Trading cryptocurrency on the exchange in 2022: where to start for a beginner, the basics of cryptocurrency trading

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Trading cryptocurrencies is a good opportunity to make money on changes in the price of an asset. The volatility of virtual coins remains quite high, the fluctuation of the rate per day can be several percent, which means that due to this, you can get a good profit.

You can trade cryptocurrency both on crypto-exchanges, p2p- exchanges and on brokers‘ sites. In the article, we will focus on cryptocurrency exchanges, since they are specialized platforms for performing trading and exchange operations with virtual coins. The principle of trading, creating orders to buy or sell, is mostly similar on all exchanges.

Binance Futures trading terminal

We will analyze the process of trading cryptocurrencies and the essence of the trading interface using the example of the following exchanges: BitMEX, Binance, EXMO, Currency, LocalBitcoins, CREX24, Bybit. These exchanges are popular among customers, have a clear and simple interface, convenient ways to deposit and withdraw. All major cryptocurrency pairs are presented in them, there is a version of the site in Russian, etc.

Cryptocurrencies are traded around the clock 24/7 without interruption due to their decentralization. You can trade both for growth and fall of the asset. At the moment, there is a rise in major cryptocurrencies with short pullbacks, so one of the reliable strategies is to buy from the support area and sell after updating the high from round values ​​of the value. For trading cryptocurrencies, you can apply some of the strategies and technical analysis that is used in Forex.

Cryptocurrency exchanges

Overview of exchanges for crypto trading (spot, derivatives, p2p):

  1. BitMEX (Bitmex). Margin trading of derivatives for cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Ripple, TRON, EOS, Cardano, Litecoin. The maximum leverage when trading bitcoin is 100x, that is, you can make transactions with a turnover of 100 times the deposit; for Ethereum – 50x; Ripple – 20x, etc. The exchange is ranked first in terms of trading volume in cryptocurrency futures contracts. More than $ 1 billion in deals are made here every day. The platform was launched in 2014. The deposit can be made with bitcoin, which is designated XBT. Available trading instruments: perpetual contracts and futures.
  1. Binance (Binance). Popular crypto exchange with a trading volume of USD 4.8 billion (28.05.2020). The exchange was created in 2017 and at the beginning of 2018 entered the top 3 world rankings in terms of volume. Deposits / withdrawals can be made using cryptocurrencies and fiat. 162 coins are available for trading – from little-known altcotes to major ones by market capitalization. The commission for the spot market is 0.1% of the transaction being made. There are two terminals available for trading: basic and advanced. The exchange offers spot trading, perpetual contracts on Binance Futures, p2p trading, OTC.
  1. Bybit. Allows you to trade cryptocurrency derivatives (derivative contracts). Does not charge any fees for depositing and withdrawing money, except for the network fees. For training, you can use the opportunity to open a free demo account..
  1. LocalBitcoins. P2P trading of Bitcoin cryptocurrency between site clients. Of the features, a large number of payment systems can be distinguished for replenishing and buying crypto coins. After registration, a wallet is provided for storing cryptocurrency. Margin crypto trading is not provided. The exchange is one of the oldest platforms for exchange transactions with bitcoin.
  1. EXMO. A well-known exchange for spot trading cryptocurrencies and the ability to use fiat currencies. Top cryptocurrencies are available on the site: Bitcoin, Ethereum, Litecoin, Ripple, EOS, Stellar, Cardano, TRON, Dash, Monero, Zcash, Waves, etc. Little-known altcoins are also present in the listing: SmartCash, KickCoin, Helbiz and others. The trading commission ranges from 0.4% to -0.25%. Trading volume as of 28.05.2020 – $ 18 million.
  1. Currency. Officially regulated platform. Currency is a cryptocurrency and tokenized asset exchange registered in Belarus. Supports more than 1300 trading instruments, provides the possibility of margin trading in cryptocurrencies with leverage up to 100x. For full work requires account verification.
  1. CREX24. Crypto exchange, which also provides cryptocurrency faucet services for earning free coins. Works with fiat currencies, including rare ones (yuan, yen). It is not necessary to be verified to work with the platform, only if you need to replenish an account or withdraw money in fiat.
  1. KuCoin. Hong Kong trading platform. Works with fiat money (Visa / MasterCard) after account verification. Supports stablecoins and many popular and rare cryptocurrency assets.
  1. Huobi. One of the top exchanges today. It is largely popular due to the large number of coins available for trading, among which new promising tokens come across.
  1. BitForex. A platform for spot and futures trading of cryptocurrencies. There is a platform for IEO (sale of tokens of new projects based on the exchange). The interface is translated into Russian. Verification is optional. You can replenish your account with cryptocurrency, stablecoins or using Visa / MasterCard. Trading in perpetual contracts for Bitcoin, Ethereum, Litecoin, Ripple, Grin is available.
  1. PrimeXBT. The site supports more than 30 assets and allows you to trade cryptocurrencies with leverage up to 100x through different types of orders. There is a demo account for learning to trade.
  1. Xena Exchange. An exchange from the developer Anton Kravchenko with support for margin crypto trading (leverage up to 20x) and futures contracts based on BTC, GRAM, ETH. The site became the first to launch a derivative on GRAM (a token from Telegram).
  1. Deribit. A platform for working with futures and options on ETH and BTC. Bitcoin is used to replenish the account, make settlements and withdraw funds. Leverage up to 100x is available.
  1. DSX. The exchange works with fiat, cryptocurrencies, stablecoins. The possibility of using fiat is due to cooperation with the ePayments company. The accounts of these systems can be linked to each other.
  1. Cex io. This British exchange was originally founded as a cloud mining service, but since 2015 it has abandoned this direction and has focused on cryptocurrency trading. Has certificates allowing to work directly with banks.
  2. Livecoin. Multilingual platform with support for cryptocurrency and traditional monetary assets. Allows you to work without verification. It features a huge selection of trading pairs, which is in the hundreds, as well as low commissions.

