Altcoin trading, also called cryptocurrency trading, is an important element for managing crypto funds and also for gaining quick profit from your altcoin. And that’s why altcoin trading platforms have become more important than an altcoin (cryptocurrency) exchange.
So if you’re one of those who was looking for information about altcoin trading but didn’t find it, then you are at the right place.
Here we will show you the advantages, disadvantages, and some of the best altcoin trading platforms that will help you start trading in bitcoin or any altcoin.
So with no further delay, let’s start.
Terms you should know before starting altcoin trading.
Taker: When you place an order at the market price that gets filled immediately, you are considered a taker.
Makers: When you place an order that is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, you are considered the maker.
When you place an order that gets partially matched immediately, you pay a taker’s fee for that portion. The remainder of the order is placed on the order book and, when matched, is considered a maker order.
Pairs: Cryptocurrencies that you want to trade against them, for example, BTC to ETH, BTC to USD, BTC to USDT, or BTC to XRP. Generally, you will see BTC, ETH, USDT, and USD pairs for your cryptos.
Spot trading: A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date.
Derivative trading: A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index, or security.
There are differences between an altcoin trading platform and an exchange platform.
If you are confused between altcoin trading and crypto exchange, then here are some points that will help you understand. Based on my opinion, we would like to make the following point:
- You cannot buy or sell crypto for fiat on altcoin trading platforms (now you can), while on exchange platforms you can buy and sell at least bitcoin and Ethereum.
- An altcoin trading platform gives an advanced and confusing dashboard for managing your fund, but a cryptocurrency exchange platform gives a simple dashboard that shows the up-and-down chart of a particular coin.
- On-exchange coin swapping happens between you and the exchange platform, but on altcoin trading, it happens between you and another real trader.
- On exchange platforms, the price of the coin is fixed on the basis of the market and cannot be changed, while on altcoin trading platforms, the price is also fixed, but you can change it if you do not agree with the market price.
(For example, if you want to trade in BTC for ETH coin and the market price of BTC is $1000 but you do not agree with the price, you can increase it to $1020 (any amount), and if any trader agrees with your price, then your BTC will be converted to ETH coin immediately at the $1020 price.)
- The fees are fixed and usually high on exchanges, while on altcoin trading the fees are also fixed but extremely low, and even some time buyers receive cashback.
- You can exchange any coin into any other available coin on the altcoin trading platform, while on the exchange platform, you can only trade in Bitcoin, Ethereum, and USDT (high-markup coins only) into other coins.
- Example: Coinbase Exchange is an exchange platform, while Coinbase Pro is an altcoin trading platform.
These are some (but not all) of the basic differences between bitcoin trading and exchange.
Why use altcoin trading?
Yes, this is a common question people ask: “Why do I use altcoin trading platforms while I have an exchange platform?” There are many reasons, some of which are as follows:
- You can sell a little bit at a higher price and buy at a lower price than the market price.
- The fees are extremely low, about -0.02–0.05% for makers and 0.04–0.07% for takers.
- You can trade BTC, ETH, or USDT for any listed coin, even low-market-cap coins that are not listed on exchange platforms.
- An altcoin trading platform gives advanced tools that help with trading in bitcoin or any coin.
- Have three pairs of BTC, ETH, and USDT for altcoin trading, but on an exchange platform that has only one pair.
- Some altcoin trading sites don’t require KYC verification, while others like Coinbase do.
What to avoid during altcoin trading.
There are also some disadvantages to using an altcoin trading platform, but you can avoid some of them by avoiding certain things.
- Choose a proper, secure, and high-market-value trading platform.
- Always consider a single pair; otherwise, it causes confusion in calculating profit.
- Stay away from coins or tokens that have a low market value; those are really risky.
- If you are not familiar with the altcoin trading tool, then only use it to see the price, not to make predictions.
Altcoin trading on Binance.
Who doesn’t know about Binance, one of the largest altcoin trading platforms? It has more features than any other altcoin trading platform, which brings more depth to trading.
It was launched in July 2017, and now it has 868 market pairs, and with this number, Binance is standing in the first position in cryptocurrency trading.
