Crypto exchanges have a lot of benefits over other platforms, such as peer-to-peer trading platforms, DeFi exchanges, or on-ramp and off-ramp platforms. They are easy to use, charge low fees, support a wide range of cryptocurrencies, have high liquidity, and offer instant support and help.

Here are the top 10 benefits of using a crypto exchange over other platforms.

1. Little to Zero Transaction Charges

Most crypto exchanges charge little to nothing when you transact between two cryptocurrencies. For example, if you trade USDC for Shiba Inu on Binance, you are barely charged 1.5 cents for the exchange. These exchanges also offer the same charges irrespective of the crypto you are exchanging.

However, in other modes of buying crypto, such as P2P or even using swapping protocols, they can charge upto several dollars based on the gas prices.

2. Easy Access to Global Markets

Usually, cryptocurrency exchanges are available worldwide, which means that wherever you reside in the world, a global exchange can give you access to a wider market. This helps create a better price discovery for both buyers and sellers.

However, in local exchanges or those with limited reach, the prices of cryptocurrencies are much higher than those in global markets when buying and much lower than those in global markets when selling.

3. Availability of a Wide Range of Cryptocurrencies

Larger exchanges like Binance, KuCoin, Coinbase, and OKX offer thousands of cryptocurrencies and allow withdrawals over hundreds of blockchains. This is suitable for both high- and low-net-worth buyers. High-net-worth buyers can easily choose Ethereum for the highest grade of security, while low-net-worth buyers can choose a Layer 2 or a low-cost blockchain and save on gas fees.

For example, Binance has 500 cryptocurrencies and over 1500 trading pairs.

4. High Liquidity Available 24×7

Since crypto markets are always open, you could find a trading opportunity at any moment. Unlike traditional markets, you do not have to wait till the markets open in the morning.

Crypto exchanges with a large customer base can easily offer high liquidity so that you can instantly transact on the exchange and grab your trading opportunity in time. This is even true for less-known cryptocurrencies, like Jasmy Coin or Akash Network.

On the other hand, in P2P or DEXs, you hardly find any trading volume beyond the top 15 or 20 trading pairs. These platforms make you wait for a long time before your trade even gets executed. 

5. No Need For a Separate Derivatives Exchange

Most well-known crypto exchanges also offer Futures and Options trading, which can save you time compared to using a derivatives exchange like Derebit. 

In derivatives exchanges, you must first load crypto, pay transaction fees, and wait for your crypto to get unlocked before you can even place the first trade. Meanwhile, you could have lost the trading opportunity.

Further, in addition to the time factor, larger crypto exchanges also help you save a lot of money on transaction fees.

Another interesting benefit of using derivatives on a centralized exchange is the high leverage that you gain. High leverage lets you earn several times more than a normal buy/sell trade.

6. One-Stop Destination for DeFi

Though many of them are centralized, exchanges support all the DeFi functions, such as staking, lending, borrowing, and even yield farming, like DeFi protocols.

This is helpful, especially for beginners and low-volume traders, who cannot afford to pay high gas fees.

Though centralized exchanges provide a lower yield, they are much more secure than DeFi protocols, which constantly risk being drained.

7. Earn Features

Exchanges often offer several ways to earn rewards, such as programs like Learn and Earn, Tap to Earn, Play to Earn, Walk and Earn, and similar activities. They usually collaborate with other cryptocurrencies and new projects to provide a win-win situation for all. New projects gain traction, and the exchange gets new users, and these users, in turn, get to earn free crypto.

For example, before the crypto exchange Blum was launched, users could earn up to 10,000 Blum Tokens by doing these small activities for free.

Some other exchanges that offer such passive income schemes are Binance and Kraken.

8. Access to Expensive Trading Tools

Without the use of trading tools, crypto trading is very similar to gambling. Trading tools offer critical insights on the current state and the future of the crypto.

Most exchanges these days give their users access to high-end trading tools for free, which is otherwise very costly. Tools like Moving Averages crossover, Elliott Waves, Ichimoku Cloud, etc. Subscriptions to such tools otherwise cost hundreds of dollars.

Further, users can also save their preferred indicator setup so that they can use it again and again with little to no modification.

9. Highly Secure 

Crypto exchanges enjoy the highest grade of security. Most of the crypto balances that exchanges have are often stored in deep, cold storage that is beyond the reach of any hacker. 

This is the opposite of DEXs and other protocols, which are usually at a high risk of being attacked.

Further, crypto exchanges also have a ton of blockchain experts and easy access to law enforcement agencies that can track and freeze stolen crypto.

10. Instant Availability of Services

Crypto exchanges operate 24×7, which helps you buy any crypto at any time. All of these happen at a very low cost, and you can easily take your crypto off the exchange in no time.

Further, exchanges support a wide range of withdrawals and are compatible with most commonly used blockchains.

Also, at any point in time, if you need any assistance, these exchanges are ready to help 24×7 through chat, call, email, or their social media platforms.

Recommended reading : What is a Crypto Wallet

 

 Disclaimer:
Crypto Land is an impartial marketing and educational platform, not a financial advice service. Therefore any content provided, hosted, or expressed by Crypto Land does not constitute financial advice or recommendation, and as such Crypto Land will not be liable for any losses incurred during trading or investing.