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The best crypto exchanges of 2022
✔️ Best overall and best for beginners: Coinbase.
✔️ Best mobile app: Crypto.com.
✔️ Best for security: Gemini.
✔️ Best for altcoins: BitMart.
✔️ Best for low commissions and best for experienced traders: Kraken.
✔️ Best for bitcoins: Cash App.
✔️ Best Decentralized Exchange: Bisq.
A crypto exchange is a marketplace where you can trade cryptocurrency. You may use an exchange to change one cryptocurrency into another, from Bitcoins to Lightcoins or vice versa. Exchanges display the current market value of the cryptocurrencies they offer.
Binance is the leading crypto exchange for trading volume, handling over 150 cryptos and offering superior security. Its loyalty program that rewards users with incentives to use the platform is what sets it apart. And this isn't all – Binance also offers sophisticated features to streamline your trades, making it a top choice amongst traders worldwide!
There's no use in pretending cryptocurrencies are a low-risk investment. They can be incredibly lucrative if you understand they involve huge risks, but there is also the danger of losing all your funds. Remember to watch while investing in bitcoins or other cryptos – it's essential!
Binance is considered a secure exchange that allows you to protect your account with two-factor authentication.
Cryptocurrency trading has become increasingly commonplace and is now one of the preferred methods for investing. There are two types of crypto exchanges – centralized and decentralized – both provide unique benefits for customers. To help you decide which business will work best for your needs, we have compiled a list of some of the highest-rated centralized cryptocurrency exchanges available in 2022 to provide an overview that displays their advantages and disadvantages so that you make informed decisions when it comes time to trade!
Advantages of centralized exchanges
It’s simple to use fiat money.
Having no restrictions in this aspect enables you to transfer money freely; however, if your currency is not supported, it will likely undergo conversion twice, resulting in higher costs. Conversely, dealing with fiat currencies on centralized exchanges is typically effortless and straightforward.
Convenience of interface
Newcomers will find it easier to start working on centralized exchanges because they are typically more user-friendly than decentralized exchanges.
Additional applications and trading pairs
Centralized exchanges offer a much wider variety of trading pairs than decentralized ones. In addition, centralized crypto exchanges have other advantages over their decentralized counterparts. On stock exchanges, liquidity is greater, and transaction volumes enable faster transactions– which can be crucial for traders who need to complete trades quickly.
There is a single (dominant) operator.
Centralized exchanges have a management team at the top that controls everything (this is why they're called “centralized”). It means any activity, updates, or trades may be made by people working for the company that owns the Exchange. If there's a problem, this gives companies an advantage because you can always contact customer support to get help regaining access to your account.
Another benefit is the presence of a legal entity and the ability to sue.
If a crypto exchange steals your money, you have no legal recourse – though this possibility protects you to some extent.
Disadvantages of Centralized Exchanges
As I stated previously, they provide the same benefits.
Apart from the suggestions given by Boneparth, you can also consider other factors that align with your preferences. For instance, how cordial is the customer support? How user-friendly is the mobile app? Lastly, how convenient is it to use the platform? However, we keep repeatedly hearing from crypto experts that before investing any money in cryptocurrency, spend some time learning about it as much as possible. It will be helpful in the future.
Consider the fee structures and security measures you're okay with, what other steps you'll take to store your coins safely, and your goals. Boneparth urges those considering cryptocurrency investments to take the time to learn about digital currencies before taking any risks. “It's one thing to put money into more stable markets haphazardly; it's a completely another thing to throw money into volatile markets,” he says.
As I stated previously, they provide the same benefits.
You can be blocked.
The key downside to centralized exchanges is that you might lose access to your funds or shut your accounts down without getting them back. The only option would be costly litigation that is unlikely to succeed. “Dirty currency” is only one example of many possible blocking causes. I discussed it in more detail in my post about Bitcoin. In a nutshell, a “dirty cryptocurrency” was obtained due to fraud. For instance, if an exchange experiences a theft of your cryptocurrency, the probability of all your cryptos being obtained legally significantly decreases when even a small amount of stolen currency is present in your portfolio. In this case, you would be unable to show otherwise, and the loss (or going to court) would be inevitable.
