Finding the best exchange to trade altcoins is crucial for both new and experienced traders. This article lists the top cryptocurrency exchanges, focusing on their offerings like altcoin trading pairs, user-friendly interfaces, and security features. We explore top-rated exchanges known for their low trading fees, high altcoin liquidity, and robust exchange security. Here’s our top selection of the best altcoin exchanges for crypto trading for both beginners and advanced traders.
Methodology
Our selection of altcoin exchanges — Coinbase, KuCoin, OKX, Kraken, UpHold, BYDFi, eToro, Bitpanda, Bybit, Binance and Bitget — is based on a comprehensive evaluation and thorough testing conducted over six months by BeInCrypto’s in-house product teams. Our further recommendation of leading wallets to store altcoins safely — namely MetaMask, Coinbase Wallet and OKX — is similarly backed with data, evidence and experience.
The listed exchanges were chosen for their extensive range of altcoins, user-friendly interfaces, and top-tier security features, marking them as some of the best in the crypto world. Wallet’s were similarly highlighted for their ease-of-of-use, altcoin support, and security. Here’s a brief insight into why each platform was picked.
BingX:
- More than 750 altcoins and 800 markets
- Publishes proof of reserves and audits
Coinbase:
• Supports over 150 altcoins.
• Strong regulatory compliance with FCA and most U.S. states.
KuCoin:
• Over 700 altcoins supported.
• Offers a wide range of altcoins with competitive trading fees.
OKX:
• Supports 343+ altcoins.
• Known for its comprehensive range of crypto services and tools.
Kraken:
Offers 240+ altcoins.
Highly regarded for its security and regulatory compliance with the FCA.
Uphold:
• Supports around 250 altcoins.
• Offers a unique range of asset classes, including cryptocurrencies, precious metals, and equities.
BYDFi:
360+ altcoins available.
Offers dual licensing in the U.S. and Canada, emphasizing regulatory compliance.
eToro:
• Supports 70+ altcoins.
• Known for its social trading platform and user-friendly interface.
Bitpanda:
• Offers 199+ altcoins.
• Regulated by the AMF and BDE, focusing on user security and compliance.
Bybit:
Supports 520+ altcoins.
Offers competitive trading fees and a wide range of crypto products.
Binance:
Over 600 altcoins available.
World’s largest exchange by volume, offering extensive cryptocurrency trading options.
Bitget:
• Supports 650+ altcoins.
• Known for its user-friendly platform and diverse crypto offerings.
For storing altcoins, we recommend MetaMask, Coinbase Wallet, and OKX Wallet due to their significant advantages. Here’s a snapshot of why we chose each.
MetaMask:
• Integrates seamlessly with numerous DeFi applications and blockchain games.
• Gives users full control over their keys and funds.
• Offers a straightforward and intuitive interface for managing digital assets.
Coinbase Wallet:
•Implements advanced security measures for protecting assets.
Allows users to buy and store crypto easily, ideal for beginners.
Backed by a well-established and reputable cryptocurrency exchange.
OKX Wallet:
• Supports multiple blockchain networks and cryptocurrencies.
• Strong security protocols for safeguarding assets.
• Seamless integration with OKX exchange for easy trading and access to financial services.
For additional info on BeInCrypto’s methodology and verification practices, follow this link.
Best altcoin exchanges in July 2024
1. BingX
BingX is a leading social trading app and CEX. It was founded in 2018 and has since grown to be one of the largest crypto exchanges by volume, serving more than 10 million users to date. BingX offers a wide array of products, including spot trading, futures, social trading, bot trading, and asset management.
- Regressive and low trading fees
- Rewards and affiliates program
- Advanced trading features for users
- Multiple options for securing accounts and mobile
- Limited features compared to competitors
- Not available in the U.S.
• Spot, peer-to-peer, copy, grid, and futures trading
• Rewards Hub and wealth management
• Educational videos, tutorials, guides, and articles in BingX Academy
• Proof-of-reserves and security audits
• Mobile app on Android and iOS
• Help Center and customer support 24/7
BingX is a highly trusted platform and offers a wealth of features for all types of traders, from beginners to professionals. The platform prioritizes safety and security and is known for publishing its proof of reserves and ensuring regular audits.
Additionally, the exchange boasts low platform fees and supports a range of fiat currencies and multiple languages. With customers able to trade over 750 cryptocurrencies in more than 800 markets, the quality of BingX’s offering is unmatched.
Trading fee: 0.1% – 0.0325%, and decreases according to your 30 day trading volume.
2. Coinbase
Coinbase, known for its user-friendly platform is among the best crypto exchanges for beginners in the cryptocurrency world. It not only offers a vast array of trading options but also prioritizes security with features like two-factor authentication and cold storage. Its reliability and straightforward interface cater to both newcomers and seasoned traders, making it a prominent figure in the diverse landscape of crypto exchanges.
- High security
- Innovative products
- Wide asset range
- Global reach
- User-friendly
- Staking services
- Customer support ( issues with response times or support quality)
- Higher compared to some other exchanges
- Limited in some regions
• Wide range of cryptocurrencies (over 230 cryptocurrencies and 390+ trading pairs)
• User-friendly interface
• High-security standards, including two-factor authentication and cold storage for the majority of assets.
