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Lakebtc.com Review : Virtual Bitcoin Exchange 2020 Updated
LakeBTC project was started in early 2020 as a virtual bitcoin exchange initially for traders and other financial professionals interested in cryptocurrencies and blockchain technology.The LakeBTC is based in Shanghai, China and it serves the Asian market primarily. Later that year, the exchange was incorporated and operated under the current domain name. Today, LakeBTC stands for Lake Banking Technology Company.
With years of experience trading treasuries, agency bonds, currencies, commodities, interest rates, volatilities and all types of derivatives and structured products, LakeBTC is dedicated to building a bitcoin platform for pricing, liquidity, security, derivatives and indexes. On LakeBTC, individuals, merchants and institutions can easily trade bitcoins, lock down the prices, manage their exposures, and hedge their risks.
The LakeBTC also has an offshoot project called LakeBanker which allows users to “become an exchange of their own” and sell cryptocurrency to people in their local area with increased convenience. LakeTrader is an in-browser (and hence cross-platform) app that allows traders to view order book data, trade history and open orders, along with a number of powerful charting tools that allow both technical analysis and one-click trading. The project has its own token called BAC which can be traded on both LakeBTC and LakeBanker platforms. This feature is suitable for more advanced traders looking to day-trade.
How To Start Trading On LakeBTC
Registration on LakeBTC is a two-step process. The first step to registering is entering an email address and password. Before you can log in, you are required to follow the link emailed to you in order to confirm your address.
As for the verification, trading cryptocurrencies at LakeBTC does not require any sort of identity check. Situation changes when you wish to involve fiat money, like USD or EUR into your trading strategy. The process itself is very simple, as you need to provide personal details (first and last name, as well as ID number, ) as shown in the picture below.
You should also provide your scanned ID in the same application, due to the KYC and AML policies that the firm follows.
To trade digital currencies on LakeBTC traders don’t have to go through any process of verifying their identity, but the verification process is a compulsory one for users who want to trade with fiat currencies.
The Verification process at LakeBTC comprises all the routine steps and needs official documents. In order for users to get verified on LakeBTC, they are required to submit the following:
- Full name and address. You should be advised that giving your full name as it is on your government-issued document is very important, as withdrawals can only be made under the full name used in the account.
- Picture of any government-issued document such as ID, driver’s license, passport. The photograph of the material needs to be taken on both sides.
- Mobile phone number
- Proof of residency, which must have been issued less than three months. If in any case there is no proof of residency to tender, the company allows other government-issued ID photographs.
- If you plan to trade high volumes or is a resident of certain countries, you will be required to take a selfie photo of the documents you submitted.
For those that plan to go ahead with an unverified account, LakeBTC does not impose any trading or withdrawal limits as many other companies do.
LakeBTC Deposit and Withdrawal Options
In terms of payment methods, LakeBTC supports a wide range. They include the following:
- Perfect Money
- Western Union
Fee Of LakeBTC
As for the applicable deposit fees, the fee varies according to the methods used. The trader will be shown a fee review before he submits a request to deposit. As mentioned above, LakeBTC also supports bank wire transfer. This is the costliest method as well as being the most time-consuming. The withdrawal time takes as long as 5 business days and the charges vary from $15 to $65. Since the exchange is based in Shanghai, China, there are international transfer fees involved for international traders. For traders who deposit with BTC, Ripple and System Banker, there is no deposit fee involved.
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For Takers, the applicable trading fee is 0.2%. For makers, the trading fees are as follows:
- 0% for trading volume exceeding 20,000 BTC per calendar month
- 02% for trading volume exceeding 15,000 BTC per calendar month
- 04% for trading volume exceeding 6,000 BTC per calendar month
- 06% for trading volume exceeding 3,000 BTC per calendar month
- 10% for trading volume exceeding 500 BTC per calendar month
- 15% for trading volume less than 500 BTC per calendar month
Depending on the methods used, withdrawals are subjected to various fees. For withdrawal through the System Banker network, the following charges are applicable:
- Withdrawals with volume less than 6000BTC = 0.3% + $5
- Withdrawals with volume between 6000BTC and 15.000 BTC = 0.2% + $5
- Withdrawals with volume exceeding 15.000 BTC = 0.1% + $5
As for Bitcoin withdrawals, there is no withdrawal fee.
The platform’s API has been updated to the second version and can be found on their website.It provides a 4-part overview – Market Data, Trading API, Sample Code (REST), and Sample Code (Web Socket).
LakeBTC Trading conditions
Trading instruments (cryptocurrencies)
LakeBTC currently only supports three of the major cryptocurrencies – BTC, ETH and LTC.
The exchange accepts many different FIAT currencies, including but not limited to – USD, CNY, SEK, EUR, HKD, JPY, GBP, AUD, CAD, SGD, CHF, KRW, ZAR, ARS, BRL, MXN, INR, NZD, IDR, THB, MYR, TRY, RON, VEF, NGN, KES, XAF, XOF.
