Cryptocurrency is slowly taking over and although it is unstable, facing extreme highs and downfalls, one thing is clear it is here to stay. If you are a beginner who is just starting out crypto investments then you need to know all about crypto exchanges so that you can start. As more and more people are becoming interested in crypto exchanges, digital marketplaces are increasing. Choosing the right crypto exchange is important and you should do complete research about these platforms before you opt for the one you think is the best.
What is Crypto Exchange?
Crypto exchanges or digital currency exchanges are online brokerage like platforms where you can buy or sell cryptocurrency or tokens like Dogecoin, Litecoin, Bitcoin, or Ethereum. You might have heard the names Binance, Gemini, and Kraken that sound like some mythical monsters straight out of a fictional world. These are all crypto exchange marketplaces since you cannot buy crypto from your investment firms or banks. To start trading cryptocurrency, you will need to make an account on one of these platforms and use any currency like Dollars or Euros to exchange digital assets.
Each digital marketing platform has its benefits, some offer amazing speed while others offer competitive prices. You need to evaluate a platform and read up all about its features like fee structure, security, etc. so that you can choose the one that is best suited to your needs. We have gathered the top 5 cryptocurrency exchange platforms along with their pros and cons to help you navigate through them:
1. Coinbase:
This particular platform is great for beginners and offers a high level of security to the users. It was launched back in 2012 for Bitcoin but now has a market value of $36 billion with availability in more than 100 countries. One of the best things about Coinbase is that it gets insurance for your funds so that they remain safe in case of a security breach. It can also store your crypto for as long as you want and you will have entire control over your E-Wallet which is secured by a private key only you know. Coinbase also has an extension for advanced users named Coinbase Pro so it will be easier for you to transfer after you have gained experience. However, the platform has a relatively high trading fee than some other platforms.
Pros:
- User-friendly and good for beginners
- Wide range of cryptocurrencies
Cons:
- Relatively higher fees than other exchanges
- A custodial account means you do not get a private key
2. Gemini:
Gemini is the best cryptocurrency platform based on its robust security which makes it great for beginners and pros alike. It was launched in 2015 and has made quite a name for itself since then. Gemini offers around 70 cryptocurrencies and allows users to make purchases using crypto. It also uses two-factor authentication and options to approve or disapprove a new device login which contributed to making it SOC-2 certified (security verified by third-party auditors). Gemini also has a higher trading fee for trades above $200 although it charges less for smaller trades.
Pros:
- High-level security with private keys available
- High liquid exchange
Cons:
- Higher trading fees for large trades
- Might be complicated for beginners
3. Binance:
It is the biggest and most commonly used digital exchange marketplace known for its relatively less trading and conversion fees. The fee gets decreased as your trading volume increases and the platform also offers discounts for using its proprietary currency BNB. Binance is also well-known due to its fast-speed trades. However, Binance is not rated well by the users, and the most common issue people face include trouble in withdrawing funds or poor customer service.
Pros:
- Low trading fees
- Minimum trade required of $10
Cons:
- Customer service is available through email only
- Relatively low options of cryptocurrencies (60)
4. Crypto.com
The platform ranks no.1 on Cybersecurity Ranking and Certification Platform’s top 100 exchanges. It used a lot of security protocols to make sure the user funds are safe such as biometrics, passwords, emails, multi-factor authentication, and identification. Crypto.com is not only winning at security but it also features the largest number of cryptocurrencies with a selection of 250 digital coins. Another thing that makes Crypto.com stand out is its mobile app which provides users the convenience of trading on the go. Although there are so many positive aspects, Crypto.com lacks customer service and it also warrants a relatively high transfer fee unless you are trading in high volumes.
Pros:
- Best cybersecurity
- Selection of 250 cryptocurrencies
Cons:
- Crypto to crypto trading is not available
- Poor customer support
5. Kraken:
It is one of the oldest digital currency exchanges that allow cryptocurrency trading. Kraken was launched in 2011 and its user-friendly interface makes it a good option for beginners. It has a selection of 120 cryptocurrencies and even has an extension for advanced users called Kraken Pro. It makes trading crypto easy by linking your bank account so that you can buy digital assets directly. It also has the option of enabling two-factor authentication which makes your account safe by allowing you to approve access from another mobile phone and sending you a randomly generated pin code every time. However, Kraken has a limited geographical reach and is not available in some US states like New York or Washington.
Pros:
- Low trading fees on Kraken Pro
- 120 cryptocurrencies
Cons:
- Not available in all states
- Limited account funding options
Some of the things you should consider before opting for a cryptocurrency exchange platform include Security, Liquidity, Trading Fees, Accessibility, Cryptocurrency Selection, Storage, Tax Information, Customer Support, and Educational Tools. No platform is perfect and you will eventually have to compromise on something or another so choose according to your needs. Make sure you check out all of these marketplaces and get educated before you make an account. Crypto can be risky and you can suffer great losses but you should remember that getting good at crypto trading will require some patience and practice.
