Overview
Centralized cryptocurrency exchanges use intermediaries that facilitate trading transactions and exchanges on the platform, with buyers and sellers being matched by the exchange. The clients on these cryptocurrency exchanges rely on the intermediary agent to handle their crypto-assets and their user funds, the same way that a forex broker or a financial institution such as a bank would.
Centralized exchanges tend to be more beginner-friendly and instead of peer-to-peer exchanges, users can log into a dedicated crypto account on the exchange where they can transact, view their balances, and more.
Centralized exchanges are more likely to be regulated than decentralized exchanges because they add bank-grade security to their platforms, servers, and website.
While the cryptocurrency sector is flooded with centralized exchanges that offer their competitive trading conditions to millions of users, a select few are ahead of the competition in several areas, and these are the best ten.
Kraken
Overview
Kraken is a San Francisco-based centralized exchange that allows users to buy, sell, and exchange cryptocurrencies using sophisticated mobile trading applications. Users can choose between a wide range of assets that can be traded, enjoying the high liquidity of the platform.
Kraken offers Kraken Pro as well as Kraken Futures trading platforms in addition to offering advanced trading tools that help advanced traders improve their trading decisions.
Features
| Feature | Information |
| Exchange Overall Score | 8.0 |
| Average Liquidity | 736 BTC |
| Average Visits (Weekly) | 2,400,000 |
| Number of Markets | 374 |
| Coins Listed | 98 |
| Fiat Currencies Supported | USD, EUR, GBP, CAD, JPY, CHF, AUD |
Pros and Cons
| PROS | CONS |
| Globally renowned centralized exchange | Exchange is not regulated |
| Accepts clients from the US | A limited selection of cryptocurrency pairs and digital tokens is available |
| 24/7 customer support provided | |
| The platform is secure and trusted | |
| Educational materials are provided | |
| Deposits are kept in air-gapped, geographically distributed cold storage |
bitFlyer
Overview
Headquartered in Japan, bitFlyer is a popular exchange with licensing in the United States, Japan, and the European Union (EU). Traders can expect simple yet sophisticated solutions from bitFlyer including learning tools, trading tools, and competitive pricing.
Features
| Feature | Information |
| Exchange Overall Score | 7.0 |
| Average Liquidity | 632 BTC |
| Average Visits (Weekly) | 780,000 |
| Number of Markets | 9 |
| Coins Listed | 8 |
| Fiat Currencies Supported | USD, EUR, JPY |
Pros and Cons
| PROS | CONS |
| Licensed in the US, EU, and Japan | There is no option for debit card purchases of coins |
| Powerful and intuitive proprietary trading platform | Limited funding options |
| 24/7 customer support in multiple languages | A limited selection of financial instruments & investments is available |
| A lightning platform dedicated to professional traders and those involved in active trading strategies | |
| Offers Trading API, Bitcoin charts, Blockchain LAB, etc. | |
| Provides access to comprehensive education |
Gemini
Overview
Headquartered in the United States, Gemini is a well-regulated and licensed centralized platform and exchange. Gemini is backed by the New York State Department of Financial Services (NYSDFS) and has been recognized as the first SOC 1 Type 1 and SOC 2 Type 1 and 2 certified cryptocurrency exchange.
Features
| Feature | Information |
| Exchange Overall Score | 7.1 |
| Average Liquidity | 651 BTC |
| Average Visits (Weekly) | 500,000 |
| Number of Markets | 88 |
| Coins Listed | 68 |
| Fiat Currencies Supported | USD |
Pros and Cons
| PROS | CONS |
| Provides a proprietary platform and Active Trader platform | Poor customer support |
| Comprehensive education provided | Limited funding options |
| SOC 1 Type 1 and SOC 2 Type 1 and 2 certified cryptocurrency exchange | Debit card purchases are not accepted |
| Regulated by the reputable NYSDFS | Limited asset classes |
| Supports a choice between wire transfer and crypto deposits | Limited options between financial instruments & investments for professional traders |
| Competitive commissions and low trading fees |
FTX
Overview
Created by professionals to cater specifically to traders of all experience levels, FTX is one of the major exchanges in the crypto sector. FTX offers advanced solutions, competitive trading fees, and an innovative proprietary trading platform.
Features
| Feature | Information |
| Exchange Overall Score | 8.3 |
| Average Liquidity | 727 BTC |
| Average Visits (Weekly) | 4,400,000 |
| Number of Markets | 468 |
| Coins Listed | 258 |
| Fiat Currencies Supported | USD, EUR, GBP, AUD, HKD, SGD, ZAR, CAD, BRL |
Pros and Cons
| PROS | CONS |
| Several affiliate partners back the exchange | Unregulated |
| High ranking amongst other CEX | No US traders |
| Offers powerful trading tools | Limited financial instruments & investments |
| Has attractive trading volumes | |
| Educational materials provided | |
| High average liquidity |
CEX.io
Overview
CEX.io is a centralized exchange that is headquartered in the UK with strict regulation and authorization with GFSC and FinCEN, making it a trusted and reliable trading partner. CEX.io facilitates transactions in cryptocurrencies in addition to providing crypto-backed lending and staking functions.
Features
| Feature | Information |
| Exchange Overall Score | 4.5 |
| Average Liquidity | 688 BTC |
| Average Visits (Weekly) | 374,907 |
| Number of Markets | 218 |
| Coins Listed | 105 |
| Fiat Currencies Supported | USD, EUR, GBP, RUB |
Pros and Cons
| PROS | CONS |
| Regulated by FinCEN and GFSC | No US Clients |
| Dedicated 24/7 customer service and support | No MetaTrader |
| The range of educational materials offered | Only offers crypto trading |
| Range of advanced tools offered to professional traders | |
| The proprietary trading platform is robust and feature-rich | |
| Daily trading volumes and weekly visits |
Bitstamp
Overview
Bitstamp is a European-based crypto exchange that is trusted to provide high liquidity and a secure trading environment. According to the exchange, client funds are kept in cold storage and personal data on the site and platform are encrypted.