There’s one rule when it comes to deposits and withdrawals in FIAT currencies – if the account is registered in one FIAT currency, deposits and withdrawals are possible in only that currency. Of course, trading is possible in all available currencies.
The trading platform currently offers only Bitcoin and FIAT pairs. No other cryptocurrencies are available for trading.
Margin trading is one of the features not available at LakeBTC. As mentioned above, this is a company primarily oriented towards beginners in the cryptocurrency space. Allowing inexperienced traders to “gear-up” in such a volatile and dynamic market as cryptocurrencies is not a good idea. If you still want to trade with leverage, Binance or Poloniex are potential alternatives.
LakeBTC Supported Countries
In terms of supported countries, LakeBTC currently supports countries in the following regions:
- Africa (South Africa, Nigeria)
- Asia (China, Taiwan, Japan)
- Europe (UK, France, Germany)
- USA (excl. state of New York)
Apart from the restriction on the state of New York, LakeBTC also supports users from the U.S.
LakeBTC’s trading platform has acceptable functionality, looks nice and is easy to navigate. The Lake company gives two separate interfaces for Bitcoin trading. These two interfaces are the standard trading interface and the proprietary “Lake Trader” platform which is more tailored to the experience of the advanced traders.
The LakeTrader is the original trading platform provided by the exchange. Those who are familiar with the cryptocurrency world will not be surprised about the fact that it is a web-based tool. Trading View’s charting package, which is always a nice one, is rendered on the platform.
Compared to other platforms, the website is a bit slower, but it’s reasonably responsive. When it comes to the mobile interface, the platform is utterly user-friendly on mobile, as the entire platform was developed in html5. There are no mobile applications till now, but the website works great when accessed with a mobile device browser.
This exchange does not have quite a high volume, and it only allows Bitcoin trading. LakerBTC’s platform does not support many advanced order types, thereby limiting the traders to:
Primarily used to protect inexperienced users from losing their funds.
Darkpool carries a higher fee, and it is used in the event of large trades to make the order invisible and thereby lessen the impact on the market.
The ‘Maker only’ can be used in the case when the trader wants to pay only the maker fees, automatically removing the orders if it’s a taker.
LakeBTC currently doesn’t support margin and short trading, but it plans to include these features. It doesn’t support any futures or derivatives either.
As for the safety of your account, you are stuck with good old username, password, and two-factor authentication (2FA) triangle. API keys can also be used but they are quite common now in the market as well, with both Huobi and Cobinhood offering them as well.
Since the firm operates with a good reputation, we deem security lacking in functions, which needs to be changed in near future.
Like all other exchanges, LakeBTC promises to have high security, good liquidity, fairness, and friendly customer service. Here’s a breakdown of the LakeBTC advertised features:
The company claims to provide excellent liquidity with high trading pairs availability and fast trade matches, even under a lot of volume. While LakeBTC claims to be one of the top four exchanges in the world in volume it is difficult to find data which supports these claims.
Three-tier referral program! Never seen before! LakeBTC just made the best referral program available to every user, and there’s no upper limit for bonus earned!
3-Tier Referral Program
This generous referral plan brought to you by LakeBTC has never seen before in the industry! You, as an individual, business, forum moderator, or website owner, can make a steady and lucrative income by inviting users to LakeBTC.
- You – any individual or business user with a LakeBTC account.
- Tier-1 Referral – users invited to LakeBTC directly by you.
- Tier-2 Referral – users invited to LakeBTC by Tier-1 referrals.
- Tier-3 Referral – users invited to LakeBTC by Tier-2 referrals.
For all referrals, you earn a percentage of the trading commission fees they generated, as below:
- Tier-1 Referral – 30%
- Tier-2 Referral – 10%
- Tier-3 Referral – 5%
This is probably the best referral plans you’ll ever find on this planet! Let’s demonstrate how it works with some numbers.
Multiple Trading Tools
LakeBTC offers trading APIs for advanced users who prefer arbitrage, market making, or algorithm trading. The platform has a great minimalistic design with two different interfaces for trading Bitcoin – the standard trading interface and the “LakeTrader” interface, which allows advanced users to access various trading options easily.
Still, the website does seem slower than the industry average. The whole platform was developed in html5 and is therefore entirely user-friendly on mobile devices, which supplements the lack of an official trading app.
LakeBTC has a market surveillance program, comprehensive risk management, carefully designed products, and strict internal controls. The exchange claims that they have no co-los, no under-the-table deals, no privileged access, and no back channels, meaning it offers a fair and equal platform to its users.
For the benefit of their customers, LakeBTC has translated their website into 6 different languages. The languages covered included English, Swedish, Japanese, French, Spanish and Brazilian Portuguese. Surprisingly, there is no support for Chinese even though the exchange is based in Shanghai. Customer support is through email or Weibo. However, before contacting customer support, it is advisable to first check out the FAQ section. LakeBTC FAQ is pretty comprehensive and provides a lot of useful information.
