Best Cryptocurrency Exchange for 2022
Best Crypto Currency Exchange
The Global Cryptocurrency market is expected to surpass USD $3474.31 million by 2030. Cryptocurrency will project a noteworthy CAGR of 30.32 % in the year 2030. This brings along a huge scope of growth for cryptocurrency exchanges. As such, there are many exchanges providing a platform to deal in crypto. Yet, as the market is still evolving, the scope for new exchanges still exists.
What is a Cryptocurrency exchange?
People who wish to engage in buying and selling cryptocurrency often require a medium to facilitate their transactions. Cryptocurrency payment gateways play a crucial role in making this process simpler. Exchanges act as a medium for trading and make the execution easy. The best cryptocurrency exchange is the one that streamlines the process effectively. As of now, approximately 380 such exchanges function globally.
Cryptocurrency is usually denoted by the word digital token or coins. It is decided based on their characteristics. A lot of coins & tokens are currently present in the market. Additions take place in their specific categories.
Types of CRPYTOCURRENCY EXCHANGE
This is the most common type of exchange prevailing in the market. In this, there is a third party that offers a platform to trade cryptocurrency. This third party is a company that acts as the custodian for investors’ money like a bank. Buyers and sellers can trade on this platform subject to their regulations. Some centralized exchanges are Coinbase, GDAX, Kraken & Gemini.
People willing to trade on the centralized exchange have to register & identify themselves. As a single entity looks after these exchanges, it offers more reliability and safety. They also offer an easier way of trading and investing in cryptocurrencies. The process of executing transactions, and viewing the balance is easier, compared to decentralized exchange.
Centralized exchanges charge a higher amount of transaction fees. These exchanges have their own private server to handle the functioning. Any impact on these servers will impact the whole system. Every individual connected to the exchange will have to face the consequences.
This type of exchange is exactly the opposite of centralised exchange. There is no single authority or third party responsible. The users execute peer-to-peer transactions without any kind of intermediary. Examples of such exchanges include AirSwap, io, Barterdex, and Blocknet.
This type of exchange gives every user the privacy of data. It also provides the freedom to trade without any regulations or controls. The whole system is automated and controls the transactions without any intermediary. There is no compulsion of declaring Identity on this exchange. People who want to trade come and go every day.
(As on date), more than 99% of transactions are facilitated through a centralized exchange. This results in a lack of liquidity and low trading volumes.
A combination of a centralized and decentralized exchange is a hybrid one. It combines the benefits of both platforms and brings the best version. It gives you a combination of quick transactions & private keys on a single platform. The cryptocurrency exchange that you choose, depends on your target market. Hybrid will appeal to more traders than any other exchange. If you feel confused while designing a cryptocurrency exchange, we are here to help. Highen Fintech Labs is wonderful at Customizing exchange platforms as per requirements. With us you can build top cryptocurrency wallet apps.