What are the Best Crypto Trading Platforms in 2021?
There are hundreds of different cryptocurrency trading platforms on the market in 2021 with a huge growth in this number over the past four years since the last bull run in 2017 that saw cryptocurrencies pushed into the mainstream in for the first time in any kind of significant way, with this drawing in a large number of new traders as a result.
With so many platforms in the market there are a plethora of different kinds of trading services and environments that are available, and for traders it can be overwhelming to effectively compare and analyze all of the different options that there are available today.
This guide takes the pressure off traders trying to understand the best crypto trading platforms in the market in 2021, with it starting with a look at what crypto trading platforms actually are and how the market has evolved in the past few years, before moving on to look at a few ways of being able to effectively analyze different platforms and finishing off with three of the best crypto trading platforms on the market this year.
What are Crypto Trading Platforms?
Crypto trading platforms are online exchanges that allow cryptos to be traded and since the first one released over ten years ago following the release of Bitcoin there have been many new sites that have come to market and now crypto-trading platforms are used by millions of traders each and every month.
Trading digital currencies is now only an enjoyable and profit-filled journey for the millions that invest in them but is a way to reap passive gains when holding through dips as many crypto assets have soared in value the past few years with BTC alone reaching a trillion-dollar market cap for the first time this year.
Crypto trading platforms are similar to conventional stock exchanges in that they support many funding sources and offer graphs and charts, as well as tools and financial products, that users use to trade and speculate prices and with more coins now than ever, it is a great time to invest and diversify holdings.
These platforms often vary from one to the next in terms of the security and features they provide and the coin selections they support and with hundreds of them around is easier now for users to invest and since most offer users digital wallets to store holdings there is no longer the need to utilize two services.
How Has the Crypto Market Evolved in the Last Few Years?
Crypto markets are known for their volatility and expansive growth and while the platforms that enable their trading have evolved over time the market itself has too, from more retail and institutional users joining the market to regulations ensuring safe platforms emerging, the market has certainly matured.
Cryptocurrency markets are evolving at swift paces and continue to grow as more vendors and services accept these digital assets of value as a form of payment and while mining continues to be fundamental to the crypto-sourced earnings for millions the underlying technology, blockchain, has expanded values.
This fast-paced market is one that never sleeps with trading activity taking place around the clock and with access to crypto easier now than ever before have made soaring values in the market a possibility, and the market is only expected to grow as new developments, such as Ethereum 2.0, begin to roll out.
Cryptocurrency was once a concept but now essential to the profits/portfolios of the many that trade them and over the past few years, many new traders learning of the technology for the first time have joined the market along with many institutions that believe it will one day be a mainstream currency.
How Can You Tell Which Crypto Platforms are Better Than Others?
High Liquidity and Trade Volumes
Given the hundreds of platforms that exist and their varying offered features, it can be hard to identify which platforms are better than others and while there are many aspects to consider when judging the credibility of a platform there are perhaps no greater metrics to consider than liquidity/trade volumes.
Greater market liquidity and trade volumes are signs of a healthy crypto platform as the higher activity on the exchange becomes the stronger security measures typically are, correlating with strong market liquidity and high-volume averages is often better customer support and trading tools/features as well.
High liquidity is among the most important aspects to consider when comparing one exchange to the next and is especially important to those frequently open and close positions as market liquidity refers to the amount of cash a platform has across trading pairs which is what allows assets to be sold for cash.
Crypto platforms with low trading volumes are not deemed unsafe based on the metric alone but given that high-volume platforms are often ones with years of service and operational experience it is best to choose exchanges that support secure high volumes of trades as they are typically safer to transact on.
Wide Range of Assets to Trade
Diversity is essential to mitigating risk and especially in markets characterized by volatility and given the parabolic and roller-coaster fluctuations this market has seen over the years is imperative that investors trade on platforms with larger coin selections so liquidity and risk can be spread across multiple assets.
Access to a wide range of tradable assets not only ensures users can invest in the coins and projects they believe will rise in value but with multiple coins held allows traders to offset losses as if one coin retracts in value they can potentially recover the lost amount from the rise in the price of another crypto asset.
Crypto and its underlying technology has evolved over the years and so have the sites that enable them to be traded and while Bitcoin was the only tradable coin when it became the first of its kind to exist in 2009, many new ones known as altcoins since emerged and the more offered by a platform the better.
Diversifying holdings is essential to profiting from assets of all type though is important to crypto traders especially as their change and fluctuations in price can lead to single-day gains or losses that either make or break a portfolio though risk is reduced if trading on a site that allows users to hold many coin types.
