Choosing the right Ethereum exchange is not an easy task. Crypto traders are often faced with plenty of options that are not liquid enough for their cryptocurrency trading needs. So, how to choose an Ethereum exchange among so many options out there? Well, with this article, we will explore the best options to buy Ether and where to trade it against other cryptocurrencies.
Go to CoinMarketCap And Select Ethereum
There is a way to do your own research regarding the best Ethereum exchanges at the current time. When you go to CoinMarketCap.com, you will see numerous different cryptocurrencies. It is easy to spot where Ethereum is in the list as ETH is almost always ranked second in the crypto rankings.
After you click Ethereum, find “Market Pairs.” You can select either Adjusted Volume or Reported Volume. It doesn’t matter. Here, you will see plenty of ETH pairs across different crypto exchanges.
But, here’s the problem. Most of the largest volumes on the above image are actually not “real.” There have been plenty of accusations regarding how smaller crypto exchanges use wash trading techniques to inflate their numbers. They are doing this, so their names would appear on the top of the list whenever someone tries to find the most liquid crypto exchanges.
Try To Find The Real Metrics
So, how do we know which ETH pairs and which crypto exchanges have the real numbers? Well, there are multiple ways to find out. One of them is to sort the crypto exchanges from the Liquidity metrics at CoinMarketCap.
Another method to filter bad exchanges from the good ones is to go to BTI.live.
Combine the information from the two links above and you will be able to see which crypto exchanges actually have real volumes and real traders. For example, Binance is ranked at number one position at BTI.live and number three at the Liquidity page of CMC. By having this information, you know Binance trading volume is legitimate and it’s doing much better than all the random crypto exchanges that you previously found from the first step above.
Search For The Trading Volume On Your Preferred Exchange
Then, go back to Ethereum markets on CoinMarketCap, and only “search” for exchanges that you believe is good enough from your research on point number 2 above. For example, let’s use Binance, because it is ranked first on BTI.live and third on the Liquidity page of CMC.
Now, go back to https://coinmarketcap.com/currencies/ethereum/markets/
Control+F on your browser and type “Binance”. You will find it on the list like this below image:
There, you can see the trading volume of Ethereum on this specific crypto exchange. As you can see from above example, Binance has $198,624,687 daily trading volume for ETH/USDT pair. If you are interested to buy Ethereum against USDT, you can just click the text “ETH/USDT”.
If you want to find the trading volume of other Ethereum pairs on the same exchange, just click the down arrow button on your search of “Binance,” and you will be able to find the next trading pair. Here’s what we found, for an example:
Here you can see ETH/BTC on Binance has a $42,993,012 daily trading volume. If you are interested in trading Ethereum against Bitcoin on Binance, just click the text “ETH/BTC.”
You can do the same with other exchanges. Just replace Binance with the other crypto exchange names on the search function of your browser. That’s it.
Register Your Account With The Crypto Exchange
Let’s just say now you have a list of 4-5 different cryptocurrency exchanges that you have chosen as your favourite Ethereum exchanges with the steps above. What you need to do next is to register an account with each one of them. Keep in mind that most of these exchanges are still centralized, which means you can only trade your Ether (to other cryptocurrencies or fiat currencies) after you register your account.
Preferred List Of Ethereum Exchange In 2020
If you believe the above research is a bit complicated and takes awfully of your time, you can check the preferred list below. According to the various researches by many crypto traders, these three exchanges provide the best trading opportunities and liquidities for buying and selling Ethereum.
- Binance – binance.com
The most popular cryptocurrency exchange in the world. It became popular in Q4 2017, and it has successfully maintained its first position in the sea of competition since then. For most crypto-to-crypto trading volume, Binance remains the king.
If you are interested to buy Ether on Binance, the biggest volumes for ETH trading pairs on Binance can be found on ETH/USDT, ETH/BTC, or ETH against other stablecoins. If you look at the first step above about checking volume CoinMarketCap, there might be some other exchanges with bigger trading volume than Binance for Ether pairs. Although usually, they have some wash trading numbers. Binance remains the best option if you want to trade ETH against BTC or against stablecoins.
- Coinbase – coinbase.com
While Coinbase might not have the biggest volume for Ether pairs, it is undoubtedly the best option to trade Ethereum directly against USD. If you already use Coinbase as your fiat on/off ramp to trade your US Dollars against Bitcoin, you might want to use Coinbase to buy Ethereum. The volume for ETH/EUR is also pretty decent here. Coinbase is typically known for being the largest fiat-to-crypto exchange, especially in the western world.
- Bitfinex – bitfinex.com
Some people might consider Bitfinex a little bit “controversial” due to their scandal with Tether and Crypto Capital. That being said, Bitfinex undoubtedly still has enough trading volumes for bigger cryptocurrencies. Bitfinex’s ETH/USD volume is more than $25 million. That alone is the evidence that many traders still trust Bitfinex despite the fact that it has received plenty of FUDs (fear, uncertainty, and doubts) in the past. Bitfinex’s ETH/USDT volume is also pretty huge, comparable to other trading pairs in the same exchange.
Ethereum is the second biggest cryptocurrency in the world, only bested by Bitcoin itself. For that reason, it is pretty easy to know how to choose an Ethereum exchange because all decent cryptocurrency exchanges have supported Ethereum. The only challenge here is to know which are the best exchanges out of those decent options.
Besides the three exchanges that are mentioned above, you can also do your own research with the above four steps. Good luck!