The worst and best digital currency exchanges; A look at popular cryptocurrency exchange platforms

It seems like everyone is into digital currency these days. But to enter this volatile world, you first need a digital currency exchange where you can buy and sell.

Cryptocurrency exchanges are where traders can buy, sell and convert cryptocurrencies and NFTs (Non-Fungible Tokens). Some exchanges have the most competitive prices or transaction speeds, while others offer specialized financial products.

Stay with us in this article to learn about the best digital currency exchanges, how they work and which one you should choose. In this article, we are trying to help you decide which exchange is the best for you and which exchanges you should avoid.

Key factors in choosing the best digital currency exchange

Choosing an exchange for digital currency is not as simple as it seems at first. There are a number of considerations, all of which are critical to your success in the cryptocurrency world. Your choice will be based on your level of expertise and risk tolerance.

The first step in entering the crypto world is always to find a reliable exchange. But it’s not all about reliability. A good exchange has the following features:

• Excellent customer service and support
• High liquidity
• Low fees
• Ease of use
• Offering a wide range of digital currencies
• Insurance
• Compliance with the law

If you are looking for a foreign exchange, a good site to choose from is coinmarketcap, which lists over 300 exchanges. It is estimated that more than 500 digital currency exchanges are active today. However, the traditional method of ranking exchanges based on the volume of transactions does not provide the investor with a complete picture. Features such as customer service, ease of use, and legal compliance are not factors that are typically considered when choosing a cryptocurrency exchange. The most important point that is always neglected is the compliance of an exchange with the law.

Regulation is a complex area in the cryptocurrency space. The field of cryptocurrencies has not yet been officially legislated. Therefore, exchanges that do not have the necessary licenses are not very reliable. To the extent, investors who invest in such exchanges face the risk of losing their capital if these exchanges are closed for any reason.

The role of Iranian users is clear. Working in international exchanges is prohibited due to sanctions. In general, any Iranian investor who trades digital currencies through international exchanges is at great risk of losing their assets if detected.

Different types of digital currency exchanges

In general, there are three types of exchanges:

• concentrated
• Decentralized
• hybrid

Centralized exchanges are the most common and traditional type of digital currency exchange. These exchanges are owned by private companies and provide a platform for digital currency transactions. These types of exchanges have a higher trading volume and liquidity and offer more currency pairs.

Centralized exchanges are often a good option for novice traders because of their better user interface, availability of customer support, and asset insurance. These types of exchanges require authentication.

The main problem with these exchanges is that they are inherently more vulnerable to hacking attacks.

Centralized exchanges are divided into two categories:

• Peer-to-peer (P2P) exchanges
• Over-the-counter (OTC) exchanges

In peer-to-peer exchanges, every transaction takes place at an agreed price between customers, and the exchange acts as an intermediary. On the other hand, in OTC exchanges, the transaction is done directly with the exchange and users’ assets are not kept in the exchange’s wallet. Therefore, the security of users’ assets is greater.

Decentralized exchanges do not require authentication and operate without the control of a central entity. The servers of these types of exchanges are spread across computers located around the world, meaning that if one computer is attacked, the network will continue to function.

The main disadvantages of decentralized exchanges include lower transaction volume, low liquidity, poor user interface, and lack of customer support.

Hybrid exchanges are a new generation of trading platforms. They aim to overcome the limitations of legacy exchanges by offering the high performance and liquidity of centralized exchanges along with the security benefits of decentralized exchanges.

These types of exchanges have fast transaction speeds without compromising users’ privacy, but they are still newbies in the world of digital currencies. Time will tell if they will be successful due to high fees, low scalability and limited assets.

According to the types of exchanges that we have introduced, choosing the type of digital currency exchange depends on your conditions. Whether you want to operate on a centralized or decentralized exchange or a combination of both. It all comes down to your risk tolerance.

The worst and best digital currency exchanges

Here, for example, we will mention a few cases of foreign and Iranian exchanges and examine the risk of each of them. Finally, we will help you to find the right exchange based on your conditions.

What are the worst exchanges?

Amid the ongoing volatility in the cryptocurrency market, there have been reports of some centralized platforms halting withdrawals and freezing users’ assets.

Recently, the website MoonSpeeder.Com – a news platform that focuses on digital skills training – published a list of the worst centralized cryptocurrency exchanges and why.

Some of the worst centralized cryptocurrency exchanges as reported by moonspeeder.com are as follows:

• Hotbit exchange
• LaToken exchange
• HitBTC exchange

HotBit is an exchange with active users worldwide. In 2021, CoinMarketCap reported that HotBit had become one of the largest and fastest exchanges globally in terms of daily trading volume.

Moonspeeder reported that Hotbit usually faces various problems, including poor customer service support, delays in order completion of spot trades, high transaction and withdrawal fees, and because it has been hacked many times, it is careless about its users’ funds and security. .

Hotbit seeks money from token listings and doesn’t care what developers do with the listed token. Any company that has a listing fee, Hotbit will list that company’s token. According to MoonSpeeder report, Hotbit team will create a lot of fake coins or tokens and there will be a risk of rugpull in the future.

