Best Centralized Crypto Exchanges

What Is a Centralized Crypto Exchange (CEX)?

The most traditional and common type of cryptocurrency exchange is the centralized one. These exchanges are managed by private companies, and provide investors with a platform for trading cryptocurrencies and altcoins. These exchanges tend to have greater trade volumes, liquidity, and more trading pairs.

Because of their ease of use and onboarding, centralized exchanges can be a great option for new crypto traders. Of course, they are also perfect for advanced traders. They also offer customer support and insurance in the event that any of the platforms fail.

Centralized cryptocurrency trading platform is a key vehicle for digital currency investors. Online platforms that allow you to trade and buy cryptocurrencies are called centralized cryptocurrency exchanges. These are the most popular way for investors to purchase and sell cryptocurrency holdings.

Investors may be confused by the idea of a “centralized exchange”, as digital currencies are often described as “decentralized.” What does it mean to have an exchange like this? And why is it so important for the success and growth of the cryptocurrency industry in general?

Centralized vs. Decentralized Exchanges (DEXs)

Trades can be conducted from fiat into cryptocurrency or vice versa using centralized exchanges. You can also use them to trade between different cryptocurrency. Although this seems to cover all possible transaction types, there’s still a market for a second type of cryptocurrency exchange.

Alternatives to decentralized exchanges include those that eliminate the middleman and create what is often referred to as a “trustless environment.” These exchanges are peer-to-peer. An escrow company does not hold assets. All transactions are based on smart contracts or atomic swaps.

What is the key difference between decentralized and centralized exchanges? Decentralized exchanges tend to be less common and more popular than centralized ones. However, decentralized exchanges are becoming more popular than centralized ones. It’s possible they will outperform centralized exchanges in the future.

#1: Binance Exchange

Binance began operations in 2017 under the leadership of Changpeng Zhao. The company started with a focus on China-based cryptocurrency options but has expanded since it began operations. You can reach Binance from any country, and the company keeps its fees low.

Cryptocurrency

Binance offers over 600 different cryptocurrencies stablecoins, giving you access to the best exchange options for your investment plan. You can use the Binance Exchange if you’re interested in currencies like:

• Bitcoin Cash (BCH)
• Ethereum (ETH)
• Bitcoin (BTC)
• Litecoin
• Tron (TRX)
• FTX Token (FTT)
• Dogecoin (DOGE)
• Ripple (XRP)

Binance also has a coin of its own; consider investing in Binance Coin (BNB) if you’re interested in taking advantage of trading fee discounts. The company offers a 25% discount when you use Binance Coin.

Trading Fees

Binance uses low fees, making it easy for first-time investors to enter the cryptocurrency world. In most cases, the company uses a flat trading fee of only 0.1%. However, the cost may change based on the trading volume you complete.

Payment Options

Binance set up the exchange to accept the deposit of cryptocurrencies. Therefore, you cannot directly apply other currencies to your bills on the exchange. However, Binance set up a partnership with Simplex. Simplex allows you to use standardized currencies to make purchases on the platform. You can also buy crypto using PayPal.

Security Options

Binance stands out due to the company’s focus on user security. You must go through an identity verification process before using the exchange and need to perform two-step verification when you sign in. These steps help protect your financial data, making Binance a secure choice for beginners to cryptocurrency trading.

Tap here to check our full Binance crypto exchange review!

#2: Coinbase Exchange

Coinbase has operated since 2012 when Fred Ehrsam and Brian Armstrong set up the company in San Francisco. The company initially served as a Bitcoin crypto wallet before diversifying the services offered on the exchange. Now, Coinbase functions as a brokerage service for investors in cryptocurrencies.

Coinbase does not offer worldwide services. Thirty-two countries can trade on the Coinbase exchange while around 100 countries can access the website for other services. Coinbase may expand services to more areas as the company continues to grow and develop.

Keep the following factors in mind when looking at the best crypto exchanges such as Coinbase.

Cryptocurrency

Coinbase provides a relatively limited selection of cryptocurrencies to trade, sell, or purchase. The company offers popular options, including LTC, BTC, and ETH plus 30 other selections worldwide.

However, not all countries have access to the same currencies. Additionally, you may only get access to all the currencies available on the exchange if you sign up for Coinbase Pro. So, keep these provisos in mind when making your decisions.

