Top 5 Most Popular Crypto Exchanges and Their Benefits

• Binance has minimal fees but is currently under investigation in the US
• Coinbase has been sued by SEC but continues to operate as usual
• Kraken is one of the oldest Bitcoin exchanges whose deposits grew by 25% after it stated it stayed in Canada
• KuCoin is not licensed in the United States but is one of the most stable exchanges
• ByBit decided to back off from Canada and focus on UAE operations

Crypto exchanges are trading platforms for cryptocurrencies that are being exchanged for other assets and traditional currencies and that enables users to earn some benefits doing so. These methods ensure user privacy and transparency for both trade parties. Companies can use these platforms to accept or purchase their own cryptocurrencies, and they are the most frequent way for enterprises to get started investing in cryptocurrencies. To reduce transaction fees, cryptocurrency exchanges can potentially be used as practical media for international trading.

A product must meet the following criteria to be considered for inclusion in the crypto exchanges category: 

•   Accept cryptocurrency payments in return for goods
•   Traditional blockchain transactions should be simple
•   Make it easier to deposit and withdraw cryptocurrency funds 

“Ease of Use” and “Quality of Support” are the two most important criteria that influence consumer satisfaction with cryptocurrency exchanges goods. An algorithm identifies the attributes that are most likely to predict user happiness within this category to calculate these factors.

These are the top five cryptocurrency exchanges in terms of traffic, liquidity, trading volumes, and trust in the legitimacy of reported trade volumes. 

Binance

Binance  is the world’s largest crypto exchange, aka trading platform, offering a wide range of benefits, such as an excellent selection of market charts and hundreds of cryptocurrencies. Users can also access a number of trading alternatives, including futures and options, as well as order kinds. However, many services and functionalities are not available in the United States, and just 150 coins are offered to consumers in the United States.

While the platform’s minimal fees may be tempting, it has encountered regulatory concerns and is currently under investigation in the United States. 

 The SEC filed a complaint against Binance, and founder Changpeng Zhao on June 5, 2023, for violating US securities laws.

“All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure,” the business said in a statement. “We will vigorously defend against any allegations to the contrary.”

Following the filing of 13 securities charges against the firm, crypto investors withdrew  $791.6 million from Binance within 24 hours.

Pros:

•   Over 150 tradable cryptocurrencies for the U.S. users
•   Low fees
•   A diverse range of trading options and order types are available

Cons:

•   The version available in the U.S. is more limited
•   The platform is complicated and may be perplexing
•   There is no built-in digital wallet
•   Binance has fallen into regulatory issues in numerous countries

Coinbase Exchange

Coinbase  is a well-known crypto exchange that makes buying, selling, and exchanging cryptocurrencies simple and offers some benefits for users as well. Coinbase makes purchasing cryptos as simple as purchasing stock through an online stockbroker, but it can have expensive fees.

In a recent development, The Securities and Exchange Commission (SEC) claimed Coinbase worked as a broker, exchange, and clearing agency for investments subject to SEC laws without being legally registered. According to the regulator, this allowed the corporation to avoid oversight, including safeguards against conflicts of interest. Coinbase stated that the guidelines were unclear. “The solution is legislation that allows for fair road rules to be developed transparently and applied equally, not litigation,” said Paul Grewal, Coinbase’s chief legal officer. “In the meantime, we’ll continue to operate our business as usual.”

Pros:

•       For crypto newcomers, it is simple to utilize
•       Supports a significant variety of cryptocurrencies
•       possibilities for earning cryptocurrencies

Cons:

•   Transaction costs that could be quite expensive
•   Problems with customer service
•   Coinbase has access to your private keys

Kraken

Kraken  is one of the oldest crypto exchanges, offering over 220 different coins for purchase, sale, and trading at competitive exchange rates and plenty of other benefits.

It distinguishes itself by offering both spot trading at current market rates and Bitcoin futures. Kraken is an excellent choice for novice and experienced cryptocurrency investors and traders seeking minimal trading costs and access to a diverse range of coins.

In a settlement  with the SEC on February 9, 2023, Kraken agreed to pay $30 million in penalties and shut down its staking operation. As a result of this agreement, Kraken can no longer provide staking services to clients in the United States.

Customers outside the United States are allowed to continue staking their crypto holdings through a separate Kraken company.

However, Kraken’s customer deposits in Canada  grew by 25% after Binance and OKX announced their departure from that country.

In a recent development, Vitalik Buterin, the co-founder of Ethereum, allegedly transferred 400 ETH  to the Kraken exchange. The deal, which took place on June 5, 2023, was finished in 30 seconds and was worth almost $723,000. This decision comes against the backdrop of the Binance dispute and concerns with Kraken’s funding gateways.

On the same day, the other Ethereum co-founder, Jeffrey Wilcke, reportedly transferred 22,000 ETH  worth over $41 million to the Kraken exchange.

Pros:

•       Supports over 220 coins
•       A straightforward user interface
•       Exchange of high liquidity

Cons:

•       Fees are higher when Kraken Pro is not used
•       Some consumers have reported losses as a result of hacks

KuCoin

KuCoin  is a cryptocurrency exchange with over 200 countries of operation.

While experienced traders may appreciate some of the features of this exchange, KuCoin is not licensed in the United States and has received negative user feedback.

Still, U.S. consumers can open a KuCoin account, but their access to features is limited because KuCoin is not licensed to operate in the country. Given this, opening an account may pose certain risks. For example, if U.S. regulators decide to crack down on KuCoin, users may be unable to withdraw their funds. There have also been regulatory concerns with the exchange in nations such as the Netherlands and Canada.

When FTX collapsed in November 2022, many users speculated that KuCoin was heavily exposed to FTX.

KuCoin CEO Johnny Lyu assured clients  that it had no vulnerability and was in no way related to FTX. In light of these instances, KuCoin, like other cryptocurrency exchanges, implemented Proof of Reserves to increase user trust.

Pros:

•   The ability to earn interest on cryptocurrency
•   A diverse range of cryptocurrencies
•   Low fees

Cons:

•   Not authorized in the United States.
•   Poor user feedback

ByBit

Bybit  is a crypto derivatives exchange that offers a comprehensive set of benefits and advanced trading tools. It offers excellent security and a zero-downtime commitment, but it is not available in the United States. Read our complete Bybit review to see if it’s perfect for you.

In the latest series of development, Bybit, which recently opened its global headquarters in Dubai , joined Binance and other crypto exchanges in closing their operations in Canada .

This move was due to the country’s challenging regulatory environment, which revealed new guidance for crypto companies in February that requires crypto asset trading platforms to obtain approval from the Canadian Securities Administrators (CSA), which includes passing various due diligence checks.

Pros:

•   Up to 100x leverage on cryptocurrency
•   Excellent technology supports advanced tools
•   A risk-free testing environment in which to learn and explore
•   Educational materials

Cons:

•   Not accessible in the United States
•   Crypto derivatives are exceedingly dangerous
•   Not suitable for spot trading
•   Your information may be shared with third parties for marketing purposes

Conclusion

Recent crypto market conditions have brought cryptocurrency exchanges’ financial stability into question. Investors who hold crypto assets on exchanges should be aware that exchanges may cease trade, preventing them from moving their digital assets.

Assets held on exchanges are not covered by either government or trade groups. Furthermore, if an exchange declares bankruptcy, investors’ crypto accounts may be considered assets of the company rather than the clients of the exchange.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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