5 Best Crypto Exchanges

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If you’re new to the crypto world or looking for the best crypto exchange to use, you’ve come to the right place.

It’s no secret that cryptocurrency is becoming more and more popular by the day. Many people are investing in various digital assets and cashing in on the immense profits that can be made.

In this blog post, we will be discussing five of the very best crypto exchange that 2022 has to offer. We’ll also provide a comprehensive view of how crypto exchanges work, so that you can make an informed decision about which one is right for you.

Without further ado, let’s get started!

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What Is a Crypto Exchange and How Does It Work?

crypto stock

A crypto exchange is an online platform where users can buy, sell, or trade cryptocurrencies and digital assets. These exchanges allow you to use traditional fiat currencies like USD and EUR to purchase Bitcoin, Ethereum, and other digital assets.

You can use crypto exchanges for many purposes, such as investing in new ICOs (initial coin offerings), trading different digital assets (including non-fungible tokens or NFTs), and securely storing your cryptocurrencies.

Crypto exchanges use a variety of methods to secure your digital assets. The most common security measures of these exchanges are two-factor authentication (2FA) and cold storage. This helps to ensure that only you can access your account.

Cold storage is the practice of storing cryptocurrencies offline, making them much more difficult to hack. Crypto exchanges help keep your funds safe and secure by using these and other security measures.

Types of Crypto Exchanges

crypto coins

There are a few different types of crypto exchanges. The most common are centralized exchanges, decentralized exchanges, and peer-to-peer exchanges.

Centralized Exchanges

Centralized exchanges are some of the most common types of crypto exchange. They are owned and operated by a single company or individual.

These exchanges store all of their user data in a central location. They require you to provide personal information like your name, email address, and phone number to use them.

Centralized exchanges are usually easy to use and have a large selection of cryptocurrencies and digital assets. However, they are also the most prone to hacks and scams.

Decentralized Exchanges

Decentralized exchanges are becoming more popular as the crypto world evolves. They are owned and operated by the users themselves, rather than a single company or individual.

This means that there is no central data store, and users do not need to provide any personal information in order to use them. Decentralized exchanges are difficult to use and have a limited selection of cryptocurrencies and digital assets.

However, they are much more secure than centralized exchanges and are less likely to be hacked.

Peer-to-Peer Exchanges

Peer-to-peer exchanges (P2P) are the least common type of exchange. They allow users to trade cryptocurrencies and digital assets directly without a third party.

P2P exchanges are easy to use and have a large selection of cryptocurrencies and digital assets. However, they are also the most insecure type of exchange and are vulnerable to scams.

What to Look For in a Good Crypto Exchange

freelancer choosing which crypto exchange to choose

Now that you know a little more about the various crypto exchanges, it’s time to learn how to choose the best one for you. Here are a few things to look for:

Geographic availability

Consider where the exchange is located and whether or not it is available in your country. It won’t matter if you find the best crypto exchange in the world if it only works in Australia, and you live in the US.

Security features

Security is a big deal in the crypto space. Why? Well, if your coins get stolen, it’s unbelievably hard to get them back.

In fact, most people never do. You want to look for exchanges that, at the very least, use 2FA and allow the use of cold storage to safeguard your assets when you’re not trading them.

Coin selection

Some exchanges offer only 10 or 20 different coins, while others let you trade thrice as many. This factor’s importance depends on what type of cryptos you plan to trade.

If you’re only interested in main coins like Bitcoin (BTV) and Ether (ETH), then pretty much any crypto exchange will do. But if you’re looking to trade hard-to-find altcoins like Dogecoin, you’ll want to make sure the exchange offers a wide selection of cryptocurrencies and digital assets.

Ease of use

This depends on whether or not you’re an experienced crypto trader.

If you’re a beginner, you need an exchange that is both easy to learn and use. You’ll also want one that offers advanced options and toolbars, for when you start getting the hang of things.

If you’re a trader just looking to try out a new exchange, then ease of use will probably not matter to you so much.

Trading volume/liquidity

Trading volume is the number of coins traded on a given exchange in 24 hours. The higher the trading volume, the more liquid the exchange is, and the easier it is to trade cryptocurrencies and other digital assets.

Crypto Exchange Fees

Fees are dealmakers and breakers – especially for newbie investors.

While you should never narrow down your decision to fees alone, they are a very important part of a crypto exchange. If you aren’t careful, fees can lower your profits significantly. There are several fees you should look for when choosing a crypto trading platform with low fees:

Trading Fees: This is the fee you’ll be charged each time you buy or sell a cryptocurrency on the exchange.

