Mongolia is not talked about much when discussing the cryptocurrency scene in various countries. This is interesting considering that it is one of the few countries where cryptocurrency and trading in them are legal. In fact, this land-locked nation used to be a huge crypto mining hub some time back.
Mongolia’s cold weather and cheap electricity in the country had provided an ideal environment for crypto mining. It was reported in 2019 that Mongolia was one of the few countries along with Sweden and the US where crypto miners could still generate profits.
Mongolians wary of sky-high prices and a weak fiat currency find cryptocurrency to be a lucrative investment. This is demonstrated by the mere existence of the Inflation Hedging Coin(IHC) in Mongolia. The first cryptocurrency to be issued in the country was ArdCoin in 2019 which still continues to be popular among Mongolian traders.
Mongolians mainly use cryptocurrency as a means of investment and a fast and convenient method of receiving and sending money abroad. To cater to the growing crypto trading community in the country, several cryptocurrency exchanges have started offering their services in Mongolia.
In this guide, you will learn about some such exchanges and their key products and services. This will help you in making a knowledgeable decision regarding the place where you should trade cryptocurrency.
Top 6 Cryptocurrency Exchanges in Mongolia
Binance
Cryptocurrency traders have a lot to choose from at Binance. It is an exchange where you can buy, trade and sell 350+ cryptocurrencies at prices lower than 0.1%. Sounds good? Wait, there’s more. In addition to spot trading, Binance supports margin and P2P trading, swap farming, and derivatives trading and also offers OTC services.
On Binance, you can put your idle assets to work and earn handsome rewards on the same. Its strategy trading feature enables you to automate your spot trades and replicate trending strategies to trade like a pro.
Binance also offers premium solutions for institutions including asset management and custody services and rebates for trading in its spot and futures markets. Further, you can get loans secured by your crypto assets on Binance and even send customized crypto gift cards to people.
Features
✔️More than 350 cryptocurrencies available
✔️Largest cryptocurrency exchange
✔️Binance’s native token is BNB Coin
✔️Supports spot, margin and derivatives trading
Pros and Cons
✅Great coin selection ❌Overwhelming for beginners
✅Several order types supported ❌Legal problems in several places
✅Automated spot trades ❌Past incidents of hacking
✅Institutional accounts
✅Crypto gift cards
Trading Fees
Binance charges trading fees as per the 30-day trading volume measured in BUSD. There are different VIP levels and users can get 25% off on the maker and taker fees by using BNB for transactions.
Trading fees for Binance
Customer Reviews
Users find Binance to be safe for trading
Binance can be complicated to use
Why We Picked It
Binance has a lot to offer to both individual and institutional investors. There is a wide variety of cryptocurrencies available at a low cost, several order types and earning opportunities. Binance also has a native coin which can be used to get discounts on the fees paid.
Coinbase
If you find Binance a tad bit complicated, check out Coinbase. It is perhaps the easiest place to buy and sell cryptocurrency. Just sign up, get your KYC verified and click on that ‘Buy/Sell’ button. No need to get caught up in trying to figure out the difference between different types of orders.
However, if you do want to know about it, Coinbase has you covered on that front. Hop over to the Learn section to increase your cryptocurrency knowledge and maybe even win some crypto rewards in return.
Coinbase also offers solutions for institutional investors including access to 350+ different pairs for trading and dedicated execution consultancy services.
Features
✔️Over 200 cryptocurrencies available
✔️Second-largest cryptocurrency exchange
✔️Two versions- Basic and Pro
✔️Consultancy services for institutional investors
Pros and Cons
✅Publicly traded company ❌Costly trades on basic version
✅Mandatory KYC verification ❌Customer service not up-to-the-mark
✅Low fees on Coinbase Pro
✅Learn to Earn feature
Trading Fees
Fees on the Coinbase Basic platform are determined by dynamic factors such as market conditions, order size and payment method. Coinbase Pro, however, follows the maker-taker model.
