Wondering which is the most popular centralized exchange for cryptocurrencies?
Here’s everything you need to know about important centralized crypto exchange statistics, facts and figures for 2024 and beyond.
A centralized exchange is an online platform where people can trade assets through a centralized entity or middleman, which helps traders connect and transact securely.
Unlike decentralized exchanges (DEX), where people transact directly in a peer-to-peer fashion, centralized exchanges (CEX) use middlemen to handle transactions on behalf of buyers and sellers, ensuring smooth and secure processing.
The term CEX is particularly popular in the cryptocurrency space, where people use online exchanges to trade various digital assets, including cryptocurrencies.
Centralized exchanges are easier to use, offer higher security, and are credible due to certain regulations. At the same time, there are some risks involved in trading with centralized crypto exchanges.
For example, there is a risk to user privacy and data safety due to centralized control. Also, centralized exchanges are prone to the risk of bankruptcy.
Trading with centralized exchanges involves higher costs and processing time due to the presence of middlemen.
Whether you’re a cryptocurrency enthusiast or a curious fan looking to explore numbers around your favourite way of trading cryptocurrencies, you’ll find here all the exciting facts, figures, and statistics related to Centralized Exchanges, crypto trading and cryptocurrency exchange development.
What is a Centralized Crypto Exchange?
Centralized exchanges (CEXs) are online platforms where people can buy and trade certain assets. Crypto exchanges are a type of platform dedicated to the trading or exchange of cryptocurrencies.
Trading refers to the practice of exchanging one thing for another. In asset trading, one asset or currency is used to purchase another asset.
Cryptocurrency is a type of digital asset that is created with the help of blockchain development, a decentralized network facilitating peer-to-peer transactions and recording every transaction in its distributed public ledger.
To buy and sell cryptocurrency, a dedicated platform is used, which is called a crypto exchange. Traditionally, crypto exchanges were all centralized, i.e. run by humans who facilitated transactions between traders while ensuring the security and integrity of the platform.
Lately, a new type of cryptocurrency exchange has emerged, which is called a decentralized exchange and allows traders to engage in peer-to-peer (direct) transactions with each other without middlemen.
Decentralized exchanges are claimed to be more secure and cost-effective than centralized exchanges. Still, they can be too technical for beginners and involve higher risks due to the lack of regulations.
CEXs run on an order book system or matching system, where a type of software is used to match buy and sell orders based on price and other factors in real-time.
The price and liquidity of a cryptocurrency on a CEX, therefore, depends on the availability of buyers and sellers (demand and supply).
Centralized Exchange Statistics, Facts, and Figures
Ready for some interesting centralized crypto exchanges and trading stats? Here you go.
- A centralized cryptocurrency exchange is similar to a stock exchange. You can use it to buy and sell cryptocurrencies such as Bitcoin, ETH, and others.
- Most centralized exchanges out there are governed by certain regulations and require users to complete KYC verification, AML, etc. before trading digital assets.
- The biggest centralized exchange for cryptocurrencies is Binance with $18.22B 24-hour trading volume as of January 2024. In other words, users on Binance trade cryptocurrency worth over $18 billion every day.
- UEEx, BIKA, OKX, Upbit, Coinbase, and Bithumb are other popular centralized exchanges in terms of daily trade volume.
- A centralized exchange usually gets its income from commissions and transaction fees on trades.
- There are two types of orders on a CEX, market order and limit order. A market order is placed at the current price of the asset, while a limit order is set to execute at a price specified by the trader.
- Only centralized exchanges can be used to buy or trade cryptocurrencies with fiat currencies such as Dollar. DEXs do not support fiat currencies.
- Almost 99% of all crypto transactions are processed by centralized exchanges, which indicates their popularity and widespread adoption.
- Binance is the number 1 exchange by CoinMarketCap score (9.9) based on factors such as Web Traffic, Average Liquidity, Volume, etc. It is followed by Coinbase with an 8.2 score.
- The last reported 24-hour trading volume of the Binance exchange was $40,800,116,391, as of March 14, 2024, according to coinmarketcap.com.
- In terms of the total number of cryptocurrencies or digital assets listed on a platform, Gate.io is the top CEX with 1963 listed coins. MEXC, with support for 1934 coins, is the second best. Binance supports only 403 coins.
- In terms of the number of markets, Gate.io is the top exchange with support for 3370 markets, while MEXC holds the second position with access to 2338 markets.
- Binance is the top CEX in terms of average weekly visitors. It receives over 19 million visitors every week. OKX, which is the next to top, receives about 1/3rd of this number.
- In terms of average liquidity, Binance stands at the top with an 881 score, followed by Coinbase’s 762 score.
- CoinTR Pro (30), Bitunix (25), DigiFinex (28), Poloniex (36), KuCoin (48), CoinW (34), HTX (50), FameEX (41), and OKX (46) are among the centralized exchanges with support to the highest number of fiat currencies.
- The 242 CEXs listed on the CoinMarketCap website at the time of writing had a total 24-hour trading volume of over $1T.
