Despite the relative reliability of popular and fairly respected exchanges that specialize in digital assets, a trader should pay attention to a number of other criteria, wondering how to choose a cryptocurrency exchange. Knowing the features of the functioning of crypto exchanges will allow even a novice trader to choose the best service for working with cryptocurrency.
It is interesting that the specifics of the operation of crypto platforms is significantly different from the business model of Forex brokers. So, when getting acquainted with the digital asset industry, in some cases it will be prudent not to pay attention to factors that are important for working with traditional financial services.
Criteria that are not of particular importance
Period of existence
If we talk about over-the-counter brokers, then this factor would be almost decisive. In the world of cryptocurrencies, everything is slightly different – for example, the Kraken platform began operations in 2011, and Binance in 2017. Nevertheless, Binance effectively entered the top three among crypto exchanges with the maximum daily cryptocurrency turnover.
Country of registration
The crypto market is not regulated by law, so if necessary, the cryptocurrency holder will not be able to contact the law enforcement authorities with these or those requirements. However, it is worth knowing that some states have introduced bills that are aimed at protecting the rights of crypto traders. So, reliable jurisdictions from this point of view can be: USA, Japan, Switzerland, South Korea, Taiwan, Singapore.
Trading platforms that are considered reliable for users, as a rule, are independently responsible to their customers, in particular, they work to ensure the proper level of protection of their funds and confidential information. Therefore, cryptocurrency holders should pay attention to what technologies the company uses to guarantee security, what terms of trade and storage of funds it offers, and, of course, to customer reviews of the exchange.
What you should pay attention to?
How to choose a cryptocurrency exchange? Finding a suitable trading site is a responsible task, however, if you know exactly what criteria are decisive, the process will turn into an easy and exciting quest, even for a beginner!
The higher the daily volume of cryptocurrency trading, the more opportunities for traders to profit from coin pricing. To date, the Bithumb platform is the leader in terms of trading volumes. The daily trading volume averages $ 620 million. Moreover, the site interface must meet the requirements and preferences of the user. Russian-speaking clients should pay attention to whether the official website of the platform has a version that supports the Russian language.
When choosing a site, you need to consider the amount of fees for transaction processing, deposit and withdrawal of funds. For replenishment of accounts on some platforms, such fees are not provided. It is desirable that the size of the commission for users who have passed verification does not exceed 0.1%.
At the beginning of 2018, there was a series of hacker attacks on fairly well-known crypto exchanges; attackers managed to seize fairly decent amounts of funds. Companies continue to work hard to increase the level of service security; today they have achieved significant results. So, for example, now clients have the opportunity to bind the IP address to their account, to carry out advanced two-factor authentication settings, etc. Modern solutions are considered reliable enough, the main thing is that they are provided on the selected platform.
Confirmation of identity when creating an account is a mandatory requirement for users, provided for by the international AML policy. Most, at least well-known exchanges, abide by it. Some sites still provide access to trade without an identity verification, but you should be aware that verification can significantly save on commission fees.
This criterion is worth paying attention to those traders who do not have significant capital in order to realize all their trading strategies. Through borrowed funds, the user has a chance to increase the income potential. Most platforms provide their customers with a low level of financial support compared to the same Forex brokers. On average, you can find such leverage indicators as 1: 2-1: 10. It is possible, however, that some crypto exchanges may offer unique offers to users. For example, BitMEX offers a leverage of 1: 100. Do not forget that this type of activity is accompanied by risks, therefore it is important to approach the formation or selection of a trading strategy with common sense.
When choosing a service for trading, it is important to pay attention to how stable the exchange is. It is worthwhile to find out how quickly applications for withdrawing funds are processed, how often the service goes to maintenance – you can find out this information on specialized sites dedicated to reviews of such exchanges.
Support Service Efficiency
Customer support service is needed so that the user can quickly get answers to his questions or tips on eliminating certain problems with the site, accounts, cards. Representatives of the support service of certain Forex brokers can give answers only to general questions, and topics that are related, for example, to losses incurred as a result of a system crash, are discussed by separately contacting the service via e-mail – a response can be expected within two days . Fortunately, it is more pleasant to communicate with managers of crypto exchanges – you can get feedback within an hour, they respond to messages written in English more quickly.
It’s good if the service will be adapted for various devices. The presence of an application for gadgets on iOS and Android indicates that the company cares about customers who will have an excellent opportunity to use the services using the device, which is always at hand, that is, customers can monitor their funds and operations with them all the time.
Integration with various useful tools
The advantage of any trading platform is the availability of support services that are designed to track and analyze the dynamics of cryptocurrencies. Using such platforms will save the trader from wasting time using third-party professional software to more effectively track charts and follow strategies.
