Top cryptocurrency exchanges in 2023
Choosing the right exchange will have a major influence on your trading experience because the field of cryptocurrency trading has experienced enormous development and innovation in recent years. Your particular requirements and preferences will determine which cryptocurrency exchange is best for you in 2023. Coinmarketcap, the most-referenced cryptocurrency price-tracking website, tracks a total of 235 crypto exchanges. Here, we’ll look at some of the best crypto exchanges that you must take into consideration
Centralized Crypto Exchanges
Centralized cryptocurrency exchanges (CEXs) are online platforms that allow users to purchase, sell, and trade cryptocurrencies. The services of CEXs, which operate as middlemen between buyers and sellers, are compensated by fees.
The majority of bitcoin trading volume is conducted on CEXs, the most well-liked kind of exchange. This is due to the fact that CEXs are generally simple to use and provide a variety of features such as fiat currency on-ramps and off-ramps, margin trading, and derivatives trading.
Statistics of Leading CEX’s (Source: CoinMarketCap)
1. Coinbase: Recommended for New Users
One of the most popular options for newcomers to the realm of cryptocurrency trading is still Coinbase. It is the perfect platform for new users thanks to its clear approach and user-friendly UI. A wide variety of cryptocurrencies are supported by Coinbase, which also provides extra features like Coinbase Earn, which enables users to make money with cryptocurrency while learning about it. It’s important to keep in mind that costs for some trading pairs can be on the higher side.
Its total value grew to $65 billion, an increase of $37 billion from the previous year. Approximately 6.1 million users made at least one transaction per month.
In terms of financials, Coinbase raked in $4.03 billion in revenue in 2021, with a profit of $2.36 billion, making it one of the most profitable platforms in the industry. Notably, 11.3% of the entire cryptocurrency market value was held on Coinbase.
On average, each Coinbase user owned slightly more than $5,000 worth of cryptocurrency. Transaction fees accounted for nearly 86% of Coinbase’s revenue.
In 2021, the platform had 8.8 million monthly active users and employed more than 2,100 people.
2. Kraken: Best for Experienced Traders
Kraken is a top option for those with more experience and a need for advanced trading features. This exchange’s availability of margin trading, staking, and futures trading makes it a popular choice among traders interested in testing out various tactics. When compared to other cutting-edge platforms, Kraken is known for its affordable pricing and robust security features.
Kraken, a cryptocurrency platform, saw its revenue skyrocket in 2021, jumping from $318 million in 2020 to a whopping $1.35 billion, driven by the surging cryptocurrency prices and more trading happening. A big chunk of Kraken’s income comes from transaction fees charged for each trade, making its earnings closely tied to how much cryptocurrency trading occurs.
However, in 2022, as cryptocurrency prices dropped sharply, and trading slowed down, we anticipate Kraken’s revenue to drop to about $609 million, marking a significant 55% year-on-year decline.
3. Binance: The Best for Liquidity
Binance, the world’s largest centralized exchange of cryptocurrency by trading volume, distinguishes itself by unrivaled liquidity. It offers both novice and professional traders a wide variety of trading choices and a long number of supported cryptocurrencies by having nominal trading and transaction fees. Users should take precautions, though, as Binance has come under fire for its security and customer service policies.
According to Binance’s rules, certain places like the United States, Singapore, and Ontario (Canada) have usage restrictions. Additionally, in some countries, you might face limitations due to regulations. These countries include China, Malaysia, Japan, the UK, and Thailand. It’s worth noting that Germany, Italy, and The Netherlands do not have access to futures and derivatives products on Binance.
To cater to US clients, a separate platform called Binance.US was introduced in September 2019.
4. Gemini: The Security Sign
Security and legal compliance are top priorities for the US-based bitcoin exchange Gemini. Despite having a smaller range of cryptocurrencies than some other exchanges, it gives traders a safe and well-regulated environment. Investors that place a high importance on security in their cryptocurrency transactions should choose Gemini.
This platform caters to a diverse user base, welcoming both newcomers and seasoned traders. In addition to its user-friendly interface, Gemini provides an extensive library of educational resources to assist those who are new to the world of cryptocurrencies. Users’ accounts are rigorously protected, and Gemini was among the early recipients of the ‘SOC 1 Type 2’ and ‘SOC 2 Type 2’ certifications, underlining its commitment to security. Furthermore, Gemini offers insurance coverage to safeguard against specific types of losses.
Gemini offers a range of core products and services, including Gemini ActiveTrader, designed for skilled traders and investors, as well as the Gemini Exchange, Gemini Derivatives, Gemini Wallet, Gemini Mobile, Gemini Clearing, Gemini Dollar (GUSD), and Gemini Custody.
