All financial securities can be bought and sold through recognized exchanges to invest for a longer period or trade. There are stock exchanges for stocks, and for trading or investing in foreign currencies, there are multiple foreign exchanges (FOREX). Similarly, to trade in cryptocurrencies, various cryptocurrency exchanges offer buying and selling services to traders or investors.
In this article, we will understand what are centralized crypto trading exchanges and how they work.
A centralized crypto exchange is a digital platform that facilitates the trading of cryptocurrencies through a centralized authority. In this model, the exchange acts as an intermediary that matches buy and sell orders, executing transactions on behalf of users. The exchange holds custody of users’ funds and provides a centralized order book where users can place market orders, limit orders, and other types of trades.
Following are the top centralized crypto trading exchanges, according to liquidity, traffic, and trading volumes, are as follows-
Binance is one of the most prominent and leading cryptocurrency exchanges worldwide. Chanpeng Zhao established it in 2017. Binance is the world’s largest cryptocurrency exchange in terms of trading volumes. Binance supports buying and selling cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. However, the exchange has its coin, Binance coins (BNB).
Coinbase Global Inc. is a U.S.-based cryptocurrency exchange that is the largest in the country. It was founded in 2012 in terms of trading volumes. It supports more than 200 cryptocurrencies and does not only support cryptocurrencies but also supports NFTs. The company has registered more than $625 million in trading volumes.
Bitfinex is a cryptocurrency exchange in the British Virgin Islands and was founded in 2012. The company was initially made to support peer-to-peer transactions in Bitcoin. However, the company added various cryptocurrencies to trade to expand its operating activities. It is a leading cryptocurrency exchange worldwide and offers spot and derivative trading.
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Gemini was founded in 2014 and is also called the Gemini Trust Company. The exchange was established by Cameron and Tyler Winklevoss, renowned investors and former classmates of Mark Zuckerberg during their time at Harvard.
Gemini Exchange provides a full suite of services for trading cryptocurrencies, which comprises an exchange platform, a protected custodial service for digital assets, and a sophisticated trading platform.
Gemini’s unique feature is its custodial service, which offers $200 million in insurance coverage to safeguard digital asset holders. This makes it a trustworthy option for those who want to invest in cryptocurrencies while keeping their investments secure.
Kraken offers its users two different platforms. One is the primary trading platform, and the second is the professional-grade platform known as Kraken Pro.
The Kraken Pro platform provides traders with advanced features, including highly customizable chart analysis tools, comprehensive insights into order books, support for 13 different order types, and rapid execution of trades. Beyond traditional spot trading, Kraken Pro extends its functionality to margin trading, allowing users to borrow funds to increase their trading capacity, albeit with added risk.
It is a cryptocurrency exchange platform founded in 2018 that allows traders to trade all the cryptocurrencies available worldwide. The exchange was primarily focused on providing cryptocurrency derivatives, particularly futures; Bybit has since diversified its offerings, positioning itself as one of the leading cryptocurrency exchanges catering to a broad spectrum of investors and traders.
The exchange is a popular platform to list cryptocurrencies, including small market cap currencies. Founded in 2017, it operates as a comprehensive cryptocurrency exchange that offers over 700 cryptocurrencies. This platform provides diverse trading options for different trading styles, such as spot markets, cryptocurrency futures, and margin trading.
In addition to trading, KuCoin offers lending products for users looking to earn interest on their crypto holdings. The exchange also ventures into the NFT space, featuring an NFT marketplace and a launchpad for emerging crypto projects.
To choose the best cryptocurrency exchange, consider the requirements and top priorities. The cost structure, like transaction-free and wallet fees, should also be considered, directly impacting profitability.
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