Crypto Exchange Trading Facts & Figures
- The total trading volume of the cryptocurrency market reached its highest at $US3 trillion on Nov 8, 2021, according to Statista.
- About 60% of crypto holders have consented that they are happy to trade cryptocurrencies despite them being unregulated.
- Crypto trading and exchanges are partially or completely banned in over 50 countries. However, many of them allow their citizens to hold digital currencies.
- Coinbase, one of the largest crypto exchanges by userbase, has over 110 million verified users as of February 2024.
- Coinbase is one of the first exchanges to launch its own Visa card in 2020, which allows users to spend cryptocurrency to make payments across 40M+ merchants all over the world.
- According to a report, there are more than 1,800 crypto exchanges out there, but only about 500 have a considerable user base.
- The number of crypto exchanges has exploded in the past few years. There were only a couple hundred exchanges in 2019.
- The global Cryptocurrency trading market size is expected to reach USD 347.50 billion by 2030, according to a report by Spherical Insights.
- The crypto trading market revenue is expected to reach US$51.5bn in 2024
- Between 2024 and 2028, the crypto market is expected to witness an annual growth rate (CAGR) of 8.62%.
- Spot trading refers to the process of buying cryptocurrencies in real-time at live prices.
- The top 10 centralized exchanges contribute to around 80% of all crypto trading activities.
- The top 4 CEXs contribute to over 60% of all crypto trades made in a day.
- Coinbase is the largest centralized exchange by the number of registered and active users. It is the most popular CEX in the US.
- eToro is one of the few stock trading platforms that also supports crypto trading. In 2021, the exchange said that over 60% of its profits came from crypto.
- WazirX is India’s largest and most popular crypto exchange by the number of users and trade volume.
- Crypto.com is the world’s most comprehensive crypto trading platform that also offers a crypto debit card, an NFT marketplace for trading non-fungible tokens, and a DeFi wallet.
- Over 100 million people in India are reported to own or trade cryptocurrencies, which is almost 7% of the country’s population.
- The total monthly trading volume of the entire crypto exchange market in February 2024 was over $1.7 trillion.
- The monthly trading volume of the Binance crypto exchange in February 2024 was $506.24 billion, according to theblock.co. Upbit, with a monthly trading volume of $81.3 billion, holds the second place.
# According to Investopedia.com,
- The best crypto exchange for Low Fees: Kraken
- The best exchange for Experienced Traders: Kraken
- The best centralized exchange for Beginners: Coinbase
- The best Mobile App for crypto trading: Crypto.com
- The best crypto exchange in terms of Security: Gemini
- The best exchange for trading in Altcoins: BitMart
- The best exchange for Bitcoin: Cash App
# Many centralized crypto exchanges now support fiat currencies, making it easier for people to buy and trade in crypto with their local currencies and debit/credit cards.
# To build your own centralized cryptocurrency exchange, you might need to hire the services of a professional blockchain development company like SAG IPL.
FAQs on CEX
Find here answers to some frequently asked questions about centralized cryptocurrency exchanges:
What is the KYC verification process in CEX?
A centralized crypto exchange is a regulated exchange that is required by the government to complete identity verification for all its platform users and crypto traders.
The KYC process involves providing your authentic identity proof and other required documents when signing up with a CEX to verify your identity before you can trade in cryptocurrencies.
Can a centralized exchange offer peer-to-peer trading services?
Yes, many centralized crypto exchanges, including Binance, provide P2P trading services as well, which involves using a matching engine (software) to match buy and sell orders based on factors such as price, etc.
When you place a buy or sell order, the P2P crypto exchange will find the best available offer based on your input criteria and then you can trade directly with the person looking to sell or buy crypto.
How to purchase crypto through a centralized exchange?
Wondering how to buy crypto on a CEX? Centralized exchanges are the easiest way to buy and trade in cryptocurrency. You only need to complete your KYC when signing up with a CEX.
Then, you can easily buy your favourite crypto by using crypto, credit/debit card or other available payment options. Most of these exchanges also support fiat currencies like dollars.
Which cryptocurrencies or digital assets can I purchase on a CEX?
You can buy practically any cryptocurrency or digital asset through a centralized exchange. These include Bitcoin, ETH, XRP, BNB, USDT, and many more.
Many popular centralized exchanges support hundreds, if not thousands, of cryptocurrencies, which you can easily buy through their secure platforms.
Which is the most popular crypto exchange platform?
Well, in terms of userbase and trade volume, the most popular CEXs include Binance, UEEx, BIKA, OKX, Upbit, Coinbase, and Bithumb.
While Binance is the biggest and most popular centralized exchange for cryptocurrencies, Coinbase is its biggest competitor with a high level of popularity.
What is the difference between centralized and decentralized exchange?
A centralized exchange performs trade transactions using a matching software which is managed by a person or centralized entity to ensure secure and error-free transactions.
In a decentralized exchange, there is no middleman or intermediary and all trades are processed through smart contracts.
If you are looking to hire a professional blockchain agency for CEX development or marketing, please contact SAG IPL to set up a meeting.
