Gemini Insurance Against Some Fraud For Cautious Traders
Security against hacking can be a major concern for crypto traders as there is usually no way to claim back your stolen funds like with conventional banking. Gemini claims to have an insurance policy in place, which is reassuring, however there are some limitations and it only covers stablecoin. Just like Binance and Coinbase, Gemini offers FDIC insurance for your stablecoin balances, and you can pay to cover your crypto assets to the value of $250k.
Gemini has over 50 currencies including Fantom, Ethereum, Bitcoin, Litecoin, Terra etc. Its also available to members of all 50 US states, which is great if youre based in New York or one of the other cities that usually have limited access to trading exchanges.
The fee template is a little unusual, and varies depending on certain factors. Purchase fees are influenced by payment type and range from 1.49% to 3.49%, and trade fees are set and follow a tier from $10 exchanges to $200 . Although its trading and purchase fees are quite high, Gemini has low withdrawal fees, and users can even make up to 10 withdrawals per month for free.
You can make a start with Gemini today and get a huge $150 in Bitcoin when you deposit $1,000 into your account. If you want to start smaller, there are also multiple new account promotions on offer.
How Do Crypto Exchanges Make Money
There are several different methods in which cryptocurrency exchanges can make a profit. All of these involve the introduction of fees for processing transactions.
Probably the most popular transaction fee is percentage-based: this means that the exchange charges the trader a percentage of the traded value to complete the transaction. Percentage fees vary significantly between platforms, which is why it is essential to do your research before selecting an exchange to work with.
Some exchanges also offer a flat-fee charge, which does not take into account the amount of traded cryptocurrency but charges a set amount for every successful transaction. This might be a good choice for big-time traders looking to exchange large amounts of cryptocurrency, as a percentage-based fee would probably be higher.
Exchange Cryptocurrency For Fiat Via An Exchange
This is the most popular way as most of the leading centralized cryptocurrencyexchanges allow you to exchange crypto for fiat in a simple and straightforwardprocedure. Exchanges that allow for purchasing crypto with fiat are referred toas On-Ramps. Coinbase,Gemini,Bitstamp,Kraken, and many others support fiattransactions. All you have to do is link a preferred payment method, such as abank account, a PayPal or else, that you can use for fiat funding andwithdrawals. Bear in mind that if you want to cash out, most crypto exchangesrequire you to be compliant with their KYC and AML policies. Aside from that,some exchanges have withdrawal limits or withdrawal fees that you should takeinto account.
Keep in mind that transfers to bank accounts take several days, but usually nomore than a week. That is why, if you need to have your cash quickly, it is abetter idea to consider one of the next options.
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Pros And Cons Of Unocoin
|Unocoin offers high liquidity, unlike other exchanges.||The Unocoin customer service is slow and has limited technical assistance options.|
|Bitcoins held on the platform are stored in cold storage or cold hardware wallets.||The platform only supports Bitcoin.|
|The platform is extremely easy for traders and has simple navigation options.|
Benefits of Using UnoCoin Exchange
The Cheapest Cryptocurrency Exchanges
Sometimes, looking into the fee schedule of a crypto exchange can help you make a better assessment and decide whether it works with your investment plan or not.
For example, if youre a retail trader who looks at crypto trading as a hobby, you probably wont produce large trading volumes all the time. This means that you need an exchange with a lower starting fee as opposed to one that takes into consideration the trading volume to adjust its fees.
Binance has the cheapest option for crypto to crypto trading because its fees start as low as 0.1%! In case you own enough BNB , you can use them to pay your fees and get an additional discount. Incredible, right?
Another exchange suitable for UK retail traders is Kraken where the average fee is 0.26%.
If youre involved in the corporate or institutional market, an exchange like Coinfloor might be exactly what youre looking for. Based in the UK, Coinfloor has built a solid reputation among high volume traders for its affordable fees. The fees vary between 0.30% and 0.10% based on your 30-day trading volume. For example, volumes over 500,000 GBP qualify for a 0.20% fee while those over 1 million GBP get a reduced 0.10% fee.