• Educational resources which offer the possibility to earn free crypto
• Staking services
• Mobile app
• Regulatory compliance
• Fiat currency support
• Payment method variety (bank transfers, credit/debit cards, and PayPal)
• Coinbase Wallet
• API Access
Coinbase is a top choice for trading altcoins, especially for newcomers to the cryptocurrency market. Its user-friendly interface simplifies buying altcoins with various payment options, including debit and credit cards and PayPal. While it charges a 3.99% fee for card transactions, ACH transfers are free, only incurring a standard 1.49% commission. The platform supports a range of medium to large-cap altcoins like Ethereum, Dogecoin, and Cardano. Security is a priority, with 98% of assets in cold storage and mandatory two-factor authentication, adding an extra layer of safety for your investments. Users also have the option of storing altcoins in Coinbase’s secure wallet, which is available on both iOS and Android.
Trading fee: 0%-0.60%
Deposit fee: ACH free, Wire (USD) $10, SEPA (EUR) €0.15 EUR, Swift (GBP) free
Withdrawal fee: ACH free, Wire (USD) $25, SEPA (EUR) free, Swift (GBP) £1 GBP
3. KuCoin
KuCoin is a cryptocurrency exchange that’s well-suited for experienced traders outside the U.S., offering access to a broad range of coins and advanced trading features.
It offers low trading fees and a tiered fee structure that rewards high-volume traders and KuCoin Shares (KCS) holders with even lower rates. The platform is equipped with advanced trading features like margin trading, futures, and a unique trading bot service. Additionally, KuCoin provides opportunities for earning interest through crypto lending and staking.
- Low trading fees
- Strong user base
- Wide range of coins
- Staking and lending services
- Advanced trading features
- Good customer service
- Not licensed in the U.S.
- Limited payment methods
- Not beginner-friendly
- Limited educational resources
• KuCoin supports a wide variety of cryptocurrencies, including many that are not available on other platforms.
• The exchange offers some less common features, such as leverage and margin trading, as well as trading bots.
• Users can buy KuCoin’s native token (KCS) to reduce fees and earn rewards.
• The account verification process is optional, catering to users who prefer anonymity.
KuCoin is renowned as one of the best exchanges for trading altcoins due to its extensive selection of cryptocurrencies, including many lesser-known options not available on other platforms. It’s particularly favored for its low trading fees, which is a major advantage for active traders. Additionally, the platform is known for its high liquidity and advanced trading features like margin trading and trading bots, catering well to experienced traders. However, it’s important to note that KuCoin is not licensed in the U.S., which may be a consideration for some users.
Trading fee: 0.10% base fee, but it decreases based on your trading volume and KCS (KuCoin Shares) balance.
4. OKX
OKX is a prominent centralized cryptocurrency exchange offering a variety of services, including spot, derivatives, and margin trading. It caters to a global audience with users in over 100 countries. The platform is versatile, supporting hundreds of trading pairs and accommodating both novice and professional traders. OKX has expanded its offerings beyond trading, allowing users to engage in staking, join mining pools, and explore decentralized finance (DeFi) strategies like lending. It has rebranded to emphasize a more decentralized approach to crypto and offers an integrated web wallet, a native blockchain, and other web3-focused features such as an NFT marketplace.
- Global reach
- Wide range of services (spot, derivatives, and margin trading)
- Extensive cryptocurrency support
- Web3 and DeFi focus
- High trading volumes
- Not available for the U.S. audience
- Complex for beginners
- Regulatory challenges
• Derivatives trading, including futures, options, and perpetual swaps for advanced trading.
• Margin trading
• Staking and mining pools
• DeFi strategies
• Integrated web wallet
• Global accessibility
• Web3 features
OKX is a preferred exchange due to its extensive range of trading options, including spot, derivatives, and margin trading, appealing to both novice and experienced traders. Its global reach, supporting users in over 100 countries and a broad array of over 300 cryptocurrencies, provides a diverse trading environment.
Additionally, OKX’s focus on web3 and decentralized finance, through features like staking, mining pools, and DeFi strategies, positions it at the forefront of modern crypto trading trends. The inclusion of an integrated web wallet adds convenience and security for users.
Trading fee: 0.080% maker, 0.10% taker
5. Kraken
Kraken is a highly respected U.S.-based cryptocurrency exchange known for its strong commitment to security and regulatory compliance. It offers a broad spectrum of over 240 cryptocurrencies and accepts seven different fiat currencies.
Distinguished for its security measures, Kraken provides features like two-factor verification and PGP email encryption. The platform caters to a global audience and is renowned for its transparency and robust infrastructure, including verifiable proof-of-reserves audits. Kraken’s user-friendly interface and extensive range of trading options, including spot, margin, and futures trading, make it a popular choice among both individual and institutional traders.
