Did you know that over 100 million people in the world are now using cryptocurrencies? More and more people are jumping on the cryptocurrency bandwagon, with some people believing that a cryptocurrency like bitcoin could one day become the global currency. You may have considered buying yourself but do not know where to start. Like the stock market, crypto has exchanges where you can buy and sell cryptocurrencies. You have probably asked yourself, where do you go? What is the best cryptocurrency exchange?
Which one is the easiest one to get started on, so you do not miss out? The options below will get you on the path to the world of crypto.
Coinbase
This is arguably the most popular crypto exchange of the bunch, with an initial public value of nearly $100 billion. And, for a good reason.
This is a friendly app for beginners, allowing both to buy and sell crypto available to users. It also has tutorials that give you an elementary introduction to what cryptocurrency even is.
These features could give users a less intense but effective introduction to buying and selling crypto.
The main pros are the number of payment options and cryptocurrencies available on Coinbase. There are over 50 cryptocurrencies on this exchange and Coinbase, and they accept a connected bank account or a credit/debit card.
However, the main con of this exchange is the fees. They are considered pretty high fees for industry standards, especially when some exchanges do not charge fees at all.
Some of the fees include $25 for withdrawals, up to 2% for crypto conversions, and as high as a 4% transaction fee on credit cards.
The fees are certainly a big downside, but the brand recognition, user-friendliness, and the number of cryptocurrencies available makeup for it.
eToro
While not quite as popular as Coinbase, eToro is still one of the more popular crypto exchanges out there that can hold its own. But, it operates a little bit differently than Coinbase.
One nice pro if you are just starting is to provide you a demo trading account where you can use virtual funds. This allows you to practice exchanging crypto on the app before you use your real money.
This exchange supports 17 different coins, including bitcoin, ethereum, bitcoin cash, litecoin, and yes, even dogecoin.
Another big advantage of eToro is that they have minimal fees. They do not charge ANY fees for wire transfers, credit card transactions, or bank account transactions.
There are only fees on certain levels of crypto conversions, usually from around .005 units. The main fees are on purchases and trades, which can, unfortunately, be up to 5%.
A minor flaw of eToro could be that they offer a little less support than other apps on exchanging and have a higher expectation of you to know some investing concepts.
But still, eToro does give you one of the best exchanges to practice before taking real action, and the fees are friendly enough to consider it.
Robinhood
This is another solid exchange to buy crypto because, like eToro, the lack of fees is something to note. Robinhood does not charge ANY fees on transactions or exchanges on its app.
So, the question is, what is the catch? The catch is that Robinhood only accepts ACH transactions and gets a percentage of market maker exchanges on its app. This means that sometimes, what you pay for a coin could be higher than what the transaction fee percentage would be on another app.
But, it is a simple app to understand for beginners, with just seven cryptocurrencies on its platform. These include bitcoin, ethereum, dogecoin, and more.
Some more advanced investors may want more options, but being contained to these options could be best for beginners to allow you to focus on a specific coin or two while not having to worry about specific fees.
Binance
This exchange app is a little bit different than the ones above. Binance is the one you got for if you want all of the options in the world.
It has over 500 cryptocurrencies available for trade, including several altcoins. If you think a popular coin like bitcoin is too mainstream and peaked in value, you certainly have options on here that far fewer people have heard of that may still be on the rise.
As for fees, most are pretty reasonable on Binance. There are no bank account fees outside of the US, minimal purchase and trade fees at .1%, and an instant .5% buy and sell fee. The main fees are a $15 wire transfer and up to 4.5% on credit card transactions.
One main negative for Android users is that the mobile app seems to work much better for iPhones than Android ones, with the app’s rating being half on Android of what it is on iPhone.
What Is the Best Cryptocurrency Exchange?
This depends on your specific needs. If you want tutorial articles with larger customer support, it is probably Coinbase. If you want to practice exchanging with limited fees, it is eToro.
If you want to focus on a handful of cryptocurrencies and take a chance on market makers, it is Robinhood. And if you want as many options as possible at your disposal, it is Binance.
However, if you are willing to accept a little higher percentage of fees, Coinbase probably provides the best balance of all of the pros mentioned above and is the best place to exchange cryptocurrency.
Dive Into the World of Cryptocurrency
Now that you have been introduced to the world of exchanges and have seen our recommendation of the best cryptocurrency exchange, you are ready to get in on the action yourself.
Read here to learn more about cryptocurrency and how specific coins work.