What are the crypto exchanges for trading

Cryptocurrency exchanges are classified according to several criteria.

By the principle of work:

  • Centralized. This means creating an account, storing on servers all information about customers, their balances, open positions. Susceptible to hacker attacks and government censorship. A centralized exchange is a standard business with a registration authority and physical office location.
  • Decentralized. They work on the blockchain. Free from censorship, there is no risk of account hacking and funds theft. The downside is that illegal transactions can actually be carried out through such sites. Also, while decentralized exchanges are less popular, trading volumes on them are small, which causes various kinds of problems, such as a lack of coins to create a large order.

Regulation degree:

  • Adjustable. They are used primarily by institutional investors who value impeccable compliance with the law in all actions. Such exchanges are accredited by the government, all transactions on them are tracked, and each user must necessarily confirm his identity or information about the company he represents.
  • Unregulated. Used by small and medium traders. Since there are much more of them, the overall liquidity and trading volumes on such sites are higher than on regulated ones. This option is suitable for those who tend to keep their actions with cryptocurrencies anonymous, do not want to verify their identity, or are afraid of questions from the government.

Fiat money support:

  • With a fiat money gateway. Fiat money is a national currency (dollar, ruble, etc.). Some sites connect the ability to replenish and deposit funds through payment systems, including Visa / MasterCard. For many users, this is a decisive criterion for the convenience of work.
  • No fiat money gateway. To replenish the account of such an exchange or, on the contrary, withdraw funds from it, you will have to use the third link. For example, exchange fiat for cryptocurrency through an exchanger, and only then make a deposit.

By trading opportunities:

  • Margin. Lending or “trading on debt” will be described in more detail below. In short, this is the provision by the exchange of additional funds for trading, which will then need to be returned with interest.
  • Spot. Only half of the exchanges support margin trading, the rest do not implement such a function, limiting themselves to regular spot trading, which implies instant settlements between market participants. The main reason for this is the close attention of the American SEC. Leveraged trading significantly increases risks, despite the fact that the crypto market is already associated with high risk due to volatility.

