The higher the volume, the more secure that environment is for investors.
High trading volumes are driven by more on-chain activity; they are a great predictor of the general interest in the crypto market and the growing interest in a particular exchange. The 24-hour volume highlights the total value of crypto traded in the past 24 hours and represents a perfect metric to show the liquidity of that specific exchange. The higher the volume, the more secure that environment is for investors.
As per September, 2021, Statista’s biggest crypto exchanges in the world by 24H volume were: Binance, OKEx, LocalTrade, Upbit, and Huobi Global, in that order.
Binance, the Chinese crypto giant, is leading the list, even despite its regulatory issues in the UK and the US. In the UK, the Financial Conduct Authority recently announced that the firm cannot conduct any “regulated activity”.
OKEx, Malta-based OKEx is in second place. With more than $8.54 billion being traded everyday, OKEx is an asset exchange focusing on derivatives trading. According to the company, “it provides a safe, reliable and stable environment for digital assets trading via web interface and mobile app by adopting GSLB, and distributed server clusters”. They strive to achieve something unique and vow to never stop innovating and improving on their customer experience.
Local Trade, Right after with $8.32 billion 24h volume, LocalTrade, a full-fledged CEX trading exchange and DeFi investment platform, closes to the top 3. LocalTrade has experienced an impressive growth in the last months -fostered by the new executive team-, that has seen the platform expand their offerings into the DeFi space and with the sale of their new token: the LTT. Their goal is to: “become the first platform that allows anybody, even with a fiat bank card and a small $10 check, to have seamless access to the most profitable DeFi & CeFi products.”
LocalTrade is interesting because of its DeFi expansion. This area of finance has been a hot topic in the recent months to become the latest trend in the crypto market. In fact, DeFi’s market capitalization has reached $74 billion as of this year, an increase of more than 400% since the beginning of the year. Likewise, investors are increasing their exposure into the market, which now accounts for $88 billion of cryptocurrency held in DeFi.
UPbit, in fourth place, is an exchange from South Korea, supporting +150 digital assets, with 24/7 real-time security monitoring for enhanced security. It was the first to register with South Korea’s Financial Intelligence Unit (FIU) before a September 2021 deadline.
Huobi Global, a world-leading virtual asset financial services group. According to their team: “The Huobi team is dedicated to providing safe, professional, trustworthy, and world class services to its global clients in an effort to create a client first culture”. They have offices in Singapore, the United States, Japan, Korea, Hong Kong.
All of these exchanges offer innovative solutions; each of them, however, has different functionalities. Your choice will depend on what you are looking for, primarily. Which exchange to choose is up to you, based on your goals and objectives. Decentralized exchanges have recently become an interesting trend. The most important advantage of DEX is that it is possible to trade DeFi assets here while there`s no secret that today DeFi is the most promising and rapidly developing section of the blockchain industry.
DEX is completely transparent, its work is regulated by smart contracts, and the technology on which DEX is based eliminates the risk of hacking and loss of participants’ funds, since all funds are stored exclusively in their wallets, while the platform only provides the infrastructure for exchange. However, one of the biggest problems of DEX exchanges is the lack of liquidity, because funds are provided exclusively by platform participants, and not by professional market makers.
Based on this, the best solution today seems to be the merger of the reliability and wide trading capabilities of the DEX platform with the infrastructure and wide trading volumes of a centralized trading platform. In any case, whatever platform you choose, please remember that only you are responsible for your trades, so always act carefully based on the market situation and only after fundamental analysis and careful study of the news background. Good luck with your trades!
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