There are some complaints related to the locking users out of their accounts, and the company’s location (China) raises suspicion, but overall this is a reliable exchange.
Pros and Cons
⬤ a large number of fiat currencies available
⬤ big volumes can be found at OTC desk
⬤ more than sufficient liquidity rate
⬤ variety of fiat deposit/withdrawal methods
⬤ verification needed for fiat transactions
⬤ lack of security functions (only 2FA available)
⬤ a small number of cryptocurrencies available for trade
Best Cryptocurrency Exchange 2020 – Top Cryptocurrency Exchanges
Everybody is making money in crypto these days, and I guaranteed that they are using the list below of the best cryptocurrency exchanges to do it. If you’re looking to invest and make money with crypto, you’ll need to know which the best cryptocurrency exchange is to use.
This guide will introduce you to top cryptocurrency exchanges and their advantages and disadvantages. You’ll find out the biggest and most popular exchanges, and the best cryptocurrency exchange to use.
So, by the end of this guide, you’ll be able to choose the best crypto exchange to suit your needs and financial strategy.
Table of Contents
First, What Is a Cryptocurrency Exchange and Why Do We Need Them?
A cryptocurrency exchange is basically a marketplace where someone can exchange or trade one cryptocurrency for another cryptocurrency. These exchanges help crypto investors sell their coins quickly and easily when they are ready to cash out.
They also help people invest into other coins on the market through the act of trading, much like a stock exchange. In some exchanges, you can even exchange fiat for crypto or vice versa, but that depends on the type of cryptocurrency exchange you use.
There are four different types of crypto exchanges that you can use to trade and buy coins from. Understanding the differences between the exchanges is the first step to choosing the best cryptocurrency exchange for you.
The Main Types of Cryptocurrency Exchanges
The four types of crypto exchanges are trading exchanges, decentralized exchanges, broker exchanges and P2P exchanges.
This type of exchange is considered the “traditional” cryptocurrency exchange. It allows you to trade cryptos for other cryptos. For example, if you own Bitcoin and would like to own some Ethereum, you could trade some of your Bitcoin for Ethereum using a trading exchange.
✓ They offer a wide range of different coins in their marketplace, from the most popular coins to up and coming coins fresh out of their ICO (initial coin offering)
✓ On this kind of exchange, you can easily invest your money into various cryptos to build your investment portfolio
✓ Their user interfaces are user-friendly, and you can learn to use them quickly
✓ The transaction fees of trading exchanges are cheaper than other types of exchanges, which makes it easier for you to make a profit when day trading
✗ Due to the large variety of coins available on a trading exchange, it can be confusing and overwhelming for a beginner who is only interested in popular coins
✗ If you want to sell your crypto for fiat currency, you cannot do that on a trading exchange
✗ They do not offer a high level of security; if the exchange your using gets hacked, your coins are threatened and could be stolen
✗ If you’re looking to do big transactions on the trading exchange, you will have to verify your identity with the cryptocurrency exchange
Examples of Trading Exchanges: Binance, GDAX, OKEX
Decentralized Trading Exchanges (DEX)
This type of trading exchange is one that allows you to trade cryptos with other people through the blockchain directly. Unlike a centralized exchange, you don’t need a “middleman”; there is no central authority or main server required to make a transaction.
✓ Since there is no main server to conduct or facilitate your trades in this type of exchange, you remain in complete control of your coin and private keys
✓ The exchange cannot be hacked and robbed of your coins
✓ This exchange is great for connecting to your cold storage wallets
✓ No matter how large your transactions are, you always remain anonymous
✗ These exchanges have a much lower trading volume, which means that it can be harder to buy or sell your coins quickly.
✗ There are fewer coins in these exchanges and fewer coin options, too.
✗ The user interfaces are a bit more difficult to navigate and may take longer to learn.
✗ Transactions can take longer than traditional exchanges and the fees are much higher.
✗ Poor or no customer service, which means if anything goes wrong with your transactions, you’re on your own!
Examples of Decentralized Exchanges: EtherDelta, IDEX, Waves Dex
A broker exchange is one that allows you to buy into crypto. In other words, with a broker exchange, you can exchange your fiat currency for cryptocurrency or cash your crypto out for fiat. This is the best cryptocurrency exchange type for beginners.
✓ These are highly professional exchanges that are well-funded
✓ They often have good customer service and their user interface is easy to learn and use, making them ideal for crypto newbies
✓ You can connect your bank debit/credit cards to these exchanges
✓ You can buy and sell your crypto here using your local currency
✗ These exchanges only have the most popularly used and accepted coins on their platforms
✗ The transaction fees are higher than most exchanges
✗ They aren’t very secure; if the broker exchange gets hacked, then you could lose all of your coins
✗ KYC (Know Your Customer) rules apply. This means that ID verification is required to use these exchanges.
Examples of Broker Exchanges: Coinbase, CoinMama, CEX.io
A P2P (peer-to-peer) exchange is one that allows you to buy or sell cryptocurrency without ID verification. You can even buy or sell crypto with fiat or cash. Buyers can find sellers through these platforms on their own or they can set a price they’re willing to buy/sell at and the platform will match them with buyers/sellers.