Account replenishment options
Depending on your needs, you should consider factors such as the possibility of replenishment of the account using fiat funds, support for replenishment using certain payment systems, services or applications.
Number of Assets Supported
Here, one should rather consider not the total number of assets that were listed on the exchange, but the presence on it of the necessary cryptocurrency specifically for the user. Some platforms support only a limited number of coins, which, for example, are included in the TOP-20 cryptocurrencies in terms of market capitalization. On some, you can find the so-called shitcoins – if a trader, for example, needs access to one of these shitcoins, then, naturally, when choosing a site, you should take into account, in addition to all of the above criteria, this one.
Some crypto exchanges also offer useful features such as:
- margin trading;
- the possibility of obtaining interest on deposit;
- access to the referral system.
It is noteworthy that Asian exchanges in the crypto industry are considered the most reliable. Most platforms operating in this region provide users with cold storage services for crypto funds. However, not all Asian crypto exchanges are open to citizens of foreign countries. For example, the BitMAX exchange, which is based in Singapore, provides good functionality for traders without restrictions.
TOP 5 best cryptocurrency exchanges for 2019
- the largest service in terms of trading volumes;
- the exchange started its operations in 2017, however, it surpassed its competitors in a short period of time;
- low commission – 0.1%;
- rapid development – having your own successful BNB token;
- high performance – about 1.4 million orders are processed every second;
- support for the most popular assets, the ability to create a wallet for each of them;
- no commission for entering digital coins;
- Verification is not a prerequisite for work;
- there is support for smartphones;
- traders have access to specialized tools for analytics, building strategies.
- the Russian-language exchange, which is worried about customer safety, only the most promising assets are listed;
- there is the possibility of withdrawing profits in USD, EUR, RUB;
- efficiency: it takes a few seconds to process an operation, 5-30 minutes to withdraw funds;
- transaction fee is only 0.2%.
- withdrawal of funds: Payeer (0%), AdvCash (0%), PerfectMoney (0.5%), bank (1%), WebMoney (2%);
- replenishment: Bank (1%), Payeer (4%), AdvCash (4%), Yandex (5%), Qiwi (5.9%).
- There are two options for two-factor authentication;
- trading with a commission of 0.1% is available;
- in the listing over 100 coins, 200 trading pairs are available;
- implemented the ability to enter and withdraw traditional currencies;
- zero commission when transferring money within the system;
- smartphone support;
- round-the-clock support.
- reliability and demand (5 years of experience, the amount of user funds exceeds $ 10 billion);
- user funds are in cold storage;
- there is a customer protection fund;
- Support for Android, iOS, Windows, Mac;
- cashback – 30% of the commission of attracted users.
- no mandatory verification;
- insignificant withdrawal fees; for some coins they are not provided at all;
- proper level of security, as well as protection of user tools and data;
- trade commission – 0.1%;
- the presence of professional mechanisms for analyzing the market situation, a web terminal with charts from TradingView.
Staking and cryptocrediting – which is more profitable than stablecoins or PoS cryptocurrencies?
In this article, we will consider the prospects of cryptocurrency staking as a new way of passive earnings, about the differences between staking and cryptocrediting, as well as about the main platforms designed for this.
If you have not been interested in staking before, then a variety of coins and platforms that support this type of passive income can make you dizzy. And with the advent of stablecoins, the choice has become even wider. What type of coins is better in terms of profit and risk?
Cryptocurrency Staking in 2020
A year ago, cryptocurrency staking was much simpler than now. The cryptocurrency market was attended by only a few specialized platforms, a pair of popular cryptocurrencies and approximately the same rate of return.
But these times have passed: in 2020, staking has grown into a serious segment of the crypto industry for several reasons.
- Firstly, the market now has more than 30 PoS coins that support the possibility of staking.
- Secondly, many kriptobirzh now there own PoS-nodes – an interesting alternative to special steykingovym platforms.
Moreover, now investors are provided with staking and deposit accounts in stablecoins, which allow minimizing risk and getting profitability at the level of PoS-coins or even higher. What to choose?
To find out, you need to compare the two main options on the market (PoS coins and stablecoins), according to a number of clear criteria. However, an important reservation must first be made about the nature of staking.
Staking and cryptocrediting are not the same thing
Coins that use the Proof-of-Stake (PoS) consensus algorithm – Tezos, Cosmos, BIP, and LOOM – initially support staking. While the value of stablecoins is tied to a specific asset – for example, to the US dollar.
