Cryptocurrency is one of the contributions of the 21st century technological era. It is a digital currency that users can transact digitally only. Such currencies use cryptography for safety purposes. Some examples of cryptocurrencies are Bitcoin, Ethereum, Dogecoin, and Cardano.
Cryptocurrency exchange refers to the process of exchanging or transacting digital currency through a medium. This blog shall list the best crypto trading apps in 2024, alongside defining what it is and the types of such exchanges.
What is a cryptocurrency exchange?
Crypto exchange refers to the process of exchanging digital currencies or cryptocurrency. The currencies can be for different assets as well. People can exchange such currencies through cryptocurrency wallets, wire transfers, and credit card payments.
People can convert cryptocurrency into physically transferable money with anonymous prepaid cards. After that, they can withdraw cash through ATMs. If the cryptocurrency is not convertible into physically transferable currency, people can withdraw it in the form of tangible assets like gold in the physical world.
Here, cryptocurrency exchanges indicate the platforms or apps with which crypto can be exchanged. These privately held platforms allow users to transfer and receive cryptocurrencies and assets. Utilizing such applications is the most common method of crypto exchanges.
Types of Crypto Exchanges:
There are three broad types of crypto exchanges– centralized, decentralized, and hybrid. Each type can be profitable as well as risky for users.
Centralized crypto exchanges (CEX) play the role of a mediator between the buyer and seller of crypto assets. It generates profits by receiving transaction fees and commissions.
With decentralized crypto exchanges (DEX), person-to-person crypto asset transactions are possible. People can transfer and receive digital currencies and assets directly with their digital wallets.
Hybrid exchange platforms offer the abilities of both CEX and DEX. It allows faster transactions and higher liquidity than other cryptocurrency exchanges.
Top Cryptocurrency Exchanges & Apps in 2024:
Crypto.com: Launched in 2016 in Hong Kong, Crypto.com has been a popular crypto exchange and app lately with $0 investments. It has now shifted its headquarters to Singapore. The platform has a trading fee structure starting from 0% to 4% as per volume of the currencies. It supports over 275 tradable coins. Moreover, Crypto.com has higher security standards.
Kraken: Launched in 2011, Kraken is one of the most prominent cryptocurrency exchanges now. It offers extensive competitive transaction fees. It is available in two versions, Kraken and Kraken Pro. The former doesn’t have the option of choosing the cheapest fees but offers the choice of ‘instant buy.’ On the other hand, the Pro version facilitates its users getting higher discounts.
Gemini: It comes with a user-friendly interface that allows people to understand this platform better. It was founded in 2014 and is operational in countries other than the USA, such as the UK, Canada, Singapore, Hong Kong, and South Korea. Gemini has a base trading fee of 0.075% that can differ depending on the trading volume of cryptocurrencies.
Coinbase: One of the most trusted cryptocurrency exchanges and apps with advanced security features. The platform has a strong user rating of 4.7/5. It supports more than 250 tradable coins. Due to its protected trading methods, Coinbase has a large community. The platform was launched in 2012 and offers significant cryptocurrencies such as Bitcoin, Cardano, Ethereum, etc. Its trading fees are comparatively higher than other crypto-exchanging apps.
KuCoin: Founded in 2017, KuCoin allows more than 700 digital currency exchanges. It is currently available in 200 countries but has fewer positive user reviews. The trading fees of KuCoin start from 0.005% and go up to 0.1%, which is much less compared to other platforms. It allows users to receive interest in their cryptos.
Cryptocurrency exchanges help in managing cryptos and digital assets. There are three types of crypto exchange apps: centralized, decentralized, and hybrid. Different crypto exchanges and apps offer different offerings. Many do not allow trading in specific countries. Look for the most suitable crypto trading platform today. Enhance your knowledge of the ongoing tech trends with our blogs.