What is crypto exchange and how does the best crypto exchanges work. Here’s everything you should to know about it
Cryptocurrency is a digital currency which does not come under any governmental organization or bank, making them potentially impervious to government intervention or manipulation. Crypto uses cryptography to secure the transactions, making counterfeiting and double-spending practically impossible. Cryptocurrencies work on blockchain technology. ( Blockchain is a distributed, unchangeable ledger that makes recording transactions and managing assets in a corporate network more easier.)
Bitcoin is the most famous cryptocurrency but there are many other cryptocurrencies available in the market today.
What is crypto exchange?
You can’t go and buy crypto from your bank. Once you’ve decided you want to buy some Bitcoin, Ethereum, or another cryptocurrency, you’ll need to create an account on a crypto trading platform to exchange your currency for digital assets.
Some, like Coinbase, have been around since the early days of Bitcoin, when there was far less oversight into how crypto was bought, sold, and traded. PayPal and robinhood, are better-known for their other services, and have only recently allowed customers to trade crypto into the account they already have.
A cryptocurrency exchange is a website where you may buy and sell digital money. You may use exchanges to swap one cryptocurrency for another — for example, changing Bitcoin to Litecoin — or to buy cryptocurrency with fiat currency, such as the US dollar. Price of crypto exchange depends upon market value. You may also use an exchange to convert cryptocurrencies back into US dollars or other currencies, which you can keep as cash in your account.
When did crypto exchange start?
A bitcoin began with a value of 0 Euros. The general population was absolutely unaware of it. The first trades were done in 2009 only for the purpose of testing and had no specified market value. On January 12, 2009, Satoshi Nakamoto and Hal Finney, a developer, made the first known transaction between two persons. And after that a lot of other people including data scientists , cryptographer etc.
Top 15 crypto exchange in the world
- Binance– Binance is one of the cryptocurrency exchanges with the lowest transaction costs. It has a lot of liquidity (the ease with which an asset, or security, may be changed into immediate cash without impacting its market price is referred to as liquidity), and consumers who pay in BNB (binance coin) cryptocurrency tokens get discounts. It is a combination of words bitcoin and finance. It has a multi-tier and multi-clustered design, as well as a high processing rate of 1.4 million orders per second, according to the company. It allows users to trade over 500 different currencies, including bitcoin, Ethereum, Litecoin, and its own BNB tokens. Binance provides services for cryptocurrency trading, listing, fundraising, and de-listing, or withdrawal
- Coinbase exchange– Coinbase is one of the easiest exchanges you can buy and trade stocks in coin base just like stocks, it is beginner friendly and support nearly 100 currencies for trading but there are some cons as well, transaction fees are usually very high in Coinbase crypto exchange. Coinbase provides more than 100 cryptocurrencies some of the examples are – Bitcoin (BTC) Ethereum (ETH), Cardano (ADA), Solana (SOL), Polkadot (DOT), USD Coin (USDC) etc.
- FTX exchange– Founded in 2018, FTX is another major crypto exchange platform. Futures (you can take both long term or short term bets on cryptocurrencies), leveraged tokens(FTX provides traders with up to 3X leveraged exposure to the underlying trading pair using ERC20-based tokens), options(Traders can use a variety of call and put options to speculate on future price direction and hedge against open positions. Call and put options provide the holder the right but not the obligation to purchase or sell at a future strike price.), , and spot markets are among FTX’s most popular products.
- Kraken– kraken supports more than 130 coins and has a very simple user interface which makes it more accessible to buy and sell but kraken charges high fees to the people not using the pro mode the platform is suitable for beginner as well as a professional.
After logging in, you can simply trade with the amount available in your bank account, without funding it first. Along with buying and selling it also provides interest on the amount that you deposit in the form of coin.
5 Kucoin– Users of Ku Coin may make interest on their cryptocurrency by staking it or lending it to others and charging interest. Earning incentives on your cryptocurrency can help you grow your holdings. Ku has a large number of currencies available. The fees is also very less in comparison with other crypto exchanges, but people have faced problem with the withdrawals which can be a major set back along with which Ku is not licensed in USA.