Trading fees for Coinbase
Customer Reviews
Coinbase offers a seamless trading experience
There can be problems on Coinbase such as high network fees
Why We Picked It
Coinbase is a transparent and reliable platform with a decent coin collection. It has one of the most beginner-friendly interfaces and a mobile app with all the functionalities of the web version.
Kraken
Kraken has been in the crypto business for more than a decade and is still going strong. This San Francisco-based exchange offers you over 200 cryptocurrencies for trading at dynamic prices. If you are looking to stake your assets, you should check out Kraken where you can earn as much as 24% annual rewards on your assets.
Its low spreads help you lower your average cost per trade and its high liquidity means you can conveniently execute large volume trades at stable prices. Along with spot, margin and futures trading, Kraken also features cryptocurrency indices and OTC services.
If you want to deepen your understanding of cryptocurrency and stay up-to-date with the latest happenings in the crypto world, look no further than Kraken. It has a blog where you can catch up on the latest happenings, individual crypto guides, videos and a dedicated cryptocurrency podcast.
Features
✔️More than 200 cryptocurrencies available
✔️Two versions- Basic and Pro
✔️Spot, margin and futures trading supported
✔️Cryptocurrency indices available
Pros and Cons
✅Satisfactory crypto collection ❌Costly trades on basic version
✅KYC verification mandatory ❌Reports of accounts being hacked
✅Asset staking opportunities
✅High liquidity
✅Extensive learning resources
Trading Fees
While Kraken Instant Buy has dynamic pricing based on factors like order size, types of assets and payment method, Kraken Pro simply uses the maker-taker model.
Trading fees for Kraken Instant Buy
Trading fees for Kraken Pro
Customer Reviews
Kraken’s customer service is helpful
Users find their accounts closed on Kraken
Why We Picked It
Kraken is an old and stable platform with high liquidity. Executing large-volume trades is, therefore, a breeze on it. Kraken offers many services notably including cryptocurrency indices and OTC services. It also features extensive resources for learning about cryptocurrency.
Bybit
Bybit is a relatively new entrant in the crypto industry but has quickly climbed the charts to become one of the most popular cryptocurrency exchanges. While it does offer spot trading, its main focus is on derivatives trading. It primarily has two types of contracts- USDT Perpetual and inverse futures.
Bybit’s One-Click Buy feature enables traders to buy the cryptocurrency of their choice with a single click via their debit card, credit card or bank transfer. It also facilitates P2P trades for people who prefer directly trading crypto with each other.
Apart from that, the exchange offers a Bybit card that can be used to make payments at several locations with your cryptocurrency directly from your Bybit account.
Features
✔️Concentrates on derivatives trading
✔️270+ spot assets available
✔️One-Click Buy feature
✔️P2P trading available
Pros and Cons
✅Beginner-friendly interface ❌Trading data not verified
✅Multi-lingual exchange ❌Fails to communicate risk of derivatives
✅Testnet site for demo trading trading
✅Advanced trading features
available
Trading Fees
Users at different VIP levels are charged trading fees as per the maker-taker system. The highest rate is 0.1%/0.1% for non-VIP users and the fees keep on decreasing for subsequent levels.
Trading fees for Bybit
Customer Reviews
Bybit has a good range of trading pairs and an excellent UI
User accounts are sometimes locked on Bybit
Why We Picked It
Bybit offers several tools suitable for both beginners and advanced traders. The fees here are low and the VIP program provides several perks and benefits to users. Further, Bybit encourages the development of a global crypto community by offering its services in multiple languages.
Bitstamp
Bitstamp is one of the oldest cryptocurrency exchanges still in existence. Registered in Luxembourg, it was initially developed as a European alternative to the then-dominant exchange Mt.Gox but is now available globally.
Bitstamp is a simple platform and what it lacks in terms of features, it makes up in terms of security and reliability. It has a whopping 50 licenses and certifications and is registered as a payment institution in Luxembourg.
Bitstamp is quite transparent about the fees it takes for different types of transactions and there are no hidden charges. It follows the maker-taker model and all the information about different trading expenses are easily available on its website.
