Which Layer-2 network is the best overall?

No one Layer-2 (L2) can be deemed the "best" due to each being created with unique goals. As an example, many DeFi traders utilize Arbitrum, as it provides deep liquidity with a wide variety of available markets and users, while Optimism possesses a higher level of potential through its OP Stack and the concept of modular chains referred to as a Superchain. For those looking for a more secure solution, zkSync and StarkNet (both of which utilize zk-rollups) are considered to provide higher levels of security and faster withdrawals using cryptographic zero-knowledge proofs, which makes them an excellent option for users that value trustlessness and long-term scalability. For an easy user experience, Polygon Proof-of-Stake (PoS) offers extremely low fees and is seeing large numbers of users engaging in both the gaming and NFT sectors. Your specific use case will ultimately dictate which Layer–2 Technology works best for your needs; whether you are trading, developing, gaming, transacting, or designing a secure application.

Are zk-rollups better than optimistic rollups?

The theoretical "ultimate" security of zk-rollups is based on a mathematical proof of validity rather than a proof of fraud. This means that the transactions will be validated immediately after inclusion in the block, and the withdrawal of funds will take effect almost immediately. The math proofs allow zk-rollups to process complex computations much quicker than optimistic rollups and therefore, they will be used in applications that require high-speed transactions, secure & private transactions. Currently, optimistic rollups have a significantly larger user base and liquidity pool. The two largest applications in DeFi are built on optimistic rollups: Arbitrum and Optimism, with billions of dollars in TVL (Total Value Locked) and a large number of currently supported applications. By way of contrast, zk-rollups such as zkSync and StarkNet are continuing to mature and are gaining popularity among users at a faster rate than optimistic rollups. Both technologies will continue to exist side by side, and they will both solve various problems associated with scalability at different points in time. Zk-Rollups will likely become an important part of Ethereum's long-term scaling plan, but Optimistic Rollups will continue to be a critical part of the DeFi ecosystem for the foreseeable future.

Which L2 is best for beginners?

Mostly, new users choose low-cost Networks, have a straightforward wallet and a lot of apps built into it. Most new users tend to start on Polygon PoS as they offer the best chance because of their very low cost of transactions (and their large support for dApps, etc.) along with their connections to many well-known companies. Also, both Arbitrum and Optimism are beginner-friendly as both networks offer a good selection of wallets, have low fees, and have an expansive ecosystem. zkSync is beginner-friendly because of their account abstraction, but their ecosystem is still relatively new and it is less intuitive for total novices in the blockchain environment than some of the other options available. New users typically select the L2 of their choice based on the wallets and the exchanges that they already use. For example, many of the exchanges enable users to withdraw to either the Polygon or the Arbitrum network directly.

What is the safest crypto exchange for beginners?

A beginner will feel most at ease when using an exchange with an easy-to-use interface (UX) coupled with a very high level of security. Exchanges such as BYDFi, Coinbase and Kraken have very high rankings because they provide an easy-to-use interface, insured custody wallets, and compliance with regulatory requirements. BYDFi is a good choice for beginner users as it has a very clean user interface, offers quick Know Your Customer (KYC), and includes an easy-to-understand fee structure. For those starting out with cryptocurrency trading, I recommend setting up two-factor authentication (2FA) on their account to provide further protection against hacks and phishings, and to not use an exchange to store any significant Bitcoin/cryptocurrency holdings.

Which exchange has the lowest trading fees?

Depending on the location and size of your trade, trading fees can vary. However, under most circumstances, Binance, BYDFi and KuCoin will have the lowest fee costs out of any major exchange. BYDFi offers the added benefit of a set fee structure that provides predictability and clarity regarding what you will be charged for either a cash (spot) trade or a futures trade. Some other exchanges offer tiered discounts or "VIP" status based on the user's transaction volume, which can be beneficial for users with a large trading volume.

Can I use a crypto exchange without completing KYC?

KYC is required by the majority of the largest exchanges such as BYDFi, Binance and OKX before users can access their platforms to complete larger withdrawals, trade derivative options and more. A limited number of exchanges provide "no-KYC" functionality with varying amounts of limitations. Complete KYC increases the overall safety and security of the user's exchange account while also decreasing the likelihood of problems when trying to withdraw funds.

How do I choose the best exchange for my region?

There are several factors which will determine which exchange is best, including the types of payment methods that are provided by the exchange, the languages that are offered as support, and the laws of the country where the trader resides. Exchanges such as BYDFi, OKX, and Binance are popular with traders located in Asia because they allow traders to deposit funds using Asian fiat currencies and to use banking networks located in that region. On the other hand, Coinbase, Kraken, and Bitstamp provide the types of regulatory protections required by many traders in the EU and the US. It is important to review the deposit and withdrawal options provided by each exchange prior to opening an account.

What is the difference between a centralized exchange (CEX) and decentralized exchange (DEX)?

Centralized exchanges (BYDFi, Binance, and Coinbase) take care of the process of matching orders, withdrawing funds, and storing user funds. Because of this, they provide traders with a convenient way to place trades (speed of execution and superior access to advanced trading tools) that they would not have when using a decentralized exchange (DEX). On the other hand, DEXs (such as Uniswap) permit traders to trade directly from their wallets and do not require KYC verification, but do not offer customer service support like centralized exchanges do, can be difficult for beginners to learn how to navigate, and may charge much higher gas fees than centralized exchanges.

Which exchange is best for futures trading?

BYDFi, Binance Futures, OKX, and Bybit are all very popular trading platforms for derivatives because of their high levels of liquidity and fast trade execution. Of these four platforms, BYDFi has an especially user-friendly interface when it comes to futures trading, as well as a number of great risk management options. Before using these platforms for futures trading, it's important to verify the maximum leverage available, as well as both funding rates and liquidations.

How do exchanges protect user funds?

Top exchanges implement multi-layered security systems including:

• cold storage for most reserves
• multi-signature authorization
• DDoS protection
• encryption of personal data
• proof-of-reserves audits
• BYDFi and Kraken are known for transparent security mechanisms and reserve verification systems.