Be aware that you may be banned from cryptocurrency exchanges unintentionally. If your Bitcoin was obtained illegally or the system encounters a problem, there is a possibility of getting blocked due to human error. Centralized exchanges are at risk of temporarily blocking accounts; however, this is a minor danger compared with losing money because of account closure.
The law mandates the requirement of verification.
Almost all centralized exchanges require to Know Your Customer (KYC) steps. Some platforms had always had this requirement in place, while others only implemented KYC when they became more prominent or wanted to offer extra services. For example, Binance, a centralized crypto exchange, restricts users from performing only limited tasks until they complete the KYC process.
Not only do crypto exchanges use AML, but they also have KYC and extra verification processes. It involves submitting a passport selfie plus your bank statement and address – which you may be perfectly comfortable with regarding privacy protection. Nonetheless, it is essential to remember that such documents can easily be exposed on the network, thus allowing fraudsters to carry out illegal activities by using your data for their gain; this could involve creating bank accounts under pretenses or initiating fraudulent transactions.
As an essential warning: if you plan to use a cryptocurrency exchange that requires KYC, always rely on reputable and well-known ones. The most prominent crypto exchanges are more interested in their reputations and data protection than smaller organizations.
The crypto on centralized cryptocurrency exchanges is hackable; you don't own the currency.
It's all about the private key. Whoever has access to the private key owns the crypto. There are two significant problems with centralized cryptocurrency exchanges at once:
- You don't own the money on a centralized exchange.
- They're a part of the Exchange, are kept in their wallets, and may be transferred to third-party wallets at any time. You have no control over the private key and can't execute transactions independently.
The Exchange in this system functions as a gateway for trading your cryptocurrency. However, it's important to note that the crypto is not under your ownership, and there is a risk of it being stolen by the crypto exchange or scammers who gain access to your personal information due to…
Centralized crypto exchanges can be hacked
A crypto exchange merely assigns space within its cryptocurrency wallet to store your coins. Despite your best efforts to convince yourself otherwise, the reality is that you are denied access.
Centralized exchanges often engage in practices that benefit the Exchange to the detriment of users, such as artificially manipulating asset prices to trigger liquidations and generate more income for the Exchange. These manipulations can vary from one cryptocurrency exchange to another. It used to be popular to tweak trading volumes, and bots were used for this task. Artificially inflated volumes created the appearance of reliability. Trading volume is still one of the most important indicators for evaluating a cryptocurrency. But in the wild 2017-2018, many exchanges overestimated the volume dozens of times.
Analytical services today track actual trading volumes, so changes to this indicator are rare.
Technical difficulties from the user side have been attributed as the cause. However, when it comes to centralized exchanges, all tools are available for fraud and placing orders that will profitably manipulate prices. It is particularly evident in leveraged futures games where one can benefit from a margin call yet end up with no open positions afterward.
Rating of centralized crypto exchanges 2022
Despite its tremendous success, Binance is not available in some locations. Additionally, the platform has endured a security breach previously; nonetheless, it remains renowned for its unparalleled liquidity.
The Exchange is centralized, which is only sometimes a good thing. Nevertheless, it is the primary cryptocurrency exchange and undeniably influences the entire system. Sure enough, if Binance goes down due to a major scandal and investors lose their money and those who invested through Binance but did not have funds there, the crypto will collapse numerous times before reviving.
Benefits on Binance
Binance Chain offers a comprehensive range of services, and its native token allows users to benefit from margin trading and passive investment opportunities. To further support its community, the crypto exchange regularly hosts giveaways and development-oriented programs that drive continual growth.
