Are Centralized Exchanges the CHOICE For YOU? (Let's Find Out!)

In the world of crypto, a centralized exchange is where your funds typically meet normal traditional world currencies - like U. S. Dollar, or the British Pound! And in the vast quantity of crypto exchanges in this world, it would be hard to pick one. However, in this post, we are going to help YOU to select a crypto exchange (a centralized one) that fits YOUR needs.

But first of all, why centralized exchanges?

What are centralized exchanges?

A centralized exchange is basically a middleman for cryptocurrency trading. The company behind the exchange:

1. Holds Your Funds: Your crypto and fiat are stored in the exchange’s wallet, meaning you don’t control the private keys directly. (More on this could be found on the internet, and more on security later)

2. Matches Buyers and Sellers: Using an order book, the exchange pairs people who want to buy with those who want to sell. (this is basically what an exchange at the core does.)

3. Regulates Transactions: They ensure trades follow rules and comply with regulations, including KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. (we'll tell you if this is a pro or a con later on)

Now that we at least know what this CEX means, let's compare some main differences of both

The Difference Between CEX and DEX (Decentralized Exchange)...

• 1. CEX is centralized; DEX is decentralized.

Think of it like this: A CEX is like a bank—you go there to deposit and trade money. A DEX is more like swapping directly with a friend—you handle your own stuff.

• CEX holds your funds; DEX lets you keep your own crypto.

With a CEX, you’re trusting the platform to hold your money safely. With a DEX, you’re in control—like keeping cash in your pocket instead of giving it to someone else.

• CEX is easier to use; DEX can be trickier.

Practical sense: CEX is like using an app with buttons and charts ready for you. DEX is like building your own trading setup—you need to know a bit more.

• CEX usually has higher liquidity; DEX may have lower liquidity.

Imagine this: On a CEX, you can sell a big bag of crypto quickly because lots of people are trading. On a DEX, you might have to wait or sell slowly, because fewer people are around.

• CEX requires ID (KYC); DEX often does not.

Simply put: On a CEX, you have to show ID—like opening a bank account. On a DEX, you can trade mostly anonymously—like paying cash to a friend.

Now that you have a better idea about where centralized exchanges and decentralized exchanges differ, let's go and look for some popular, centralized exchanges that are reasoned to be "good" and "the best" in the exchange world. (UNBIASED!)

Popular Exchanges That Are Used In The Crypto Space

Here are some centralized exchanges that are considered usable, and safe.

1. Binance

Binance is the exchange with the largest volume in the crypto space. Built back in 2017, it quickly climbed the ranks to become the “giant” of centralized exchanges. Why? Because it offered something most people wanted: lots of coins, cheap trading, and tools for both beginners and pros.

When you step into Binance, you’ll notice it’s like a giant shopping mall for crypto—there’s almost everything under one roof. From Bitcoin and Ethereum to the latest tokens you’ve barely heard of, chances are you’ll find them here. And with millions of users trading every day, you don’t have to wait long to buy or sell.

Binance is best known for three main things:

1. Huge Selection of Coins – You can trade hundreds of cryptocurrencies, from the most popular to niche projects.

2. Low Fees – Spot trading fees are some of the lowest in the industry, and you can cut them down even more if you use Binance’s own token, BNB, to pay fees.

3. Advanced but Accessible Tools – Whether you just want to buy and hold, or dive into futures, margin trading, staking, or launchpads for new coins, Binance has it all under one roof.

2. Coinbase

If Binance feels like a giant bustling mall, then Coinbase is more like a clean, friendly bank branch where everything is laid out for you. Founded in the U.S. way back in 2012, Coinbase is one of the oldest and most trusted names in crypto. It’s heavily regulated, especially in the U.S. and Europe, which makes it a go-to choice for people who care about compliance and security.

Coinbase is especially popular with beginners. Why? Because the app is super simple. You don’t need to be a trading wizard to figure it out. You can link your bank, buy some Bitcoin or Ethereum, and boom—you’re in the game. Of course, this simplicity comes at a price (literally—the fees are higher than many other exchanges).

Coinbase is best known for:

1. Beginner-Friendly Interface – Everything is easy to use, perfect for first-time crypto buyers.

2. Regulation & Security – A U.S.-listed company, Coinbase has strong compliance standards and a reputation for safety.

3. Fiat On-Ramps – Probably the easiest exchange to turn your dollars, pounds, or euros into crypto.

3. Bybit

Bybit is like the playground for traders who love excitement. It started in 2018 with a focus on derivatives and leverage trading—meaning if you want to trade futures or amplify your positions with leverage, this is one of the most popular spots. It’s not exactly the “beginner’s best friend,” but for those who like fast-paced markets, Bybit delivers.

Bybit has also grown beyond just futures. Now, it offers spot trading, staking, and even a launchpad for new projects. Still, it’s most famous for being a place where traders can go big with leverage—sometimes too big if you’re not careful. (don't worry - leverage is also available in other exchanges too!)

Bybit is best known for:

1. Derivatives & Futures Trading – A hub for people who want advanced trading and leverage.

2. Smooth Interface – Its platform is fast, responsive, and easy on the eyes compared to some rivals.

3. Extra Features – Copy trading, promotions, and competitions for active traders.

4. OKX

OKX is like the all-in-one super app of the crypto world. Founded in 2017, it’s one of the biggest exchanges by trading volume and is especially strong in Asia. Beyond just being an exchange, OKX is building what it calls a Web3 ecosystem—so you can trade, stake, lend, borrow, and even connect to decentralized apps, all from the same platform.

It’s kind of like Binance in the sense that it’s loaded with features, but it tries to stand out with a stronger Web3 push and integrations with DeFi. Still, keep in mind it has had regulatory hiccups in some regions, so availability might depend on where you live.

OKX is best known for:

1. Full Suite of Features – From spot and futures trading to NFTs, staking, and lending.

2. Web3 Wallet – A built-in crypto wallet that connects users to DeFi apps.

3. Liquidity & Tools – Strong liquidity and advanced charts for serious traders.

5. BingX

BingX is like the social network of crypto exchanges. Instead of just giving you a trading screen, it lets you follow and copy other traders—almost like watching a pro gamer stream and then pressing “copy” to play the same moves. Founded in 2018, BingX has been growing fast, especially among users who like community-driven trading.

While it offers the usual stuff—spot trading, futures, staking, and more—its biggest claim to fame is copy trading. If you’re new, this means you can pick a trader you admire and automatically mirror their trades. Of course, this can go both ways (profits or losses), but for many beginners, it’s a fun way to learn while being part of a bigger community.

BingX is best known for:

1. Copy Trading & Social Features – Follow skilled traders, copy their strategies, and learn by doing.

2. User-Friendly Interface – Clean, simple, and accessible even if you’re new to crypto.

3. Balanced Features – Offers spot, futures, staking, and trading bots, without overwhelming users.

Conclusion - Which exchange should YOU Pick?

I am not going sugercoat this and say that "if you are a beginner, then go for this" because from my experience, although a bit too complex, Binance is a strong pick! (and no, I am not sponsored.)

If you are a U.S. citizen, I strongly recommend you to checkout Coinbase as well, because it's popular in USA.

If you don't like Binance, OKX might also be a good start! OKX also goes head-to-head with Binance, and pretty similar with feature sets as well!

I hope that this post helped you, and if it did, please follow me! Always, remember to steward the capital you invest - crypto is risky! (god bless!)