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Is There An Insurance Fund
Insurance funds are safe havens that protect traders from unforeseen losses, which can result in traders losing more money than they have made.
Insurance funds are used to prevent shared losses, potentially giving you added peace of mind that there wont be any unforeseen disasters.
Traders typically do not need to be concerned about shared losses when using a well-capitalized insurance fund.
Binance Is Positioning Itself For Africa
Africa is a hot market for crypto, blockchain, Web3 startups and Binance is positioning itself for this region, says Michael Kimani, a Nairobi-based blockchain analyst. He adds that Binance is special because it has both an exchange and a P2P marketplace.
Theyre in a really good position to be one of the biggest crypto companies across Africa, says Kimani, who is also co-founder and head of growth for Africa at Fonbnk, a fintech company.
In Africa, Binance is competing with platforms such as Yellow Card, Luno, Buycoins Africa, Paxful, LocalCryptos, LocalBitcoins, and Remitano.
Although crypto is gaining popularity in Africa, most countries in the continent still havent regulated it, with some including Nigeria even banning its use. The allure of the currencies and lack of regulation have created a lucrative ground for scams, with Africans losing millions of dollars in swindles.
Sign up to the Quartz Africa Weekly Brief here for news and analysis on African business, tech, and innovation in your inbox.
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Criteria To Choose Best Crypto Exchange For India
Most Indian traders and investors have already found the best exchange for themselves from the above crypto exchange list. However, specific parameters need to be considered before calling a platform the best cryptocurrency exchange in india.
While evaluating crypto exchanges in India, especially to find the best cryptocurrency exchange for 2022, the following factors need to be considered:-
- Users need to conduct extensive research on the crypto exchange platform. They also need to make sure that the user reviews of the crypto exchange platform are authentic.
- The platform should support Bitcoin and other popular cryptocurrencies. Its security should mimic the authenticity of the exchange.
- The platform should provide the best crypto security and have legitimate buy-sell operations.
- The platforms can be compared on their buy-sell fees and the overall fee structures, which will also highlight hidden costs.
- The platform needs to work like reliable cryptocurrency exchanges.
- The exchange should support multiple purchase methods.
- The user experience of the exchange is an important deciding factor.
The above criteria can be used for rating other exchanges appropriately. This will also bring forth platforms outside the list of five.
Best For Beginners: Cash App
- No. Currencies Available for Trade: 1
- Transaction Fees: Varies
We like Cash App because it is very easy to use and gives you flexible options to withdraw to other cryptocurrency wallets.
Peer-to-peer money transfer like Venmo or Zelle
Ability to withdraw Bitcoin
Only supports Bitcoin and no other cryptocurrencies
Charge when sending money via credit card
Daily and weekly withdrawal limits apply
Cash App is a peer-to-peer money transfer system much like Venmo. This service allows users to split food, pay rent to a roommate, or even shop online at a retailer that supports Cash App. Cash App can essentially act as a bank account, and users can have their own Cash App debit cards.
Cash App also allows its users to invest in stocks, exchange traded funds , and Bitcoin. The mobile-first interface that this exchange uses is very easy to figure out and use, making it ideal for a first-time investor.
While its main feature is money transfers, it also has a basic cryptocurrency investment feature. Cash App allows users to withdraw cryptocurrency investments to their own wallets, which is the main reason we chose Squares Cash App over Robinhood as the best option for beginners looking to buy Bitcoin.
The ability to withdraw cryptocurrency from an exchange is extremely important in the cryptocurrency community. With Robinhood, you can invest and trade cryptocurrency, but you cannot withdraw and spend it how you wish.
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What Is A Cryptocurrency Exchange How Does It Work
A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. A cryptocurrency exchange works similar to an online brokerage, as users can deposit fiat currency , and use those funds to purchase cryptocurrency. Users can also trade their cryptocurrency for other cryptocurrency, and some exchanges allow users to earn interest on cryptocurrency held within the exchange account.