✓ These exchanges offer direct peer-to-peer buying and selling
✓ Sellers can choose the price they want to sell for and can sell for more than the fixed market price.
✓ You can remain completely anonymous.
✓ You can purchase crypto using cash in some cases
✗ P2P exchanges have the highest fees of all the other exchanges
✗ Sellers choose the price which they will sell their crypto; so, buyers are often left to buy higher-priced coins.
✗ This type of exchange isn’t good for transacting large amounts of crypto
✗ Using a P2P exchange can be a bit unsafe and susceptible to scams, depending on who you’re trading with
✗ Not many cryptocurrencies are available for this style of trade
Examples of P2P Exchanges: LocalBitcoins, LocalEthereum
What is The Best Cryptocurrency Exchange
The Biggest Trading Exchanges
Now that you understand a bit more about the different types of exchanges, let’s look at the biggest and most popular exchanges.
The leading trading exchange in the crypto sector — Binance started in China and then moved to Japan and Singapore before settling in Hong Kong. This new, Asia-based exchange is the most used around the world and is popular for its low trading fees and fast transactions.
- Multi-Device Support
- High Performance
- Multiple Language and Country Support
- Adopted Technology
- API Support
- Experienced Team
The platform offers both basic and advanced user interfaces, so newbies and experts can both use the exchange with ease. You can find many different coins on the platform and cool options for trading pairs, including BTC, ETH, BNB, and USDT. As mentioned earlier, the fees on Binance are cheap and you can also trade on the platform anonymously.
As for the service itself, Binance has one of the best referral programs. This allows users to make a commission when their friends sign up and transact on the platform. They have a good team and offer great customer support.
There are no fiat transactions and you cannot connect your Binance account to your bank account or credit cards. This means you must buy your coins elsewhere if you’re looking to use fiat — you can do this using a broker exchange, and then transfer the coins to your Binance account. This also means you can’t withdraw to fiat either.
If you’re looking to withdraw your crypto from Binance to another wallet of yours, any transaction over 2 BTC requires ID verification.
If you’re a more experienced trader, you might find the lack of leverage trading and advanced order placement to be inconvenient for you.
Fee: 0.1%. However, if you pay with BNB token, the fee is 0.05%
Founded in July 2020, GDAX (Global Digital Asset Exchange) is an American exchange and the sister exchange to Coinbase. It allows users to trade USD and Euros for BTC, BitcoinCash, ETC and LTC, and British Pounds for Bitcoin and others. It’s great for users who want to trade between cryptos and are already using Coinbase.
- World-class user interface
- Multiple Fiat and Cryptocurrency Pairs
- API support
- Margin Trading
- Accepts Bank Transfers
It’s a trusted and secure platform that offers margin trading with leverage from 2x to 3x, which is something that experienced traders will find useful. It also has other great features for traders, such as advanced order types and placement. Its fees are cheaper than Coinbase and they have excellent customer support.
GDAX doesn’t have the same wide variety of cryptos that Binance has. It also has limited trading pairs and slighter higher fees than Binance. It does not have multi-device support and its analysis charts are not nearly as professional in comparison.
The Biggest Decentralized Exchanges
This decentralized trading exchange was launched in 2020 and was founded in the Republic of Panama. It features ETH and all Ethereum-based ERC20 tokens, and you can use IDEX to manage all your Ethereum-based funds.
- There are four ways to open your wallet on the exchange: Keystore File, Manually Entered Private Key, MetaMask or use the Ledger Nano S hardware wallet
- High level of security
- Low Fees
- Good Customer Service
- The user experience of a centralized exchange
- Leverages smart contracts to manage user transactions
IDEX uses smart contracts that let users manage their own private keys and securely trade on a peer-to-peer platform. It has the largest trading volume among the best-decentralized exchanges, at $5.7M USD per day.
Its rich interface is not user-friendly. There is no mobile app or multi-device support. You can only trade Ethereum and other ERC-20 tokens on this platform.
Fee: 0.1% for market makers; 0.2% for market takers
Made by Etherboost, Etherdelta is another decentralized platform that only supports Ethereum and ERC-20 tokens. It is similar to IDEX, however, its popularity has decreased as transaction times are much slower.
- Lets you manage funds directly with your own Ethereum wallet
- Allows you to sync a Ledger Nano S or Meta Mask wallet to your account
- You don’t need an account to begin trading
Just like IDEX, EtherDelta uses smart contracts to let users manage their peer-to-peer trades securely using their own private keys. To use this exchange, you can use your existing Ethereum account. You don’t have to start an account on the platform.
The user interface, while useful, is not beginner friendly. It does not have a mobile app or multi-device support. You can only trader Ethereum-based coins through this exchange. It doesn’t have as many features as IDEX.