In 2017, the LaToken exchange connected more than 130 startups with 400,000 platform users and 1.5 million monthly visitors. Investigations show that this exchange also lists any type of token without checking the project.

The HitBTC Crypto Exchange platform is generally known for its worst customer support service, high withdrawal fees, and delays in spot trading order completion.

A review of the features of the worst cryptocurrency exchanges shows that the risk is always there. Don’t wait for them to change, you are dealing with a financial market, so trade with care and knowledge.

What are the best digital currency exchanges?

Foreign exchanges

If you are looking for foreign exchanges despite all the risks mentioned, use these exchanges:

Binance is the world’s largest cryptocurrency trading platform with high liquidity and low fees. This exchange insures users’ property, which is funded by transaction fees. Apparently, users’ assets are kept in cold storage. However, Binance has also been hacked several times. This exchange does not provide services to Iranian users and will block their accounts if their identity is revealed.

It is important to mention that the title of the world’s largest digital currency exchange cannot guarantee the security and credibility of an exchange. A case in point is the world’s second largest crypto exchange, FTX, which went bankrupt in a matter of days in November 2022, sending the entire crypto market into a tailspin.

Kocoin exchange is another favorite exchange of Iranian users, although it has not yet made authentication mandatory, but it is possible to announce it. In order to protect their assets, it is better for users not to enter this exchange with an Iranian IP and avoid keeping a large amount of cryptocurrencies in this exchange. Futures trading in this exchange is not very favorable for users and it has some problems that it is better not to use it.

In addition to these two exchanges, there are other exchanges such as Coinex, Bingx and Mexc that are of interest to Iranian users. Recently, it was announced that the Coinx exchange will stop its service in the United States. This issue is important for Iranian users who work with the IP of other countries, especially the United States. Therefore, users who operate with the IP of other countries should always be careful which country they choose.

Note that at any moment it is possible that any of the foreign exchanges will announce that they no longer provide services to Iranian users and block their accounts. As a result, always exercise caution and avoid keeping assets in the exchange account in case of trading. Even if an exchange like Bingx announces that it serves Iranian users, it is still wise to transfer your assets to your personal wallet immediately after the transaction.

Iranian exchanges

If you want to get rid of these problems and trade cryptocurrencies safely and not worry about changing your IP, revealing your identity and blocking your account, we suggest you register in an Iranian digital currency exchange.

Although the number of Iranian exchanges has increased with the boom of the cryptocurrency market, the same factors that we mentioned at the beginning are also useful in choosing a reliable Iranian exchange. Security, transaction fees, ease of use, number of coins offered, support for various blockchain networks all play a role in choosing the best digital currency exchange.

Iranian exchanges are centralized and divided into two categories: P2P and OTC.

New money is the best exchange OTC

New money exchange is an OTC digital currency exchange that offers more than 110 popular digital currencies and supports various blockchain networks (30 blockchain networks). This greatly facilitates the transfer of cryptocurrencies. If you are looking for a reliable cryptocurrency exchange and on the other hand, you want to keep the purchased assets in your wallet, it is better to go for an OTC exchange.

The authentication process in this exchange is very simple and fast. User levels in new money are divided into three levels: instant, fast and professional. At Instant levelIn just 30 seconds, the user will create his account without a name and only by registering the national code and will be able to trade currencies. This level is suitable for people who do not deal with Rials or do not want to be subject to the tax of transferring cryptocurrency to Rials.

At Fast levelBy providing national card and bank card information, the user can deposit cryptocurrencies and Rials directly to the exchange. At this level, only Riyal asset withdrawals are possible.

To become a user Professional level And it will be necessary to use all the facilities of the exchange, to complete the basic information form and to authenticate the image.

In the new money exchange, the fee for transferring assets to the wallet, including the network fee and the purchase fee, is generally more cost-effective than the peer-to-peer exchanges.

By using the new money exchange conversion function, you can use the swap function or exchange digital assets for other cryptocurrencies by paying a very small fee. In this exchange, it is possible to earn money from the referral code and participate in festivals and benefit from digital currency awards.

Nobitex is a peer-to-peer exchange

Nobitex exchange is one of the well-known exchanges in the field of cryptocurrency, which is a peer-to-peer market for digital currency transactions.

Peer-to-peer exchanges provide users with a dedicated wallet, again we recommend that you keep your assets in your own personal wallet.

Among the features of this P2P exchange, we can mention the ability to support loss limits and borrowing sales. The process of upgrading user levels in this exchange is very slow. Fees are high for casual users and it supports a much smaller number of tokens compared to other exchanges.

final word

As you can see, entering the volatile cryptocurrency market, despite all the risks it entails for users around the world, comes with more challenges for Iranian users. Therefore, it is better for Iranian users to pay enough attention to the points mentioned in this article when working with foreign exchanges. Be very careful when choosing a digital currency exchange and do not trust any exchange. In the end, note the important point that any exchange, both Iranian and foreign, is the only suitable place to make a transaction. The exchange is not the place where your assets are kept. It is better to keep your assets in a personal software or hardware wallet.