Features
✔️One of the oldest cryptocurrency exchanges
✔️82 cryptocurrencies available
✔️Supports fiat currency deposits and withdrawals
✔️Multi-factor authentication(MFA) for security
Pros and Cons
✅Licensed platform ❌Limited cryptocurrencies available
✅Compulsory KYC verification ❌Does not support margin trading
✅Competitive trading fees ❌Only two assets for staking
✅Easy to use exchange
Trading Fees
Low-volume trades below $1,000 are free on Bitstamp. Beyond that, the maker/taker fees start at 0.30%/0.40% which keeps decreasing as the trading volume increases.
Trading fees for Bitstamp
Customer Reviews
Bistamp is a trusted and KYC-compliant exchange
Users have faced problems with withdrawals on Bitstamp
Why We Picked It
Bitstamp is a well-known and trusted cryptocurrency exchange. It is easy-to-use and therefore, perfect for beginner traders. The fees here are standard and there are no hidden charges. It is a duly licensed exchange and also allows deposits and withdrawals in fiat currencies.
Nexo
Nexo is a centralized cryptocurrency exchange that was launched in 2018. Among a sea of similar platforms, it has distinguished itself with its unique value-add feature that allows users to unlock the value of their crypto without having to sell it.
Nexo is a heavily regulated platform and has obtained licenses from relevant authorities in different states in the USA, Australia, Seychelles, Poland, Italy, etc. While it does not have the widest collection of cryptocurrencies, it makes up for that with its robust security system.
Nexo enables 2-factor authentication(2FA) via SMS, e-mail as well as authenticator apps. You can also set up biometric identification so that no one else can access your account. You are also provided with regular log-in alerts and withdrawal confirmations to flag suspicious activity as quickly as possible.
Features
✔️60+ digital assets available
✔️KYC-compliant exchange
✔️Smart routing system
✔️2FA for security
Pros and Cons
✅No lock-in period ❌Fewer benefits without Nexo token
✅Non-custodial Nexo wallet ❌Complicated loyalty program
✅No fees on basic version
✅Earning opportunities
Trading Fees
Nexo does not charge any fees for trades on its basic version. Users can make unlimited trades upto $250,000 per trade. On Nexo Pro, the maker-taker model is used for determining fees.
Trading fees for Nexo Pro
Customer Reviews
Nexo has good customer service
Transaction settlement can be slow on Nexo
Why We Picked It
Nexo has interesting features and a robust security system. It supports crypto borrowing and lending, has zero fees on the basic platform and offers a loyalty program for users. There is also a non-custodial Nexo wallet for exploring Web3.
Top 6 Decentralized Exchanges in Mongolia
UniSwap
Decentralized exchanges used to be somewhat of a niche but UniSwap managed to become popular among the mainstream crypto community. This is, to a large extent, due to its beginner-friendly interface which even casual crypto traders can easily navigate.
Developed with the help of the Ethereum Foundation, UniSwap has a number of ERC-20 tokens available for trading. This makes it an attractive and convenient option for trading since users do not have to go through the hassle of KYC verification here.
UniSwap is built on the foundation of community governance where it is essentially the community which decides the future of the platform. Users who hold UNI tokens can vote on proposals related to the governance of the network which are then implemented as per the community’s wishes.
Features
✔️Built on the Ethereum network
✔️Uses Automated Market Maker(AMM) system
✔️Native token UNI
✔️Voting on governance proposals by the community
Pros and Cons
✅No KYC needed ❌No official customer support system
✅Access to ERC-20 tokens
✅Compatibility with major crypto
wallets
✅Highly liquid platform
Trading Fees
UniSwap has three main tiers for pool fees- 0.05%, 0.30% and 1%. A new fee level of 0.01% was added in 2021.