The Biggest Broker Exchanges
Coinbase is a digital currency wallet and platform that was founded in June 2020 in San Francisco, California. Using Coinbase, people can deposit their local currency to buy into some of the most popular cryptocurrencies. With 10 million users and growing, it is considered the most popular broker exchange on the net.
- Top crypto assets such as BTC, ETH, LTC, BCH
- Offers insured Bitcoin deposits
- Offers instant buy feature
- High liquidity
- Easy to use
- API Support
Coinbase is a safe platform that’s backed by trusted investors. It makes it easy for first-time investors to buy BTC, BCH, ETH, and LTC. They accept over 55 fiat currencies. Along with allowing users to buy and sell a cryptocurrency, Coinbase also provides wallet and merchant services.
This, in my opinion, is the best cryptocurrency exchange for purchasing using your local currency.
Coinbase has limited payment methods, despite the fact it allows users to trade fiat for crypto. ID verification is required. It also monitors your account and can report your activity and funds to the IRS and SEC. It is only available to the US and 31 other countries. Even though it is well funded and managed, its customer service isn’t the best.
Fee: Ranging from 1.49% to 3.99%
This broker exchange is a popular platform that people use to buy into crypto. Considered one of the quickest ways to buy into crypto, this Slovak Republic-based company was launched in 2020.
- Live pricing in USD or EUR
- Allows the purchase of fractions of BTC
- Easy to review your orders and transactions
- Purchase crypto directly from the site
- Multi-language support
One of Coinmama’s best features is that it “locks” your BTC or ETH rate at the time of purchase. That way, you get the exact amount of cryptocurrency you paid for.
You can only buy crypto through Coinmama; you can’t sell through the platform. They do not accept PayPal, American Express or Discover and you can’t link it to your bank account. It doesn’t have a smartphone app or multi-device support. It also requires ID verification and only sells BTC and ETH.
There is also a transaction limit of 5000 USD/EUR per day and a credit card purchase limit of 30,000 USD/EUR per month.
Fee: Transaction – 5.5%; Credit Card Purchases – 5%
The Biggest P2P Exchanges
LocalBitcoins is a platform for sellers and buyers from all over the world to transact and trade Bitcoin between themselves. It was founded in 2020, which makes it one of the first and oldest peer-to-peer Bitcoin exchanges. Its headquarters are in Helsinki, Finland.
- Escrow service to ensure trades are completed and both buyers and sellers are protected
- Merchant services to receive Bitcoin from customers
- Enables online or face-to-face Bitcoin transactions by matching people based on location
- View profile and feedback history of your counterparty to assess them before a trade
- Accepts almost any payment method acceptable to the community
- No ID verification required
- Pay with physical cash
Through LocalBitcoin, users are free to buy and sell Bitcoin amongst themselves at the price they choose and agree upon. There are no limits to buying and selling and any payment method that the trading parties agree on is acceptable. It offers a quick sell feature to help sellers find buyers quickly.
This is the best Bitcoin exchange if you’re looking to stay completely anonymous or want to buy Bitcoin with cash!
Due to the nature of the exchange, some people on the platform are scammers, so users need to be careful. The personal nature of the trades makes this platform unsuitable for people looking to do large transactions unless you meet face to face and purchase with cash.
LocalEthereum is very similar to LocalBitcoin, a service that allows you to buy and sell Ether in a P2P marketplace. It’s a worldwide exchange that connects buyers and sellers to trade with each other anywhere in the world.
- Like LocalBitcoins, there’s an escrow service to ensure trades are completed and trading parties are protected
- Any payment method can be used if the community agrees to accept it
- No limits to the size of the transaction
- Easy to use
- One of the safest peer-to-peer crypto exchanges to use
- Offers “identity coins” to help identify wallet addresses and prevent the mistake of accidentally sending coin to the wrong wallet
LocalEthereum is a trusted platform among the P2P exchanges with competitive fees that lets you choose your own payment options. Its escrow system protects both buyers and sellers.
This is the best Ethereum exchange if you want to stay completely anonymous or want to buy Ethereum with cash!
As with any P2P exchange, the only real downside is the possibility of getting caught by a scam. You should always do your research before using p2p platforms so that you can avoid getting scammed!
Fee: 0.25% for sellers; 0.75% for buyers
Best Cryptocurrency Exchange 2020
While the best cryptocurrency exchange varies per person based on their unique needs and reasons for using the exchange, my favorite choice is Binance.
I think Binance is the best cryptocurrency exchange because they have a good track record. They have a large selection of coins to trade and a huge volume. Their fees are cheap, the interface is easy to use, and the customer service is good! Not only that, but its quick deposits and withdrawals make it great for quick trades.
Of course, everyone’s opinion on the best cryptocurrency exchange will be different. Again, that’s based on your reasons for using the exchange, where you are located and the size and frequency of your transactions, among other things.
However, here is a comparison table of different cryptocurrency exchanges — including some that I have spoken about today and some others you might want to look at!
So, Which is the Best Cryptocurrency Exchange for You?
