If you are a new crypto trader keen on avoiding a bad trading experience, the first few things you need to understand are the systems set in place, what to trade, when to trade it, where to trade, and how to trade.
Fortunately, in an information-powered world, you can learn everything you need about all these aspects as long as you are willing to do diligent research.
This write-up focuses explicitly on the “where to trade” part by highlighting the top crypto exchanges for new cryptocurrency traders in the following two categories:
- Centralized (CEX)
- Decentralized (DEX).
Top 4 Centralized Exchanges (CEX) For New Cryptocurrency Traders
Centralized crypto exchange platforms act as the middleman between cryptocurrency buyers and sellers.
Getting started on centralized exchanges involves:
- Signing up: As a pro tip, during the sign-up process, take advantage of crypto sign-up bonuses & referral codes by getting an invite code for top crypto exchanges from cryptocurrencycodes.com, one of the best places to get crypto deals, referrals, and bonuses.
- Identity verification: This process often involves submitting your national ID, driver’s license, passport, or another verifiable identity document.
- You then verify your account, access the exchange, and fund your wallet by converting your local currency to your preferred crypto.
Trading on these platforms happens through an order book. Centralized cryptocurrency exchanges are in charge of your currency. They hold the money in escrow until both parties are satisfied and often have high trading volumes. Their downside is that they are more susceptible to hacks.
Some of the top centralized crypto exchanges for new cryptocurrency traders include:
- Binance
Some features that make Binance a good crypto exchange for new traders are:
- It has a beginner-friendly section called Binance Earn that offers guidelines on earning money from cryptos and growing your crypto holdings.
- A learning hub for cryptocurrency traders at all levels.
- A Binance Visa Card that offers 8% cashback with every purchase.
- Crypto.com
Some features that make Crypto.com a good crypto exchange for new traders are:
- A Visa card with up to 5% cashback on crypto purchases.
- Crypto loans where you leverage your ‘Virtual assets’ as collateral.
- Low transaction fees of 0.4%, which reduces with increased trading volume.
- Gemini
Some features that make Gemini a good crypto exchange for new traders are
- High security with wallets secured by multi-signature technology.
- The exchange offers different rates for mobile and desktop transactions.
- The platform has a Cryptopedia resource section.
- A transaction fee of 0.5%.
- Coinbase
Some features that make Coinbase a good crypto exchange for new traders are
- They use a flat percent fee per transaction ranging from $0.99-$2.99 and 1.49%-3.99% depending on the nature of the transaction.
- You can use various deposit and withdrawal options, including PayPal and wire transfer.
- Coinbase offers a wallet with no restrictions on deposits or withdrawals.
Top 4 Decentralized Exchanges (DEX) For New Cryptocurrency Traders
The trades on these platforms run from peer-to-peer without a central authority, with blockchain technology helping secure all transactions.
Getting started with decentralized crypto exchanges calls on you to connect your wallet to one of the decentralized platforms. Decentralized exchanges offer liquidity pools where investors lock up their funds to get returns and allow cryptos swaps.
These platforms offer anonymity because they do not require identification.
Moreover, security risks are not a problem because these crypto exchanges rely on smart contacts instead of people. Since there is no intermediary, you are the custodian of your tokens and profits.
Some of the top decentralized crypto exchanges for new traders include:
- Uniswap
This crypto exchange’s key features include the following:
- Only support ERC-20 tokens on the Ethereum blockchain.
- Flat rate of 0.3% per trade.
- Early access to new tokens in the market.
- PancakeSwap
PancakeSwap’s key features include but are not limited to the following:
- It works on the BNB Chain, thus allowing you to swap BEP-20 tokens.
- 0.2% transaction rate.
- The exchange has deflationary protocols that help maintain the currency’s value.
- MDEX
This crypto exchange’s key features include the following:
- 0.3% transaction fees.
- No withdrawal fees.
- Friendly swap interface.
- High security due to various server locations.
- Sushiswap
This crypto exchange’s key features include the following:
- 0.3% trading fee per transaction, with 0.25% distributed to the liquidity pool.
- Based on the Ethereum blockchain.
- They don’t use smart contacts; instead, an algorithm determines the price.
As a new crypto trader, always stay informed on the value of the cryptocurrencies in the market. Additionally, remember that crypto exchanges offer different experiences and profits, so choose one carefully to ensure you have a good crypto trading experience.
