10 Popular Cryptocurrency Exchanges: Review of Cryptocurrency Exchanges, Pros and Cons

As can be seen from the table above, decentralized exchanges differ in the type of trading.

There are Swap and Orderbook types of exchanges:

• DEX exchanges like Swap. Trading occurs by instantly exchanging one cryptocurrency for another using an exchange protocol based on smart contracts;
• DEX exchange with Orderbook type. Trading is carried out through a list of orders for the purchase and sale of any asset that is sold on the exchange, which is close to the usual trading on a centralized exchange.

Dydx is positioned as a decentralized exchange. However, this is not an entirely true statement. According to the terms of use posted on the official website, access to this exchange is limited to some users. Restrictions apply to residents of certain regions, including Crimea, Lugansk and Donetsk People’s Republics, as well as citizens of certain countries, such as Iran and Cuba.

How to buy cryptocurrency on the exchange

Cryptocurrency exchanges offer their clients many options for purchasing cryptocurrency and funding their accounts. To buy cryptocurrency on a crypto exchange, follow these steps:

1. Register on the exchange. Go through the registration process on the selected exchange. This typically involves creating an account, verifying your identity, and setting up additional security measures such as two-factor authentication (2FA).
2. Top up your account. After registration, you will need to fund your account on the exchange. You can top it up with fiat currency and then buy cryptocurrency from it, or buy cryptocurrency immediately on the P2P exchange market.

Usually the following methods of replenishing your account are presented on the cryptocurrency exchange:

• Bank transfer;
• Credit/debit cards;
• Electronic payment systems;
• By transferring cryptocurrency from another wallet/exchange.

How to buy cryptocurrency for rubles in Russia

In Russia, starting from 2022, it has become a little more difficult to buy cryptocurrency on the exchange with a bank card, due to the introduction of restrictive sanctions and restrictions on the use of bank cards. Until 2022, it was possible to top up your account on the exchange with fiat currency from a bank card of almost any bank.

Under the conditions of sanctions, you can still buy cryptocurrency in Russia for rubles from a bank card on the P2P market of the exchange.

What is P2P trading

P2P (Peer-to-Peer) – trade transactions directly between exchange users, bypassing intermediaries and with minimal commissions. In this case, the exchange acts only as a platform that blocks the user’s funds to guarantee their availability, after which the participants themselves complete the transactions.

Participants submit requests to buy or sell cryptocurrency with the parameters they set, such as price, currency and payment methods. On the exchanges ByBit, Bitget, KuCoin, Mexc, HTX and others, most Russian banks are available.

How to buy crypto via p2p

Through p2p trading on the exchange using a card from Russian banks, buy major cryptocurrencies, such as: Bitcoin (BTC), Ether (ETH), Tether (USDT), USDC.

Let’s take a closer look at how to do this:

1. Go to the P2P section of the exchange. In the p2p section, select which digital tokens you want to buy: USDT, BTC, ETH.
   

   USDT (Tether) is a so-called stablecoin, a stable cryptocurrency that is pegged to the value of one US dollar (USD) and is close to its value. This coin is used on most crypto exchanges for trading in pairs with other coins.

   
   
   
   
2. Indicate the purchase amount. Indicate the desired amount in rubles that you want to spend on the purchase.
   
   
   
3. Select a payment method. Most often, the largest banks of the Russian Federation (Tinkoff, Sberbank) and transfers such as SBP and Qiwi are available.
4. Make a transfer to the seller. Go to the sales page and use the details specified by the seller to make a transfer from your card. Pay attention to the seller’s comments, usually the seller indicates where it is better and how to transfer money.
   
   
   
   
5. Confirm the transfer. After the transfer is completed, on the sales page, click the button – “Payment completed.”
6. Get cryptocurrency. After confirming the transfer, the paid cryptocurrency will be added to your account. Usually this procedure takes no more than 5-10 minutes.

Before making a transaction, we recommend checking the percentage of successfully completed transactions by the seller.

Types of trading on the cryptocurrency exchange

Trading on a cryptocurrency exchange can be profitable, but it also involves high risks due to the high volatility of the crypto market. Here are some basic simple tips:

1. Never invest more than you are willing to lose.
2. Decide what your trading strategy will be – long-term investment (hold) or short-term trading (day trading).
3. When placing orders or entering trades from the market, set stop-limit orders to minimize losses in the event of adverse market movements.

We will describe more detailed trading tips and strategies in our other articles on trading and technical topics. analysis.

Most crypto exchanges have several types of trading. Next we will look at the main ones.

