Best centralized crypto exchanges in 2022
Over the past 12 months, the cryptocurrency market has grown by 36%, raising its capitalization to a record $9.3 billion. This boosted both the development of existing crypto exchanges and the creation of new ones. Therefore, newcomers as well as experienced traders often find it difficult to decide which exchange is the best to trade on. We have compiled our own list of centralized cryptocurrency exchanges for EU and US residents to solve this issue.
- When compiling the list, we considered the following features:
- Trading volume. This indicator is important for those who conduct many transactions over a short period of time, when users need their orders to be bought or sold very quickly. Besides, this indicator shows how much trust people have towards a particular exchange.
- Number of trading pairs (markets). This feature is important for those who work with less popular altcoins.
- Legal status and reputation. This helps to avoid both fraud by the exchange and persecution by government regulators.
- Trade with fiat money and withdrawal to other payment systems. This makes it possible to withdraw money to ordinary bank cards with minimal commissions.
- Availability of additional financial instruments. This increases the owner's opportunities for earning, storing, and withdrawing crypto assets.
Binance is the world's largest cryptocurrency exchange in terms of trading volume (about $2 billion daily). It was founded in 2017 by Changpeng Zhao, and in a couple of years it has grown into an entire blockchain ecosystem representing the whole spectrum of cryptocurrency products and services. These include a decentralized exchange (Binance DEX), a public blockchain with fast execution (Binance Chain) with an add-on for smart contracts and Ethereum support (Binance Smart Chain), an infrastructure development fund (Binance Labs), an information website (Binance Info), a training center (Binance Academy), a research center (Binance Research), and a nonprofit organization for achieving sustainable development goals (Binance Charity Foundation).
Trading volume: $27.9 billion.
Number of trading pairs (markets): 1643
Legal status: registered in the Cayman Islands
Fiat currencies: over 43 (including USD, EUR, CAD)
Coinbase was founded in 2012 by former Airbnb developer Brian Armstrong and former Goldman Sachs trader Fred Ehrsam. At first, the company survived thanks to investors who made their own investments in it. In 2015, upon receiving another $75 million investment, the company created its own cryptocurrency exchange, Coinbase Exchange. Over the next few years, they managed to expand their zone of influence to 100 countries around the world. In some countries, such as the U.S., they received a license from the New York State Department of Financial Services (DFS) to trade cryptocurrencies.
Today, it is one of the largest cryptocurrency companies with shares traded on the U.S. exchange NASDAQ, and the total amount of assets on the platform exceeds $255 billion.
Trading volume: ~$5 billion.
Number of trading pairs (markets): 416
Legal status: registered in the UK
Fiat currencies: USD, EUR, GBR
Two MIT graduates, Sam Bankman-Fried and Gary Wang, founded the FTX cryptocurrency exchange. Previously both were engaged in trading stocks on the stock market, but in 2019 they decided to create a new exchange concerning digital coins. In two years of operation, the company managed to raise more than $900 million (with a business estimate of $18 billion). Initially, the headquarters was located in Hong Kong, but in September 2021 it was moved to the Bahamas.
Trading volume: ~$10 billion.
Number of trading pairs (markets): 435
Legal status: registered in the Bahamas
Fiat currencies: 10 (including USD, EUR, GBR)
Company founder Jesse Powell started working on his own exchange after experiencing a serious security incident at Mt.Gox, another cryptocurrency exchange. Two years later, Kraken entered the market. Initially, it was limited to Bitcoin, Lightcoin, and Euro trading. However, over time, the functionality and trading pairs expanded. Moreover, Kraken introduced its own bank with relevant services. In 2021, the company launched a mobile app for online trading.
Trading volume: ~$1 billion.
Number of trading pairs (markets): 397
Legal status: registered in the British Virgin Islands, it also has several registered subsidiaries in the United States, Australia, Canada, Great Britain, and Singapore.
Fiat currencies: 7 (including USD, EUR, JPY)
Huobi is one of the world's oldest cryptocurrency exchanges. It was established in early 2013 by Chinese programmer Leon Li, and by the end of that year, it had already become the largest bitcoin trading platform in China. In 2017, the company faced harsh legislative measures against cryptocurrency exchanges, which forced the exchange to start exploring the Korean market, and then the markets of Japan, Hong Kong, and the United States. Despite strong user growth in recent years, in September 2021, Huobi announced it would stop serving customers in the People's Republic of China due to new government bans.
Trading volume: ~$4 billion.
Number of trading pairs (markets): 1062
Legal status: registered in Seychelles
Fiat currencies: 50 (including USD, EUR, KRW)
The KuCoin exchange is based in Hong Kong where the laws applicable to financial companies are among the most liberal ones. Its features include the absence of standard commissions, instead users pay a fixed fee for trading. The other advantage of this exchange is that it has its own cryptocurrency, and its holders constantly join promotions and contests. Besides, trading withdrawal fees are extremely low compared to other cryptocurrency exchanges. Today, more than 10 million users are registered at KuCoin.
Trading volume: ~$5 billion.
Number of trading pairs (markets): 1164
Legal status: registered in Seychelles
Fiat currencies: 50 (including USD, EUR, AUD)
Gate.io stands out as one of the most famous companies in the crypto world. The company was founded in 2013, and in just a few years it was able to expand its operations to 224 countries around the world. Gate.io succeeded to overtake all its competitors by the number of trading pairs: its closest competitor Binance possesses about 500 pairs less. In addition to currency trading, the company is actively developing its own blockchain network, DeFi services, the NFT marketplace, and other crypto projects.
Trading volume: ~$12 billion.
Number of trading pairs (markets): 2160
Legal status: registered in Marshall Islands
Fiat currencies: EUR, KRW
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