- What is a cryptocurrency Exchange
- Types of Crypto Exchanges
- Top 5 Global crypto exchanges
After the sudden spike in interest around cryptocurrencies, the first thought that comes to the investors’ minds is where to buy, sell and trade these cryptocurrencies. The place where you can buy, sell as well as trade your favorite tokens are crypto exchanges. These online services often work similarly to a stockbroker, giving you the tools to buy and sell digital currencies like bitcoin, ethereum, and dogecoin. The best cryptocurrency exchanges make it easy to buy and sell the currencies you want with low fees and strong security features.
With so many cryptocurrencies to trade and so many newly formed crypto exchanges, it becomes extremely difficult for crypto investors and Enthusiasts to choose the right crypto exchange. On top of that which type of crypto exchange must be chosen is yet another big question to be answered. Let us dive into the world of crypto exchanges and find the top 5 global crypto exchanges that investors are using in 2021.
What is a Cryptocurrency Exchange? Types of Crypto Exchanges
In order to trade cryptocurrencies, every user requires a cryptocurrency exchange. But did you know there are two types of cryptocurrency exchanges one being a centralized crypto exchange while the other is a decentralized cryptocurrency exchange?
These crypto exchanges are then categorized into two categories:
Centralized Crypto Exchange – In these types of exchanges, a third party is used to monitor and secure the transactions on behalf of the user. The blockchain system does not track these deals. The centralized cryptocurrency exchanges require their users to verify their personal information before using the tools provided by them. If the user is an organization, then it must provide some corporate information for the process of verification. CoinDCX is a centralized crypto exchange.
Decentralized Crypto Exchange– A decentralized crypto exchange (DEX) is very similar to a centralized crypto exchange but without third-party intervention, These exchanges do not rely on any third party, The funds in the exchange are stored on the blockchain. Peer-to-peer trading (P2P) is also allowed by these exchanges that require the use of an escrow system or proxy tokens. This is different from the IOU system used by centralized cryptocurrency exchanges. AirSwap and Barterdex are examples of decentralized cryptocurrency exchanges.
We have also covered the differences between centralized and decentralized crypto exchanges in detail. Have a thorough read!
Top 5 Global crypto exchanges
The top 5 Global Crypto Exchanges according to Market Capitalization are as follows:
Binance launched in 2017, has emerged as the best crypto exchange around the globe. Binance has maintained its position as one of the world’s leading crypto exchanges by providing users with the most cryptocurrency trading pairs of any reputable exchange, resulting in the largest trading volume of any crypto exchange.
The platform is designed specifically for those who have been involved in the bitcoin space for some time. That isn’t to suggest it hasn’t been embraced by newer players interested in learning more about online currencies. It simply offers all of the top features that an advanced trader seeks.
Both the digital community and present users praise it, describing it as a highly reliable bitcoin trading business. Two-factor authentication, a multi-tier system structure, and 24-hour customer assistance are all features of this platform.
Read about the Best crypto projects of 2021.
|Lower Fee structure as compared to other exchanges||Dedicated to more advanced users.|
|Wide variety of cryptocurrencies||Binance US has fewer trading pairs as compared
to the international application.
|Advanced chart settings||Not supported in all states.|
While the crypto industry is full of controversial news and fraudulent coins, Coinbase has always managed to stay away from these controversies. Coinbase offers an extremely easy-to-use exchange, greatly lowering the barrier to entry for cryptocurrency investment, which is typically seen as confusing and convoluted.
Coinbase also offers insured custodial wallets for investors and traders to store their investments. They carry insurance against data breaches and hacking, and your cash is stored in Federal Deposit Insurance Corporation (FDIC)-insured bank accounts which is important since users have reported accounts being hacked and funds being drained. The Coinbase custodial accounts are very convenient for newer users just getting their feet wet, but Coinbase owns the private keys to the coins, not the investor.
The Coinbase Pro is a free Coinbase version with a cheaper fee structure. This has more options in terms of indications and charts. Coinbase Pro is a perfect next step for those who have learned the ropes using Coinbase, and it helps round out the overall offering by adding features that the more advanced user would want.
|Wide variety of altcoins||High fees when not using Coinbase Pro|
|Extremely user-friendly interface.||The user does not control wallet keys|
|Very high liquidity|
The KuCoin Exchange opened for cryptocurrency trading in September 2017 which located in Seychelles. The KuCoin Exchange places an emphasis on the quality of the projects listed based on a research department that scours the blockchain industry for quality projects. KuCoin provides an exchange service for users to conduct digital asset transactions securely and efficiently. Over time, KuCoin aims to provide long-lasting, increased value to its more than five million registered users, in over 100 countries.
|Anonymous trading is allowed||The trading volume is low|
|It is highly secured.|
|It has a wide variety of cryptocurrencies|
Kraken is a relatively small cryptocurrency exchange based in the US. It is not listed on any stock exchange, has a track record dating back to 2011, and is much smaller than major players such as Coinbase.
The company/exchange has 175 employees as of mid-2021, a client base of 6 million, and a quarterly trade volume of $1.83 billion. These numbers are by far the lowest among exchanges reviewed by BrokerChooser such as Coinbase or Binance.
|Massive product selection||Withdrawal fees, and high minimums|
|Low non-instant buy fees||Poor selection of educational materials|
|Advanced trading platform||Extremely high instant buy fees|
CoinDCX came into existence merely three years ago and today is India’s first crypto exchange to attain Unicorn status. Built with user experience and security in mind, CoinDCX claims to provide near-instant fiat to crypto conversions with zero fees. On CoinDCX, users can have single-point access to a diverse suite of crypto-based financial products and services that are backed by security processes and insurance. CoinDCX claims to have the highest number of cryptos listed on exchanges in India.
The extremely simple app CoinDCX was designed with the mindset to make crypto simple and easy for everyone. With minimal fees and a superb onboarding structure, CoinDCX stands with an active user base of 5 million. CoinDCX believes in educating the masses first and then acquiring them. This noble venture of CoinDCX is highlighted through its dedicated efforts in educating the masses in India and across the globe through DCXLearn, a complete cryptocurrency and blockchain course, and the regularly published educational blogs. CoinDCX is one of the first crypto exchanges to have released cryptocurrency educational programs for the deaf and mute public.
The pillars of CoinDCX are transparency, compliance, and security. CoinDCX offers users an integrated suite of products:
- DCXinsta, providing fiat onboarding from Indian Rupees (INR) to crypto
- DCXlend, a decentralized lending service, DCXmargin, with up to 6x leverage trades across more than 250 markets
- DCXfutures, with up to 20x leverage trades on leading digital assets futures.
- OTC desk dedicated for high net worth customers.
|Very easy and simple to use interface||A limited number of coins|
|CoinDCX pro version dedicated to advanced traders and investors|
|Variety of products to suit different needs|
|Easy onboarding and effective customer services|
|Great educational content|
Summing it Up!
With so many crypto exchanges springing up, it becomes extremely difficult to choose the right one. However, the investor must be very careful about the exchange he is choosing. One must be cautious about the features, customer service provided, and whether the cryptocurrency they are interested in is available at the particular exchange or not. All these factors must be taken care of while choosing a crypto exchange for yourself. Always remember to consider these top 5 global crypto exchanges before making any choice.
Stay updated with the latest cryptocurrency news around the global community with CoinDCX. Start your blockchain and cryptocurrency learning with DCXLearn, India’s simplest and complete cryptocurrency course. Start your investment journey with CoinDCX, India’s simplest and safest investment app.
Disclaimer: It is advisable to dive into an investment after conducting thorough research. The article is not aimed at any financial advice.