Spot trading

This tool gives you a wide selection of trading pairs to buy or sell. For example, an investor or trader can choose pairs between fiat money and cryptocurrency or between different cryptocurrencies.

In the trading section (trading terminal) of the exchange you will see a graph of the price movement of the selected pair with technical instruments, an order book, transaction history and an area for making transactions and placing orders.

A stop limit order is also available in spot trading. When using this order type, you place a request to buy or sell cryptocurrency. Once the token price reaches the level you set, the order is automatically activated and the trade is executed.

1. Limit. In limit orders, you select the price at which you want to buy/sell the asset and the quantity, after which the order is immediately placed. Next, you wait for it to be executed until the price reaches your order. This gives you the role of “maker” because your order goes into the order book and creates additional liquidity.
2. Market. This is a transaction at the market price (that is, at the price of the last transaction). Specify only the transaction volume and click buy or sell. In this case, you become a “taker”. In this case, the order does not fall into the order book, but is executed immediately. Usually the commission for takers is higher than for makers.
   
   
   
   
3. Stop limit. You set the desired price, upon reaching which your order will be added to the order book. We can say that this is a “pending” limit order.
   
   
   
   
4. Market transactions. This area shows the history of the last completed transactions.
5. Dom of sell orders. In this zone you can see placed sell orders, their price and volume.
6. Buy order book. In this zone you can see placed buy orders, their price and volume.
7. Current asset price (price of the last completed transaction).

Margin trading

The principle of margin trading is similar to spot trading, with some differences. In the case of margin trading, you use leverage (borrowed funds from the exchange).

Margin trading allows you to make higher profits because you can open a trade for a larger volume than your funds allow. The exchange can provide leverage, increasing the amount available for trading by 5 or 10 times.

However, it should be noted that this is a riskier type of trading, since if the price moves unfavorably, you can lose your funds much faster. It is suitable for experienced traders who are able to analyze the market and predict asset price changes.

Futures trading

Trading cryptocurrency futures (derivatives) provides users with the opportunity to operate contracts on the price of an asset. For example, when buying a BTC futures, you are buying a contract, but you will not physically own Bitcoin. When trading futures, traders have access to large leverage, which allows them to make maximum profits, but the risks also become as high as possible.

Futures trading requires good trading skills to successfully work with this instrument.

Trading bots

Some exchanges provide the ability to use trading bots. For example, there are several bot options available on the Binance and KuCoin platforms. Bots are programs for trading automation. They automatically execute trades depending on the selected parameters. In the catalog of bots you can see their effectiveness and duration of work.

For example, the Spot Grid bot specializes in spot trading. It automatically buys assets at a lower price and sells them at a higher price. The Futures Grid bot also profits from price differences, but also has the ability to take both long and short positions on futures contracts.

Copy trading

Copy trading is an investment strategy in the cryptocurrency market, in which one investor automatically repeats the trading operations of another experienced trader, based on specified settings and parameters. This type of trading is available on the Mexc exchange. The trader who conducts transactions receives a specified reward for completed transactions.

Options

Options provide the user with the right to buy or sell an underlying cryptocurrency asset at a specific date and time at a predetermined price. By paying only the required option premium, you gain equivalent market access as if you had a futures or spot position.

With lower initial investment requirements and known losses limited by the option premium, options provide a good alternative to conventional trading. Options are available on the Binance exchange.

Passive income on the exchange

Here we will tell you how to receive passive income on the stock exchange and earn cryptocurrency for a beginner. Recently, cryptocurrency exchanges have been introducing tools for passive investing and offering various opportunities for earning cryptocurrencies. Typically, such tools are found on the crypto exchange in the Earn section.

Below we list the main opportunities for earning cryptocurrencies on a centralized exchange:

Staking

Staking is one of the easiest ways to generate passive income on cryptocurrency. The process is similar to mining, but does not require specialized equipment, since everything happens at the software level.

How does it work?

During the staking process, the assets in your wallet are locked and begin to participate in blockchain operations. Users are rewarded for storing their coins. The level of profitability depends on the type of cryptocurrency and the term of participation.

Mining

This is a process during which powerful computer equipment (video cards or processors, depending on the cryptocurrency being mined) solve complex mathematical problems, thereby maintaining the functionality of the blockchain network. For solving these problems, miners receive a reward in the form of cryptocurrency. This process consumes a large amount of electricity.

Loans and deposits

The algorithm is similar to staking – your assets are blocked for a certain period, only in this case they are transferred to other users on credit automatically. You choose only a coin and the period for which you are willing to block them. This functionality on exchanges is usually called Crypto Loans.

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