Ten years ago, if you told the layman investor that cryptocurrencies would grow to rival mainstream finance, they would have dismissed you or even laughed in your face. Since the COVID-19 pandemic, however, these digital assets have seen widespread adoption, with many large institutions accepting crypto payments. This has piqued the interest of many investors, who are looking to get a piece of this digital pie. The easiest way to purchase these assets is through centralized exchanges, which are trading platforms controlled by a single entity. There is no shortage of these exchanges, but here are the top 8 platforms for beginners and experts alike.
Binance
Launched in 2017 by founder Chaopeng Zhao, this is by far the largest exchange by traded volume. It supports more than 600 cryptocurrencies and boasts a daily transaction volume north of $76 billion. According to its website, more than 90 million people use this platform for their crypto trades. It is available in more than 180 countries. However, due to its unregulated status, it is banned in the US. Be that as it may, US residents can use its subsidiary, Binance.US, though it contains fewer features and supports fewer tokens.
Binance supports several payment methods, including crypto, bank wire transfers, and credit/debit cards. It also charges low transaction fees, which range from 0.075% to 0.525%.
Coinbase
Coinbase is a household name in the world of CEXs. Its intuitive interface makes it suitable for all classes of traders, from novice to seasoned pros. It also features several educational resources, which users can take advantage of using the Coinbase Earn program. This program teaches users how to trade specific tokens and gives them crypto rewards as they progress. The site also features top-notch security features, such as 2-factor authentication. It also stores 98% of customer funds in cold storage and has an insurance policy capable of refunding user funds up to $250,000. Coinbase is also a publicly listed company, which speaks to its legitimacy.
Crypto.com
This is a popular exchange renowned for its security features. While most platforms will have measures in place against malicious cyber-attacks, Crypto.com really goes above and beyond. It incorporates multi-factor authentication using passwords, biometrics, emails, phone, and authenticators. It also stores user funds in cold storage and has a custodian bank account for fiat deposits. Its software is also regularly peer-reviewed, which includes several simulated penetration tests. This has seen it rank first in Cybersecurity Ranking.
Other than security, it also has various attractive features. It supports over 250 coins and features a non-custodial DeFi wallet. It also allows margin trading, a lending feature, and a crypto Visa card for making payments.
Abra
This is a global exchange that spans more than 150 countries. It supports over 100 tokens and features zero trading fees. However, it charges a spread between different assets, which is how it stays in business. It also features interest-earning accounts, where you can enjoy yields of up to 12.5% on your holdings. Other features include over-the-counter trading, crypto-backed loans, and a wide variety of educational material. What’s more, the exchange pays users 0.5% cashback on each transaction.
Kraken
This is another global exchange that spans close to 200 countries. It supports more than 65 cryptocurrencies and features several options for both retail and institutional investors. It also offers margin trading with leverages of up to 5 times your equity balance. What’s more, it features futures trading for BTC, ETH, Litecoin, Ripple, and Bitcoin Cash.
Kraken’s institutional clients also enjoy one-on-one consultations with the Kraken team, as well as account management. The platform also allows staking and has several educational resources on its website.
CEX.IO
This is a UK-based exchange that boasts coverage across 99% of the world’s countries. It is also accessible in 48 US states. It is compatible with more than 100 cryptocurrencies. If you choose to purchase crypto using a debit/credit card, you can access their instant buy feature. The platform also allows staking and offers crypto-backed loans.
There is a spot trading feature for professional traders that allows you to place different types of market orders. CEX.IO also allows trading on margin. Institutional clients also enjoy aggregator and payment management services. Its fees range from 0 – 0.15% for makers, and 0.01 – 0.25% for takers.
Gemini
This is a regulated exchange that features a crypto marketplace, wallet, and custodian services. It is comprised of several platforms, such as web exchange, Active Trader platform, Gemini Fund Solutions, and several tools for its institutional clients.
Other notable features include Gemini Clearing, which facilitates crypto trades outside the exchange. There is also the Gemini dollar, which is a cryptocurrency backed by US dollars. Gemini Wallet and Gemini Custody allow users to choose between hot storage and cold storage for their crypto assets. The latter also offers an insurance policy worth $200 million. There is also a Gemini Earn feature that allows users to earn interests of up to 8.05% on their holdings.
Pionex
This is a popular exchange platform renowned for its trading bots. It offers nearly 20 bots of different types, which allows users to automate their trading experience. It also aggregates liquidity from Binance and Huobi Global, which makes for easier order matching. If you do not intend to utilize their trading bots, you can also manually trade digital assets on the platform. It is licensed by US’s FinCEN and features low fees of 0.05% for both makers and takers.
Conclusion
Centralized exchanges are trading platforms controlled by a central entity. These platforms are the easiest way of onboarding new crypto investors, thanks to their intuitive interfaces and ease of access. Some of them also offer state-of-the-art security features and a wide array of other attractive offerings.
