Crypto
Crypto investors have many options when it comes to exchanges, but for the most part, there are many reasons why sticking with the largest exchanges out there is the best approach. Large exchanges offer a wide variety of advantages over smaller, lesser-known exchanges.
These advantages range from product availability, security, customer service, trading tools, not to mention the availability of staking and other crypto-based products/services. However, among the largest crypto exchanges out there, which names should be considered the best, and why?
Conversely, what are some of the specific key disadvantages with each individual top crypto exchange? To answer these questions, we have looked at major exchanges, assessed them on a wide variety of pertinent criteria, and have determined these are the five best currently out there, although one major exchange in particular stands out against the crowd.
For crypto investors of all stripes, ranging from beginner to pro, there is a good reason why Binance.com has become the top cryptocurrency exchange in the world by volume and user base boasting over 280M users. Binance stands out in most, if not all, relevant categories, including trading functionality, cryptocurrency trading options, fee structure, customer service, and security.
Where Binance.com particularly stands out is with its trading fee structure. Standard trading fees for both makers and takers is just 0.1%. Better yet, for those holding BNB, Binance's native token, trading fees are 25% less. High-volume traders who participate in Binance's VIP program receive even greater trading fee discounts.
Binance.com also ranks highly, when it comes to crypto educational resources. Binance Academy is a valuable educational tool, for crypto investors of all levels of experience. Other key pros with the world's leading cryptocurrency exchange by volume include the platform's improved user-friendly interface, availability of advanced trading tools, as well as Bitcoin and a large number of cryptocurrencies available for trading (500+).
The one key negative with Binance.com is the site's lack of a phone and email-based customer service support. Users, however, can utilize Binance's 24/7 live chat feature to resolve any user issues.
With low fees, advanced trading features, plus extensive educational tools, Binance.com is an all-around safe cryptocurrency exchange choice for both beginners and experienced traders.
Founded by the Winklevoss twins in 2014, U.S.-based Gemini has become a cryptocurrency exchange standout, mainly for the platform's high security standards. If security is a high priority, Gemini may be a great choice, even if the platform is lacking in areas like educational resources and the number of cryptocurrencies available for trading.
Again, Gemini's security infrastructure may be the platform's biggest strength. Going above and beyond with account security, Gemini's platform features are secured with not just two-factor authentication, but with external security keys as well. Customer cash positions are also FDIC-insured.
Gemini takes customer asset safety even further, by utilizing cold storage for most assets under custody. If you are a high-volume cryptocurrency trader, Gemini may also be appealing, due to the company's volume-based fee structure. Maker fees are as low as zero, with taker fees coming in as low as 0.03%.
While Gemini may have security and trade fee features that appeal to large-scale cryptocurrency traders, more inexperienced traders may not like the platform's lack of educational tools.
Also, retail traders accustomed to the availability of a wide variety of cryptos to trade may not like Gemini's relatively limited trading menu. Outside of Bitcoin and major Altcoins like Ethereum, your trading options are limited on Gemini.
Large scale and institutional-level investors/traders may find Gemini to be a strong choice for their trading needs, but other categories of crypto investors may want to look elsewhere.
Founded in 2012, Coinbase was one of the first mainstream cryptocurrency exchanges. With this, it's not surprising that this "first mover's advantage" has translated into the platform being one of the most widely used out there. Coinbase has over 100 million active users, who have stayed on as customers thanks to many strengths of this platform.
Hands down, Coinbase is a solid choice for retail traders, especially those just starting out on their crypto journey. The platform features an easy-to-use interface and offers extensive educational resources. Supporting around 528 trading pairs, Coinbase also sports an extensive menu of trading options.
To top it all off, Coinbase has a reasonable fee structure, for a retail-focused cryptocurrency exchange. Maker fees range from 0% to 0.4%, while taker fees are in the 0.05% to 0.6% range.
Alongside the positives with Coinbase are a few key negatives. For one, Coinbase does not support crypto options or margin trading, features experienced crypto traders may expect from a platform. In addition, Coinbase's customer service is satisfactory but leaves a lot to be desired.
Also, it should be noted that Coinbase was recently the victim of a widespread customer data breach. While the company has taken considerable action to resolve this issue and prevent similar such events from happening in the future, it does cast doubt about the robustness of Coinbase's security relative to competitors.
If you are new to crypto investing or trading, Coinbase offers user-friendly features such as educational tools. However, other exchanges also provide similar resources. Additionally, following a recent security breach, some users may want to explore alternative platforms for their asset safety.
Coinbase may be known as an "early-mover" in crypto, but Kraken was founded even earlier-in 2011-making it one of the oldest mainstream cryptocurrency exchange platforms out there. As an established, mainstream exchange, Kraken may be another solid choice for those just starting out in crypto, but you may want to go through the following pros and cons before opening an account.
