What is a Cryptocurrency Exchange?

What is a crypto exchange?

One of the economic and financial hot spots in the world today is crypto. This is a wide open market full of opportunities and challenges. So, do you really understand crypto and crypto exchanges? Questions like: What is a cryptocurrency exchange, what is a coin exchange, what is a btc exchange are always asked by many people when they want to know about the crypto market. So let's find out with me through the article below.

What is Crypto?

Crypto, also known as Cryptocurency, is defined as cryptocurrencies, virtual currencies, digital currencies that operate on decentralized networks called blockchains – public ledgers maintained by a network of computers.

One of the biggest benefits of crypto is its decentralized nature. Crypto works on the principle of cryptography to ensure that transactions take place independently without relying too much on a third party. At the same time, it also takes advantage of advanced encryption techniques to ensure security, privacy as well as increase transaction speed and reduce intermediary transaction costs.

Register:

Register Crypto trading here

In addition, crypto also has a relatively high risk ratio because it is highly volatile due to the influence of many factors such as the market, investor psychology, regulatory developments and scientific and technological advances. In addition, only a few countries in the world currently recognize crypto as a legal form of payment, which means that the legal factor of crypto is not guaranteed.

What is a crypto exchange?

Crypto exchange, or cryptocurrency exchange, is a place that provides an environment and conditions for buying, selling, and exchanging different types of crypto.

Crypto exchanges are divided into 3 types of exchanges including:

Centralized Exchanges (CEX) are managed by a company or organization, transactions take place under the management and records of that organization or company.

Decentralized Exchanges (DEX) are just an intermediary environment for buyers and sellers to find each other. Users link their e-wallets to the exchange to make transactions and then disconnect to store their assets. Only when disputes or conflicts arise, will the exchange step in to resolve them.

Next-generation Exchanges are a new breed of cryptocurrency exchanges with advanced features such as margin trading, diverse advance asset options, and integration of the latest blockchain technology on the market.

The world's largest crypto exchanges

Binance, Mexc, CoinEX, Kucoin, Bibox, OKX

Cryptocurrency exchanges in Vietnam

Aliniex, Remitano

Things to note when choosing crypto exchanges

While the cryptocurrency landscape is constantly changing, choosing a reputable exchange is an important part of any investor’s long-term investment strategy. So how many factors are there to choose an exchange that suits your needs?

1. Security and safety

One of the biggest problems when participating in the crypto market is the relatively high possibility of being hacked and having your data stolen. If you participate in decentralized exchanges, you can proactively choose to store your assets with highly secure e-wallets such as Keepkey, Trezor, Ledger, Online Coinbase, Exodus Blockchain.. then participating in centralized exchanges makes you more dependent on the security features of the exchange. Because when you log in at CEX, you have created your own wallet and will conduct transactions, store crypto in that wallet. In other words, the exchange acts as a bank to manage your assets.

Because of these factors, before joining the exchange, you need to make sure the exchange will meet your security needs such as using strong encryption technology, two-factor authentication, face ID... Many exchanges, including Binance, have had a large amount of data stolen, affecting the exchange and users, you need to pay attention to this issue.

2. Variety of trading pairs

An attractive market is one that gathers many items, designs and is diverse in terms of prices. Participating in exchanges that support many cryptocurrencies will help you have a more diverse view of the cryptocurrency market, have more options for the right investment and sometimes compare the price increases and decreases of cryptocurrencies for long-term investment.

Many investors use the asset diversification strategy, which means not putting all of their money into one type but dividing it into different types. This is indeed a smart strategy because crypto always increases and decreases erratically and if this coin loses heavily, who knows, the virtual currency you accidentally invested in may bring high profits.

3. Low transaction fees

If you pay attention, banks always have a policy of supporting transaction fees, even free of charge, to attract customers. Thus, the transaction fee level not only affects individuals but also affects the floor. Normally, the transaction fee of the floor will be from 0.05% and not exceed 2%. This is the difference when depositing, withdrawing and trading assets and you need to calculate this fee to determine the actual profit you get when conducting transactions.

4. User friendly

A popular trading platform must be user-friendly and optimized. Trading platforms need to design and upgrade their interface to optimize all deposit, withdrawal, trading and information retrieval activities. In addition, trading platforms can provide tools to calculate profits, manage assets and track market fluctuations for members.

5. Good support features

The additional features of an exchange are usually evaluated relatively fully by users through support services, customer care, types of transactions, staking and possibly information about other financial products. These additional features may affect your use of the exchange, especially when problems occur such as failed transactions, forgotten passwords or data loss.

