Cryptocurrency traders can choose from two main kinds of exchange, either centralized or decentralized platforms.
Today we’re going to look at centralized exchanges (CEXs), which are the main entry point into the crypto world for beginners. They’re considered to be more user-friendly and have smoother on-ramps, hence they’re a good starting point for new users.
It must be noted that CEXs are custodial in nature, meaning that they control the wallets that hold user’s funds. DEXs, on the other hand, are non-custodial, meaning that users control their funds within their own wallet, and are responsible for the security of those assets.
New crypto users often prefer to store their funds on a CEX, at least to begin with, as they’re unfamiliar with the intricacies of crypto wallets. CEXs have other advantages over DEXs, including that they generally offer better rates when swapping tokens due to their vast liquidity. This is in contrast to DEX platforms, where trades can often suffer slippage, meaning they’re executed at a higher price, due to a lack of liquidity. CEXs can also support higher volume trading.
Another key difference between CEXs and DEXs is that the former support fiat to crypto transactions, and vice versa, which is necessary to onboard users into crypto for the first time. Because of this, CEX platforms also require users to sign up and prove their identity, whereas DEX platforms generally allow fully autonomous trading.
If you’re ready to embrace crypto and want to find the best CEX platform to get started, look no further than these six gems:
Binance
Perhaps the best known crypto CEX of all is Binance, which is widely cited as having the highest trading volumes of any platform. Binance’s advantages include a wide selection of cryptocurrencies to trade, relatively low fees and global accessibility.
The company offers fiat to crypto transactions in more than 40 different fiat currencies, while its digital assets number in the 300s. There are no deposit fees, and trading fees are among the lowest in the industry at a maximum of 0.1%, depending on the exact token.
Binance supports a wide range of trading features through its pro user interface, and caters to new users with a friendlier, but more limited UI for beginners. Users can trade futures and options, and have access to various order types. Binance also provides a wealth of educational resources for users. On the other hand, U.S. users should note that the Binance.us domain is much more limited in terms of trading functionality and supported tokens. Binance also insists upon a lengthy identity verification process that may put off some users.
OKX
OKX was founded in 2017. It’s a Seychelles-based platform that describes itself as the world’s “most powerful” exchange, catering to users in more than 100 countries.
What sets it apart is its support for 344 tokens at the last count and its advanced trading features, including spot, leveraged perpetuals, options and futures trading. In terms of fees, it charges 0.08% and 0.1% on maker and taker orders, which is below the industry average.
OKX supports more than 30 fiat currencies and a wide range of payment options, including credit and debit cards, bank transfer, bank wire, and also Apple Pay. Other benefits include its decentralized finance services, which provide a way to earn a passive income through saving, staking and lending liquidity. OKX has its own utility token, known as OKB, and extensive support options including phone, live chat and email.
On the other hand, OKX is often described as being somewhat complex, with a UI that’s more suitable to professional traders and a complex, multi-tiered fee structure that’s not so easy to understand.
MultiBank.io
A relative newcomer on the crypto block, MultiBank first made its name in the traditional derivatives trading market before expanding to digital assets. It supports 90+ crypto trading pairs with an ability to handle 9 million trades per second via a user-friendly platform that’s aimed at beginners and pro traders alike.
MultiBank.io offers low fees and an impressive 125:1 leverage on certain digital assets, including Bitcoin and Ethereum. Fiat to crypto transfers are enabled via credit and debit cards, bank transfers and Apple Pay.
Where MultiBank really stands out is that it acts as a kind of digital bank, complete with a payment gateway to support crypto spending and online blockchain custodial accounts. It’s also a hub for all your trading in one place, with access to traditional markets such as Forex, stocks and shares, commodities, indices and more through Multibank Group
MultiBank also boasts a strong reputation as one of the world’s most heavily regulated trading platforms. It uses advanced security measures and is regulated by more than 11 organizations across five continents, meaning users can rest assured that their digital assets are safe in its custody.
Nexo
The Swiss-based trading platform Nexo is more than five-years old and handles over $12 billion worth of assets under management, serving over 4 million users in 200 countries.
Its platform offers access to more than 40 different cryptocurrencies and boasts over 300 trading pairs. It also offers a lending facility that sets it apart from other platforms, with interest rates ranging from 0% to 13.9%. Loans are approved on the spot and there are no credit checks. Users can access collateralized loans of up to $500 by depositing 38 different cryptocurrencies as collateral. Users can also become lenders through Nexo’s platform, earning up to 17% in annual interest.
Nexo also boasts top notch security, with its Security, Trust & Assurance Registry (STAR) Level 1 Certification and Service Organization Control (SOC) 2 Type 2 audit. It is also audited in real-time by the digital asset accountancy Armanino.
The NEXO utility token provides useful benefits to holders too, and the 24/7 live chat support is reassuring to have. The only major downside is that Nexo supports fewer crypto tokens than many rival platforms.
Gemini
There are good reasons why Gemini is traditionally always featured in lists of the best crypto exchanges, with its availability in all U.S. states, its strong security and beginner-friendly platform making it an ideal choice for so many users.
It also offers numerous educational resources for those wanting to learn about crypto, robust security standards, an over-the-counter trading platform and a crypto loan feature that allows users to borrow digital assets or lend them to others to earn APY at up to 7.4% per year.
Gemini currently lists more than 40 different cryptocurrencies on its platform, with numerous trading pairs. And there are more advanced trading options for experienced users.
On the downside, Gemini’s fees tend to be at the higher-end of the spectrum, and its fee structure can be difficult to understand. It doesn’t support margin trading or short selling, and customer support is only available via email.
