Deciding what centralized exchange (CEX) to use is one of the most vital decisions you will make in your crypto investment strategy. Today, CEXs play a crucial role in enabling the conversion of fiat into crypto. As such, the market is filled with thousands of options. Choose the wrong CEX and you can end up paying higher fees or even lose your crypto.
Choosing what CEX to use is a big decision that shouldn’t be taken lightly. The good news is that you won’t have to spend the rest of the month doing research. Some platforms have set the standard in terms of security, usability, and functionalities. Here are the top 5 centralized exchanges to up your crypto strategy in 2021.
Binance has dominated the CEX sector for years. The platform entered service in 2017 and quickly rose to the top position in the market. Much of this growth can be attributed to the exchange’s original launch strategy. Unlike Coinbase, Binance didn’t include fiat trading pairs at first. This decision enabled the exchange to provide mousers with re flexibility and coin selection as it had fewer regulatory requirements.
Binance pioneered the exchange token concept. Users can save on their fees and earn extra ROI opportunities by using the BNB token. This utility token can be staked to secure a passive income as well. Businesses can save on listings when they pay in using BNB.
Notably, in September 2020, Binance launched its fourth-generation blockchain. The Binance Smart Chain provides the exchange with a host of DeFi features and more. For example, the Binance Launchpad enables startups to launch Initial Exchange Offerings (IEO). An IEO is a crowdsale hosted on an exchange. They are growing in popularity because they provide more liquidity and a smoother overall experience for all parties.
Coinbase is one of the top performing exchanges in the world. The platform is fully regulated and requires users to submit full documentation to trade. As such, the exchange provides exceptional consumer protections. Consequently, it’s also a favorite among large institutional investment firms.
Coinbase is a licensed brokerage firm. This designation enables the exchange to sell you crypto directly for fiat. The network also operates as a regulated custodian with insurance. These features combined with the fact that the network has never been hacked successfully make it a popular option in the market.
Notably, Coinbase is designed to cater to new traders. Coinbase’s user-friendly interface makes it simple for new users to choose from the top projects in the market. There is a limited supply of projects, but they are among the best. As your trading skills develop, you can find more features on Coinbase Pro.
The Gemini Exchange was introduced to the market by the Winklevoss Twins. The pair is best known in the industry as the first Bitcoin billionaires. Interestingly, the Gemini Exchange operates as a New York State limited liability Trust rather than a Bitlicence. This designation enables the exchange to provide service more akin to Wall Street.
Gemini offers a smaller selection of coins than Binance but all 20+ projects are solid performers. You don’t need any previous experience to navigate the exchange. It’s designed to streamline your trading on all levels. Additionally, the network provides a fiat on-ramp and is FDIC insured.
Gemini leverages enterprise-grade security features to keep your cryptocurrency safe. The network keeps the majority of user funds in cold wallets. A cold wallet is a wallet that is not connected to the internet. This strategy keeps hackers from being able to access these funds. AS such, Gemini has never been hacked.
Bitmex provides a multi-currency fiat onramp for users and advanced features that are hard to find on the competition. You can buy crypto directly using Yens, dollars, and Yuans. This flexibility provides more liquidity to the platform. Additionally, this strategy adds more trading pairs.
Bitmex supports derivatives trading. As your trading experience rises, you may want to consider expanding your trading into derivatives. Trading derivatives differs from trading cryptocurrencies directly in that you don’t trade crypto. Specifically, when you trade options, you are trading an agreement to sell a particular asset at a pre-agreed price at a later date.
The exchange provides margin and leveraged trading options. Both margin and leveraged trading require experience as they increase both your reward and risk opportunities. Bitmex supports 100x leveraged trading. You can also short using trading. Shorting is an advanced strategy that enables traders to profit during market downturns.
Yo Bit ranks among the top exchanges in terms of trading volume and liquidity. The network has earned a reputation as a reliable and performance-based centralized exchange. Yo Bit users are privy to a variety of fiat trading pairs and a massive selection of coins. Notably, there are 800+ coins and tokens available to users at this time.
Yo Bit allows you to stay on top of your investments with an easy-to-use interface that supports charting and other helpful features. Additionally, the network has a low fee rate when compared to some of the other top exchanges. Specifically, there is a flat maker-taker fee of 0.2% on every trade.
Yo Bit is based out of Panama City and is not regulated. The exchange offers a private trading experience without intrusive KYC/AML requirements. The network functions as a custodial, centralized exchange that offers access to other popular blockchain services for both individuals and enterprises. Also, companies host an initial exchange offering (IEO) to get their project in the market.
Stick with the Best
Now that you know the top 5 centralized exchanges to take your trading strategy to the next level, you can trade your crypto in confidence. It’s recommended that you stick to these reputable platforms to keep your digital assets safe and your peace of mind intact. All of these platforms can provide you with the security and functionalities you need to secure ROIs.