Choose An Exchange And Apply
The first obvious step is to choose the exchange you want to get featured on.Most project owners usually aim at the top-level platforms, which isunderstandable, considering the skyrocket effect they can have on a particularcryptocurrency if it gets listed. However, there are a few things to considerhere, such as the competition, listing policy, and fees .
Lets assume that youve already chosen the exchanges you want to get listed on.The next step is to apply to their programs. Most of the time, you will have tofill out an online form where you will describe the name and the description ofthe token, how can investors earn it, whether there are any tradingspecifications, what are the token holders rights, if any, etc. You will alsohave to provide them with the whitepaper to help the exchanges representativesget familiar with the projects roadmap, the team behind it, and your goals. Tryto provide as much details as possible. In a world where leading cryptocurrencyplatforms try to build credibility and distinguish themselves from the world ofscammers, and pump-and-dump schemes, they make everything possible to stay awayfrom listing shady or suspicious projects.
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What Is The Difference Between A Centralized Exchange And A Decentralized Exchange
A centralized cryptocurrency exchange is a platform where digital assets may be bought and sold. In this case, you must rely on a third party to oversee the transaction and protect the assets on behalf of the buyer and seller.
These exchanges are also headquartered in one central location, leaving their servers vulnerable to hackers and rogue agents in the building.
A decentralized exchange connects cryptocurrency buyers and sellers through a peer-to-peer marketplace.
In contrast to centralized exchanges, decentralized platforms are non-custodial, which means that when transacting on such a platform, a user retains possession of their private keys.
A decentralized exchange uses smart contracts that self-execute under certain conditions in the absence of a central authority.
These exchanges are spread across servers all over the world, making them nearly impossible to hack.
When Was The Last Cryptocurrency Exchange Hack
Hotbit is the latest crypto exchange to be hacked when it suspended its trading services on April 29,2021 to investigate a serious cyber security breach on its systems. The hackers attempted to access the exchanges hot wallets that store a small portion of customer’s funds but was denied access. The criminals left with user’s information such as phone numbers, email addresses and portfolio information on assets.
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Get A Legal Opinion Letter
Although this isnt a mandatory requirement for all platforms, the leadingexchanges in the US wont get you listed without it. The idea of a legal opinionletter is to have a lawyer who makes an official confirmation that the projectisnt a security. In most cases, the legal opinion should be issued from lawfirms that operate in the same jurisdiction as the company that runs theproject.
Regarding the requirement for tokens to not be classified as securities, manyplatforms explicitly instruct teams to adhere to theHowey Test . In fact, the DAO tokens, one of the biggestcrowdfunded cryptocurrency projects in history, failed the test and weredeclared securities by the SEC.
What Are Cryptocurrency Derivatives
A cryptocurrency derivative is a tradeable contract between two or more parties based on the future price of an underlying cryptocurrency token. As the crypto market has garnered more popularity over the years, derivatives trading has increased tremendously most derivative products are based on Bitcoin or other higher-cap cryptos. Some examples of different types of derivatives trading options are:
- Futures: A contract serving as an agreement between two parties to buy and sell an underlying crypto asset at a certain price at a particular date in the future many exchanges have dedicated platforms for futures trading.
- Perpetual Futures/Swaps: These are futures contracts, except without an expiration date. Since none of the individuals have to buy or sell, their positions can remain open if their account contains enough margin to cover them.
- Options: These are derivatives instruments that track a particular crypto tokens price over time they differ from futures contracts because you are simply purchasing the right to buy or sell the token at a specified price in the future. The two different options contracts are calls and puts call options give the trader the right to buy the underlying token at a specific date, whereas put options give the trader the right to sell it.
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The Safest Cryptocurrency Exchanges
One of the biggest challenges for crypto exchanges is dealing with hacker attacks and illegal trading. Investing in sophisticated cybersecurity measures is crucial in the development of any online platform that stores sensitive data and provides financial services.
