Crypto exchange: What’s all the rage about?

Talk about Bitcoin and cryptocurrencies are everywhere. You have most likely heard a few things about blockchain technology. Over the past decade, interest in cryptocurrencies has constantly increased among individuals, institutions, and even countries. Some people have even made crypto their major payment method and have decided to do away with VISA, Mastercard, and the like. In fact, we now have online stores that accept crypto as a mode of payment. You have people mining crypto like Bitcoin, Ethereum, Litecoin, and more. Crypto has moved from being a fad, to being a way of doing business, allowing people to now buy Bitcoin dedicated servers to keep their mining secure and away from prying eyes.

Security in crypto exchanges

One of blockchain’s major selling points is enhanced security compared to traditional systems. However, numerous cases have come up of people getting scammed when trying to purchase Bitcoin.

An important step in choosing a reputable crypto exchange account is the associated safety. Crypto exchanges have been hacked in the past, resulting in users losing their money since most institutional clients of these crypto exchanges do not have any insurance.

See also: ServerMania’s 10Gbps dedicated servers for mining crypto

Online instructors from YouTube and other video training platforms or blogs suggest protecting yourself with 2FAs, avoiding reusing passwords, using multiple crypto wallets, auditing regularly, and more. But that is sometimes not enough to keep hackers out.

There are hundreds of crypto apps, with new ones popping up all the time with the same set of vulnerabilities. So, it is very important to conduct some due diligence before settling on one. Once you decide on the best crypto platform, you then have to decide which cryptocurrency to buy. Bitcoin is a favorite of most newbies who are trying to learn the ropes of the industry.

Some of the metrics we use to evaluate the best crypto exchanges include cybersecurity features, trading volumes, liquidity, ease of use, services rendered, and their presence in different geographical locations.

Wondering where to start? We wrote a comprehensive article on how to set up, buy and trade Bitcoin.

Starting out on cryptocurrency trading

As a beginner, figuring out where to trade and process transactions with your crypto assets can be a bit overwhelming. Choosing an exchange that will offer you the most convenience is a good approach.

The best crypto apps are those that are secure, allow users to trade different coins, have educational resources to keep you up-to-speed on industry news, and have a high trading volume. These are the factors that informed the list below.

All the crypto exchanges on our list will allow you to buy and sell bitcoin; other cryptocurrencies may or may not be available, so keep that in mind before settling on any one crypto exchange.

When looking for the best cryptocurrency exchange, keep an eye on the major and best cryptocurrency exchanges below. Most crypto exchanges that are good for beginner traders should be easy to use and secure. We break down a couple of cryptocurrency exchange options below. Let’s dive in!

Our list of the 5 Best Crypto Exchange

Coinbase (Best for Beginners)

Coinbase is our first pick as the best cryptocurrency exchange for newbies because it has a simple design and extensive educational material on various crypto related matters, such as cryptocurrency wallets, blockchain, web3, and public policy.

If you’re familiar with cryptocurrencies, you have most likely heard of Coinbase. The crypto platform makes it easier for new buyers to get started with dealing by offering a simple onboarding process. The exchange is one of the biggest and best-known crypto platforms in the U.S.

Thanks to Coinbase’s simple interface, navigating the platform and managing crypto is a seamless experience. The market also has a wide range of easy-to-find learning tools. The Coinbase Earn program teaches users how to trade certain digital assets and pays them with crypto for doing so.

It’s also important to be aware of the exchange’s safety features. With four types of two-factor authentication, customers can keep their money safe in a locker and receive it at a later date. It also has an insurance policy that covers up to $250,000 for private Coinbase accounts. All these reasons make Coinbase worth a try for beginners, even though it has higher fees.

Pros

  • It is secure and trustworthy. Coinbase is one of the few crypto exchanges that secures user funds, meaning that, in the unfortunate event of a hack, those with an account in the exchange will be reimbursed according to their terms and conditions. It also uses AES-256 encryption to store Bitcoin and wallets’ private keys.
  • It has a user-friendly interface and is easy to use. Blockchain technology’s technicalities turn many off. While some complex terminologies and concepts exist, platforms like Coinbase do not require a firm grasp of them. Tutorials are also available on depositing, trading, and withdrawing on the crypto exchange platform.
  • Broad selection of coins to trade. Depending on your risk appetite and general preference, you might want to purchase a coin that is not Bitcoin or Ethereum, arguably the most popular cryptocurrencies. With Coinbase, you get to choose from hundreds of coins.
  • Low account minimum to fund one’s account. If you are just getting started and wondering where to buy cryptocurrency, Coinbase could be an ideal option since you could start out with a small amount as you try to get used to the system. 
  • Easily accessible. You can access your portfolio on the website or via Coinbase’s app. Having an app is an attractive feature since it boosts accessibility and convenience.

