The Crypto Exchange is a platform where you can buy and sell cryptocurrency means you can trade the cryptocurrency on this platform, There are two types of crypto exchanges Centralized and Decentralized crypto exchanges, the Difference between CEX and DEX, and Top 10 Crypto Exchanges all over the world.
Centralized Crypto Exchange (CEX)
In Centralized Crypto exchange our funds are managed by the crypto exchange company and they act as a trusted intermediary in the crypto trade, and it also stores and protects your funds. To use this type of crypto exchange first you have to identify yourself with valid documents (you have to do KYC) otherwise you won’t able to use the centralized crypto exchange.
The centralized crypto exchange is less secure when we compare it with Decentralized crypto exchanges because in history there are many crypto exchanges which are hacked by hackers and some digital currencies are stolen. If hackers are hacked into the one centralized exchange then they can access all the funds which are present in the exchange because all funds are managed by the exchange company so be careful when you are using a centralized exchange.
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How Centralized Crypto Exchanges make money
The Centralized crypto exchanges make money in various ways which are given below
Transaction fee: When traders buy or sell the digital currency that time this crypto exchange charge some amount or percentage to exchange the two different assets this fee is known as the transaction fee.
Cryptocurrency listing fee: When the cryptocurrency founder or developers wanted to list digital currency on the particular centralized exchange then the exchange is charged a high amount fee to list their cryptocurrency on their platform.
Cryptocurrency Promotions: Some of the cryptocurrencies founders are given a high amount of money to promote their cryptocurrency on their home page or popular crypto page.
Pros and Cons of Centralized Crypto Exchanges
Here are some advantages and disadvantages of Centralized crypto exchanges
| S.no | Pros | Cons |
|---|---|---|
| 1 | User Friendly | Hacking risk |
| 2 | Funds managed by Exchange company | A transaction fee is not constant |
| 3 | Reliable platform | Exchange companies can manipulate the prices |
| 4 | Provide a friendly way to trade for beginners | Required documents for registration (KYC Documents) |
| 5 | More numbers of Cryptocurrencies for trading | — |
| 6 | Provide the number of payments method | — |
Top 10 Centralized Crypto Exchanges in the world
These are some top 10 centralized crypto exchanges in the world that are given below and these exchanges’ ranking is based on some important factors given below
- Good trading volume
- Good user adoption
- Good user interface
- reliability and security
- Wide range of crypto tokens
| S.no | CEXs |
|---|---|
| 1 | Binance |
| 2 | FTX |
| 3 | Coinbase pro |
| 4 | MEXC Globa |
| 5 | Coinmama |
| 6 | Huobi global |
| 7 | Kraken |
| 8 | Bithumb |
| 9 | Ku coin |
| 10 | BitMEX |
Signup on Binance from here
Decentralized Crypto Exchanges (DEX)
In a Decentralized crypto exchange, we have to manage our funds ourselves only no one can access your funds on this platform, you are the boss if you trade on Decentralized Crypto Exchange, There is no intermediary between your funds and you, and you don’t have to do any identity verification or (KYC).
You just have to register on this platform and you get the 24 words key which is very very important to access your wallet and account, so be careful when you register on DEX and note down that key on paper don’t save on google drive or email. On this type of exchange, there is no hacking risk in DEX because no one can access your account without a security key.
In Decentralized Crypto Exchanges there are three types of Exchanges which are given below
- Automated market maker (AMM)
- Order books DEXs
- DEX Aggregators
How Decntrealized Crypto Exchanges make money
The Decentralise crypto exchanges make money in various ways which are given below
Transaction fee: When the traders buy or sell the cryptocurrencies at that time this type of crypto exchange charge some transaction fee, different DEXs charge different transaction fee as per the smart contract. They charge a very little transaction fee if we compare with a centralized crypto exchange.
Crypto listing fee: When any crypto founder wanted to list their cryptocurrency on DEXs then this exchange charge some fee to list their digital currency on their decentralized crypto exchange.
Pros and Cons of Decentralized Crypto Exchanges
The Decentralized crypto exchange has more advantages compared to Centralized crypto exchange and it has fewer Disadvantages which are given below
| S.no | Pros | Cons |
|---|---|---|
| 1 | Token Availability | Smart contract vulnerability |
| 2 | Anonymity | The demand for Technical knowledge |
| 3 | Reduced counterparty risk | No customer service |
| 4 | Reduced Security risk | Market saturation |
| 5 | Control on your funds | Unvetted token listing |
| 6 | Comparatively cheaper | comparatively less liquidity |
Top 10 DEX in the world
These are some Top 10 Globally decentralized crypto exchanges that are given below and these rankings are based on some important factors
- Market Volume
- Market Share
- User interface
- Reliability and security
| S.no | DEXs |
|---|---|
| 1 | dYdX |
| 2 | Uniswap |
| 3 | Sushiswap |
| 4 | 1Inch |
| 5 | Pancakeswap |
| 6 | traderJoe |
| 7 | MEDX |
| 8 | QuickSwap |
| 9 | HoneySwap |
| 10 | Raydium |
Difference between CEX and DEX
Here are some differences between CEXs and DEXs that are given below
| S.no | CEXs | DEXs |
|---|---|---|
| 1 | High transaction fee | Low transaction fee |
| 2 | Hacking risk | Less Hacking risk |
| 3 | the company manage our funds | Full control on our funds |
| 4 | KYC required | No KYC required |
| 5 | Customer support | No customers support |
| 6 | Comparatively Slower | Comparatively faster |
FAQs about Crypto Exchanges
Which is the best crypto exchange in the USA?
There are many exchanges in the USA but Coinbase and Coinbase pro are some of the most popular crypto exchanges.
Is Binance exchange is available in the USA?
No, Binance is not available in the USA.
Which safe crypto exchanges CEX or DEX?
As we know there are two types of crypto exchanges CEX and DEX but DEX is safer than CEX.
Which type of crypto Exchange is best for beginners?
Centralized Crypto Exchanges are best for beginner traders.