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Cryptocurrency exchanges are online platforms where you can buy, trade and sell cryptocurrency. However, different exchanges of cryptocurrency may serve different purposes and, depending on the person, an exchange may be necessary for very different reasons.
With the market so big, it is important to do your research and find the best exchange for you. The important factors to consider are the market commissions, the volume, the liquidity and the security protocol of each specific exchange.
The cryptocurrency space is filled with over 200 exchanges, each with its own unique characteristics and styles. Some offer gateways to exchange currency for Bitcoin and other similar cryptocurrencies, while others offer cryptocurrencies to be traded in pairs with Ethereum, USD-Tether and many others.
Centralized vs. decentralized
A centralized exchange of cryptocurrency is an exchange that acts as a third party to help carry out transactions. Traders must rely on the exchange to act as intermediaries in the management of their resources. They are seen to be much more reliable and user-friendly for beginners. They offer security that can not be provided on their own and operators are able to trust the exchange that will make a transaction specifically requested without complications.
There are always concerns when it comes to using third parties in a transaction. However, they offer a much less risky and more practical method for exchanging cryptocurrencies. They can also make transactions much easier and reduce consumer risk.
The decentralized exchanges are otherwise centralized in that they do not rely on third parties to hold funds. Instead, traders can operate in peer-to-peer mode, which means that transactions can be accessed more quickly and cheaper than centralized counterparties.
However, decentralized exchanges are criticized because of their limited functionality and difficulty of use, but they are extremely transparent and can easily operate on an international scale as they are not associated with governments.
Popular cryptocurrency exchanges
Binance
Binance has quickly become the market leader exchange to exchange your cryptocurrencies. The impeccable design exchange has a wide range of cryptocurrency pairs available for trade, with over 380 pairs. Binance is aimed at retail investors who wish to invest in smaller capital cap projects, as well as professional traders who can use the smooth user interface and trading tools. This makes it one of the most diversified exchanges in the cryptographic ecosystem.
Gemini
Gemini is known to be one of the most reliable exchanges in the cryptocurrency space. It is aimed at both the retail and institutional sectors as it focuses on regulatory compliance and customer safety. It was created by the Winklevoss twins in October 2015. The twins are up there as two of the biggest holders of Bitcoin, reaching the status of billionaire during the Bitcoin bull run in 2017. Gemini is a leader of market in terms of regulatory compliance, becoming the first Ethereum stock exchange licensed in the United States.
Kraken
Kraken was founded in 2011 by Jesse Powell and is located in San Francisco. Having recently been estimated at around $ 4 billion, the website allows not only the purchase of Bitcoin but also some of the largest capitalization coins. Despite being based in San Francisco, the stock exchanges of companies can deposit Euro and Yen into your account for your specified cryptocurrency.
Bitfinex
This estimated cryptocurrency trade allows its users to buy and sell a range of cryptocurrencies, including Bitcoin and Ethereum. It was founded in 2012 and since then has provided stability to the cryptographic ecosystem, becoming one of the main exchanges in terms of volume, where it often exceeds $ 10 billion per week. Bitfinex also offers an OTC market for institutional investors looking to buy cryptocurrencies in large volumes.
Coinbase
Coinbase is a San Francisco-based stock exchange, which has become the iPhone app most downloaded in the US App Store since December 2018. It offers deposits, withdrawals and withdrawals in USD, EUR, GBP with an internal portfolio. This allows its users to archive their cryptocurrencies in the app portfolio. They have a simple and easy-to-use interface that appeals to beginners as it allows you to exchange your digital assets without being overwhelmed by graphs.
We hope that from this we can see the wide range of exchanges available. However, as explained above, it is eminent that you do your research on all cryptocurrency exchanges. Do not forget to check out all our trade guides here.
