Cryptocurrencies are the latest craze sweeping the financial world, with Bitcoin (ticker: BTC) dominating the headlines while Dogecoin (DOGE) …
Cryptocurrencies are the latest craze sweeping the financial world, with Bitcoin (ticker: BTC) dominating the headlines while Dogecoin (DOGE) is nailing the punchlines.
As the number of cryptocurrencies on the market continues to increase, investors have more options than ever before to trade their hard-earned money for decentralized digital money. But how do you go about trading your favorite cryptocurrency?
The internet is full of horror stories of hackers defrauding traders with their earnings from poorly protected cryptocurrency exchanges, which makes it all the more essential to carefully choose a secure crypto trading platform beforehand. to make your investment. With that said, which of the many cryptocurrency exchanges is the best choice for you?
There are many factors that will influence your decision: security measures, ease of use, trading fees, and the number of coins available for trading all play a role in helping you determine the best crypto exchange for you. To help you find the cryptocurrency trading platform that meets your needs, here are five options to choose from that will suit a variety of cryptocurrency investors:
– Robin Hood
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It’s no surprise that Coinbase, one of the world’s most popular crypto exchanges, tops this list. Crypto traders have been using Coinbase since 2012, and the crypto exchange only gets better with age.
A user-friendly interface, a simple onboarding process, and free $ 5 in Bitcoin just for opening an account make Coinbase a great place for new traders to start. Daniel R. Hill, a certified financial planner and president of Hill Wealth Strategies in Richmond, Virginia, says Coinbase is the best site for newbies because you are “able to see all the coins in one place, (it has one). simple user interface and (you) can easily buy a variety of crypto.
Advanced users will appreciate Coinbase Pro, which provides more powerful tools for advanced users who want to get started in cryptocurrency trading.
With hundreds of digital currencies and altcoins supported on Coinbase, users have a good range of options to choose from, although the list is by no means exhaustive. Additionally, users will want to watch out for the high trading fees added to their transactions, being part of a labyrinthine fee structure on the Coinbase site.
Coinbase is more expensive than other cryptocurrency trading sites and only offers a few payment options, Hill says.
Another popular crypto trading site, Binance has only been around for four years, but quickly took the crypto market by storm.
Based in Hong Kong, Binance is an international exchange that supports over 500 different cryptocurrencies. The website is very intuitive and straightforward, allowing users to switch between a basic and advanced version of the site at will as they progress in their crypto trading career. While new cryptocurrency traders will find Binance simple to use, ultimately it might be better for crypto day traders – low trading fees, powerful charting tools, and an easy-to-use mobile app make it possible. fast and easy cryptocurrency trading. With all of these strong features, it’s not hard to see why Binance has become one of the largest cryptocurrency exchanges in the world.
The sheer volume of cryptocurrencies available is why Hill says Binance may not be best suited for beginners. “A lot of times when investors start out and get to grips with the market, less is more,” he says. “That being said, Binance is the best choice for those familiar with cryptocurrency lingo and investing options.”
Note that Binance does not allow you to exchange US dollars for cryptocurrency, although it does accept credit and debit cards – there is a US site for US users, but it offers more limited options. as the main site. Additionally, Binance has been hit by cyber attacks in the past, the most recent in 2019 – although the site has an insurance fund to cover losses. That said, Binance is a secure trading platform that offers several powerful tools for users who want to invest in different digital currencies on the blockchain.
[Read: The History of Bitcoin.]
You might not think of Robinhood when you think of cryptocurrency trading – and for good reason. The mobile app known for commission-free stock trading – and for banning users from selling GameStop Corp. (GME) and other “memes stocks” earlier this year – is a priority app on stocks, but in 2018 Robinhood started rolling out cryptocurrency trading. also. Over the following years, the company slowly developed the crypto side of its app, allowing users in some states to trade just seven cryptocurrencies, including Dogecoin.
While this is a small group to work from, it is a good beginner selection for users who are just starting their crypto journeys. With the business mindset being mobile-centric, Robinhood has created an incredibly easy-to-use app, and the absence of trading fees means barriers to entry are extremely low. On the security front, “Robinhood uses cold wallets to store your cryptos, which means the majority of users’ funds are kept securely offline,” says Edmund McCormack, Founder and CEO of Dchained. “However, in the event that a hack does occur, they are underwritten by Lloyd’s to cover any cybersecurity breach.”
You should know that Robinhood does not allow users to withdraw their coins and put them in a wallet of their choice. In fact, Robinhood does not allow users to use their currency for payments – it is strictly a trading app. Robinhood lacks the bells and whistles of its larger, more established competition, and advanced users would be better served elsewhere. But it has all the essentials for a cryptocurrency recruit, and it just might be the best crypto exchange for new traders.
Founded by the Winklevoss twins in 2014, Gemini has established itself as one of the most trusted names in crypto. Gemini’s two stars were Bitcoin and Ethereum (ETH), but today the exchange allows users to trade over 40 different cryptocurrencies on its site, including Bitcoin Cash and Gemini dollars, a stablecoin backed by the American dollar. Gemini is built on legitimacy and the site was founded with regulatory compliance as a top priority. The company is a fiduciary and the site is insured by Federal Deposit Insurance Corp. As you can imagine, this means that security is paramount for Gemini.
Gemini is known for its security, with most of the coins on the exchange being kept in a cold store. Additionally, according to McCormack, Gemini has “an extremely responsive customer service branch, which typically responds to email inquiries within hours.”
McCormack notes that “Gemini’s trading fees are a bit higher than Coinbase Pro but lower than Coinbase itself.” Fees are billed on a sliding scale based on the frequency of transactions, encouraging power users to use the platform more often, but leaving one-time buyers to pay above-average fees. The site itself is straightforward, although the mobile app isn’t as intuitive as some competitors, and the site doesn’t accept debit or credit card payments to fund your transactions. That said, if your primary concern is the safety and security of your crypto, trading through Gemini is a great choice.
[READ: What Are Altcoins and Should You Invest In Them?]
Kraken has proven to be a reliable and secure crypto exchange since its founding in 2011.
With 90 coins available for exchange on the site, Kraken’s selection is smaller than others, but it makes up for that with some great features that experienced crypto traders love. While the site offers basic functionality for new traders, Kraken’s Pro site is where it really shines. Advanced tools like margin trading and crypto futures are sure to appeal to power users, while the ability to stake your coins will appeal to set-it and forget-it users. When it comes to security measures, Kraken has its own proprietary in-house custody solution and is not dependent on any third-party services, according to a Kraken spokesperson. In fact, the company claims that 95% of all deposits on Kraken are held in cold storage offline, separated by airspace and distributed geographically. The only time assets are moved online is when you trade them in or remove them from the platform.
Kraken’s maker-taker fee schedule system is confusing at best, and it often lets users hold the bag for higher fees than they would find elsewhere, unless they are actively trading for a period of time. 30 days. Also, as CrossTower CEO Kapil Rathi points out, the Kraken exchange is known to come out during times of high volatility. Kraken was recognized by the New York Attorney General’s Office in 2018 for compliance concerns. That aside, Kraken is one of the oldest and most secure exchanges available, and it’s a great choice for anyone looking for advanced crypto features.
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The 5 best cryptocurrency trading sites originally appeared on usnews.com
Update 9/27/21: This story was posted at an earlier date and has been updated with new information.