Friday, September 30, 2022

Top 5 Centralized Cryptocurrency Exchanges in 2022

A centralized cryptocurrency exchange is a platform where digital assets can be traded in real-time.

Buyers and sellers rely on a third party to handle their transactions and preserve their assets. The transactions on these centralized exchanges are not recorded on the blockchain, and as such, the supply of personal information is mandatory in a bid to validate all users. If you’re working with a business, further steps may be required to submit your company’s details or official data and have your account and information recognized.

When you open an account on a centralized trading platform, you are entitled to a limited withdrawal limit, and in order to increase these limits, additional data (mostly, KYC-related data) is required by centralized exchange platforms.

All verified users and traders on these platforms have access to the support team in the event of technical difficulties, such as in the case of forgotten passwords. This is where an exchange is important as it will prevent the occurrence of such by protecting its investors’ information.

Here are the top 5 exchanges globally;

Binance

Binance is the world’s number 1 centralized cryptocurrency exchange by trading volume and was founded in 2017 in Hong Kong by Changpeng Zhao and Yi He. The company is currently registered in the Cayman Islands.

The company provides access to the exchange of digital currency pairs on its technologically driven marketplace. The trading platform provides liquidity, maintains security, and enables a safe and efficient deal for its users, anytime and anywhere.

The company made a decision to relocate its headquarters to Malta in 2018, a move that was made as a result of new laws placed on cryptocurrency exchange operations in China at the time. The Binance website’s features include an easy-to-use layout and the trading platform has a massive ecosystem and community around the world.

The Binance Coin (BNB) is the exchange’s native token. BNB is a utility cryptocurrency that was first issued on the Ethereum blockchain in July 2017, it allows holders to pay lower trading fees on the Binance cryptocurrency exchange. Today, the digital currency sits on its own Binance blockchain, with an analog sitting on the Binance Smart Chain (BSC) network.

Coinbase

Coinbase has more than 30 million users in over 100 countries. It was founded in June 2012 by Brian Armstrong and Fred Ehrsam in San Francisco, California. The trading platform is ranked as the first of the centralized exchanges to make its public debut in the US, and the world at large. It trades on the NASDAQ Exchange under the ticker symbol “COIN.”

If you’re new to cryptocurrency trading and are worried about being overwhelmed by the charts and statistics that appear on the screen, Coinbase is a good choice as it has a relatively friendly user interface. 

The company operates remotely and lacks an official physical headquarters but has a mobile app for both IOS and Android users, and as such, can be accessed by anyone, anywhere.

While Coinbase is part of the consortium that issues the USDC stablecoin, it is unclear whether Coinbase will launch its own token soon in the near future, but the company believes that issuing a token will have an impact on the price of its stock, as it might result in considerable dilution to its existing owners and cause stock prices to decrease or become volatile, among other consequences of such a move.

FTX Exchange

Founded in May 2019 by Sam Bankman-fried and Gary Wang, FTX Exchange is a centralized cryptocurrency exchange based in The Bahamas.

Currently, the exchange has over one million active users and an average daily trading volume of $4.9 billion according to data from CoinMarketCap. Derivatives options, volatility options, and leveraged tokens are some trading instruments being offered by this company. FTX also provides spot markets in more than 100 cryptocurrency trading pairings, including BTC/USDT, UTH/USDT, XRP/USDT, and its native token, FTT.

As of May 8, 2019, FTT, the native crypto token of the FTX crypto derivatives trading platform was live on the open market. These coins adhere to the ERC20 protocol and can be found on a variety of spot exchanges. 

Huobi

Huobi Global is incorporated in Seychelles, and it operates its trading platform in Hong Kong, South Korea, Japan, and the United States amongst other countries.

The Huobi trading platform is one of the most established centralized exchanges with about 467 coins and 1,057 markets. 

The platform’s native digital asset is the Huobi Token (HT), an ERC-20 token. HT is a decentralized digital asset whose value is linked to the Huobi platform’s use case and popularity. As a result, Huobi’s volume and market share expanded, and so does the value of HT.

While the Huobi platform offers the most practical uses for HT, the token can be traded on other exchanges. Similarly, they can be sent to hardware wallets.

OKX

OKX is a cryptocurrency exchange established in the Seychelles that provides a platform for trading a variety of cryptocurrencies. It was established in 2017 by Star Xu with its headquarters in Malta, and some of its key features include spot and derivative trading.

Residents of the United States are unable to use the groundbreaking OKX cryptocurrency exchange due to the country’s tight prohibitions on virtual currency purchases and sales. OKCoin, the exchange’s sister site, is an alternative open to residents of the United States, albeit it does not provide as many coins or services as OKX

In terms of trading volume, it is one of the world’s most popular crypto exchanges. Hundreds of tokens and trade pairs are available to millions of users across more than 100 countries.

OKX’s native coin, called OKB, is a global utility token, it is utilized to settle transaction fees and in the exchange’s Dapps. As a result of the creation of the OKChain blockchain, OKB has shifted from using ERC-20 to using OKChain.

The token is deflationary in nature and as a result, has the tendency to grow in value over time.

Conclusion on Centralized Exchanges

As it is well known that the world is in a digital age, it is also expected that the means of financial transactions are also digital. Besides facilitating buying and selling activities of Bitcoin (BTC), and Ethereum (ETH) amongst other altcoins, the aforementioned cryptocurrency-based platforms are suitable for those who want to invest in the crypto industry with maximum safety assured.

While the industry has been experiencing suspicious exchanges and fraudulent transactions, these have avoided any controversy as they have put in place top-notch protection mechanisms such as KYC, anti-money laundering measures, collaboration with law enforcement, and account restrictions to ensure the community remains protected and that fraudulent activity is prevented.

This is a global approach that is applied in most countries where a trading platform is operating. The role of centralized trading platforms is integral in the emancipation of the new Web3.0 era.

 

Ayo Alabi
Ayo Alabi is an experienced writer and Fintech enthusiast, passionate about educating people and helping businesses that want to see their Google search rankings surge. Her articles have appeared in a number of e-zine sites, with focus on balancing informative with SEO needs–but never at the expense of providing an entertaining read.

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