- Strong security
- Regulatory compliance
- Wide asset range
- Advanced trading features
- Global reach
- Limited services in certain U.S. states and regions
- Mixed customer support reviews
• Spot trading
• Margin trading
• Futures trading
• NFT marketplace
• Staking services
• Advanced trading interface
• Strong security measures
• Global accessibility
Kraken stands out in the cryptocurrency exchange arena for its exceptional security record, having never been hacked in over a decade of operation. This U.S.-based company is noted for its strict adherence to global financial regulations and offers a vast selection of over 200 coins.
Kraken supports multiple fiat currencies, including USD, GBP, EUR, CAD, JPY, AUD, and CHF, with a minimal entry point for investors — allowing crypto purchases starting from approximately $10 with no deposit fee on a minimum deposit of just $1.
The platform enhances user security through two-factor authentication, PGP email encryption, and a master lock feature, further establishing its reputation as a trusted and secure place for trading and holding digital assets.
Trading fee: 0.16% maker, 0.26% taker
Deposit fee: depends on payment method and market conditions, all fees are displayed at the time of the purchase
Withdrawal fee: Kraken supporters the following fiat currencies: USD, EUR, CAD, AUD, GBP, CHF and JPY. The withdrawal fee depends on the chosen currency and payment method. For instance, it’s free to withdraw to withdraw U,S, dollars (U.S. only) via ACH. To withdraw EUR via SEPA, the fee is 1 EUR.
6. Uphold
Uphold is a versatile digital trading platform offering a diverse range of assets, including cryptocurrencies, fiat currencies, and precious metals. Operating in over 184 countries, it facilitates global foreign exchange and remittance services.
Established in 2015, Uphold has handled transactions worth over $4 billion. It stands out for its transparent operations and a wide range of over 200 currencies. The platform is user-friendly and ensures robust security measures, including two-factor authentication. Users have access to more than 250 cryptocurrencies, various fiat currencies, and options to trade in precious metals like gold and silver.
- Wide asset range (over 250 cryptos).
- Available in over 184 countries, facilitating international trading
- Besides cryptocurrencies, you can trade fiat currencies and precious metals
- Higher fees compared to other platforms
- May lack some advanced trading tools offered by specialized crypto exchanges
• Trades cryptocurrencies, fiat currencies, and precious metals.
• Implements robust security measures for asset protection.
• Supports users in a vast number of countries.
• Designed for easy operation and accessibility.
Uphold is a trading platform for altcoins offering over 250 cryptocurrencies. It’s a top choice for trading altcoins as it offers a user-friendly interface that’s ideal for both beginners and experienced traders.
Its global reach across more than 184 countries allows for a broad spectrum of trading and investment opportunities. Additionally, Uphold’s transparency and security measures ensure a trustworthy environment for trading. Its unique feature of trading not just cryptocurrencies but also fiat currencies and precious metals offers a diversified trading experience. This holistic approach to digital asset trading makes Uphold a versatile choice for those looking to explore the altcoin market.
Trading fee: Stablecoins and major market FX fees 0.25%, BTC, ETH trading fees 1.4% – 1.6%, altcoins trading fees 1.9% – 2.5%, precious metals trading fees 1.9% – 2.5%.
Deposit fee: ACH free, Wire (USD) $20 under $500, SEPA (EUR) free, SEPA (GBP) free
Withdrawal fee: $0.99 for trades under $500.
The fee for credit/debit card for any transaction is 3.99%.
7. BYDFi
BYDFi is a Seychelles-based global crypto exchange headquartered in Singapore. It offers a diverse range of trading options, including spot and perpetual contracts with leverage. BYDFi is known for its robust security, user-friendly interface, and adherence to regulatory standards. This is also one of the few no KYC crypto exchanges available today. However, you will need to register if you want to deposit and withdraw fiat currency.
- Extensive trading options
- Strong security measures
- User-friendly interface
- Limited educational resources
- No staking or passive earning features
- Moderate liquidity for less common pairs
• Spot trading with a simplified UI
• Advanced trading dashboard with charting tools
• Perpetual contracts with leverage options
• Leveraged tokens trading
• Copy trading feature for beginners
• Token listing support for new projects
• API access for customized trading solutions
BYDFi is a top platform for altcoin trading due to its comprehensive trading options, including spot and perpetual contracts with leverage, catering to both beginners and experienced traders. Its user-friendly interface, combined with robust security measures, provides a trustworthy and accessible trading environment. The platform’s focus on trading, without diversifying into complex features like staking or web3 products, makes it a straightforward choice for those primarily interested in trading activities. Additionally, its global reach and regulatory compliance in key markets enhance its appeal as a reliable and versatile crypto trading platform.
Trading fee: 0.1% to 0.3% maker/taker fees
Deposit fee: BYDFi doesn’t charge a deposit fee, but it uses 3rd party providers such as Transak, Banxa or Coinify, which may ask for a deposit fee.
Withdrawal fee: Only network fees for crypto. The platform doesn’t allow the withdrawal of fiat.
8. eToro
eToro, established in 2007, is a multi-asset trading platform that combines traditional investment options with innovative social trading features. It allows users to trade various financial instruments like stocks, cryptocurrencies, indices, commodities, ETFs, and currencies. A standout feature of eToro is its social trading capability, which lets users copy the trades of experienced investors. The platform has expanded its offerings to include cryptocurrencies, appealing to both conventional and digital asset traders. With regulatory compliance in multiple jurisdictions, eToro ensures a secure and regulated trading environment. Its user-friendly interface and low entry barriers make it accessible to a broad range of investors.
