Key roles of encryption exchanges

1. Asset Conversion and Trade Matching

Encryption exchange as a trading platform for digital assets, allowing users to exchange fiat currency (such as USD, EUR, etc.) for cryptocurrencies (such as Bitcoin, Ethereum), or exchange between different cryptocurrencies, and automatically match buy and sell orders through an order book system.

2. Custodial Services and Wallet Support

Some exchanges also offer built-in wallet services, allowing users to store and manage their encryption assets on the platform, such as the Web3 wallet provided by Gate.io, which supports multi-chain asset management, DApp interaction, and cryptocurrency trading functions, helping users to participate in the decentralized ecosystem safely and conveniently.

Gate.io offers built-in Web3 wallet functionality (Image source:https://www.gate.io/en/web3）

3. Liquidity Provision

An exchange with high liquidity can reduce price fluctuations, encourage prices to naturally form based on supply and demand by aggregating a large number of buy and sell orders. In addition, exchanges enrich trading pairs and meet diverse trading needs of users by introducing new currencies and hosting trading events.

4. Financial derivative services

To meet the needs of different users, exchanges continuously introduce innovative financial products and services, such as leverage trading, futures contracts, pledge services, etc. For example, Gate.io focuses on cryptocurrency derivatives trading, providing futures, options, and perpetual contract trading of Bitcoin, Ethereum, etc.; In addition, the exchange has also developed features such as copy trading and automated trading bots to help users improve trading efficiency.

5. Compliance and Security Protection

With the development of the encryption market, compliance and security have become key to the operation of exchanges. Therefore, exchanges need to comply with laws and regulations of various countries, implement KYC (Know Your Customer) and AML (Anti-Money Laundering) policies to ensure the legal and compliant operation of the platform. At the same time, exchanges also adopt multiple security measures such as cold wallet storage, multi-signature, risk control systems, etc., to protect the security of user assets.

Critical Factors in Choosing an Exchange

Security: The exchange should have perfect security mechanisms, such as cold wallet storage, two-factor authentication, anti-phishing protection, etc., to prevent hacker attacks;

Fee structure: including trading fees, withdrawal costs, and hidden costs, among which low-rate platforms can significantly reduce long-term trading costs;

Supported asset types: High-quality exchanges usually support a diverse range of coins, covering mainstream and potential projects, meeting users’ investment needs;

User experience: Clear interface, full functionality, and quick response are the main evaluation criteria, and support for multiple languages and other details can also enhance the user experience;

Compliance: Represents the trustworthiness and stability of the exchange, choosing a platform with a valid license and adhering to local KYC/AML policies.

Overview of Leading Centralized Exchanges

1. Binance

24H trading volume: about $74.3 billion

Monthly Visits: about 59.3 million

Brief review: The exchange platform with the highest global market share, covering 200+ countries and regions. Its advantages lie in its wide range of currencies, low fees, comprehensive product system (spot, futures, Launchpad, wealth management, etc.), and it is accelerating the process of compliance, having obtained licenses in Dubai, France, and other places.

2. Gate.io

24H trading volume: about $33.2 billion

Monthly Visits: 26.9 million

Brief review: A well-established exchange platform, featuring a wide range of new coins and Launchpad functionality, suitable for exploring small coins and emerging projects. In addition, Gate.io has launched the Gate Web3 ecological plan in 2023, supporting on-chain wallets and decentralized asset management tools.

3. OKX

24H Trading Volume: Approximately $28.2 billion

Monthly Visits: 23 million

Brief review: Leading platform in the Asia-Pacific region, strong contract liquidity, extensive layout in DeFi and Web3 ecosystems (OKX Web3 wallet, NFT market, etc.); Accelerate overseas expansion in 2024 and make regulatory progress in places like the UAE.

4. Bitget

24H Trading Volume: Approximately $24.6 billion

Monthly Visits: 19.7 million

Brief comment: With a focus on contract trading and copy trading, Bitget has seen rapid user growth. In 2024, Bitget proposed the ecological integration direction of ‘exchange + Web3 + AI’, and increased brand exposure in emerging markets such as South Korea, Turkey, and Latin America.

5. Coinbase

24H Trading Volume: Approximately $24.2 billion

Monthly Visits: 46.3 million

Brief comment: The largest compliant exchange in the United States, established in 2012, and listed in 2021 (Nasdaq: COIN). Its advantages lie in high transparency and suitability for compliant investors, especially attracting a large amount of institutional funds after the ETF approval.

