As promised, Lawkchain is giving you an honest list of the world’s most notable cryptocurrency exchanges. Unlike many of these websites, this is an independent review that is not funded by silicon valley moguls, nor were we persuaded by a sponsor to tell you what we think. We are giving our honest opinion of the best currency exchanges.
As a website that looks out for our Lawkchain visitors, we emphasize your safety; we do not want an exchange to give away your personal data (ehem… Binance); we don’t want price manipulation as seen through Coinbase’s ongoing litigation in Brek v. Coinbase (discussed in a separate post coming out this week;) nor do we want transfer fees to be outrageously high.
Without further explanation, let’s begin our quick journey of the most notable exchanges (sorry, Coinbase and Binance are included even though we insulted both of them…)
Blockchain.com is a very interesting platform because it was so easy to create an account and wallet. This was such a relief, but at the same time, such a concern. Much of the news lately has covered currency exchange’s inability to protect users’ personal data, so Blockchain’s little barrier of entry to create an account was perplexing . With that said, unlike Binance or Coinbase, there was never a Blockchain breach or lawsuit, and the platform effectively incentivized its users by giving $50 free in Stellar. But, when it comes to Blockchain.com, it is essentially a Beta for the upcoming “Pit” wallet that is being funded by Blockchain.com and Richard Branson. Blockchain.com is going to grow tremendously, but for the moment. Not a bad wallet exchange to start with if you are an amateur.
Bitmex is intended for the advanced Crypto-trader who understands the buying and selling of cryptocurrency contracts, not the actual cryptocurrency itself. This type of trading is very volatile for better and worse. It means you can generate large profits with small amounts of money, but it also means you can lose everything you’ve invested relatively quickly. You can not link your bank account, but there are over 400 different coins you can choose. The gist is: If you have an advanced understanding of crypto-markets, this is the exchange for you.
Bittrex is a veteran US exchange that has put an emphasis on the security of its users. The exchange’s trading platform is highly praised for its speed and stability, and indeed the exchange has never been hacked in all of its existence. On the downside, Bittrex seems to be suspending user accounts without prior notice and offer minimal customer support. While the trading platform is solid, I would use it with caution. On the bright side, Bittrex earns a 0.25% flat commission for every transfer between currencies, and clients continually commend the exchange’s trading interface for its quick loading times, with no incidences of hanging or lags. When Lawkchain gives a recommendation, it is to mainly emphasize the safety of personal data when using a currency exchange, so Bittrex is very appealing to us. Although Bittrex has a history of kicking users off the exchange, it is far better than being a hacker obtaining extremely personal customer data. Bittrex is a Lawkchain favorite, but you can not link a bank account and must send bitcoin or digital currency to use anything. It is only an US Exchange for the moment
Binance is respected as an effective currency exchange outside of the US. Binance has faced difficulty trying to enter the US market, but this is primarily due to American’s stubborn attitude towards altcoins as well as regulations. Binance does not allow you to connect your bank account to the exchange, and the exchange only allows you to convert crypto-currencies, which you already have in a ledger hardware wallet or virtual wallet. For example, I can only send bitcoin to Binance, and then I can trade my Bitcoin for Ethereum, Bitcoin Cash or Ethereum etc. Binance has also encountered disappointing legal issues because of a recent hacker who claimed to acquire over 24,000 user’s KYC (“Know Your Customer”) data. Legally, this is a really big issue that the legal industry does not understood, which is that legal issues will arise before information or value is put into the Blockchain. What I mean by that is, the information that is either stolen, fraudulently used, or laundered was done-so during real-life human interactions or it was retrieved outside of the Blockchain. Obtaining a picture of a person’s drivers license speaks ill of the platform’s login process and login security, not the Blockchain. These are separate issues, which Binance is currently battling.
For now, Coinbase is a safe pick for currency exchanges because it is well-funded, and it is widely known as a major exchange. However, it is quickly going downhill due to the company’s recent problems with the law.
Coinbase was founded in 2012 and became the most popular crypto-exchange in the world after the Bitcoin-boom. However, Coinbase has endured legal difficulties lately after a Coinbase user sued them for fraud and negligence, among other claims. The lawsuit was filed after Coinbase decided to publicize the release of Bitcoin cash one hour before Bitcoin was added to the exchange. Currently, the biggest loser of this lawsuit is the Northern California District Court, which seemingly applied archaic legal thinking into an extremely modern technology called Blockchain. A link to the court opinion will be on the website for those of us nerds who find pleasure in deep understanding of financial regulations.
Many crypto-holders who have been around the last few years know that Coinbase slowed down its transfer speed due to the high volume of users. Also, their flat commission rate is 0.50%, more than Bittrex. It is worth the effort to work on exchanges that do not have linked bank accounts to avoid ridiculous fees or theft, but if you have not purchased a ledger wallet of any type, or you are just starting to explore cryptocurrency, have no fear, Coinbase is a safe and it is a good place to start.
And the Winner is….
Blockchain.com is likely your best bet. Considering how intuitive the program is, it is a no brainer for newcomers to join Blockchain.com. If you are an advanced trader, Binance and Bittrex are likely for you, since they have automated programs that allow you the opportunity to buy/sell at specific values.
Although this was primarily to inform you on how to safely invest in crypto, we want to emphasize that all of these programs require us to submit personal information in order to use the exchange, and that is problematic. By blindly showing our ID to a currency platform, understand that our personal identity and data to currency exchanges is equally as important than the money we deposit into a particular platform. As seen from Facebook, our personal data is something we tend to give away without thinking about it. We hope this Lawkchain Takeway was helpful. Look out for future posts and please visit our Instagram and Twitter @lawkchain. This week has been full of Blockchain developments, so we are excited to share more in the coming days.
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