Crypto exchanges come and go as quickly as trends in slang (apparently “shady” makes me sound old now…I have to say “sketchy”). That just makes it even more important to do your due diligence when choosing which crypto exchange(s) to use.
I know, I know…sometimes there’s no choice. You found that hidden gem that no one’s talking about yet…but it’s only available on SketchyMoneePlace.com*.
So be it…do what you gotta do.
* As far as I know SketchyMoneePlace.com is a made up name that doesn’t exist. Yet.
For the majority of cryptocurrencies and tokens, however, you have options.
Lots of them.
At the time of writing CoinMarketCap lists over 200 exchanges that at least some crypto has been traded on. Not sure how comfortable I am with the last few…
To (hopefully) give you some guidance (definitely not financial advice) I present to you my choices for the Top 5 Crypto Exchanges Growing Adoption in 2018…so far.
Keep in mind that these are not necessarily my choices for the flat-out best exchanges I think everyone should use. You’ll notice I added a “Best For” caption stating who I believe the exchange is/will attract. No, these are the exchanges I feel have done, and are doing, the most to drive adoption and advance the cryptosphere as a whole.
#1.) Coinbase
Best For: New users
Despite all of Coinbase’s trials and tribulations this year it continues to be the ‘go to’ exchange for beginners. Those just starting in crypto would be hard pressed to find an easier way to trade their fiat dollars for Bitcoin, Ethereum, Litecoin, Bitcoin Cash or (recently added) Ethereum Classic. Being a regulated financial services company, based in the United States, gives investors confidence in the platform. Combine that with it’s ease of use (so you’re less likely to make a mistake) and it’s no wonder Coinbase has served over 10 million* customers facilitated the exchange of over $50 billion* worth of digital assets.
* According to Coinbase.com on 8.25.2018
Coinbase has had a busy 2018 so far;
- upgraded and rebranded their GDAX platfor (intended to appeal to more experienced traders) to Coinbase.Pro
- added custodial support for institutional investors giving the ‘whales’ somewhere to store their digital assets.
- acquired 4 companies (Earn.com, Cipher Browser, Paradex and Keystone)
- opened additional offices in Chicago and Portland.
- all while signing up 50,000 new Users per day
- ….quite the resume for half a year’s work!
While some may question the way Coinbase (mis?)handled the Bitcoin Cash fork, later adding BCH to their exchange, most agree it’s currently the best ‘on ramp’ for new users to get into the crypto.
Sign up for a free Coinbase account here.
Get $10 of free Bitcoin with your first $100 purchase using this link.
#2.) Binance
Best For: Most users
It took Binance, the world’s largest crypto exchange in trade volume, less than a year to make pace for $1 billion in profit. That’s billion…with a ‘b’. And that’s profit…not revenue or ‘worth of Bitcoin’. In a recent Bloomberg, interview Binance CEO Changpeng “CZ” Zhao stated that he still believes they’ll reach that goal after netting $300 million through June.
Binance seems to be doing all the right things by listening to their customers and pioneering new features;
- they temporarily halted new user registration at the peak of ‘cryptomania’ to upgrade infrastructure. Binance chose to provide customer service to current customers over cash-grabbing new ones they couldn’t support
- one of the first to introduce a native exchange token ($BNB) which has performed extremely well (compared to the market) and provides perks like discounted trading fees (currently 25%)
- made their first acquisition buying Trust Wallet
- is launching a Blockchain education hub in Binance Academy
- are currently building a decentralized exchange [DEX]
- is rapidly hiring
Binance has already grown to be bigger than Germany’s largest bank and doesn’t look to be slowing down. All it takes is an email address to join.
No verification needed to get your free Binance account here!
3.) Bibox
Best For: mid-small cap “hidden gem” hunters
Bibox is (in my opinion) the best place to trade mid-small market cap coins. Lesser known or newer tokens are often listed on Bibox before they hit larger exchanges like Binance or Huobi.
