Cryptocurrency exchanges

It’s no secret that the cryptocurrency market is growing by the day. There are more options than ever before to invest and exchange your money for digital money essentially. This being said, the question for many isn’t, “should I start trading crypto,” but instead, “how do I start trading crypto?” The first step to getting involved in trading crypto is first to find the best cryptocurrency exchange for you. Read on to learn the answers to some of the most frequently asked questions for beginners in the crypto market, including (1) What is a cryptocurrency exchange? (2) How do I start trading Crypto? And (3) What cryptocurrency exchanges do I have to choose from?

What is a cryptocurrency exchange?

A cryptocurrency exchange is a way to access cryptocurrencies. It’s where users go to buy, sell, store, and convert different cryptocurrencies. Investors can even use exchanges to buy Crypto with their own traditional currency (like USD) or convert their cryptocurrencies back to USD or another regular currency. They make it simple to withdraw or keep a balance on your account if you prefer. Crypto exchanges are the reason Crypto has grown in popularity to the scale they have today.

How do I start trading Crypto?

The first actionable step to getting into the crypto-trading space is to begin by learning more about the industry. A common mistake many beginner traders make is jumping in without doing any research on Crypto, cryptocurrency exchanges, or cryptocurrency exchange rates. While certain exchanges make it seem easy to jump in and put your money somewhere, experts recommend beginning with some research or basic training to understand what you’re getting yourself into and what to expect. Knowing what to expect, how the industry works, and where your money is really going is a crucial first step if you want to be successful in the crypto space.

The good news is that there are so many free resources out there to learn from. Spend some time searching YouTube for “cryptocurrency basics” videos, read up on blog articles teaching you about the industry and different coins, and listen to podcast episodes on the topic. There are so many creative ways to gain some knowledge and prepare yourself before jumping in. Once you feel like you understand the general concept of Crypto, you can begin looking for the right exchange for you.

What cryptocurrency exchanges do I have to choose from?

There are many crypto exchange options—more than ever before—for investors to choose from, but not every crypto exchange will be right for you. There are several factors to keep in mind when picking your crypto exchange, from how user-friendly the platform is, how high the fees are, to the platform’s security measures.

Before we jump into the five cryptocurrency exchanges, something important to keep in mind is that the cryptocurrency exchange rates will be the same across the board. A cryptocurrency exchange rate is an actual rate or price each coin is selling for at any given time. It’s important to distinguish between the exchange rate and the exchange itself. A cryptocurrency exchange is where you are selling and trading your coins, whereas a cryptocurrency exchange rate is a price your currency is selling for. Like the stock market, the prices will be everflowing, but they will remain consistent across every exchange.

We know how important it is to see all your options before investing in one, so below, we’ve broken down 5 of the most popular cryptocurrency exchanges and what you can expect from each. Let’s jump in.

  1. Coinbase

Coinbase is a platform you may have heard of if you’re new to the crypto world. It’s one of the most popular and safe platforms and is known to be great for beginners. Coinbase is exceptional for those looking to start somewhere; it provides an exclusive feature full of educational materials called “Earn,” where users can learn about different cryptocurrencies, cryptocurrency exchange rates, and the overall industry, getting rewarded with actual free Crypto as they learn. The exchange encourages using this space to get new investors ready for trading.

Coinbase is a great place to start when it comes to coin options. They have 100+ tradable cryptocurrencies, including the most popular currencies such as Bitcoin and Ether. Their overall interface is extremely user-friendly for those looking to get started quickly.

Sounds great so far, right? Like many things in life, these conveniences do come at a cost. One of the biggest drawbacks of Coinbase is the fees. It is widely known for its more complex fee structure and overall high fees. They also don’t have Dogecoin, which is–arguably–a con to some.

This being said, they are 100% worth the money spent, according to many. Coinbase’s security features are a huge pro when comparing exchanges. According to Forbes Advisor, they use two-factor identification, provide insurance policies, and store 98% of customers’ Crypto offline.

  1. Crypto

If you’re looking for security, Crypto is the exchange for you. They are known across the board for their dependable precautions against crypto fraud and cyberattacks. While this is an

important feature that all exchanges strive for, Crypto really stands out in this area. In 2021 alone, they “increased [their] industry-leading insurance policy to $750M and added multiple security credentials”, according to Crypto’s year-end highlights. They offer multi-factor identification, 100% offline storage for all Crypto, and more. Security isn’t the only thing Crypto is known for, though. This exchange has over 250 coins—one of the largest selections you’ll find.

Some cons of this exchange are that not all services are available in the United States. Another con of Crypto is they tend to have higher trading fees for those with less volume in investments. Overall, Crypto is definitely a better platform for those looking to get more serious (and secure) with their trading.

  1. Bittrex

Next on our list of five cryptocurrency exchanges is Bittrex. Bittrex is most widely known for its instant buy/sell platform. They have over 100 coins available and require a small minimum trade amount of only $3 to get started. While this is attractive from an ease-of-entry standpoint, it’s important to note that they do have higher fees for lower-volume traders. Advanced/higher-volume traders benefit from their discounted fees. From a security standpoint, this exchange is up to par with the industry standards, requiring two-factor authentication and cold storage for assets, but it still doesn’t compare to the leaders in the cybersecurity space.

  1. Binance

Binance as a whole has the highest volume of trading compared to other cryptocurrency exchange options. It’s also one of the most affordable, with low fees from the day you start–and lower fees as you grow as a trader.

For those who want to buy coins directly, many of the exchange’s cryptocurrencies are purchasable with USD, saving you money in conversion fees. This variety of discounts and purchase options benefits advanced users who may also enjoy the platform’s comprehensive market dashboards, margin trading, and a variety of order types, including limit orders, market orders, and stop-limit orders.

One con of Binance is that its corporate structure isn’t as transparent as many would like. An example of this is that they are not open about where they are headquartered. To some, this lack of transparency raises a red or yellow flag, whereas to others, this isn’t an important enough factor to deter them.

  1. BlockFi

Last–but certainly not least–is BlockFi. BlockFi is known for its unique feature of allowing users

to both earn interest and borrow money via Bitcoin as a currency. Users can earn up to 9.5% APY on their Crypto monthly via the BlockFi Interest Account. This means that users can utilize their Bitcoin as collateral for loans, a game-changer for many. BlockFi is based in the U.S. and does not require any transactional fees for trading. They are also secure, requiring two-factor authentication and a feature called “allow listing,” which allows you to restrict certain withdrawals and block certain addresses to avoid theft.

BlockFi is unique from most other currency exchanges because it prioritizes lower-volume traders over their high-volume traders. Many other platforms incentivize high-volume trading, but BlockFi has financial products catered in the opposite direction. This presents itself as a major con in the industry compared to other platforms for those looking to grow as high-volume traders (or those who are already high-volume traders).

As you can see, several factors go into choosing the right cryptocurrency exchange for you. Take some time to think through what factors matter most to you, and research the exchanges you’d like to learn more. It’s important to remember that no one exchange will be perfect, so deciding on your top priorities will help you determine which features you are willing to sacrifice over others. Regardless of where you decide to get your feet wet, there’s always an opportunity to switch to another platform or join another on top of the one you’re in, so have fun. Trading cryptocurrency is a great opportunity to learn, make extra money, and get involved in an industry with infinite potential.

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