When you need to buy, sell, swap, gift, or invest in cryptos, a cryptocurrency exchange is where you go. As a crypto beginner, you’ve probably heard of names like Coinbase and Binance. These two make a lot of headlines in the news. But are they the best cryptocurrency trading platforms? Yes, for some categories, but not in all cases. Others are better in terms of security, decentralization, fees charged, and all of that.
This post wants to discuss 12 of the best platforms to trade cryptocurrency.
12 Best Cryptocurrency Exchange platforms
- Best for Beginners: Coinbase
- Best For Trading: Binance.US
- Best Decentralized Exchange: Bisq
- Best for Security: Crypto.com
- Best To Earn Interest: BlockFi
- Best For Altcoins: Uphold
- Best for Futures & Margin traders: Kraken
- Best for Bitcoin & Ethereum Traders: Gemini
- Best for large cryptocurrency options: Cex.io
- Best for new traders & Rookie: Robinhood
- Best for social trading: eToro
- Worthy Mention: BitcoinIRA.com (Good for trading from your IRA)
Coinbase:
If you want to start your journey into crypto trading, We advise you to use Coinbase. Coinbase is one of the finest cryptocurrency trading platforms for newbies to benefit. The cryptocurrency trade platform is one of the biggest and considerably reliable crypto exchange companies in the U.S., with a precise onboarding procedure that eases users into trading. In addition, its interface makes for a seamless trading experience.
Furthermore, it has one of the considerable generous payment systems across all the trading platforms. Furthermore, it has one of the considerable generous payment systems across all the trading platforms. Coinbase also offers more than 100 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dogecoins, and Ripple. The medium also offers multiple investment options for individual and institutional clients.
Coinbase uses two-factor authentication to protect crypto holdings on the platform. This is one of the reasons why you should pick Coinbase as your cryptocurrency exchange platform.
The platform reaches a wide and free type of educational materials. Users are urged to employ these resources via the Coinbase Earn program, which guides how to trade specific cryptocurrencies and rewards users with complimentary crypto.
The PROs of using Coinbase include:
- It has a broad capacity for cryptocurrencies.
- It provides its users with educational material and analysis instruments.
- It has a clean design that gives a user-friendly interface for a straightforward buy procedure.
- Coinbase has strong user reviews and top-notch security ratings.
Even with all the great features one can enjoy from the use of Coinbase as a cryptocurrency exchange platform, there are some things you should be looking out for before using the platform for dealings.
The Cons of Coinbase
- Coinbase has an intricate payment structure and demands high payments during an exchange, except if you are using CryptoPro.
- It also doesn’t let you temporarily borrow funds to trade crypto assets, nor does it offer futures.
- Coinbase is likewise slow in accepting new cryptocurrencies. That means if a new coin gets listed, it may take a while before you get a chance to start trading it on Coinbase.
Binance.US:
If you are looking for a good trading platform for cryptocurrency, Binance should be topping your list. Binance is the world’s largest cryptocurrency exchange by trading volume, and its domestic partner, Binance.US, offers many of its parent company’s benefits.
Binance offers its users a broad range of cryptocurrencies open for trading. These coins are bought in U.S. dollars and can be saved in the conversion fees. It is also the best platform to buy cryptocurrency.
Also, Binance.US equips its users with advanced charting and data graphs that show the changes in the demand for sales and buying of different coins.
Again, Binance.US comes with a lower fee for spot and futures trading. You don’t have to spend much to start trading, as Binance doesn’t charge much.
Lastly, Binanc.US has one of the most powerful cybersecurity and user reviews, making it hard for people to hack and steal people’s investments.
The PROs of using Binance.US:
- High-speed trade performance.
- A vast range of cryptocurrencies for trading.
- It has a reasonable trade and conversion fee.
- It has a good charting and information graph.
Before you start trading on Binance.US, there are some things you should also look out for on the platform.
Binance US Cons:
- Binance.US has fewer crypto coin options than its international parent company, Binance.
- It also cannot be operated in all locations in the U.S., including areas like Texas and New York.
- The platform does not provide educational tutorials for newcomers looking to start their journey into crypto trading.
- Its coin offerings are restricted compared to Binance and other major exchanges offering four to seven times as many coins.
- It also has a limited customer support system.
Bisq:
Bisq is a decentralized cryptocurrency exchange platform. The platform’s uniqueness is that you don’t require a third party to carry out cryptocurrency transactions. Also, you don’t need to provide your personal information to trade. It also supports a broad range of cryptocurrencies on its platform for exchange.
The platform is created on open-source software. This means its design is publicly available, and the project is funded by personal savings and donations from its community of users. It also has a wide variety of payment options for its users.
