What Is A Cryptocurrency Exchange?
Cryptocurrency exchanges are websites where you can buy, sell or exchange a cryptocurrency for other digital currencies or traditional currencies like US dollars or Euro. That is, they offer the service to trade cryptocurrencies and digital assets to fiat currency or other digital assets.
They can also businesses that allow customers to trade digital currencies for other assets, such as conventional fiat money, or different digital currencies. They can be market makers that typically take the bid/ask spreads as transaction commissions for their services or simply charge fees as a matching platform. Sometimes, digital currency exchanges may be brick-and-mortar businesses, exchanging traditional payment methods and digital currencies, or strictly online businesses, exchanging electronically transferred money and digital currencies.
Generally, the higher the trading volume on a given crypto-exchange the more users think the exchange is trustworthy enough. High trading volumes could mean capital in and outflow from a market. A larger amount of trading volume on a given market is always an indicator of the sentiment about the assets traded. If the prices are increasing with large volumes it means capital inflows to the market. At the same time, large fall in price together with large trading volumes shows the money is fleeing from the market.
For some experienced traders from other markets such as the Stock or Forex markets, willing to trade professionally on an exchange with very high liquidity, trading with a large amount of volume, getting to know the trading volume of exchanges might the tasking and time-consuming.
It is widely believed that the coinmarketcap provides the most accurate and updated data on cryptocurrencies and crypto-exchanges. However, in a recent post published by CoinMarketCapped, it was revealed that the data published by the coinmarketcap are sometimes manipulated and fraudulent, thereby misleading the community. It worth spending some time, making verifications on the data gathered from different exchanges. Therefore, you need to make sure you check the trading volumes on separate sources and do not solely rely on the data provided by a given exchange, nor the coinmarketcap alone.
Largest Cryptocurrecy Exchanges By Trading Volume
To ease you from the stress of making an extensive finding on the biggest exchanges by trading volume, we provide you with a comprehensive list containing the exchanges with the largest trading volume.
The Bitcoin Mercantile Exchange is one currently the largest Bitcoin trading platforms currently operating, with a daily trading volume of over $2,665,310,000 and over 540,000 accesses monthly and a trading history of over $34 billion worth of Bitcoin since its inception.
Bitmex is a P2P(Peer-to-peer) cryptocurrencies trading platform established in 2014 by co-founders Arthur Hayes, Ben Delo and Samuel Reed, who have backgrounds in finance. Unlike other cryptocurrency exchanges, either traditional or P2P, Bitmex is focused on cryptocurrencies derivatives trading such as futures and margin trading.
BitMEX only accepts deposits in Bitcoin and therefore Bitcoin serves as collateral on trading contracts, regardless of whether or not the trade involves Bitcoin. The minimum deposit is 0.001 BTC. There are no limits on withdrawals, and withdrawals can only be in Bitcoin
Bitmex offers up to 100x leverage on some of its products. That is to say, a user can buy as much as 100 Bitcoin of contracts with only 1 Bitcoin to back it. The exchange allows operations from different countries of the world except for the Unites States, Cuba, Crimes, Sevastopol, Iran, Syria, and North Korea.
Binance exchange is also one of the largest cryptocurrency exchanges by trade volume. It primarily focuses on crypto-to-crypto trading. One of the biggest reasons behind the popularity of Binance exchange is its significantly low trading fees. The exchange is known for its free trade fee which allowed traders the option of 0 fee trading.
Binance has incorporated a number of innovative features that have improved the process of trading cryptocurrencies for their users. These include the use of the BNB token to give a 50% reduction in fees, a high daily limit withdrawal of up to 2 BTC without any KYC, and a referral program, that allows members to earn tokens by referring new users, and benefit from their trades.
Binance is currently responsible for just under a quarter of all BTC trades and boasts a 24-hour trading volume of over $2 billion USD.
The exchange is also known to be among the fastest exchanges in the market today that offers multiple trading pairs including BTC, ETH, LTC, and BNB.
OKEX is another multi-cryptocurrency exchange that allows users to trade cryptos and fiat-backed tokens. OKEX also provides digital asset-based futures with multiple leverage choices.
It is important to know that until recently, the website was entirely in Chinese language since it used to be the main target market. However, for quite some time, the entire platform has been successfully translated to English, expanding its interests in traders from different parts of the world. The exchange is known to have been built with algorithmic trading tools designed for the professional traders.
OKEX specializes in BTC and LTC futures. You can trade on the margin with up to 10 or 20x leverage, or hedge to lock in your mining profits. Despite all fluctuations in the market, OKEX still remains one of the biggest crypto exchange with a daily value over $2 billion USD.
