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Cryptocurrencies are becoming more and more popular, and more people are joining the world of digital currencies every minute. Due to the popularity of crypto users, the demand for exchange platform services arises. And one of its main services is the exchange of one cryptocurrency for another. So what are cryptocurrency exchanges? How do they work? What is the crypto trading volume of each? And what are the best options on the market?
What are crypto exchanges?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. They are decentralized, meaning they aren’t subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, dozens of other cryptocurrencies have been created. In addition to bitcoins, there are now also Ethers, Litecoins, and Dogecoins.
Cryptocurrencies can be bought and sold on a variety of exchanges. Crypto exchanges are digital platforms where you can buy and sell cryptocurrencies for currencies like US dollars or euros or exchange them for other digital assets. They are the lifeblood of the crypto world, and various crypto exchanges exist. But with so many exchanges, how do you know which one is right for you?
Things to consider when choosing a crypto exchange
Deciding which crypto exchange to use can be a daunting task. There are many exchanges out there, and they all have different features. Here are some things to look for when choosing a crypto exchange:
- User Experience: You want an exchange that is easy to use and understand. You last want to get frustrated with the process and give up. Look for an exchange platform that has a user-friendly user interface and is easy to navigate.
- Fees: Some exchanges charge higher fees than others. As a crypto user, you should compare the fees charged by different exchanges before making a decision.
- Bitcoin or Ethereum support: If you want to trade Bitcoin or Ethereum, make sure the exchange you choose supports it. Not all exchanges do.
- Security: Exchange hacks are not uncommon, so security is an important consideration when choosing an exchange. Look for an exchange with robust security measures, such as 2-factor authentication and encrypted communications.
How to use a crypto exchange
You’ll need to create an account and verify your identity to use a crypto exchange. Once you have logged in, you’ll be able to deposit funds into your account and start trading. You’ll need to specify the amount of currency you want to buy or sell and the price you’re willing to pay. Your order will then be matched with another trader’s order, and the trade will be executed. Depending on the exchange, you may also be able to set up limit orders, which allow you to automatically buy or sell when the price reaches a certain level.
Before using a crypto exchange, it’s essential to research and ensure that it’s reputable and safe. You’ll also need to hold your cryptocurrency in a wallet, as most exchanges don’t hold onto customer funds for security reasons. When you’re ready to start trading, a crypto exchange can be a convenient and easy way to buy and sell cryptocurrencies.
The 10 most Solid Crypto Exchanges in the market
In the early days of cryptocurrency, there were few exchanges and even fewer options for those looking to buy or sell digital assets. Today, however, there is various exchanges platform to choose from. Here are a few of the most recommended exchanges in the market today, according to Forbes and CoinMarketCap, based on parameters like rating, trading volume, security, and traffic.
Founded in 2017, Binance is a cryptocurrency exchange that has gained much popularity in the last few years. It is one of the most used exchanges with 90 million registered users and has a very high crypto trading volume of 76 billion daily.
Binance allows you to buy more than 600 cryptocurrencies with fiat currency (USD, EUR, etc.). It is not something that all exchanges allow, making it much easier for people to start with cryptocurrencies. It also has low transaction fees and a very user-friendly interface.
Start trading your cryptos with Binance
It is a cryptocurrency exchange built for traders. FTX provides robust features that are intuitive to use with an extensive list of services tailored to professional investors and beginners. Its trading volume surpasses daily and has around 1.2 million registered users.
FTX is the perfect platform for cryptocurrency traders, with low fees and an impressive digital currencies selection. It also offers some features designed specifically to cater to more experienced investors, such as being able to trade between 21 cryptocurrencies and national currencies.
Coinbase is on a mission to create financial access for all, starting with the radical idea that anyone should be able to send and receive bitcoin quickly. It began in 2012 as one of many companies trying out new ideas about how people exchange platform money online; today, it offers a trusted platform that gives you easy-to-use tools like an app store or search engine at your fingertips.
We are creating an open financial system for everyone.Coinbase
It is one of the most reputable crypto exchanges, with approximately 98 million verified users and 13,000 partner firms from around 100 countries that trust its services.
Coinbase’s trading volume is 309 billion quarterly, which is 3.4 billion dollars daily.
Kraken is a San Francisco-based cryptocurrency exchange founded back in 2011 when there were only 26 cryptocurrencies available on the market, while now there are more than 600. It is a leader in digital currency trading, offering over 90 different currencies and 7 million total users worldwide.