Cons

  • Complex fee structure. Coinbase charges in tiers can be quite confusing, especially for newbies. 
  • It is comparatively expensive. This crypto exchange charges high fees for brokerage services, which can only be avoided by upgrading to Coinbase Pro.
  • Prolonged customer care wait times. Should you have an issue, it could take an exceedingly long time to get it sorted, which is never ideal.
  • Some deposit methods might not be available in certain locations. It is important to check whether Coinbase supports your preferred payment method, as some listed methods are unavailable in some countries.

Crypto.com

Founded by Gary Or, Rafael Melo, Kris Marszalek, and Bobby Bao, crypto.com is headquartered in Hong Kong. Crypto.com is one of the world’s first crypto exchanges. The exchange offers a huge number of cryptocurrencies at affordable rates. Customers have an array of features and services to explore, making crypto.com one of the most appealing crypto exchanges.

One of the interesting features of the crypto exchange is its allowance to swap different currencies straight from one’s bank account to the DeFi cryptocurrency wallet. Loans are also provided on the crypto platform with the coins and tokens you own being used as security. You can then access the loan using your credit or debit card.

Crypto.com has constantly made updates on its site to accommodate unique customer needs and the ever-evolving blockchain world. 

Crypto.com also has cryptocurrency trading and allows users to earn interest on their holdings, sometimes reaching as much as 14 percent. Deposits to one’s crypto account are made free of charge, boosting it further on the list of best trading platforms.

Investors, regardless of their experience level, can comfortably use crypto.com. The crypto exchange platform could very well be the best crypto platform in Canada, thanks to its all-in-one characteristics. Here is a summary to help you decide whether or not Crypto.com will be your go-to cryptocurrency exchange.

Pros

  • A huge list of tokens and coins. There are hundreds of coins available on the platform, giving customers many options. 
  • You can spend your crypto using your visa card. This is an important link between the centralized and decentralized worlds, allowing customers to enjoy benefits from both places. With a crypto.com account, users also earn rewards in numerous ways.
  • High interest returns on users’ crypto holdings. The exchange gives an option for users to hold savings accounts with high yields.
  • Tax support is provided. Taxation is not a straightforward subject, more so when it comes to blockchain technology.

Cons

  • As compared to other crypto trading platforms, educational material is not easy to find on crypto.com.
  • Live support on the app is slow. Solving an issue using the app can take a long time.
  • Low-volume traders are subjected to comparatively higher trading fees. This is especially true for those who do not hold Cronos (CRO), crypto.com’s native coin.
  • All the cashback rewards are paid in CRO. CRO is subject to fluctuation and if you want to use the rewards, you would need to convert it to USD.
  • Hard to navigate compared to other cryptocurrency exchanges, especially for first-time users.

Binance (Most used worldwide)

If you are wondering what are the best crypto exchanges, it is worthwhile to look into Binance. This crypto exchange platform is the biggest in the world in terms of volume traded.

Although it has been banned in the United States, Binance is still the world’s largest crypto trading platform. Binance was founded by Changpeng Zhao, commonly referred to as CZ. Binance has consistently outperformed other exchanges, mostly because of the low trading fees involved in decentralized exchanges.

Binance is a trusted platform for crypto purchases as it provides users with different options of what to do with their investments. Some of the products offered by Binance include trading, staking, farming, and locked savings. These are all interesting ways to earn money from one’s investment and in a passive manner. Most of these are passive ways to make extra income and it would be worthwhile to look into them.

Binance operates around the world but has often had to deal with a lot of regulation issues in certain jurisdictions. Owing to that, there are places where one cannot access its services, including Ontario, Canada.

US citizens can access some Binance services from Binance US, as opposed to Binance Global. Both platforms are easy to use and are beginner-friendly, making Binance one of the most trusted crypto exchanges in Canada, and beyond.

Binance has a wide selection of cryptocurrencies, so you are certain to find most of your favorites. Here follows a breakdown of why we consider Binance to be one of the best platforms to exchange cryptocurrencies, like Bitcoin.

Pros

  • High liquidity and trading volume. These are some of the factors that boost the credibility of a crypto exchange.
  • Comparatively low trading fees. Binance provides users on the platform with multiple rewards when they stake their coins and also when they use other features on the site. 
  • Available in many countries globally. While Binance has had a lot of trouble making their platform available in numerous countries, they are still present in hundreds of countries worldwide. They also make unique provisions for some of their clients to accommodate the country’s existing laws, a good example is the existence of Binance US.
  • Users can either access Binance from their computers or their phones using the app. Having multiple options when it comes to fund accessibility is a major plus for any exchange.
  • A high number of tokens and coins. One of the factors to consider when deciding where to buy or sell digital currencies is the number of coins listed by an exchange. Binance provides you with hundreds of options to help you deposit funds and start trading crypto.
  • Swift transaction times. Most exchanges on Binance are completed within seconds, placing it as the best platform to manage your cryptocurrency investments.

