Centralized exchanges have been used since at least 2011, mainly due to their speed and convenience. In addition, centralized exchanges are easy to use, as they typically offer an “exchange-to-exchange” service. These services connect buyers and sellers through a platform that acts as an intermediary for transactions. If you are interested in crypto investment click the link for more information.
Though it’s important not to confuse them with decentralized exchanges — where those transactions occur in real-time without any third-party intervention — centralized exchanges are still valuable tools for traders everywhere. However, these exchanges differ significantly from regular traditional stock exchanges.
Most importantly, crypto markets operate 24/7 and can be accessed worldwide. You never have to worry about missing out on another potential investment opportunity. But which one is the best? Here is a list of the most popular centralized bitcoin exchange platforms and ranked them by their popularity, ease of use, location (current trading volume), and security measures.
For newcomers who want to get their feet wet in the world of Bitcoin, Coinbase might be what you are looking for. However, this exchange has a few disadvantages, primarily that they don’t offer a decentralized service. Additionally, sign-up can be a little tedious and verification is time-consuming. On the other hand, Coinbase Pro offers commendable features such as instant transfers, in-wallet purchases and multiple accounts for multi-user support.
Bitstamp has one of the highest trading volumes. Trading volume is significant when choosing an exchange as it will give you access to some of the lowest fees available.
Unfortunately, Bitstamp is only available in a few countries, and the number of supported countries is constantly changing. One cool thing about Bitstamp is that it offers advanced trading features such as stop orders and margin trading.
Binance’s centralized exchange is one of the fastest and most secure. It is currently available in nearly every country in the world, except for China and Iran. Moreover, Binance has an excellent reputation for security and its support staff.
Unlike most centralized exchanges that require account verification before making a deposit, Bitfinex offers a lower barrier to entry. By making deposits more similar to peer-to-peer exchanges.
What sets QuadrigaCX apart from other centralized exchanges is its high-security standards. The company uses an advanced cold storage system that ensures traders control their private keys completely. It gives the platform an enormous advantage since most centralized exchanges do not offer such a deep level of security.
BitMart is a crypto-only exchange that offers more than 200 tokens to trade on the exchange. Bitmart offers a professional trading platform with advanced charting tools, but it has relatively high fees compared to most other exchanges in the industry.
Cex.io is another platform that offers meager fees and a wide range of encryption tools to ensure that any third parties cannot intercept your private keys during a transaction (a common problem on centralized exchanges).
CEX.io has many similarities with Coinbase, including a simple user interface that should appeal to people new to cryptocurrency investments. However, this exchange is also one of the most popular centralized exchanges in the world due to its relatively low fees and well-known reputation for being reliable and secure.
Bittrex has the second highest trading volume in terms of cryptos but only offers a mobile app for its users to give it an edge over other “centralized” exchanges. The Bittrex exchange has been around since 2014 and is available in most countries except China, Iran, North Korea, Syria and Venezuela. Bittrex does not require a sign-up process; however, you must verify if you want to deposit fiat currencies like USD or EUR into your account.
Gemini is a regulated, licensed platform that allows users to trade fiat currencies on the exchange. It was founded by the owners of the Gemini Trust Company, and it is a member of the New York State Department of Financial Services (NYSDFS).
Founded in 2011, Kraken is one of the oldest bitcoin exchanges in existence today and has grown tremendously since its inception due to its reputation for reliability and security. Recently, Kraken was also acquired by Payward Inc., which is another well-known cryptocurrency company. Kraken offers advanced trading features and tools not listed on this page, including stop loss orders and margin trading.