The Best Crypto Exchanges 2022
The current crypto bear market has made investors wary of the cryptocurrency space. Despite this, seasoned investors are expectantly preparing for the next bull run. If you are preparing, we have found one low-fee crypto exchange you might consider trading with.
Let’s look at some of its features and how it compares with some established industry exchanges.
Key Takeaway
- There are 9400+ cryptocurrencies, according to Coinmarketcap.
- Exchanges can either be centralized or decentralized
- Transaction fees and trading volume are two of the major things to look into before choosing a crypto exchange.
Comparison Table
Methodology
We have analyzed the features and options provided of cryptocurrency exchanges and trading platforms
Each cryptocurrency exchange’s trading costs are displayed based on the lowest trade volume.
What Is a Crypto Exchange and How Does It Work?
Just like you deposit and withdraw your nation’s currency from a bank, cryptocurrency exchanges allow an investor to buy and sell cryptocurrencies. Crypto exchanges differ in how they approach ease and functionality, but the common function of buying and selling remains the primary motive for exchanges.
Different Types of Crypto Exchanges
Centralized Exchange
If you are new in the cryptocurrency space, you would be better off using a centralized exchange. The benefits of using a centralized crypto exchange are trust and an extra layer of security. Redot and Coinbase are two centralized exchanges.
Decentralized Exchange
These types of exchanges are used by people who want more control over their cryptocurrencies. The common crypto phrase “not your keys, not your crypto” is their mantra, and they’re in control over the security of their cryptocurrencies. Uniswap and Pancakeswap are two of the most popular ones.
Source: Medium
Global Crypto Exchanges
Some crypto exchanges have recognition across several countries, hence earning the name; global crypto exchanges. Some global exchanges include Binance, Redot and FTX.
Crypto Exchange Fees
Trading Fees
Trading fees are fees charged by a blockchain to process transactions. The exchange’s choice has nothing to do with trading fees as even the cheapest crypto exchange have to pay the required network fees.
Withdrawal Fees
In centralized exchanges, withdrawal fees are charged once a trader wants to withdraw his crypto.
Other Fees
There are other fees that can be charged by exchanges. For instance, if you get liquidated in a position or you want to move your crypto to your wallet, a fee will be charged.
How to Choose a Crypto Exchange
Security
With the number of hacks in the cryptocurrency space, security is undoubtedly the major factor to consider when choosing an exchange.
Available Coins
Are you a new trader? Then you might not need access to every cryptocurrency that exists. Adept traders, on the other hand, might want to trade different coins using different strategies.
Trading Volume
Exchanges with high trading volume are good for liquidity purposes. Traders have a lower risk of liquidation when the exchange has enough trading volume
Educational Resources
What better way to help newbie investors catch up to speed with the cryptocurrency market than with educational resources like videos or blogs?
Accessibility
How easy is it to access your exchange? Will you be able to keep trading if you change cities or countries? This is a major factor to consider in choosing which exchange to use.
Crypto Exchange FAQs
Which crypto exchange has lowest fees?
There are different exchanges with low fees; Redot.com and Binance are two of the most popular ones.
What is a crypto exchange?
An exchange is a place where you can buy or sell cryptocurrencies.
How do I exchange cryptocurrency without fees?
Crypto exchange with lowest fees are the most popular types, yet some peer-to-peer transactions are free of charge.
Do all crypto exchanges charge fees?
No. Some exchanges do not collect exchange fees. While some of the lowest fee crypto exchange come with enticing perks, be sure to check out other metrics before investing in the exchange.
Why are crypto fees so high?
Network congestion can often raise the transaction fees of proof-of-work blockchains. You can either wait until there are low crypto trading fees, or send the transaction amidst the high fees.
Conclusion
If you want to choose a cryptocurrency to trade with, which of the factors to consider will be your priority? If security does not top your list, it should be somewhere near the top. Redot is one exchange known for splendid security features. You can try it out and avoid heartaches and the need to reduce stress later.