Deposit and Withdrawal Fees: These are the fees associated with depositing money (usually fiat) onto the exchange. They’re also used when withdrawing your fiat money to a bank account, or your cryptos to a crypto wallet. As with other trading platforms, these fees tend to become more problematic for small transactions than for larger transactions.

Exchange Rate Spread: This is the difference between what the exchange sells you a coin for and what it’s worth on the market. The spread is how most crypto exchanges make their money every time you buy or sell an asset.

Other Fees: There are a few other fees you might want to look for when choosing a crypto exchange, such as the fee to list a new coin or the fee to use the exchange’s API.

5 Best Crypto Exchange for 2022

Now that you know what to look for in a good crypto exchange, it’s time to take a look at the exchanges currently available. These exchanges are all reliable, secure, and have high trading volumes:

#1 Coinbase

Best overall crypto exchange and most reliable bitcoin exchange

Coinbase is the best overall crypto exchange and the most reliable. It offers high-security features such as 2FA and stores user funds in cold storage.

They store up to 97% of bitcoins in encrypted, geographically separated, offline facilities. They also have insurance on the remaining 3% in hot storage, to give you extra peace of mind.

On top of all this, Coinbase has a user-friendly interface that makes it easy to learn and use. The platform offers more than 50 different coins, including all major cryptos – and has one of the highest crypto trading volumes and liquidity in the market. This makes it easy to find someone to buy from or sell to at all times.

#2 Binance.US

Best for beginners

Binance is the world’s biggest crypto exchange by volume, but it doesn’t comply with all the United States’ regulations around crypto. So, Binance rolled out Binance.US, which does comply with regulations, allowing the company to operate on American soil without compromising its operations in the rest of the world.

When comparing Binance.com vs. Binance.US, there’s an obvious difference in trading volume, but Binance.US still has very high liquidity. However, where Binance.US shines is in terms of useability and trading fees, which makes it a great option for beginners who can trade a wide selection of coins.

Comparing Binance vs. Coinbase head to head, Binance.US turns out not to be as reliable as Coinbase, and it’s not available in all states.

#3 Gemini

Best for experienced traders

Gemini is best for experienced traders looking for a reliable and secure crypto exchange with high liquidity and advanced trading options. It lets traders place multiple types of orders such as limit or market orders; it features advanced charting and forecasting tools, as well as data analysis tools to help you identify the best crypto pairs to trade.

While it also has a user-friendly interface, it’s available in every state, and it’s mobile-ready. It’s the powerful advanced features that set it apart from the other options on this list, however, making it excellent for those more experienced.

Unfortunately, it has flaws that take it down from the top 2 positions: fewer coins to choose from than Coinbase, and can be expensive to trade low volumes.

#4 Kraken

Great for both beginners and experienced traders

Kraken is a great option for beginners and experienced traders, as it offers a wide variety of features and tools in an easy-to-use platform. It has a user-friendly interface and offers more advanced options for those looking to take their trading to the next level.

Kraken also has high liquidity with a trading volume of around $1 billion. The platform supports 56 coins, has low instant trading fees and no deposit fees. However, what stops it from getting into the top 3 crypto exchanges is that it has higher-than-average instant trading fees. It also comes with withdrawal fees and high minimum deposits, which can eat into your profits over time.

#5 Crypto.com

Best for Security

Crypto.com is a low-fee crypto exchange that is great for payments in crypto. It also offers a crypto rewards Visa cash back card, and the possibility to earn interest on your held cryptos. Its platform isn’t as easy to use as the four best crypto exchanges presented above – and it could use better customer service – but what it lacks, it makes up with layer after layer of fund protection.

Besides multi-factor authentication, biometric scans, and anti-phishing measures, Crypto.com hires other companies to try to hack their accounts and identify weak spots. Add cold storage and theft insurance for up to $360 million, and you’ll see why this is one of the safest cryptocurrency exchanges out there.

The Bottom Line

Choosing the best crypto exchange in 2022 depends on what you’re looking for.

If you’re a beginner, Binance.US is a great option with its user-friendly interface and wide selection of coins. If you’re an experienced trader, Gemini offers high liquidity and a range of powerful features. And if you’re looking for the best security, Crypto.com is your best bet.

While there is no one-size-fits-all, each of the five exchanges presented above has its own unique strengths that make them great options for anyone looking to get into the cryptocurrency market.

So, it really depends on your individual needs and what you’re looking for in an exchange before you can decide which one is best for you.

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Jordan Bishop

Jordan Bishop is the founder of Yore Oyster and How I Travel, two sites to help you optimize your finances while living an international life. He recently published his first book, Unperfect, an exploration of problem-solving.