Trading Fees

You can expect higher fees on Coinbase, especially in comparison to Binance. The company uses scaling fees that shift from $0.99 to $2.99 for most transactions. The variance in cost depends on your trading volume in most cases. In some cases, fees hit 3.99%, making your trades more expensive through this platform.

Payment Options

Coinbase operates out of the US and does not accept currencies from other countries. Therefore, if you want to make a purchase on the crypto market, you may need to use U.S. Dollars (USD).

Security Options

As a US-based company, Coinbase must comply with all AML and KYC laws. Before making trades, you need to provide part of your social security number (SSN) and proof of your identity. Some active traders prefer to avoid these security features because they have concerns about sharing so much personal information.

Tap here to check our full Coinbase crypto exchange review!

#3: Gemini Exchange

The Winklevoss twins founded the Gemini Exchange back in 2015, making it one of the older companies on our exchange list. The Winklevoss siblings used the funds they received from winning a lawsuit against Facebook to set up their company.

You can only reach Gemini from a handful of countries around the world, including:

• The US
• Australia
• Hong Kong
• Puerto Rico
• The UK
• South Korea
• Singapore

Nonetheless, Gemini does a tremendous amount of volume in these countries. At times, the platform draws in the largest daily number of trades

Cryptocurrency

One primary concern for many investors interested in Gemini relates to the company’s small number of choices. For example, Gemini only offers access to Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Zcash. So, consider signing up for a different exchange if you want more extensive options and choices.

Trading Fees

While Gemini does not offer many options for cryptocurrencies, it does offer you affordable trading options. You don’t have to pay anything for deposits or withdrawals with Gemini. Your trader’s fee may range from 0% to 1.00%, depending upon the volume of your trades.

Payment Options

Gemini accepts wire and band transfers as payments to purchase cryptocurrencies. You may also trade Bitcoin and other crypto through the exchange. However, the exchange only takes USD as a currency for payment.

Consider these payment restrictions as they may make it more challenging to use the platform based on where you live.

Security Options

Gemini uses state-of-the-art security to protect your transactions. The company passed both SOC 1 Type 1 and SOC 2 Type 2 security exams and carried out security audits regularly. To sign in, you have to complete a two-step authentication.

Besides its top security, the company has also earned a reputation for having excellent customer service.

Tap here to check our full Gemini crypto exchange review!

#4: Kraken

The Kraken Exchange belongs on any list of the best centralized crypto exchanges. Jesse Powell founded the company after the Mt. Gox crash in 2013. Investors in most countries can access and use Kraken. Only people in restricted countries like Cuba, Iran, and Iraq, and in US states namely New York and Washington, face restrictions on accessing the exchange.

Kraken has a reputation for excellence in the industry. This reputation is partially due to the company’s involvement in helping the Japanese government set up the first regulatory body for cryptocurrency issues. This body, the Japan Authority of Digital Assets (JADA), plays an essential role in regulating the financial impact of crypto.

Kraken also offers multiple levels for your account. If you want to make more significant trades, consider signing up for an Intermediate or Pro account.

Cryptocurrency

Kraken gives investors access to more than 30 different cryptocurrencies. We also recommend the platform if you’re interested in trading pairs as the company offers 100s of options for pairs. You may also engage in advanced trading features such as:

• Margin trading
• Spot trading
• Staking
• Futures

Overall, the company provides options for ambitious traders and people just getting into the crypto economy.

Trading Fees

Kraken uses different fees for different counties, making it a better choice in some areas than others. For example, counties in the EU may avoid withdrawal or deposit fees. On the other hand, investors in the US have to pay $5 for each transaction.

Kraken uses variable fees for trading based on the volume of your purchases. The costs go down to 0% in some cases, but they may also go up to 0.26%.

Payment Options

Kraken accepts multiple currencies as a form of payment, making it easy for investors from multiple countries to use the exchange. In most cases, we recommend connecting your bank account to your profile to make purchases easy.

Security Options

Kraken uses numerous security features, including two-factor authentication, a settings time lock, and a withdrawal whitelist. These options make the company an excellent choice for investors.

Tap here to check our full Kraken crypto exchange review!

#5: CEX.io Exchange

The CEX.io exchange did not begin its existence as a crypto exchange platform. Instead, the company started as a provider that offered cloud mining services. CEO.io expanded its services over time while maintaining its base of operations in the UK.

