Cryptocurrencies are the new financial craze, with Bitcoin (BTC) dominating the news and Dogecoin nailing the punchlines.
Investors have more choices than ever before to swap their hard-earned cash for decentralized digital currency as the amount of cryptocurrencies on the market continues to grow. However, how can you go about selling your preferred cryptocurrency?
The internet is riddled with horror reports of hackers stealing traders’ funds from improperly guarded cryptocurrency exchanges, stressing the value of choosing a stable crypto trading site before making your purchase. As a result, which of the numerous cryptocurrency exchanges is the perfect fit for you?
A variety of considerations can affect your decision: stability, ease of use, fees, and the number of coins available for trading are all factors to weigh when deciding on the right crypto exchange for you. Here are five choices to choose from that will fit a variety of cryptocurrency investors to help you find the cryptocurrency trading platform that meets your needs.
Coinbase, one of the most common crypto exchanges globally, is predictably at the top of this chart. Coinbase will go public with a direct listing in the coming weeks, and with a valuation of $100 billion, the hype around the company’s launch is building. Although buyers will shortly be able to participate in Coinbase, crypto traders have been using the exchange since 2012, and it has only grown stronger with time.
Coinbase is an excellent location for new traders to get started because of its user-friendly design, simple onboarding method, and free $5 just for signing up. Coinbase Pro, which features more versatile platforms for power users trying to get into cryptocurrency investing, would appeal to advanced users.
Coinbase also gives users a wallet, although a hot wallet, which opens the door to future threats – but George Chrysochou, global marketing manager at Financer.com, points out that Coinbase is one of the most secure markets, maintains very high-security levels, and has never been compromised.
Coinbase users have a good selection of choices to pick from, with 46 various forms of digital currencies and altcoins accepted, but the list is by no means exhaustive. Additionally, consumers should be aware of hefty fees tacked onto their transactions, which are part of a confusing fee arrangement around the Coinbase platform.
Furthermore, Chrysochou points out that Coinbase users do not own their private keys and that sluggish email support and restricted privacy can throw off some users. However, these are minor disadvantages compared to the long list of advantages, and it’s simple to understand why Coinbase has been the crypto exchange of preference for so many users.
Binance, yet another extremely successful crypto trading platform, has only been operating for three years but has still taken the crypto industry by storm.
Binance, based in Hong Kong, is a global cryptocurrency exchange that funds over 200 separate cryptocurrencies. The website is very user-friendly and straightforward, enabling users to choose between a simplified and advanced edition while their crypto trading careers develop.
Although Binance is convenient for new cryptocurrency traders, it could be better for crypto day traders – very low fees, powerful charting software, and an intuitive smartphone app make for quick and easy cryptocurrency trading. It’s easy to see how Binance has developed to become one of the world’s biggest cryptocurrency exchanges.
Binance may not encourage you to trade US dollars for cryptocurrencies, although it does take credit and debit cards. There is a US-based portal for US customers, although it has fewer options than the leading platform. Furthermore, Binance has been the target of cyberattacks in the past, the most recent of which happened in 2019 – but the venue does have an insurance policy to mitigate potential damages. Binance, on the other side, is a secure exchange site with a range of practical applications for consumers seeking to trade in multiple digital currencies on the blockchain.
For a good cause, you may not think about Robinhood when it comes to cryptocurrency trading. Robinhood is a stock-first app that started offering cryptocurrency trading in 2018. The mobile app is famous for commission-free stock trading – and for banning users from selling GameStop (ticker: GME) and other “meme stocks” in recent months. Since then, Robinhood has gradually expanded its crypto offerings, enabling users in select states to exchange a limited number of cryptocurrencies, like Dogecoin.
Although this is a tiny pool to deal in, it provides many options for users who are only getting started with cryptocurrency. Robinhood’s mobile-first strategy has culminated in an exceptionally user-friendly app, and the absence of trading costs ensures that the entry barriers are exceedingly minimal.
“Robinhood uses cold wallets to store the cryptos,” says Edmund McCormack, creator and CEO of DChained, “meaning that the rest of users’ funds are kept securely offline.” “However, they are underwritten by Lloyd’s to cover any cybersecurity breaches in the case that a hack happens.”
You should be aware that Robinhood does not enable users to move their coins to a different wallet. In reality, Robinhood is purely a trading app and does not encourage users to use their cash for payments. Robinhood lacks the bells and whistles of its larger, more well-known counterparts, and experienced consumers will be best represented elsewhere. However, it includes many of the requisite functionality for a cryptocurrency beginner, and it could be the best crypto exchange for new traders to begin with.
Gemini was created in 2014 by the Winklevoss twins and has since developed itself as one of the most trusted brands in cryptocurrencies. Gemini’s two most significant assets were Bitcoin and Ethereum, but the exchange already supports 26 different coins, including Gemini dollars, a dollar-backed stable currency.
The cornerstone of Gemini is confidence, and the site was designed with regulatory enforcement in mind. Since Gemini is a fiduciary and the platform is FDIC insured, you would imagine that protection is a top priority for the company.
Gemini is noted for its security, with most of the exchange’s currency stored in cold storage and the platform never being compromised. Gemini still has “an exceedingly sensitive customer support division, normally getting back to email requests within a few hours,” according to McCormack.
“Gemini’s trading rates are a little higher than Coinbase Pro, but fewer than Coinbase itself,” according to McCormack. Fees are paid on a variable scale dependent on trading volume, allowing power traders to use the site more often while keeping one-time customers paying an above-average price.
The site is simple to use, but the mobile version isn’t as user-friendly as some of the competition’s, and you can’t finance your account with debit or credit cards. On the other hand, Trading through Gemini is an excellent option if your primary concern is the safety and protection of your cryptocurrencies.
Since its inception in 2011, Kraken has proved to be a reliable and stable cryptocurrency exchange.
Kraken’s coin range is lower than others, with just 56 coins eligible for trading, but it makes up for it with outstanding functionality that seasoned crypto traders adore. While it has some simple functionality for younger traders, Kraken’s Pro platform is where it shines. Power users will be attracted to sophisticated technologies, including margin investing and crypto futures, while set-it-and-forget users will enjoy the opportunity to stake their coins.
According to Kapil Rathi, CEO of CrossTower, Kraken has its own proprietary custody solution and does not depend on any third-party provider for protection. Rathi estimates that 95 percent of Kraken’s deposits are stored offline in air-gapped, geographically dispersed cold storage.
Kraken’s maker-taker price schedule is perplexing at best, as it often has consumers paying higher rates than they will anywhere unless they are regularly selling for at least 30 days. Kraken’s exchange has often been reported to go down during times of heavy uncertainty, as Rathi points out.
In 2018, the New York Attorney General’s office singled out Kraken for non-compliance problems. Apart from that, Kraken is one of the most developed and safe cryptocurrency exchanges, and it’s a perfect choice for those searching for advanced crypto features.