Trading fees for UniSwap
Customer Reviews
UniSwap is a fine decentralized exchange
UniSwap has no mechanism for grievance redressal
Why We Picked It
UniSwap is a popular decentralized exchange with high liquidity. It gives you access to a wide variety of ERC-20 tokens without the hassle of KYC verification. UniSwap can be used with any major crypto wallet such as Metamask.
PancakeSwap
PancakeSwap is quite similar to UniSwap at a foundational level though they differ in several other areas. For instance, PancakeSwap does not run on Ethereum but on the BNB Chain. Therefore, it primarily deals in BEP-20 tokens though it supports a few ERC-20 tokens as well.
PancakeSwap is committed to its food-based theme which is reflected in the nomenclature of its key products. Its native token is CAKE which can be staked in syrup pools. There are Initial Farm Offerings(IFOs) where users can get early access to newly-listed tokens.
With its newly-released v3, PancakeSwap has improved its capital efficiency and promises lower slippage than before for traders. It has also introduced four tiers with extremely low fees as compared to PancakeSwap v2’s single 0.25% fee rate.
Features
✔️Built on the BNB Chain
✔️Uses Automated Market Maker
✔️Four tiers for pool fees
✔️Native token CAKE
Pros and Cons
✅Access to BEP-20 tokens ❌No vetting of coins
✅Innovative products ❌Phishing scams
✅Trading with privacy
✅IFOs for access to new tokens
Trading Fees
PancakeSwap’s newly-launched v3 has four trading fee tiers- 0.01%, 0.05%, 0.25% and 1%. The majority share of the fee collected goes to the liquidity providers.
Trading fees for PancakeSwap
Customer Reviews
PancakeSwap is a reliable DeFi platform
PancakeSwap does not vet coins before listing
Why We Picked It
PancakeSwap does not face the problems that Ethereum-based exchanges face. The fees here are among the lowest in the industry and there are a lot of innovative products for you to choose from.
Bisq
Bisq is as decentralized as a platform can get. It is a purely peer-to-peer exchange where there are just crypto buyers and sellers and no one else. In fact, it is not even a corporation per se. Bisq is instead a free software under GNU Affero General Public License.
Rather than going to a website and connecting a crypto wallet, you need to install the software on your computer to use Bisq. Its servers are located in several locations globally so a loss due to a central failure is not possible.
However, you need to remember that on Bisq you are responsible for your own safety. You are responsible for the security of your assets and should be wary of possible scams on the platform since it would be nearly impossible to recover the crypto assets once they are lost.
Features
✔️Downloadable computer application
✔️Globally scattered servers
✔️Native token BSQ
Pros and Cons
✅Completely P2P platform ❌Not many resources for learning
✅Central failure not possible ❌Only BTC and BSQ accepted for fees
✅User control over private keys
✅Community-driven exchange
Trading Fees
BTC or BSQ is compulsorily needed for trading on Bisq. The combined fee rate is 1.1% in the case of BTC and 0.55% in the case of BSQ
Trading fees for Bisq
Customer Reviews
There is no need for registration on Bisq
Bisq does not have the best UI
Why We Picked It
Bisq is the way to go if you want a completely decentralized platform. It is entirely community-driven and deals purely in cryptocurrency. Nothing more nothing less. There are no geographical restrictions on using Bisq and anyone with a computer can use it.
Changelly
Launched in 2015, Changelly is a non-custodial exchange for cryptocurrency trading. It has 500+ crypto assets listed which makes it a good option for people whose first priority while choosing a platform is the number of assets it hosts.
Apart from fiat-to-fiat trades, Changelly also supports fiat-to-crypto trades. You can directly buy cryptocurrency with the United States Dollar(USD), the British Pound(GBP) and the Euro(EUR) though the fees can be high for the same.
Changelly also facilitates anonymous trading since it does not need any sort of identity verification for trading. The only thing you need to trade is an e-mail address and a crypto wallet and you are good to go. However, you may need to provide more personal information for paying with fiat currencies.