By volume:

  • Liquid. Liquidity is the ability to quickly sell an asset at the best value. Liquid exchanges are distinguished by a large number of users, a lot of orders created every second, and therefore trading on them is carried out in a matter of seconds. The asset itself matters, popular cryptocurrencies are always more liquid than rare ones.
  • Illiquid. Some sites offer a limited selection of currency pairs, among which there are those that are practically not in demand. Exchanges periodically cleanse such pairs, for example, in 2018 OKEx removed 42 trading pairs with minimal liquidity.

By the degree of information disclosure:

  • No verification. There are practically no platforms that allow you to use full-fledged functionality without any verification (that is, documentary proof of identity). These are decentralized platforms, as well as centralized ones – YoBit, Livecoin, EXMO. Trading conditions on them are quite favorable.
  • KYC and AML. These are norms designed for the safety of customers and used in both traditional financial systems and cryptocurrencies, although this contradicts the anonymity system inherent in the blockchain. Exchanges have to make concessions on regulatory requirements.
  • Verification on demand. Most of the platforms allow trading without verification; confirmation by email or SMS is enough. But those who want to use advanced functionality, for example, increase withdrawal limits, still need to go through verification. This is the most common scheme.

How to choose the right exchange for crypto trading

There are several main criteria for choosing a crypto exchange.

First, you need to make sure developers don’t neglect security. Sometimes the terms of trade seem to be very beneficial, but this is due to the fact that the management decided to save money on protection methods. Low fees are good, but they will not help in the event of a hacked exchange and loss of funds.

Second, it’s important to keep track of the news. If you come across information about a major hacker attack or if there are comments about problems with transactions, you need to try to quickly withdraw funds from the exchange before it is too late.

Thirdly, you need to pay attention to the reputation of the project. Large exchanges that have been operating for many years are less likely to encounter fraud. If you still want to try your luck on a little-known crypto exchange, you should carefully study the reviews.

Fourthly, you need to decide for what purposes the platform is needed, that is, what and how often trading will take place. The costs of commissions (both trading and withdrawal) depend on this.

Finally, it is important to pay attention to the jurisdiction of the project (in which country it is registered). Different countries have different attitudes towards cryptocurrencies and use their own regulatory measures.

The process of trading cryptocurrency on the exchange

Stages that the user faces while working with crypto-exchanges:

  1. Account registration. As a rule, it is not difficult – you need to enter an email or phone number, come up with a password, confirm your email / phone number.
  2. Verification of personal data where it is needed. You will need a scan of an identity card, a selfie with a document, providing information about the address of residence, often some other parameters. Consideration of the verification application takes some time, the results are reported by email.
  3. Balance replenishment. It is carried out either through payment systems (fiat), or by transferring cryptocurrency to the address indicated on the deposit page. You need to transfer a strictly selected cryptocurrency, otherwise the money will be lost forever.
  4. Trading. Buying / selling certain trading assets using a trading terminal, which is available on every exchange.
  5. Withdrawal of funds. Some exchanges charge a commission, some do not (but withdrawing a crypt, you still have to pay a commission to the network).