6. Gate.io

24H trading volume: about $23.9 billion

Monthly visits: 22.6 million

Brief review: Known for its fast listing speed of small coins, Gate.io is one of the preferred platforms for Altcoin traders. The platform has recently expanded its product lines to include contracts, ETFs, and Launchpad, and is actively expanding into the Southeast Asian and Middle Eastern markets.

7. Bybit

24H trading volume: about $23.8 billion

Monthly Visits: 19 million

Summary: Derivatives trading is strong, with products covering options, perpetual contracts, pledged wealth management, etc. Starting in 2024, Bybit will upgrade the KYC process, launch a user protection fund to enhance brand trust. It has obtained preliminary operating licenses in Kazakhstan and Dubai.

8. HTX (formerly Huobi)

24H Trading Volume: Approximately $20.5 Billion

Monthly Visits: 16.7 million

Brief review: After undergoing brand restructuring and senior management changes, HTX continues to deepen its presence in the Asian market. Recently, it is committed to building a community governance ecosystem through HTX DAO. However, the brand’s global compliance development still faces challenges.

Top exchange by trading volume (Image source:Top Crypto Exchanges| CoinGecko）

Top DEX (Decentralized Exchange) Projects

Decentralized exchanges (DEX) as a core component of the Web3 financial ecosystem, are reshaping the landscape of digital asset trading with composability, high transparency, and permissionless characteristics. According to the latest data in April 2025, the daily trading volume concentration of mainstream DEX platforms continues to increase, and leading DEX projects are showing a trend of on-chain ecosystem layering, multi-chain deployment, and product differentiation.

Currently, Uniswap V3 (Ethereum) ranks first with a 13.3% market share and a daily trading volume of over 8.4 billion US dollars, firmly holding the leading position in the DEX on the Ethereum mainnet. The platform supports over 1,280 types of tokens and more than 1,800 trading pairs, becoming the main liquidity hub for DeFi asset trading. Its highly modular AMM mechanism and LP concentration liquidity model have been widely replicated in various emerging protocols.

Ranked second, Orca is a representative DEX in the Solana ecosystem, widely adopted for its low fees, high-speed trading, and excellent user interface, with a daily trading volume exceeding $640 million, accounting for approximately 10.2% of the market share, making it one of the most active platforms for liquidity on the Solana chain.

Canto Dex, with a market share of up to 8.2% and extremely small coin coverage, demonstrates typical characteristics of ‘high concentration and high utilization,’ indicating that the platform has strong user stickiness and deep liquidity advantages in a specific ecosystem, making it a typical ‘single-asset focused DEX’ model.

Overall, the current DEX market presents a multi-layered pattern with Ethereum main chain dominance, rapid rise of Solana/Layer2, and meticulous operation of the long-tail ecosystem. Top DEX platforms are increasingly expanding their discourse power in decentralized finance infrastructure through mechanism innovation and multi-chain deployment strategies.

DEX Head Projects Overview (Image Source: Top Decentralized Exchanges Ranked by Volume | CoinGecko)

Platform-based investment advice

For investors who pursue early-stage project dividends and focus on small and medium market value assets, choosing a platform with fast currency listing speed and wide ecosystem coverage is more critical. As a leading global digital asset platform, Gate.io supports trading of over 7,700 types of cryptocurrencies, covering spot, futures, ETFs, wealth management, and other products, particularly suitable for discovering potential currencies and participating in early investment opportunities, quickly starting the journey of encryption.

For long-term value investors, it is recommended to prioritize platforms with strong compliance, secure asset custody, and high stability. Generally speaking, large exchanges have strict risk control systems and mature legal structures, making them suitable for holding core assets such as Ethereum and Bitcoin in the medium to long term.

In addition, high-frequency traders and professional users can use exchanges such as OKX, Bybit, or Bitget, which provide deep contract markets and low-latency matching systems. These platforms have clear advantages in derivatives and leverage products, meeting complex strategy and high liquidity needs.

In investment strategies, investors can adopt a ‘hot and cold wallet’ combination asset management strategy and enable two-factor authentication (2FA) to further enhance account protection. For users with larger fund sizes, they may prioritize exchanges that support institutional services, API trading, and multi-account systems.

Conclusion

Crypto exchanges are no longer just trading venues – they are evolving into full-featured financial ecosystems, providing custody, asset management, financial tools, and compliance support. This article provides a comprehensive overview of both centralized and decentralized trading platforms, comparing features such as trading volume, asset diversity, product richness, and regulatory advantages.

For beginners, understanding the strengths and roles of major platforms like Binance, Gate.io, OKX, and Uniswap helps build a foundational knowledge for forming investment strategies. Whether you lean toward CEX security or DEX autonomy, selecting the right exchange based on your goals is the first step toward successful participation in the crypto world.