Stablecoins are not available for styling, but loans – coins are issued as a loan to another user who pays a deposit in response. However, for investors there is no particular practical difference between staking and lending. That is why one can hear on the cryptocurrency market, for example, about “USDC staking”.
Real ROI and Volatility
Let us compare the return on investment in PoS coins and stablecoins and how this indicator is affected by the volatility inherent in the crypto market.
- PoS coins . Each coin has its own nominal rate of return built into the algorithm. For example, for Cosmos (ATOM) it is 8.35%. However, a really important value is the real profitability, which is calculated on the basis of price changes for any period. For example, if you invested $ 10,000 in the stake of ATOM coins on January 1 of this year, then by June 1 you would have received a nominal income of about 3.5%. Instead of 2309 coins, you would have 2390. However, over the same period of five months, the price of a coin fell by more than 30%: from $ 4.33 to $ 2.96. The cost of the steak, along with interest, would be only $ 7075, and the real ROI would drop to -30%.
- Stablecoins . Everything is simple with them: what rate is declared, the investor receives such ROI, minus the platform commissions. On cryptocrediting platforms, the rates are quite stable and allow you to predict income: for example, if you pay 1.94% per annum for USDC deposits on Fulcrum platform, then your profit in dollar terms will also be 1.94%, unless something out of the ordinary happens the USDC coin will not lose its peg to the US dollar.
Verdict: on average, the real ROI of stablecoins is higher and more predictable, as there is almost no volatility. A PoS coin can suddenly increase in price and bring profitability of 20% or more, but it can also lose half its value.
Number of platforms available and conditions
Next, we compare the number of available platforms for staking PoS coins and stablecoins and the conditions that they offer to holders.
Dozens of platforms offer staking popular coins like Tezos and Cosmos. These sites can be divided into two categories:
- Specialized sites are Staked, Staking Lab and Dokia Capital, among others.
- Crypto exchanges – Bitfinex, Kraken, and KuCoin are among the smaller platforms.
Of course, platform competition is good for investors, but such a wide choice also means that you have to spend more time searching for information.
Having chosen a coin, it will be necessary to study the rates of return taking into account the commission at different sites, as well as assess the risks of each of them. Moreover, commission rates on different platforms can vary greatly, which affects the investor’s income. For example, for the ATOM coin, the Binance exchange promises a yield of 6–9% per annum, while on Stakin this figure will be 9.1%, and on Gate.io – only 6.1%.
This type of digital asset can be deposited on various lending platforms:
- Centralized – BlockFi, CoinLoan, Nexo, as well as a number of exchanges – Binance , Bitfinex, Poloniex.
- Decentralized – Compound, Nuo, dYdX, Aave and others.
It should be borne in mind that different lending platforms can offer completely different rates for the same coin. For example, deposit income in USDC ranges from 1.25% to 8.6%.
Verdict: by the number of platforms, ordinary staking coins win. However, in the case of staking or lending in stablecoins, choosing a platform is easier: you do not have to compare so many options.
Risks: interest in the project
We have already mentioned volatility as a key risk factor. When staking stablecoins, the investor receives a reward in cryptocurrency , which can often be exchanged for fiat. But staking PoS-coins can lead to losses due to volatility. Another factor by which it is worth evaluating the profitability of investing in a PoS coin is the level of interest in a particular coin.
Stablecoins have a significant advantage: they were originally created as a reliable way to store and transfer funds between participants in a transaction. In the current crisis, investor interest in stablecoins can only grow. On the other hand, each PoS coin is a cryptocurrency of some kind of blockchain project , which can both succeed and fail. If the founders do not launch the product, then the price of the token may fall.
Another risk factor is the platform on which staking takes place. Both for stablecoins and for PoS-coins, both centralized (custodial) and decentralized (non-custodian) platforms are available. A cryptocurrency exchange like Binance is a classic example of a custodial solution: you transfer coins to the exchange for storage. If she is attacked by hackers, your steak may disappear.
In the case of non-custodian platforms, the risk of theft or fraud is quite low. It doesn’t matter which asset to use when staking or depositing and where: USDC – on Compound, USDN – on Waves․Exchange, XTZ – on P2PValidator.
And vice versa: on custodian platforms, the risks are higher, both in the case of providing stablecoins on credit, and in the case of PoS-coins staking. And since the bulk of PoS staking passes through exchanges such as Bitfinex and Binance, we can conclude that, on average, the risks of owners of PoS assets are more serious.
Verdict: PoS coins are more risky, because their price is highly dependent on both interest in the blockchain project itself and market sentiment. It is safer to choose non-custodian platforms for both types of coins.