5. KuCoin: The Best Altcoin
KuCoin is a flexible cryptocurrency exchange that focuses on providing a wide selection of alternative coins. It’s a desirable choice for traders looking to gain exposure to less well-known cryptocurrencies due to its reasonable transaction fees and user-friendly interface. KuCoin, on the other hand, might not be as well-known as some other exchanges, and it might take a little more expertise to use it properly.
KuCoin is a cryptocurrency trading platform that was created in 2014 and is based in Seychelles. On this platform, you can trade 713 different types of cryptocurrencies, and there are 1252 pairs of cryptocurrencies you can exchange. In the last 24 hours, the total trading activity on KuCoin amounted to about $421 million, which is 25.28% less than the previous day. The most popular pair for trading is Bitcoin (BTC) and Tether (USDT), with a trading volume of $81.9 million in the last 24 hours. KuCoin also keeps around $1.9 billion in reserves for its operations.
6. eToro: The Best for Diversification
As a multi-asset trading platform that supports equities, ETFs, and indices in addition to cryptocurrencies, eToro stands out. It appeals to newbies due to its user-friendly layout and social trading capabilities. In addition, eToro offers educational materials to assist customers in becoming familiar with bitcoin trading.
In 2021, eToro achieved a substantial financial milestone, with revenues reaching $1.2 billion, marking a remarkable 103% year-over-year growth. Furthermore, eToro achieved a significant user base milestone in June 2021, boasting 20 million active users. Notably, the company’s initial public offering (IPO) valuation skyrocketed to $10.4 billion, demonstrating an impressive 316% increase from its 2020 valuation. It’s noteworthy that 2021 marked the second consecutive year in which eToro achieved revenue growth exceeding 100%.
7. Crypto.com: Top Choice for Integrated Services
Crypto.com is a cryptocurrency exchange headquartered in Singapore. By June 2023, the company had approximately 80 million customers and a workforce of around 4,000 employees.
As an all-in-one cryptocurrency platform, Crypto.com is quickly growing in popularity.
The exchange also introduces its exclusive exchange token, Cronos (CRO).
In addition to trading, it provides services like lending and staking. Notably, users can use Crypto.com’s Visa debit card to purchase cryptocurrencies from a variety of retailers across the world. The platform has a reputation for having strong security safeguards and helpful customer assistance.
8. Bitstamp: The Most Reliable and Secure Option
A European cryptocurrency exchange called Bitstamp was founded in 2011 and holds the title of being the world’s oldest exchange. It enables exchanges between different fiat currencies, such as the USD, EUR, and GBP, as well as a number of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Algorand, Stellar, and USD Coin.
A reputable exchange, Bitstamp, shines in terms of security and dependability. It offers a small number of cryptocurrencies, but it also gives users a safe place to store and trade their digital assets. Bitstamp is a good option for investors looking for a reliable and trustworthy exchange.
Bitstamp is a centralized exchange, holding the 9th position on the BitDegree Exchange Tracker. It recently handled a trading volume of $147,470,161 within the last day and an impressive $55,970,717,806 in the last week.
Bitstamp hosts a variety of assets, including 78 cryptocurrencies, 3 fiat currencies, and offers trading across 173 cryptocurrency pairs. Notably, the most sought-after trading pair on Bitstamp is BTC/USD.
Decentralized Crypto Exchanges
DEXs are peer-to-peer marketplaces where users can trade cryptocurrencies directly with one another without the need for a central authority. Users of DEXs maintain complete custody of their cash at all times while smart contracts are used to automate the trading process.
Here is a more extensive overview of some of the most popular DEXs:
Uniswap is a special kind of cryptocurrency market where people trade digital money. It’s not run by a company but by computer programs that follow specific rules. This makes it part of the “DeFi” or Decentralized Finance group, which means it uses these computer rules to help with trading and is a popular AMM with a diverse set of trade pairings. It is one of the DEXs that is easiest to use, making it an excellent option for novice users
Uniswap works on the Ethereum blockchain and helps people easily trade different types of digital money thanks to these computer rules. In 2020, it was the biggest decentralized exchange and the fourth-largest cryptocurrency market in terms of how much trading happened every day.
Presently, the exchange offers 981 cryptocurrencies and 1951 trading pairs. Uniswap V3 (on the Ethereum blockchain) has recorded a 24-hour trading volume of $429,549,735.05, marking a decrease of -37.94% within the past day. Notably, the WETH/USDC trading pair stands out as the most active, boasting a 24-hour trading volume of $156,515,478.98.
