The rise in popularity of cryptocurrencies has prompted investors to rush to get in on the action. In recent years, trading activity in these marketplaces has expanded dramatically. When traders first begin investing in cryptocurrency, they must choose between centralized and decentralized exchanges. Since the launch of Bitcoin in 2009, centralized cryptocurrency exchanges have gone a long way. They have played a critical role in the acceptance of cryptocurrency by governments, corporations, and organizations all around the world, and they continue to do so. Before you invest in CEXs, you should know which ones are the best in terms of market capitalization.
What are CEXs?
Centralized exchanges are platforms that allow users to buy and sell cryptocurrency for fiat currencies such as the US dollar or digital assets like BTC and ETH. They act as trustworthy brokers in deals and frequently serve as custodians, storing and safeguarding your cash. Leading exchanges make every aspect of the digital asset trading experience easier, from security to fair market pricing, regulatory compliance, consumer protection, and access to a wide range of digital assets.
BNB (BNB)
Binance Coin (BNB) is a cryptocurrency that is used on the Binance cryptocurrency exchange to trade and pay fees. It was first released as an ERC-20 token; however, it will soon be transferred to Binance’s main chain. As an incentive, users enjoy a reduction in transaction fees.
It can also be exchanged or traded for other cryptocurrencies. On some websites, it can be used to book hotels and flights. It can also be used to invest in stocks, ETFs, and other assets on a variety of platforms. BNB is used for a variety of things in the entertainment industry, from paying for virtual gifts to purchasing lottery tickets.
Crypto.com Coin (CRO)
CRO is the native token of the Crypto.com Chain. The Crypto.com Chain was established to create a network of cryptocurrency projects and to let retailers accept cryptocurrency as a means of payment. It is also a high-performance native blockchain system that will make transaction flows between cryptocurrency users and merchants who accept cryptocurrency smooth, cost-effective, and secure.
Customers can utilize the Crypto.com Wallet app to finish checkout and pay for products and services with cryptocurrencies using Crypto.com Pay Checkout and/or Invoice. Businesses receive all their payments instantly in CRO, stable coins, or in fiat.
FTX Token (FTT)
FTT is a token used on FTX. By 2021, the platform had over a million registered users and a daily trading volume of billions of dollars. It allows users to trade cutting-edge derivatives, many of which are likely to set precedents for the future of cryptocurrency trading.
More than 80 cryptocurrencies are supported by FTX futures contracts. Traders can also invest in perpetual futures through this platform. Traders can bet on real-world events, for example, US elections, on the FTX marketplace.
UNUS SED LEO (LEO)
It is the next cryptocurrency initiative of iFinex, the parent company of the Bitfinex cryptocurrency exchange. It was launched through an initial exchange offering (IEO) in May 2019.
It was built primarily to help users of the iFinex ecosystem. LEO offers a variety of discounts on the Bitfinex trading platform and other iFinex goods to all holders. Discounts include taker fee reductions, lending fee reductions, and withdrawal and deposit discounts. It is also possible to burn LEO tokens, which are used to pay commissions.
KuCoin Token (KCS)
KCS is KuCoin’s underlying fuel and general token. It has several uses. KCS Bonus is regarded as one of the most effective methods for generating passive income. Users with more than 6 KCS can get a daily dividend, which is derived from half of KuCoin’s daily trading fee earnings.
It can also be used to pay for trading costs on the KuCoin Exchange as a utility token, allowing users to save up to 80%. KCS can also be used to participate in the KuCoin Spotlight token sale, as well as LockDrop/BurningDrop on the Pool-X platform.
Huobi Token (HT)
Huobi can develop a customizable marketing strategy to attract new users and grow its platform by having its own token (HT). One of the token’s primary functions is to lower exchange commissions, which are often deducted from users’ wallets.
Users can purchase monthly VIP status plans through HT to obtain transaction cost savings. Token holders have a say in exchange choices, are eligible for crypto awards for seasonal buybacks, and get first access to special events. Holders of the HT token can swap it for other cryptocurrencies at any time.
OKEx (OKB)
OKB is the OKEx utility token that allows customers to take advantage of the crypto exchange’s unique features. The token is used to compute and pay trading fees, to give users access to platform voting and governance, and offer rewards for holding OKB.
Users can also get up to a 40% discount on transactions when using OKB. There are two types of users: regular and VIP. Regular users receive a level based on their OKB stock, whereas VIP users receive a level based on their trading volume. The commissions are changed on a daily basis, and users receive a discount based on their level.
Woo network (Woo)
Kronos Research, a cryptocurrency trading organization, created WOO Network in 2019. It provides liquidity, trading execution, and yield generation to exchanges, traders, institutions, and decentralized finance platforms. Application programming interfaces (APIs) or the WOO X user interface are used to link clients to WOO’s centralized network.
The WOO token has a three-billion-coin maximum supply and uses a deflationary strategy in which the network buys and burns tokens on a monthly basis. Every month, half of Woo trade’s revenue is used to buy back tokens on the open market.
Summary
The most frequent way for investors to buy and sell cryptocurrencies is through centralized cryptocurrency exchanges. CEXs can be used to conduct trades from fiat to cryptocurrency (or vice versa). The top 8 CEXs according to market capitalization include BNB, Crypto.com, FTX Token, ONUS SED LEO, KuCoin Token, Huobi Token, OKEx, and Woo network.