Nominal rates of return for PoS coins are often very attractive, but price fluctuations can lead to negative profitability. In the case of stablecoins, a positive result is almost guaranteed. At the same time, you should not expect earnings on stablecoin more than 15-17%, although it is possible with a PoS asset.
Ultimately, the choice should depend on your personal attitude to risk. Investors who are willing to take risks in the hope of earning super-high returns should invest in a classic PoS coin – for example, Tezos .
If it is important for you to keep the investment (especially in the case of large amounts), then stablecoins are definitely preferable due to the better risk-to-ROI ratio.
As the global economic crisis deepens, more and more investors will acquire crypto assets. This will undoubtedly change the market balance in the segments of staking and cryptocredit. How exactly? We will find out soon.
Date of publication 09.07.2020
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Binance Exchange added the ability to purchase cryptocurrency from Mastercard
This Friday Binance Exchange announced the addition of the possibility of buying cryptocurrencies using bank cards in the Mastercard system.
The service covers 19 countries, including Russia and Ukraine. There are no other CIS countries on the list yet.
To use the option, you must log in to your personal account at https://www.binance.com/ , go to the “Buy Cryptocurrencies” tab and select payment using a bank card. Bitcoin, Ethereum, XRP, Binance Coin, USDT and some other assets are available for direct purchases from Mastercard cards.
Buy #Crypto With Mastercard Now Available in 19 Countries https://t.co/wt46p3YRwj pic.twitter.com/yv81xpvrvQ
– Binance (@binance) April 3, 2020
Previously, users already had the opportunity to buy cryptocurrency on Binance using Russian Visa cards.
Also this morning, Binance CEO Changpen Zhao hosted another live broadcast at Periscope. Zhao’s speech mainly covered the latest achievements of the exchange, including the launch of the Binance Card , mining pool , Binance KR, OTC portal, as well as cooperation with Brave and the acquisition of CoinMarketCap . In addition, Zhao recalled the need to maintain social distance.
“We have completed the initial development of platforms, and now I think it is important for us to support mining , since bitcoin mining is now centralized. We want more players to take part in it, as well as support existing players, ” he said.
In addition, on his Twitter, Zhao shared a screenshot testifying to the preparation of the exchange for the launch of option trading.
He left no comments on this subject. In the main Twitter account of Binance, a list of tasks for testers that was “publicly available” was posted. Among other things, it includes the item “test option trading”.
Publication date 04/04/2020
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TRON (TRX) cryptocurrency review – forecasts and prospects, current rate
Cryptocurrency TRON (TRX) is a decentralized protocol based on blockchain technology designed to create a global entertainment network with free content.
In simple terms, TRON is a service similar to all well-known social networks and platforms where users have the opportunity to publish, view and use any available content for entertainment, for example, online games.
The TRON project is currently developing the idea of joint consumption, which is that on a single global platform, users will be able to share entertainment content.
Official TRON cryptocurrency website: https://tron.network
Analysts call this platform the broadcast of the modern entertainment industry. In general, the functioning of this system is as follows:
- The author or copyright holder publishes the result of his intellectual work on the official website. You can download anything from literary novels to an author’s song or art on a specific topic. Next, the participant uploads information about how his creation can be used (as an accompaniment to another work or as an independent product). Nearby, he indicates the price of his work.
- Another user who is interested in this work acquires it for the local currency Tron (TRX). However, users should remember that it is impossible to purchase this or that product on this resource using fiat money (dollar, euro, rubles, etc.). The system has its own cryptocurrency , which must be purchased at exchangers or exchanges in order to complete a transaction.
- As soon as the interested user has acquired the result of intellectual work, the amount indicated by him is transferred to the author’s account. The author can use the tokens at his discretion – purchase a work from another author, simply save money in his account, or exchange it for another cryptocurrency or fiat funds.
About what TRX is, initially interested in all users who are just starting their activities on the site. This resource uses several types of tokens for different purposes:
- Tron (TRX) . This is the main currency of the system. For this currency you can buy or sell the results of your intellectual work. If necessary, the owner of a certain amount in this currency can exchange it for fiat money or other cryptocurrency.
- Tron Power It is impossible to purchase or exchange other money for a given currency. The only way to get them is to secure the TRX currency on the site platform. In this case, they are converted to TR. The presence of such tokens gives advantages to their owner. For example, the holder of a TR has the right to vote for one or another change in the system, or to oppose them.
- TRON 20 . Coins owned by developers. With the help of them, they create new full-fledged blockchains with new tokens.
The TRON cryptocurrency issue is limited, 100 billion coins have been issued at present. However, it is worth considering another point – starting in 2018, tokens begin to be burned (they are meant to be forwarded to an address known only to developers). The last major burn was in June last year, but how often such procedures will be carried out is currently unknown.
