What are the best platforms to buy Bitcoin in 2020? In this article we compare the most popular options such as Cash App, Coinbase, Robinhood, Crypto.com, and Binance. We discuss the pros and cons of each platform, and which one you should use based on your needs.
Cash App: Best for Beginners
Cash App is already a great way for sending money, but you can also purchase Bitcoin on the app. Although coming from the company Square which makes traditional financial products like credit card readers, Square also has a major Crypto division which aims to bring “Bitcoin for all.”
It is super convenient and beginner friendly to purchase Bitcoin from Cash App, and at the time of writing (June 20, 2020), they charge a 1.75% fee which is low in industry standards.
Cash App also allows you to transfer your Bitcoin out of the platform, unlike a certain other platform that we will mention in this list. This makes it possible to hold your own Bitcoins and not have to rely on one single platform. It is the true Bitcoin way.
The downside of Cash App is its limited features. It only offers Bitcoin and not other cryptocurrencies. I have also heard that Cash App tends to limit your account if you trade frequently. Therefore, this platform is the best for beginners but not for investors interested in trading or other cryptos.
Pros:
- Convenient app
- Low fee
Cons:
- No other cryptocurrencies
- Limited trading
Coinbase: Convenient but Unreliable
Coinbase is one of the largest platforms to buy Bitcoin in the United States. It is especially popular among new investors in Cryptocurrencies.
It also offers a convenient mobile app similar to Cash App. On top of that, it also offers 20+ other cryptocurrencies to purchase such as Ethereum, Litecoin, XRP, etc.
However, Coinbase charges a higher fee of up to 4% plus a flat fee for each transaction. This makes buying small amounts costly. Moreover, Coinbase has been suffering from “sever issues” during major liquidity crunches for the past few years (AKA, when Bitcoin pumps or dumps). Hence investors are often left with coins in their bag but unable to access them during critical times.
For these reasons, I have personally switched from Coinbase to the next platform on the list.
Pros:
- Convenient app
- Many cryptocurrencies
Cons:
- High fee
- Unreliable during big market movements
Crypto.com: Best Overall
Crypto.com is an up and comer in the Cryptocurrency space. It started from typical crypto startup fashion in 2017, an ICO. I was initially doubtful of their platform, however, they have changed my mind in 2020.
Their mobile application offers the same convenience as Cash App and Coinbase, with ability to purchase cryptos from bank accounts or with credit cards. They also have a large list of 50+ Cryptocurrencies available. One of the biggest reasons that convinced me to switch is their fiat on-ramp. I was never able to use my Canadian cards with Coinbase since 2018. However, Crypto.com managed to provide service with my bank.
Being a crypto startup, there are also many more features that traditional tech apps do not offer. You can apply for a crypto backed VISA card, earn interest on cryptos, buy gift cards, and do much more all within the app.
For the 6 months that I have been using Crypto.com, their trading has not halted once unlike Coinbase. This is also another reason why I will be staying with them for the foreseeable future.
Pros:
- Convenient app
- Large selection of cryptocurrencies
- More features (Crypto VISA card, Earn interest, etc)
Cons:
- High fee (same as Coinbase)
Robinhood: Do not use for Crypto
Robinhood is a popular platform for everyday investors to trade traditional financial products. However, when it comes to Bitcoin and other Cryptocurrencies, Robinhood is a terrible option.
Robinhood has full ownership of your cryptocurrencies and there is NO WAY for you to transfer them out of the platform. This defeats the purpose of using Cryptocurrencies as one of their biggest values is self ownership.
With all other platforms on this list, you can transfer the cryptocurrencies out of them and into another exchange or your own crypto wallet. This makes the underlying assets much more valuable comparing to those purchased on Robinhood, as you do not need to depend on the Robinhood platform.
If Robinhood goes out of business, your Bitcoins and all other cryptos on your Robinhood account will disappear. However with other platforms, you can transfer your cryptos out of them well before the platform shuts down.
Pros:
- Not enough to justify the cons
Cons:
- You do not own your Crypto, Do not use
Binance: Lowest Fees and Largest Selection
Binance is an advanced Cryptocurrency exchange, offering over 150 coins to trade in many trading pairs. It also provides many advanced features such as leveraged futures contracts, staking and lending to earn interests, etc.
Binance also has the lowest fees in this list, thanks to its different fiat deposits. You can deposit cash into Binance through a bank transfer and only have to pay a flat fee of $30-$50. All trading after that would cost less than 0.1% in fees.
The downside of full-fledged exchanges like Binance and many others below, is that they are much harder to use. The typical investor could be overwhelmed by the trading interface of the platform.
Pros:
- Largest selection of cryptocurrencies
- Lowest fees
- Tons of other features
Cons:
- Hardest to use
- Margin trading highly risky for beginners
Fear not, if you want to learn the ins and outs of Crypto trading, stay tuned on this community as new exchange guides will be coming soon.
There are many other reputable exchanges that offer similar fees, cryptocurrency selections, with a similar trading experience. Here are some that I have used and would recommend:
Kraken
FTX
Bittrex
Gemini
Coinbase Pro
Poloniex
KuCoin
OKEX
BitMax
Thank you for reading this post. If you have more questions, use the search function to find your answer.
