With so many crypto exchanges out there, it can be challenging to choose which one is best for you. In this guide, we’ll take an in-depth look at the pros and cons of some of the most popular exchanges available today.
Coinbase
Coinbase is a US-based exchange that is subject to US laws and regulations. The company has a good reputation, though no one is perfect. The level of customer service differs from time to time depending on the issue being addressed. Coinbase has many cryptocurrencies but not as many options as other exchanges.
Coinbase is a great place to start trading crypto, but there are some downsides. The most obvious downside is that Coinbase doesn’t accept as many payment methods as other exchanges. You can only use your bank account and PayPal for deposits — no credit cards allowed — and there are only a few countries where it’s available: the US, UK, Canada, Australia, and Singapore.
If you’re looking for an alternative way to buy cryptocurrencies with fiat currency (like USD), then Coinbase might not be for you. CoinBase does not support many alternative currencies compared to other exchanges, such as Kraken or FTX, which support hundreds of different coins and tokens available on their platforms. You may want to consider another platform if this is important for your needs.
Binance
Binance is a popular cryptocurrency exchange based out of Hong Kong and was launched in mid-2017. It has many cryptocurrencies to trade, including many of the most popular ones, like BTC and ETH.
While Binance has some drawbacks—like its lack of phone support—it also offers some benefits: it has low withdrawal fees for users who want to move their money away from their accounts and low trading fees for those who wish to make purchases on the platform.
Binance has a good reputation and currently sits in the top 10 of all cryptocurrency exchanges, according to CoinMarketCap. However, Binance has been hacked before (in March 2019), and it does not allow fiat currency trading or US customers. They also do not have an app or mobile capabilities, making them less accessible than some of your other exchange options.
FTX
FTX is a relatively new exchange but has already grown a widespread user base due to its low fees and various functionality. FTX offers some of the lowest fees in the industry with no deposit or withdrawal fees and greater fee discounts for FTX Token holders. FTX has a wide range of coins to trade on its platform, including leveraged tokens, over 300 cryptocurrencies, and many popular trading pairs like BTC USDT.
Another great benefit of FTX is its mobile app. The FTX app allows for cross-exchange integration so you can access all of your investments from a single platform. The FTX app allows you to trade, buy, sell, learn, and connect within the crypto space.
The FTX exchange does not allow margin trading or credit card purchases. The FTX platform is also not as available in the US as in other parts of the world due to regulations. That being said, the FTX ecosystem is constantly evolving and showing very promising growth for investors.
Kraken
Kraken is a US-based cryptocurrency exchange offering a wide range of cryptocurrencies to trade. The platform generally has low fees, good customer support, and a good reputation for security. Its user-friendly interface allows newbies to get up and running quickly.
Kraken is a popular brokerage exchange, but it has some drawbacks. For one thing, it charges higher transaction fees and fees for withdrawing funds to your bank account. Its trading volume is low compared to other exchanges, so when you place an order to buy or sell, the price may differ from what other people are paying. You also must go through several steps when depositing money into Kraken. Finally, because of its size, Kraken has limited customer support options—you won’t find live chat functionality here.
With so many crypto exchanges to choose from, it can be hard to decide which one is right for you. Compare your options and find an exchange that offers low fees and all the functionality you’ll need to make crypto investments and manage your portfolio.