One of the most compelling reasons I use Bibox is their native exchange token $BIX. Paying with the $BIX token discounts your trading fees by 50% rather than $BNB’s 25%. Holding the $BIX token can also earn you passive income. Bibox pays 20% of the trading fees they collect back to $BIX holders. $BIX also looks like it has room to grow. It’s currently the 109th ranked* token in market cap while the Bibox exchange itself is ranked 8th* in total volume. Compare that to something like KuCoin’s $KCS token which is ranked 52nd* in market cap, while the exchange itself is ranked 51st* in volume.
* according to CoinMarketCap as of 8.20.2018
For those not interested in the $BIX token there are plenty of other reasons to love Bibox.
- they offer over 175 tokens (many exclusive) to choose from
- add new tokens frequently and often hold community voted token listings
- pioneered the cross-listing of native exchange tokens adding $HT (Huobi Token) to the Bibox exchange
- is extremely transparent regarding fees
- offer margin trading unlike most competitors (though I do not recommend trading with margin!)
- have Windows, Mac and Mobile apps available to run the platform directly without your browser
Higher risk means higher loss or reward and, by listing less common tokens, that’s exactly what Bibox offers. All it takes is an email address to open a free account. Verification is required, though, to use margin lending.
No verification needed to open your free Bibox account here!
4.) Robinhood
Best For: Users just ‘dipping their toe’ into crypto
Wait…the stock trading app…for noobs? The brokerage that other brokerages “advise against” (so they can continue making commission on you)? The subject of most of the the memes on r/wallstreetbets?
Yup…that’s the place. Bring on the rage.
Robinhood made headline news (rare for a company that doesn’t sponsor / pay off the media) by announcing they’d be adding fee-free cryptocurrency trading to their platform in February. Initially they only offered 2 tokens (Bitcoin and Ethereum) in 5 states but have been expanding furiously ever since. A constantly updated list of which tokens are available, and in what states, can be found on the official Robinhood blog.
As of August 2018 Robinhood offers 6 tokens in 19 states;
- Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, Ethereum Classic, and Litecoin
- Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, Pennsylvania, Texas, Utah, Virginia, and Wisconsin
So, is Robinhood the mecca for professional daytraders and institutional investors? No… and it doesn’t aim to be. There are no charting tools, very minimal company or token financials, and it offers less selection than most competitors. Why, then, would it be on a list of the best crypto exchanges of 2018?
Fee-free trading…duh!
If you’ve already done your research, and know that you want to invest in Bitcoin, Ethereum, Apple stock, an ETF, etc., why would you pay 1.5% to 4% on Coinbase or $5 to $10 to a traditional broker to do it? Every bip counts!
To be fully transparent, as I always am, their has been one complaint I’ve heard from crypto vets on r/CryptoCurrency. The claim is that Robinhood’s not a ‘real exchange’ because it uses existing exchanges to fill orders (rumored to be Coinbase.Pro or Gemini). Personally I see this as a benefit if it’s temporary (no word yet if it is). Robinhood created a trusted, U.S. based, FDIC insured gateway to trade fiat dollars for crypto giving new entrants an option over Coinbase. They brought it to market lightning fast while, using existing exchanges, ensured stability and liquidity which is critical for any exchange. The contrary would’ve been to rush a new platform, risking countless bugs and flaws, with no guarantee people would actually use it to trade. If there’s no one on the exchange buying Ethereum it’s kind of hard to sell your Ethereum. Just my .0000001 satoshis.
As if adding an entirely new asset class (crypto) wasn’t enough Robinhood also added some new features for more traditional assets;
- added options trading free for all users
- added extended-hours trading free for all users
- launched a web trading platform (previously you could only trade through the app) with additional research tools free for all users
- created stock and ETF Collections, such as ‘Network Security’ and ‘100 Most Popular Under $5’ enabling investors to discover and compare similar assets
- made CNBC’s “Top 50 Disrupters” list
- Hit 4 million users surpassing E*Trade
Wait…what was that last one? Yes, you read correctly. Robinhood doubled its previous year’s user base and is now bigger than E*Trade.
Boom.
Get 1 free stock just for opening up a free Robinhood account!
Crypto, stock and options trading are always fee-free!
5.) IDEX
Best For: Users looking to take the next step
If you hated my Robinhood pick because it’s too ‘mainstream’ you’ll love my final selection…the largest (semi)decentralized exchange [DEX] in the world…IDEX.