To elevate the security standards, reliable crypto exchanges obtain licenses and register as money businesses with local or international financial regulators based on the markets and countries they provide services for.
Current regulatory frameworks require mandatory KYC checks for every single customer, monitoring and identifying suspicious trading patterns, reporting illegal activity, conducting third-party audits, implementing mandatory two-factor authentication method, etc.
Our candidates for the safest crypto exchange that have shown a satisfying level of security with consistency are Coinburp, Binance, and Coinbase. The three of them apply encryption protocols to sensitive data and keep the funds in air-gapped cold storage.
On top of the regular security methods, Binance has its own Secure Asset Fund for Users to which the exchange allocates 10% of the collected trading fees. By now, you already know that Binance has the highest trading volumes which means that their SAFU reserve vault could cover any unfortunate money losses.
The Best Decentralized Cryptocurrency Exchanges
Whats the difference between centralized and ?
Centralized or traditional exchanges as they were the first type of crypto exchanges available to traders are included in the order-making, processing, and finalizing transactions. Most of them offer escrow services and completely or partially cover the insurance for the customers funds.
Today, its still a challenging task to create a 100% decentralized exchange. One such decent option is Bisq, a platform where you can purchase Bitcoin with any fiat currency without providing your ID. Sadly, the long waits and slightly higher expenses can put off a lot of traders.
If your crypto trading portfolio focuses on ERC-20 tokens, you can check out the decentralized Ox and Airswap protocols.
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The Legal Concern Of An Unregulated Global Economy
As the popularity of and demand for online currencies has increased since the inception of bitcoin in 2009, so have concerns that such an unregulated person to person global economy that cryptocurrencies offer may become a threat to society. Concerns abound that altcoins may become tools for anonymous web criminals.
Cryptocurrency networks display a lack of regulation that has been criticized as enabling criminals who seek to evade taxes and launder money. Money laundering issues are also present in regular bank transfers, however with bank-to-bank wire transfers for instance, the account holder must at least provide a proven identity.
Transactions that occur through the use and exchange of these altcoins are independent from formal banking systems, and therefore can make tax evasion simpler for individuals. Since charting taxable income is based upon what a recipient reports to the revenue service, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex and difficult to track.
Systems of anonymity that most cryptocurrencies offer can also serve as a simpler means to launder money. Rather than laundering money through an intricate net of financial actors and offshore bank accounts, laundering money through altcoins can be achieved through anonymous transactions.
How Many Crypto Exchanges Have Been Hacked
According to our research, a total of 45 exchanges have been compromised resulting in the theft of customers funds or personal information. In 2021, the number of hacked exchanges has decreased by 62.5% which is based on confirmed and reported incidents, with some exchanges being hacked on multiple occasions.
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How We Looked At Each Of The Five Categories
We assessed the level of beginner-friendliness by looking for exchanges that offer direct fiat purchases, have a managed cryptocurrency wallet for customers, use a clean and intuitive user interface, allow quick signups and have a reputation for good customer service.
To be one of the best beginner-friendly exchanges, a platform had to be a broker where customers can simply buy cryptocurrency from the exchange, rather than needing to deal with other traders on the open market.
Being a regulated exchange with specific, legally enshrined consumer protections was highly regarded.
Fiat currency purchases
To be eligible in this category, an exchange naturally needs to offer fiat currency purchases. We then compared exchanges to find one where any eligible customer who wanted to buy cryptocurrency with their local currency could, regardless of their preferred payment method. Various payment methods, including some with low- or no-deposit fees, some which can be processed instantly and cash payment facilities, were highly regarded.
Cryptocurrency selection was judged on the sheer range of cryptocurrencies but also strongly considers how quickly exchanges typically are to list newly released cryptocurrencies and how often an exchange is the first major platform to list a given token.
Suitability for active trading