A Centralized Exchange is the bedrock of crypto transactions, facilitating ease of trading by traders of cryptocurrencies.
What is CEX?
A Centralized Exchange is based on blockchain technology and caters to cryptocurrency traders. These cryptocurrency exchanges are owned by disparate companies that also operate in a regulated manner. Cass is the most widespread mode of instruments currently as they make it easy for traders to buy and sell tokens.
Before selecting a CEX, one should consider a few essential aspects. Each of these aspects is important and are stated below:
- Security: This is of prime concern since hackers are always on the prowl to strike and cause disruption. CEX are involved in financial transactions, and hence, security and privacy are the main issues.
- Volume: Volume is a reliable metric to decide upon the reliability of the said platform. Any CEX that performs around $1 billion worth of transactions in a 24-hour cycle is trustworthy. A larger also does indicate a large turnout of visitors.
- Options: Most CEX offers a wide variety of Fiats and tokens. It is advisable to look for exchanges that provide more comprehensive options since then the trader will have enough flexibility. Mode of payments is also another aspect that must be investigated.
- Commissions: Every exchange charges a commission, and that can vary as per the mode of trading. The commission rates differ as per the agreements they have with payment providers. It is wise to select exchanges that allow a greater limit of trading at a lower cost.
The Top 5 Centralized Exchanges (CEX)
The top 5 centralized cryptocurrency exchanges list is generally based on the parameters mentioned above. While each exchange will have unique features, the primary considerations must be omnipresent.
Has on average 250.3 million monthly visitors and has a trading commission of 0.10%. It offers 374 coins and 46 fiats, having an average daily volume of $2 billion, translating to 1,400,000 transactions per second. Binance is also known for its responsive customer service.
At 73 million monthly visitors, it is the second-largest CEX available currently. It charges 1.49% as a trading commission and offers 74 coins and three fiats. The company was founded in 2012 to transform crypto trading radically. It is currently available in 100 countries.
At 25.8 million monthly visitors, Kraken is on the rise and third on the list. It charges 0.26$ as a trading commission and offers 69 coins and 7 fiats. Founded in 2011 by Jesse Powell, Kraken is at the top of the heap of best exchanges. A vast array of tokens on offer makes it one of the most traded exchanges.
Huobi Global attracts approximately 9.2 million monthly visitors. It charges 0.20% as the trading commission and offers 331 coins and 50 fiats. It is an essential part of the Huobi Group, founded in 2013. It is one of the world’s leading companies in the digital asset trading industry. Huobi Global is available in more than 100 countries.
The exchange has approximately 5.9 million monthly visitors. It charges 0.20% as the trading commission while providing 139 coins and four fiats to its traders. Bitfinex was founded in 2012 and is a known driver of technological innovation in digital asset trading.
A CEX is a vital clog in the wheel, and in its absence, the trader will be hard-pressed to fulfill trading. The article illustrated the parameters which will form the basis of selecting a CEX. As blockchain evolves and the technology matures, Centralized Exchanges (CEX) will become even more sophisticated, intuitive, and user-friendly.