Learning Center

Trading on Multiple Cryptocurrency Exchanges

kwa LCX Team · February 4, 2020

Trading on multiple cryptocurrency exchanges is complex. Cryptocurrency traders typically have multiple accounts on exchanges: exchanges for crypto to crypto trading, exchanges crypto to fiat trading, exchanges trading niche tokens, exchanges with arbitrage opportunities or bitcoin exchanges have large liquidity. So if you have multiple cryptocurrency trading accounts, how to track your portfolio in real time? how to execute trades on multiple crypto exchanges simultaneously?

What is the best cryptocurrency trading platform?

As per Coinmarketcap recent data, there are in total 261 digital asset exchanges listed. But that’s just a selected list, there are more trading platforms online and the number is growing due to a rise of digital asset tokens and cryptocurrencies. Right now, trading cryptocurrency offers a truly incredible potential, but it’s important to follow the basic rules of trading cryptocurrency. Traders can create accounts on multiple crypto exchanges, according to their choice and requirements of trading. For higher trading volumes or fiat-trading, most exchanges require a Know-Your-Customer (KYC) verification of the user, with every exchange having its own verification and security steps to be completed. While trading one cryptocurrency for another, a lot of factors have to be taken under consideration.

Current Difficulties while Trading On Multiple Crypto Exchanges

For instance, let’s consider the following scenario of an investment manager of a multi-million dollar crypto hedge fund. Every time he wants to make a trade on a particular exchange, he has to log-in with the account password that he had created at the time of sign-up and the security key or two-factor authentication (2FA). He trades on variety of digital assets, while offered trading-pairs vary on different platforms. The trader continuously tracks pricing of the tokens across several exchanges, does portfolio analysis or looks for arbitrage opportunities. Thus he either logs into the cryptocurrency exchange on different browser tabs and keeps the tabs open, or has several computers available. Furthermore, have to get themselves accustomed to different kinds of user interfaces which is complex. It would be simple and easy if he could perform these tasks on just one single interface, without switching here and there.

Arbitrage Opportunity

Comparing prices between exchanges in a volatile market across several trading platforms is an opportunity for arbitrage profits. How high could Ethereum go? What’s the most attractive Altcoins to invest? What’s the price of Bitcoin on different trading platforms? Price discrepancies between the rates of different bitcoin exchanges can be a great way for an advanced trader to generate revenue. Arbitrage opportunities exist for a very short duration, so the trader has to look for opportunities constantly over multiple exchanges. Even during a bear market, the price of less liquid tokens and altcoins jumps up and down multiple times a day, allowing traders to gain profits through arbitrage.

To achieve a positive result, many technical complexities are involved while implementing a highly secure technical execution for arbitrage strategies. First of all, you will need to have deposits on numerous exchanges. The availability of specialized hardware and software that incorporates exchanges interacting with them are not many. All transactions should be executed with a minimal delay in relation to each other. To prevent the destruction of profit earned while executing an arbitrage transaction, the risk of delays and failures or technical errors have to be minimized.

Trading fees on exchanges are different, some trading platforms offer zero or minimal trading fees others charge high fees on withdrawals or single transactions – it’s worth to compare trading fees to optimize profits of your cryptocurrency portfolio.

What are the biggest crypto exchanges? And what are the best cryptocurrency exchanges?

You can compare the cryptocurrency exchanges with the highest volumes, by usability to manage your digital asset portfolio or by additional added value services. Here are some of the most relevant cryptocurrency exchanges, also connected to LCX Terminal.

Binance: One of the largest cryptocurrency exchange by trading volume globally. Provides crypto to crypto trading of more than 500 cryptocurrency. Binance started in China but moved their legal headquarters to Malta in the European Union.

Liquid: Fully regulated crypto exchange headquartered in Japan. Liquid, formally known as Quoine, offer fiat to crypto trading as well as crypto to crypto trading pairs, largest trading volume in Japan.

Bitfinex: BitFinex is a trading venue offering 3 main products: a bitcoin to fiat exchange, a margin trading exchange and a liquidity provider. BitFinex’s team is also responsible for USD tether (USDT), the largest stablecoin by volume.

OKEX: OKEX is cryptocurrency ecosystem offering trading of crypto and fiat-backed tokens. OKEX also provides digital asset based futures with multiple leverage choices. For the professional traders OKEX provides a set of algorithmic trading tools. As basic offering OKEX provides a wallet, vault and a block explorer.

