Cryptocurrency exchanges play a crucial role in bringing mainstream users into the fold. Several platforms cater to the needs of different types of users, with some specializing in particular aspects. The ongoing competitiveness in this space paves the way for broader mainstream adoption of crypto assets in the years to come. 

Finding The Right Exchange Matters

There are several reasons to pick one cryptocurrency exchange over another. First, these platforms are the gateways for newcomers looking to explore this novel industry and gain exposure to some of the world’s most volatile markets. Moreover, exchanges have evolved tremendously over the years, providing access to more markets and investment vehicles than ever before.

Dealing with an exchange requires finding a platform that suits your individual needs. No two traders are alike, and newcomers have different expectations and needs than experienced traders. Therefore, trading platforms need to figure out how they want to attract users, and the following five platforms do so in very different ways.

Pancakeswap/Uniswap/Sushiswap/1Inch (Decentralized Exchanges)

The various decentralized exchanges make cryptocurrencies much more versatile. Users can explore thousands of trading pairs, provide liquidity to earn trading fees, stake assets, and more. Uniswap is the leading decentralized exchange across all blockchains, even though its developers can choose which currencies they want to make accessible through the web interface. All pairs ever created remain accessible by directly interfacing with the smart contract.

While Pancakeswap, Sushiswap, Uniswap, and 1Inch share many similarities, they tap different blockchains. Uniswap runs solely on Ethereum, whereas Pancakeswap is on the BNB Chain. 1Inch and Sushiswap explore multiple blockchains to attract more liquidity and users. The trading experience will be similar across all platforms and caters primarily to experienced crypto users rather than newcomers. 

MEXC

Although it appears MEXC is often overlooked as a top centralized exchange, the platform provides access to solid trading pairs and more advanced functionality for token holders. Its high-volume matching mechanism favors trades for more significant amounts, and its overall user interface is very novice-friendly while still providing advanced tools to more experienced traders.

Numerous trading vehicles are accessible under the MEXC banner, including spot, futures, margin, and ETF trading. In addition, the company is known for quickly adding new markets which ay have tremendous future potential. IDO projects and Web3 ventures are often found on MEXC before any other bigger exchange. 

Binance

It is hard to ignore the world’s largest cryptocurrency exchange. Binance dominates the user count and trading volume landscape, combined with hundreds of trading pairs, fiat currency support, and many advanced features. Moreover, its mobile application makes crypto trading very accessible to all users.

Accessing Binance is possible from most countries, although individual platforms exist for the United States and other regions. Setting up these siloed versions of Binance is part of regulatory compliance, yet they all provide the same interface and overall user experience. 

Bybit

The Bybit exchange has noted significant growth since adding spot trading to its platform in 2021. Bybit initially offered derivatives only, but the switch yielded a fivefold user increase across over 150 countries. Moreover, the platform has numerous trading options, including Options trading, derivatives, spot trading, DeFi access, an NFT marketplace, and the Bybit Launchpad. With over 4,7 million new users in 2021, the company continues to climb the rankings. 

Moreover, security is an essential aspect of any cryptocurrency trading platform. Bybit invested 25% of its budget in security to optimize its security and infrastructure. The company also established the world’s first crypto trading competition – World Series of Trading – engaging more people to get involved in the industry. Moreover, the exchange noted an average 24-hour trading volume of $11.8 billion in 2021. 

Coinbase

Most people who have bought their cryptocurrency in the past few years will have done so through Coinbase or created an account there. It is one of the most frequently-used exchanges today, thanks to a secure platform, significant trading liquidity, exposure to many prominent markets, and overall ease of use.

As Coinbase provides many educational campaigns – and associated rewards, it is a fan-favorite among people entering the cryptocurrency space for the first time. In addition, creating a diversified portfolio through these [small]rewards brings in many newcomers, paving the way for long-term crypto-community growth.

Conclusion

Many crypto exchanges and trading platforms compete for the top spot in the industry. However, these platforms take different approaches to achieving that goal, creating more personalized experiences depending on the person using these platforms. As the industry continues to grow, there will be even more variety, making it easier for newcomers to find the platform they resonate with.