Cons

  • Binance US has limited features. As compared to the parent company, Binance US does not have as many features for crypto traders, owing to the regulations in place in the United States.
  • Complex interface. Its many features also mean that trading cryptocurrencies and transferring funds may be for advanced traders. For first-time cryptocurrency investors, navigating the interface can be a particularly daunting task.
  • Constant pressure for regulation. Binance has had to deal with a lot of pressure from different fronts as it tries to expand its reach. Regulators often come with a lot of requests that sometimes hinder their operations.
  • Lengthy response times. Should one require assistance from Binance’s customer care, they would need to wait for quite a long time before getting it solved due to their large number of customers.

Kraken (Best for Advanced Traders)

We chose Kraken as one of our top 5 crypto exchanges for advanced traders due to its competitive fee structure, extensive trading tools, and strong security measures.

Kraken has established a solid reputation and gained a strong following among crypto traders and retail investors globally. The exchange supports over 230 cryptocurrencies and prides itself on providing a highly secure digital ecosystem for trading your crypto. In addition, the trading platform Kraken Pro offers a wide range of tools for experienced cryptocurrency traders.

One of the standout features of Kraken Pro is its highly customizable interface. Users have the freedom to select multiple trading modules from a wide range of options and easily customize their layout by resizing, dragging, dropping, and arranging them to suit their preferences. In addition, the platform’s fee schedule offers some of the most competitive maker and taker fees available.

The exchange’s security is highly commendable. All of the companies featured in this list have implemented rigorous security measures. However, Kraken stands out for its exceptional security protocols. Since its launch in 2011, the exchange has successfully avoided any large-scale hacks, a remarkable achievement that sets it apart from most exchanges of similar size. Below is an overview of Kraken’s pros and cons.

Pros

  • Huge selection of cryptocurrencies. International clients get to choose from hundreds of cryptos, making it a great choice in Canada and other countries. 50+ coins are supported in the United States.
  • Regular payment of staking rewards. One of the most attractive products of Kraken is the ability to stake one’s coins for interest. Getting paid on time is an absolute plus.
  • Futures and margin trading. 
  • Low fees when you buy and sell cryptocurrencies.

Cons

  • The interface can be confusing. For first-time traders, it could be very difficult to navigate the site.
  • Poor customer support. It is often impossible to get a hold of customer in a timely manner.
  • Deposits can be expensive for some users.
  • Some users cannot trade all the coins available on Kraken. Due to some countries’ regulations, Kraken provides users with fewer coins to trade.

Bitstamp (Best for affordability)

Bitstamp is an excellent choice for crypto exchange due to its remarkably competitive maker/taker fees, affordable funding fees, and robust cybersecurity measures.

Several crypto exchanges attract traders by advertising low fees, only to surprise them with high transfer and withdrawal fees. Bitstamp has done its best to be transparent and upfront about its fees. Withdrawal fees for individual cryptocurrencies are incredibly affordable, and ACH transfers from fiat currency come at no cost.

Bitstamp has a fee schedule that is considered very affordable compared to other exchanges in the US. The fees range from 0.30% to 0.00% and from 0.40% to 0.03%, at the time of this article’s publication. In addition, traders who have a 30-day trading volume of less than $1000 are exempt from paying any trading fees. This is a significant advantage for traders who are not as committed.

Bitstamp has a solid history of maintaining strong security measures and being open about its operations. This crypto exchange has a long-standing history and is highly regarded in the industry. It was the pioneer in obtaining a payment institution license in the EU and currently holds a prestigious BitLicense issued by the New York Department of Financial Services (NYDFS).

Pros

  • Funds can be withdrawn in 24 hours. You get access to your funds within 24 hours, hassle-free.
  • Supports multiple fiat currencies. You are allowed to swap through multiple currencies as you deem fit. 
  • Regulated by the New York Department of Financial Services
  • Low trading fees and no spreads. We all love the benefits of a low transaction fee, awesome discounts, and freebies!

Cons

  • Fewer cryptocurrency offerings.

Wrap Up

We are confident that the breakdown we gave above will help you decide on a crypto exchange that meets your needs. Compare the pros and cons and see what best suits your personal finance needs.

Did you know you can use Bitcoin to buy a dedicated server from ServerMania? Try it out or book a free consultation with one of our experts to find out how you can start building your crypto portfolio with a ServerMania dedicated Bitcoin server today.