It offers a trade between cryptocurrencies and fiat currencies, providing price information to Bloomberg Terminal. As of December 2021, it was available for residents in 48 states across America with no restrictions on the country of residence – except Iran, North Korea, and Cuba. The list includes 95 digital currencies available through their exchange platform, including Bitcoin Core (BTC), Ethereum (ETH), and Ripple XRP.
Its crypto trading volume is approximately 1.2 billion a day.
KuCoin is a Seychelles-based cryptocurrency exchange founded in 2017. It now has over 8 million users and operates across more than 200 countries, making it one of the largest global exchanges by trade volume. Its trading volume is over 2 billion a day.
The exchange is not licensed to operate in the United States, so it has limited access to features such as deposits and withdrawals. It means that if US regulators decide to crack down on Kucoin, users might be unable to remove their assets from an account.
The next generation of cryptocurrency exchange and custodian, Gemini Trust Company, is headed by brothers Cameron & Tyler Winklevoss, who saw an opportunity for growth with cryptocurrencies during their time at Harvard University’s Project Syndicate. Gemini launched in 2014 in New York because of that insight into how popular digital currencies would become later down the line.
It has applied for the status of New York State Limited Liability Trust, which is an excellent solution if you plan on serving institutional customers or individuals. The New York State Department of Financial Services (NYSDFS) will officially regulate the Gemini exchange.
The exchange reports approximately 286 million in daily crypto trading volume.
7. Houbi Global
Huobi Group is a leading blockchain company that aims to accelerate the digital economy through groundbreaking innovations in core technologies. It has operations across multiple sectors, including enterprise and public blockchains and cryptocurrency trading desks for Bitcoin (BTC) and Ethereum (ETH). The firm remains focused on growing its diverse range of regulatory-compliant services, which it provides globally, reaching tens if not a hundred million users worldwide.
Its trading volume is almost 3 billion a day.
The cryptocurrency exchange bitFlyer, Inc. (Tokyo headquarters) is the parent company that runs bitFlyer USA, one of America’s largest and most popular crypto exchanges for Bitcoin to US dollar trades each day with over 2.5 million users since its founding in 2014 and almost 3 million in trading volume daily.
A group from around Japan came up with an idea to use blockchain technology as it stands now, which will change how we view financial transactions forever- and not just because they’re trading cryptocurrencies; all types of funds can be sold on this platform, including stocks.
The Japan Authority of Digital Assets (JADA) and bitFlyer have teamed up to make using Bitcoin seamless and prosperous with improved ease-of-use features like instant transfer payments between wallets without any waiting periods.
With its mission to grow the digital currencies ecosystem and offer US traders a platform that inspires their loyalty, FTX.US is set on becoming one of America’s leading cryptocurrency exchanges in the next two years by building an exchange from scratch with extraordinary features.
Among those features is margin trading for high rollers who want more control over when they enter or exit positions. Also, low fees provide better value than other platforms with no hidden costs and security measures, including 2 Factor Authentication (2FA).
FTX.US has a trading volume of more than 624 million.
The digital asset exchange Bithumb Global has been launched in South Korea to meet the diverse needs of users around the world. The company will leverage deep resources and technology to provide a wide range of services such as bitcoin trading, blockchain project incubation (they are already working with several), and decentralized finance, among others.
Its crypto trading volume is almost one billion daily and has approximately 8 million registered users.
Using a crypto exchange or managing your wallet
When it comes to crypto, volatility is the name of the game. The prices of coins can fluctuate wildly from day to day and even from hour to hour. That’s why many people choose to use a crypto exchange.
Using an exchange platform has its risks, though. Crypto users must be aware of it. For one thing, you’re entrusting your coins to a centralized platform. It means you are not in control of your private keys. You could lose your coins if the exchange is hacked or goes bankrupt. So, while using an exchange can make trades easier, it’s essential to be aware of the risks involved.
Not your keys, not your coins.Popular saying in the crypto world.
Managing your wallet might sound like a good idea at first. You’re in complete control of your private key, and no one can take your funds without your permission. But there are some severe downsides to this approach. Foremost, it’s much more difficult to back up and secure your private keys. If you lose your private key or it gets stolen, your funds are gone forever.
Managing your wallet generally requires a higher level of technical knowledge. Unless you’re confident in managing your private keys securely, it’s generally best to leave the job to a professional.
Ingeniero en sistemas con interés en gadgets, startups, programación, ciberseguridad y machine learning.