Kraken may have just a tenth of the userbase of its competitor Coinbase, but the platform nonetheless offers similarly low trading fees, for both small and large-scale cryptocurrency traders. Maker fees range from 0%-0.25%, while taker fees are in the 0.1% to 0.4% range.
Over 300 cryptocurrencies are available for trading on Kraken, giving the platform high marks in this area. Inexperienced traders may appreciate the basic platform's minimum deposit of just $10, not to mention Kraken's educational tools and other beginner-friendly features.
That said, via the company's Kraken Pro platform, more experienced traders can obtain access to more sophisticated trading features and tools, for zero additional cost.
Like Coinbase, Kraken is lacking when it comes to cryptocurrency derivatives like options. In addition, the fact that Kraken is not available in all 50 states could mean the platform is not even an option for you. Even for those living in states where Kraken is allowed to operate, the fact Kraken is restricted in certain states could be viewed as a red flag.
Depending on which U.S. state you live in, Kraken may be another worthwhile option, especially for inexperienced cryptocurrency investors/traders. However, like Coinbase, when you take account the disadvantages, and with other retail-facing platforms offering what this platform lacks, there may be little reason to open an account with Kraken and not with another crypto exchange.
Crypto.com is based in Singapore, but the company and its eponymous cryptocurrency exchange have become very well-known throughout the United States. Yet while the company spent considerable sums on marketing to build up its more than 100 million total global user base, there are more substantive reasons why it remains one of the most popular platforms out there.
Crypto.com may be yet another popular crypto trading platform, but there are some major positives with this exchange that many of its mainstream competitors lack. With this site, you get both reasonable trading fees and wide product access.
Maker fees range from 0% to 0.25%, while taker fees are in the 0.05% to 0.5% range. There are over 400 cryptocurrencies available for trading. However, beyond these positives, is a key advantage over Kraken and Coinbase: the availability of cryptocurrency options trading.
Alongside many positives, there is one key negative with Crypto.com: there is no cold wallet feature on this platform. For those prioritizing security features, this may be a concern. Although Crypto.com operates in the United States and many other major jurisdictions, the platforms operate in far fewer countries than its competitors.
Crypto.com offers most of the positives available on sites like Coinbase and Kraken, with Bitcoin options trading also available to boot. Crypto.com is also customer-friendly, in the sense that the company's crypto-backed debit card offering features some of the best rewards and incentives in the industry.
Crypto Exchanges: What You Should Know (Without the Confusing Jargon)
At its core, a crypto exchange is basically a digital marketplace where you can buy cryptocurrency. You use either real-world money (aka fiat currency like U.S. dollars) or another type of crypto to do it.
Most people start with what's called a centralized exchange. These are run by actual companies that help users buy, sell, and trade crypto. If you're just starting out or you're looking to turn cash into crypto, this type of exchange is probably where you'll begin.
There's also something called a decentralized exchange, which doesn't rely on a company to handle transactions. Instead, it runs on blockchain code and lets users trade directly with one another. It usually has lower fees, but it's definitely more tech-heavy. Plus, if you don't already have crypto, your options will be limited on these platforms.
First, figure out which coins you're interested in. If you're only looking to buy something like Bitcoin or Ethereum, you can probably stick with an online broker that offers crypto trading. The bonus? You can keep all your investments-stocks and crypto-in one place.
But if you're curious about more niche or obscure coins, you'll need to check which platforms actually support them. Dedicated crypto exchanges usually offer a much wider range of coins and trading options than traditional brokers.
Also, think about where you'll store your crypto. Most exchanges let you keep your assets on their platform, but not all of them support transfers to personal crypto wallets. If having control over your wallet matters to you, make sure your chosen exchange supports external storage.
Don't forget to check out fees, the overall user experience, and whether the platform has resources to help beginners learn the ropes.
Some exchanges offer extra perks-like letting you earn rewards by lending out your crypto. Others can hold your assets for you if you don't want to deal with setting up your own wallet just yet. Think of it like keeping money in the bank vs. carrying it in your pocket.
It really depends on the platform. If you only care about the big names-Bitcoin, Ethereum, Litecoin-you'll probably be fine with a traditional broker. But if you want access to smaller or newer coins, pure crypto exchanges are the way to go. They usually have the biggest selection.
Crypto comes with more risk than regular investing. Unlike traditional investments (which are protected by things like SIPC insurance), crypto doesn't have those safety nets. If your exchange crashes or gets hacked, your money could disappear.
Also, storing crypto on an exchange makes you more vulnerable to attacks. That's why some people choose to move their assets to a personal wallet once they're done trading.
Not at all! Most exchanges don't require a minimum balance to open an account. You can sign up, explore the platform, and decide later if you want to buy anything. Some exchanges even let you start with as little as $1.
There are a few key differences:
Disclaimer:The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the Website's content as such. Midday does not recommend that you buy, sell, or hold any cryptocurrency. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites. Cryptocurrency products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for losses resulting from such transactions.