If you’re just getting started and want to buy crypto with your local currency:
Use Coinbase if you are in its select group of 32 countries. It is the top crypto exchanges that will let you spend your fiat on crypto. If you’re elsewhere, Coinmama might be better for you. Of course, Coinmama can’t be used in Europe, Australia or North America.
If you want to trade multiple cryptocurrencies with low fees and don’t want to use ID:
Use Binance. You don’t need an ID for transactions below 2BTC. While other exchanges, like P2P exchanges, don’t require ID at all, Binance has the biggest volume and largest selection of Alt Coins. Fees here are cheaper than on other exchanges and can get even cheaper if you pay them with the Binance BNB coin.
If you want to buy Bitcoin or Ether with cash and remain anonymous:
Use a P2P network like LocalBitcoins or Local Ethereum. They allow you to buy your coins for the price you want at the volume you choose. Plus, you can use any payment method your counterparty agrees to.
So, you now know the top cryptocurrency exchanges and how they are different from one another. The next step after knowing the best cryptocurrency exchanges is to figure out your investment strategy.
I wish you all the very best of luck on your crypto trading/investing journey! And just remember — stay safe out there.
In this review, we shall look at ByBit, a global crypto derivatives trading platform priding itself on its quality leverage trading options paired advanced features, great interface, and performance.
- Web address: ByBit
- Support contact: Link
- Main location: Singapore
- Daily volume: ? BTC
- Mobile app available: Yes
- Is decentralized: No
- Parent Company: Bybit Fintech Limited
- Transfer types: Crypto Transfer
- Supported fiat: –
- Supported pairs: 4
- Has token: –
- Fees: Very Low (Compare rates)
- Accessible and clear interface
- The platform offers great performance
- Integrated asset exchange
- Low fees
- No phone-based customer support
- Advanced features may be intimidating for novice traders
- No fiat support
ByBit Review: Key Features
Started in 2020, the ByBit platform posits itself as the key market player in the crypto derivatives space, friendly to veteran and newcomer traders alike. Led by its CEO Ben Zhou, the platform is based in Singapore, but its outreach is already a global one, thanks to an impressive array of features, including:
- Margin trading with up to 100x leverage. Trade Bitcoin, Ethereum, EOS, and XRP perpetual contracts with up to 50x, 100x or lower leverage to find a suitable balance between risk and profits.
- Multi-currency support. At ByBit, you have the ability to deposit, withdraw, and open positions in BTC, ETH, EOS, XRP, and even USDT (not available for trading, hedging only). Use the internal Asset Exchange feature to convert cryptocurrencies with ease.
- Low fees. ByBit offers some of the most competitive margin trading fees on the market.
- No KYC exchange. The platform does not ask you for any personal or private information.
- Powerful and well-designed trading interface. ByBit has a robust, powerful and well-designed platform and is easy to navigate yet is full of advanced options. It can handle up to 100,000 trades per second.
- Secure platform. The exchange has no history of hacks, breaches, or leaked user information.
- 24/7 customer support. The support is available in multiple languages and takes the form of desk-based live chat function and email.
All in all, ByBit is a relatively fresh yet ambitious margin trading exchange and a viable alternative to competing leverage trading sites like BitMEX or PrimeXBT.
Bybit is a relatively new exchange that started in the 2020 bear market. Although its headquarters is in Singapore, the exchange is incorporated in the British Virgin Islands as Bybit Fintech Limited. Besides Singapore, ByBit has offices in Hong Kong and Taiwan.
ByBit’s founding team has a strong background in the Forex industry, investment banking, and blockchain technology. The exchange’s CEO is Ben Zhou.
During its first two years of operation, ByBit has accrued over 100,000 users from North America, Europe, Russia, Japan, South Korea, and other prominent crypto markets.
Due to regulatory issues, ByBit does not allow traders from the United States on its platform. However, U.S. traders are not alone, since ByBit also excludes residents and citizens from:
- Quebec (Canada)
- Crimea and Sevastopol
- North Korea
Other than these countries, ByBit’s services are available worldwide.
ByBit is a generous exchange in terms of trading fees. The exchange charges 0.075% for the market takers and pays 0.025% for the market makers, which is a relatively fair price in the industry.
|Contracts||Max. Leverage||Maker Rebate||Taker Fees||Funding Rate||Funding Rate Interval|
|BTC/USD||100x||-0.025%||0.075%||0.0416%||Every 8 hours|
|ETH/USD||50x||-0.025%||0.075%||0.0689%||Every 8 hours|
|EOS/USD||50x||-0.025%||0.075%||0.0980%||Every 8 hours|
|XRP/USD||50x||-0.025%||0.075%||0.0692%||Every 8 hours|
Other than trading fees, BitBuy users also incur a funding fee, which indicates funding exchanged between buyers and sellers. A positive funding rate means that you paid to fund someone, while a negative funding rate indicates that you are receiving it. However, ByBit does not pay nor receive any of the funding fees.
