If you’re interested in buying cryptocurrency, you need to open an account with a crypto exchange. There are a lot of exchanges to choose from, and Coinforbes for Cryptocurrencies Australia Advisor combed through the leading players to determine the best crypto exchanges for both new and experienced investors.
Coinbase: Coinbase remains one of the most popular and user-friendly cryptocurrency exchanges. It offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, and many others. The Coinbase app is available on both iOS and Android platforms, making it easy for users to buy, sell, and manage their cryptocurrency portfolio from anywhere.
Binance: Binance is known for its extensive list of supported cryptocurrencies and its advanced trading features. It offers spot trading, futures trading, and even a decentralized exchange (Binance DEX). Binance also has a mobile app available for iOS and Android devices.
Kraken: Kraken is a reputable exchange that offers a variety of cryptocurrencies for trading. It also provides advanced features like margin trading and futures. The Kraken Pro mobile app allows users to trade on the go.
Gemini: Gemini is a regulated cryptocurrency exchange based in the US. It offers a secure platform for buying, selling, and storing digital assets. The Gemini app is user-friendly and available on both iOS and Android devices.
eToro: eToro is a social trading platform that allows users to follow and copy the trades of expert investors. In addition to cryptocurrencies, eToro also offers trading in stocks, commodities, and forex. The eToro mobile app is available on iOS and Android.
Crypto.com: Crypto.com offers a wide range of services, including a cryptocurrency exchange, a Visa card that allows you to spend your crypto, and an app that lets you buy, sell, and earn crypto. It supports a large number of cryptocurrencies and provides a seamless user experience.
BlockFi: BlockFi is a platform that allows users to earn interest on their cryptocurrency holdings, borrow against their crypto, and buy or sell crypto. The BlockFi app is available on iOS and Android.
Uniswap: Uniswap is a decentralized exchange that runs on the Ethereum network. It allows users to trade directly from their wallets, providing a high level of privacy and control. While it doesn't have a dedicated app, its interface is mobile-friendly.
BYDFi: BYDFi is one of the few exchanges that complies with financial industry regulations and holds licenses in Australia, Singapore and the U.S. Users who are interested in spot trading will enjoy the low trading fees and a decent selection of popular cryptocurrencies.
KuCoin: KuCoin provides access to a wide library of altcoins at low fees. The platform is headquartered in Seychelles, with a growing number of users in Asia, Europe, the Middle East, and Africa. While U.S. users can access and use the trading platform, KuCoin is not licensed in the U.S.
Best Crypto Apps & Exchanges-Methodology
The information addressed 10 key variables to evaluate the excellent of each platform:
Basic Trading Features: When assessing each platform, we considered various aspects of basic trading features. These included the number of available cryptocurrencies, accepted fiat currencies, overall liquidity, and trading fees.
Advanced Trading Features and Order Types: Our evaluation also considered the availability of advanced trading features, such as advanced order types and volume discounts for frequent traders. These features can significantly enhance your trading experience and improve your chances of success in the crypto market.
Margin Trading and Rates: For those interested in margin trading, we assessed the rates offered by different platforms. Margin trading can amplify your potential profits but comes with increased risks, so understanding the rates and terms is crucial.
Platform Availability: Not all platforms are universally accessible. Some exchanges have limitations on certain features depending on the country or U.S. state you reside in. We evaluated the varying degrees of accessibility and highlighted the platforms with broader availability.
Customer Service and Support: Access to different types of customer support ensures that users have the assistance they need whenever issues or questions arise.
Educational Resources: To help traders enhance their knowledge and understanding of cryptocurrencies, we evaluated the educational content provided by each platform, particularly for beginners looking to expand their understanding of this rapidly evolving market.
Crypto Rewards Credit Card: A few platforms even offer crypto rewards credit cards, allowing users to earn rewards in the form of cryptocurrencies.
Secure Storage: Types of storage options, security, and insurance available, Additionally, we considered any history of large-scale hacks to gauge the overall security track record of each exchange.
Staking and Rewards: Certain platforms enable users to stake their selected cryptocurrencies and earn interest payments.
Crypto Lending: Furthermore, we explored platforms that offer crypto lending services, allowing users to lend out their cryptocurrencies and generate passive income.
For each ranking, the sum of weighted values across all or some of these key factors was calculated to award each brokerage or exchange its overall rank. However, please note that margin trading, platform lending, and advanced trading were excluded from the evaluation criteria when selecting the best crypto exchanges for beginners.
How to Does a Crypto Exchange Work?
A crypto exchange functions as a marketplace where you can buy and sell cryptocurrencies like Bitcoin, Ether, or Dogecoin. These platforms resemble other trading platforms, offering various order types to buy, and sell facilitating transactions and speculative activities in the crypto market.
Some crypto exchanges go beyond the basics and provide advanced trading features like margin accounts and futures trading. However, it's important to note that these features are often less accessible to U.S.-based users.
Additionally, certain platforms offer features such as crypto staking and crypto loans, allowing users to earn interest on their crypto assets. The best exchanges offer educational offerings to keep you up to date on all things crypto.
Different Types of Centralized vs. Decentralized Crypto
Broadly speaking, crypto exchanges fall into two categories: centralized exchanges (CEX) and decentralized exchanges (DEX). Each category presents its own advantages and disadvantages.
