One of the first steps for newcomers looking to dive into the crypto world is choosing the right crypto exchange. This is a critical decision that will make or break your crypto experience, and making the right choice is crucial.
The trouble is that, according to CoinGecko, there are 211 crypto exchanges operating today, and separating the wheat from the chaff can be a long and arduous process.
Each of these exchanges offers a different set of features, fees, and security levels, designed for a different target audience. We will help you consider them all, and hopefully, by the end of this article, you will have enough knowledge to make an informed decision.
What is a Crypto Exchange?
At the most basic level, a crypto exchange is a platform that lets you buy and sell digital assets like Bitcoin, Ethereum, Solana, and thousands of altcoins. Some offer more advanced features, like incorporated wallets, but more on that later. In general, crypto exchanges come in two flavors:
Centralized Exchanges (CEXs): These are traditional platforms like Coinbase, Binance, Kraken, and Bitstamp. They function like banks for crypto—easy to use, highly liquid, and often regulated.
Decentralized Exchanges (DEXs): These are peer-to-peer platforms like Uniswap, PancakeSwap, or dYdX. They offer more privacy and control but often come with a steeper learning curve.
For beginners, starting with a centralized exchange is probably a better choice, as they offer simplicity and a wide range of features. Once you learn the ropes, you can start considering DEX platforms, if there is a need.
Security Features
Hacks, like the one that crippled ByBit in February, are an unfortunate side effect of the crypto exchange business. That is why considering safety features before choosing a crypto exchange is a must. A minimal list of features includes two-factor authentication (2FA), cold storage, insurance funds, and regulatory compliance. Consider only platforms that offer all of these. You can read Webopedia’s recommendations on crypto exchanges to quickly glance at which platforms meet these terms. You should also google exchange’s name followed by “hack” or “scam” to see whether they have experienced security breaches in the past.
Understanding the Fees
Crypto exchanges make money by charging fees to their users, and they vary a lot. The most common ones are trading fees, charged for each transaction. They are usually between 0.1% and 1.5%. Next, we have deposit and withdrawal fees. Finally, there are spread fees used by exchanges that don’t charge fees directly but rather through a difference in buy and sell prices. Different platforms charge different fees, so make sure to read the fine print, as this is a classic example of the Devil in the details.
Supported Coins and Pairs
Crypto exchanges list only a fraction of all cryptocurrencies available on the market today, which is no wonder considering that there are over 18,000 altcoins in existence. If you are looking to buy or sell Bitcoin, Ethereum, and a few other big ones, you don’t have to worry about that, as most platforms list major tokens. But if you are looking for something exotic, you will need to research which exchanges list your favorite cryptos. Also our editorial team asks not to gamble, as you will loose all your money. Say thank to us later.
Another thing to consider is trading pairs. For selected pairings, exchanges allow direct conversions, like BTC/ETH or ETH/SOL. For others, you will need to sell crypto for fiat and then buy the desired altcoin.
Liquidity Matters
Liquidity determines how easily and at what price you can sell your assets on an exchange. Higher liquidity allows for stable prices and fast transactions, and vice versa. That is why most people prefer major exchanges like Binance, Coinbase, and Kraken. Smaller platforms often struggle with liquidity, forcing users to wait for longer periods before realizing their sell orders, especially during high-volume periods.
Conclusion
It is important to remember that crypto exchanges come in many shapes and forms and that there is no one-size-fits-all solution. The choice will mostly depend on your personal preferences and needs. It is up to you to decide which features are most important. If you are looking for beginner-friendly and secure, you should try Coinbase, Gemini, or Bitstamp. If low fees and deep markets are your priorities, then Binance, Kraken, or Bybit are your safest bets. And finally, it is perfectly OK to use more than one exchange and swap platforms to best suit your needs.
