With thousands of digital and traditional assets available, beginners are often confused about the investment tools they need to master the art of trading. The cryptocurrency market, in particular, has the potential to bring historic changes to your portfolio, but can be a bit complex for novices. But hi! We have what you need; here we explore six main Exchanges you should try at all costs to help you get started.
“I could either watch it happen or be a part of it.” – Elon Musk
What are crypto exchanges?
Before we begin, let’s explain what a cryptocurrency exchange is. Cryptocurrency exchanges are marketplaces where you can buy and sell crypto. The number of exchanges continues to grow as they allow almost anyone across the world to participate.
Crypto exchanges can be divided into centralized and decentralized exchanges (DEX). Centralized exchanges act as an intermediary between parties, providing high liquidity, security and reliability. Although security risks and losses cannot be eliminated in the financial sector, centralized exchanges remain very popular, with Coinbase, Gemini and Huobi Global being among the popular names in the sector.
DEXs, on the other hand, are more suitable for experienced traders. They give traders full control of their assets and security because it is smart contracts and dApps that automate transactions. Popular DEXs include 0x Protocol, Sushiswap, Uniswap, and Curve.
Top 6 Crypto Exchanges for 2022
Binance is, without a doubt, one of the most popular cryptocurrency exchanges and the largest Bitcoin and altcoin exchange in terms of trading volume. Founded by genius Changpeng Zhao in 2017, Binance offers low fees, plenty of financial services, and even its native currency Binance (BNB). In fact, BNB is one of the most traded utility tokens, among the top 10 coins on CoinMarketCap.
Major advantage: One of the best exchanges when it comes to fees.
Kraken is another crypto titan that can help you ride the waves of crypto investing. Founded in 2011 – one of the first BTC exchanges listed on Bloomberg Terminal – Kraken is considered one of the best places to buy and sell crypto. It supports spot and crypto trading features and offers a variety of digital assets. It should be noted here that given the advanced features of Kraken, the platform is preferred by experienced traders. If you are a complete beginner, consult a licensed professional to help you limit bad financial choices.
Major advantage: Advanced features ideal for more experienced traders.
Next on our list is Coinbase. Coinbase is defined as one of the most liquid regulated exchanges in the world. For over a decade, Coinbase has been helping traders access different assets, advanced charting features, and accurate market data. Moreover, it offers lots of rewards, educational content and user-friendly features.
Major advantage: Variety of features that make it extremely beginner-friendly.
Crypto.com is one of the fastest growing exchanges, attracting users from all over the world. With its low fees and deep liquidity, it’s no wonder the company has over 50 million users and continues to grow. Also, the mobile app offered by Crypto.com is one of the best in the market, which helps users to start trading on the go or from the comfort of their own home.
Major advantage: excellent mobile features to help beginners get started.
5. Bitcoin Loophole
While Bitcoin Loophole is not an exchange but a platform that connects traders and brokers, it deserves a spot on our list. Bitcoin Loophole is great for beginners as it helps them automatically connect with a trusted broker who can execute trades on their behalf. Most of the brokers that Bitcoin Loophole works with offer a variety of tools, including copy trading, automatic robots, and demo accounts, and allow users to get started with a small initial deposit. Note, however, that one must ensure that the services offered are regulated in their region.
Major advantage: Ideal for beginners as it automatically connects traders and brokers.
Finally, let’s talk about Uniswap, the first and largest DEX. Proposed by prodigy Vitalik Buterin in 2016 and launched by Hayden Adams, Uniswap allows users to trade Ethereum-based tokens and earn crypto without mining. Note that Uniswap does not accept fiat currency, so you must already have crypto to get started. One of the biggest advantages is its security.
Major advantage: The largest DEX in the crypto world.
Which crypto exchange to choose
The world of cryptocurrency is very versatile, so there are plenty of options to choose from when it comes to exchanges, brokers, and software to help you get started. That said, there are a few things to consider:
- Invest in crypto education: Before deciding to trade, you should familiarize yourself with the assets of your choice, any relevant crypto regulations, your tax liability, etc. You should also invest time in learning how to interpret market data, charts, signals, and trends.
- Consider your risk tolerance: Even if you choose the best trading platform to meet your financial needs, you need to know how to develop an effective risk management strategy and exit a trade. In fact, you should never forget that the crypto industry is very volatile, so you should never trade more than you can lose.
- Diversify your portfolio: While the crypto industry is one of the most lucrative areas in the investment world, experts suggest diversify your portfolio to minimize the risks. So, consider forex trading, stocks, and commodities like gold, oil, and silver.
“When selecting a list of growth stocks for long-term investment, broad risk diversification is the first and most important principle to follow. No one can look forward five or ten years and say what is the most promising industry or the best stock to own.” – T. Rowe Price
Top 6 Crypto Exchanges You Should Try At All Costs: Final Thoughts
Although the top 6 exchanges above have many advantages, note that success and profits are never guaranteed. Indeed, you risk losing all of your capital. So, you should always be diligent before jumping in!