For a long time, the rapid growth of cryptocurrencies has been the talk of the town, with investors anxious to capitalize on the digital currency’s prospective returns. However, some people question the validity of various crypto trading platforms, particularly given how easy some hack. Nobody wants crooks to steal their Bitcoin. Whether you’re a seasoned crypto investor or just starting out, there are several cryptocurrency aspects to consider before making a decision.
What is a Crypto Exchange?
A cryptocurrency exchange is a platform that allows you to purchase and sell digital currency. An exchange site can be used to convert one cryptocurrency to another, such as Bitcoin to Litecoin, or to purchase a cryptocurrency with a fiat currency, such as the U.S. dollar. Current market prices determine the prices of cryptocurrencies on exchanges. You can also use an exchange to convert cryptocurrencies back into U.S. dollars or other currencies you can keep in your account as cash (and later trade back into crypto) or withdraw to a regular bank account.
There is no such thing as a one-size-fits-all bitcoin exchange. As a result, assessing your particular crypto interests and locating an exchange that matches your goals can be advantageous. For example, perhaps you’re looking for a specific coin or want to learn more about cryptocurrency investing.
An option like Casa handles a lot of the work and eliminates the need for a public and private key. In comparison, Gemini might offer a strange coin you want and have it available for sale. While Coinbase offers fascinating tools for learning and earning cryptocurrency.
Getting to Know Coinbase
Coinbase grew from a small startup to a cryptocurrency powerhouse in less than a decade. The initial functionality of the exchange was limited to exchanging Bitcoin via bank transfers. Still, it has since expanded to include Bitcoin Cash, Ethereum, Litecoin, and other cryptocurrencies, as shown in this Coinbase review.
Coinbase would eventually be funded by well-known venture capital firms such as Andreessen Horowitz and Union Square Ventures. The company has raised $547 million in total capital to service its 35 million members.
Coinbase also implemented the use of crypto wallets. These wallets safeguard your private keys—the passwords that grant you access to your cryptocurrencies—while allowing you to send and receive cryptocurrencies such as Bitcoin and Ethereum. They come in various shapes and sizes, ranging from hardware wallets like the Ledger (which looks like a USB stick) to mobile apps like Coinbase Wallet, which makes using cryptocurrency as simple as making purchases online with a credit card.
If you are an advanced trader, you do not need to leave Coinbase to save money. Coinbase Pro offers a more comprehensive trading system and a more straightforward pricing structure. A tiered system determines the cost of trading on Coinbase Pro and whether you are a maker or a taker. Fees begin at 0.5 percent and gradually decrease as volume increases (based on monthly trading volume).
The majority of retail traders, particularly those new to cryptocurrency, can expect to pay 0.50 percent. Because of its more comprehensive platform and user experience, and lower costs, many traders prefer Coinbase Pro to Coinbase. However, find the right fit for you.
While Coinbase is one of the most well-known Bitcoin exchanges globally, its users have reported a series of issues, including:
Coinbase costs a lot of money when compared to some of its major competitors. Many newcomers who use the standard Coinbase platform will be charged these fees unless they upgrade to Coinbase Pro, which gives more capabilities that may be intimidating to beginning crypto traders and is free to upgrade.
Recently, there were reported cases of hackers getting into Coinbase accounts. These hackers stole private information. If you are using Coinbase, you should use the two-step verification method to secure your account.
Bias in promoting other cryptocurrencies
Coinbase has over 50 cryptocurrencies in its docket. Although this may sound like a good thing, most of these cryptocurrencies are not yet stable in the market. By investing in them, you may lose more than you bargained for. It is recommended to use Bitcoin since it is the most stable cryptocurrency in the market.
List of Alternatives to Coinbase
However, your options don’t end with Coinbase. There are several alternatives, including:
Binance is not only a Bitcoin exchange platform but also a cryptocurrency exchange platform in general. This Coinbase competitor promises to be one of the world’s largest cryptocurrency exchange platforms, allowing clients to buy and sell cryptocurrencies in minutes. One of the advantages of this trading platform is that it claims to be compatible with a number of devices, meaning that you may not only trade conveniently and safely but also carry it with you wherever you go. They also offer 24-hour customer support and a vibrant community where you can network with other traders and obtain expert advice on where to put your money.
Kraken is the Coinbase alternative you need to preserve your bitcoin’s control while also benefiting from their comprehensive and dependable services. They claim to be the best and most secure cryptocurrency exchange, and they provide several options to choose from. This suggests that they can make the process very straightforward for you, regardless of whether you are a novice or have a lot of experience. They have a plethora of information that they are willing to share with their clients for you to make well-informed trades and connect with the necessary people in the industry based on the cryptocurrency you are trading.
Robinhood is a broker option for traders who want a simple, easy-to-use interface. Despite its limited trading options and account types, Robinhood’s user-friendly platform can be quickly mastered by new users. Robinhood’s most enticing feature is its easy and convenient smartphone platform.
The app makes it simple to access your tax documentation and account information, and you may open and fund an account in as little as 10 minutes. Placing a trade is similarly straightforward. To help you understand, short explanations of each buy and sell orders are supplied next to its options. This is a fantastic feature for newcomers.
Compared to Coinbase, Bitstamp is one of the oldest and most well-known bitcoin exchanges. Bitstamp has operated in Europe since 2011 and is fully licensed. It is a user-friendly platform that supports bank transfers, credit cards, and cryptocurrency deposits and purchases.
It matches Coinbase’s offers plus Ripple, and it supports cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Ripple. Furthermore, it has good community trust and security, but not as strong as Coinbase. It has good customer service and verification standards, medium to high costs, and good community trust and security. It also offers solid customer support and verification standards.
The technological work of the platform is suitable for safe and secure exchanges, especially for seasoned investors. Bitstamp has had a strong track record for account security in the last two years, and they are constantly strengthening their security following a compromise in 2015. It charges a 1.49 percent fee, which reflects its preference for investing in U.S. dollars or Euros.
Gemini can help you trade and buy cryptocurrency right away, and they can do it not only with Bitcoin but with any other key cryptocurrency. One of the best characteristics of this Coinbase alternative is they have tools for both active traders and crypto newcomers, allowing you to use their resources regardless of your experience level. They also highlight how they use industry-leading security in every section of their website so that you can keep your assets safe and put them out to trade without worrying about who sees them or whether they are at risk of theft.
Uniswap is a decentralized mechanism that facilitates the exchange of Ethereum-based currency. Since 2018, the protocol has grown to the point where it now outnumbers Coinbase’s daily trade volume. Uniswap enables you to trade any Ethereum-based token without the need for a third party.
Uniswap (UNI) coin has increased in popularity to the point where you can now trade it on other exchanges such as Binance and Gemini. Many individuals believe that bitcoin trading will become more decentralized in the future and that Uniswap may be a harbinger of how the entire sector will evolve.
eToro is a popular Coinbase alternative that allows you to trade confidently and never miss another perfectly timed trading opportunity. They state that the first step is to select an investment product to get started and that once you do, you’ll understand why this company has over 10 million clients. The best part is that you may invest in cryptocurrencies without paying a commission, and they claim that there are no markups on major exchanges no matter how much money you invest. They also include trading tactics created by top-performing traders that you may use in your transactions if you are new to investing.
The best crypto exchanges should have a bit of everything good about various crypto exchanges. Each of the crypto exchanges has particular qualities. Coinbase, on the other hand, edges out the competition with its all-around advantages. Regardless of the website you choose, find the best bitcoin platform for your specific needs.