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The main advantage of cryptocurrency is its decentralization, so that all financial transactions take place exclusively between users, without the intervention of any governing bodies. However, not every exchange supports this principle. Moreover, most cryptocurrency transactions still take place on so-called CEX or Centralized Exchange - centralized cryptocurrency exchanges. In this article we will tell you what CEX is, how they work and which exchange is better to choose.
What are centralized crypto exchanges?
CEX is a good entry point for new users discovering cryptocurrencies. It is the most understandable and secure way to make trading operations, protected from fraud, hacking and other problems that often bring the principles of decentralization. Behind all transactions there is an intermediary, a company-owner, which makes the exchange, controls all transactions, maintains the platform and much more. Accordingly, the centralized exchange charges a commission on any transactions to offset the cost of its operation.
At its core, CEX is virtually no different from banking organizations, performing their basic functions, but in the field of cryptocurrency. Acting as an intermediary, this exchange greatly facilitates the work, helps restore access to the lost account and in general is more secure than the local storage of cryptocurrency.
The advantage of cryptocurrency exchanges is the low entry threshold for many enthusiasts who do not have enough technical skills for decentralized trading. Centralized ones, on the other hand, store the currency, secure it, and transfer the coins between buyers and sellers. All of this is usually handled by a clear interface and built-in instructions.
The Best Centralized Cryptocurrency Exchanges
Based on the criteria listed above, we've gathered 8 of the most popular and trustworthy centralized crypto exchanges. If you are planning to start cryptocurrency transactions, we advise you to pay attention to them first.
1. Binance
Binance currently tops most of the top cryptocurrency exchanges, ahead of both decentralized and centralized competitors. It was launched in 2017 in the PRC, but after a few years the company's management was moved to an office in Malta with a more loyal legal environment. The reliability of the exchange can be judged by the fact that new platforms make their first listing on Binance, and then go to other sites.
The site has three levels of verification:
without verification - such an account has a number of restrictions and cannot withdraw more than 2 BTC per day;
first level verification - removes the restriction on cryptocurrency withdrawal up to 100 BTC per day;
second level verification - is not limited by withdrawal amounts.
Binance supports more than 300 tokens, from BTC and Etherium to its own altcoin BNB. The latter is the most advantageous for trading, as it has significant discounts and savings on commissions.
Binance's development has gone beyond cryptocurrency transactions. The company has launched a token-linked platform for organizing startups and also provides training at its own academy. The exchange is also able to issue bank cards, works extensively with fiat and greatly simplifies many currency transactions.
Among the advantages are:
high liquidity and speed of transactions;
a wide range of tools for trading and investing;
constantly expanding list of cryptocurrencies;
direct work with fiat;
SAFU financial cushion that compensates for losses in case of hacker attacks;
low commissions up to 0.1% and lower.
Binance is the best start for newcomers in crypto-trading - clear, reliable, secure, as well as with the Russian interface and without mandatory verification.
2. CEX.IO.
CEX.IO appeared in 2013 in London as a cloud mining platform. However, it soon expanded its functions and became a cryptocurrency exchange, which it still is today. Many experts call it the best place to buy the most popular tokens using fiat. The exchange works with bank cards and offers convenient opportunities for newcomers, conducts instant transactions with various currencies, including dollars, euros and rubles.
With no registration restrictions, CEX.IO connects over 3 million traders worldwide, generating daily transaction volumes of $100 million or more. However, transactions on the platform require verification - without it, everything will simply be closed. In Russia, the exchange is the undisputed leader in traffic, so its interface is also available in Russian. This is also due to the fact that for many users CEX.IO acts as a convenient online wallet, while about 37 percent of users are engaged in trading functions.
Advantages of CEX.IO include:
high reliability, because for more than 99 years the exchange has never incurred losses due to hacker attacks;
built-in fiat-to-cryptocurrency conversion calculator;
high liquidity for large transactions;
referral program with bonus payments up to 30%;
regular promotions and discounts;
mobile application with the full functionality of the older version.
The exchange is officially registered, has all necessary licenses and statuses. CEX.IO will also be a good starting point for crypto-trading due to its extensive help information and intuitive features.