The team of this project has on its side professionals working in various fields. The founder of the platform and the creator of TRX Coin is Justin Sun , who also created a social network with an audience of 10 million people. In 2017, Forbes magazine included Justin on his list as one of the most successful entrepreneurs, who was not yet 30 years old.
The technical director of the project is Lucien Chen , who has extensive experience in working for large Internet companies. He is perfectly versed in blockchains and the principles of functioning of cryptocurrencies.
Deus Yu , responsible for quality control, has been working in the computer games industry for a long time. According to Justin Sun, the experience of Deus will come in handy a little later, when the platform gains even greater popularity.
Charles Zhang , an adviser who is well versed in a business not related to cryptocurrencies and blockchains. He has repeatedly lectured on the basics of entrepreneurship, with which he was invited to many universities. Charles made a huge contribution to the promotion of the platform at the initial stage.
Block Explorer is a search tool that allows you to view the addresses of wallets involved in the system, blocks, as well as data of transactions completed or committed. It can be compared with standard browsers, with the help of which an ordinary user searches for the information he needs on the Internet.
For each cryptocurrency, a personal Block Explorer is created that shows the network status for a given period of time. For the Tron cryptocurrency, such a Block Explorer is called TRONSCAN , where users can get all the information they need ( https://tronscan.org ).
How to mine Tron?
The developers of the platform did not provide for mining the Tron cryptocurrency , since they had already created all the necessary coins. In addition, the creators talked about the scheme according to which their cryptocurrency will work:
- 40% of the total number of coins will go on sale to enable the project to develop further.
- 15% of the remaining amount is allocated for acquisition by investors. Investors are players who, after the main sale of coins, will be ready to purchase tokens further.
- The remaining funds are “frozen” and remain in the accounts of the company owners.
Justin Sun explained that perhaps mining will be provided in the future when the company gains the necessary popularity.
TRX Token Wallets
The user can choose one of two options for storing Tron coins (TRX):
- Storage of tokens on the exchange;
- Creating your own crypto wallet.
With proper use, wallets provide a higher level of security. All types of wallets for Tron (TRX) are described in detail in this review .
Buying and selling TRX coins
You can buy a Tron on popular crypto exchanges , we recommend that you use the first 15 exchanges, and do not forget to install additional account protection. On the selected exchange, you must go through the registration procedure, after which you will be given a personal wallet, as well as its address.
The most popular and safe exchangers where you can buy and sell Tron:
The exchange rate of the Tron cryptocurrency against the ruble as of October 28, 2019 is 1.29 rubles per 1 coin. For a detailed analysis of the course and chart of coins, we recommend that you look at the Coinmarketcap website.
Development Perspectives and Company Roadmap
A distinctive feature of the project is its roadmap, which is scheduled until 2027. It is divided into several stages:
- Exodus It lasts from 2017 to 2018 and is considered officially completed. During this period, information about the project was actively disseminated, as well as developers were engaged in improving tools for using the site.
- Odyssey . Accounted for 2019-2020. During this time, developers will pay special attention to the economic development of the platform.
- Great Voyage . Captures July 2020 and ends in July 2021. Implementation of a personal ICO system, and third-party developers will have the opportunity to launch their own ICOs.
- Apollo It lasts from March 2021 to March 2023. Creating a decentralized exchange platform.
- Star Trek . It begins in April 2023 and ends in September 2025. Creation of a decentralized platform for the development of any computer games.
- Eternity . It starts in September 2025 and ends in September 2027. Platform users will have the opportunity to create their own playgrounds.
The developers mentioned that if these plans are implemented, a new roadmap will be created in the future, which will begin in 2028.
When analyzing the active nodes of the Tron cryptocurrency, you can notice the scale of the development of the project, where the majority of servers are located in the USA, China and Germany.
The forecast for Tron cryptocurrency from leading analysts suggests that, taking into account the current features of the crypto asset, in the future the project can absorb the entertainment market. And this means that in 2020 the value of one coin is able to stand on one level with the dollar.
Main competitors Tron
The project has two main competitors – Qtum and Ethereum . Each competing company has its own advantages, for example, the first has a more advanced platform in terms of technology, and the second wins due to smart contracts and fame.
Analysts are confident that the Tron platform will still have to fight for its users, since the developers are aimed at a specific audience. However, the Throne does not have special advantages that would distinguish the project from its competitors, which could become a serious problem in the future.
Tronix cryptocurrency has good prospects for further development, since the project itself is one of the most ambitious among others. However, at present it is not in demand. Investing in such a project will bring quite large risks, however, long-term investments can bring the investor good profit.
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