During this uncertain time, and with the stock market bubble, you might be looking into alternative methods of investing. This post won’t go into how to trade or invest in Bitcoin and Altcoins; instead, I’ll cover the 3 Best Crypto Exchanges that I’ve used with a rundown of their pros and cons.
3 Best Crypto Exchanges
Coinbase is based in the U.S.A and is the easiest way to purchase cryptocurrencies for U.S. residence. The sign-up process is quick, and you can buy cryptocurrency by attaching your bank account or debit card information to your account. While Coinbase is primarily used for investing and holding coins, the Coinbase Pro platform is a more familiar setting for swing and day traders looking to make quick profit opportunities.
There is no need to sign up for both Coinbase and Coinbase Pro since you have access to both platforms with a single login. Coinbase is subject to the rules and regulations of the United States and your earnings will be reported to the IRS. Also, if you’re interested in investing in Altcoins, Coinbase has only a few, although they are getting better.
There are mobile apps for both Coinbase and Coinbase Pro for Android and iOS, making it easy to watch the market and purchase coins at any time. While Coinbase is the easiest way to purchase crypto for U.S. residence, they have a limited number of Altcoins, and you’ll have to transfer USDC, BTC, ETH, or LTC to another exchange to purchase some of the more popular Altcoins.
Lastly, the fees for purchasing crypto on Coinbase is quite high, and you should consider using a bank deposit instead of debit cards to avoid charges. Also, you can avoid transfer fees to other exchanges if you transfer your coins from Coinbase to Coinbase Pro before sending them to a different wallet on other exchanges.
Binance is Chinese owned and probably the best crypto exchange due to the number of cryptocurrencies available. Also, Binance offers both margin and futures trading, allowing buyers and sellers to leverage their positions. Margin and Futures trading is most likely the reason for the high trading volume on the Binance platform.
Anyone can use the Binance platform, but U.S. citizens can’t use the margin trading features unless you work some magic. Again, the United States has stepped in and wants to protect its citizens from doing whatever they want with their money. However, some people make foolish trading decisions and sue after losing a lot of money. It makes sense that the U.S. government would restrict it altogether.
You can place trades on Binance through their website, iOS and Android apps, or Windows and Mac desktop apps. The Binance platform has grown considerably over the years, and you’ll likely end up using it as your primary exchange. Because of its popularity, it’s subject to hacking attempts. Make sure that you have a good password set and use 2FA security on your account.
Gemini is another U.S. based crypto exchange that gets quite a bit of volume, and I’ve found that more experienced traders use it. However, they don’t have very many Altcoins available, their fees are kind of high, and it takes up to 5 days for a bank deposit to clear.
They provide you credit while your deposit is clearing but you can’t transfer the funds to another exchange until it is complete. Five days is a long time in crypto and you’re better off using Coinbase. For me, a direct bank transfer is usually done the same day.
Also, the initial interface for Gemini isn’t set up for traders but holders. After you sign up, you’ll need to request they turn on the ActiveTrader interface, which is more familiar to swing and day traders.
What Gemini has going for it is their integration with Tradingview, one of the best charting software programs online stocks, crypto, and commodities. After the initial setup, you no longer need to login to Gemini to trade. You can set up a watchlist, alerts, and place trades all through Tradingview. No other major crypto platform has a deal with Tradingview but maybe more will come in the future.
Best Crypto Exchanges
New exchanges are popping up every day so you need to be careful where you put your money. These are the best crypto exchanges that I’ve used over the last few years in terms of coins, liquidity, and margin trading. Some honorable mentions are Gate.io, Bittrex, and Bitfinex. However, over the years, I’ve seen a decline in the number of coins listed at these exchanges and annoying I.D. verification processes.
Keep it simple folks, no funny exchanges. Good luck and safe trading!