Bitstamp offers user-friendly interfaces, a range of order types, real-time charts, order books, and robust security measures.
Features
| Feature | Information |
| Exchange Overall Score | 7.2 |
| Average Liquidity | 633 BTC |
| Average Visits (Weekly) | 600,000 |
| Number of Markets | 123 |
| Coins Listed | 47 |
| Fiat Currencies Supported | USD, EUR, GBP |
Pros and Cons
| PROS | CONS |
| Well-known and trusted in the crypto space | Limited non-crypto financial instruments & investments |
| Offers advanced trading tools | A limited selection of cryptocurrency-related products and asset classes is provided |
| Educational materials are provided | Unregulated |
| Supports convenient funding options | |
| Features attractive trading volumes | |
| Serves millions of users from around the world |
Bitfinex
Overview
Bitfinex is another large contender in the crypto space, featuring a powerful and user-friendly platform where users can buy, sell, and exchange more than 159 coins and interact with over 350 different financial markets.
Features
| Feature | Information |
| Exchange Overall Score | 7.5 |
| Average Liquidity | 652 BTC |
| Average Visits (Weekly) | 1,000,000 |
| Number of Markets | 350 |
| Coins Listed | 159 |
| Fiat Currencies Supported | USD, EUR, GBP, JPY |
Pros and Cons
| PROS | CONS |
| Advanced mobile trading platform | Not regulated by any known market regulator |
| Educational materials are provided | Only offers mobile trading options |
| Large range of digital coins | |
| Liquid markets and decent trading volumes | |
| Accounts can be funded with a debit card, credit card, or digital currency from various supported wallets | |
| Margin trading provided to advanced traders |
Huobi Global
Overview
Huobi Global is a globally recognized leading blockchain service provider. Huobi Global features a large range of markets and has several major and popular crypto projects listed. Users are also provided access to a comprehensive over-the-counter (OTC) digital market where crypto pairs can be exchanged.
Features
| Feature | Information |
| Exchange Overall Score | 7.6 |
| Average Liquidity | 574 BTC |
| Average Visits (Weekly) | 1,700,000 |
| Number of Markets | 1,031 |
| Coins Listed | 356 |
| Fiat Currencies Supported | All fiat currencies |
Pros and Cons
| PROS | CONS |
| Powerful and intuitive trading technology offered | Unregulated |
| Dedicated 24/7 customer support provided | US clients are not accepted |
| The platform accepts and supports all digital currencies from around the world | Only offers crypto trading and no forex trading or CFD trading |
| Affordable minimum deposits provide a low barrier of entry into crypto trading |
Binance
Overview
Binance is one of the leading centralized exchanges in the world. It is a top-rated, secure, liquid, and comprehensive platform where more than 1,500 markets are available. Binance lists over 405 different coins that can be bought, sold, or exchanged.
Features
| Feature | Information |
| Exchange Overall Score | 9.9 |
| Average Liquidity | 801 BTC |
| Average Visits (Weekly) | 31,900,000 |
| Number of Markets | 1,567 |
| Coins Listed | 405 |
| Fiat Currencies Supported | 43+ |
Pros and Cons
| PROS | CONS |
| Binance is one of the largest exchanges in the world | Not regulated by any known entity |
| Users can make credit card purchases on the platform | Lack of daily market analysis |
| Beginners can use the training academy to learn about trading crypto | CFD trading and forex trading not supported |
| Dedicated 24/7 customer support | |
| High liquidity and fast execution |
KuCoin
Overview
Launched in 2017, KuCoin has grown to become one of the largest exchanges in the cryptocurrency market. KuCoin provides users access to some of the highest quality crypto projects as they are released.
More than five million users make use of KuCoin, and the platform sees over 2.9 million users weekly, ensuring that there is enough liquidity for all types of traders despite their trading styles or strategies.
Features
| Feature | Information |
| Exchange Overall Score | 7.6 |
| Average Liquidity | 563 BTC |
| Average Visits (Weekly) | 2,900,000 |
| Number of Markets | 1,071 |
| Coins Listed | 545 |
| Fiat Currencies Supported | 45+ |
Pros and Cons
| PROS | CONS |
| Traders have a plethora of trading opportunities between fiat and crypto pairs | Unregulated |
| 24/7 customer support provided | No US client |
| Offers a large range of fiat currencies | |
| Powerful proprietary trading platform | |
| Educational tools are provided for novice traders | |
| Provides real-time market data, account management, and API tools |
FAQ
What are cryptocurrency exchanges?
They are platforms where the trading of cryptocurrencies and other assets is facilitated. Centralized cryptocurrencies are intermediaries between buyers and sellers. These platforms make money from transaction fees and commissions charged on trades.
How do cryptocurrency exchanges function?
They function in the same way as a stock exchange where users put limit orders or sell orders, subsequently providing liquidity for other market participants.
Are cryptocurrency exchanges worth it?
This will depend on the type of investment and the trader/investor. Cryptocurrency exchanges provide high amounts of liquidity, fewer fees, and a greater selection of crypto-specific trading tools, features, and assets.
What should you look at when you choose a crypto exchange?
You should consider fees, the range of markets, and the level of security provided amongst other factors.
Are cryptocurrency earnings taxable?
If you buy and sell cryptocurrencies and you make a profit from this, it can be considered capital gains, which are taxable.
Top 4 Brokers
