5 Cryptocurrency Exchanges to Trade Crypto in 2021
Trading cryptocurrency can be profitable and fun if done correctly. Today, traders have more options, exchanges, and features than in the past. All of these choices can leave new investors a bit confused about where to start their crypto adventure.
If you are familiar with crypto trading, you probably have used some of the more extensive exchanges in the market, such as Binance and Coinbase. While these exchanges are valuable because they provide a reputable and reliable trading experience, they are also a bit more expensive and restrictive than newer exchanges that can operate more freely in the market. Here are five exchanges to try out in 2021.
Uniswap is one of the hottest exchanges in the market. Unlike Coinbase, Uniswap is a DEX (decentralized exchange). As such, it doesn’t hold any of your cryptocurrency directly. Instead, the platform utilizes smart contracts to conduct trades in a non-custodial manner. The main advantage of this approach is that your crypto is safer from hackers.
Currently, Uniswap is the top DEX in terms of market cap. Users can effortlessly swap any two Ethereum assets against an underlying liquidity pool. Uniswap’s rise to fame is partly due to its open token features. Specifically, anyone can create or seed a market by supplying the pool with an equal value of the two ERC-20 tokens being paired. Liquidity providers earn a pro-rata portion of the 0.3% trading fees each time the trading pair is used.
Uniswap introduces a simple one-click interface that makes trading simplistic. However, some have complained that this interface is too basic as it lacks features like limit orders. Despite these concerns, Uniswap is still the premier DEX in the market. Recently, the platform added support for Yield Farming liquidity pools under the Uniswap Money Market feature.
Cameron and Tyler Winklevoss founded the Gemini exchange. Keenly, they are best known as the Winklevoss twins. These two Bitcoinists have long supported cryptocurrency adoption through various measures. Their exchange is well-known as one of the most secure options in the market.
Gemini is a regulated exchange that offers fiat-to-crypto trading pairs. As such, it serves a critical role in the US market. Gemini also has an excellent security record. The platform keeps all BTC and ETH in cold storage. Additionally, all fiat deposits are stored in FDIC accounts with reputable banks.
Users have a variety of coins and ways to fund their accounts. Gemini supports debit and credit card purchases. For example, you can use a bank transfer for large deposits. Large crypto purchasers enjoy added discounts for using the network. In this way, Gemini is a wise choice for whale investors seeking some additional profits.
IDEX is one of the oldest DEXs in this market. Interestingly, this non-custodial exchange started as part of the Aurora project. Aurora collects powerful Ethereum applications and protocols that make up a decentralized banking and finance ecosystem. Specifically, this project includes the IDEX exchange, the Boreal stable currency, the Snowglobe decentralized exchange protocol, and Decentralized Capital.
IDEX offers real-time trading at competitive rates. The platform boasts a high transaction throughput and decent liquidity for a DEX. Unlike the competition, IDEX offers more trading functionalities. In this way, the platform can be seen as a hybrid exchange that leverages the best aspects from centralized and DEXs to provide a unique UX.
IDEX is built atop the Ethereum ecosystem. The exchange supports all ERC-20 tokens. Notably, there are over 200,000 of these tokens in use today, and the number keeps growing. Consequently, IDEX provides an alternative to Uniswap. Users who seek more trading functionality often venture from Uniswap over to this platform.
Dydx is another hybrid exchange that combines DeFi (decentralized finance) with DEX technology. This exchange allows you to earn rewards staking assets. Interestingly, all the capital supplied by users to dYdX collects interest. You can earn a passive income as your supported assets stay idle on the exchange.
Dydx users also gain the ability to long or short Ethereum. Shorting cryptocurrency is an advanced strategy that professionals often seek out. When you short crypto, you bet against its value. Specifically, you take out a short term loan of the asset and then sell it. When the token price drops, you rebuy it and repay the loan, keeping the interest as your ROI.
DYdX users enjoy permissionless margin lending and leveraged trading up to 5x using this network. For these reasons, dydx provides a valuable service to professional traders looking to short Ethereum. The platform also supports seamless conversions between supported stakable assets such as Dai, USDC, and ETH.
The NAGA Trader exchange represents a shift from traditional trading platforms over to blockchain assets. NAGA gained notoriety in the market as a stock trading platform. Recently, the exchange included cryptocurrency trading into its features.
NAGA simplifies trading through its toolset. As a primarily stock-based platform, the network includes a plethora of valuable tracking tools. Users can track all of their digital assets from the network’s interface. From here, you can trade various crypto trading pairs. Additionally, this network has a strong user base that adds to the liquidity enjoyed by traders. The added liquidity makes this exchange ideal for large value traders.
You can sell and buy your digital assets in seconds using NAGA trader. Best of all, the platform utilizes advanced AI algorithms to improve your ROI. The CYBO robot makes it easy for anyone to implement a trading strategy in an automated environment. Lastly, NAGA supports copy-trading strategies, as well.
5 Cryptocurrency Exchanges to Try Out in 2021
There’s no need to be timid in 2021. The crypto market is over a decade old, and there are endless opportunities to earn in the market. No one can argue the value of major exchanges like Coinbase. However, once you are a bit more comfortable in the market, it pays to venture out of the nest and try new platforms. These five exchanges are sure to provide you with a streamlined trading experience to further your crypto investment strategy.