Where is best to trade bitcoin: crypto exchanges and bitcoin trading review

Which exchanges to choose for trading bitcoins? Where does automated trading work best, which provides a sizeable passive income? This article will focus on crypto exchanges that are most suitable for trading bitcoins.

Getting started is simple: create your account, go through a check, and fund your account. It is recommended to choose automated trading services, so as not to depend too much on the fall or appreciation of the digital currency.

Most often they buy bitcoins for dollars, but many exchanges accept rubles, euros and other currencies. For experienced traders, exchanges are suitable that allows you to trade with considerable leverage of up to 100x.

In general terms, a trader, in the understanding of a common man in the street, is a person sitting at a computer which looks at several monitors simultaneously on which a bunch of graphs and media tapes are open, which is essential. The picture almost looks like this, the only thing if you arm yourself with only the media, then nothing good will come of it. Practice shows that news feeds that absorb news from primary sources are purely introductory, and they are useful to understand the general background and mood of the market.

One of the best cryptocurrency exchanges

Dowmarkets is one of the oldest and most respected exchanges. Because there are immediately three wallets (Bitcoin, Ethereum, Litecoin), and also has a convenient application for the phone. Moreover, you can also trade on this exchange. If you want to buy a lot of bitcoin cash and store for a long time, offline wallets are better for you. If you wish to trade, occasionally send payments, then it will be difficult for you to buy bitcoins from offline to online continually and vice versa – it will be a very long time and a commission will still be charged. If you want to trade, occasionally send payments, then it will be difficult for you to constantly send buy bitcoins from offline to online and vice versa – it will be a very long time and a commission will still be charged. Therefore, it makes no sense to store small amounts in offline wallets. But you need to consider that exchanges are intermediaries, and if an exchange is hacked, then it is not responsible for your funds. Therefore, store your funds on different exchanges. Our recommendation: Dowmarkets for more or less permanent storage, Poloniex for active trading. The most popular offline wallet for your computer is called Start. To install it, you need to go to the official website of the company and open an account.

How to choose a reliable exchange: our recommendations

Choosing a cryptocurrency trading platform is an essential step at the beginning of a cryptocurrency trader. It is necessary not to make a mistake here because the price of this error can be too high – lost time and even money. We offer several recommendations on how to choose a perfect exchange.

Pay attention to the level of reliability

The security of your assets is the most important thing that a good platform should provide. A wide selection of ways to protect your account means one thing: the exchange cares about its customer support. High-quality resources offer users a two-step login to the account, the use of multi-signature, setting limits on the withdrawal of money from the account, and sending notifications when entering the account.

Learn Exchange Reputation

Read expert opinions, read reviews of real traders. A comment is an important indicator that will guide you in choosing a quality platform. Also, read news about the resource.

Estimate the amount of commission

All cryptocurrency exchanges charge a fee for using their services. The only difference is their size. On average, a quality platform does not take more than 0.3% of the transaction amount.

See how difficult verification is

The procedure for confirming personal data is present on all crypto exchanges. On some, it is optional, others without its passage will not allow the trader to trade. Evaluate how complicated this process is, what documents the administration asks to send, and whether the team guarantees the protection of personal data.

How to choose a cryptocurrency exchange

When selecting new sneakers, you consider them according to your requirements, and not what the seller advises, as is the situation with the cryptocurrency exchange. If your primary concern is the security of your trading deposit binance coins in the future, then you need to choose any eminent cryptocurrency exchange. Now all cryptocurrency exchanges from TOP10 and various ratings of cryptocurrencies “keep the mark.” Otherwise, they would not be there.

But if we are talking about a more in-depth analysis, and you want to know how the sites differ, then we will dwell first on such criteria:

  • an assortment of trading pairs;
  • exchange Duration;
  • multilingualism;
  • work with fiat trading pairs;
  • privacy policy for protecting personal data of customer support.

Based on this, at the end of the article, you will find a convenient ranking of exchanges in the following categories:

  • crypto-exchange with the withdrawal to Yandex.Money and Qiwi;
  • cryptocurrency exchange – the leader in trading volumes;
  • the best exchange for margin trading;
  • the best exchange with Russian and English language support;
  • exchange with the most positive reviews.

First of all, when choosing an exchange, you need to decide which cryptocurrencies you are going to trade and whether you want to work with fiat. For experienced users, English-language technical support and the Russian interface are not so important, but novice traders may experience severe discomfort due to the abundance of unfamiliar terms, also in English. For some, exchanges with a bank credit card are essential; others prefer to store bitcoin; different platforms offer different capabilities. Besides, some are important for anonymity, but not all exchanges work without verification.

The technique of concluding transactions in trading Bitcoins

Let us show, for example, how an order is issued for trading Bitcoin with one of the brokers. You set the transaction amount in dollars. In this case, the legal minimum is $ 20. The system suggests using a multiplier (this is called leverage in Forex). If you do not have trading experience, we advise you to do without a multiplier or put it at the very minimum.