Bisq also provides its users with strong security features like the multi-signature and security deposit system. This helps to provide safety for users during cryptocurrency exchange, thereby protecting their funds during the trading procedure.
The PROs of using Bisq:
- It has a large range of payment methods.
- Its supports trades with a broad selection of coins and traditional currency.
- Bisq verification is fast.
- Instant approval on the platform.
The CONs of using this platform is that:
- The mobile version of Bisq only gives notification and cannot be used to carry out an exchange except the webpage.
- The platform only supports the trading of Bitcoins and BSQ.
- It can easily be hacked.
Crypto.com:
Safety is a big deal to look out for before going into cryptocurrency trading or exchange. Crypto.com provides robust security and protection for your crypto assets. The platform is ranked first in cybersecurity ranking and certification.
What makes the platform stand out from the rest are its trading security techniques, which include offline cold storage for all crypto, regulated custodian bank accounts for traditional currency, and standard software peer-review.
In addition, the exchange adopts a multi-factor authentication, including password, biometric, email, phone, and authenticator verification to ensure safety within the platform.
Another thing is how the platform carries out simulated cyberattacks to evaluate its security system and make changes to protect its funds.
Lastly, crypto.com comes with another feature which is the non-custodial Defi wallet. This idea is to help users send crypto at the best speed and get gains from tokens.
The PROs of using Crypto.com include:
- Crypto.com as a good security infrastructure.
- Limited margin trading is currently available for users.
- Crypto.com charges very low, especially if your account is funded with a cash transfer.
- It pays weekly interest on saved cryptocurrencies.
The CONs of using crypto.com include:
- You spend a lot on credit and debit purchases as crypto.com is expensive to use.
- The platform does not provide certain services in some states in the U.S.
- There is no form of crypto-to-crypto trading on the platform.
- It has limited customer support.
BlockFI:
BlockFi is one of the best cryptocurrency platforms as it allows its users to gain interest in their crypto trading. The platform offers up to 9.5% APY as monthly compounding interest to users who keep their crypto assets in the account.
It also provides n c its users with loans and uses existing bitcoins as collateral. BlocFi also collects exchange costs and withdrawal fees only and doesn’t collect transaction fees for trading on its exchange.
The platform also makes use of two-factor authentication to protect users’ addresses from theft and keep data protected.
The PROs of using BlockFi:
- You don’t pay any commission or Monthly account fees.
- The platform is U.S.-based and institutionally backed.
- The platform gives monthly interest on all cryptocurrencies owned by users.
The CONs of using BlockFi:
- The interest account has limited free withdrawals.
- Available products vary widely from state to state.
- It doesn’t support many tokens and coins.
Uphold:
Uphold is also a cryptocurrency exchange platform that allows various types of assets to be traded. Uphold is a trading platform that allows customers to move seamlessly from one asset class to the next. This means you may trade everything from gold to Bitcoin and fractional stock shares.
Limited trade orders are also possible with Uphold. This allows you to buy or sell a certain asset at a specific price.
You can also specify how long the limit order should be available for and cancel it at any moment.
You can also invest on a regular basis on the platform, purchasing pre-selected assets.
The PROs of using Uphold include:
- The pricing structure is simple and transparent.
- Many crypto tokens and even certain equities, including well-known ones like XRP, are available.
- They have Both desktop and mobile apps for their users to use.
The CONs of using Uphold:
- It is not easy to use, and people face a lot of challenges when using the platform.
- The platform has a bad customer service relationship, and questions take time to be answered.
Kraken:
Kraken is one of the best platforms for buying and exchanging cryptocurrencies. The site is also well-known for margin trading and futures trading. You can borrow up to five times your account balance to trade crypto assets with a margin account. Futures trading for bitcoin, Ethereum, Litecoin, bitcoin cash, and ripple allows you to buy or sell an asset at a fixed price on a future date.
It also offers expert advice, one-on-one consultations, and account management assistance to its users.
The PROs of using Kraken:
- Kraken is one of the longest-running crypto exchange platforms.
- The platform is well secured and can be trusted.
- It is a very large variety of crypto and tokens to be used for exchange.
The CONs of using Kraken:
- It is very difficult to use.
- There are also issues with two-factor authentication.
- There also have poor customer service relation.
- The future mobile platform is not available in the U.S.
Gemini:
Gemini, like Coinbase, is a platform that will be beneficial to newcomers. Its convenience and ease of use come at a greater cost, which may be worth it as you learn the ropes before moving on to its lower-cost spot trading options.
Gemini Wallet, Gemini Earn, Gemini Clearing (brokerage services for off-exchange crypto deals between parties), Gemini Custody, Gemini Pay, and Gemini Dollar are among the platform’s prominent features (a digital asset-backed by U.S. dollars).
The PROs of using this Cryptocurrency trading platform include:
- The platform comes with a simple and easy-to-use interface making it easy for users to navigate.
