According to the online monitoring site CoinMarketCap, there are over 550 cryptocurrency trading platforms operating on the global digital asset market in 2023. The emergence of new cryptocurrency exchanges in 2023 is a guaranteed pattern, since, despite pressure from various state regulators, this area of the crypto industry is steadily actively developing, introducing advanced Blockchain technologies, expanding the functionality of trading platforms focused on integrating additional earnings options on digital assets, including non–interchangeable (NFT) tokens, other products The DeFi segment.
Naturally, a proportionately growing army of cryptocurrency users who are striving to master the basics of cryptotrading and move on, increasing their own professionalism in speculating on the volatility of digital asset quotes, have a number of pressing issues. Most of the latter concerns crypto exchanges – how to choose a reliable platform for real-time trading in the world and not run into a SCAM project, where it is better to speculate on a centralized (CEX) or decentralized (DEX) cryptocurrency exchange, what options for crypto trading, conditions are offered and put forward online services, other issues. On our website, you can get acquainted with the rating of cryptocurrency exchanges for beginners, study expert reviews of trading platforms, as well as get comprehensive answers to the above, other profile questions.
The cryptocurrency exchange is an Internet resource (website) offering everyone to buy / sell digital assets, earning on the difference in the exchange rate of the latter. This is a traditional variant of crypto trading, which is called spot trading. In addition to the spot market, TOP crypto exchanges offer margin, futures trading, over-the-counter (OTC) operations, direct exchange of crypto assets on a peer-to-peer (P2P) platform, additional passive ways to make a profit: staking, farming, liquidity mining, cryptocurrency deposits, etc.
What is the difference between crypto exchange sites in the rating?
Market capitalization, liquidity (trading volume), attendance traffic, listing (list of supported cryptocurrencies), functionality, including the presence/absence of financial transactions with fiduciary money (national currencies: rubles, dollar, etc.), as well as the terms of crypto trading – limits and commissions for deposit/withdrawal of funds, trading fees for takers/makers, other requirements. However, the main difference between the best sites lies in the specifics of the latter, which directly affects the offers and conditions of a particular cryptocurrency exchange. Today, there are 2 types of online services on the crypto market – cryptocurrency CEX and DEX exchanges. The first ones include Binance, Coinbase, Kraken, KuCoin, Bitstamp, Bitfinex, Bybit, and other centralized TOP cryptocurrency exchange sites.
To get full access to the functionality of CEX-crypto exchanges, it is mandatory to register an account and pass verification (KYC/ AML) of an authorized account. In return, the following opportunities open up to the trader:
unregulated depositing of funds in digital assets and fiduciary money, as well as unlimited withdrawal of financial assets;
access to all markets supported by the official online service – spot, margin trading, derivatives trading (futures, options, swaps, etc.) and tokenized assets (securities, stocks, gold, oil, other traditional instruments for stock exchanges);
over-the-counter (OTC) platform for institutional, corporate participants of the digital asset market;
peer–to-peer (P2P) service for direct conversion of cryptocurrencies between holders of digital assets – as a rule, transactions are not subject to commissions from the crypto exchange;
passive earning options are staking, cryptocurrency lending, depository, liquidity mining, working with arbitration and other options.
An alternative for those who do not want to transfer confidential information about themselves to third parties is decentralized platforms of the rapidly developing DeFi segment of the crypto industry. For example, Uniswap, PancakeSwap, dYdX, DODO, Curve Finance, other online services. DEX trading platforms are crypto exchanges without verification, trading on which you can start immediately after connecting to the online service of your own crypto wallet. In addition to maintaining anonymity and ease of registration, there are no limits on the deposit/withdrawal of funds on decentralized trading platforms, only the owner of digital assets has access to cryptocurrencies, exotic coins can often be found in the listing – high–risk tools that can literally make a crypto trader rich in a few minutes or bankrupt a user in the same time, various options for passive earnings are supported.
CEX and DEX crypto exchanges, along with their advantages, have a number of disadvantages. For the first – identification of the person, dictated to mandatory implementation by global financial regulators. Due to the Western sanctions policy towards the Russian Federation and residents of the Federation, the latter have been denied direct access to many CEX Top cryptocurrency exchanges. DEX services that are not regulated by anyone, where it is possible to log in without verification, do not have such a problem. But the lack of liquidity even for TOP cryptocurrencies, price slippage is almost a common phenomenon. The incognito of the beneficiaries of the best DEX trading platforms is also alarming.
The Best Ways to Trade Cryptocurrency in 2023
Cryptocurrency exchanges offer various functionality. However, online services of any profile – CEX– or DEX-crypto exchanges, out of the TOP 30 rankings in terms of capitalization, trading volume, and activity of daily visits to the website offer, as a rule, four main areas of crypto trading:
Classic spot trading. After registration and verification, if a centralized cryptocurrency exchange regulated by the relevant government agency is selected for trading, the trader enters into transactions for the purchase / sale of a crypto asset at the price relevant to the latter, placing an order in the order book.
Margin trading. This type of trading involves the use of leverage – leverage. Binanas, the industry favorite, is leading in 2023. The leverage size is 1X125 – that is, with 1 BTC, you can make transactions for 125 BTC. The interest charged for credit funds is 0.1% daily.
Derivatives market. A relatively new type of crypto trading that allows speculators to trade derivatives on the site – futures/perpetual futures, options, swaps, and other assets. By opening a Long or Short trading position, a crypto trader tries to predict where the price movement of the selected financial instrument will go – up or down.
P2P service. This is a platform for direct exchange of cryptocurrencies, fiat between asset holders without the participation of third parties, including a crypto exchange that offers a peer-to-peer conversion service.
I keep coins in a cold wallet, but it’s safe. All online programs can be hacked.