As you journey further into the blockchain sector, it becomes obvious that there are more crypto exchange options than ever. Today’s crypto investors must wade through a seemingly endless parade of exchanges to find the right fit for their trading style. Thankfully, some platforms have proven to be a level above the competition.
Different Types of Exchanges
To find the right exchange to meet your needs, you first should grasp the different exchange types available today. The first exchange type and most popular are CEXs (centralized exchanges). These large platforms provide high usability and functionality in the market. However, their centralized nature makes them an ideal target for hackers.
The next option in the market is what’s known as DEXs (decentralized exchanges). These networks enable users to trade cryptocurrencies in a non-custodial manner. This designation means that your crypto remains in your custody until the trade occurs. This approach is safer because it reduces attack vectors. It also ensures you remain in control of your digital assets.
The last type of exchange in the market is hybrid. These exchanges attempt to combine features from the DEX and CEX markets to improve the user experience. Hybrid exchange platforms offer a unique combination of features but are still very new to the market. As such, there are not many reputable options available yet.
Things to Consider when Making Your Decision
There are some things that you need to consider before you settle on the best type of exchange for your trading style. For one, it’s vital to understand that there is no one-size-fits-all in terms of exchanges. In many instances, traders will leverage multiple networks to get the best returns. Here are some of the factors that you should examine when making a decision.
How Often Do You Trade?
The first thing to consider is how often you trade. If you are a day trader, then you are going to want to find an exchange that provides incentives for those with more trading activity. There are DEX and CEXs that reward you for making trades in different ways. For those who trade daily, these returns can provide another way to buffer against any losses.
How much Do You Trade?
Another important consideration should be the size of your trades. It’s easy to rack up a lot of trading volume without ever realizing it. For example, if you trade the same $5000 in crypto daily for ten days, you are already going to be over $50,000 in trading volume. Also, the size of your trades will determine what type of exchange features you require. If you are a large Bitocin trader, you may want to use a network that supports the Lightning Network to save on fees.
How Much Privacy Do You Require?
Another crucial area to consider is how much privacy you require. CEXs like Coinbase and Binance will need you to submit your identity and additionally personal documentation. Sadly, these regulatory requirements have gone on to bite traders in the butt, as there have been multiple data breaches at these organizations over the last few years.
Those seeking a higher level of privacy should look into DEXs. These p2p trading platforms seldom require any personal information. Instead, they require you to connect to a network-approved wallet. This approach is faster, simpler, and reduces any future risk of identity theft due to data breaches at the exchange.
How Much Security Do You Require?
Security should be among your main concerns. Your security protocols should reflect the amount of crypto you intend to hold and trade. For example, if you have a few hundred dollars in cryptocurrencies, you may opt for a mobile wallet, or even decide to keep your crypto on a custodial exchange.
For small holdings, this type of lackluster security will do, as the losses you potentially face are minimal. However, once you start to gain more holdings, you need to improve your security. DEXs provide non-custodial trading options, which means that your crypto remains in your wallet until the trade completes. This approach is much safer because you are never separated from our assets.
Additionally, there is a time in every trader’s life when they need to consider getting a hardware wallet. Companies like Trezor and Nano offer the market devices that provide top-notch security. Hardware wallets are the securest way to store your crypto. They provide this extra security because they keep your crypto offline in cold storage.
Another simple, yet powerful feature of hardware wallets is the button confirmation. When you send crypto from most hardware wallets, there is a hardware button that must be pressed to approve the transaction. Even the greatest hacker in the world can’t press this physical button without holding the device in their hand. As such, hardware wallets are ideal for all serious traders.
Top Exchanges for 2022
It’s been an exciting year with major corrections causing many traders to rethink their strategies. Now that you have some guidance in discerning the best exchange for your trading style, it’s time to review some top contenders. Here are the best exchanges to secure returns in 2022.
At the top of the list is the META Exchange. This high-performance exchange leverages the full potential of the META blockchain to provide transaction throughput and scalability on par with the NASDAQ stock exchange. Additionally, META DEX users have an excellent selection of features to drive wealth generation.
The METANOMICs universe includes a next-generation, multi-asset-backed stable coin, DeFi features, and much more. META DEX users can trade their stablecoins for other popular projects in the market. The network operates in a non-custodial manner that improves security. Additionally, there are a host of in-wallet passive income features such as staking.
The Onramper portal streamlines the entry process of entering the blockchain ecosystem. Users can enter the META DEX using 50+ fiat currencies across 150 countries. The dashboard is easy-to-navigate and the process only takes a few minutes to complete. This open approach falls in line with DeFi’s larger purpose to provide more opportunities to the community.
