When it comes to trading, traders choose the type of crypto exchange that they can trust. Some prefer centralized exchanges, because of their underlying benefits and wider functions.
Notably, centralized exchanges (CEX) are usually governed by intermediaries like companies, to act as middlemen to conduct the transactions on the exchange. Moreover, these platforms often act like traditional brokerages or stock markets.
In addition, centralized exchanges are reputable for representing a fiat gateway to traders—enabling them to make transactions with fiat (traditional) money.
With that said, if you are new in the crypto space and would like to use a centralized exchange when trading, how would you know if a certain CEX is good for you?
Here are the top qualities of a good centralized exchange:
1. Good User Experience
A good centralized exchange offers a good user experience and intuitive interfaces. It provides easy and seamless mechanisms that enable new and advanced traders to navigate through the platform effortlessly.
2. More Payment Options
A good centralized exchange gives more payment options to users. CEXs allows you to not only deposit crypto funds but deposit fiat money as well on the platform using your Debit card, Credit card, or bank account.
3. Better Liquidity
A good centralized exchange gives better liquidity to traders. Because most people are currently on centralized exchanges, more actors are ready to take part in buying and selling assets. Simply put, there are more sellers and buyers in a CEX, enabling higher liquidity for all traders.
4. Better Security via Regulations
A good centralized exchange gives security through legality and regulations. Since a centralized exchange follows governmental rules and regulations, this somehow makes traders feel more secure and safe when trading.
5. Better Customer Support
While decentralized exchanges also offer good customer support, centralized exchanges, on the other hand, give easy-to-use, multi-lingual, and official customer support staff.
Ultimately, choosing a crypto exchange that suits your needs requires a thorough decision. You have to do your own research and conduct an intricate study before trusting an exchange.
Suffice it to say, there are benefits and sometimes downsides to centralized exchanges. For this reason, it is best to make sure that you trust only the best.
Disclaimer: This article solely expresses the author’s thoughts, which may not reflect those of Enifex. Nothing in this article should be interpreted as investment guidance. Enifex encourages all clients to do their own research before investing in cryptocurrencies.