What are crypto exchanges for trading

Cryptocurrency trading exchanges are classified according to several criteria.

Principle of operation:

Centralized. They imply the creation of an account, the storage on servers of all information about clients, their balances, open positions. Subject to hacker attacks, as well as censorship by the government. A centralized exchange is a standard business that has a registration authority and a physical location of the office.

A stack of bitcoin tokens sit in this arranged photograph in London, U.K., on Tuesday, Jan. 9, 2018. On Wednesday, billionaire¬†Warren Buffett¬†said on CNBC that most digital coins won’t hold their value. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

Decentralized. They work on the blockchain. Free from censorship. The downside is that illegal transactions can indeed be carried out through such platforms. Also, while decentralized exchanges are less popular, their trading volumes are small, which causes all sorts of problems, such as not having enough coins to create a large order. Protocol hacks also take place. But user funds are stored exclusively in their own wallets.
Degree of regulation:

Adjustable. They are used mainly by institutional investors, who care about the impeccable observance of the law in all actions. Such exchanges are accredited by the government, all transactions on them are monitored, and each user must confirm his identity or information about the company he represents. The overall liquidity and trading volumes on such exchanges are higher, since such exchanges provide more guarantees and, in general, have a higher quality of work.
Unregulated. Used by small and medium traders. The option is suitable for those who tend to keep their actions with cryptocurrencies anonymous, do not want to verify their identity, or are afraid of questions from the government.
Fiat support:

With fiat gateway. Fiat money is national currencies (dollar, ruble, etc.). Some sites connect the ability to replenish and deposit funds through payment systems, including Visa / MasterCard. For many users, this is a decisive criterion for a comfortable work experience.
No fiat gateway. To replenish the account of such an exchange or, on the contrary, to withdraw funds from it, you will have to use the third link. For example, change fiat to cryptocurrency through an exchanger, and only then make a deposit. There are almost no such exchanges left now.
Trading Opportunities:

Margin. Lending or “debt trading” will be described in more detail below. In short, this is the provision by the exchange of additional funds for trading, which then will need to be returned with interest.
Spot. Only half of the exchanges support margin trading, the rest do not implement such a function, limiting themselves to regular spot trading, which implies instant settlement between market participants. The main reason for this is the close attention of the US Securities and Exchange Commission SEC. Trading with leverage significantly increases the risks, despite the fact that the crypto market is already associated with high risk due to volatility.
Volume:

Liquid. Liquidity is the ability to quickly sell an asset at the most favorable price. Liquid exchanges are characterized by a large number of users, many orders created every second, and therefore trading on them is carried out in a matter of seconds. The asset itself also matters, popular cryptocurrencies are always more liquid than rare ones.
Illiquid. Some sites offer a limited selection of currency pairs, among which there are those that are practically not in demand. Periodically, exchanges purge such pairs, for example, in 2018, OKEx removed 42 trading pairs with minimal liquidity. Binance removes 5-10 low-liquid trading pairs almost every month.
Degree of disclosure:

Without verification. There are practically no sites that allow you to use full-fledged functionality without verification at all (that is, documentary confirmation of your identity). These are decentralized platforms, as well as centralized ones – YoBit.
KYC and AML. These are norms designed for the safety of clients and are used in both traditional financial systems and cryptocurrencies, although this contradicts the anonymity system embedded in the blockchain. Exchanges have to make concessions to the requirements of regulators.
Verification as needed. Most platforms allow trading without verification, confirmation by email or SMS is enough. But those who want to take advantage of advanced functionality, for example, increase withdrawal limits, still need to go through verification. This is the most common scheme.