Overview of Crypto Exchange
Traders can use different mediums for crypto trading. Centralized crypto exchange is a popular medium used for that. Many people also utilize other trading platforms like decentralized exchanges and brokers. Over the years, centralized exchanges have gained more popularity and reputation due to the convenience and features they provide. We reviewed many crypto exchanges and listed the top 5 crypto exchanges that can be utilized for crypto trading, and other crypto-related services. Before choosing the right trading platform, you should consider variables like platform’s reliability, trading features, availability of coins and tokens, staking and other services, and customer support.
How Crypto Exchanges Work?
Centralized crypto exchanges are developed and fully managed by a company who is also responsible for securely storing the users’ funds. These exchanges are less decentralized compared to DeFi exchanges or decentralized exchanges because users don’t have control over their private keys for storing crypto. Also, trades on these platforms are executed using centralized order book model.
When a user opens an account in such exchange and stores funds, these are actually stored in custodial wallet integrated with the platform, and private key for those funds is held by the company. Crypto buyer places a buy order and seller places a sell order and the order book mechanism matches them to execute the trade. The transaction data is stored on blockchain.
Crypto exchanges usually secure the users funds through multiple layers of protection including account security measures like 2FA, and password policies, network security protocols like firewall and DDoS mitigation, data encryption, cold storage, and organizational safeguards like employee training and security audits. When choosing a crypto exchange, reviewing the platform’s claims of security infrastructure is important.
- Crypto.com
It is a convenient trading platform that offers wide range of cryptocurrencies for trading. For traders who want to do spot, margin or derivatives trading, crypto.com would be a good option. Crypto.com charges a taker and maker fees of around 0.075% from users with trade volume of less than $250,000. Moreover, it also provides unique features like staking service and crypto visa card. Being the most secure crypto exchange, trusted by millions of users, it is considered a reliable platform for crypto trading.
Crypto.com provides wide range of features for beginners and experienced traders. The simple buy and sell feature allow users to buy or sell crypto instantly at market price without engaging with complex order book. The Exchange feature which is for experienced traders, allow users to trade crypto with deep liquidity using different order types. You can also view your portfolio through an intuitive interface. Multiple types of charts, and indictors further facilitate in your trading strategy.
Another useful feature is staking service. You can stake various coins like ETH, DOT, and SOL and earn rewards based on specific APY rates. But it’s important to understand that the APY rate is determined by the blockchain protocol and not imposed by the crypto exchange itself.
The crypto.com operates vast network of services for crypto investors. It also has blockchain called Crypto.com Chain with native token CRO. This token can be used as utility token on the exchange platform. You get discount on trade fees and you can also stake CRO to earn rewards using the on-chain staking feature provided by the platform.
- Binance
It is the world’s largest crypto exchange having the largest trade volume and also has greatest number of users around the globe. Having a robust security infrastructure, and comprehensive offering of services, it is another reliable crypto exchange that can be utilized for spot, margin and derivatives trading. Binance has over 500 tradable cryptocurrencies. Users can also instantly purchase or sell crypto using various payment methods. Binance charges a fee of around 0.1% for trading which is considered a good fee. Using the Binance platform, you can do spot trading in both ways; manual trading and automated trading.
Binance’s trading interface is user-friendly, offering wide range of tools, including charts, indicators and order types. Trading process can be simplified by using various trading bots suited for specific trade strategies. You can also customize the trade parameters in the bot. Overall, Binance provides great trading experience for professional traders.
You can also stake various coins using Binance’s Earn feature. Unlike other crypto exchanges, Binance also provides other services like Simple Earn which is a combination of staking and other techniques, and dual-investment products. Lastly, Binance’s educational resources are extensive and cover all aspects of crypto trading from which beginners can take benefit.
- Kraken
It is a popular crypto exchange that supports over 240 coins. Through this platform, users can do spot, futures and margin trading while benefitting from deep liquidity that Kraken provides. Kraken’s industry-leading security and deep liquidity are the features which puts it in the list of top crypto exchanges. Both these factors are crucial when judging an exchange’s reliability. For simple trading of crypto, you can use Kraken platform which takes high trade fees, but for advanced trading you can use Kraken Pro which takes less fees.
Kraken Pro provides a well-organized trade interface and offers multiple tools. You can also use Analytics and Portfolio platforms for more insights. Specifically for block traders, Kraken also offers Over-The-Counter premium trading service.
This platform also offers wide range of staking coins with various APR rates. Interestingly, it provides three stablecoins for staking at APR of 5.75%. Stablecoin staking is a great feature that you can utilize and earn rewards. Moreover, Kraken also provides a self-custody wallet with multi-chain access.
- Coinbase
This is a beginner-friendly crypto exchange that supports wide range of tradable coins. Coinbase is also known for comprehensive service offering ranging from services for individual traders to services for businesses. Coinbase is also among the most secure crypto exchanges that offers state-of-art security features. Trusted by millions of users globally, Coinbase remains a reliable platform for trading.
Coinbase advanced trading platform is well suited for professional traders who want to perform spot, or derivatives trading. Currently over 400 spot trading pairs are available and over 250 tradable assets. The trade interface is well optimized for beginners so they can easily select various markets and place order using order book.
Other unique features include staking for earning rewards, and self-hosted wallet for managing crypto. Furthermore, Coinbase Prime is a premium brokerage platform for institutional investors for executing large trades.
- Gemini
This is another beginner-friendly crypto exchange from which both beginners and professional traders can take benefit. This platform also has great customer support and security features. The user-interface is simple and easy to understand. Gemini offers over 70 tradable coins and multiple trading tools. For trading crypto, there are two platforms; Gemini Exchange and Active Trader. Gemini exchange is for beginners who use simple order types like buy or sell for trading crypto. While Active Trader provides advanced order types suited for specific trade strategies that professional traders deploy. Derivatives assets are also available for trading including perpetuals and futures.
Gemini offers very fewer staking products with decent APR rates. But the crypto credit card that Gemini provides offers great cashback rewards. For the Gemini card, you also don’t have to pay any annual fees.