We are warned that when a transaction is concluded, the system charges a commission of 0.3659% and offers to limit profit and loss. These are analogs of taking advantage and stop loss in ordinary margin trading. In this case, you do not have to indicate the price; both of these parameters are shown in dollars. That is, if according to the rules of money management, you can lose no more than 2% of the deposit on one transaction, you need to calculate how much it will be in dollars and fill in the corresponding field (“Loss”). The size of the multiplier limits profit – we chose 5, so the benefit cannot be more than $ 5. It is also possible to limit profit and loss by indicating the price, which is more common for many traders.

Next, choose what we will do, buy, or sell. If we assume that Bitcoin will grow, we select “Growth” and vice versa. This way of trading, or rather speculating on the Bitcoin exchange rate, is hazardous. You need to accurately capture the moment when the asset will move in the selected direction and not fall into one of the kickbacks. But for small bets, it is quite suitable. When you open a transaction in the credit card amount of $ 20 with a multiplier of 5 with a price change of 10 points, our profit/loss changes by about $ 0.1, for one point, the first digit before the decimal point is considered, numbers after the decimal point can be ignored.

So, we sold Bitcoin (issued a deal “in decline”) for 7030.015. At the moment, the price has increased to 7034,995, which brings us a loss of 0.45 dollars (already taking into account the commission). But the cost can turn around at any time and go our way. To close a deal with a broker, click on the cross and the system will record the profit or loss that we received.

As you can see, cryptocurrency trading is real, and with a small deposit, it is not necessary to have thousands of dollars in the account for this. Also, many brokers offer to try their hand at a demo account without investing real money.

Bitcoin Trading Strategy with Dowmarkets

Most exchanges do not offer optimal conditions for speculation (short-term trading) with cryptocurrency. Using the example of the Dowmarkets exchange, we see that the minimum possible chart consists of candles lasting 30 minutes (the broker has 1 minute). Also, there are no indicators for technical analysis. But the exchange is convenient in that it provides the services of a multi-currency wallet for long-term storage of cryptocurrency. Therefore, it is better to make long-term, but small investments on the exchange, especially since the choice of cryptocurrencies is much higher here. Nevertheless, many traders have adapted to do analysis on broker’s platforms or in a MetaTrader, and trade on the exchange.

Dealing with trading techniques on the exchange is more comfortable than with a broker, and the minimum rate is practically unlimited. You can trade Bitcoins for 1 dollar. To do this, we go down a little lower on the Bitcoin trading page and see the form for opening a transaction by limit or by market. The latter means that we buy Bitcoin at the current price. The price designation for Dowmarkets is not the same as that of a broker – a comma separates thousands from hundreds. This is convenient since the broker’s three decimal places are confusing for many, without any meaningful information.

In the case of concluding a limit transaction, you will need to indicate the price at which we want to buy/sell Bitcoin cash. The system calculates the amount in Bitcoins, depending on how much in dollars we make a deal. To close the deal, we do the opposite – if you used to sell, then now we buy and vice versa.

When choosing a place for trading cryptocurrency, focus on your goals. The best strategy for trading Bitcoins on the exchange is a medium-term and long-term investment. If you plan short-term speculation to make a quick profit, then the best conditions for conducting a technical analysis of the asset with brokers.

Next, we will talk about the features of investing and short-term speculation with cryptocurrency in general and Bitcoin in particular.

Investing in cryptocurrency – what you need to know

The first thing that should be clear to a newcomer to the crypto business is that you should not chase super-profits. It is clear that you want a lot of money right away, but even with a lot of luck and proper theoretical preparation, the risk remains high. Cryptocurrency is a relatively new financial instrument, the principles of which are still being formed. Therefore, it is logical to act in the most reliable and proven way – to set tiny goals and consistently achieve them.

There are several strategies for Bitcoin and crypto trading in general, each of them has its characteristics

  • Short-term investments. This option is the most dangerous since it carries the most significant risk of losing a deposit. Often the first trades of novice traders are successful, which is misleading about quick and easy money. In fact, for short-term trading, you need to have technical analysis skills and a good understanding of the trading structure.
  • Trade-in a basket. When trading a basket, equal parts of the deposit are allocated to different coins. The shelf life of the basket can vary from a week to several months, depending on the personal preferences of the trader. The basis of this strategy is the principle of buying and selling coins at the same time as the investment term ends. As a result, the advantages of successful transactions overlap the disadvantages of unsuccessful ones. To trade a basket is better to go to the exchange. So, the Dowmarkets exchange offers about 500 assets in which you can invest.
  • Long-term investment, Buy & Hold. This strategy is to buy coins and expect a significant appreciation. It usually takes a long time to wait, but in most cases, such investments give a sure profit.

The cryptocurrency market is, in many respects, similar to hype investing. Therefore, it will be easier for experienced investors in hype projects to learn how to make money on cryptocurrency. Here, the basic rules of money management are sure to come in handy, one of which is the qualified distribution of parts of the deposit for different assets.