CEX.io offers a range of services worldwide but does not offer the same services everywhere. Only some countries can use credit cards to make purchases, for example. Additionally, the company does not operate in all US states.

Cryptocurrency

You have the option to purchase or trade about 70 types of cryptocurrencies through CEX.io. The company mainly provides the most popular forms of crypto. However, you can also access rarer options through the exchange, giving you a solid range of choices.

Trading Fees

CEX.io requires users to pay both deposit fees and transaction fees. You may find deposit fees around 3 to 4% while transaction fees range from 0% to 0.10%. Generally, the exact cost of your fees depends upon the size of your trades. The company also charges higher than average withdrawal fees.

Payment Options

CEX.io accepts several fiat currencies for crypto purchases. In addition, you may also use crypto tokens to trade on the marketplace.

Security Options

You must provide proof of your address, residence, and ID when joining higher tiers of trading on the CEX.io exchange.

Tap here to check our full CEX.io exchange review!

#6: Bittrex Exchange

A group of cybersecurity experts—including Richie Lai, Rami Kawach, and Bill Shihara—founded Bittrex Exchange in 2014. The exchange started small and now does hundreds of millions of dollars in trades every day.

The exchange boasts a very user-friendly interface and charting alongside an efficient system. We find the platform works well, even during the busiest parts of the day. It easily keeps up with user demand to deliver the service you expect from one of the best cryptocurrency exchanges.

Cryptocurrency

Bittrex has a reputation for offering hundreds of different coins to investors. You have lots of options to sort through before making your decision. The exchange platform also offers hundreds of pairs.

While new users may feel overwhelmed by the options, experienced investors often appreciate the flexibility.

Trading Fees

Bittrex charges a flat rate of 0.25% commission on any trade you make through the exchange, regardless of your trading volume. While this fee seems high compared to many other exchanges like Crypto.com, Robinhood, or eToro, Bittrex allows you to save money in other places.

For instance, the exchange does not charge fees for blockchain or fiat deposits. You can also withdraw fiat money for free. However, expect to pay different rates to withdraw blockchain tokens or coins.

Payment Options

The exchange accepts four major fiat currencies (USD, EUR, GBP, and JPY) for payments and cryptocurrency tokens. These options make it easier for you to get into the crypto trading world.

Security Options

You must provide personal details before you register an account to use Bittrex. Furthermore, the exchange requires more of your personal information if you want an Enhanced account. However, this higher-tier account also lets you withdraw more cryptocurrency in a day.

Tap here to check our full Bittrex crypto exchange review!

#7: Bitstamp Exchange

Bitstamp has a long history in the cryptocurrency world as it first began operations in 2011. It earned its position as the first crypto exchange to receive national licensing when it moved to Luxembourg in 2016.

While there have been many high points in Bitstamp’s history, it also has some significant issues we should discuss. In 2015, someone stole around $5 million of Bitcoin from the exchange. Since then, Bitstamp has focused more on security and its development of user-friendly mobile apps.

The company also made an effort to pay back individuals who lost their money in the theft.

Cryptocurrency

Bitstamp offers minimal options for crypto assets. The company supports five currencies, including BTC and ETH. However, you can select from between 15 different trading pairs if you’re looking for more choices from your crypto exchange.

Bitstamp has also made recent statements regarding the expansion of its offerings. Therefore, you may have more options available shortly if you stick with Bitstamp as your preferred exchange.

Trading Fees

Some of the best centralized crypto exchanges vary their fee structures. Bitstamp charges around 0.50% on trades involving less than $10,000. The trading prices generally drop if you make more significant transactions.

You can also expect to pay withdrawal and deposit fees for the company.

Payment Options

Bitstamp supports payments through USD and EUR currencies if you want to make direct crypto purchases. You may also use coins or tokens to make exchanges through Bitstamp. The company also accepts CHF and GBP, but it converts these currencies into either EUR or USD.

Security Options

We understand the hesitancy you may feel when considering Bitstamp, considering their history with theft. However, the company has focused heavily on improving security since 2015. So, you should have a greater sense of confidence when purchasing from Bitstamp.

Tap here to check our full Bitstamp crypto exchange review!

#8: Bitfinex Exchange

You may want to consider Bitfinex if you’re interested in trading crypto. The company does a tremendous amount of trading every day, staying in the two six currency exchanges as far as trade volume. The exchange operates out of Hong Kong and has been part of the crypto scene since 2012.

