Overview

Crypto exchanges are a marketplace where you can buy and sell cryptocurrencies. Despite recent setbacks, cryptocurrency remained a popular new asset class for investors in 2022. Cryptocurrency is still among the top Google searches for 2022, Bitcoin beat out TikTok, Apple, and NFL, and almost topped “restaurants near me.”

In final numbers, there were more than 20,000 cryptocurrency projects worldwide, and there are now around 295 million crypto users in total, according to Debthammer, with 20% of them from the U.S.

If you’re interested in buying or investing in cryptocurrency, you need to create an account with a crypto exchange, a crypto exchange is a marketplace where you can buy and sell cryptocurrencies, like Ether, Bitcoin, or Dogecoin.

The best crypto exchanges in the USA

Kraken:  Kraken is one of the oldest U.S. cryptocurrency exchanges, founded in 2011. It’s also one of the few exchanges in the U.S. that offer margin trading.

Gemini: Gemini is widely recommended for crypto traders of any skill level. The platform is loaded to the brim with scores of features, like the Gemini Earn program for earning interest on crypto holdings and the Gemini Credit Card, both are unique.

Crypto.com: It provides a very good selection of cryptocurrencies, with more than 250 available. The platform offers unique perks and rewards for its Visa Card users. Users can take advantage of Crypto.com’s (CRO), utility token Cronos to pay fees on the platform and earn other benefits also.

KuCoin: It provides access to a wide range of altcoins at low fees. KuCoin’s headquarter is in Seychelles, with a growing number of users in Europe, Asia, the Middle East, and Africa. U.S. users can access and use the trading platform, but KuCoin is not licensed in the U.S.

Coinbase:  Coinbase offers 150 or more tradable cryptocurrencies, which should satisfy almost all investors looking to break into the crypto space. It has an easy-to-use interface that makes one-time or recurring crypto transactions a snap.

Binance US: It has a standalone version dedicated to US traders only. It is one of the top crypto exchanges in the world, and also one of the top exchanges by trade volume. It has also easy to use interface.

How does a crypto exchange work?

A crypto exchange is a marketplace where you can buy and sell cryptocurrencies, like Ether, Bitcoin, or Dogecoin. Cryptocurrency exchanges work similarly to other trading platforms that you may be familiar with. They provide you with accounts where you can create different types of orders to buy, and sell coins in the crypto market. Some crypto exchanges support advanced trading features such as margin accounts and futures trading, and others have features like crypto staking or crypto loans that allow you to earn interest on your crypto holdings.

Types of crypto exchanges

There are two types of crypto exchanges: centralized exchanges and decentralized exchanges.

Centralized exchanges

Centralized crypto exchanges are managed by one organization. It made it easy to get started with cryptocurrency trading by allowing users to convert their fiat currency such as paper currency, like dollars, directly into crypto. The majority of crypto trading takes place on centralized exchanges. The main concern with centralized exchanges is raising the risk of hackers stealing assets. To address this risk, centralized crypto exchanges have beefed up security over recent years.

Decentralized exchanges

Decentralized crypto exchanges distribute responsibility for facilitating and verifying crypto trades. Anyone willing to join a decentralized exchanges network can certify transactions, much like the way cryptocurrency blockchains work. This may help to increase accountability and transparency.

The trouble is that decentralized exchanges are not user-friendly, not only from an interface standpoint but also in terms of currency conversion. Decentralized exchanges, for instance, don’t always allow users to deposit dollars and exchange them for crypto. This means you either have to already own crypto or use a centralized exchange to get crypto that you then use on a decentralized exchange.

Related: How to Start a Cryptocurrency Blog- A Complete Guide