Cryptocurrencies are funds that exist in the digital space and have no physical form. Most of them are decentralized and transparent. The main use case for cryptos is investment and trading, but they are also used for money transfers, online payments, rewards in blockchain games, etc.

Crypto investments are buying and selling cryptocurrency and taking benefits from price changes. The matter is that the crypto market is very unstable and sensitive to different external factors. Knowing these factors and the way the market works allows one to foresee the next price jump and make money on it. There are some methods in trading:

  1. buy and hold;
  2. swing;
  3. intraday;
  4. scalping;
  5. arbitrage.

Also, many financial tools help make income:

  • p2p;
  • spot markets;
  • margin;
  • derivatives;
  • etc.

To apply the strategies and tools, traders use crypto exchanges. A crypto exchange is a platform where you can find different trading instruments. Such platforms connect people who want to sell, buy, and exchange digital coins, provide the necessary tools and charge commissions for the service. 

Types of Crypto Exchanges

Depending on the platform, there may be a different set of financial instruments. Let’s see the main classification of crypto exchanges:

  • regulated cryptocurrency exchanges (centralized);
  • not regulated platforms (decentralized).

Regulated platforms are those having official registration and jurisdiction. They regularly undergo audits and check compliance with all the norms and requirements of KYC and AML. Regulated exchanges operate like banks – they have an official team providing quality services for clients, help when needed, and track transactions to prevent illegal actions.

Regulated platforms have the largest set of trading tools and allow fiat to crypto exchange, for they allow to attack bank cards and deposit/withdraw funds directly. 

Regulated crypto exchange list:

  • Binance
  • Coinbase
  • KuCoin
  • WhiteBIT.

Not-regulated exchanges are decentralized platforms with no official license for work and limit their functions by p2p exchanges between users. A platform itself does not take part in crypto transactions, only offering a space where traders do that. Decentralized services do not guarantee user safety and do not track transactions. Such services are primarily used for small crypto exchange transactions, while considerable sums are traded on regulated platforms. In addition, decentralized platforms do not provide for fiat to crypto exchange.