3. BitMex
The Seychelles-based crypto exchange, launched in 2014, is considered one of the leading platforms thanks to its peer-to-peer technology. Its creators are specialists in the field of blockchain and various kinds of web development, so the exchange is constantly developing, adding features and improving protection. Earlier, BitMex also allowed trading in cryptocurrency without verification, but now this possibility is closed - for money transactions it is necessary to confirm their identity by providing their name, location, funding and selfies. The company does an interesting thing with the commission - only traders and takers pay it when trading, and the amount depends on the blockchain load at a particular time.
The exchange is open to residents of all countries, and its interface is available in five world languages, including Russian. All detailed trading, blockchain, and digital currency manuals are also translated, allowing for a quick understanding of the platform's principles and functions.
Among the advantages of BitMex:
Mandatory verification reduces the number of fraudsters on the platform;
Negative commission for makers and no fee for bitcoin withdrawal;
multilevel referral program with a bonus of up to 20%;
a number of convenient systems to compensate for the risks of margin trading;
convenient derivatives trading.
However, the exchange also has a number of disadvantages. Thus, of all cryptocurrencies BitMex supports only BTC, which significantly limits its use, as well as it does not work with fiat. In addition, the platform has no mobile application, offering an alternative only in the form of a web version of the site. Otherwise, BitMex is suitable for both beginners and advanced traders looking for a large and liquid platform with bitcoin as the main one.
4. Bittrex
Bittrex is one of the oldest crypto exchanges, which has repeatedly proved its convenience and reliability. Founded in the U.S. in 2014, the platform is constantly developing and regularly adds new tokens, as well as closely monitors user feedback. Therefore, the exchange carefully controls the selection and removes tokens from the listing with various technical problems or numerous user complaints.
The exchange is managed by cybersecurity specialists who previously worked for a large company, so Bittrex is reliably protected from hacking and hacker attacks. All of the users' currency is in cold storage, but there is no anonymity on the platform. Additional protection for users is the mandatory verification of the account for trading, namely photos of documents and selfies.
Note that Bittrex does not work everywhere - during the global update 2020 customers from Ukraine, Belarus and several other countries were disabled. In addition, the platform has no Russian language, which is partially compensated by a clear interface.
Of the advantages of Bittrex we note:
high liquidity, which brings the exchange to the top among the peers;
reliable protection and insurance of client deposits;
regular updates, avoiding unreliable tokens, preventing scams and fraud;
work with different types of cryptocurrencies and fiat, support more than 100 pairs;
own cryptocurrency;
referral program with a discount on commissions.
Bittrex commissions depend on transaction and currency type, but they are not the lowest, so it's worth considering when working with the exchange. Limits are also limited even for verified accounts and are 100 BTC per day.
5. KuCoin .
The most popular cryptocurrency exchange from Hong Kong. Having started in 2017 with $5 million in sales, KuCoin now has a daily turnover of $3 billion or more. Such a rapid takeoff was provided by the support of the most popular currency pairs with a total account of 300, work with users without restrictions on countries, as well as a clear interface in several languages, among which there is Russian.
The crypto-exchange requires mandatory verification before the start of work, otherwise the account will not have access even to the basic functions of KuCoin. The platform offers several types of trading, among which are instant exchange between users, margin and spot trading, as well as the sale of futures. KuCoin gives users the opportunity to earn by other methods, such as renting cryptocurrency in debt at a certain interest, deposits into pools and so on. In addition, the platform regularly arranges promotions, campaigns and airdrops.
KuCoin is well suited for beginners, offering them a special demo account for training. With its help, you can understand the basic principles of trading and other features of it before you spend cryptocurrency. Among the advantages:
No commission when depositing cryptocurrency;
a wide choice of tokens, as well as ways to sell them;
own KCS token with a number of additional features and discounts when trading on the exchange;
convenient mobile application;
cryptocurrency banding;
active work with fiat.
The daily withdrawal limit for cryptocurrency is 2 BTC. Considering training, tips and a whole demo account, KuCoin is well suited for beginners who want to try themselves in advanced crypto trading.
6. Huobi
An exchange from the People's Republic of China that has been operating since 2013. It supports all current types of cryptocurrencies and regularly adds new tokens, as well as being in the top in terms of daily trading volume. With its simple interface and advanced features, this marketplace will be a good start for beginners, while not disappointing experienced traders, who will discover many useful features.
