Crypto Exchanges 2022: Invest Wisely

The way people trade in crypto is changing quickly. People are always making new trading platforms where they can exchange digital coins and work with fiat assets. There are now hundreds of crypto exchanges, but they are all different, which can make it hard to choose one.

Pay Attention to These Things When Choosing a Cryptocurrency Exchange

• Give preference to exchanges that have been around for a long time. One-day companies are useless.
• Liquidity and the number of trades. The more people who use the exchange and the easier it is to work on it, the bigger it is. Large crypto exchanges deal with a lot of different currency pairs. It is easier and faster to sell or buy cryptocurrency with the coins you need. Don’t forget that the exchange has more credibility the more people use it.
• All the information you need about the exchange. Exchanges that you can trust will always give you a lot of information about themselves and their founders.
• Commission and payment amounts. Almost every major exchange has commissions; the only difference is how big they are. And if all the other factors are the same, choose a crypto exchange that isn’t as “greedy.”
• The platform comes with tools. It’s not about cryptocurrency pairs, but about trading tools, like stop-loss orders or trading with leverage, as well as specific staking, savings, and lending. Pick a market that has the tools you need.
• Reviews by users. Make sure you read what other people have said about the cryptocurrency exchange you want to use. And, of course, don’t look for these reviews on the exchange’s website. Instead, look for them from outside sources.

But first, you should decide if you really need a crypto exchange. When you want to trade cryptocurrencies on a regular basis, you can’t do it without these kinds of exchanges.

The Best Cryptocurrency Exchanges of 2022

This time, we’ll look at how centralized and decentralized exchanges compare. This is the main fight that will happen in 2022.

Centralized Crypto Exchanges

The main thing about them is that they are run by a certain group. Here are both the pros and cons of centralized cryptocurrency exchanges. The CEX has laws that govern it and charges fees for transactions. But the situation with regulation is still very bad.

Why centralized exchanges are good:

• Simple work with money that doesn’t have to be backed by anything. Here, it’s easy to put money in and take it out.
• Interface convenience. Most of the time, centralized exchanges make it easier for a user to get started. They are better for people who are just starting out than decentralized exchanges.
• The number of trading pairs and the number of new instruments. Centralized exchanges can trade in many different pairs. Here, there is more liquidity and more trading, so transactions can be done faster.
• There is a central operator in charge of everything. This means that the people who work for the company that owns the exchange can control all transactions, updates, and trades that happen on the exchange.

Centralized exchanges have some problems:

• You could be stopped.
• Checking is required.
• You don’t own the money on the centralized exchange. They belong to the exchange, are kept in its wallets, and can be moved at any time to wallets owned by third parties. You can’t do transactions on your own because you don’t have the private key.
• Crypto exchanges that are centralized can be broken into.
• Bid manipulation. For example, to drop the price of an asset for a short time so that a chain of sales brings in more money for the exchange.

Top Centralized Cryptocurrency Exchanges of 2022

1. Binance;
2. Qmall;
3. Bybit;
4. FTX;
5. Coinbase.

Decentralized Exchanges for Crypto

There is no one person in charge of these exchanges. They make it possible to trade cryptocurrencies, but they don’t have the middlemen or restrictions that centralized exchanges have. The idea behind a decentralized crypto exchange is different. The DEX account is not a user account; it is a wallet.

Why decentralized cryptocurrency exchanges are good

• Lack of control from one place. They run on their own and can’t be turned off. Trading on the exchange is done through transactions. A DEX can’t be stopped by laws and rules.
• Security. Users own their money; they don’t rent a wallet.
• Anonymity. All you need to do business is a wallet.
• There are new coins and trading pairs. There may not be such trading pairs on any cryptocurrency exchange, but DEX instruments let you trade any cryptocurrency as long as there is enough liquidity and people are willing to trade.

Downsides of DEX:

• The user is responsible. You should know that the cryptocurrency you store on a DEX is yours. But only if you know what your password is.
• Interface is often hard to use, and transactions take a long time.
• How hard the order execution system is to understand. Most of the time, DEXs don’t have useful trading tools like stop loss and take profit.
• Low liquidity. Traders are turned off by the fact that they can’t make the necessary exchange as quickly as possible.

2022’s Best Decentralized Cryptocurrency Exchanges

• Uniswap;
• DyDx;
• 1inch Exchange;
• Sushiswap;
• PancakeSwap.

The Bottom Line

Most overviews of cryptocurrencies say that CEXs are more like banks. There is a clear person in charge who is in charge of your assets and has the power to steal them. On centralized exchanges, users don’t own the crypto-assets they buy or sell.

DEXes usually have a hard-to-use interface and lack important features that users need. In this case, the best thing to do would be to mix these two kinds of exchanges. If you trade a lot and liquidity is very important to you, you should keep using centralized platforms. Use DEXes if you don’t trade very often.