Invest Wisely: Best Crypto Exchanges of 2022

Crypto trading is developing at a rapid pace. New trading platforms are constantly appearing on the market, where users exchange digital coins and operate with fiat assets. Now, there are hundreds of crypto exchanges, but you can get confused by their variety.

Not all sites should be trusted with your assets. At the same time, there are proven exchanges that have been on the market for a long time and are actively developing in their direction.

Things to Pay Attention to When Choosing a Cryptocurrency Exchange

• The lifespan of the site. Give preference to time-tested exchanges: no one needs one-day companies.
• Liquidity and trading volume. The larger the exchange, the more active users on it, and the easier it will be to work on it. Large crypto exchanges serve numerous currency pairs. It is easier and faster to sell the necessary coins or buy cryptocurrency on them. Do not forget that the more users on it, the greater the credibility of the exchange itself.
• Comprehensive information about the exchange. Reliable cryptocurrency exchanges always provide detailed information about themselves and their founders.
• Sizes of commissions and payments. There are commissions on almost any major exchange, the only difference is in their size. And when the rest of the parameters are equal, choose a less “greedy” crypto exchange.
• Tools offered by the platform. It is not about cryptocurrency pairs, but about trading instruments — from those familiar with any classic exchange stop-loss or trading with leverage to specific staking, savings, and lending. Choose an exchange with the tools you need.
• User reviews. Be sure to read the user reviews of the crypto exchange you plan to use. And, of course, look for such reviews not on the exchange website, but from independent sources.

But first, it is better to decide whether you need a crypto exchange as such. Such exchanges are indispensable when you want to trade cryptocurrencies on an ongoing basis. If your goal is to exchange cryptocurrency for fiat money one time, it is best to use a regular exchanger like Changelly.

Best Crypto Exchanges 2022

This time, we will make a comparison in the plane of centralized and decentralized exchanges. This will be the main confrontation in 2022.

Centralized crypto exchanges

Their main feature is that they are controlled by a certain organization. This is where both the advantages and disadvantages of centralized crypto exchanges lie. The CEX charges fees for transactions and is also regulated by laws. However, the moment with regulation remains extremely shaky. 

Benefits of centralized exchanges:

• Simple work with fiat money (USA/EN dollars and others). Here you can deposit and withdraw your funds easily.
• Interface convenience. Most often, centralized exchanges make it easier for a user to get started. They are friendlier to beginners than decentralized exchanges.
• Additional instruments and the number of trading pairs. Centralized exchanges have access to numerous trading pairs. Liquidity here is higher, and trading volumes allow transactions to be completed faster.
• Presence of a central (controlling) operator. This means that all transactions that take place on the exchange, updates, and trading can be controlled by representatives of the company that owns the exchange.

Drawbacks of centralized exchanges:

• You may be blocked. 
• Mandatory verification. 
• Funds on the centralized exchange do not belong to you. They belong to the exchange itself, are stored in its wallets, and can be withdrawn to third-party wallets at any time. You do not have access to the private key, and you cannot make transactions yourself.
• Centralized crypto exchanges can be hacked. 
• Bid manipulation. For instance, to collapse the value of an asset for a moment so that the cascade of liquidations brings more income to the exchange.

Rating of centralized crypto exchanges 2022

1. Qmall;
2. Binance;
3. Bybit;
4. Coinbase;
5. FTX.

Decentralized crypto exchanges

These are exchanges that do not have central control. They provide the opportunity to trade cryptocurrencies but do it without intermediaries and restrictions that are characteristic of centralized exchanges. A decentralized crypto exchange is built on a different principle. The DEX account is a wallet, not a user account.

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Benefits of decentralized crypto exchanges:

• Lack of central control. They work autonomously: they cannot be disabled, and trading on the exchange is based on transactions. No laws and prohibitions can stop a DEX.
• Security. Users own their funds: they don’t rent a wallet.
• Anonymity. All you need is a wallet for transactions.
• Availability of trading pairs and new coins. There may not be such trading pairs on any crypto exchange, but DEX instruments allow you to exchange any crypto if enough liquidity and participants are willing to make an exchange.

Drawbacks of DEX:

• User responsibility. You need to realize that the cryptocurrency that is stored on a DEX belongs to you. But only as long as you remember your password.
• Often inconvenient interface and slow transactions.
• The complexity of the order execution system. DEXes most often lack convenient trading tools, such as stop loss and take profit.
• Low liquidity. The inability to carry out the necessary exchange in the shortest possible time repels traders.

Best decentralized crypto exchanges in 2022

1. Uniswap;
2. DyDx;
3. 1inch Exchange;
4. Sushiswap;
5. PancakeSwap.

Conclusion

According to most cryptocurrency overviews, CEXes are more like banks. There is a clear controlling person here who is responsible for your assets, but, at the same time, can steal them. On centralized exchanges, crypto-assets do not belong to users.

DEXes typically have an inconvenient interface, and also lack essential functionality for users. Here, the best solution would be to combine these two types of exchanges. If you are a frequent trader and liquidity is crucial to you, the best solution is to continue using centralized platforms. If you rarely make trades, use DEXes.