Top Crypto Exchanges
If you would like to consider adding crypto to your investment portfolio, the most common way to purchase is through the use of a cryptocurrency exchange.
These exchanges are basically just online marketplaces where anyone can purchase cryptocurrencies by exchanging fiat currency (USD, EUR, etc) for the crypto of their choice (BTC, ETH, etc.).
Essentially, there are two different types of exchanges. Both of which have very important differences, that are helpful to understand as you get started on your crypto journey.
Centralized Exchanges:
often known as a CEX
A platform where buyers and sellers can trade cryptocurrencies or digital assets.
CEXs are operated by a central authority or a company that acts as an intermediary between the buyers and sellers.
These exchanges typically have a centralized order book where users place their buy or sell orders, and the exchange matches these orders to facilitate the trades.
Centralized Exchanges typically require users to create accounts, undergo KYC (Know Your Customer) verification, and deposit funds into their exchange wallets, via a verified bank account.
The CEX also holds primary custody of the users' funds, through private keys - similar to banks.
Examples of centralized exchanges include Binance, Coinbase, and Kraken.
Decentralized Exchanges:
often known as a DEX
A decentralized exchange operates directly on a blockchain or a peer-to-peer network without a central authority controlling the platform.
DEXs allow users to trade cryptocurrencies directly, peer-to-peer with each other without the need for an intermediary.
They typically use smart contracts to automate the trading process and execute transactions. Unlike CEXs, DEXs do not hold custody of users' funds. Instead, users retain control over their wallets and private keys.
Examples of decentralized exchanges include Uniswap, Unisat, and Minswap.
For this, we will only cover the most popular centralized exchanges worldwide as it stands today.
One more thing before we jump in… it is important to note that crypto operates on a global system, and users should be sure to follow their local laws & regulations to avoid any penalties.
Many governments are still figuring out how to navigate this new and expanding ecosystem, so just because you can access an exchanges website, does not mean it is truly safe for you to use or transact on.
There are hundreds if not nearly a thousand crypto exchanges available to the public today, and many of them are not very legitimate, and should not be used or trusted… but there are still A LOT of platforms that are incredibly reliable, easy to use, and broadly speaking - pretty popular.
So here are some of the top Centralized Crypto Exchanges today in June 2023:
Binance is the world’s largest crypto exchange by trading volume and has been for quite some time.
Within 180 days of its launch in June 2017, Binance had already become the largest Crypto exchange in the world. It has established itself as a trusted entity for many of the more advanced users in crypto, offering access to over 350 cryptocurrencies, thousands of trading pairs, leverage, margin trading, futures through Binance Futures, and more from nearly anywhere in the world.
I say nearly anywhere in the world because some trading options are limited or restricted in regions with regulatory uncertainty such as the United States, Germany, Italy, and The Netherlands.
* On June 5, 2023 the SEC filed a lawsuit against Binance Holdings Ltd., BAM Trading Services Inc., and foudner Chnagpeng Zhao for violating U.S. Securities laws. Read the full press release here.
For safe investing in the U.S. - be sure to use Binance.US, and keep a pulse on regulatory changes near you.
Tweet from Binance on the day following the SEC Announcement: June 6, 2023.
Go to Twitter.
Coinbase Global Inc. was established in June 2012 in San Fransisco by Brian Armstrong a former Airbnb engineer, and Fred Ehrsam a Former Goldman Sachs trader. Now, over 10 years later Coinbase has become one of the most trusted platforms for crypto’s newest users to easily buy, sell, exchange, and store their currencies.
Offering a design that is intuitive, and user-friendly with support for things from basic transactions, educational resources, PayPal withdrawals, and even a digital wallet with a physical debit card.
Coinbase is now available in over 100 Countries Worldwide and has even gained the trust of U.S regulators.
Until recently called into question, when on June 6th, 2023- the SEC announced its intent to sue Coinbase for operating as an Unregistered Securities Exchange, Broker, and Clearing Agency, despite its support & decision to allow the company to go Public in 2019.
Tweet by Coinbase CEO Brian Armstrong in response to the SEC announcement: June 6, 2023
“Regarding the SEC complaint against us today, we're proud to represent the industry in court to finally get some clarity around crypto rules. Remember:
1. The SEC reviewed our business and allowed us to become a public company in 2021.
2. There is no path to "come in and register" - we tried, repeatedly - so we don't list securities. We reject the vast majority of assets we review.
3. The SEC and CFTC have made conflicting statements, and don't even agree on what is a security and what is a commodity.
4. This is why the US Congress is introducing new legislation to fix the situation, and the rest of the world is moving to put clear rules in place to support this technology.
Instead of publishing a clear rule book, the SEC has taken a regulation-by-enforcement approach that is harming America. So if we need to avail ourselves of the courts to get clarity, so be it.
Btw, in case it’s not obvious, the Coinbase suit is very different from others out there – the complaint filed against us is exclusively focused on what is or is not a security. And we are confident in our facts and the law. We'll get the job done.
In the meantime, let's all keep moving forward and building as an industry. America will get this right in the end.”
Kraken is a U.S Based Crypto exchange fit for users of all experience levels.
Kraken was launched in 2013 out of San Francisco, and is owned by Payward Inc., founded by C.E.O Jesse Powell who has been working with the concept of digital currency since 2001.
Kraken serves customers worldwide, offering more than 220 coins to an estimated 200 countries.
Although there are some regions of the U.S that are restricted, specifically New York & Washington, and also the following countries: Afghanistan, Central African Republic, Congo-Brazzaville, Eritrea, Congo-Kinshasa, Guinea-Bissau, Cuba, Lebanon, Iran, Mali, Iraq, Namibia, Libya, Somalia, North Korea, South Sudan, Syria, Sudan, Tajikista and Yemen.
Kraken is known for supporting both spot trading & cryptocurrency futures, with a wide variety of coin options, and competitive exchange fees making it a good option for an array of investors.
*Update: On February 9th 2023, Kraken agreed to pay $30 million in penalties and shut down its staking business in a settlement with the U.S. Securities and Exchange Commission. As a result of this settlement, Kraken will end staking services to U.S. clients. Non-U.S. Kraken customers will be able to continue staking their crypto assets through a separate Kraken subsidiary. Read More
Kucoin is a cryptocurrency exchange built with the mission to “facilitate the global free flow of digital value.” It claims to have an emphasis on intuitive design, a simple registration process, and a high level of security.
Originally launched in 2017, Today Kucoin is run by C.E.O Johnny Lyu, headquartered in the Seychelles, with offices in Hong Kong & Singapore.
The platform provides services to countries such as Turkey, India, Japan, Canada, the UK, Singapore, and many others. Though it is not licensed to operate in the US, although traders and crypto investors do have the option to register their accounts.
Kucoin offers a wide range of trading pairs, with nearly 700 cryptocurrencies to choose from. The platform also supports futures trading, a built-in P2P exchange, the ability to purchase cryptocurrencies with a credit or debit card, and instant exchange services.
Remember to always do some research before investing your time or money into anything.
While these may be the top exchanges globally, they may not be the best for you right where you are.
If you ever are unsure, feel free to reach out to me, or your next closest crypto fren.
For further research, I recommend you go check out: Coin Market Cap.