META 1 users may also secure 10% APY when they open a DeFi savings account. This game-changing feature provides low-risk high-yield returns. In comparison, the average US savings account pays out a measly 0.03% APY to savers. This low rate isn’t enough to keep up with basic inflation, let alone the hyperinflation that the world is currently heading towards.
It’s one thing to secure crypto returns, but where can you spend your profits? META 1 developers spectacularly answer this question through the introduction of the META VISA. This unique card connects directly to your META VAULT account. When you swipe your card, the system will convert your crypto directly into the fiat currency of your choosing.
This system is a game changer for many reasons. For one, it flips the notion of requiring merchants to accept crypto on its head. Instead, it enables users to leverage the merchant’s current systems in a way that doesn’t create any friction. Users can spend their low-risk passive returns like fiat currency anywhere that accepts VISA using this card.
META DEX users enjoy protection from the most common pitfalls. The network combines everything you need to take your crypto trading strategy to the next level. As such, the META DEX continues to raise eyebrows across the decentralized market.
Mdex – DEX
Mdex is another DEX that has DeFi users’ interest sparked. Mdex was built to help reduce scalability and network congestion concerns found on other networks like Ethereum. The DEX operates as an AMM (automated market maker) which means that traders transact with smart contracts rather than each other.
Mdex integrates a unique liquidity mining feature to offset its fees. This system rewards traders for each transaction. Notably, Mdex is the first major DEX to launch on the Huobi Eco-chain (HECO). The platform recently expanded its services to the Binance Smart Chain and Ethereum networks.
Mdex has grown to become a major contender in the market. The DEX has the record for the highest 24-hour trading volume at +$4.64 billion. It currently ranks #1 on the BSC for 24-hour volume. This popularity was brought on by a combination of its features and its multi-chain flexibility.
Kraken – CEX
Kraken remains one of the best CEXs to trade altcoins. The exchange operates as one of the oldest platforms still in use in the crypto market. As such, it is generally regarded as one of the most successful trading platforms to date. The network has over 4 million active users at this time.
Kraken features a security protocol that has yet to be cracked by hackers. Additionally, the network integrates a high level of personal account security, such as 2FA. You can easily navigate Kraken’s extensive coin selection using the platform’s interactive interface, and the network supports very small starting capital. In this way, Kraken remains a nice option for new altcoin traders.
Kraken’s team remained on the cutting edge of the market. The platform supports both margin and leveraged trading. These advanced trading strategies enable investors to strengthen their position and increase their ROI when done correctly. Notably, leveraged trading strategies require practice to master.
Gemini – CEX
Gemini is user-friendly and well designed. You can buy and sell +20 digital currencies without any prior technical understanding of the market. You can also purchase many cryptocurrencies directly using fiat currency or other cryptos. Gemini has never been hacked and 98% of users’ funds remain tucked safely away in cold storage accounts.
Gemini is a great exchange for new traders seeking a fully regulated experience. The exchange was founded by Cameron and Tyler Winklevoss, the famous Winklevoss twins, and is fully regulated out of New York. The platform is licensed and registered to provide BTC and ETH exchange services. You can load your account using bank transfers or debit card payments. You can even use a credit card to start your trading accounts.
Binance continues to add new features and services. The network remains the largest and most popular CEX available to users today. Binance rose to fame in 2017. The network was unique at the time because it required no KYC and offered a huge selection of tokens compared to competitors like Coinbase.
Notably, Binance eventually added KYC when it integrated a fiat on-ramp, but the decision to wait enabled the network to secure a massive percentage of traders seeking more alternatives to the strict token selection of Coinbase and other CEXs. Today, Binance has grown into a massive ecosystem that incorporates a variety of tokens, features, and even a DEX.
Coinbase is obvious for any exchange list due to its simplistic nature. Coinbase is a regulated, US-based CEX that is among the most recognizable names in the crypto world. The protocol provides valuable services to the market, as the premier fiat to crypto onramp for North America.
Coinbase has expanded its ecosystem since its launch. The network created Coinbase Pro to offer more features and tools to expert traders. However, the exchange has stated that it will stop offering Coinbase Pro features in the future, as it seeks to meld its two platforms into one easy-to-use option for everyone.
Coinbase has higher fees than most of the exchanges on this list, but it has more regulatory protections. The network is fully regulated and insured, which makes it a smart choice for large trading firms seeking exposure to digital assets. Currently, Coinbase provides both individual and enterprise-level trading features.
Crypto Exchanges That Offer More – 2022 Edition Now that you have a firm understanding of the different types of exchanges and the prime options, you are ready to take your crypto strategy up a notch. Remember to always stick to reputable platforms to avoid scammers and protect your holdings. Any of the platforms listed above remain a smart decision and it’s recommended that you familiarize yourself with each to improve your overall market understanding.