6 Huobi global-Huobi global is farfetched the most liquid cryptocurrency exchange, It has a total of 400 currencies available on it, which if you compare with other exchange platforms is pretty huge. However, it has some drawbacks that includes not being beginner friendly and has accusations of wash trading (Wash trading is a sort of unlawful trading in which a broker and trader work together to gain money by giving the market false information).
7 Gate.io– it is one of the biggest platforms with almost 1200 coins to chose among, gate.io is banned in USA and Canada due to the recent regulatory changes in USA. Gate.io provides several discounts to the customers who are holder of Gate token, the indigenous coin of Gate.io. Another problem with Gate.io is that it’s very overwhelming to the new users as it does not provide change for the government-based money, if you don’t own a coin already you need to buy it from another exchange to use it. It takes 0.2% as the maker fees.
8 Bitfinex– The trading fees at Bitfinex is very low the UI is very beginner friendly, it provides advance trading and advance investment features. You can try it out with paper trading to test the risk, which is a really cool option that others don’t provide. If I have to tell you the negative aspects, it only includes the previous government fines that are there on the exchange’s head.
9 Cryto.com exchange– It supports crypto trading, swapping and staking, it also offers its own credit card and also allows customers to invest in NFTs as well, the trading fees is 0.40% which is much higher but it offers discounts to the customers who hold CRO. If you like trading on mobile phone, this will be a great option for you because the central hub of crypto.com is its mobile app.
Its charting features are easy to understand and don’t provide a lot of unnecessary information. Each currency’s website, on the other hand, contains a quick explanation and links to more thorough information so you can learn how the blockchain and currency function before you buy.
10 Binance US– Binance US comes under Binance which is one the best crypto exchange, it is only available for US customers but yet it’s not available in all the US states as well. The trading fees is less, ranges from 0 to 0.1%. the verification process takes a long time meanwhile you can’t buy, sell, or trade. The coins available in binance.us are pretty less in comparison the competitors. The verification process might be lengthy, but it provides top notch security to the transactions.
11 Bitstamp – Bitstamp is a cryptocurrency exchange that was one of the first to purchase and sell Bitcoin when it launched in 2011. It’s a terrific option for new and casual bitcoin investors who want to purchase and sell at competitive prices with a simple interface. The platform is really easy to use. It supports only 56 crypto coins and does not provide margin trading or lending features. People sometimes complain about slow withdrawal time.
12 Gemini- If you’re interested in crypto investment or trading, Gemini is worth exploring. It has industry-leading security features, its own hot wallet, and a thorough help center. Gemini works in all the 50 US states, Gemini puts a lot of interest in user security which make it one of the safest exchanges. The transaction cost can be higher, especially when you are trading in small amount of crypto. For starting a Gemini account, you just need to provide your email address, your name and password after that the identity verification starts and as soon as it completes you can start trading.
13 Coincheck – Coin check is a Tokyo based exchange company which is 13th best exchanges in the world based on traffic, liquidity, trading volumes, and trust in the legality of trade volumes stated, customers may buy, sell, and trade Ethereum and other tokens on the exchange, which has long been the most popular cryptocurrency. There is no transaction fees but coin check does charge withdrawal and deposit fees.
14 Bitflyer – It doesn’t cost you a fixed fee for simple transactions, It is the largest exchange for Japanese users and has around million users worldwide. Buying and selling bitcoin is as simple as buying and selling stock when using the basic bitFlyer mobile app and website. BitFlyer should be simple to navigate and use if you’ve ever maintained a stock trading account.
You may use the dashboard to rapidly examine balances, trade, and change your account. Other cryptocurrencies, known as altcoins, have their own section apart from Bitcoin.
15- Bybit- Bybit offers HD cold wallet system, which promises the safety of clients’ funds. There are no server downtimes in Bybit and it has 99.9% system functionality. Around 2 million people uses it, it is one of the most liquid exchanges it provides 24/7 customer support. There is No deposit fees it also allows user to purchase coins with credit or debit card.
You need to consider a few things in crypto exchanges, which includes customer service, and how much you like the platform’s mobile app, and how easy it is to use the exchange. But experts’ say time and time again, learning as much as you can about crypto before investing money is one of the most beneficial things you can do
You should consider the cost structures and security measures you’re comfortable with, as well as the extra precautions you’ll take to keep your money safe.