Good Security
Security is rightfully so the foremost concern of many active traders as these assets are decentralized in nature and with billions of dollars worth of them stored on blockchain has compelled many hackers and unscrupulous scammers to capitalize and profit by way of deceiving platforms and independent traders.
Strong security measures should be used by all sites that allow crypto trading as they are only as secure as the methods used by the exchange to protect them and given the billions of dollars most exchanges now process each day it is imperative they employ and use practices that protect assets and customers.
Secure crypto-trading platforms are often the ones that are licensed and regulated and with most now regulated and regulatory-compliant the industry and market as a whole is safer to trade in now than any other year which helped markets grow as hacks are less frequent thanks to improved security measures.
Good security is the priority of most trading platforms as the digital nature in which these assets exist is alluring to cyber-attack hackers that want to profit from theft but fortunately for traders, site security is the focus of most exchanges and the protection measures they use is a way to tell which is best for you.
What are the Best Crypto Trading Platforms in 2021?
PrimeXBT
PrimeXBT is the world’s largest multiethnic margin trading platform and one of the largest and fastest growing crypto trading platforms on the market, having launched only just a matter of a few years ago and in that space of time growing faster than any other major crypto trading platform to today manage up to $7 billion in global trade each and every day.
PrimeXBT lists a wide range of different assets including a number of the most popular cryptocurrencies including BTC, ETH, LTC, and EOS, as well as many of the world’s leading traditional assets like stock indices such as S&P500 and FTSE100, forex pairs such as USD/EUR and AUD/CAD, and commodities such as gold and oil.
The user interface of PrimeXBT is intuitive and easy to get the hang of, while the tools that are built into the pop into PrimeXBT are powerful and allow users to be able to effectively interact with the cryptocurrency market, like the trading engine of PrimeXBT which is professionally engineered and can execute up to 12,000 trades per second with an average trade time of less than 7.0.72 milliseconds 7.02 ms.
PrimeXBT is also known for being a secure and safe trading platform that packs a range of bank-grade security measures including hardware security modules with rating of FIPS PUB 140–2 Level 3 or higher and cold storage of digital assets with multi-signature technology, with this with these features and more ensuring that the data and funds of PrimeXBT’s uses are safe.
Binance
Cryptos are traded in fast-paced markets with trends and prices that seemingly never cease to change or impress analytical specialists, this activity can make it hard for profit-hopeful investors with little to no experience though some platforms, like Binance, are known for easing the process of trading for traders.
Binance is home to one of the lowest trade-rate fees of any other with users only charged a 0.1% fee for opening and closing positions and giving the ability to retain more profits, this exchange allows users to open/close orders with their inherent coin, Binance Coin (BNB), which reduces incurred fees even more.
This exchange launched in 2017 and aimed to give users access to a selection of coins greater than that of any competing platform and their nearly two-thousand listings combined with stellar user support is why they are now known and beloved by the over thirty-million traders that use the site each month.
Provided security and supported coins are essential to trading profitably/securely and since coming to market four years ago this exchange has earned the reputation as one of the best for both aspects, in 2021, where security/diversity are investor priorities, Binance is now home to millions of active users.
Coinbase
Coinbase was one of the earliest trading platforms to launch when released three short years following the release of Bitcoin in 2012 and has since become known to the community as a whole as the platform with the easiest buying process as users can create an account to start trading within just a few minutes.
Operating as a licensed and regulated exchange supporting users across the states and around the globe this platform has not only made access to crypto/trading tools easier for those in all parts of the world in that they support many regions but offer wallets and advanced trading tools to their customers as well.
Coinbase is a well-reputed exchange with nearly a decade of operational experience under their belt and being registered and licensed, as well as insured and regulated, is now a safe haven exchange to millions of monthly-active traders that use the platform for its great selection of coins and high market liquidity.
Convenience and security are two vantage points of Coinbase as they not only support funding sources that range from debit/credit cards to wire transfers too but offer features that let users securely trade, such as two-factor authentication, and with round-the-clock network monitoring are among the safest.
Final Thoughts
The caliber of trading platforms in the cryptocurrency market in 2021 is significantly better than it was even just a few years ago as the increased competition that has spawned as a result of the 2017 bull run has meant that the top performing trading platforms have had to innovate in revolutionary new ways and provide substantial amounts of value to the users in the process.
Three easy ways of being able to effectively analyze different trading platforms to find the best ones is by looking at which platforms have high liquidity and trade volumes, looking at which platforms have a wide range of assets to be able to trade, and also which platforms have good security and can protect the users’ funds and data.
For more information on the three platforms we have selected including the features and services on each platform, check out PrimeXBT, Binance, and Coinbase.