- The platform is available in all states in the U.S., including New York, which is difficult to see on other platforms.
The CONs of using this Cryptocurrency trading platform include:
- Convoluted fee structure when not spot trading.
- Gemini also has a limited number of cryptocurrencies on its platform.
- Gemini has multiple fee schedules for different accounts and account actions.
Cex.io
It is one of the biggest sites for buying cryptocurrencies because it has one of the largest cryptocurrency options. It allows a variety of deposit methods and supports a variety of digital assets. CEX.IO has established a global crypto exchange ecosystem that serves over four million customers and is available in 99 percent of nations and 48 U.S. states.
It’s a great way for both experienced users and newbies to get started with cryptocurrency buying and trading.
It’s also a two-factor authentication system that protects users’ platform assets. You may also use the exchange to buy bitcoin and over 80 other cryptocurrencies.
The PROs of using Cex.io include:
- It is easy to use, especially for beginners who are just starting their cryptocurrency exchange journey.
- The platform is safe to use as it has a level two DSS certificate.
- The cryptocurrency exchange platform allows its users to buy and sell different cryptos with any given currency.
- The exchange supports 100+ cryptocurrencies, including Bitcoin, Ethereum, and other popular assets.
The CONs of using Cex.io include:
- Transaction on both debit and credit cards can be expensive.
- Lower liquidity than other leading global exchanges.
- The number of products and services may overwhelm beginners
Robinhood:
If you are a newcomer or a beginner in cryptocurrency exchange, I advise you to start with Robinhood. The platform is one of the best platforms to buy cryptocurrency. The platform has created a strong brand for itself and also gives a clean design and user experience that focuses on the basics.
It has a cash management service and recurring investment feature that’s used to attract new users to the platform.
The PROS of using Robinhood:
- It is regulated by the security and exchange commission.
- Robinhood has a low fee zero balance requirement to open an account.
- Low trading costs for all users.
- Good cash management and recurring investment features.
The CONs of using Robinhood:
- It lacks educational materials and research tools for its users.
- Its cryptocurrency selection is on the shorter side.
- It doesn’t have a mutual fund and forex trading.
- It lacks transparency around payment for order flow.
- Robinhood also has a limited investment option for its users.
- Robinhood has no phone option for customer service.
eToro:
eToro is another cryptocurrency exchange platform where you can buy and sell cryptocurrencies. The company has been around for a while, starting its market in the U.K. and further into Europe. It is now available in some parts of the U.S.
eToro offers its users a $10 bonus on deposit and trades up to $100 in crypto assets. The platform has a good interface that makes it easy for new users to navigate.
The PROs of using eToro include:
- The platform is ideal for social trading.
- It has a large range of cryptocurrencies.
- You don’t need much to start trading on the platform.
- It Is user-friendly and easy to navigate.
The CONs of using eToro include:
- The platform is not available in some areas in the U.S. It is only supported in 41 states.
- Unlike other exchange platforms, it doesn’t have a wide range of tokens.
- It has a limited option used in the U.S.
- The withdrawal fee is not impressive.
BitcoinIRA:
BitcoinIRA is another cryptocurrency exchange platform. On this platform, users are allowed to trade their cryptocurrencies from their IRA. The platform serves as a wallet and can also be used to trade. The platform also collects taxes on your profit after trading.
The platform also provides advance charts, set up, and custom price alerts on their mobile app.
The PROs of using Bitcoin. IRA:
- The platform is secured and saved to use.
- It allows its user to invest their cryptocurrency inside IRA.
- The platform gives profit on investment inside the IRA.
- The platform is U.S.-regulated.
- Low-cost gold investment
The CONs of using Bitcoin. IRA:
- The platform charges a high fee.
- Unlike other exchange platforms, it doesn’t have a wide range of tokens.
- High Minimums.
- You can’t buy with crypto on the platform.
- Limited liquidity.
Methodology
Back in school, when we conduct research, we’re expected to state the methodology to convince the reader we haven’t conjured up the facts and figures.
We owe it to you to explain how we arrived at this list in a similar vein. Admittedly, there are many cryptocurrency exchange platforms out in the world today. So, to fish out for the best cryptocurrency trading platform, we had to analyze several data points for all crypto exchanges known to us. Amongst the variables analyzed include:
- Types of cryptocurrencies on offer
- Costs required to access an exchange
- The dynamism of trading opportunities (spot trading, futures, etc.)
- Prevailing cybersecurity measures
- Availability of educational resources
- Availability of sign-up bonuses and other enticing offers
- Traders’ reviews – i.e., what are traders saying about the cryptocurrency exchange
The careful analyses of these variables helped us separate the wheat from the chaff. And that’s how we arrived at this list of the best cryptocurrency trading platform.
