The world of cryptocurrencies is big and every day, a new coin or a new ICO gets on the horizon. It can be a very confusing place, especially for crypto newbies who entered the market after watching bitcoin get into $20,000 valuation. But the bubble of cryptocurrency is ready to burst.
This does not mean all coins will be valueless in the future. But there will be a consolidation in the industry. Post the consolidation the real value creators will prosper while others will perish. Getting into the world of bitcoin can be a little overwhelming. It all starts with swapping your fiat currency for bitcoin, the leading currency in the crypto world.
But where to exchange USD for XBT?
This is where Cryptocurrency exchanges come in handy. Some Exchanges are a pure sham while others deal only with cryptocurrencies and won’t accept USD or EUR. In this article we will compare two reputed exchanges, to help you figure out which one to use.
Kraken is a famous crypto exchange that is available in many countries including the USA. They swap fiat currencies like USD for cryptocurrency of your choice. It is an established player in the market. Kraken is based on San Francisco but focuses primarily on the European market. Though it started earlier, Kraken is now considered a middle tier exchange after the emergence of Asian giants like Binance. You can trade in 17 cryptocurrencies and 5 fiat currencies. Kraken is not allowed in Japan. They allow some level of leveraged trading. Kraken is the best place for beginners.
Bitmex is a Seychelles-based trading platform. It is available around the world with a few exceptions. Bitmex is more of a futures exchange that offers high leverage and thus high-risk trades. They offer 100x leverage on bitcoin trade and 50x on Ethereum. They accept only bitcoin for deposits and withdrawal and have a very limited set of currencies for trading. This is not a place for beginners. The high leverage trade is risky and novice traders could lose a lot of money, very quickly. Bitmex is not available for residents of the United States, Quebec and a few other countries.
Both the Exchanges are excellent from a security perspective. Kraken has never been hacked and Bitmex stores 100% of its funds in cold storage. It has not lost a single bitcoin due to intrusions or hacks.