- Offers unique copy trading features, allowing users to mirror the strategies of experienced traders.
- Provides access to a diverse selection of cryptocurrencies alongside traditional financial instruments.
- Complies with multiple regulatory bodies, ensuring a secure trading environment.
- CFD trading risks
- Charges a flat fee on withdrawals
- Some features, like leverage and margin trading, are not available to users in certain regions, such as the U.S.
• Social trading: Unique copy trading functionality allows users to follow and replicate the strategies of experienced traders.
• Diverse asset classes, which include stocks, cryptocurrencies, indices, commodities, ETFs, and currencies.
• Strict adherence to regulations by CySEC, FinCEN, FCA, GFSC, and ASIC.
• Supports over 75 cryptocurrencies with an option to trade in a demo account.
• eToro Wallet offers a secure digital wallet for cryptocurrencies.
• Smart portfolios.: Managed portfolios based on specific themes or strategies.
• User-friendly interface: Designed for ease of use for traders at all levels.
Provides a library of educational content and market updates.
eToro is a top platform for trading altcoins due to its unique blend of social trading features and a wide range of cryptocurrency offerings. Its user-friendly platform appeals to both beginners and experienced traders, with the added benefit of learning from and copying the strategies of successful traders.
eToro’s regulatory compliance across multiple jurisdictions adds a layer of security and trust to the trading experience. This platform is particularly suitable for those who value a community-driven trading environment and want to diversify their trading strategies beyond just cryptocurrencies.
Trading fee: 1% + spread
Crypto asset transfer fee to eToro Money crypto wallet: 2%
Deposit fee: Free
Withdrawal fee: $5, with a minimum withdrawal of $30
Inactivity fee: $10/month
9. Bitpanda
Bitpanda is a European-based digital investment platform that allows users to buy, sell, and hold various financial assets, including cryptocurrencies, precious metals, and stocks.
Founded in 2014 in Vienna, Austria, Bitpanda has expanded its services to offer a user-friendly platform for both new and experienced investors. It supports a range of payment methods for ease of transactions and emphasizes security and regulatory compliance. Bitpanda aims to make investing accessible to everyone, providing an easy entry point into the world of digital assets and traditional financial markets.
- Ideal for beginners and those new to crypto trading
- Offers a variety of cryptocurrencies alongside stocks and precious metals.
- Highly regulated
- Supports a range of payment methods
- Higher fees comparatively to other platforms
- Primarily focused on European markets
- Limited advanced trading features
• Provides a platform to buy, sell, and hold a wide range of cryptocurrencies.
• Offers trading in stocks and precious metals, in addition to digital currencies.
• Allows users to set up a savings plan for regular investments in cryptocurrencies or other assets.
• Enables instant swapping between different cryptocurrencies.
• Offers Bitpanda Pay, which is a service that allows users to send money or pay bills using their Bitpanda account.
• Multiple payment methods
• User-friendly interface
• Educational resources
Bitpanda is one of the best platforms for trading altcoins due to its comprehensive and user-friendly interface, making it accessible for both beginners and experienced traders. Its wide range of cryptocurrencies, alongside offerings in stocks and precious metals, provides a diverse investment portfolio.
Bitpanda’s commitment to regulatory compliance ensures a secure trading environment, enhancing trust among users. Additionally, the platform’s multiple payment options and unique features, such as the Bitpanda Savings Plan and Bitpanda Swap, enhance its appeal as a versatile and convenient platform for trading and investing in altcoins.
Trading fee: 1.49%
Deposit fee: SEPA free
Withdrawal fee: SEPA free
10. Bybit
Bybit is a global cryptocurrency exchange based in Dubai, known for its derivatives trading and spot trading services. Established in 2018, it has rapidly grown to accommodate over 10 million users and operates under strict regulatory compliance. Bybit is celebrated for its advanced trading features, including high-leverage options and a wide range of trading pairs. It offers an efficient trading platform with a robust transaction engine, catering to both beginner and advanced traders. The exchange is also known for its high-security standards and user-friendly interface.
- Offers a range of derivatives and spot trading options with high leverage
- Features a high-performance engine for quick order matching
- Trusted platform with over 10 million users
- Implements stringent security protocols for user protection
- Complex for beginners
- Limited availability in certain regions, including the U.S.
- Mixed reviews regarding the efficiency of customer support
• Spot trading
• Includes futures and perpetual contracts with high-leverage options
• Allows trading with built-in leverage, simplifying access to leveraged positions.
• Enables users to mirror the strategies of successful traders.
• Advanced trading interface for experienced traders
• Capable of processing a large number of transactions per second
• Bybit wallet
• Multiple deposit and withdrawal options
Bybit is an exchange for trading altcoins as it provides comprehensive derivatives and spot trading options, catering to both new and seasoned traders. Its high-performance transaction engine is adept at handling a large volume of trades swiftly and efficiently.