(More on the ‘semi-decentralized’ later)
I love decentralized exchanges. Both for philosophical reasons, such as no central point of failure or authority, and for more pragmatic ones like finding ‘hidden gems’ even earlier than on places like Bibox. In my 5 years in crypto (since 2013), 3 of the 5 biggest gains I ever made were on tokens only available through a DEX at the time…usually fresh out of an ICO.
* The other 2, in case you’re curious, were Bitcoin (duh) and a scammy pump ‘n dump (later learned) that I was lucky enough to take profit from at the peak.
From a technical standpoint DEXs far out perform their centralized counterparts. With no central point of failure there’s no single server (or small group of servers) that can crash, be shut down or get hacked like Mt. Gox. With no central authority it can’t be ‘mismanaged’ nor is their an opportunity to ‘exit scam’. Your personal information is kept private and secure as you don’t go through a verification process. The list of benefits goes on and on.
With so many reasons to use a DEX, then, why would anyone use their centralized counterparts? Ease of use and volume. Crypto exchanges, in general, aren’t intuitive and can be intimidating especially to newer users. Decentralized versions add an additional layer of confusion so many just don’t bother with them. Less users = less volume.
The International Decentralized Ethereum Exchange [IDEX] is currently the #1 ranked decentralized exchange in terms of trade volume (so you can finally delete that EtherDelta bookmark). Possibly more important than its size is IDEX’s ease of use, when compared to other DEXs, and the guidance it offers users. There’s a “Getting Started” 1-pager, multiple detailed and easy to follow guides and tutorials, a picture-laden FAQ and even a Live Help chatbox powered by Freshchat. IDEX is doing everything possible, way more than most others, to overcome the main barrier to entry…understanding how to use it.
I mentioned earlier that DEX’s are a great place to find microcaps, post-ICO but pre-exchange listed tokens, and hidden gems. IDEX is a digital goldmine in this regard with over 400 tokens currently available to trade. A prime example is the Aurora DAO’s native staking token AURA. Am I going to start shilling certain tokens now? No. Not my style. But AURA is very closely connected to the IDEX exchange which I’ll explain next.
* Transparency: At the time of writing I am not invested in AURA but do intend to be within 30 days. I will never buy an asset, that I do not already own, that I am writing about until after the article is released. For more details please see my full transparency disclosure.
The Aurora DAO is a “suite of dApps and protocols that make up a fully decentralized banking and financial network” according to their FAQ. AURA is the native Aurora network token which incentivizes holders to help secure the network via staking rewards. IDEX was launched by Aurora and, hence, is a part of that Aurora network. There’s quite a bit more to the Aurora DAO including it’s current semi-centralized state and roadmap to complete decentralization. I’d recommend CoinDigital’s summary if you’re interested. For our purposes it’s easiest to view AURA as IDEX’s native exchange token that pays staking rewards. An investment in AURA is an investment in IDEX and the Aurora DAO network as a whole.
IDEX is facilitating the growth of DEXs in general, provides access to a wide variety of lesser known tokens, and offers investor rewards through AURA. More than enough reason to be considered one of the top adoption-growing exchanges of 2018.
Start with IDEX’s official “How to Use IDEX” video here!
Runner Ups:
Huobi.Pro: Alternative to Binance. Many exclusive or “first to offer” tokens. However, slightly smaller both in volume and tokens offered (250+).
KuCoin: Alternative to Bibox. Similar native reward-paying token (KCS) to BIX. However, smaller volume and some questionable reports lately (e.g. Partnership with Ian Balina)
Cobinhood: Alternative to Robinhood. Fee-free trading. Many more tokens (100+) and no location restrictions. However, low volume/liquidity can reduce ability to trade. Website sometimes sluggish.
CryptoBridge: Alternative to IDEX. True DEX…completely decentralized. Easier to ‘stake’ native token (BCO) than Aura. However, lower volume and guides/tutorials not as simple to follow.
Did I miss an exchange that’s growing adoption and shaping the crypto landscape?
If so then comment below or reach out on social media.
I’m always open to criticism and up for a discussion if it means I get to learn or teach!
Matty Bv3 