Choosing a centralised exchange is not easy. There are hundreds of them out there, around 600 to be more precise, with each one promising a secure and easy to use platform to buy and trade crypto. Choosing the right Centralised Exchange (CEX) for your personal needs is a challenge we all need to go through. But they are not all the same, so what sets BYDFi apart from all the others?

The saying 'Not your keys, not your coins' came into being because of CEXs that failed. There have been many CEXs that failed, some spectacularly. First was Mt Gox in 2014, followed notably by Bitconnect (2018), Quadriga in 2018/19, and most recently FTX (2022). The saying was first coined by technologist Andreas Antonopoulos at an event in 2017 and still holds true today. And after the tumultuous year that was 2022, many more have learned the truth of these words. So why even use a CEX? Well mainly because we need a fiat onramp. Converting fiat into crypto is the main reason for using a CEX. It is an essential feature in everyone's crypto journey and the reason there are so many to choose from. 

So how do you choose the right CEX for you? Well, there are key aspects that need to be considered, starting with security. Ease of use, trading fees, available coins, trading volume, and other service offerings are the other main features that need to be considered when comparing exchanges. So what makes BYDFi different from the others?

BYDFi was founded in 2020 as BitYard, so while it is not particularly old in the traditional sense, it has survived through an extremely volatile and chaotic period in the crypto space. BYDFi was rebranded in January 2023 and is an acronym for BUIDL Your Dream Finance. The 'i' stands for you, me, and everyone who wants to take their finances into their own hands. This resonates with me. I entered into crypto for this very reason, so having this as an ethos for a centralised exchange is positive and gives them a different feel. 

Security 

When using a CEX you are entrusting them with your holdings, if something goes horribly wrong, the chances of you recovering your coins in a timely manner, or ever, are slim. This is why security is the most important aspect when choosing an exchange. It is also difficult to ever be truly secure. There have been too many notable collapses over the years and hacks are another ever present danger. When it comes to hacks, some of the biggest names in the industry have been hit including Kucoin (2020) and Binance (2019). The difference between exchanges becomes evident during events like this, with Kucoin managing to recover most of the stolen funds and Binance's SAFU fund covering customer losses. Other exchanges were not so secure, and many lost their holdings. 

This is why you should always check the details when looking into how secure a CEX really is. How long an exchange has been operating is one benchmark to look for. Time moves quickly in crypto and exchanges and every year that a CEX has survived earns it a gold star. An extra star is awarded for surviving in a bear market and other major collapses. 2022 showed us all the domino effect that can be felt throughout the industry when a major player comes undone. 

BYDFi takes security seriously. They hold multiple regulatory licences from notable authorities including the American Money Services Business (MSB) and the Australian Transaction Reporting and Analysis Center (AUSTRAC). They also regularly stress test and audit their services to guard against accidents and hacks and ensure compliance with strict security standards.

How an exchange stores its crypto is another important consideration, no one wants to end up in a Quadriga like situation where the founder was the only person with access to the exchange's wallets. BYDFi stores its customer's crypto in multiple cold wallets, ensuring it is offline and safe from hacks. Uniquely, multiple signatures are required to deposit and withdraw funds as an added layer of security.

They do not have an insurance fund (like Binance's SAFU fund), instead opting for real time auditing and risk management tools to monitor their customer's leveraged trade market positions and exposure. All communications with BYDFi are fully encrypted with SSL (Secure Sockets Layer), so you can be assured safety when sending documents and ID to complete the 'Know-you-Customer' (KYC) verification necessary for a full account. 

But security doesn't stop there. The weakest link in a CEX's security is you, the user. Which is why it is reassuring to see that BYDFi provides tools for you to protect your account. These tools are incentivised too, to ensure the highest levels of participation. Two-factor authentication is the most well known safety feature, ensuring that logging in to your account requires verification on your mobile phone. But BYDFI offers more layers of security including the Google Authenticator app, multiple levels of passwords, and address book whitelisting.

Ease of Use

Crypto has a steep learning curve for beginners and is complex enough without adding in a CEX with a confusing or difficult user experience. BYDFi aims to keep things simple and is one of the easiest centralised exchanges to sign up with. It's fast too. To set up a basic account you only need an email address or mobile phone number. I was pleasantly surprised by how quick it was to join and set up my account. To gain full access to all features it is essential to complete KYC, which is standard fare for all CEXs. 

BYDFi has a clean and simple site to navigate, it is not difficult to find what you are looking for and includes classic and advanced trading tools and views. This makes it a great choice for beginners and advanced traders alike. 

Trading fees

Fees are an unavoidable feature of all exchanges and can be confusing. Again, BYDFi has simplified its fee structure to make it as user friendly as possible. While its fees are not the lowest available, the saying you get what you pay for rings true here. Trading fee information can be easily found on their website here, and rates are displayed when spot trading. Funding fees can be found here. It is refreshing to see such a simplified fee structure and sets BYDFi apart from many exchanges. 

Available coins

Over 400 cryptocurrencies are available for purchase and trade on the BYDFi platform. This is a healthy number to suit all but the most seasoned degen's trading needs. 

BYDFi currently supports an impressive 54 fiat currencies for deposit and their website is available in 10 languages. 

Trading volume 

Low fees and multiple crypto offerings are meaningless if the exchange doesn't have a healthy volume. This is why many people stick with the largest exchanges, to ensure trades will not be left sitting on the table. BYDFi is one of the fastest growing CEXs, available in over 150 countries. As a Forbes recommended exchange, this growth is not going to slow down any time soon.

Trading analysis (TA) indicators are available to Classic, Advanced, and derivatives traders to fine tune your trades (or confuse things even more) and are a welcome feature lacking from many exchanges.

Service offerings

Besides fiat on-ramping and spot trading, BYDFi offers many other services to its customers. The most popular of these are leveraged trades, up to 150x! There is also a Lite Contracts option for beginners looking to start exploring derivatives trading. Users from many countries are unable to trade with leverage on major exchanges like Binance, so check out BYDFi to see what is available to you.

If leverage isn't your thing, you can try Copy Trading. This is another service that sets BYDFi apart from the competition. The copy trading interface is simple to use and updated regularly so you can be assured that trader information is up to date.

BYDFI also allows non-KYC withdrawals up to .2 BTC daily, a very desirable feature for the privacy conscious crypto trader. 

All in all, BYDFi is a centralised exchange worth looking into. It is one of the easiest to use platforms I have encountered, information is accessible, and your account is simple to navigate. BYDFi provides all the services expected from a CEX, with some interesting extras on top like copy trading. Most importantly they take security very seriously, both theirs and yours, ensuring a robust platform that is quickly growing in popularity. Signing up is fast, and users can enjoy generous rewards for creating an account, upgrading their security, and recommending new users with their referral code (here's mine - https://www.bydfi.com/en-US/account/register?ru=7TISpr). It's not surprising that BYDFi are growing fast, they won't stay underrated for long!