Bybit’s diverse range of trading pairs, coupled with high-leverage options, offers traders flexibility and the potential for significant gains. The platform’s robust security measures ensure a safe trading environment. Additionally, Bybit’s user-friendly interface and innovative features like leveraged tokens and copy trading enhance its appeal as a versatile platform for altcoin trading.
Trading fee: 0.10%
Deposit fee: Depends on payment method. For instance, SEPA 0.19%, bank payment 0.08% + 0.3 EUR fixed fee
Withdrawal fee: Depends on the chosen payment method, but it can be free.
11. Binance
Binance is a leading global cryptocurrency exchange renowned for its extensive trading volume and diverse offerings. Established in 2017 by Changpeng Zhao, Binance supports a vast array of cryptocurrencies and trading pairs. Its services encompass spot, derivatives, P2P trading, and various passive earning opportunities, including staking and liquidity pools.
The platform is also noted for its advanced security measures, robust trading features, and educational resources. While Binance is accessible in over 100 countries, certain regions face restrictions due to local regulations. The exchange emphasizes regulatory compliance and has set up localized versions in various countries to adhere to regional norms.
- Binance offers a high liquidity rate, ensuring easy and efficient trading
- The platform supports an extensive range of over 1400 cryptocurrency pairs
- Binance is known for advanced trading features, including various types of contracts and leveraged trading.
- Competitive trading fees, which can be further reduced for high-volume traders and BNB token holders.
- Robust security measures are in place to protect user accounts and transactions.
- Offers fast and effective P2P trading options.
- Customer service might be less responsive during peak hours
- Some geographic restrictions impact fiat deposit and withdrawal options
- The selection of cryptocurrencies available for trading in the U.S. is limited compared to the global platform
- The platform's comprehensive features may be overwhelming for beginners
• Spot trading
• Derivatives trading
• Peer-to-oeer (P2P) trading
• Binance Earn for earning interest through staking and other methods
• Binance Academy (educational resources on cryptocurrency and trading)
• API support
• NFT marketplace
• Includes two-factor authentication and advanced encryption.
• Mobile app support
• Multiple payment options
Binance is chosen as one of the best exchanges for trading altcoins due to its extensive range of cryptocurrency pairs, high liquidity, and advanced trading features. It offers both spot and derivatives trading, including futures and options with leverage, catering to various trading strategies.
Binance’s peer-to-peer trading platform and diverse payment options add convenience for users globally. Additionally, its robust security measures, comprehensive educational resources, and user-friendly interface enhance the trading experience for both beginners and advanced traders. The combination of these features makes Binance a versatile and reliable choice for altcoin trading.
Trading fee: Up to 0.10%
Deposit fee: Depends on the currency
Withdrawal fee: Depends on the currency
12. Bitget
Bitget is a Seychelles-based centralized cryptocurrency exchange operating in over 180 countries with around 20 million users. Founded in 2018, Bitget offers a variety of trading options, including spot and futures trading, with high-leverage options for certain pairs. The exchange is known for its partnerships with notable entities like Lionel Messi and Juventus Football Club. Bitget’s platform is accessible in many countries, excluding the United States, Singapore, and parts of Canada, among others. The platform supports various cryptocurrencies and offers features like copy trading. Bitget has secured the necessary licenses to operate in several countries, including Lithuania, Italy, Canada, and Australia.
- Provides various trading types, including spot and futures trading
- Offers up to 125x leverage on specific pairs, catering to advanced traders.
- Global presence
- Huge user base
- Not available in the United States, Singapore, and parts of Canada, limiting access for traders in these regions.
- High-leverage trading and advanced features might be overwhelming for beginners.
- While it holds licenses in several countries, the regulatory landscape is constantly evolving, which may affect operations.
• Spot and futures trading
• Copy trading
• High leverage options, up to 125x for certain pairs.
• Global accessibility
• Multiple cryptocurrencies
• Mobile app
• Quick buy/sell options
• Trading bots
• Staking options
• Multi-lingual support
Bitget stands out as a preferred exchange for trading altcoins due to its comprehensive trading options, including both spot and futures trading, which cater to a diverse range of trading strategies. Its unique copy trading feature allows users to emulate the strategies of successful traders, which is particularly beneficial for beginners. High leverage options, up to 125x for certain pairs, attract advanced traders looking for significant market exposure.
The global accessibility of Bitget, operating in over 100 countries, ensures a wide reach. Additionally, its emphasis on security and user safety, along with a user-friendly mobile app, enhances the overall trading experience. These features, coupled with the platform’s support for a variety of cryptocurrencies and its innovative trading bots, make Bitget a competitive choice for altcoin trading.
Trading fee: 0.10% spot trading
Deposit fee: free
Withdrawal fee: 1 EUR
What is an altcoin?
Think of Bitcoin as the most famous kid in the crypto schoolyard. Altcoins are the other kids who are also trying to become famous. There are two main definitions of an altcoin: some see altcoins as alternative cryptocurrencies to Bitcoin. Others consider other digital currencies besides Bitcoin and Ethereum to be altcoins.
