Best altcoin exchanges of 2022

Crypto exchanges allow selling, buying, or exchanging digital assets for fiat money and other crypto. Those who plan to trade professionally and use cool tools will have to find an exchange with ID validation and a requirement to open an account. However, there are also platforms where you can keep your money. Here everything is very individual. Let’s discuss how to choose a good service and not forfeit your savings when trading cryptocurrencies. 

Types of exchanges

If you enter the word “exchange” into a search engine, you will find many platforms, but not all of them will match the necessary level. Much depends on the site’s approach to doing business. Some specialize in the comfort and simplicity of the interface; some make minimal or no commissions, and others have special tutorials on the world of cryptocurrencies and how to trade on the exchange correctly.

Platforms for currency trading are centralized (CEX) and decentralized (DEX). The first is distinguished by the fact that they can trade in cryptocurrencies and fiat money. A good CEX (e.g., Binance and Coinbase) must be:

• fast;
• comfortable and functional user interface;
• easy to use.

To start working on such a platform, a user must complete a simple registration. Such platforms give clients many features to make their trading comfortable, such as the ability to deposit or withdraw funds. However, there are also disadvantages because as soon as a user signs up for CEX, he automatically trusts the exchange to store his funds. The problem is that centralized platforms are often hacked by hackers, which means the account holder can lose his money and personal information.

DEXs (e.g., Uniswap), unlike CEXs, operate without intermediaries. All transactions are automatic with smart contracts and dApps. The main advantage is that the funds are more secure with a decentralized exchange because the smart contracts cannot be hacked.

The minus of the decentralized exchangers is that the state does not regulate them, so all the proceedings take place without the participation of the government. That is, the user will have to solve his problems independently. 

Cryptocurrency exchanges: disadvantages of using them

Such platforms allow earning and using different assets, but they are not without disadvantages.

• The main one is that cryptocurrency exchanges have no legal support. Therefore, check your country’s legislation and how it treats cryptocurrencies before trading. If it gets attacked by hackers and steals funds, the law won’t help;
• Don’t focus on just one digital asset. The market is constantly changing and going up and down, so you will be protected from significant losses. Put several cryptocurrencies in your portfolio.
• New projects appear all the time, many of which are fraudulent and have a bubble effect

You can work both on CEX and DEX; the main thing is that the trader has to study a lot of material and be very patient to avoid making spontaneous unreasonable decisions. 

How to choose the proper exchange?

There are many cryptocurrency exchanges. And it cannot be easy to choose the best one, even for those who have been in the market for a long time. However, some criteria will help you decide on your choice. Here they are:

• Reputation. Look and read reviews about the platform. You can also ask a question on some sites like BitcoinTalk or Reddit. That way, you can learn about the exchange firsthand from those who have already used it.
• Commission. The amount of commission is usually specified on the website of the platform. So, before you start trading, find out how much the exchange will charge for withdrawals, depo, and transactions.
• Reliability. Look at the number of licenses. The more licenses, the better. If it’s FCA, CySEC is ideal.
• List of cryptocurrencies. Some people need other cryptocurrencies besides Bitcoin; look for an exchange with the digital assets you need.
• Automated Trading. Traders need trading automation because the market is unstable and constantly changing.
• Payment options. By credit/debit card or bank transfer.
• Verification. Most exchangers require verification. Otherwise, you will not be able to withdraw and deposit funds. However, there are also anonymous exchangers, on which you do not need to be verified.
• Geography. Find out if the exchange you choose works in your country. For example, as of 2019, Binance does not work in the United States.
• Exchange rate. Depending on the platform, it varies. Sometimes even by 10% or higher. This is very important. The desire to spend more than usual must be justified.

Now that we know the pros and cons of exchanges and how to choose them, let’s look at the best for working with altcoins.

Crypto.com

Good ecosystem plus one of the best mobile apps. You can trade cryptocurrencies and invest. Access to an account is done in seconds. You can work with more than 250 digital assets on the exchange. Suitable for both beginners and industry gurus.