Features
✔️Non-custodial exchange
✔️500+ cryptocurrencies available
✔️Has two types of fee rates- fixed and floating
✔️Partnership with Trust Wallet
Pros and Cons
✅Ease of use
✅No KYC needed ❌High fees for fiat-to-crypto exchanges
✅Diverse coin collection ❌Floating rate system can be complicated
✅Supports fiat-to-crypto and
crypto-to-crypto trades
Trading Fees
Changelly has floating fixed rates for fees. The fixed rate remains unchanging while the floating rate can change while the transaction is being processed.
Trading fees for Changelly
Customer Reviews
Changelly is an easily navigable platform
Funds can get locked on Changelly
Why We Picked It
Changelly lets you retain control of your assets and private keys. No identifying information is needed to trade the vast variety of cryptocurrencies available on the platform.
Curve Finance
For Curve Finance, stability is supreme. That is why, this decentralized exchange which specializes in stablecoin trading, is a bastion of stability in a sea of unpredictable platforms.
If you want to invest in stablecoins at a relatively low-risk platform, Curve Finance is the go-to place. Since it does not have a central order book, it utilizes the Automated Market Maker protocol which is a collection of smart contracts to facilitate trading on the platform.
These smart contracts automate the process by using algorithms to price the assets in a liquidity pool. Curve Finance also has a native token CRV. It plays a major role in the development of the platform as CRV holders are the ones who vote on proposals related to the platform.
Features
✔️Built on the Ethereum network
✔️Employs Automated Market Maker
✔️Provides liquidity for stablecoins
✔️Native token CRV
Pros and Cons
✅Low-risk exchange ❌Not suitable for beginners
✅Compatible with multiple
blockchains
✅Community governance by
CRV holders
Trading Fees
Fees for liquidity pools on Curve Finance can be between 0.04% to 0.4%.
Trading fees for Curve Finance
Why We Picked It
Curve Finance is a stable platform where algorithms price the assets in a liquidity pool. There are lesser chances of price manipulation and you can earn healthy sums in the short and long term via its liquidity pools.
DODO
DODO is a relatively new entrant in the decentralized crypto exchange space. While it is another Ethereum-based exchange, its use of the Proactive Market Maker system differentiates it from its contemporaries. This helps DODO provide better pricing to users as its oracles mimic human trading.
You can use Initial DODO Offerings(IDOs) to easily list tokens at a negligible cost. There are also no minimum deposit requirements to become a liquidity provider which has helped in making DODO a more inclusive exchange.
Features
✔️Built on the Ethereum network
✔️Uses Proactive Market Maker
✔️Native token DODO Coin
Pros and Cons
✅Cross-chain trading allowed ❌No fiat currency can be used
✅Nearly free listing of tokens
✅No minimum deposit needed
✅Liberty to create liquidity market
Trading Fees
Trading fees for DODO
Why We Picked It
DODO has low slippage and pretty much no possibility of impermanent loss. Its oracles help to provide the best possible price. Anyone can create a liquidity market on DODO and the listing of tokens is a simple and cost-effective process here.
Is Cryptocurrency Legal in Mongolia?
Yes, cryptocurrency and cryptocurrency trading are legal in Mongolia. The Law of Mongolia on Virtual Property Service Providers(VPSPs) which legalized cryptocurrency exchanges came into force in 2021. This law has helped create a proper legal framework for regulating crypto trading in the country.
Therefore, beginning December 2021, VPSPs in Mongolia were brought under the authority of the Financial Regulatory Commission. Among other things, cryptocurrency exchanges operating in Mongolia now need to register and obtain a special license before starting operations there.
Conclusion
Mongolians are increasingly turning towards cryptocurrency to counter the pressures of inflation and a falling tughrik. From a time when people did not even know about cryptocurrency to now when VPSPs can legally operate in the country, Mongolia has come a long way as far as cryptocurrency trading is concerned.
This is reflected by the number of cryptocurrency exchanges that have set up shop in the country. This guide provides you with information about some reputable exchanges in Mongolia but do not treat it as a substitute for professional advice. Consult a qualified professional for advice before investing money in cryptocurrencies.