You can trade these altcoins with Bitcoin, Ethereum, or other alts. Altcoins encompass utility tokens, payment tokens, and even memecoins. What’s interesting about altcoins is that they come in many flavors, each with unique features.
Any observant trader will consistently watch for the onset of altcoin season, a period when Bitcoin dominance drops and altcoins experience significant price increases.
Why consider altcoins over Bitcoin?
Investing in altcoins instead of Bitcoin can be a strategic choice:
- Diversification: While Bitcoin is the pioneer and the most well-known cryptocurrency, altcoins offer a broader range of options. Investing in different altcoins can spread your risk across various projects and technologies, reducing the impact of a single asset’s price fluctuations.
- Potential for higher returns: Some altcoins have shown the potential for rapid price appreciation. Early investments in altcoins like Ethereum, Binance Coin, or Cardano have yielded substantial returns for investors.
- Innovation: Altcoins often bring innovation and new features to the cryptocurrency space. They may have unique use cases or advanced technologies that set them apart from Bitcoin. For example, Ethereum introduced smart contracts, which opened up a world of decentralized applications (DApps).
- Specialization: Altcoins can cater to specific niches or industries. For instance, Ripple (XRP) focuses on cross-border payments, while Chainlink (LINK) is all about providing reliable data for smart contracts. If you believe in a particular industry’s potential, there might be an altcoin tailored to it.
- Lower entry costs: While Bitcoin’s price can be intimidating for new investors, many altcoins are more affordable, making them accessible to a wider audience. This allows you to buy more tokens for your investment budget.
- Timing and research: Being well-informed and timing your investments right can be rewarding with altcoins. Researching projects, their teams, and their roadmaps can help you identify promising altcoins before they gain significant attention.
Risks and rewards of altcoin trading
Trading altcoins can be an exciting venture, but it’s important to be aware of the potential risks and opportunities involved:
Altcoin trading: Rewards
- High growth potential: Altcoins have shown the potential for rapid price appreciation. Early investments in the right projects can result in substantial profits. For instance, some altcoins have experienced significant price surges in a short period.
- Diversification: Trading altcoins allows you to diversify your cryptocurrency portfolio. By investing in a variety of altcoins with different use cases, you can spread risk and potentially benefit from various market trends.
- Innovation: Altcoins often introduce innovative features and technologies. For example, DeFi (decentralized finance) coins offer financial services without traditional intermediaries, and NFTs (non-fungible tokens) are revolutionizing digital ownership. These innovations can provide unique investment opportunities.
- Low entry barrier: Many altcoins are more affordable than Bitcoin, making them accessible to a broader audience. You can start trading with a smaller budget and gradually expand your portfolio.
Altcoin trading: Risks
- Volatility: Altcoins tend to be more volatile than Bitcoin. Price fluctuations can be rapid and substantial, leading to both significant gains and losses. It’s crucial to be prepared for price swings.
- Lack of regulation: Altcoins are often less regulated than established cryptocurrencies like Bitcoin. This can lead to higher risks of fraud, scams, and unreliable projects. Due diligence is essential to avoid falling victim to such risks.
- Market sentiment: Altcoin prices can be heavily influenced by market sentiment and speculation. Hype-driven investments can lead to price bubbles that eventually burst, causing losses for investors.
- Liquidity issues: Some altcoins may have lower trading volumes, which can result in liquidity issues. It may be challenging to buy or sell large amounts of certain altcoins without significantly impacting the market price.
- Project reliability: Not all altcoin projects are created equal. It’s essential to research and assess the credibility of the team, the technology, and the roadmap of the altcoins you consider trading. Investing in poorly managed or fraudulent projects can lead to losses.
What is an altcoin exchange?
An altcoin exchange is like a digital marketplace where you can buy, sell, and trade different cryptocurrencies besides Bitcoin. It’s a platform that allows you to exchange Bitcoin and other cryptocurrencies for various alternative coins.
Altcoin exchanges offer trading pairs, which are combinations of cryptocurrencies that you can exchange with each other. For example, you might trade Bitcoin or Ethereum for a lesser-known altcoin.
Unlike traditional stock markets, where you buy and sell shares of companies, altcoin exchanges deal with a wide range of digital assets. To use an altcoin exchange, you typically need to create an account and provide identification as part of the exchange’s security measures.
You’ll also need a cryptocurrency wallet to store your altcoins. Some exchanges offer built-in wallets, while others require you to have your own. Keeping your wallet secure is crucial because it contains your digital assets. Here are three of BeInCrypto’s top tried-and-tested picks if you’re looking for the best place to store your altcoins.
MetaMask
Coinbase Wallet
OKX Wallet
For those interested in more dynamic trading activities, identifying a reliable crypto exchange for day trading can be beneficial. This will ensure a platform offers the tools and speed necessary for the quick pace of day trading in the cryptocurrency market.
Altcoin exchanges vs. traditional exchanges: What sets them apart?
Altcoin exchanges and traditional exchanges serve distinct purposes and operate in different ways. Here are the key differences between the two:
Digital vs. traditional assets
- Altcoin exchange: Altcoin exchanges deal exclusively with digital cryptocurrencies, including Bitcoin and various alternative coins. These assets exist purely in digital form and operate on blockchain technology.