Features include easy registration, a trading terminal, and minimal commissions. Also, the platform provides bonuses for inviting new users. Getting a physical card with a cashback of up to 8% is possible. In addition, the service offers a store with NFT collections and drops of digital objects.

However, it is challenging to use geographically because the exchange is registered in Singapore due to several difficulties accompanying its use. Of the minuses, many do not like receiving beneficiaries from the exchange; you need to store funds in the format of internal CRO tokens. 

Gemini

Its reliability distinguishes it. Robust security protocols are integrated into the exchange. Users receive insurance for their savings. The platform operates under the SOC 2 certificate.

The exchange operates in the U.S. and is highly liquid. User funds are very securely insured in a hot wallet. On the downside, the exchange has high transaction fees. Also, the platform supports fewer digital assets than Crypto.com.

Gemini is regulated by the New York City Department of Financial Services. All user deposits are kept in the banks, which the Federal Deposit Insurance Corporation insures. Only this exchange can boast of that, which is why it is considered the safest exchange currently in operation. 

BitMart

The platform works with different cryptocurrencies but no fiat. It has a pool, which is periodically filled. Clients can invest digital assets in the loan granting service and, simultaneously, passively earn up to 60% per annum. There is a handy mobile app. As for commissions, they are lower than the market average.

The minimum deposit is $1. In addition to spot trading, you can also trade futures. Not an alarming degree of protection, with support of two-factor authentication and the expanded permission of a key API. Of the disadvantages we can highlight, the platform has no demo accounts and technical support in the form of a call center. 

Kraken

Focused on BTC, but also works with other digital assets. It is possible to exchange for other cryptocurrencies and fiat (dollars, euros, pounds, yen). In total, the platform supports 15 digital assets. The commission depends on the volume of trades and the type of trading pairs.

The exchange has a good reputation and has been working since 2011. It is considered highly liquid. There is a corporate program for users who work with large amounts. The wallet can be credited with both fiat and cryptocurrency.

Also to the pluses is the presence of API, two-factor authentication, and the ability to strengthen the account’s security. Transfers take a relatively small commission. In contrast to the previous exchange, Kraken has a support service.

From the disadvantages, it is worth noting that users complain about the not very clear user interface, large commissions for a deposit, and withdrawal of money to the account. Also, this exchanger is not suitable for beginners but advanced users.

Bisq

One of the main features of the exchange is that you do not need to register to use it. It works with more than 120 digital assets and the same number of fiat currencies. The platform operates directly on blockchain instead of exchange servers. It turns out that clients do not distribute information about themselves to anyone except transaction participants. In this way, security is achieved.

Users praise Bisq for its simple and user-friendly interface, which is unusual for DEX. In this case, the creators of the platform did everything harmoniously but with all the advantages of a decentralized exchange.

We can also say that the platform is designed more for newcomers to the market than for experts – it does not have complicated trading functions with which you can automate trading, protect yourself against losses, and so on.

As for user reviews, it isn’t easy to assess the reputation of Bisq. Some say it is safe and resists censorship, while more experienced market participants are dissatisfied with the lack of a number of advanced features. 

Compare the best cryptocurrency exchanges

Below we have summarized the data on the exchanges discussed above. Choose the one that fits your needs.

Exchange	Transaction Fees	Currencies	Minimum Deposit or Purcahse	Trade Limits
Crypto.com	0.04% to 0.4%	250+	$1	Yes
Bisq	0.1% to 0.70%	100+	No disclosed	No
Gemini	0.0% to 0.40% for active trader, 1.49 for most transactions on regular platform	75%+	Varies	Yes
Kraken	0.26%	15	–	Yes
BitMart	0.045% to 0.25%	1K+	$39 for BitMart purchase	Yes

Final thoughts

Based on the above, we can conclude that when choosing an exchange, it is important to push back on your own needs. If you want to trade a lot and large volumes with minimal commissions or use a quality mobile application, you have plenty of options. 

What exchange do you use? Write about it in the comments.