If you want to start altcoin trading with Binance but you don’t have any coins, don’t worry; you can buy them across the world with different payment methods. And you can exchange your coin for different altcoins.
The most popular pairs on Binance are USDT, BTC, and ETH, and the fees are charged in percentage.
Launched: July 2017, Coins: 883; Fees: Maker: 0.1% Taker 0.04%
Newbie friendly: no; pair: BTC, USDT, BNB, ETH,
Merits and demerits.
- Large market value.
- Have a huge number of coins listed.
- You can directly buy and sell.
- Other services like staking, lending, P2P, and more
- Have hacked many times.
- Complicated crypto trading features for newbies.
Coinbase Pro for selective altcoin trading.
If you only want to stick with popular cryptos and don’t want to trust low-market-value cryptos, then Coinbase Pro could be the best for you to start altcoin trading because it has many pairs against BTC.
Like Binance, you can also buy bitcoin on Coinbase, or if you already have any coins in your Coinbase account, you can connect them to Coinbase Pro. On it, crypto pairs are fewer but have a high number of USD, GBP, and EUR pairs.
Do not confuse Coinbase Exchange with Coinbase Pro; both are different and have different services.
Launched – May 2014, Coins: 99, Fees: Maker: 0.5%; Taker: 0.5%
Newbie friendly: yes; pair: BTC, USD, GBP, EUR,
Merits and demerits.
- Trusted and secure.
- Friendly for a newbie.
- Betting for USD, GBP, and EUR.
- Limited coins are available for trading.
- There are not many pairs for a single coin.
Altcoin trading on Kraken.
How could you forget Kraken, which is one of the oldest and most valuable altcoin trading platforms?
It lets you trade your crypto at a low fee and a high limit on the pro trading interface chart. Like Coinbase Pro, it also has a lack of crypto pairs but a high number of fiat pairs such as USD, EUR, AUD, and GBP.
As we said, Kraken gives a professional trading interface chart, so as a beginner, some features may cause mix-ups, and you will wonder what this is for. So be careful.
Launched: July 2011, Coins: 185, Fees: Maker: 0.16%; Taker: 0.26%
Newbie-friendly: No, Pair: USD, GBP, EUR,
Merits and demerits.
- The advance chart features.
- Better help center.
- Buy, sell, and trade many cryptos.
- Provide mobile-friendly features.
- Best for bitcoin trading against fiat.
- Features are not friendly for a newbie.
Altcoin trading on Huobi Global.
If we are looking for platforms that have high crypto trading pairs, then how can we forget Huobi Global, which stands in the second position after Binance in the world?
You could say it is the home of USDT pairs, but that doesn’t mean it doesn’t have other pairs; you can also find USD, BTC, and ETH.
If you like bonuses, then say no more. Huobi regularly announces giveaways for different altcoins traded, so you have a chance to win extra crypto without losing your money.
Its trading chart will really impress you.
Launched: September 2013, Coins: 827, Fees: Maker 0.2%, Taker 0.2%
Newbie friendly: yes; pair: USD, USDT, BTC,
Merits and demerits.
- Large market value.
- Have a huge number of coins listed.
- You can buy directly.
- Many crypto pairs are against USDT.
- Other services like staking, lending, mining, and more.
- Lack of crypto pairs.
- There is no direct sale of cryptos.
Altcoin trading on Bitfinex
.Bitfinex deserves to be on the fifth; maybe it’s standing in the 16th position on CoinMarketCap, but it still has more than 300 coin pairs.
It gives you a very simple altcoin trading chart that contains very useful features that a beginner and experienced crypto trader need.
Launched – October 2012, Coins: $299, Fees: Maker: 0.1%; Taker: 0.2%
Newbie friendly: yes; pair: BTC, USDT, fiats;
Merits and demerits.
- 300+ crypto pairs.
- Have many USD and EUR pairs.
- Easy crypto trading chart.
- Have no crypto-sale features.
Altcoin trading is always more profitable than altcoin exchanges because it has lower fees, price control, a better trading chart, and many other advantages.
By the way, what do you think about altcoin trading? Have you ever started trading in bitcoin or any other altcoin? If so, what has your experience been?
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