Other pairs against BTC - 20x.
  • Referral program

    For the given customers, whose total tradingturnover amounted to 1,000 BTC per month, you get 10% of their trading commissions. If the trade turnover exceeds 1,000 BTC, the amount of remuneration increases to 15%. The maximum reward of 20% is possible to receive if the clients you referred to have completed trading operations worth more than 10,000 BTC.

    Additional Information

    There are no unique ones on BitMEXfeatures, applications or services for customers. When opening trading positions in large volumes or at moments of high volatility, the terminal gives errors and slows down, and price slippage is already commonplace for platform participants. At times of peak load on the platform’s trading system, customers sometimes cannot close their trading positions.

    With the collapse of prices for leading cryptocurrencies, positionscustomers open for purchases upon reaching a certain drawdown level are automatically eliminated by the platform, supposedly in order to avoid loss of trading capital. Only in September 2019, at the time of the impetuous drop in prices for leading cryptocurrencies, were customers' positions worth $ 710 million liquidated.

    Summary

    The conditional advantage of BitMEX can be calledinstant registration and anonymity, as well as quite loyal trading commissions. Separately, it is worth noting that while on the same Binance, according to various studies, trading volumes are clean, then on BitMEX they are high solely due to leverage. Otherwise, the platform is absolutely nothing superior to either Binance or the other participants in this review and is often criticized and is the center of scandals.

    Currency.com

    Currencycom is the world's first regulated cryptocurrency exchange of tokenized assets, providing the opportunity to invest cryptocurrencies in traditional assets: stock indices, stocks, commodities, precious metals and even bonds. On the exchange you can trade cryptocurrencies BTC, BCH, ETH and LTC against USD, EUR, Belarusian and Russian rubles.

    Currencycom combines cryptocurrency and traditional financial markets. Traders are available exchange and margin trading, trading with leverage. Over 1300 assets are represented, from cryptocurrencies to government bonds.

    The exchange was launched in January 2019 in the High Parktechnologies of the Republic of Belarus and licensed in accordance with the decree of the President of the Republic of Belarus “On the development of the digital economy”, which entered into force in March 2018.

    Currency.com is a public company that reports to regulatory authorities and is independently audited by Ernst & Young, a Big Four Auditors company.

    Verification

    The passage of the KYC procedure on the platform is mandatory. Verification takes several steps and takes about two minutes. Verification of documents takes place within an hour.

    Input Output

    Balance replenishment and withdrawal on the platform are possiblein BTC, BCH, ETH and LTC cryptocurrencies, as well as in dollars, euros, Belarusian and Russian rubles using a bank transfer or Visa and MasterCard bank cards.

    Currency.com opened an account for accepting payments at Sberbank with preferential commissions for depositing and withdrawing funds from cards - 1%.

    Trading Commissions

    Trading commissions on Currency.com:

  • Cryptocurrency pairs with leverage: taker 0.075%, maker 0%;
  • Stocks, indices, ETFs and commodities with leverage - 0.0125%;
  • Commodities - 0.05%;
  • Shares, indices, ETFs and commodities without leverage - 0.05%;
  • Tokenized bonds - 0.03%.
  • Spread

    For the main cryptocurrency pairs BTC / USD and ETH / USD, the exchange has an advantage over trading platforms on the market. The spread for the BTC / USD pair is 5 cents, and for the ETH / USD pair only 1 cent.

    Leverage

    The size of leverage on Currency.com is chosen by the trader, the maximum size depends on the selected asset:

  • Cryptocurrency pairs BTC / USD and ETH / USD - from 2x to 100x;
  • Cryptocurrency pairs BTC / EUR, BTC / BYN, BTC / RUB, ETH / BYN and ETH / RUB - from 2x to 20x;
  • Cryptocurrency pairs LTC / USD, LTC / EUR, LTC / BTC, BCH / USD and ETH / BTC - from 2x to 10x;
  • Shares - from 5x to 20x;
  • Commodities, currencies and stock indices - from 5x to 100x;
  • ETF - from 5x to 20x.
  • Referral program

    Members of the referral program receive 50% of the trading commissions of invited customers, and the invited ones receive an additional 10% discount on trading commissions.

