Considering the sheer volatility of the crypto markets, trading cryptocurrencies is somewhat of a risky endeavor itself. However, as a very nascent industry, volatility is one of the few concerns that many retail crypto traders and users have to deal with. One other concern that’s bound to come up from time to time is issues that stem from the management of crypto exchanges.
When it comes to trust, it’s crucial in the crypto world. After all, this is a space where people are putting their money on the line. Unfortunately, as one might expect, this trust can be breached from time to time, be it from hacks stemming from poor protection of users’ funds, or in the recent case of FTX, poor management of customer funds.
So if you do choose to trade somewhere and you know that issues are bound to happen from time to time, what can you do? One must exercise caution while selecting an exchange, so as to choose the best and safest platforms.
How Picking The Right Platform Can Save You Capital
The importance of picking the right platform can never be overstated. Being the owner of your funds, safety and liquidity should be your top priorities. As stated earlier, even the best platforms can go through minor or major issues from time to time. One of such platforms that has recently been the biggest news across the cryptocurrency industry is FTX.
FTX has been a go-to platform for trading digital assets for years due to its status as one of the world’s leading cryptocurrency exchanges. However, the exchange is currently facing allegations of misappropriation of customer funds, leading to a huge number of withdrawal requests from users. Withdrawals have now been mostly suspended because of the huge liquidity crunch.
The Safest FTX Alternatives For Crypto Trading
FTX is currently working on ways to resume full withdrawals for its userbase, but there’s no denying that bouncing back will be very tough, with many even believing a total collapse is on the horizon. In the meantime, here are some of the best alternatives you can look at.
Binance
Founded in 2017 by a Chinese-Canadian named Changpeng Zhao, Binance is now home to the biggest crypto exchange in the world in terms of volume. They are known for having one of the most competitive fees in the industry. Binance also offers a wide range of features, including margin trading, which allows you to borrow money from the exchange to trade with.
Binance has been in the spotlight throughout the recent FTX debacle. Recently, the exchange announced that it was considering buying FTX to help ease its liquidity issues, but then withdrew its offer. You can also trace the early part of the FTX saga to Binance’s announcement that it would liquidate its $2 billion worth of FTT holdings.
Although Binance has been subject to various hacks and security breaches in the past, they are still one of the best exchanges around.
PrimeXBT
PrimeXBT stands out as a platform that has never been involved in a scandal, hack, or any other type of negative activity. In fact, the platform has repeatedly been honored with industry awards, with the most recent being the Most Trusted Crypto-Asset Trading Platform from Crypto Expo Dubai. Clearly, trust is not an issue with PrimeXBT.
Outside of its glowing reputation, the company is mostly known for its large list of trading instruments that include crypto, stock indices, commodities, and forex, or for the Covesting copy trading module. The relationship with Covesting is especially notable, as the fintech firm is regulated and licensed in Europe.
More than 100 different trading instruments are offered under one roof, allowing traders to diversify their portfolio and build strategic hedge positions. Leveraged long and short trading enables total control over the market. A wide range of risk management tools are also included to help discourage losses and protect profits.
There is also a free smartphone app available for Android and iOS devices where users can manage positions and their portfolio while on the go, or buy crypto to use as collateral to access one of the many cryptocurrency-based products and services. Users get access to everything from educational tools, weekly trading competitions, yield accounts, and much more.
ByBit
ByBit is undeniably one of the top choices available to anyone looking for FTX alternatives. Established in 2018, ByBit offers high-speed spot and perpetual contracts trading with impressive liquidity.
Plus, it’s been designed with safety in mind, which is why the platform also takes pride in being one of the few crypto exchanges whose security has never been compromised. Therefore, you can have peace of mind knowing that your money is always safe.
In terms of features, ByBit has everything from NFTs to crypto loans, leveraged tokens, options and more. Across the cryptocurrency community, it is primarily popular for its perpetual swap contracts.
Summary
For the past few years, the entire crypto industry has been the focus of various probes from governments and central authorities looking to regulate the decentralized space. As a new and budding industry, the collapse of a dominant player like FTX is detrimental for all participants, as it jeopardizes trust in crypto exchanges and provides regulators with additional motivation to intervene.
Notwithstanding, there are other exchanges that have made their names as safer alternatives. All of these exchanges mentioned above are reliable and have been around for a while. So if you’re looking for an alternative to FTX, be sure to check them out.