Huobi is a global digital asset trading platform based in Beijing. According to Huobi, more than 50 percent of the blockchain strength trading volume is crypto-to-crypto (C2C) trading. Huobi offers exchange services which are secure and take place on a completely independent cryptocurrency evaluation system. The platform has a comprehensive verification process which works in its favor. Although it was initially designed for Chinese traders, many traders from all over the world have also registered and used this exchange.
With trading fees set squarely to 0.2%, Huobi is an attractive destination in this regard as well. The powerful trading platform, combined with the overwhelmingly positive user feedback makes this exchange to be considered one of the most sort after, and the current daily trading volume of the exchange is at over $1 billion USD.
In addition to all the above, Huobi has considered the introduction of peer-to-peer trading in fiat currencies, that would allow Chinese citizens to keep purchasing cryptos for Yuan, thus essentially defeating the government’s ban on the cryptos.
Upbit is the largest digital asset exchange in South Korea. The exchange was announced on September 27, 2017, after Korea passed China in terms of total bitcoin trading volume.
The ultimate goal of Upbit is to allow trading of 111 different cryptocurrencies from 167 different markets. Upbit provides users with the ability to trade crypto-currencies via the Kakao Stock platform, which is built on the Kakao Talk messenger. That means Korean cryptocurrency users will be able to trade cryptocurrencies as easily as they use the Kakao Talk messenger app.
One of the selling points of the exchange is that it does not charge any fees on deposits and while withdrawal fees vary depending on the cryptocurrencies being withdrawn, or in Won to a bank account. Trading fees are roughly in line with most South Korean exchanges and are set at 0.25% for both takers and makers. By statistical data, Upbit is not the cheapest exchange to trade on internationally but South Korean exchanges generally aren’t and fees are in line with the local context. As at the time of writing, Upbit currently has a total trading volume of over $1 billion USD.
Bitfinex is one of the largest cryptocurrency markets in the world by trading volume. The exchange currently handles over $900 million USD worth of cryptocurrency trade per day. Common to most exchange platforms, Bitfinex also lowers trading fees to start at 0.1 percent for the maker and 0.2 for the taker. The first decline in fees is at 500,000 dollars traded and as the monthly trading volume rises, the fees steadily decline. Bitfinex charges 0 percent fee for the maker and 0.1 percent for the taker applicable. Also, Bitfinex offers margin trading, and margin funding services, and the platform offers the users to trade up to 3.3x leverage.
Bithumb is a cryptocurrency exchange based in Seoul, South Korea. Founded in 2013, it allows for the buying, selling, and storing of Bitcoin as well as a range of other cryptocurrencies. Not only is it one of the largest and highest-volume cryptocurrency exchanges in South Korea, it’s also among the global leaders in terms of Bitcoin trading volume. The exchange currently has a capacity of over $700 million USD total trading volume.
There are 3 modes of trading options available on Bithumb, easy trade, general trade and finally reserved trade. These various options offer traders some room to decide how they want to buy or sell cryptocurrencies on bithumb. Apart from cryptocurrencies, bithumb also offer bitcoin gift vouchers. These vouchers can be converted into the equivalent value in Bitcoin. The lowest denomination for this gift vouchers is 10,000 KRW.
Bittrex is one of the most popular cryptocurrency exchanges. Its main advantage over major competitors, like Kraken or Bitfinex, is the diversity of coins available for trading. Basically, almost every coin you can think about is traded on Bittrex.
According to Similarweb.com, Bittrex receives over 160 million visits monthly. For comparison, Coinbase receives about 125 million visits per month, Poloniex about 95 million, and Kraken 45 million. Approximately 35% of Bittrex's traffic is from mobile devices. Kraken and Coinbase both receive over 40% mobile traffic.
When compared to some exchange platforms, all trading done within Bittrex.com would be charged 0.25%. This implies trading fees are slightly higher on Bittrex compared to the industry average. There are neither rebates for higher-volume trades nor incentive models for takers and makers. Bittrex currently has a total trading volume of over $3million USD.
LBank is another Asian cryptocurrency trading platform. The platform allows for crypto-crypto and fiat-crypto trading. One of the selling points of this exchange is the fact that is that it has many altcoins for traders and most of them are relatively cheap to trade.
When compared to other exchange platforms, trading on LBank is cheap due to the low cost of trading. The exchange charges a 0.10% flat fee on all the trades making the exchange one of the cheapest in the market. Additionally, deposits to the exchange are free while withdrawals are charged at competitive prices of 0.01 ETH.
The exchange has more than 40 digital coins that are available for trading, and the trading volumes of most of the digital coins offered at the exchange are high enough which affirms the high liquidity of the exchange. Lbank is currently commanding a trading volume of $336,893,212 USD.