SushiSwap is like a sibling to Uniswap, both running on the Ethereum blockchain. It was started by anonymous developers called Chef Nomi and 0xMaki, essentially as a copy of Uniswap.Just like Uniswap, SushiSwap allows people to trade cryptocurrencies directly without a middleman. But the cool thing about SushiSwap is that its creators added some extra features. They introduced something called liquidity mining and a system where users who hold SUSHI tokens have a say in how the platform is run.
Currently, there are 111 coins and 215 trading pairs available on the exchange. Sushiswap (Polygon POS) 24h volume is reported to be at $296,808.42, a change of -20.1% in the last 24 hours. The most active trading pair is STG/USDC with a 24h volume of $78,401.02.
SUSHI is the special token that belongs to SushiSwap. If you have SUSHI tokens, you can vote on what happens with SushiSwap, and you also get a share of the money generated from trading and staking rewards. You don’t need SUSHI to use SushiSwap, but having it lets you do some extra stuff, like staking your tokens, which you can’t do without it.
PancakeSwap is like UniSwap, but it’s on the BNB Chain having Binance Smart Chain (BSC). It lets users trade coins directly with each other, without any middlemen. The unique thing about PancakeSwap is that it’s all about BEP20 tokens, which are special tokens created by Binance. These tokens follow a set of rules that make them work well with Binance’s apps, wallets, and other services. Currently, there are 1111 coins and 1385 trading pairs available on the exchange. PancakeSwap (v2) 24h volume is reported to be at $42,470,558.96, a change of 58.94% in the last 24 hours.
dYdX, a decentralized exchange (DEX) platform, provides perpetual trading options for more than 35 well-known cryptocurrencies, including Bitcoin (BTC) with a current ticker of $34,170, Ether (ETH) at $1,790, Dogecoin (DOGE) valued at $0.07, and Cardano (ADA) trading at $0.286. It holds a prominent position as one of the leading decentralized exchanges globally, boasting substantial trading volume and market share.
Established by California-based entrepreneur Antonio Juliano in August 2017, dYdX was introduced to the market in July 2017, initially offering crypto margin trading, as well as lending and borrowing services on the Ethereum layer-1 blockchain.
Right now, the exchange has 38 trading pairs. The 24-hour trading volume for dYdX Perpetual is $672,377,138.25, which has decreased by -32.78% in the last day. Moreover, the 24-hour open interest stands at $308,359,808.60, showing a 2.86% increase from the previous day. Unfortunately, there’s currently no available data on Exchange Reserves for dYdX Perpetual.
In August 2021, dYdX expanded its offerings to include cross-margin perpetual trading. With cross-margin trading, users can allocate their available balance on the platform to support ongoing trades, a widely adopted strategy to prevent liquidations amidst periods of heightened market volatility.
For exploring more Decentralized Exchanges(DEX) click here.
Finally, the ideal cryptocurrency exchange for you in 2023 will be determined by your specific goals, level of experience, and preferences. These exchanges provide a range of options to meet your specific needs as the cryptocurrency industry develops, enabling you to confidently explore the fascinating world of digital assets.
It’s critical to take your unique requirements, trading preferences, and goals into account while selecting a cryptocurrency exchange in 2023. There is a choice in the dynamic world of cryptocurrency trading that is personalized to your interests because each of these exchanges provides a distinct set of features and benefits.
Frequently Asked Questions (FAQs):
- Do all cryptocurrency exchanges accept credit cards or bank transfers?
Yes, the majority of cryptocurrency exchanges do support NEFT and IMPS as well as credit cards and bank transfers. Users normally need to link their credit cards to their exchange accounts in order to use these payment options.
- What Benefits Can Keeping Assets on an Exchange Offer?
If you’re a frequent cryptocurrency trader, there are many advantages to storing your digital assets on a crypto exchange. Exchanges provide safe ordering systems and enable the trade of cryptocurrencies, fiat money, and NFTs.
- What Are the Risks of Buying, Trading, and Selling Crypto?
When opposed to conventional financial assets, cryptocurrencies are recognized for their high volatility and lack of regulation. Being cautious is essential while working with cryptocurrencies because they are vulnerable to hacking and other cybersecurity dangers.
- Differentiating a cryptocurrency exchange from a cryptocurrency brokerage
A cryptocurrency brokerage serves as a middleman between buyers and sellers in cryptocurrency markets.
An exchange for cryptocurrencies essentially offers consumers a venue for trading and investing in different digital currencies. Exchanges also provide access to tools like DeFi and NFT marketplaces, as well as capabilities like leveraged trading, derivatives, staking, and margin trading.