Bitfinex uses an advanced API that allows users to customize their trading strategies. In addition, the company offers libraries that help users learn more about other aspects of the financial market, like derivatives trading.

Cryptocurrency

You can find a range of cryptocurrency coins and tokens to choose from when looking for options on Bitfinex. The company gives you access to more than 90 forms of crypto. These options allow you to stick to the most popular cryptocurrencies or branch out with different choices.

Trading Fees

Your fees vary based on the volume of your trades when you work with Bitfinex. Fees start at 0.1% for makers and 0.2% for takers. The maker fee and taker fees drop as you increase your trading volume on the exchange. Makers may even zero out their fee if they get enough volume.

Payment Options

Bitfinex offers an impressive amount of payment options to customers. You can pay with the following payment methods such as bank account, debit, or credit card. In addition, the exchange takes fiat deposits in various currencies. This option makes it much easier to buy the crypto you want without jumping through hoops to complete your purchase.

Security Options

We’re impressed by the security options offered by Bitfinex. The company says they store the majority (99.5%) of their funds in cold wallets. Cold wallets or cold storage are offline accounts, making it harder for hackers to potentially access and steal the crypto coins or tokens. Always remember that not your private keys, not your coins.

Tap here to check our full Bitfinex crypto exchange review!

#9: KuCoin Exchange

Developers began working on Kucoin back in 2011. However, the exchange didn’t go live until 2017, making it one of the later arrivals on our list of the best centralized crypto exchanges. Specialists spent a lot of time tweaking the exchange to ensure it was what they wanted before taking it live.

Currently, Kucoin operates primarily as a crypto-to-crypto exchange. However, the company may continue to expand its offerings as it becomes better established in the industry. It already stands out due to offering benefits like an invitation bonus and an integrated buyback system.

Cryptocurrency

Kucoin provides you with access to more than a hundred unique cryptocurrencies. The platform also hosts numerous pairings. You can even choose to expand your investments by purchasing some of the company’s cryptocurrency: Kucoin Shares (KCS).

You can get referral bonuses and discounts when using KCS. In addition, you can check out the exchange for more information about this currency.

Trading Fees

Kucoin has some of the lowest trading fees available for cryptocurrency exchanges. You can expect to pay a 0.1% fee on each transaction you make through the platform. This fee includes crypto-to-crypto trades as well as peer-to-peer exchange options.

Payment Options

For the most part, Kucoin operates as a crypto-to-crypto exchange. Therefore, the company’s structure allows you to trade your coins or tokens for another user’s currency. Kucoin also offers a fiat P2P exchange, allowing you to make purchases with fiat monies.

Note that in a P2P exchange, both parties have to agree on the kind of currency they plan to use for the trade

Security Options

Kucoin offers various levels of security. You can make transactions on the exchange without verifying your account, leaving you with limited protection. However, you have to go through a verification process if you want to make larger transactions.

Tap here to check our full KuCoin crypto exchange review!

#10: Independent Reserve Exchange

The Independent Reserve Exchange primarily serves investors living in Australia and New Zealand. The platform began operating in 2013 and received an Exchange of the Year award despite its relatively low volume of trades.

It’s easy to sign up for the exchange and start making financial decisions. In many cases, you can get an account set up and make deposits within five minutes. We appreciate the exchange’s ease of use and found it offered a solid user experience.

Cryptocurrency

Independent Reserve offers a relatively limited number of cryptocurrencies. In fact, the exchange only offers around 24 coins or tokens. However, it does provide you with additional options if you’re interested in pairs.

Trading Fees

Independent Reserve has relatively high trading fees, coming in at a flat rate of 0.5%. However, the company is very upfront about its prices, making it easy to decide if this pricing structure works for you.

Payment Options

You have an impressive range of payment options if you select Independent Reserve. The exchange accepts debit cards, bank transfers, and transfers from payment services like:

• PayID
• Osko
• SWIFT
• POLi

You may also withdraw or deposit crypto through the exchange without paying a fee.

Security Options

While Independent Reserve adheres to all Australian regulations for crypto trading, the exchange does not offer any specialized forms of security to users. You may keep this in mind when deciding on which platform to use.

Tap here to check our full Independent Reserve crypto exchange review!

Contact Us and Learn More About Crypto Exchanges

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