Centralized Crypto Exchange Information / Guides / Pricing / Comparisons
WHAT IS A CENTRALIZED CRYPTO EXCHANGE
A centralized crypto exchange is a platform where you can buy or sell digital assets. Here, you have to trust a third party to monitor the transaction and secure the assets on behalf of the buyer and the seller. Their deals aren’t tracked on the block chain. Such exchanges require you to submit your personal information for verification.
Centralized exchanges offer beginner investors a familiar, friendly way of trading and investing in cryptocurrencies. As opposed to using crypto wallets and peer-to-peer transactions, which can be complex, users of centralized exchanges can log into their accounts, view their account balances, and make transactions through applications and websites.
Centralized exchanges offer an extra layer of security and reliability when it comes to transactions and trading. By facilitating the transaction through a developed, centralized platform, centralized exchanges offer higher levels of comfort.
Centralized cryptocurrency exchanges have more liquidity because multiple users make particular orders according to market trends. So if an asset is in demand, various users will purchase or sell it accordingly. Moreover, it has market makers who add further liquidity to the platform.
Fast transaction speeds on centralized exchanges contribute to better user experiences as well as enable complex trade types
Centralized exchanges still account for the vast majority of trading volume
Unlike peer-to-peer transactions, centralized exchanges often charge high transaction fees for their services and convenience, which can be especially high when trading in large amounts.
Centralized exchanges are operated by companies that are responsible for the holdings of their customers. Large exchanges usually hold billions of dollars worth of Bitcoin, making them a target for hackers and theft.
Centralized exchanges are licensed by the government. As a result, they have to follow strict government norms. The know your customer (KYC) norms at some of these exchanges are equivalent to those of big banks. Centralized exchanges deal with a wide variety of regional and federal government agencies. The data at these exchanges may also be accessed by these agencies. These strict regulations are a deal-breaker for many investors who prefer privacy.
Investors on centralized exchanges end up trading variety for safety. In most centralized exchanges, only 40 to 50 types of cryptocurrencies are available for trading. This is a small fraction of the total number of cryptocurrencies in the crypto universe
RISK OF BANKRUPTCY
The centralized exchanges are also private corporations. Hence the money which is in their custody is in effect a loan which an investor has given to them. Wherever there is a loan, there is always a chance of default. Up until now, there has not been any news of the bankruptcy of any exchange. However, there is always a possibility that this might happen in the future.
Advantages of Centralized Exchanges
Disadvantages of Centralized Exchanges
Comparisons of Canadian Centralized Exchanges
|CANADIAN CEX||FOUNDED||BREACH / HACK||COLD STORAGE||FINTRAC REG.||2FA||WITHDRAWAL||ACCOUNT|
|BITBUY||2016||NO||95% POLICY||YES||YES||YES||OPEN ACCOUNT|
|CRYPTO.COM||2016||NO||100% VIA LEDGER VAULT||YES||YES||YES||OPEN ACCOUNT|
|COINBERRY||2017||ALLEGEDLY (2020)||YES VIA GEMINI||YES||YES||YES||OPEN ACCOUNT|
|KRAKEN||2011||NO||95% POLICY||YES||YES||YES||OPEN ACCOUNT|
|VIRGOCX||2018||NO||95% VIA LEDGER VAULT||YES||YES||YES||OPEN ACCOUNT|
|WEALTH SIMPLE||2014||NO||YES VIA GEMINI||YES||YES||YES||OPEN ACCOUNT|
|CANADIAN CEX||E-TRANSFER||WIRE TRANSFER||CONNECTED BANK ACCOUNT||DEBIT / CREDIT||OTHER||ACCOUNT|
|BITBUY||1.5% FEE||.5% FEE||NO||NO||-||OPEN ACCOUNT|
|COINBASE||NO||NO||NO||MIN 3.99% FEE||PAYPAL WITHDRAWAL||OPEN ACCOUNT|
|CRYPTO.COM||FREE||FREE||NO||MIN 3.5% FEE||-||OPEN ACCOUNT|
|GEMINI||FREE||FREE||FREE||3.49% FEE||-||OPEN ACCOUNT|
|KRAKEN||NO||$11.50 FEE||NO||NO||CANADA POST (IN PERSON)||OPEN ACCOUNT|
|NETCOINS||FREE||FREE||NO||5% + FEES||ONLINE BILL PAYMENT||OPEN ACCOUNT|
|VIRGOCX||FREE DEPOSIT||FREE DEPOSIT||NO||NO||-||OPEN ACCOUNT|
|WEALTH SIMPLE||NO||NO||FREE||NO||-||OPEN ACCOUNT|
|CANADIAN CEX||COINS||MOBILE APP||WEB APP||LIMIT ORDERS||RECURRING ORDERS||STAKING||FUTURES||ACCOUNT|
|WEALTH SIMPLE||30+||YES||YES||YES||NO||NO||NO||OPEN ACCOUNT|
|CANADIAN CEX||BEST ALL IN PRICE||STANDARD TRADING FEE||CAD DEPOSIT FEE||ACCOUNT|
|BITBUY||2.29%||0.1% / 0.2%||1.50%||OPEN ACCOUNT|
|GEMINI||0.5% - 3.99%||FREE||FREE||OPEN ACCOUNT|
|KRAKEN||0.80% + $1.25||0.16% / 0.26%||$1.25 + 0.25%||OPEN ACCOUNT|
|WEALTH SIMPLE||3.48%||1.48%||FREE||OPEN ACCOUNT|