The Internet offers many different services that offer tools and conditions to trade cryptocurrency efficiently. Experienced investors and traders understand how to pick a reliable cryptocurrency exchange according to their needs and the functions they require in their trading activity. So over time, every trader sorts out which exchange is good and which is not. However, a beginner trader who just entered this field might face difficulties when choosing a platform for crypto currency trading:
- There are too many of them, and every exchange is focused on some advanced tool (for example, FTX is focused on futures trading).
- They offer different commissions for transactions, and often the fee varies depending on what tools you use.
- They provide a different level of safety for users: some ensure reliability and protection, while others do not give any promises.
- They provide a different number of crypto assets. Some platforms offer probably all possible coins, while others – only the most popular.
- They offer different tools – some exchanges provide elementary swaps, while others – provide advanced and complex financial instruments, funds borrowing, etc.
- Customer support.
- And many other factors that a novice trader may not identify on the first try.
The Variety of Crypto Platforms
We can divide all crypto exchanges into two groups – centralized and decentralized. Both options are actively used by traders, but they are different. Decentralized exchanges (DEX) allow you to buy crypto and make exchanges and swaps, but with a limited number of crypto assets supported and no advanced trading tools. DEX does not promise users’ safety, or even if it does, it cannot provide it 100% because users do not register and do not pass KYC. And without every user’s checking, it is impossible to ensure protection for others.
CEX are centralized platforms working officially and ensuring users’ safety. They ask for registration and verification if a user wants to access all the advanced trading tools and have no limits on withdrawals. CEX offers leverage, futures, margin and many other trading instruments that allow for generating income. CEX provide much wider range of digital coins and the possibility to buy crypto with fiat money.
An example of CEX can be a young and credible platform WhiteBIT. In addition to all the advantages of CEX we have listed above, this exchange has a straightforward interface that will be easy to handle, even for a novice trader.