Bittrex: Bittrex is a premier US based blockchain platform. Bittrex was a early pioneer in the blockchain industry and grew liquidity, also offering a large number of trading pairs into bitcoin.

Kraken: Kraken is a top European based exchange and offers a variety of fiat to bitcoin pairs such as JPY, EUR, GBP and USD. In teamwork with Fidor Bank (Germany) Kraken provides instant settlement of Euro to crypto trading.

Coinbase Pro: Coinbase Pro is an US based exchange focusing on professional traders. Coinbase Pro is part of the larger coinbase ecosystem and product offering, e.g. a seamless integration of wallet, custody and exchange features. Coinbase has high standards of security practices combined with insurance on deposits.

Poloniex: A US based cryptocurrency exchange that offers over 100 bitcoin (BTC) markets available for trading. Poloniex is owned by Circle. Several technical analysis charts and live chat makes it is easy to stay abreast of news flow and analyse price trends before taking a position.

Introducing LCX Terminal - Advanced Crypto Trading Platform

LCX brings you a smooth and sophisticated trading desk, which will allow you to trade on several cryptocurrency exchanges on a single interface. Keep track of your digital currencies. Buy, sell and trade digital currency on one single interface. The APIs of major bitcoin exchanges are integrated with LCX Terminal in a single trading desk. This will be very helpful to work with multiple liquidity pools to minimize spread and slippage. How to manage your portfolio accross several crypto exchanges on a single interface?

Enjoy the most complete and easy-to-use platform to manage your cryptocurrency portfolio.

LCX Terminal bestows one-stop access to the top crypto exchanges namely Coinbase Pro, Bitfinex, Kraken, Bittrex, Binance, OKEx, and Poloniex. Many more exchanges are coming soon to make your trades more profitable. LCX offers you a professional portfolio management system with multiple exchange integration and advanced reporting tool. The positions of assets across wallets and exchanges can also be checked and accessed in real-time.

Enlightening some key features of LCX Terminal:

Determining the Rate of ROI

Categorize your investments and don’t miss out the longer picture. To effectively manage your returns, define and determine your rate of Return on Investments.

Algorithmic Trading

Say goodbye to manual trading! Programmable automated trading makes life simpler and easier even for a layman investor. The main advantage is speed and accuracy, as the algorithms are written in advance and are executed automatically. Another advantage of algorithmic trading is the ability to remove human emotions from the markets. LCX aims to provide the users with a great algorithmic trading experience soon.

Industry Grade Record-Keeping of Trading history

Obtain an interactive search and list of all your trades and fees. Also, group them by respective exchanges. You can automatically import with the help of APIs. No access to your exchanges will be required.

Professional Portfolio Management

Utilize interactive charts for trades and cryptos and know both your realized and unrealized gains. Calculation of key indicators will be of great help. Monitor your crypto portfolios easily in one place.

Cost basis information for Tax Reporting and Auditing

Analyze your trades and generate real-time reports on profit and loss, the value of your assets and capital gains and tax.

Tired of trading on multiple crypto exchanges?

Try LCX Terminal now

Benefits of LCX Terminal

Trade on a single trading desk instead of shifting from one exchange to the other by managing multiple exchanges.
Gain real-time insights into your whole digital asset portfolio and see performance charts on the Dashboard.
Execute instant and real-time orders directly to your exchange accounts through the Intuitive Trading Interface.
Compare crypto markets, discover arbitrage opportunities or track your watchlist by obtaining the Market Data Report.
Advanced charting and record-keeping of the transaction history and cost basis for your portfolio analysis and audit reporting through Detailed and Powerful Analytics Tools.
View your balances, history of transactions and your open orders from any account with Asset and Order Management.
Explore and analyze assets with integrated technical analysis and drawing tools on Professional Charts and Tradeviews.
Direct access to the most relevant crypto and blockchain news from the most relevant news sources.

With LCX Terminal in place, an active trader can connect to major cryptocurrency exchanges on a single desk, automate trading to minimize risk and maximize his returns. As a passive investor, one can invest beside pro traders with just a few clicks, index market to diversify investments and stay confident in your portfolio.

This clearly shows how LCX Terminal can make portfolio management a breeze, by linking multiple crypto exchanges in a single user interface. So, what are you waiting for? Sign up here to have hassle-free crypto trading experience.