This year has been an exciting one for crypto traders. Every week new projects enter the market promising larger rewards with less risk than their predecessors. Today, there are more coins, tokens, and exchanges than ever. All of this selection can make finding the best projects seem like a daunting task to new users.
There are some things you can do to help ensure you avoid scam exchanges and low-quality platforms that put you at risk. First, you need to always DYOR (do your own research) before you invest in an exchange.
Reputable projects usually have a strong social media presence and their developers and staff are available to answer your investment questions.
The Different Exchanges in Use 2021
It’s also vital that you understand the difference between decentralized exchanges and centralized exchanges. Centralized exchanges such as Binance or Coinbase allow you to convert your fiat to-and-from cryptocurrency. These exchanges are regulated to provide this service. You will need to validate your identity before using a centralized exchange.
Reversely, decentralized exchanges (DEXs) don’t provide fiat exchange services. This strategy allows them to function with less regulatory oversight. There are also hybrid exchanges such as Catex that borrow different aspects from both types to provide investors with more flexibility.
The best investors understand how to use each type of exchange to further their investment strategy. They also understand what platforms deserve their attention. Here are 5 exchanges worth checking out in 2021.
OpenSea entered the market in November of 2017. Unlike regular exchanges, the platform functions as a peer-to-peer marketplace for rare digital items and crypto collectibles. Users can buy, sell, discover, and trade limited-edition goods using this unique exchange.
Crypto collectibles include an ever-growing number of digital assets. There are game collectibles, art, and even articles for virtual worlds. Users can set up their own marketplace to sell their goods. Collectibles such as CryptoKitties sell for thousands of dollars due to their blockchain verifiability.
Merchants gain access to powerful tracking tools when using OpenSea. These tools help them improve their close ratios and reach more interested collectors. Impressively, OpenSea is positioned perfectly when you consider that crypto-collectibles continue to gain in popularity with each new release.
Catex is a new exchange that blurs the lines between centralized and decentralized exchanges. The platform provides the security and features you expect from popular exchanges, along with some new functionalities that are sure to get investors excited.
Catex originated as a transaction mining based exchange but since has updated its services to meet the growing demand for high ROI/low-risk market opportunities. This desire has led the platform to introduce a DeFi twist. Users can stake the platform’s native token, CATT, and earn a passive income.
Additionally, the platform plans introduce another stakable token known as YCATT in the coming weeks. In total, Catex intends to distribute $600,000 worth of DeFi tokens to Catex Token (CATT) holders during the project’s launch. Best of all Investors can pre-stake YCATT starting on November 30th.
Curve is another specialty exchange that is pioneering a new approach to trading cryptocurrencies. This exchange liquidity pool was built on Ethereum and is designed for stablecoins exclusively. Developers introduce deep on-chain liquidity through the introduction of bonding curves.
Curve gained a reputation as a reliable DEX in a short period of time. The platform offers investors access to advanced tools and an intuitive interface that makes trading a snap. These tools include a liquidity amplification function. This feature allows a small pool to punch above its weight by offering 100–1000 times more liquidity depth.
Additionally, Curve provides investors some of the lowest slippage rates and trading fees for stablecoins and wrapped tokens in the market today. Slippage is a term that refers to the difference between the expected price of a trade and the price at which the trade executes. Tight slippage is preferred by investors.
The 1inch.exchange is what’s known as a DEX aggregator. DEX aggregators source liquidity from other liquidity providers or decentralized exchanges (DEXs). Specifically, 1inch.exchange sources liquidity from 0x Protocol, Uniswap, Bancor, Balancer, Kyber, Airswap, and more.
This interoperability magnifies user’s profits in an automated way. This automation allows users to process large transactions without worrying about finding the best conversion rate. The platform features an interactive portal that simplifies all your vital trading functions.
Additionally, 1inch.exchange is non-custodial. Non-custodial exchanges never hold your digital assets directly. Consequently, decentralized exchanges are less likely to get hacked because they don’t have wallets that hold user’s crypto. Instead, they facilitate peer-to-peer trades and make a small fee off each transaction.
Dydx provides investors with new features not found anywhere else in the market at this time. You can go long or short on Ether with up to 5x leverage. This is done in a permissionless fashion. Importantly, leveraged trading strategies give you access to more profits but also introduce more risk into the equation.
The developers behind dydx added various DeFi functionalities to improve user’s ROIs. For example, dYdx tokens collect interest. These tokens even earn interest when being used in an active trading position. Impressively, dydx also supports cross-margin lending and borrowing as part of its advanced functionality. These features allow you to earn a passive income lending out your crypto to other users.
Currently, dydx supports various popular tokens including Dai, USDC, and ETH. These features combined with the fact that it’s one only a few full-featured decentralized exchanges available make dydx a top choice for traders seeking a more in-depth experience.
Top 5 Different Exchanges Worth Checking Out in 2021
Each of these exchanges fills a much-needed niche in the market. Their unique strategies make these platforms worth another glimpse. You may find that these specialty exchanges better suit your needs than the overcrowded platforms most people use today. One thing is for sure, these exchanges offer new and exciting features that make them stand out amongst the competition.