ByBit does not charge any deposit and withdrawal fees. The platform only asks you to cover the network fees during withdrawals, which are fixed and amount to:
|Coin||Bitcoin (BTC)||Ethereum (ETH)||XRP||EOS||Tether (USDT)|
As you can see, the services provided by ByBit are not expensive. Here is how they fare with other popular margin trading exchanges:
|Exchange||Leverage||Cryptocurrencies||Maker Fee/ Taker Fee||Link|
|ByBit||100x||4||-0.025% / 0.075%||Trade Now|
|PrimeBit||200x||3||-0.025% / 0.075%||Trade Now|
|Prime XBT||100x||5||0.05%||Trade Now|
|BitMEX||100x||8||-0.025% / 0.075%||Trade Now|
|eToro||2x||15||0.75% / 2.9%||Trade Now|
|Kraken||5x||8||0.01 / 0.02% ++||Trade Now|
|Poloniex||5x||16||0.08% / 0.2%||Trade Now|
|Bitfinex||3.3x||25||0.08% / 0.2%||Trade Now|
In terms of fees, ByBit competes with other low fees and high leverage tier platforms, namely BitMEX, PrimeXBT, and PrimeBit. However, ByBit stands out from the group by being the only multi-currency margin trading exchange in this cluster, while others are so-called Bitcoin-only platforms.
Last but not least, ByBit has an integrated Asset Exchange, which lets you switch between different cryptocurrencies within the platform. Each swap comes with a different rate, but if the difference between the quotation rate can never be more than 0.5% per swap.
In sum, ByBit is a very competitive exchange in terms of fees and unique features.
How Does ByBit Support Leverage Trading?
ByBit supports leverage trading based on the value of the derivative you want to use for trading.
Leverage trading is a bit riskier option, best left to more experienced traders who are capable of capitalizing on the platform’s offer to trade BTC/USD with 100x leverage. The combinations involving ETH, EOS, and XRP offers leverage going to 50x at maximum, which is still an attractive option for risk-lovers. The platform offers higher leverage compared to regular trading platforms like Kraken or Binance but is less compared with PrimeBit.
Margin trading warning. Source: ByBit.com
ByBit also features risk limit schemes in four supported cryptocurrencies, allowing for the reduction in limits. Expenditures related to financing are covered by the interest rates and calculated premiums and discounts.
ByBit uses the market maker/taker approach to its pricing, meaning that the level of fees you pay in terms of derivatives depends on your capacity to support the platform’s liquidity. In this case, a market maker will have the right to a rebate (at the rate of 0.025% for each trade). Otherwise, regular traders will be required to pay 0.075% per trade.
ByBit’s Insurance and Liquidation Scheme
As the settlement of futures contracts carries various risks, the ByBit team has come up with the insurance fund mechanism. Its resources become available if a trader undergoes liquidation which goes below what is considered the bankruptcy price i.e. their initial margin gets wiped out. The platform also features several mechanisms to tackle this advanced trading segment:
- Stop-loss mechanism on positions prevents them from reaching the rates which entail liquidation.
- Auto margin replenishment is used to keep the margins at satisfactory levels whenever they are in danger of becoming depleted.
- Dual price mechanism is put in place to lower the risks of market manipulations by introducing the mark price (global Bitcoin price) which is tied to liquidation and the last traded price which serves as the basis of calculation when a position is closed (market price on ByBit)
ByBit also implements a system supporting automatic deleveraging. It gets activated in case a position is unavailable for liquidation while having the price that goes above the bankruptcy one and the insurance fund is unable to cover for it. In this case, this system can automatically deleverage the position of a trader based on predefined settings.
Is ByBit a Secure Trading Option?
ByBit will not have you go through know-your-customer (KYC) procedures, meaning that you will not be asked to submit ID documents or any similar information for trading. Yet, this hardly means that the platform has the security put on the back burner. In addition to the two-factor authentication (2FA) via email, SMS, and Google Authenticator, the platform will offer to store the customer’s tokens in an array of offline (cold) wallets located on a secure site.
Moving stored funds is regulated with the use of multi-signature addresses. This entails having the platform use multiple keys to sign transactions between wallets. Thus, no person will be given too much power in handling assets stored on the exchange. A portion of the funds that are needed for immediate withdrawals is kept in an equivalent of hot wallets.
The platform also uses SSL encryption to power its communication engine, with addresses and passwords needed for transactions being fully encrypted. All withdrawal requests undergo multiple security checkups prior to being approved.
As of February 2020, the ByBit platform is yet to experience a security breach, which means that the platform remains trustworthy and secure.
How Does ByBit Work?
Understanding at least the fundamentals of this type of crypto trading is a must, as ByBit does expect its users to be familiar with the terms such as “derivatives”, “leverage”, and “perpetual contracts”. What it does is to provide traders with an accessible environment in which the derivatives are tied to cryptocurrencies and made available for trading based on the available leverage.
