The cryptocurrency market has been making notable accomplishments from the time of inception to date. It all started with the popularization of Bitcoin, the first cryptocurrency that came into being in 2009. In the following years, multiple cryptocurrencies started to roll out, which are termed altcoins (cryptocurrencies other than Bitcoin).
How Can Cryptocurrencies Be Defined?
Cryptocurrencies are virtual currencies that are pinned with exceptional security features and can be exchanged on centralized and decentralized platforms. If users choose the decentralized exchange platforms, they can trade the cryptocurrencies anonymously. Notably, there is no involvement of intermediaries, which will otherwise involve middlemen fees. Hence, cryptos are eyed as a perfect investment in multiple aspects.
Centralized Vs. Decentralized Exchange Platforms
Binance, Coinbase, Kraken, Gemini, etc., are popular centralized exchange platforms. So, obviously, these platforms will have a central authority that will monitor the exchanges. Suppose if the system fails, then the entire network of the system will shut down. However, these centralized platforms provide insurance that can be claimed at times when the exchange platform fails.
Whereas decentralized platforms don’t have a central authority. Also, even if a computer in the network fails, it will not affect the other computers connected to the same network.
Top factors to consider while choosing the crypto exchange platform
As the desire for investing in cryptocurrencies started seeing a spike, the number of exchange platforms also started increasing. However, traders will have to see through some crucial factors before relying upon the exchange platform.
The security of the exchange platform should be the top concern for crypto traders. Know Your Customers (KYC) is one of the basic procedures that will be carried out by cryptocurrency exchange platforms as part of their security protocol. Some platforms require a selfie of the users along with their passport’s first page. However, there are platforms that let users remain completely anonymous.
Binance, Coinbase, and Kraken are some of the secure exchange platforms and have the easiest process of user verification.
The volume of transactions that happened to date is also a factor in deciding whether to choose the exchange platform or not. In general, it is recommended to see through the transaction volume of the platform on a 24 hr basis as well as a monthly basis.
Availability of different cryptocurrencies
Binance is one of the familiar cryptocurrencies, and there are different cryptos like Ethereum, Stellar, Ripple, Litecoin, etc. Exchange platforms, in general, support multiple cryptocurrencies to attract investors. Hence, for choosing an exchange platform, the availability of multiple cryptocurrencies is also a factor.
Most of all, users must consider the number of fiat currencies a platform offers. In order to buy the desired cryptocurrency, investors have to pay for them via fiat currencies. Of course, popular fiat currencies like USD, GBP, and EUR will be mandatorily present in most of the platforms. Binance supports 40+ fiat currencies.
Obviously, exchange platforms will charge commissions, and the percentage of commission will differ from platform to platform. By nature, everyone will look for a platform that charges fewer commission fees.
Cryptocurrency Exchange Platforms That Tops The List
Binance is one of the best exchange platforms as they boast several advantages for investors. The platform charges low commissions compared to others, supports multiple fiat and crypto currencies. Notably, the advanced trade chart option is also an impressive trait of Binance.
As per CoinMarketCap, the trading volume (24 hr) of cryptocurrencies in Binance amounted to $51,219,510,604.
Solid security features and an easy-to-use interface are the chief traits of CoinBase. This platform has a variety of altcoins and provides high liquidity. CoinBase Pro is an advanced version, where users can view trading charts and the version has a cheaper fee structure. The transaction volume of this platform as per the last 24 hr is $10,487,652,568.
Gemini is another leading crypto exchange platform that is known for its multi-platform support and easy-to-use interface. Investors can use this platform through the web, iOS, and Android apps. Gemini charges a 0.50% convenience fee. Some of the crucial features offered by this platform are Gemini Wallet, Gemini Earn, Gemini Pay, Gemini Custody, and Gemini Dollar.
$2,929,378,580 is the trading volume of Kraken as of the past 24 hrs. Kraken’s one of the highlighting features is the number of cryptocurrencies it supports. It supports 80 cryptocurrencies and multiple platforms. Alongside, this platform supports 7 types of fiat currencies.
And that’s a clear description of the top cryptocurrency exchange platforms. Hope you had a better understanding of the definition of cryptos, the types of exchange platforms, and the top ones.