    Additional Information

    Russian-speaking support service, account replenishmentthrough Sberbank makes Currency.com convenient for customers from Russia and the CIS countries. The platform processes 50 million operations per second, this avoids price slippage, “brakes” at high load and errors when opening trading positions. Mobile applications for iOS and Android have the same functionality as the main terminal.

    The personal data of clients is protected by cryptographic encryption and is stored in the UK on LD4 Equinix servers, whose services are used by the NASDAQ exchange.

    Summary

    Currency.com cryptocurrency exchange is suitable for professional and novice traders and investors. Commissions on the exchange below market, there is the possibility of replenishment and withdrawal using bank cards.

    PrimeXBT

    PrimeXBT - a marketplace providingmargin trading with leverage up to 1000x leading cryptocurrencies, Forex currency pairs, stock indices and commodities. In total, 39 trading pairs consisting of different assets are represented on the platform. But the lack of direct exchange by analogy with exchanges deprives traders of the opportunity to hedge price risks.

    PrimeXBT trading platform is not licensed and probably should not be expected to receive it in the future, since the founders and leaders of the company do not disclose their identities.

    Verification

    There is no verification procedure on PrimeXBTpersonality, registration takes place in several standard steps and takes a couple of minutes. The platform supports anonymous trading, but claims to use Bitfury's Crystal service, which helps track and block suspicious transactions.

    Input Output

    Top-up and withdrawal in bitcoins. In the personal account of the platform, you can exchange other cryptocurrencies for bitcoin and even euros and dollars using the Changelly affiliate exchange service. Exchange is carried out with a commission. The exchange rate of USD at BTC on Changelly is $ 900 higher than the current bitcoin exchange rate, at the time of publication, the BTC / USD rate was $ 7,500, at Changelly $ 8,400. Plus a fee of 0.0025 BTC, i.e. $ 18.5. When exchanging 1 ETH, the exchange rate will be 0.03 BTC or $ 225 above + $ 18.5 commission.

    Trading Commissions

    The amount of trading commissions on PrimeXBT:

  • Cryptocurrency pairs - 0.05% for makers and takers;
  • Indices and commodities - 0.01%;
  • Forex currency pairs - 0.001%.
  • Spread

    The spread on the platform is floating, according to the mainto trading pairs such as BTC / USD it is 30-50 cents and 5-10 cents for the ETH / USD pair. Narrow spreads are achieved thanks to aggregated liquidity from several suppliers. However, PrimeXBT lags behind Currency.com in this respect.

    Leverage

    The amount of leverage depends on the type of assets and is automatically regulated by the platform itself. Traders cannot choose the margin size on their own.

  • Currency pairs are automatically adjusted up to 1000x;
  • Precious metals are automatically adjusted up to 500x;
  • Cryptocurrency pairs and stock indices are automatically regulated up to 100x.
  • Referral program

    PrimeXBT has a 4-level referral program. The client you invited is 1 level, for which you get 20% of its trading commissions. With a referral 2 levels of 15%, 3 levels of 10%, 4 levels - 5%.

    Additional Information

    This spring, the launch of the module was announced.Covesting, which allows you to create and launch your micro-fund on a platform to attract investments in trust. But the module was not running. The platform offers traders mobile applications based on iOS and Android.

    Summary

    The platform uses aggressive advertising to promote it and even claims to be struggling with money laundering. In fact, it is an analogue of a forex dealer in the cryptocurrency market.

    Comparison Chart for Binance, BitMEX, Currency.com, and PrimeXBT

    Cog Analysis: Which Cryptocurrency Exchange to Choose for Trading?

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