6. Reputation with customers

The reason why so many people use Gucci, Zara, Hermes... is largely due to the reputation and prestige of these brands. Similar to the crypto world, when choosing an exchange, you also need to listen to the market and see which exchange is rated the highest in terms of service quality.

Consulting many sources of opinions will help you gain experience in handling flooring-related issues, the first of which is selection.

Thus, a worthy exchange must fully meet the above 6 factors: Security and safety; diverse trading pairs; low transaction fees; user-friendly; good support features and reputation with customers.

Top reputable crypto exchanges in Vietnam

Next, I will introduce to you the crypto exchanges that are considered the most reputable and worth using in Vietnam today.

Top 1: Binance

As a leading name when it comes to the largest centralized exchanges in the world, Binance has a relatively high reputation index with more than 100 million users worldwide. Binance has high compatibility on both iOS and Android operating systems, a friendly interface, easy to use with more than 800 trading pairs for most popular cryptocurrencies today.

Besides, Binance's trading volume is always in the top 1 with a speed of 1.4 million orders/s and you can buy coins and tokens at any time with low transaction fees from only 0.1% and 0.075% when trading with the exchange's own coin - Binance Coin (BNB)

Home:Binance.com

Top 2: Kucoin

Launched in 2017, up to now, Kucoin has grown strongly and risen to the top 5 leading electronic exchanges according to CoinMarketCap.

With over 20 million registered users worldwide, Kucoin is popular and one of the most user-friendly exchanges, with low trading fees on many altcoins and allowing members to buy crypto with fiat. Kucoin also develops a professional, enthusiastic support team through many channels and platforms such as Facebook, Email, Phone Number or 24/7 Live chat.

Top 3: Remitano

With a global scale of operations and headquarters in 59 countries, the number of Remitano users in Vietnam once accounted for about 80% of total visits (2022 data from SimilarWeb). This is a cryptocurrency exchange that attracts more than 1.8 million visitors per month, large trading volume with relatively stable liquidity. Remitano supports multiple languages, including Vietnamese, and has a customer care system that is always available 24/7 to bring you the best experience.

However, transaction costs at Remitano are considered relatively high, at 1%, and new members need a relatively long verification time when registering and completing the initial verification steps.

Top 4: Gate

As one of the leading exchanges in the country of a billion people, Gate is present in more than 130 countries including Vietnam. Gate exchange is built on the latest technology platform, high liquidity and provides a variety of trading pairs of popular currencies such as Bitcoin, Litecoin, Dogecoin, Ethereum..

However, Gate's interface is considered relatively complicated and difficult to use for beginners. It will take you a while to get used to Gate, but once you get used to it, it will be difficult for you to ignore this exchange.

Top 5: OKX

With more than 20 million users worldwide, OKX also attracts a large number of Vietnamese users. One of the attractions of OKX is the leveraged trading feature, which gives users the opportunity to double or triple their profits in a short time. The OKEx exchange also provides and supports a variety of trading pairs and is considered one of the exchanges with the highest reputation and trust index today.

Although built on the latest technology platform, there are many functions in the OKX interface that require time to explore and understand. Once you can "master" the OKX interface, you will easily analyze and perform your investment tasks.

Home: OKX.com

Top 6: Bybit

The remarkable development and improvement of a chain of exchanges must include the leading Bybit. It can be said that this is the exchange with the fastest adaptation and adjustment progress.

Up to now, Bybit's speed and ability to process trading orders have been relatively high, with low fees of 0.075% for takers and 0.025% for makers. As a decentralized exchange, Bybit does not require users to verify their identity when participating in transactions, helping to ensure high information security while providing many new types of transactions such as swaps, futures or margin.

With a small number of users, Bybit currently only supports trading in some popular coins such as ETH, BTC or XRP. Bybit also does not have an OTC trading form and does not have its own Coin.

Home: Bybit.com

Top 7: CoinEx

Born with the mission of "Making the world a better place through Blockchain", CoinEX has gradually affirmed its position in the crypto market. CoinEx allows users to perform margin trading and supports many different currencies, giving users a variety of choices for their needs.

However, CoinEx currently only supports two main languages, English and Chinese, and maker trading fees are slightly higher than other exchanges, from 0.04 to 0.16%.

Top 8: Coinbase

Coinbase is a BTC exchange and also the world's leading Bitcoin wallet with over 11 years of experience. Up to now, Coinbase has undergone many improvements and integrated many features as well as improved transaction speed, order processing speed and liquidity for users.

Conclude

The article has provided information about crypto and crypto exchanges. Hopefully with the knowledge I have shared, you will have great understanding and experience with crypto and crypto exchanges.

Register crypto trading here and receive 300 USD immediately

Wish you successful investment!