Best Trading Platforms For Crypto
Cryptocurrencies have caught the interest of a lot of people in recent times. For reasons that include; the desire to make passive income, investing, having digital ownership of a cool jpeg, hedging against inflation, amongst others and you might also want to get in on the action yourself.
However, to do so, you have to choose a cryptocurrency trading platform, also known as a crypto exchange. These platforms allow you to trade your fiat for crypto and vice-versa while, in some instances, also allowing you to trade a cryptocurrency pair. There are two types of crypto exchanges, centralized exchanges (CEXs) and decentralized exchanges (DEXs).
By “clearing” trades, centralized crypto exchanges participate directly in markets. They usually hold lists of open buy and sell orders with volume and price information. They connect buyers and sellers and publish current market prices based on an asset’s most recent sale price. On the other hand, decentralized exchanges try to do away with the middleman and allow people to trade directly using smart contracts.
However, because of the relative ease and higher level of security, CEXs tend to make up the top or largest crypto trading platforms. DEXs are not to be discounted as they provide greater anonymity to users than CEXs.
The Top 6 Crypto Trading Platforms
CoinMarketCap is best crypto trading platforms by trading volume, liquidity, average visitors, and confidence in the reported volume are Binance, Coinbase, FTX, Kraken, and KuCoin. However, each of these trading platforms has its weaknesses and strengths, which are worth noting and would enable you to choose the best fit for you.
Binance sits at the top of the pile, with an exchange score of 9.9. The exchange offers users access to 396 different cryptocurrencies, with cheap fees from $0.02 to $0.1. However, the platform may come across as a little difficult for beginners new to the crypto space. Additionally, the global platform is not accessible to US citizens who use Binance.US, which offers very limited products.
Coinbase is a distant second, with an exchange score of 8.5. Coinbase fees are not as low as Binance and offer only 169 crypto assets for trading, but it shines with its beginner-friendly interface. It is currently the largest exchange in the United States.
FTX comes a close third in CoinMarketCap rankings, with an exchange score of 8.2. FTX offers the cheapest fees on the list, from 0% to 0.07%. FTX, compared to other exchanges, gives users access to other markets like stocks and forex. However, like Binance, US citizens can’t access the global platform and stick to a limited version called FTX.US. It currently offers support to 322 cryptocurrencies.
Kraken is one of the oldest exchanges on the list, founded in 2011. CoinMarketCap gives it an exchange score of 7.9. The exchange has features that appeal to advanced crypto users and high cybersecurity ratings. However, the platform might be difficult to navigate for beginners. It currently supports 151 cryptocurrencies. Its fees can be as high as 0.26%
KuCoin wraps up the list with an exchange score of 7.6. The exchange supports about 626 coins, the largest on this list, offering all of these with fees similar to Binance. However, the lack of fiat support makes it difficult for beginners to purchase crypto.
These exchanges are some of the best crypto trading platforms in South Africa with their services tailored to the local population to enjoy the best of cryptos.
