With thousands of digital and traditional assets out there, beginners are often perplexed by the investment tools they need to master the art of trading. The cryptocurrency market, in particular, has to potential to make historic changes to your portfolio but might be a bit complex for novices. But hey! We’ve got you covered; here, we explore six leading exchanges you should try at all costs to help you get started.

 

“I could either watch it happen or be a part of it.” – Elon Musk

 

What are crypto exchanges?

Before we start, let’s explain what a cryptocurrency exchange is. Cryptocurrency exchanges are marketplaces where one can buy and sell crypto. The number of exchanges keeps rising as they allow almost anyone across the globe to participate. 

Crypto exchanges can be divided into centralised and decentralised exchanges (DEXs). Centralised exchanges act as an intermediary between parties, providing high liquidity, security and trustworthiness. While security risks and losses cannot be eliminated in the financial sector, centralised exchanges remain highly popular, with Coinbase, Gemini, and Huobi Global being among the popular names in the sector. 

DEXs, on the other side, are more suitable for experienced traders. They give traders complete control of their assets and security as it’s smart contracts and dApps that automate transactions. Popular DEXs include 0x Protocol, Sushiswap, Uniswap and Curve.

 

Top 6 Crypto Exchanges for 2022

1. Binance 

Binance is, without a doubt, one of the most popular cryptocurrency exchanges and the biggest Bitcoin and altcoin exchange in terms of trading volume. Founded by genius Changpeng Zhao in 2017, Binance offers low fees, numerous financial services and even its native coin Binance (BNB). In fact, BNB is one of the most traded utility tokens, among the top 10 coins on CoinMarketCap.

Major advantage: One of the best exchanges when it comes to fees.

 

2. Kraken

Kraken is another crypto titan that can help you ride the tidal waves of crypto investing. Founded in 2011 – one of the first BTC exchanges listed on Bloomberg Terminal – Kraken is considered one of the best places to buy and sell crypto. It supports spot trading and crypto features and offers a variety of digital assets. Here we should note that given Kraken’s advanced features, the platform is preferred among experienced traders. If you are a complete beginner, consult a licensed professional to help you limit poor financial choices. 

Major advantage: Advanced features ideal for more experienced traders.

 

3. Coinbase

Next on our list is Coinbase. Coinbase is defined as one of the most liquid regulated exchanges across the globe. For over a decade, Coinbase has been helping traders access different assets, advanced charting functions, and precise market data. Moreover, it offers numerous rewards, educational content, and user-friendly features.

Major advantage: Variety of features that make it extremely beginner-friendly.

 

4. Crypto.com

Crypto.com is one of the fastest-growing exchanges, attracting users from all over the globe. With its low fees and deep liquidity,  there is no wonder that the company has over 50 million users and growing. Besides, the mobile app Crypto.com offers is one of the best on the market, which helps users start trading on the go or from the comfort of their homes.

Major advantage: Great mobile features to help beginners get started. 

 

5. Bitcoin Loophole

While Bitcoin Loophole is not an exchange but a platform that connects traders and brokers, it deserves a spot on our list. Bitcoin Loophole is ideal for beginners as it helps them automatically connect with a trusted broker who can execute trades on their behalf. Most of the brokers Bitcoin Loophole works with offer a variety of tools, including copy trading, auto bots, and demo accounts, and allow users to get started with a small initial deposit. Note, however, that one should ensure that the services offered are regulated in their region.

Major advantage: Best for beginners as it connects traders and brokers automatically.

 

6. Uniswap

Last but not least, let’s talk about Uniswap, the first and largest DEX. Proposed by prodigy Vitalik Buterin in 2016 and launched by Hayden Adams, Uniswap allows users to swap Ethereum-based tokens and earn crypto without mining. Note that Uniswap does not accept fiat money, so you need to have already crypto to get started. One of the biggest advantages is its safety. 

Major advantage: The biggest DEX in the crypto world.

 

Which Crypto Exchange to Choose

The cryptocurrency world is highly versatile, so there are many options to choose from when it comes to exchanges, brokers and software to help you get started. That said, there are a few things to consider:

 

  • Invest in crypto education: Before you decide to trade, you should familiarise yourself with the assets of your choice, any relevant crypto regulations, your tax liability, and more. You should also invest some time in learning how to interpret market data, charts, signals, and trends. 

 

  • Consider your risk tolerance: Even if you choose the best trading platform to suit your financial needs, you need to know how to develop an effective risk management strategy and exit a trade. In fact, you should never forget that the crypto sector is highly volatile, so you should never trade more than you can lose.

 

  • Diversify your portfolio: While the crypto sector is one of the most lucrative areas in the investment world, experts suggest diversifying your portfolio to minimise risks. Thus, consider forex trading, stocks, and commodities like gold, oil, and silver. 

 

“When picking a list of growth stocks for long-term investment, broad diversification of the risk is the first and most important principle to follow. No one can look ahead five or ten years and say what is the most promising industry or the best stock to own.” – T. Rowe Price

Top 6 Crypto Exchanges You Should Try at All Costs: Final Thoughts

While the top 6 exchanges above have numerous advantages, note that success and profits are never guaranteed. In fact, you risk losing your entire capital. Thus, you should always do your diligence before getting started!