Choosing the Right Exchange to Maximize Cryptocurrency Trading Profits


Finding the right cryptocurrency exchange can make a difference between making money or losing funds. Several factors need to be taken into account before committing to a certain platform.

Finding the Right Trading Platform

For the end user, it should not matter too much if an exchange generates over or under $1 billion in daily trading volume. One could argue that more volume is beneficial, but that is not necessarily the case. Staring at just the reported volume by trading platforms themselves is not the indicator traders should be looking for. It only tells part of the story, and the accuracy of this data is never fully guaranteed.

For those traders who simply want to make the most profit, there are other facets of a trading platform to look at. The number of daily trades, or the different trading pairs can often give a much better indication of what is going on exactly. There is also the list of supported fiat currencies to keep in mind, as dealing with currency conversion rates eat into one’s profits when not accounting for them.

Last but not least, every trading platform has its own fee structure. Some companies charge a fee for both market makers and market takers. Others may offer negative trading fees for those who can provide certain amounts of market liquidity on a constant basis. Exploring and comparing these different aspects will help make a well-informed decision.

Ongoing Industry Growth

Over the years, dozens of new exchanges and trading platforms have appeared all over the world. Not all of these companies will be successful in the long run.

Competing with established giants can be very tricky, especially if one can’t compete on fees, supported fiat currencies, types of trading pairs, and so forth. Traders are always looking for ways to maximize their earnings.

 Despite the odds, there is a significant growth as far as cryptocurrency exchanges are convinced. Primarily the trading of derivatives has seen an influx of new providers. Although this remains a relatively small segment compared to “direct’ crypto trading, it can be a worthwhile market for traders looking to maximize their profits.

Crypto Derivatives are a Hot Commodity

With derivatives, users can also leverage their trading position. Amplifying one’s position is a great way to generate bigger profits, but it can incur steeper losses when market positions aren’t monitored correctly.

This particular approach has attracted a lot of trading volume in the first half of 2020. Companies such as Huobi, FTX, OKEX, and Binance noted solid growth since late 2019, despite having to deal with a dip in April of 2020. Derivatives providers have generated over $300 billion in monthly volume on a regular basis, further confirming overall interest in this market segment.

More competition will emerge among crypto derivatives platforms. WhiteBIT puts a strong focus on the European and CIS markets, which can give it a competitive edge over some of these other providers. Traders will be able to exchange top crypto assets against the likes of the Turkish Lira, Russian Ruble, and Ukrainian Hryvnia, among others.

The company has been around since 2018, and prides itself upon being transparent and secure. Its initial approach of spot trading has yielded a community of 35,000 active traders.  Adding margin trading to this platform – with up to 25x leverage – will add another layer to the cryptocurrency industry as a whole.

Tapping Into Unexplored Markets

The vast majority of cryptocurrency exchanges dealing with fiat currencies stick to more traditional options. Those options often include the Euro, US Dollar, and Pound Sterling. For other fiat currencies, traders often have to find a trading platform native to their own country. That is often easier said than done, and can create unnecessary hurdles hindering cryptocurrency adoption.

As more platforms begin exploring support for currencies in specific continents, the industry will be able to grow and evolve. Traders don’t want to convert their domestic currency into a foreign one before being able to trade Bitcoin and altcoins.

Simplifying this process and lowering barriers to entry is crucial for attracting more enthusiasts and traders. More importantly, it will increase potential profits earned by traders exponentially.

Bitcoin Demand Around the Globe

Statistics confirm that demand for Bitcoin exposure remains high In Eastern Europe, Russia dominates the peer-to-peer trading volume charts, ahead of Ukraine, Belarus, and Romania. Across the Middle East and Northern Africa, a similar trend has emerged in the UAE, Saudi Arabia, Morocco, Egypt, and Turkey.

If the cryptocurrency industry is to advance, all of these emerging regions have to be supported by current and future trading platforms. That shift is happening, slowly, but surely, yet there is still plenty of work to be done.

Whether it is through direct crypto trading, or vehicles such as derivatives, traders need to do everything to increase their profit potential whenever possible.