10 Reasons Centralized Crypto Exchanges Are Great for Beginners

Key Takeaways

• Centralized crypto exchanges are easy to use, with user-friendly interfaces and intuitive platforms, making them great for beginners.
• These exchanges offer high liquidity and fast execution speeds, allowing buyers and sellers to easily find the best prices for any crypto.
• Centralized exchanges provide loyalty programs and incentives, including discounts, cashback, and referral bonuses, helping users reduce costs and increase profits.

Beginning your journey in the crypto world can be both thrilling and daunting. There are many options to choose from when it comes to buying and selling cryptocurrencies. However, not all of them are equally suitable for beginners who are looking for a simple and convenient way to get started.

Although some hardened crypto traders suggest avoiding centralized crypto exchanges. However, centralized crypto exchanges offer several advantages that make them great for beginners.

1. Ease of Use

The first place where centralized crypto exchanges one-leg-ups decentralized exchanges in the centralized vs. decentralized exchanges debate is ease of use. Most centralized crypto exchanges are designed to be user-friendly and intuitive.

They offer easy-to-use interfaces, mobile apps, and web-based platforms that allow you to buy and sell crypto with just a few clicks. You don’t need to worry about setting up a wallet, managing private keys, or dealing with complex technical issues.

2. High Liquidity and Fast Execution

Liquidity refers to how quickly and easily you can buy or sell an asset without affecting its price. Centralized crypto exchanges have high liquidity because they have numerous users and a high trading volume. This means you can find buyers and sellers for any crypto you want at any time and the best possible price.

Moreover, centralized crypto exchanges have fast execution speeds, filling your orders almost instantly without delays or slippage.

3. Loyalty Programs and Incentives

Centralized crypto exchanges also offer loyalty programs and incentives that can help you save money and earn rewards for trading. For example, some exchanges offer discounts on trading fees, cashback on transactions, referral bonuses, interest on deposits, staking rewards, airdrops, and more. These programs and incentives can help you reduce costs and increase your profits while trading.

4. Variety of Trading Options

Centralized crypto exchanges offer a wide range of trading options, such as spot trading, margin trading, futures trading, and more. You can choose the option that suits your risk appetite, trading style, and market conditions. You can also use advanced tools such as stop-loss orders, limit orders, and trading bots to automate your trades and optimize your strategies.

5. Customer Support

One of the biggest advantages of centralized crypto exchanges is that they offer customer support services that can help you with any issues or questions. Whether you need assistance with verification, deposits, withdrawals, trading, or security, you can contact the customer support team via email, phone, chat, or social media.

Support teams on centralized exchanges provide you with professional and timely solutions, guidance, and tips on improving your trading experience. You can also find helpful resources such as FAQs, guides, tutorials, and blogs on their websites.

6. Free Educational Resources

Speaking of guides and tutorials, if you are new to crypto, you may feel overwhelmed by the amount of information and terminology that you need to learn. Fortunately, centralized crypto exchanges offer free educational resources to help you understand crypto and trading basics.

You can access articles, videos, podcasts, webinars, tutorials, quizzes, and more on various topics such as blockchain, cryptocurrencies, trading strategies, risk management, security, and more. These resources are tailored for beginners and can help you gain confidence and knowledge in the crypto space.

7. Trading Communities

One of the best ways to learn from others and stay updated on the latest trends and developments in the crypto space is to join a trading community. Centralized crypto exchanges often have active and vibrant communities of traders and enthusiasts who share their opinions, experiences, advice, and feedback on various platforms, such as forums, chat rooms, social media groups, and blogs.

You can interact with these communities and benefit from their collective wisdom and support. You can also make new friends and network with like-minded people who share your passion for crypto.

8. More Crypto and Fiat Options

Another reason centralized crypto exchanges are great for beginners is that they offer more options for buying and selling cryptocurrencies. Centralized crypto exchanges usually support a wide range of cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC), as well as emerging ones like Cardano (ADA), Polkadot (DOT), Solana (SOL), etc.

You can also trade various pairs of cryptocurrencies against each other or fiat currencies like US dollars (USD), euros (EUR), British pounds (GBP), etc. Centralized exchanges also make it easier to convert crypto assets into fiat currencies or vice versa, as they support various payment methods, such as bank transfers, credit cards, debit cards, PayPal, or other online services.

9. Regulatory Compliance

One of the main challenges facing the crypto industry is the lack of clear and consistent regulations across different jurisdictions. This can create uncertainty and risk for both traders and platforms. However, centralized crypto exchanges are typically more compliant with existing laws and regulations in their respective regions than decentralized ones.

Centralized exchanges often have licenses or registrations from relevant authorities that allow them to operate legally and securely. They also follow stipulated standards of security, transparency, accountability, and customer protection that ensure the safety of your funds and data.

10. Competitive Fees

Centralized crypto exchanges offer competitive fees to help you save money and increase your profits. Fees are an inevitable part of crypto trading, as the exchange charges them for providing their services and facilitating your trades.

However, the fees vary depending on the exchange, the type of trade, the amount, and other factors. Centralized crypto exchanges usually have lower fees than decentralized exchanges and brokers, as they have more economies of scale. You can check out our article on the crypto exchanges with the lowest fees to see how various centralized exchanges compare fee-wise.

Should You Use a Centralized Exchange?

Centralized exchanges have many advantages, making them ideal for beginners who want to start their crypto journey. However, they also have some drawbacks, such as security risks, less control and privacy, etc. It’s critical to do your own research and due diligence before choosing a centralized exchange for your crypto trading.