Trade orders and their types

The main types of orders used in the cryptocurrency trading process:

  • Market. This is an order that allows you to instantly buy or sell a currency at the current market price, which is the best available. Ideally, market orders are designed to fill limit orders that are in the order book.
  • Limit. When placing such an order, the user himself sets the buy / sell price. It can be higher or lower than the market. The order is executed when the rate reaches this value. If this never happens, then the order will not be executed.
  • Stop order. It is executed upon reaching a certain asset rate in the order list. It is used, for example, to sell a currency at a given price if the price falls, thereby reducing losses. In terms of functionality, such an order is similar to a limit order. It is also placed in the order book and has the same commission fees.
  • Take profit. An analogue of a stop order, but in the opposite direction – it automatically closes a position when the price moves in a positive direction and reaches a certain level.
  • Scalable. It is a tool that creates multiple limit orders in a user-specified rate range. Used to save time on ticket creation and focus on strategies instead
  • CCA (one cancels the other). It includes a couple of orders, one of which is executed as a limit or stop order, and the second is canceled as not executed. Relevant for a trader who wants to simultaneously create take-profit and stop-loss orders and fully manage his losses and profits.
  • FOK (fill or destroy). This type of order is either filled completely or canceled, but never partially filled.
  • GTC (until canceled). It is put up for selling or buying a crypt at the selected rate and remains in effect until the trader manually cancels it. They often hang for weeks or months and then suddenly fill up. Suitable for investors who do not have time to constantly monitor the market.

In addition to the main ones, there are several more rare types of orders, each with its own characteristics and purpose: hidden, “iceberg”, Post-Only, closing by a trigger, Bracket. They are used by professionals to fine-tune the trading strategy.

Trading terminal and its areas

On the overwhelming majority of exchanges, the trading terminal (main functional space) includes the following elements:

  • Depth of orders. All currently open orders to buy or sell cryptocurrency. One of the most important trading tools as it fully reflects the market sentiment.
  • Trade history. The last transactions made by users of the exchange.
  • Schedule. In real time, visually displays the fluctuations in the rate of the selected asset.
  • Market depth. The ratio of buy and sell orders used to analyze the trading situation.
  • Order creation area. Here you can specify the type of order, the desired amount to buy or sell a crypt, if necessary – the price.
  • Open trades. List of all orders opened by the user.

Commissions on exchanges

Payment of commissions is inevitable on any crypto exchange. This expense item often eats up a significant portion of the profit. Therefore, it is reasonable to choose sites with lower fees, although in fact they are about the same everywhere.

Fees also differ for the creator of the order (maker) and who responded to it (taker). Examples of popular exchanges and their fees:

  • EXMO – 0.2% for everyone.
  • Currency – 0.2% for everyone.
  • DSX – 0.25% for the taker, 0.15% for the maker.
  • Crex24 – 0.1% for the taker, rebate (cost recovery) for the maker.
  • Binance – 0.1% for taker and maker.

In almost all cases, it is possible to reduce commissions in one way or another – for trading volume, for using exchange tokens, etc.

Basic rules for cryptocurrency trading

Key rules any novice trader should know:

  1. Diversification is the main principle of risk management. Working with only one, even the most popular, exchange is shortsighted and risky, as well as investing in a single asset.
  2. You cannot be distracted from the chosen strategy. By succumbing to emotions and jumping from one path to another, you are more likely to get losses than profits.
  3. Do not take loans. This is not about margin trading, but about real loans – many take such a step in the hope of quickly recouping investments and staying with a profit in their pockets.
  4. Pay attention to fundamental analysis, not just technical, so as not to miss the tipping point of the trend. Also follow political and economic news.
  5. It is imperative to use stop loss and take profit orders to minimize risks.
  6. Rely only on analytics and facts, not intuition and luck.

Compliance with simple rules will significantly reduce the likelihood of burnout on the first day.

Main types of cryptocurrency trading

Spot trading

It represents the purchase or sale of currency with its instant transfer to another participant in the transaction at the current rate. The cost at which a trade occurs is called the spot price. Accordingly, when concluding a deal on the spot market, both parties must have an asset.

When assessing the state of the market, it is the position of spot trading that is primarily meant.

Cryptocurrency margin trading

Margin trading is an opportunity to borrow a certain amount of funds, which is provided either by the exchange itself or by its other participants. Real own funds are used as collateral. All the time the loan is used, interest is charged – then you will need to return the borrowed money, taking it into account.