With Binance Bitcoin (BNB) tokens, you can make an intelligent investment as the value of this cryptocurrency is often propelled higher with just an announcement of an Initial Exchange Offering (IDO). Through such occurrences, holding BNB will set you apart from other investors and signify that you are in the know. When IDOs occur on exchanges like Binance, a price increase in greater demand for their token usually follows – which further increases its worth. This pattern has been seen regularly with various cryptocurrencies, creating confidence when investing in better returns!
Burning Binance's BNB is an effective way to increase value; the fewer coins in circulation, the higher their worth. The burning strategy will soon replicate Ether's logic, ensuring consistent repetition. This implementation enables us to access all of Binance's creative ideas readily.
In an attempt to depose ETH, BSC (Binance Smart Chain) is a cutting-edge blockchain designed for those eager to launch their cryptocurrency.
Binance is cultivating a comprehensive ecosystem for the crypto industry. Despite its status as a centralized cryptocurrency exchange, Binance still reigns supreme in this sector, primarily because of its fame and renown.
Bybit is a well-known, widely accessible centralized crypto exchange with various features and services. It has strong liquidity, yet sadly charges high fees on certain sales. Despite this, it has been made accessible in many countries globally.
Coinbase stands out amongst its crypto exchange counterparts, allowing users to purchase cryptocurrency with fiat currency (USD). Its good liquidity and range of features are making Coinbase highly sought-after. Yet it must be noted that exorbitant fees and a limited reach geographically still plague the platform.
Gemini's services are highly secure by operating lawfully in the United States and abiding by all relevant international regulations. However, this comes with a trade-off; anonymity is not an option, as users must regularly provide personal information to regulators. With that said, stringent regulatory oversight does help mitigate risk for consumers and provides some peace of mind when investing using the Gemini cryptocurrency exchange.
KYC is an absolute necessity, and all users must follow the standard protocol of providing passport photos and other details for AML verification. The Exchange will access your personal information, like employment or residence address – so be prepared to declare and pay taxes on your crypto earnings. All data will also be forwarded to tax authorities for transparency purposes.
Although many crypto-enthusiasts are dissatisfied with the support offered by exchanges, this phenomenon is more comprehensive than any specific business. Most cases revolve around user errors, making it challenging for customer service staff to resolve them speedily and efficiently – no matter how accommodating they may be.
To ensure an extra layer of protection against fraud, the system stores all user accounts in a dedicated banking account.
This way, even if Coinbase ever suffers from a cyberattack, users' money remains safe and secure in a separate bank account. Stealing Bitcoin on Coinbase is less profitable or straightforward than it may be on other crypto exchanges with lesser security measures.
FTX is a cutting-edge crypto exchange with features like margin trading and derivatives that empowers users to diversify their portfolios. It's accessible in almost every country, making it widely available and boasting remarkable liquidity rates. However, be warned: FTX has higher fees on some trades than other exchanges.
Investing in digital assets with fiat currency is now possible through Tether. This crypto-trading platform allows investors to purchase options, futures contracts, or tokenized securities. By leveraging the market movements of various cryptocurrencies, you can take advantage of Tether's value appreciation – an instrument whose worth depends solely on its volatility. Moreover, from June 2021 onwards, it has become viable for stock trading using Bitcoin as standard; Tesla, Google, and Netflix are among these firms! The advantages don't stop there: transactions via this system happen at lightning speed.
Virtually unnoticed, Alameda Research has recently gained attention in the trading and asset management industry. Now considered one of the most successful companies today, they handle billions of dollars worth of volume every single day!
The only downside to operating on FTX is the expensive withdrawal fees compared to other platforms.
If reliability and features are what you're looking for in a crypto exchange, then Kraken is your solution. It's available in many countries and provides excellent liquidity. Unfortunately, fees on some trades can be high at Kraken; however, it is still worth considering if you need an alternative platform to get started.