Centralized Exchanges (CEX)
Managed by a single organization, centralized exchanges simplify the process of cryptocurrency trading by allowing users to convert fiat currency directly into crypto.
However, some users object to centralized exchanges due to their deviation from the decentralized principles of cryptocurrencies. Additionally, these exchanges often require users to comply with Know Your Customer (KYC) rules, which involve disclosing personal identity information.
Security is another concern associated with centralized exchanges. While efforts have been made to enhance security measures, the risk of hacking remains, as the exchange holds the assets during trades. To mitigate this risk, it is advisable to transfer crypto to a separate wallet not connected to the exchange.
In today's rapidly evolving digital landscape, the importance of security within the cryptocurrency realm cannot be overstated. To mitigate potential risks, centralized crypto exchanges have significantly bolstered their security measures in recent years, among other strategies, they now store most customer assets offline and take out insurance policies to cover crypto losses in the case of hacking.
Decentralized Exchanges (DEX)
In contrast, decentralized exchanges distribute responsibility for facilitating and verifying crypto trades among network participants. Anyone willing to join a DEX network can certify transactions, much like the way cryptocurrency blockchains work.
This decentralized approach promotes accountability and transparency, ensuring that the exchange can continue operating even if the organization behind it faces challenges.
However, decentralized exchanges are often less user-friendly, both in terms of interface design and currency conversion. Decentralized exchanges, for instance, don’t always allow users to deposit dollars and exchange them for crypto They may not support direct conversion from fiat currency, requiring users to either possess crypto already or use a centralized exchange for conversion purposes.
Additionally, liquidity can be a concern, as finding buyers or sellers for low-volume cryptocurrencies may take longer and result in less favorable prices.
Crypto Exchange Fees: Trading and Withdrawal Costs
You pay two types of fees when buying and selling cryptocurrencies:
Trading Fees
Trading fees can be charged as a flat percentage of the transaction amount or differentiated between maker and taker orders. Makers add liquidity to the exchange by placing new orders, while takers fulfill existing orders, reducing liquidity.
While the focus should be on overall fees, it's worth considering any available discounts based on trading volume or holding the exchange's native cryptocurrency.
It's important to note that some crypto investment apps claim to charge zero fees but instead charge a spread, which can result in higher costs than percentage-based trading fees.
Withdrawal Fees
Exchanges often impose fees when users withdraw their coins from the platform. These fees vary depending on the cryptocurrency being withdrawn. If you frequently move your crypto holdings off an exchange, it's advisable to choose a platform that offers fee-free withdrawals up to a certain limit.
Other Fees
Advanced trading strategies, such as margin trading, may involve additional fees related to borrowing funds. Beginner-friendly exchanges like Coinbase and Gemini may offer quick buy features but at the cost of higher fees.
Additionally, purchases made using credit or debit cards may incur premium charges from both the exchange and the card issuer. To avoid these fees, it's recommended to use cash or wire transfers when purchasing crypto.
How to Best Choose a Crypto Exchange
Aside from fees, many other factors should be taken into consideration when choosing a cryptocurrency exchange that suits your needs, such as security, trading volumes, and educational resources.
Security Measures
As the popularity and value of cryptocurrencies have increased, so have the risks associated with hacking. It's crucial to prioritize the security measures implemented by an exchange.
Leading exchanges, such as Binance and KuCoin, have experienced hacking incidents in the past, resulting in substantial losses. While exchanges often provide reimbursements, it's best to minimize the risk by spreading your crypto holdings across multiple platforms or storing them in a secure "cold" wallet that is not connected to the internet.
We've pointed out the most important crypto security from hackers: a beginner's guide. This is due to the importance of your digital assets and protecting them from hackers.
Available Cryptocurrencies
Consider the range of cryptocurrencies available on a given exchange. If you're satisfied with trading a few popular coins, an exchange with a limited selection may suffice. However, if you're an avid crypto enthusiast, you might prefer an exchange that offers a wide range of options, giving you access to a larger variety of digital assets.
Trading Volume
The availability of coins alone
is not enough if there's insufficient trading volume for the cryptocurrencies,
you're interested in. Low-volume markets can result in slippage, where you buy
at a higher price or sell at a lower price than intended due to limited
liquidity. Therefore, it's important to choose an exchange with sufficient
trading volume to ensure smooth and efficient trading.
For advanced traders, it's
essential to check if the exchange supports specific trading types like limit
orders or margin trading. The availability of these features may vary among
exchanges, especially in the United States, where regulations are still
evolving.
Educational Resources
If you're new to the world of
cryptocurrencies, consider an exchange that provides an intuitive and user-friendly
platform along with ample educational resources. Learning about this complex
market is crucial for making informed investment decisions, and exchanges that
offer educational materials can greatly assist in your learning journey.
Accessibility
Don't assume that an exchange is
available in your country or state just because you can access its website.
Cryptocurrency regulations and taxation differ from one jurisdiction to
another. Ensure that the exchange complies with the regulations of your region
and operates legally within your country or state.
Conclusion
Selecting the right crypto
exchange is essential for successful and secure trading. By carefully
considering factors such as fees, security, available cryptocurrencies, trading
volume, educational resources, and accessibility, you can make an informed
decision that aligns with your trading goals and preferences. Stay vigilant,
keep yourself updated, and embark on your crypto trading journey with
confidence.