Trading cryptocurrency futures contracts

Futures, or futures contracts, are a kind of agreements for the sale / purchase of cryptocurrency after a certain time and at a specified price. As a rule, they are used by traders for two purposes – taking profits in the case of trading in markets with high volatility or hedging risks.

The pricing of futures is transparent and depends on the demand indices of a particular currency on different exchanges. Sometimes there can be significant price differences for a short time.

The main difference between futures trading and spot trading is that instead of the asset itself, only a derivative contract is bought, which will be executed in the future.

Cryptocurrency brokers

The brokerage company is an intermediary who, for a fee, helps the user to complete transactions. Broker services are relevant for beginners: the company helps to figure out how to open an account, how to create an order, what to look for when trading, and also provides detailed statistics and analytics. The prices at which assets are traded are set by the broker himself, but is guided by the quotes of large crypto exchanges and financial agents. In fact, the exchange is also a broker.

Popular crypto brokers for 2019:

  • Currency.
  • Bybit.
  • Binance.
  • BitMEX.
  • PrimeXBT.
  • Weltrade.
  • Roboforex.

Fundamental and technical analysis in cryptocurrency trading

Technical analysis is the study of data related to exchange rates. Risks can be managed with technical analysis. Stop loss orders cannot be placed without focusing on charts, without paying attention to support and resistance levels.

The fundamental one includes a lot of other factors – news, statements from opinion leaders, volume analysis. It is believed that if a coin is actively traded day in and day out, then it is trustworthy and has value to users. Fundamental information and news are of course very important for any trader.

Cryptocurrency trading strategies

Popular strategies used by traders to make a profit:

  • Intraday trading. Opening and closing deals within one day using margin accounts. The three main types of intraday trading are the Ichimoku Kinko Hio method, RSI and Stochastic, working with a gap. They differ in the analysis indicators used in the process.
  • Scalping. Earnings on deals with a minimum duration (from a split second to a few seconds). Often combined with leverage. Suitable only in the conditions of an exchange or broker that charge minimum commissions.
  • Arbitration courses. Buying currency on one exchange at a lower price and selling it on another is slightly more expensive. The method is already losing its relevance.
  • Automatic trading using a pre-configured bot (a script that automatically creates orders depending on market conditions).
  • News trading. Selling or buying cryptocurrency based on news from the world of economics or politics. Often the news makes it clear in which direction the course will move.
  • Trading on pullbacks. A trend retracement is a short-term movement in the opposite direction; this is normal and usually followed by a dash. The strategy implies buying at the moment of a rollback at a low price and then selling at an increased rate.
  • Bounce trading (bounce). The opposite of trend trading. It is based on the levels of support and resistance, starting from which, the rate bounces off – and this is considered a signal to action.
  • Breakout trading. Breakouts of resistance and support levels, especially in a bull market, are strong signals. As a rule, this strategy is used when working with powerful assets with a large trading volume.
  • Impulse trading. It consists in creating deals at the time of active market movements. Open orders can be saved from several minutes to the entire trading period. It depends on how strong the momentum is and whether there is reason to believe there will be a reversal.
  • Positional trading. Long-term trading according to trends on charts and on large time frames. The macroeconomic part of fundamental analysis is often used, as well as technical analysis.
  • HODL strategy. Long-term holding of coins in your account in order to sell them when the rate rises significantly. The duration of the investment can be up to several years.

And many others with varying degrees of fame.

Benefits of Cryptotrading

The cryptocurrency sphere is developing rapidly – new trading platforms are opening, new projects and coins appear. All this gives a huge scope for earning. It is also noteworthy that you can start with a minimum investment – there would be nothing to do in the stock market with $ 100.

Moreover, the cryptocurrency market is highly volatile. Although this can be called a minus because of its unpredictability, this fact makes it possible to get a good profit in a short time. The main thing is to act on the basis of information and analysis, and not to succumb to emotions.

