Top Crypto Exchanges for 2022

With investors eager to cash in on cryptocurrency’s high returns, the craze has been on for some time now. There is a lot of work involved in finding the best platform to purchase and sell crypto assets.

In spite of this, there is considerable doubt about the legitimacy of some crypto trading sites. It is therefore important to look at an exchange platform’s security first. 

However, in addition to buying and selling, a decent exchange platform should include additional features such as staking incentives, margin trading, cryptocurrency technical analysis tools, and so on.  In the following section, we’ll review the best cryptocurrency exchanges and their most important features.

10 Best Crypto Exchanges

Exchange	Fees	Currencies	Best for	Account minimum	Website
	0.01 – 0.4% per trade	312	Best overall	$0	visit
	0 – 0.5% per trade	54	New cryptocurrency investors	$10	visit
	0.08% – 0.1% per trade	344	Low trading fees	$0	visit
	0.50% per transaction	80	Bitcoin-focused investors	$2	visit
	0.25% per transaction	90	Best customer support	$2	visit
	0 – 0.35% per trade	190	Best for portfolio diversification	$3	visit
	0.2% per transaction	180	Best for margin trading	$0	visit
	0.12% – 0.25% per trade	180	Best for scalping	$20	visit
	0.12% – 0.25% per trade	200	Excellent trading platform	$10	visit
	0.25% floating rate + fixed fee	250	Instant transactions	$50	visit
	0.5% – 3.99% per trade	50+	Security	$0	visit
	0.1% per transaction	380	Experienced traders	$0	visit

What is a crypto exchange?

A cryptocurrency exchange is a place where you may purchase and sell digital currency. You can use exchanges to swap cryptocurrencies, such as Bitcoin for Dogecoin, or to purchase cryptocurrencies with fiat money, such as the US dollar, for example.

Exchanging platforms always display the current market price for each cryptocurrency. In addition, many of these platforms allow for the conversion of cryptocurrency to fiat currency until such a time that you are ready to withdraw them.

How does a cryptocurrency exchange work?

Cryptocurrency exchanges function as brokers between buyers and sellers of the digital money they trade, like traditional brokerage firms. A buyer can fund their account in a variety of ways, including by a direct bank transfer or by using a debit or credit card. Using its services entails paying some fees or commission.

In order to initiate a position, you’ll need to create an exchange account and deposit the full value of the asset. You’ll then need to store your crypto asset in your wallet until when you’re ready to sell or convert. 

Is using cryptocurrency exchange risky?

Because of the enormous amounts of billions of dollars worth of assets at stake, exchanges are attractive targets for hackers. Also, the exchange may be mismanaged, resulting in problems for hundreds or thousands of investors. 

If you’re concerned about being a victim of a high-profile hack, it’s a good idea to choose a respected and extremely secure exchange. 

How to open a crypto exchange account?

When it comes to signing up for a cryptocurrency exchange, here are the common steps:

• You’ll first need to enter some basic personal information, such as your name and email address. After that, you’ll need to include a payment method.
• A “Know Your Client” (KYC) process, which is essentially just identity verification, may be required depending on the nature of the trade and the extent of your investment.

Is a credit card or bank transfer accepted by crypto exchanges?

Despite the fact that individual cryptocurrency exchanges may support a variety of payment methods, the overall trend is the same across most platforms. Most exchanges accept card transactions and direct bank transfers to buy cryptocurrency. 

Bank transfers are a feasible alternative to credit cards in nations where credit cards are restricted. Also, it is essential that you be aware of withdrawal fees when transferring crypto from one exchange to another.

What is the best crypto exchange for beginners?

Cryptocurrency exchanges are not all created equal. Finding a cryptocurrency exchange that corresponds with your personal objectives should be of paramount importance. Generally, there isn’t much difficulty in opening an account on most of the platforms. In most cases, patience and perseverance are all that is required.

How to buy crypto?

In order to buy digital currency, you’ll need a digital wallet, which is an app that can store your digital money. To acquire cryptocurrencies, you often need to open an account with an exchange and then transfer fiat money to be used in the purchase. The digital wallet is the place where a seller can transfer crypto units to another user’s wallet.  Many exchanges allow the creation of free wallets on their site.

Is cryptocurrency taxable?

You must pay taxes on cryptocurrency. For US residents, the Internal Revenue Service (IRS) considers cryptocurrencies to be property, and transactions involving cryptocurrency are taxed in the same manner as transactions involving other property.

Cryptocurrency transactions are subject to taxes if you gain profit from them. On its own, the purchase of cryptocurrency is not taxed. It’s tax-free to invest in and hold cryptocurrencies, even if their value rises.

Things to consider when choosing the best crypto exchange

Consider the following while prioritizing:

Payment methods

It all begins with a single investment. Regardless of how big or small, your crypto transaction is, you will need to fill your account with an approved payment method. Credit cards, Paypal, debit cards, and digital assets are the most often used payment methods.

