Like traditional exchanges, a crypto exchange is a place where one can buy and sell assets. The difference is noticeable: there will only be bought and sold of cryptocurrency on a crypto exchange. However, crypto can be bought using fiat currency such as the U.S Dollar.
The current prices of cryptocurrencies are reflected in the exchanges. The cryptocurrencies are also converted back into the U.S dollar or another currency or exchange and left as cash in the user’s account if the user wants to convert it back into the crypto or withdraw to his regular bank account.
Accessibility, Security, Fees, Liquidity, Coins offered, Storage, and Tax information are some of the things that should be considered in a crypto exchange.
Cryptocurrencies can be categorized into three parts: centralized, decentralized, and hybrid.
- Centralized Exchange: Centralized exchanges are the most common platforms for investors to buy and sell cryptocurrencies holdings. Private companies own centralized exchanges. Centralized exchanges are compliant with the regulatory authorities and need a license to operate.
Better user interface and onboarding, availability of customer support and insurance make the centralized exchange a good option for investors.
- Decentralized Exchange: Decentralized Exchange depends on smart contracts and operates without the interference of an intermediary. At the same time, Centralized exchanges are managed by a centralized organization like a bank, which is involved in financial services looking to gain some profit. On the contrary, decentralized exchanges enable users to trade directly from their wallets by interacting behind the trading platforms with smart contracts.
- Hybrid Exchanges: The hybrid exchanges encapsulates the best features of the centralized and decentralized exchange. They offer high liquidity and quick transactions of centralized exchanges and at the same time provide anonymity and protection provided by decentralized exchanges.
The Best Crypto Exchanges for 2022
- EagleFX– EagleFX is headquartered in Dominica. It is an award-winning STP brokerage that is used by thousands of traders around the globe. The exchange offers ultra-fast execution speeds and attractive ECN trading conditions. The company has also been recognized by famous publications like Forbes and Finance Magnates. Stocks, currency pairs, cryptocurrencies, commodities, and indices are exchange offerings.
EagleFX also received three awards in 2020 for “FX Broker With Best Withdrawal Options”, “Best Forex Broker”, and “Best ECN/STP Broker”. USD, BTC, GBP, and EUR are among the trading pairs offered by EagleFX.
- Bitfinex – Bitfinex is a gigantic cryptocurrency exchange that backs a large ecosystem of cryptocurrency products and has various trading options available, including derivatives, paper trading, spot trading and much more. Bitfinex is a one-stop for all your cryptocurrency.
The platform allows crypto beginners to test the platform risk-free with paper trading, and its mobile app is super easy to navigate.
Bitfinex is among the older cryptocurrency exchanges being introduced in 2012. Since its inception, the crypto exchange has led the cryptocurrency trading space. According to the coinmarketcap, Bitfinex is the 8th largest cryptocurrency exchange in the world by volume.
BTC, LUNA, ETH and SOL are among the trading pairs offered by Bitfinex exchange.
- FTX- FTX is a leading centralized exchange founded in 2018 by MIT graduate and Sam Bankman-Fried, former Jane Street Capital international exchange-traded funds trader.
FTX claims itself to be a crypto derivatives exchange. Derivatives, volatility products and leveraged tokens are the trading products offered by FTX.
FTX does not serve U.S residents as it is based in the Bahamas. However, they can trade on FTX instead.
FTX and FTX US have separate capital structures but overlapping management teams.
Trading pairs offered by the exchange include FTM, FTT, ETH, BNB, SOL.
- CoinBase- CoinBase is considered one of the best crypto exchanges for beginners since it has an easy-to-use interface, provides extensive educational material on everything related to crypto and has robust security features.
Coinbase urges its users to utilize comprehensive learning material through the Coinbase Earn Program, which teaches how to trade certain digital currencies and rewards users with free crypto.
Some of its benefits include a broad assortment of educational material, an Intuitive, user-friendly interface, an easy purchase process, and a wide selection of cryptocurrencies.
Coinbase offers trading pairs such as SOL, BTC, ETH, ATOM, and DOT.
- Binance– Founded in 2017, the Binance exchange is a leading cryptocurrency exchange formerly headquartered in Hong Kong. In 2018, in response to strict regulations imposed on crypto exchange businesses, it shifted its headquarters to Malta, EU.
Its primary focus is on altcoin trading. Binance offers traders 500 cryptocurrencies and virtual tokens. These include Litecoin (LTC), Dogecoin (DOGE), Bitcoin (BTC), Ether (ETH), and Binance Coin (BNB), its own token.
Highly affordable trade and conversion fees, High-speed trade execution and Advanced charting and data graphs are the unique features of Binance.
- Kraken- Kraken is a San-Francisco-based crypto exchange that facilitates stock trading. Participants are allowed to buy and sell using various currencies, including Canadian dollars, U.S. dollars, euros, and the Japanese yen.
Low fees for advanced traders and a large selection of digital assets are the features of the crypto exchange.
Kraken has around 130 trading pairs, including ETH, BTC and USDC. It offers more than 90 cryptocurrencies.
- Robinhood Crypto- A cryptocurrency exchange that hosts more than 13 million users, Robinhood Crypto has made a place for itself among young investors who want to explore the space. It offers cryptocurrency trading through an account with Robinhood Crypto. Robinhood has intuitive applications and supports crypto, stock, ETF, and more purchases.
2-step verification, cold Storage, SIPC coverage for an ETF, FDIC-insured USD balances, stock, and cash funds insurance against crypto platform breaches are some of the security features of the exchange.
Good cash management, recurring investments features, Low trading costs, access to fractional shares and cryptocurrency offerings are the areas where Robinhood shines.
- Crypto.com – Crypto.com is considered to be the best exchange for security as it provides multiple layers of protection against cyberattacks and crypto fraud.
The crypto exchange is ranked top in the Cybersecurity Ranking and Certification Platform’s top 100 Exchanges by Cybersecurity rating.
Low fees if the user account is funded with cash transfers, a large selection of crypto assets, and outstanding cybersecurity infrastructure are the benefits of Crypto.com.
Crypto.com ensures the security of the users on its trading platform using various techniques such as regulated custodian bank accounts for regular currency, offline cold Storage for all crypto, and software peer-review.
Crypto.com allows investors to trade in various trading pairs, including ETH, SOL, GALA, CRO and LUNA.
- Gemini- Founded in 2015 by Cameron and Tyler Winklevoss, Gemini is a crypto exchange that allows trading cryptocurrencies via mobile apps and websites. What makes it unique is its security and easy-to-navigate user interface. Gemini also has its own cryptocurrency called Gemini stable coin. Other than that, it offers over 40 cryptocurrencies, including BTC, ETH, LTC, BCH, ZEC and LINK.
Since its inception, it has added an interest-paying savings account and a payment app. Its owners have hinted at the launch of an initial public offering (IPO). A Gemini credit card is also in progress.
- eToro- eToro is an online brokerage offering stock trading and cryptocurrency trading. When it backed Bitcoin (BTC) on its CFD trading platform in 2014, it became one of the first online trading firms to support digital currency trading. Soon after, it added Ripple (XRP) and Ethereum (ETH) support.
Currently, it supports over 40 cryptocurrency CFDs on its popular online trading platform. In addition, for professional traders, it offers an enterprise-grade crypto exchange and a multi-currency crypto wallet.
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