Perpetual futures contracts are used in a manner similar to what one does with standardized futures contracts, meaning that they represent agreements to trade with an asset or currency (or any other instrument) at a predefined price at a particular time in the future. This allows the users to try to profit from speculating on the prices one of these assets may actually have in the future. Yet, unlike what is found with traditional futures contracts, their perpetual contracts will never expire.
ByBit specialized in linking the cryptocurrency world with that of their fiat counterparts, with the platform offering support for four markets at the moment. The supported cryptocurrencies are Bitcoin, Ethereum, EOS, and XRP, with USD serving as the second component of all of their pairings.
To provide more convenient trading for its customers, ByBit also offers an internal asset exchange – an option to exchange coins directly on the platform, with any of the five currencies currently being supported for this type of operation – BTC, ETH, EOS, XRP, and USDT. This adds a unique extra layer of functionality to the platform and makes it useful for traders who want to hedge their assets and profits against price fluctuations.
The exchange price is based on the Real-Time exchange rate as you enter the currencies you want to trade. Every asset swap has its on Quotation rate, and if the Quotation Rate differs from the Real-Time Exchange Rate more than 0.5%, the trade is not executed. Hence, the exchange cost is always no more than 0.5% per swap.
Yet, as of February 2020, Bybit does not provide exchange service between fiat currencies and cryptocurrencies.
What Is the Performance Like?
ByBit clearly wants to keep the door open for various trader profiles, from small-time retailers to the organized big-time investors. To achieve this, it had to build a solid performance infrastructure, with the promise of supporting theoretical 100,000 transactions per second. Paired with the fact that every single trade is executed at 10-microsecond intervals, one can easily see that ByBit can deliver the goods in the segment of its technological robustness.
Yet, the team behind it promises not to stop at this level, as its tech and engineering experts constantly work forex and blockchain professionals to keep the performance levels in the line with the growth of the platform’s customer base, which is reportedly already reaching more than 100,000 users globally.
Clean Trading Interface
ByBit can rightfully pride itself on the clean and accessible design of its main trading screen. The layout design is helped by its color palette, with its fuscous background serving to complement the uncluttered trading screen. Various components of this interface are organized in a minimalist manner, with no single feature being left in the background or playing second fiddle to the others.
Special mention goes to the use of pink and green-shaded candles against the dark background, while the order book and the recent trade history windows perfectly fit with the general layout. Trading features can be managed from the dedicated section to the right of the screen, including access to the contract details, market activity, and help resources.
Windows featuring asset overview and positions are readily available for moving and they can switch positions within the screen depending on your preferences. ByBit allows for the simple manipulation of the scale design parameters themselves, including the positioning of its axis, indicator data, and percentages. The basic color scheme can also be changed, alongside all of the metrics given on the screen, including the trader’s time zone.
Finally, dedication to clear presentation extends to ByBit giving you a comprehensive overview of a particular trade before its execution. As the operations involved in trading with derivatives are often complex, this is clearly a plus in any user’s book, be he/she a pro or a beginner.
Customer Support and Referral
ByBit does not stumble on its customer support features either, as its help resources available throughout the day, 7 days a week. The support is available in multiple languages and takes the form of desk-based live chat function and email, while the phone support is currently not available.
The platform has a well-established presence on social media, including Facebook, Instagram, Telegram and Reddit. Finally, the ByBit’s referral program allows customers to receive an equivalent of 10 USD in BTC for each new trader they bring to the platform.
The Ease of Making Deposits with Bybit
As of February 2020, ByBit accepts BTC, ETH, EOS, XRP, and USDT as deposits to trade. The process starts by creating a ByBit account. The procedure is rather straightforward and revolves around the registration of your email address or mobile number. The email registration will have you enter your email and create a password, followed by the use of a verification code. A similar procedure is used with mobile registration, with appropriate codes distributed via SMS.
Once the account is created, the users would do well to check the account security settings and create a strong password linked to personal email or mobile number, while checking the option to use two-factor authentication. Authentication will be done by the user’s phone prior to gaining access to the account or making transactions, while the withdrawals will be made possible once the Google authentication option is activated.
Depositing is done in a rather intuitive manner i.e. by clicking on the Assets tab, selecting the supported cryptocurrency and interacting with the Deposit option. In order to complete this process, the system will provide you with an exchange wallet address. Supported cryptocurrencies will be used to top up one’s account as ByBit does not allow the use of fiat ones for this purpose.
In addition to featuring no minimum required deposit amounts, no fees will be charged by the platform, apart from the minuscule fee for processing the operation on the blockchain. Yet, the user should bear in mind that ByBit does not apply the same policy to withdrawals, as the currencies supported by the platform do have minimum withdrawal amounts as follows:
- Bitcoin: 0.0005 BTC
- Ethereum: 0.01 ETH
- EOS: 0.1 EOS
- Ripple: 0.25 XRP
- Tether: 5 USDT
Go to ByBit
In short, ByBit has managed to establish itself as a respectable platform for crypto-based derivatives trading. Its strong points include a robust trading platform, excellent leverage trading support and associated advanced mechanism to make it run smoother, great interface and quality security options.
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