Example 1: Trading cryptocurrency on the EXMO exchange

EXMO exchange ranks 24th in terms of daily trading volume (as of November 23, 2017, it is 5203 BTC). 13 cryptocurrencies are available for trading on the site: Bitcoin Cash (BCH), Bitcoin (BTC), Dash, Dogecoin (DOGE), Ethereum classic (ETC), Ethereum (ETH), KICK, Litecoin (LTC), Tether (USDT), WAVES , Monero (XMR), Ripple (XRP), Zcash (ZEC). There are 43 currency pairs in total. New coins are periodically added to EXMO, for example, since November 22, Bitcoin Cash has been included in the listing, which appeared in August after the Bitcoin network hard fork.

Official website of the trading platform: exmo.me.

Cryptocurrency trading on the EXMO exchange, as well as on other platforms, consists of the following stages.

  • The first step is to create an account. You won’t be able to trade without registration. The process is very simple – on the main page of the exmo.me website, you need to enter your email address, create a password and click “Register”. Read the “User Agreement” beforehand and confirm your agreement to accept all the points set forth in it. Consent to email newsletters is a choice, but note that the company often publishes and sends out interesting articles about cryptocurrencies and notifies about the news.
  • The second step is confirmation of registration by clicking on the link in the letter you receive. You do not need to go through account verification if you plan to use some payment systems for input and output (cards, bank transfer, Neteller).

Review:Bitcoin Exchanger

  • The third step is to top up your balance for cryptocurrency trading.

There are two options:

EXMO recommends using special EX-CODE codes (vouchers) for replenishment, as this is the fastest, most convenient way for which the exchange does not charge any commission.

You need to buy codes in the exchanger. We recommend proven services: ProstoCash, Xchange, 60cek, so we ourselves periodically use their services. You need to specify the amount and currency of the exchange, and select EXMO (USD, RUB or EUR) as the receipt:

Then the code must be loaded in the “Wallet” section – “EX-code” – “Top up”:

Alternative way: after creating an account, accounts in fiat currencies (dollar, euro, ruble, hryvnia) and cryptocurrency are available.

To replenish, go to “Wallet” and click “Replenish” in front of the account. For example, the following payment systems are available for the USD account: Perfect Money, EPAY, CryptoCapital, Wire Transfer, Money Polo, AdvCash, OKPay, Neteller, Payeer:

  • After the money is credited to the account, you can start trading cryptocurrencies directly.

You need to go to the “Trades” section and select the desired currency:

For example, all pairs with the US dollar. Choose the most popular: BTC / USD:

A chart is the movement of an asset’s price over a period of time. It is mainly displayed as Japanese candlesticks. The “candle body” shows the level of value at the close and open of the time period. Red indicates “bullish”, blue – “bearish”, but the color may be different. Thin lines are “shadows”. You can select the desired timeframe on the chart: day, week, month, year. For short-term cryptocurrency trading during the day – the “day” time interval; for medium-term – “week”, etc.

Analyzing the BTC / USD chart: after updating the maximum ($ 7500) in early November, the asset price pushed off the resistance area, a rollback began due to investors closing deals and triggering limit sell orders. From the support area ($ 5600-5700), they began to buy cryptocurrency again, so the price again returned to its previous value and easily broke through the resistance. As you can see, trading from levels in the presence of confirming signals is quite effective.

Review article: “How to buy bitcoins for rubles.”

How to trade cryptocurrency and place a buy or sell order on the exmo.me exchange?

To do this, you need to select the type of a trade order:

  1. Limit – buying or selling the required amount of cryptoasset at the cost specified in the application (self-selection of the price).
  2. Market – instant purchase or sale of a coin at market price

The main condition for triggering a limit order is that the price must reach the specified value (it is necessary to set its reasonable value). If this does not happen, the order must be canceled (no commission) and a new one must be created, and this is lost time and profits. Therefore, it is best to buy at the market.