- Traditional exchange: Traditional exchanges, such as stock exchanges, primarily handle traditional financial assets like stocks, bonds, and commodities. These assets represent ownership in physical or established companies.
Accessibility and hours
- Altcoin exchange: Altcoin exchanges operate 24/7, allowing users to trade cryptocurrencies at any time, day or night, without geographical restrictions. They offer accessibility to a global user base.
- Traditional exchange: Traditional exchanges typically have specific operating hours and are closed on weekends and holidays. They are location-dependent, with different exchanges catering to specific regions.
Regulation and oversight
- Altcoin exchange: Many altcoin exchanges operate in a less regulated environment compared to traditional financial markets. The level of oversight can vary widely by jurisdiction, leading to potential risks related to fraud and market manipulation.
- Traditional exchange: Traditional exchanges are subject to rigorous government regulations and oversight by financial authorities. These regulations aim to ensure fairness, transparency, and investor protection.
Asset variety
- Altcoin exchange: Altcoin exchanges offer a vast array of cryptocurrencies, each with its own unique features and purposes. Users can trade between different digital assets, creating a diverse portfolio.
- Traditional exchange: Traditional exchanges primarily focus on a limited range of asset classes, such as stocks, bonds, and commodities. While these assets may vary, they are typically well-established and have a longer history.
Market dynamics
- Altcoin exchange: Cryptocurrency markets are known for their high volatility, with prices often subject to rapid fluctuations. Speculation and sentiment play significant roles in these markets.
- Traditional exchange: Traditional financial markets tend to be more stable and are influenced by a broader range of economic factors, including corporate earnings, economic indicators, and geopolitical events.
Accessibility to new investors
- Altcoin exchange: Altcoin exchanges are generally more accessible to new and individual investors due to lower entry barriers, allowing people to start trading with smaller budgets.
- Traditional exchange: Traditional financial markets may require higher capital, making them less accessible to individual investors, particularly those with limited resources.
Understanding altcoin exchange fees
When using altcoin exchanges, it’s essential to be aware of the various fees associated with trading cryptocurrencies. Here’s a breakdown of the common fees you might encounter:
1. Trading fees
- Maker fees: These fees are incurred when you add liquidity to the order book by placing a new order that doesn’t immediately get matched with an existing one. Maker fees are typically lower than taker fees and are designed to encourage market makers.
- Taker fees: Taker fees are charged when your order matches an existing order on the order book, removing liquidity from the market. Taker fees are usually higher than maker fees. The specific fee rates vary between exchanges and can depend on your trading volume.
2. Withdrawal fees:
- Cryptocurrency withdrawal fees: When you transfer your cryptocurrencies from the exchange to your personal wallet, you may incur withdrawal fees. These fees vary depending on the type of cryptocurrency you’re withdrawing and the exchange’s policies. Some exchanges have fixed withdrawal fees, while others calculate them based on network transaction fees.
3. Deposit fees:
- Cryptocurrency deposit fees: Some exchanges charge fees for depositing cryptocurrencies into your exchange account. The fees can vary depending on the cryptocurrency and the exchange’s policies.
4. Conversion fees:
- Fees for trading pairs: If you’re trading between different cryptocurrencies (e.g., Bitcoin to Ethereum), you may encounter conversion fees. These fees are often expressed as a percentage of the transaction amount.
5. Margin trading fees
- Interest rates: If you engage in margin trading (borrowing funds to trade with leverage), you may be subject to interest or financing fees on the borrowed amount. These rates can vary based on the exchange and the specific trading pair.
6. Inactivity fees
- Account maintenance: Some exchanges impose inactivity fees if your account remains dormant for an extended period. To avoid these fees, it’s essential to log in and perform a trade or other account activity regularly if required by the exchange.
7. VIP or tiered fee structures
- Volume-based discounts: Many altcoin exchanges offer tiered fee structures based on your trading volume over a specified time frame. Higher trading volumes often lead to lower fees, which can be advantageous for active traders.
Are altcoin exchanges safe?
The safety of altcoin exchanges varies from one platform to another. While some exchanges prioritize security and implement robust measures to protect user funds, others may have vulnerabilities that can pose risks.
Here are key factors to consider when assessing the safety of altcoin exchanges:
- Regulatory compliance
- Security measures
- Reputation and track record
- Insurance
- Customer support
- Withdrawal policies
- Avoiding phishing and crypto scams
How do altcoin exchanges work?
Altcoin exchanges provide a platform for users to trade a wide range of cryptocurrencies. Users can register, deposit funds, explore trading pairs, place orders, and execute trades. Security, fees, market analysis, and liquidity are essential factors to consider when using these exchanges for cryptocurrency trading.
Here’s a step-by-step overview of how these exchanges work:
- User registration: This process may involve providing personal information and completing identity verification procedures (KYC/AML) to comply with regulatory requirements.
- Deposit funds: These funds can be in the form of cryptocurrencies, such as Bitcoin or Ethereum, or fiat currencies, like USD, EUR, or other local currencies.
