Cryptocurrency exchanges play a key role in todays digital asset market, acting as the primary platforms where users can buy, sell and trade various cryptocurrencies. Given the ever-growing nature of digital assets, crypto exchanges are always evolving to cater to all the different kinds of users.
They are begun offering different levels of security, trading fees and a wide range of different features. In todays blog we will look at some of the main crypto exchanges and showcase what they have to offer.
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Binance.
Binance is the worlds largest and most popular crypto exchange. It was founded in 2017 by Changpeng Zhao. Since 2017, Binance has quickly grown to rule the market due to its large range of cryptocurrencies made available to its users. It also boasts low trading fees and some fairly advanced trading features for the most experienced crypto traders.
What are Binance’s best features?
– Wide range of cryptocurrencies: Currently, Binance supports hundreds of different cryptocurrencies and trading pairs.
– Low trading fees: Standard fees on Binance start from as little as 0.1%, with users being able to gain further reductions by paying for cryptos using Binance’s own cryptocurrency, BNB (Binance Coin).
– Advanced trading options: Showing off impressive features such as futures, margin trading and staking have put Binance on-top of all other exchanges.
– Security: Binance also has very robust security measures. These include two-factor authentication (2FA) and SAFU (Secure Asset Fund for Users ) to help protect its users assets and add to their peace of mind.
Where can Binance improve?
– Regulatory concerns: In recent months, Binance has come under pressure from organisations in both the USA and UK. This has made users wary of using the platform for large crypto holdings and staking.
– Region restrictions: Some of Binance’s features are not available to users, depending on the country that the user is located.
Coinbase.
Coinbase is well known for being one of the most user-friendly exchanges, with software and mobile applications that are easy for users new to the crypto space to understand and use. Coinbase was founded in 2012 in the USA. It has built a reputation for complying with various regulations.
What are Coinbase’s best features?
– User-friendly interface: Coinbase’s UI (User Interface) has been designed to be easy for beginners to pick up, while still having all the features that an experienced user is likely to need.
– Strong regulatory compliance: As Coinbase is a publicly traded company, it has the extra bonus of being very transparent, benefitting from an extra layer of trust being given to the users.
– Coinbase Pro: Coinbase offers a more advanced version of the platform for the more experienced cryptocurrency trader. This comes with the added benefit of reduced fees and additional trading tools.
– Security: As with Binance, Coinbase offers very good security to its customers, including 2FA and insured custodial wallets.
Where can Coinbase improve?
– Higher transaction costs: Compared to other exchanges, Coinbase’s fees are more expensive, even more so for instant crypto purchases.
– Support currencies: Coinbase, while offering an impressive range of cryptocurrencies for sale, does fall short of the amount offered on Binance and other exchanges.
Kraken.
Kraken is one of the oldest exchanges on this list, being founded in 2011. It has a good reputation for user security, transparency with its customer base and regulatory compliance, similar to Coinbase. It has always been one of the most trusted cryptocurrency exchanges.
What are Kraken’s best features?
– Impressive security record: Kraken offers cold storage for the majority of funds, 2FA for all accounts and has a history containing very few security incidents.
– Widely supported currencies: Kraken supports a larger number of currencies than other exchanges, including GBP, USD and EUR.
– Advanced trading options: As with Binance, Kraken has impressive features such as futures, margin trading and staking.
Where can Kraken improve?
– User Interface: Kraken’s user interface can be confusing for new users, with certain options harder to find. This makes trading on Kraken a lot more difficult for beginners than an exchange such as Coinbase.
– Withdrawal options: Some of the withdrawal options on Kraken can be quite slow compared to Binance and Coinbase.
KuCoin.
KuCoin was founded in 2017 and has grown rapidly since its creation due to large selection of cryptocurrencies and unique trading features. It has recently found itself to be one of the most popular exchanges for users trading altcoins.
What are KuCoin’s best features?
– Large catalogue of altcoins: Currently, KuCoin supports the largest amount off altcoins of any of the major exchanges, boasting over 600 available currencies.
– Low trading fees: Same as Binance, KuCoin’s trading fees start from as little as 0.1%.
– Advanced trading options: KuCoin offers a good range of features, including futures and margin trading along with lending options.
– KuCoin Earn: KuCoin offers its own staking protocols, allowing users to stake their cryptocurrencies and generate passive income and rewards.
Where can KuCoin improve?
– Regulatory concerns: KuCoin has faced several regulatory issues, mostly in the USA. These need to be resolved for it to hit the heights of the other major exchanges.
– Customer support: Getting support for any issues on KuCoin can be a very slow process, with replies usually taking a few days.
Crypto Analyst‘s Final Thoughts.
It is important for any user in the crypto space to pick the right exchange for their needs as a trader or an investor. If you are just starting out on your crypto journey, using an exchange such as Coinbase would be more beneficial, given the simplicity of the user interface. More advanced users may wish to look at Kraken or KuCoin for some more advanced features and wider range of cryptocurrencies.
No matter what exchange you choose, you must always put security at the top of your list. Always setup 2FA (Two-Factor Authentication) and never share your login details or recovery details with anyone else. Users must also consider regional restrictions when choosing an exchange, as these can have a deciding factor on what options are available to each user.