In the past few years, cryptocurrency has seen a surge in popularity. With Bitcoin being the leading crypto that has been on a steady rise since its introduction in 2009 – at the time of this writing, a coin worth over $40,000.
While the value of Cryptocurrency fluctuates with each day’s trading, it is clear that most crypto will continue to grow in 2021 and beyond.
This has changed the phase of business on the internet. Best of all, it’s not going away anytime soon! However, as you may or may not know by now, there are many crypto exchanges out there where you can buy coins from.
The question is, what exchange should you use? This blog post will list some of the best crypto exchanges for 2021 so that when 2022 rolls around, you’ll be ready to trade like a pro!
Types of Crypto Exchanges
There are a few different types of crypto exchanges that you can use to trade on. It is important to know the difference between each type to make an informed decision on what’s suits your needs.
A cryptocurrency exchange is similar to a stock market, but it’s all about buying and selling cryptocurrencies instead of trading stocks and shares.
Essentially, crypto exchanges offer customers the opportunity to buy or sell digital tokens in relation to what they’re worth based on current prices.
Cryptocurrency exchanges allow transactions or trades to take place in the following forms:
- Local fiat-to-crypto currency transaction, and
- Cryptocurrency -To Crypto Currency Transaction.
Some cryptocurrency exchanges offer a platform focused on ease for the customer, while others hope to provide competitive pricing options.
What are the Types of Cryptocurrency Exchanges?
There are basically two different types of cryptocurrency Exchanges
- Centralized exchanges (CEX)
- Decentralized exchanges (DEX)
What are Centralized Exchanges (CEX)
A centralized cryptocurrency exchange (CEX) is an online platform that allows investors to buy and sell digital currency. The exchanges are typically administered by a single company or government, setting the rules for how people interact.
When you use a CEX to trade, your assets are never in control by investors on the other side of the transaction; they remain in your possession until they’re transferred to someone else’s account.
Centralized exchanges also have limited liquidity due to their dependence on market makers who provide both bids and offers at set prices, making them difficult for new traders with small budgets or large orders. Below are the top centralized cryptocurrency exchanges:
- Coinbase (Pro)
- Huobi Global
What are Decentralized Exchanges (DEX)
A decentralized platform connects trade orders to meet customer’s needs; it serves as an alternative to centralized exchanges. This time, the platform doesn’t depend on a service or company to control the assets owned by customers.
Most transactions or trades are controlled automatically in the absence of a central presence. This is also known as customer-to-customer or peer-to-peer. Below are some of the most ranked decentralized cryptocurrency exchanges:
- 0x Protocol
- Uniswap (V2)
- 1 inch Exchange
- Curve Finance
Benefits of Keeping Your Assets on an Exchange
One of the main advantages of an exchange wallet is its convenience. You can easily store your coins in a convenient place and have instant access to them without having to go through cumbersome processes or pay high fees for sending money.
All you need is an internet connection! However, as great as this sounds, it’s not all good news when it comes down to security because your private keys are stored on their servers, so they’re always vulnerable to hacking.
The Top 3 Exchanges to stick to in 2021
These three cryptocurrency exchanges have been dominating the market for some time now, and there is no reason they will stop anytime soon. Below we explore how each of these top 3 exchanges has cemented its place in history and what makes them stand out from the competitive field of competitors.
Coinbase is an American bitcoin exchange company headquartered in San Francisco, California. Brian Armstrong and Fred Ehrsam founded Coinbase on June 1, 2012. It is a digital wallet that can be used to buy or sell bitcoin instantly with bank account balances.
The exchange has become one of the most popular ways to start investing in cryptocurrency because it allows instantaneous transactions between users without having to link any type of payment information.
- Best-known crypto exchange
- Friendly user interface
- Mediocre technical support
- Higher fees
Binance is the world’s largest cryptocurrency exchange, with over 10 million registered users. It offers a variety of trading pairs and an efficient system for executing trades. The platform provides its own token BNB and the BINANCE COIN (BNB), which allows you to get 50% off all trading fees on the platform.
Since the exchange was launched in 2017, it has grown rapidly and has over ten million active users! One of the few exchanges that offer their coin -BNB can be used to pay any fee if you have enough coins.
- Big volume discounts
- Many coin types are available
- Futures and margin trading are not available in the US
- Many additional limits for US traders
Bittrex is a Seattle-based company that offers some pretty unique features for those who are new to the crypto game. For instance, it’s one of the fastest exchanges in today’s market and provides users with more than 190 trading pairs for Bitcoin alone!
- Free online wallet
- A metric ton of currencies
- Very few deposit fees
- The flat fee could get expensive
- No margin trading
You Bought Crypto. Now What?
You’re a new crypto investor, congratulations! You just took the first step in joining an exciting and ever-changing space. Whether you bought Bitcoin or Ethereum, you are now part of an innovative global community.
Now what? It’s time to take your next steps as a new cryptocurrency owner. You can typically buy and sell your cryptocurrency through an exchange. The fact remains that there are thousands of global exchanges, and most are not regulated.
There are exchanges that provide access to more than two or more currencies. You can transfer any cryptocurrency purchased on an exchange into a wallet, trade, or make payments when necessary.
Start with Your Best Foot Forward
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