The fees incurred can vary depending on the type of payment you use to make your transaction. Digital coin deposits are generally the most cost-effective method of deposit. If you want to save money, you should look for a payment option that is both safe and cost-effective.

User-friendliness and trading tools

When all is said and done, an exchange’s primary duty is the safety and security of investors’ assets. While some systems include capabilities for market analysis and charting, there are others that don’t.  If you’re looking to go beyond “hodling,” charting and analysis resources are essential. In order to become an active trader, you need to look for platforms that have trading tools.

Additionally, a good exchange must have a user-friendly layout that isn’t too congested and is straightforward to navigate. Integration with external systems like payment wallets should be seamless and intuitive.

Coins and fiats selection

You should always take a keen look at the types and number of cryptocurrencies that may be bought and sold on the exchange. If you’re only interested in one coin, you may be able to use a crypto exchange that exclusively accepts that single coin. Instead of wanting access to more fiat money, those who are crypto-obsessed prefer to own a variety of both crypto and fiat money.

It’s not enough to simply have crypto coins in your account if no one trades them. There should be hundreds of millions of dollars worth of crypto trading every day for you to feel confident that your crypto will be freely exchangeable when you want or need them to be.

Fees

You may be charged a flat fee or a percentage of the value of your trades when exchanging crypto, depending on the service provider. Based on price volatility, fees might range from a flat fee to a percentage of the transaction. A greater charge may be worth it if the exchange offers additional protections or security or if it provides additional functions you value.

Verification (KYC) process

In order to meet anti-money laundering requirements and guarantee the legitimacy of an investor’s identity and address, the KYC (Know Your Customer) validation process is required.

Each exchange has a slightly different KYC process, but for the average person, it only involves a few fast inputs. Additional verification could include your address, national ID, phone contact, or even a photo of you carrying that form of ID.

Restrictions

Because of local or national regulations, you may be unable to buy or sell cryptocurrency on some exchanges. Cryptocurrency trading has been outlawed in several countries, such as China. 

In most cases, you may find information regarding a currency exchange’s geographic restrictions and associated accessibility considerations, such as the currencies that are accepted on its website or in terms of service.

There is a great deal of regulatory ambiguity around cryptocurrencies in the United States, and several states have enacted their own laws.

Understanding the types of crypto exchanges

Centralized exchanges (CEXs)

A central authority controls the buying and selling of digital assets on these cryptocurrency exchanges.  Both the buyer and the seller must rely on a third party to monitor the transaction and safeguard their assets while they are using the platform.

On top of that, transactions aren’t saved on the blockchain. Such transactions need the provision of personal data for verification purposes. As a trusted intermediary, a CEX facilitates trade and protects the tokens it handles. CEXs also vet new crypto assets for suitability before listing them for trading. 

Decentralized exchanges (DExs)

Decentralized exchanges allow users to conduct peer-to-peer transactions without the need for a third party to act as a middleman. It is not possible to convert digital assets to fiat currency or vice versa on these exchanges, which exclusively support crypto-to-crypto assets. As a precaution, a blockchain ledger records every transaction.

Due to their restricted functionality and lack of a central authority to take responsibility for any transaction mishaps, DEXs have relatively low trading volumes and low liquidity. 

Peer-to-peer exchanges

The role of a peer-to-peer exchange is to link two different traders. Businesses typically pay a percentage of each transaction or a set fee per transaction to cover the costs of the website’s services. P2P trades typically have a reputation system in place to keep track of both your own and other users’ trading records.

As a result, your odds of a successful trade grow. In these platforms, trust is especially vital because you’re dealing with other traders directly, and their funds are not being monitored or managed by the platform owners.

Retail exchanges

A common characteristic of retail exchanges is their user-friendly interfaces. Even if you have no prior knowledge, you should be able to figure out where all the necessary components are located. So there are fewer complications with transactions; they generally supply their own wallets.

Retailers have a variety of methods of operation. Others facilitate crypto-to-crypto exchanges, while a few offers solely fiat to crypto trades.

Instant exchangers

Such entities offer non-custodial transactions, which work slightly differently, but the same principle applies. The process of exchanging currency is as simple as opening a web browser, choosing the desired currencies, entering an amount, and then clicking “Exchange.”

These services are able to function in the manner in which they do so because they make use of a variety of different exchanges. You can rest assured that the coins you’re looking for will be obtained in the quickest time possible, thanks to a variety of sources. Changelly is a well-known instant exchanger.

Top 10 Best Crypto Exchanges 

In conclusion

Here, we have attempted to give you an objective assessment of the finest cryptocurrency exchanges. It’s now up to you to select which of these is most suited to your specific objectives. These sites may not be perfect for you, but we’ve also outlined a few things to keep in mind when searching for a good platform.