An example of placing a limit order. We buy 12 BTC at $ 8100 for $ 97200, and then sell the same amount at $ 10,000 for $ 120,000. Net profit without commission: $ 22800.

Article: “How to Buy Ethereum“.

An example of a market order: you need to indicate the purchase amount in BTC in the “Quantity” line or in dollars in the “Amount” line. If there are enough funds on the balance, the order will be instantly executed and the cryptocurrency will be credited to the account. Exchange commission – 0.2%.

You can trade in this way: buy at the market, and then create a limit sell order. The Bitcoin trend is upward, there are all prerequisites to sell at a higher price and make money on the rate difference. Analysts predict further appreciation of the bitcoin rate.

All trade orders enter the order book, where you can see how much and at what price other traders are buying or selling the coin. They are sorted according to the rate – the best offer.

Continuing: “Buy cryptocurrency for rubles”

The trading history on the crypto broker’s platform is also available for general viewing:

The Exmo.me exchange has a cryptocurrency trading mechanism for beginners through the “Exchange” tab. In the form you only need to select currencies and amount.

As you can see, cryptocurrency trading is not difficult. It is available to everyone.

Review article: “Investing in cryptocurrency”

Example 2: Trading cryptocurrency on the Livecoin exchange

Trading cryptocurrencies on the Livecoin platform is similar to other exchanges. The listing of the site includes 168 coins – from the most popular to the most recent ones. A total of 335 currency pairs are available for trading. The daily turnover is 3316 BTC and the 32nd place on the list.

Official website of the platform: livecoin.net.

To trade cryptocurrency, you need to create an account and top up your account balance.

Livecoin vouchers of the required denomination can be purchased from online currency exchangers and redeemed.

Or use the methods of depositing money offered by the exchange. For example, for an account in rubles RUR: Capitalist, Advcash, Payeer, Okpay.

For crypto trading on the exchange, go to the “Trade” section:

Choose which currency pair to trade. For example, buying bitcoins for US dollars:

Go to the creation of a market order (only the quantity is indicated, execution – at the market price):

Create a limit order (you need to specify a reasonable price and quantity):

It is also possible to view the history of transactions and open positions of traders (order book) on the Livecoin exchange.

Other exchanges for cryptocurrency trading

The examples above showed the basics of cryptocurrency trading and order creation on EXMO and Livecoin exchanges. Now let’s give a rating of the top 10 largest crypto-exchanges in terms of daily trading volume:

  1. Binance.
  2. Bithumb is the world’s largest exchange based in Korea. More than 20% of the cryptocurrency trading volume falls on it. The listing has 10 coins: BCH, BTC, Dash, ETC, ETH, LTC, QTUM, XMR, XRP, ZEC and 10 pairs with them. There is an English version of the site.
  3. BitFlyer is a major Japanese exchange with the second largest trading volume (13%). There are 3 cryptocurrencies available for trading: BCH, BTC, ETH. You will not be able to enter the site, since visiting from other countries is prohibited.
  4. Bitfinex is the third largest exchange in terms of daily cryptocurrency trading volume. There are 24 crypto coins on the list: bitcoin, Bcash, Ethereum, NEO, Litecoin, Dash, Monero, Ripple, Zcash, Ethereum classic and others. The Hong Kong Exchange is registered. There is a choice of the Russian language.
  5. Bittrex is an American cryptocurrency trading platform (volume – 9.5%). There are 203 coins available for crypto trading. The site is in English only.
  6. Coinone is another South Korean cryptocurrency exchange. 7 coins are traded on the site: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple and others.
  7. Poloniex.
  8. Coincheck.
  9. GDAX.
  10. Korbit.

Cryptocurrency trading bots

Trading bots (robots) are computer programs with built-in indicators for tracking rate trends and functions for automatic execution of transactions. Initially, similar programs appeared for the stock, commodity and foreign exchange markets, but with the advent of cryptocurrencies, they moved into this area.