Determining the rankings of these exchanges was fairly easy. We simply figured out what each exchange is best for and then correlated that information with what we believe different cryptocurrency investors are after.
For example, Coinbase is great for beginners. When you consider the number of crypto beginners and wannabe investors that jump on the crypto bandwagon daily, it makes sense to keep the best cryptocurrency exchange for beginners as the first on the list. Following closely behind is Binance, which is great for all forms of crypto trading in general. Since crypto exchanges are generally designed for traders, the best platform for trading definitely deserves a close-to-the-top ranking.
Frequently Asked Questions about Crypto exchange platforms:
- What does it mean to trade cryptos?
Crypto trading refers to the swapping of cryptocurrencies for other financial assets and vice versa. For example, if you have USD (United States Dollars), and you need Bitcoin, the act of offering your USD for BTC is called cryptocurrency trading. In short, cryptocurrency trading refers to the buying and selling of cryptos.
Mind you; crypto trading isn’t always a crypto-Fiat kind of swap every time. Most times, it can be a swap of crypto-for-crypto. I.e., swapping (trading) Ethereum (ETH) for Cardano (ADA) or Bitcoin (BTC) for Ethereum (ETH).
- What is a crypto exchange?
So, technically, a cryptocurrency exchange is where you do everything described in #1 above.
An exchange, or a trading platform, refers to a place where you can buy, sell, trade, gift, or invest in all forms of cryptocurrency – Bitcoin, Ethereum, Litecoin, Dogecoin, etc.
Without an exchange, it would be tough to trade cryptocurrencies. Every time you need particular crypto, you would have to search for someone who has that crypto and who’s willing to part with it in exchange for the crypto (of fiat) you have to offer.
In fact, the situation would be similar to what we had centuries ago with the “Barter” system, where people would search for those who had what they wanted and needed what they had.
Thanks to cryptocurrency exchanges, everyone can trade and deal in cryptos from the comfort of their homes.
- Cryptocurrency wallets vs. exchanges: what are the differences
Crypto wallets are just like your regular wallets, except that digital currencies rather than fiat currencies are involved in this case. Simply put, a cryptocurrency wallet is a digital tool used to hold and manage cryptocurrencies.
Typically, a wallet can only hold one type of crypto. That’s why you hear things like Bitcoin wallet, Ethereum wallet, Ripple wallet, etc.
In a nutshell, if exchanges are where you go to trade your digital coins, think of wallets as the digital safe for your coins.
- How do I get a crypto wallet?
Basically, there are two kinds of crypto wallets – software wallets and hardware wallets.
Software wallets refer to those digital wallet addresses managed over the internet. Generally speaking, there are three types of software wallets, these are:
- Web-based wallet (like the one you get when you buy coins from an exchange platform)
- Mobile wallet
- Desktop wallet
The web-based wallet is a soft wallet provided mostly by cryptocurrency exchange platforms. In this case, the wallet is hosted by the platform, and so are the wallet security keys. In short, web-based wallets are generally managed by the issuing provider. The downside of this type of wallet is that your crypto portfolio could be compromised if the exchange ever gets hacked.
Mobile wallet refers to wallets managed with smartphone apps. Unlike web-based wallets, this type of wallet isn’t hosted anywhere. Instead, it’s generated with your smartphone using a mobile app, which you can download on the App Store or Play Store. A very good example of a mobile-generated crypto wallet is Trust Wallet. People love mobile wallets because they’re faster to create.
Desktop wallets are wallets for PC users. Unlike mobile wallets, the software for this is downloaded as a desktop application. Common examples include MetaMask, Exodus, etc.
A hardware wallet is a type of wallet that secures your coins through a physical offline device. Usually, this device can be a computer and a USB connection. It’s with this setup that you store your coins.
It should be noted that the safest wallets are hardware wallets. With them, you get to keep your wallets offline, away from the reach of hackers. Also, you get to manage your security keys yourself – not leaving it in the hands of a hackable exchange platform as in the case with soft wallets.
- How do cryptocurrency exchanges work, and how do they differ from one another?
Basically, almost all exchanges work the same way.
You come in with your crypto (from another digital wallet) or fiat, then request to swap that for another crypto. At the completion of your trade, you can choose to keep your newly-acquired cryptos in the wallet provided by the exchange, or you can move to your external digital wallet.
- Do I need to report my trading to the IRS?
If you’re a taxpayer and you trade on a cryptocurrency exchange, you’re expected to report your activities to the IRS.
The IRS considers cryptos in the same league as stocks. As such, they tax them where applicable. If you simply buy cryptos to ‘HODL,’ you may not need to report to the IRS.
However, once you begin trading it or using cryptos for purchases, the IRS expects you to report it.