Investing correctly in Bitcoin is still relevant, despite the recent turbulent events. Many analysts claim that the drop in the price of Bitcoin in December 2017 was natural and predictable. And now is the time to buy this asset in anticipation of the second wave of growth.

Features of Short-Term Bitcoin Trading

As well as when trading stocks, which are very reminiscent of the movement of cryptocurrencies, we carry out both fundamental and technical analysis but take into account several nuances.

  • Fundamental analysis of stocks includes a review of the company’s activities, the general background in this sector of the economy and the country. In the case of cryptocurrency, any information that is associated with it or with leading coins comes first. Since Bitcoin remains the first and most valuable cryptocurrency in the world, it pulls other currencies along with it like a locomotive. The fundamental analysis of Bitcoin is based on constant monitoring of everything connected with the world of cryptocurrencies in general and with Bitcoin in particular. There is no news calendar like on Forex or release dates for company reporting, as is the case with stocks. You need to monitor all crypto news continually and instantly correctly respond to them.
  • Technical analysis for cryptocurrency trading is also slightly different. Oscillators work worse here, as trends can be sharp and durable. Therefore, it is preferable to use of trend indicators. Channel operation can be dangerous due to instant unforeseeable emissions, which, due to slippage, lead to severe losses. At the same time, trading shows good results based on the analysis of Fibonacci or Gann tools. Projections, and corrections, and angles work. Volume indicators have also proved their effectiveness – surges inactivity after the appearance of volume on the market make it possible to predict dynamic price changes.

Best Bitcoin Trading Strategies

  • Moving averages. Exponential MAs are preferred. Their period will depend on the timeframe on which you trade. So, on TF Н4 MA works well with a period of 12 or uses the standard Williams Alligator. If the price crosses the indicator lines and remains there for some time (fixed), we open a deal to buy. Fixation can be considered a period of 4-6 candles, which the price spends above the moving averages. Stop (loss limitation) is placed beyond the indicator line, at the earliest opportunity, it is transferred to breakeven. Moving averages have worked well in the cryptocurrency market. Long-term trends with small corrections make it possible to buy in when the price approaches MA, thus providing a significant profit.
  • Volume indicators. After a long trend, the appearance of a surge in volume will mean a high probability of a change in the direction of price movement. Since there is no news plan on the cryptocurrency market, when volatility is expected to increase significantly, the only thing that can warn us about such a surge in volatility is the appearance of big money on the market. So, if the price has been rising for some time, and a large volume has appeared on the market with individual candles, the asset will likely begin to be sold. So, soon, the price will start to fall. If the next candle, after a large volume, is still directed upwards, it means that the asset is being bought up and it will begin to grow even faster.
  • Fibonacci levels. They work the same way as on any other assets. If the price has rolled back to an essential level of 38.2%, 50% or 61.8%, it is highly likely that it will rebound from the scale. Be sure to look for confirmation in the form of a candlestick pattern or the readings of other indicators. If the trend is powerful and fast, 23.6% pullbacks most often work on it. Fibonacci levels also work well with long-term corrections. For example, if after a good trend the price rolled back to the level of 23.6%, then returned to the level of 9%, then it will likely reach the level of 38.2% or 50% of the Fibonacci retracement. In the presence of any confirming Bitcoin signal, you can confidently enter the transaction.

The main methods of minimizing risks in investment activities related to cryptocurrencies

  • Investments in various assets (it is recommended to choose the most successful and supported cryptocurrencies from the world TOP list).
  • The use of several exchange platforms (after all, no one is immune to problems associated with hacking and other frauds).
  • Investing in the same asset should not be maximum. It is best to spend no more than 50% of your capital at a time.
  • Use wallets on exchanges carefully. Long-term storage of large amounts on exchange accounts is not recommended unless it is caused by constant trading.
  • These simple rules will allow you to more effectively engage in trading and never get into situations where your or a third-party error leads to a complete loss of accumulations.


Trading cryptocurrencies on the exchange is one of the most modern and promising methods of earning in the field of advanced technology. To become one of the traders, it is not necessary to have substantial initial capital and some knowledge inaccessible to others.

Market participants may well be people who are just starting their way in this area and have a modest capital of a couple of thousand.

The main thing is to approach this issue as responsibly as possible: study all the most common methods and techniques of analysis, data on the features of various exchanges, information about the cryptocurrencies that interest you.

Immediately after this, you can begin to realize your primary, not too bold plans, which over time and after gaining valuable personal experience will develop into something more.

Even though brokers offer charts with minimal time frames, intraday trading can be difficult due to a lot of noise. It is hardly worth a novice to use charts smaller than H1, and all indicators show the best results on four-hour and daily timeframes. Nevertheless, with the correct settings of indicators and some experience, you can build a profitable Bitcoin strategy on smaller timeframes for intraday trading.

The conclusion from all the above can be drawn as follows: the long-term prospect of storage for inexperienced traders looks preferable. To trade Bitcoin and make money on fluctuations in one day, you need to study a lot of theory, understand the influencing factors and practice on a demo account.

Posted: 2.07.2020 | Ludmiła Gorodnichenko
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