Over the past few years, the industry of bots for trading on exchanges has been moving rapidly – innovative functionality appears, new players enter the market.

Existing varieties of trading robots

Cryptocurrency trading bots fall into two broad categories:

  1. Arbitration. At the start of the development of exchanges, arbitrage was the main profit-making strategy used by almost all traders. This is the acquisition of trading assets on one site and sale on another, where the rate is higher. This is how profit is generated from the price difference. Today, the spread in prices between exchanges is not so great, but it is still observed periodically, and with the help of bots, you can successfully take advantage of these moments.
  2. Trading. Such bots are focused on the spread of levels between the cost of buying and selling the same currency within the same platform. The rates are constantly fluctuating; the trading bot will create limit orders in order to regularly receive income from the price difference. This can often be a profitable strategy, but in conditions of low liquidity, it can also be unprofitable.

When programming a robot, a trader can set specific price values at his discretion, depending on what risks he is ready for. The active use of bots is not suitable for everyone – you need to be able to correctly manage the program, closely monitoring the state of the market, and not just leaving everything to chance.

Advantages and disadvantages of bots for cryptocurrency exchanges

Pros: ✅

✅  Trading 24/7. By launching the bot, you can trade even at night or while at work. The main thing is that the strategy is chosen correctly and does not lead to losses.

✅  No emotions. A living person is subject to emotional outbursts, which makes him commit rash acts, including in trading. The bot works strictly according to the given algorithm.

✅  Saving time. There is no need to spend days long pressing the same buttons. It is enough to set instructions and only control the process.

Cons: ❌

❌  Difficulty of choice. There are many cryptobots, and finding the right one can take a lot of time and effort. This is no less serious than choosing a phone or laptop. In addition, there is a possibility of encountering a fraudulent project that will trade in favor of its developer or steal personal data.

❌  The need for ongoing support. You cannot configure a bot once and forget about it. The crypto market is constantly changing, and at the same time the instructions for the robot must be adjusted.

❌  Limited choice of strategies. Trading robots cannot take into account fundamental analysis, insider information, the latest news background and other factors of market movement. Only elementary strategies are used, for example, the simplest arbitrage.

Let’s take a look at several well-known programs and services that you can use. Some of them offer slightly more options than simple automated trading. In particular, modern trading systems and the possibility of using it on numerous modern crypto-exchanges.

Revenuebot

RevenueBot is based on the volatility of cryptocurrency rates. You can choose any exchange you are interested in and any trading pair located on it. The bot works around the clock from the cloud using the API interface, so you do not need to install software on your computer and keep the device always on.

RevenueBot makes it possible to launch several robots at the same time in order to work with several trading pairs and on different exchanges at the same time.

3commas

3Commas is a popular trading bot that works with many popular crypto exchanges (Bittrex, YOBIT, Binance, Cryptopia, KuCoin, GDAX, Poloniex). It is also a cloud-based program that runs 24/7 regardless of whether the device is turned on.

The program can be accessed from any convenient site – a computer, laptop, mobile phone, tablet. The functionality allows you to activate take profit and stop loss orders, and also copy successful strategies of other people.

Cap Club

Cap Club was developed in Russia and currently works only with Bittrex and Binance. Offers advanced order types and automated token buy / sell. Differs in the simplicity of the site and interface, the settings are clear even for beginners.

It comes in two slightly different variants – free and paid. In the first, the number of cryptobots and social functions working simultaneously is limited. Having got the paid version, the user can set up sending a notification to Telegram.

Cryptorg

Cryptorg works with the KuCoin, Poloniex, Binance, Bittrex and Bitfinex trading platforms (more will be added in the future). It has a user-friendly interface for use with any technique, makes it possible to run an unlimited number of robots for different trading pairs.

It is distinguished by the allocation of a separate IP for paid tariff plans, thereby minimizing the risk of an account being banned on the exchange. You can easily configure the receipt of event notifications in Telegram.

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