Enabling customers to access cryptocurrency and fiat currency trading, futures, margin trading, and OTC transactions – the Exchange allows for low transaction fees depending on volume. However, users should know compliance requirements and potential risks associated with centralized exchanges.
With ample trading volume and rich liquidity, the cryptocurrency exchange ensures fast execution of trades.
The nice thing is that the Exchange is old and intends to enter the stock market. Here the most obvious advantage is a concern for reputation. For sure, any sharp corners the business will try to smooth over, any so its importance will not suffer and diminish the assessment of the project.
In addition to centralized crypto exchanges, there are decentralized crypto exchanges. Let's understand what their advantages and disadvantages are, and let's make their rating.
Unlike centralized exchanges, decentralized crypto exchanges are not run by a single company or entity. These exchanges typically have lower liquidity than their centralized counterparts but offer greater privacy and security. However, decentralized exchanges can be challenging and often have low trading volumes.
The best-decentralized crypto exchanges in 2022 are:
Uniswap is a remarkable decentralized crypto exchange that allows people worldwide to trade many different types of cryptocurrency. Not only does it have excellent liquidity, but accessible too! Unfortunately, fees are incredibly high on specific trades.
To help offset this, Uniswap has implemented a new system called liquidity pooling. In simple terms, liquidity pooling allows users to contribute their cryptocurrency assets into the Exchange's “pools” to earn income through trading fees and spreads.
Sushiswap is one of the most accessible decentralized crypto exchanges in many countries, providing excellent liquidity and a range of features. However, it has drawbacks – high fees for some trades that can be difficult to swallow.
Ultimately, the crypto market is flooded with a plethora of exchanges. Nevertheless, two stand out as the most popular: centralized and decentralized. This article broke down both types of crypto deals in 2022 to help you make an informed choice about which suits your needs – with our ratings of the best-centralized ones included! Appreciate all their advantages and drawbacks before investing to be confident that your money is secure and well spent.
ETHD offers leveraged margin trading via ETHD, a decentralized exchange on the Ethereum network. You may use leverage and futures on this Dex, unlike competitors.
Multiple decentralized exchanges contribute to developing liquidity, with DyDx anticipated to emerge as the market leader and dominant force. First of all, because this decentralized crypto exchange has a familiar UI and functionality level to its centralized counterparts, it will be able to attract customers almost immediately.
- 1inch Exchange
Binance Coin (BNB) is a decentralized cryptocurrency exchange. It, like Uniswap, is also based on the Ethereum blockchain. It's built on dApps (decentralized applications). – multichain support, allowing the Exchange to work with BSC and Polygon tokens.
The Binance Decentralized Exchange relies on three platforms: Binance, Wanchain, and Ethereum.
With the Liquidity Protocol, building liquidity pools is now straightforward and profitable! Users can benefit from an automated market maker that provides rewards with merely one inch of crypto. With this protocol, exchanging assets has never been so gainful or effortless.
The Order Protocol for Stop Losses, Stop Orders, and Auctioning equips you with the tools to protect and maximize your profits. This protocol lets you set stop losses or orders and participate in auctions.
Let's start by looking at some basic terms.
Centralized crypto exchanges are more like banks.
A controlling person controls your assets, but they may also steal them. On centralized exchanges, the crypto does not belong to the users.
Most decentralized exchanges are clunky to use and lack essential features for customers.
The ideal option is to use an exchange that supports cryptocurrencies and fiat currencies. The perfect solution is to combine crypto exchanges. If liquidity is essential to you, the best choice, for now, is to continue using centralized platforms. Use Dex if you trade rarely. DEX is the best crypto trading platform that allows users to interact with each other without knowing their private keys.
The dispute over which platforms are superior will never go away. Each crypto exchange has its own set of features.
What will happen to crypto exchanges in 2022?
The consensus is that the two models will coexist, each providing distinct advantages. Moreover, with technology constantly advancing, new crypto-exchange administration techniques may combine the best of CEX and DEX. What do you believe?