Huobi has a wide range of income opportunities. Just like in KuCoin, you can lend coins at interest, do staking, spot and margin trading, conduct OTC transactions. Verification is voluntary. The only restriction for unverified accounts is the absence of margin trading, otherwise the platform is open to all.
As an additional incentive, Huobi has launched its own token, which significantly reduces the amount of commission. The exchange also has a HUSD token tied to fiat and issued in conjunction with PAX. One such token will always be worth $1 regardless of external circumstances.
Huobi does not limit users to different countries, but has a number of features that are worth considering For example, for some currencies here is quite high minimum amount for withdrawal, which in the case of small transactions can cause problems. In addition, the interface is translated into Russian, but not completely.
The advantages of Huobi include:
The widest range of features for earning both active and passive;
high liquidity and speed of all types of operations;
independent mobile application with all the features of the older version;
Incubator for learning trading for beginners;
high level of security, protection from hackers and financial cushion.
Huobi is one of the leading centralized crypto exchanges around the world, which is why it can be regularly found in a wide variety of tops and picks. It is able to help a beginner to understand crypto-trading and satisfy a specialist with its functionality and features.
7. Gate.io.
Gate.io is another Chinese crypto exchange with good reputations and great functionality. The platform gained great popularity due to the support of many types of tokens and minimal commission, as well as the localized interface. Among the support languages there is also Russian, which greatly facilitates the first steps for beginners. The mobile application, in turn, allows you to make transactions from anywhere, without limiting the functionality of the exchange in any way.
It should be noted that Gate.io does not support fiat currencies, so transactions with them are prohibited. Instead, you can buy cryptocurrencies on the exchange with a bank card. Verification is not required to get all the features, but it greatly improves the security of the account.
Gate.io covers spot and futures markets and also has its own token. Its use allows for lower commissions on the platform and savings. Other advantages include:
A good reputation with no scams or scams;
great discounts on all currencies, including the exchange's native token;
no obligatory verification for trading;
flexible features and a lot of possibilities.
Gate.io is a good and active exchange that has not stopped developing over the years.
8. Kraken .
One of the oldest cryptocurrency exchanges - it was founded in 2011. During this time, the platform has undergone a number of positive changes, significantly improved its functionality and generally became one of the leading cryptocurrency exchanges in the world. With the exception of some Asian countries, Kraken does not restrict trading, so you can work with it from almost any country.
The main feature of the crypto exchange is the dark pool, which significantly distinguishes it from its competitors. This feature means a hidden order book that users cannot view. This limits each trader's knowledge of prices to his or her own transactions. In this way the exchange protects itself from deliberate price gouging or falling prices. The platform requires mandatory verification, and the interface is translated into many languages, including Russian.
Among the advantages:
Minimum commission of 0.1 to 0 percent depending on the transaction and token;
Excellent reputation and customer support;
work with fiat and bank cards;
prompt technical support;
high liquidity.
It should be noted that Kraken verification is multi-level and rather strict - without the first level users are not even able to trade cryptocurrency. This is worth bearing in mind before starting to work.
Basic criteria for choosing a cryptocurrency exchange
Today's cryptocurrency market is full of a huge number of centralized exchanges, so it is quite difficult to choose the first and suitable organization. Pay attention to the following criteria of trading platforms:
Territorial coverage. Some centralized crypto exchanges are tied exclusively to a certain country, or have restrictions on working with residents of foreign countries. The best choice would be an organization with an official representative office in the country, because this will allow you to have an account and conduct all transactions in full confidence in their safety;
Length of time on the market. The longer the crypto exchange works, the more reliable it is. During this time, it manages to gain reputation and clients, which proves trust to it. However, the length of work does not always correlate with a good reputation - for example, Binance offers its services for only five years, but already enters the top 3 crypto-exchanges by the amount of all monetary transactions;
the amount of commission. Some exchanges disclose the fees they charge, while others hide this information. It is desirable to choose the first option and compare it with the competitors to get the maximum profit;
stability of work. Crypto exchanges are subject to serious stress and periodic attacks, so it is important to choose the most stable and reliable company in this regard. Social networks, news and other sources of information will help in this.
Note that CEX are in many ways analogous to banking companies for cryptocurrency. The same applies to security, as attacks on cryptocurrency exchanges by hacker groups have greatly increased. However, because of the convenience, extensive functionality, ease of working with currency, as well as large and fast trading volumes, many choose centralized exchanges