- Exploring trading pairs: These trading pairs determine which cryptocurrencies you can trade against each other.
- Placing orders: Users can place different types of orders, such as market orders or limit orders.
- Matching orders: Altcoin exchanges match buy and sell orders from users. a
- Order book and order types: Traders can see the current market conditions and decide when and at what price to place their orders.
- Trading fees: Users may incur trading fees when executing orders.
- Wallets: Altcoin exchanges often provide wallets where users can store their cryptocurrencies.
- Crypto withdrawals: This step is essential to enhance security by storing assets in a more secure environment.
Types of altcoin exchanges
In the decentralized asset trading world, two primary types of crypto exchanges stand out: decentralized exchanges (DEXs) and centralized exchanges (CEXs).
Decentralized exchanges (DEX)
DEXs facilitate direct peer-to-peer cryptocurrency transactions online securely and without the need for an intermediary. They are known for enhancing exchange security and preserving user anonymity. DEXs offer a diverse range of altcoin trading pairs, allowing users to trade altcoins directly with others. However, they might lack the user-friendly interfaces and high altcoin liquidity seen in some top-rated exchanges.
Centralized exchanges (CEX)
These are the best exchanges for users looking to trade altcoins more conveniently. CEXs are managed by companies that provide platforms for trading various cryptocurrencies, including Bitcoin and Ethereum.
CEXs typically offer lower trading fees, more altcoin trading volume, and user-friendly interfaces. They also often support fiat currency transactions, allowing users to buy altcoins with a credit card. While they provide high liquidity and advanced altcoin exchange features, users must trust the exchange’s security measures.
Both DEX and CEX cater to different needs in the cryptocurrency trading ecosystem, with choices often depending on the trader’s preference for convenience, security, and available trading pairs.
Altcoin exchanges vs brokers
Altcoin exchanges and brokers serve different functions in cryptocurrency trading. Here are the main differences between the two types of platforms.
Altcoin exchanges
These platforms facilitate direct trading of cryptocurrencies, including altcoins. Users can trade various altcoin pairs, with the exchange acting as a middleman. Exchanges often offer a wide range of trading pairs, high liquidity, and sometimes user-friendly interfaces. They may charge trading fees for each transaction and typically offer robust security measures.
Brokers
Brokers offer a service where they execute trades on behalf of their clients. They might provide access to altcoins, Bitcoin, Ethereum, and other cryptocurrencies. Unlike exchanges, brokers set their own prices, which may include a markup. They are known for ease of use, often allowing purchases with credit cards and providing a simplified trading experience, especially for beginners. However, their fees might be higher compared to exchanges.
What should you consider when choosing an altcoin exchange?
When choosing an altcoin exchange, consider these factors:
- Security: Look for strong security measures to protect your funds.
- Trading fees: Compare fees for trades and withdrawals.
- Altcoin variety: Ensure the exchange supports a wide range of altcoins.
- Liquidity: Higher liquidity means easier and faster trades.
- User interface: A user-friendly interface simplifies trading.
- Customer support: Reliable support is crucial for resolving issues.
- Regulatory compliance: Ensure the exchange adheres to relevant regulations for safer trading.
Altcoin trading: a quick guide
To get started with an altcoin exchange:
- Choose an exchange: Select a reliable altcoin exchange with good security, low fees, and a variety of altcoins. Make sure it supports a number of the top cryptocurrencies to invest in.
- Sign up: Create an account by providing the required personal information.
- Verification: Complete any necessary verification processes for identity and security.
- Deposit funds: Add funds to your account, either in fiat currency or cryptocurrency.
- Start trading: Explore the platform, select altcoins, and begin trading.
Best altcoin exchanges for crypto trading compared
| Regulation | Min. deposit | Trading fees | No. of coins | |
| BingX | FSIC | $1 | 0.1% or less | 750+ |
| Coinbase | FCA, most U.S. states | $50 | Up to 0.6% + spread | 150+ |
| KuCoin | None | $5 | 0.3% or less | 700+ |
| OKX | VARA | $10 | 0.1% or less | 343+ |
| Kraken | FCA | $1 | 0.16% maker 0.26% taker | 247 |
| Uphold | FinCEN | N/A | 0.25% – 2.5% | 250+ |
| BYDFi | U.S. and Canada MSB dual license | $30 | 0.1% maker 0.3% taker | 360+ |
| eToro | FCA, CySEC | $10 | 1% + spread | 70+ |
| Bitpanda | AMF, BDE | $10 | 1.49% premium | 199+ |
| Bybit | CySEC | $1 | 0.10% | 520+ |
| Binance | AMF | $1 | 0.1% or less | 600+ |
| Bitget | None | $1 | 0.10% | 650+ |
Time to make your altcoin exchange choice
When diving into altcoin trading, selecting the right exchange is crucial. Whether it’s a DEX or CEX, consider factors like trading fees, security, user interface, and altcoin variety. Remember, the best exchange for you is personal and will align with your specific trading needs and preferences. As you venture into this journey, always prioritize security and stay informed about market trends to maximize your altcoin trading experience.
Frequently asked questions
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