Trust in crypto has never been this strong and pervasive as it is in today’s world, as the crypto fever traverses from one market to another, breaking barriers and setting new benchmarks.
Crypto has found a niche spot for itself in the global finance stage with a trillion dollar strong economy and an ever evolving infrastructure. Today, elections are being fought in its name and nations are competing to outdo each other in web3 development.
Needless to say, this craze is largely due to the crypto exchange platforms- the gateway to the world of crypto. These platforms facilitate billions of dollars worth of transactions every day and are accessed by millions of veterans as well as newbie crypto enthusiasts on a daily basis.
On a surface level, the objective of cryptocurrency exchanges is to serve as a facilitator in the buying and selling of cryptocurrencies. However, there are several nuances attached to the dynamics of crypto exchanges and it is advisable for every investor to understand them before taking a plunge in the highly volatile crypto market.
In this article, we will talk about cryptocurrency exchanges, their evolution through the years, and what criteria to ensure before selecting the best platform for you as an investor. We will also discuss a list of the top five crypto platforms for you to consider.
What are cryptocurrency exchanges?
Cryptocurrency exchanges are virtual marketplaces where users can trade various cryptocurrencies with the option of purchasing and selling them with fiat currencies. Crypto exchanges maintain liquidity on their platform and provide 24/7 seamless service to customers for a fee. The exchanges act as an intermediary between buyers and sellers, matching their orders to execute trades, just like traditional top brokeri markets.
How are Crypto exchanges different from stock exchanges?
Needless to say, crypto exchanges deal in cryptocurrencies and stock exchanges deal in stocks of companies listed. But unlike traditional stock markets and other market platforms, crypto exchanges work on a 24/7, virtual basis, allowing traders from all time zones to interact with each other and maintain liquidity in the market.
What are the different kinds of crypto exchanges?
- Centralized Exchanges: Centralized exchanges are operated by a single source and users are given access to a range of cryptocurrencies to trade in for a fee. Eg Binance.
- Decentralized Exchanges: Decentralized exchanges operate on blockchain technology, allowing users to trade directly with one another without the need for a central, pivotal authority. Eg, Uniswap.
How to choose the right crypto exchange?
Choosing the right crypto exchange, tailored to your requirements, is critical for the success of your investments. Therefore, one must clearly understand the advantages and disadvantages associated with every popular exchange before making their decision.
A few points you can consider while choosing the right platform for you.
- Security Features: The safety of your crypto assets are of paramount importance to you so naturally, you must go for an exchange that boasts of a robust security infrastructure which is immune to cyber attacks and other nefarious incidents.
- Attractive Offers and Fees: Many crypto exchanges offer lucrative rewards to first time registered users and often charge competitive fees for their service. Do check out the latest offers at each platform before making a call.
- User Interface: Another necessary prerequisite for choosing an exchange is its seamless user interface where customers can get live information on currencies, exchange rates, market tips, FAQs, and easy to understand features.
- Legal Framework: Before choosing any exchange, it is expected of investors to be aware of their local laws related to crypto and confirm whether any exchange is blacklisted by their country’s central bank or government.
Top Five Crypto Exchanges
This is not an exhaustive list of crypto exchanges available on the internet but a tailormade list of top five exchanges owing to their popularity and features.
- Binance: The world’s biggest crypto exchange, Binance is the first choice for many investors worldwide who prefer it for its user-friendly interface, advanced trading features and high liquidity. As of August 2022, Binance had a daily trading volume of $76 billion and had 90 million customers worldwide. It’s a centralized exchange.
- Coinbase: Another centralized exchange, Coinbase is a popular choice for many investors due to its easily accessible interface even for beginners and regulatory compliance. The platform is available in over 100 countries and deals in over 150 crypto assets.
- Bybit: With 30 million visitors registered every month, Bybit is a popular crypto exchange which has over 100 crypto tokens listed and 300 spot trading pairs.
- HTX: Another widely popular crypto exchange, HTX is available in over 100 countries and it has the most exhaustive list of crypto assets available-over 500 assets and 300 trading pairs.
- Gate.IO: Gate.io is an extremely popular, centralized crypto exchange that sees $12 Billion trade on a daily basis. It boasts of a user friendly UI and 24/7 customer support.
Conclusion:
Choosing the right crypto exchange is necessary for a successful investment in crypto. Every platform is different from the other and has various features that are tailor made to suit different investors’ needs. Therefore, it is always advised to conduct research before choosing the right exchange.
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