The crypto industry has been growing by leaps and bounds over the past several years, which has partially been fueled by an influx of new traders to the markets, lured by the massive volatility incurred by Bitcoin and other digital assets on a frequent basis.
In order to serve these active investors, the markets have been met with a deluge of trading platforms all vying for the support of Bitcoin and crypto traders, but it can be difficult to cut through the noise and determine which platform is the best.
There are three key factors that should be considered when determining which platform to patronize, with some exchanges offering significantly better features than others.
Factor 1: Privacy and Security
Just a few months ago, users on popular cryptocurrency exchange Binance had a significant amount of their private data leaked after photos and information related to users’ KYC proceedings were released on a Telegram group.
This data leak is said to have impacted 60,000 customers who signed up for accounts and underwent the KYC proceedings in 2018 and 2019 and appears to be directly linked to the Binance hack that occurred last May.
This data contained deeply personal information, including self-photographs, names, and more, and put the privacy and security of all these customers in grave jeopardy.
One of the only major margin trading platforms available to investors that places an extreme emphasis on its clients’ privacy is PrimeXBT, which allows traders to use up to 100x leverage on Bitcoin and other assets.
This platform also allows users to set up fully anonymous trading accounts without having to surrender any private information or take place in KYC proceedings – which can expose a significant amount of extremely private data, as seen in the aforementioned Binance data leak.
PrimeXBT also utilizes industry-leading security features in order to protect its users from potential threats, employing a multi-tiered security system and storing the bulk of its clients’ digital assets in cold storage.
Factor 2: Fees and Costs
After finding a platform that offers thorough protections for its users’ privacy and security, the next key factor that should be considered is what the cost to trade will be.
Trading fees are fairly straight forward and can be easily compared between platforms.
Currently, Binance charges the highest taker fee of all major margin trading platforms at a whopping 0.1%, but users can reduce this fee by using the platform’s native digital asset – BNB – as the primary trading pair and by having a high 30-day BTC turnover.
BitMEX and Deribit both charge a 0.075% taker fee, which is slightly lower than Binance’s, although they do not offer as many opportunities to receive fee reductions.
PrimeXBT currently has the lowest fees, charging a flat 0.05% trading fee on all BTC transactions. Like Binance, PrimeXBT recently introduced a tiered fee structure that offers generous discounts for active traders based on their 30-day BTC turnover.
Factor 3: Features and Stability
Around the time that the world was taken aback by the egregious Binance data leak, Deribit also faced widespread controversy when a data flaw led to an anomalous and isolated Bitcoin flash crash that led many traders to lose a fortune when their positions were stopped or liquidated.
Although BitMEX has not faced any isolated flash crashes in recent times, traders often complain about inconsistency when it comes to placing orders and modifying existing ones – especially during times of massive volatility.
Traders who want to successfully translate Bitcoin’s massive volatility into profits cannot afford to risk trading on a platform whose instability may expose them to unnecessary risks, which is why it is imperative to choose a platform like PrimeXBT or Binance that has a track record of providing their clients with stability and consistency.
One key feature that is unique to PrimeXBT is the fact that it offers traders access to a plethora of markets beyond just digital assets, offering access to commodities, FOREX trading pairs, and stock indices.
Who Takes the Crown as The Best Platform for Bitcoin Traders?
All exchanges have pros and cons that should be carefully weighed, but while considering the three main factors discussed above, it is clear that BitMEX – which has long been the king of Bitcoin margin trading – can no longer be considered a viable option to traders.
Bakkt, which offers users access to physically settled Bitcoin futures, launched this past September and is aimed at on-boarding large and institutional traders, and does offer users a safe and regulated medium to trade and store BTC.
It is important to note that this platform did have a lackluster launch but has since gained greater popularity. It is likely that it will continue to see further growth in the months and years ahead as Bitcoin goes mainstream and garners greater widespread adoption.
Although Bakkt does have the potential to be a great platform, it is not ideal for active traders who are looking to trade using leverage, as its market offering is currently limited to Bitcoin and it does not offer users access to leverage.
While looking at the remaining options that do offer users access to leverage, the relatively high fees and lack of stability on Deribit eliminates it as a good option for traders, leaving Binance and PrimeXBT as the two best options.
PrimeXBT does have slightly lower fees than Binance, and traders who value privacy will appreciate the fact that they don’t have to surrender any personal information while signing up for an account on PrimeXBT, while they do have to participate in mandatory KYC proceedings if they want to use Binance.
With this in mind, PrimeXBT gains a valuable edge over Binance, and emerges as the best margin trading platform currently available to Bitcoin traders.