People are becoming increasingly interested in cryptocurrencies, from financial institutions to individual investors. To join in this movement, you’ll need a crypto exchange account that allows you to purchase and sell digital currency. You can set up an account where you can place various order types to buy and sell in the cryptocurrency market. Centralized crypto exchanges (CEX) are platforms managed by a central entity. Users can transfer their fiat cash, such as dollars, directly into cryptocurrency on centralized exchanges, making it simple to get started with cryptocurrency trading.
What factors can you consider when choosing a CEX?
Security
Crypto has become a major target for hackers as it has increased in popularity and value. Spreading your cryptocurrency purchases over various exchanges can help you reduce your risk. Also, you can move your crypto holdings out of an exchange’s default wallet and into your own private cold wallet.
Coins available
Consider the types of cryptocurrencies that are available on a certain exchange. Using a crypto exchange that just trades a few coins might be sufficient. If you’re a crypto enthusiast, however, you might want to have more coins within reach.
Volume of trade
The purpose of ensuring sufficient trading volume in your target coins is to ensure liquidity, which allows you to trade your coins effortlessly. Low-volume markets may result in losses associated with slippages. Slippage occurs when you place an order when liquidity is low. This means you can end up paying more for a coin or selling it for less than you expected.
Trading fees
Trading costs may be charged as a flat percentage of the amount of cryptocurrency you purchase or sell, or an exchange may charge a varied proportion depending on whether your order is a maker or a taker. Some companies charge a spread instead of an upfront fee, which might be more expensive. Ensure you do thorough research on all applicable fees.
Educational materials
If you’re new to cryptocurrencies, you will want to look for a simple platform with plenty of educational tools to help you navigate this complex, rapidly evolving market.
Accessibility
Ensure that the exchange is available in your country. Many state and federal governments are still working out how to address cryptocurrencies in terms of policies and taxation.
CEX crypto projects
Binance
Binance is a popular cryptocurrency exchange that was established in 2017. It supports over 500 cryptocurrencies and virtual tokens for crypto-to-crypto trade. What’s more, it charges some of the lowest transaction costs in the space.
The exchange supports three types of trade orders: limit, market, and stop-limit orders. Deposits of bitcoin or funds are free of charge. Withdrawals, on the other hand, are subject to a transaction fee that varies depending on the coin and amount.
The platform’s internal token is Binance Coin (BNB). It’s utilized on the Binance exchange to make crypto trading easier. It enjoys plenty of liquidity, and users who pay with BNB cryptocurrency tokens get discounts.
Coinbase
Coinbase is a cryptocurrency trading and investment website that lets users buy, sell, and trade over 100 different cryptocurrencies. It’s a big platform, with more than 89 million members and $278 billion in assets.
For simple buy and sell orders, beginners will likely prefer the original Coinbase platform. Coinbase Pro, which is available to all Coinbase users, gives advanced users access to extra tools and order types. Coinbase displays the current price and trends for cryptocurrencies, as well as your cryptocurrency portfolio and industry news. It is accessible via the web and on mobile devices running Android and iOS.
Kraken
Kraken is an exchange that provides people and organizations in over 200 countries with a variety of investment possibilities. More than 90 coins are supported by this investment app. Kraken provides a variety of additional services, which include account management, one-on-one consultation services, OTC trading, and expert market insights.
There’s also a websockets API for real-time market alerts, staking incentives, public key support, and offline cold storage for your crypto assets. Kraken employs two-factor authentication, real-time monitoring for suspicious behavior, email confirmations for account withdrawals, and much more, in addition to its global security team.
eToro
eToro is a unique, all-in-one copy-trading platform that is widely used by traders. eToro’s popular online trading platform supports more than 40 cryptocurrencies, as well as an enterprise-grade crypto exchange for professional traders and a multicurrency crypto wallet.
Customers can deposit fiat currency from a debit card or bank account and start trading right away using eToro’s easy web-based platform and well-designed mobile app. Users can view current prices and buy, sell, or convert cryptocurrency using the simple “Trading” tab. eToro is perhaps most known for its social trading feature, which allows users to imitate elite traders’ portfolio holdings and trades.
Crypto.com
Crypto.com is a cryptocurrency exchange that offers services like trading, investment, staking, wallets, and non-fungible tokens (NFTs). This exchange supports over 250 different currencies, low fees, and discounts for individuals who have a large position in Crypto.com’s native coin, CRO. Its ecosystem of crypto-related items may be a suitable fit for people trying to get the most out of their holdings.
It offers a mobile app that is compatible with both Android and iOS smartphones. You may instantly check your portfolio and a list of popular assets using the Crypto.com app. However, it has charting features that are basic and don’t provide a lot of information.
Gemini
Gemini is an exchange that spans more than 60 countries. Like other digital currency exchanges, it allows users to purchase and sell a wide range of digital currencies using either digital or fiat currency.
Gemini offers a wide selection of solutions for both novice and experienced traders, including charting and quick trades. Gemini’s Active Trader Platform caters to advanced traders. Advanced charting, different order types, auctions, and block trading are all available on this platform.
Gemini Custody is a crypto-native finance platform as well as a cold storage mechanism for assets. The custody product is unique in that it includes a $200 million insurance policy covering crypto holdings.
Summary
With cryptocurrencies gaining mass adoption the world over, more and more investors are looking to get into the space. The easiest way to own a crypto asset is to purchase it on a centralized exchange, of which there are plenty. However, when it comes to the breadth of features, the platforms we’ve discussed take the crown.
