The trading platform that a crypto investor uses to purchase and sell their assets is among the first choices they have to make. However, choosing a cryptocurrency exchange for spot trading can be difficult. There are several factors to take into account while choosing the exchange that’s best for you. First things first: pay attention to the transaction fees. Certain exchanges have higher fees than others.
The existence of tradeable cryptocurrency is another significant element. Thus, it’s possible that certain exchanges don’t carry your preferred coins. Furthermore, the trading platform of your choice has to offer ample liquidity and be free from regulatory problems. We attempt to facilitate your decision-making in this post. Continue reading to learn about the top five cryptocurrency exchanges for spot trading in 2023.
Spot trading in crypto
In the world of cryptocurrency, “on-the-spot” trading refers to the purchasing and selling of assets for instant settlement. This implies that your objective when trading on a spot exchange is to swiftly exchange your cryptocurrency or fiat for cash at the going rate. On the other hand, a contract between a seller and a buyer to exchange an asset at a given price and at a later time is known as futures trading.
An illustration of spot trading for bitcoin with USDT on Binance is shown in the image below. Simply enter your ask price or bid details to initiate a straightforward trade without stop limitations.
Order books, buyers, and sellers are all present in a spot market. The greatest price a buyer is ready to pay for an item is known as the bid price, while the lowest amount a seller is willing to accept for it is known as the asking price. Every offer and request is noted in the order book. Spot traders’ basic goal is to purchase low and sell high. In addition, the spot price is the price at which an asset is currently trading.
Check this out for novices who are on the lookout for where to find the best crypto exchanges to use for spot trading. Additionally, here we will discuss some of the features they provide.
1. Binance And Why We Chose It
Offering a large selection of coins and tokens, Binance is one of the most reliable centralized cryptocurrency exchanges. It is simpler to use the site thanks to its clear and easy-to-use interface. Not only is this exchange one of the most reliable for spot trading, but it also offers a range of payment alternatives and typically has cheap trading fees.
The Pros & Cons Of Trading With Binance
Pros
- Binance boasts the largest cryptocurrency trading volume per day
- More than 350 spot markets are accessible
- Minimal trading costs
Cons
- Non-transparent corporate structure
- Not available for U.S. clients
2. Kraken And Why We Chose It
Kraken provides a high level of security for its users. It’s the only major exchange that hasn’t suffered a security exploit. The platform provides a seamless spot trading environment for beginners as well as seasoned investors. Kraken Pro delivers all the security & features you love about the exchange, in a sleek mobile-first design for advanced crypto trading and funding on-the-go.
The Pros & Cons Of Trading With Kranken
Pros
- Leverage up to 5x
- Kraken’s great for margin trading
- Kraken is an advanced trading tool for seasoned investors
Cons
- Kraken comes with a 3.75% charge on debit/credit card payments
3. eToro And Why We Chose It
Millions of people adore the eToro site because of its user-friendly copy-trading platform and community trustworthiness. The benefit of imitating deals from more seasoned users is available to traders. Furthermore, eToro provides benefits to users who share their trading strategies.
The Pros & Cons Of Trading With eToro
Pros
- Unlike its competitors, eToro comes with copy trading tools and smart portfolios available
- eToro is also a beginner-friendly platform
- Native web and mobile wallet
Cons
- 0.5% deposit fee for non-USD payments
4. ByBit And Why We Chose It
The dynamic and incredibly effective derivatives trading platform ByBit guarantees that its clients receive the best possible trading security. It is one of the few cryptocurrency exchanges that provides perpetual swap futures for the coins XRP and EOS, and the network has never experienced a hack. Three product lines—derivatives, spot, and options—are available for trading on the exchange. Bybit’s risk controls actively monitor and analyze user behavior in real-time. Upon detecting suspicious activity, withdrawals undergo enhanced authentication measures for added security.
The Pros & Cons Of Trading With ByBit
Pros
- ByBit comes with no deposit fees
- ByBit offers a demo account
- Up to 100x leverage
Cons
- Not available in the U.S.
- Some trading conditions are not suitable for beginners
5. OKX And Why We Chose It
With more than 50 million users, OKX is the second-biggest cryptocurrency exchange worldwide. In addition to copying the moves of the top traders on the site, traders have access to over 350 tokens. It’s understandable why OKX is still a top pick for cryptocurrency investors given its quick order execution, affordable fees, and easy-to-use UI.
The Pros & Cons Of Trading With OKX
Pros
- Earn high yields via staking or savings
- Advanced crypto trading products
- Low fees
Cons
- Fiat deposit fees are not displayed until after the order
