The 5 Best Cryptocurrency Exchanges For Beginners
Do you want to buy Bitcoin, but you aren’t sure where to start? Don’t worry, you aren’t alone. As the cryptocurrency world begins to take off and gain traction, many large businesses want to use cryptocurrency to make there payment processing cheaper, meaning that people all over the world will need to learn how to buy and sell cryptocurrency.
When you want to buy Bitcoin, or another cryptocurrency, you generally want to use an exchange to do so. You can buy cryptocurrencies directly from friends, but it can be difficult to find friends who want to sell you the exact amount you wish to buy at a price you can agree on. This is why you are better off using a cryptocurrency exchange to make your purchase. There are numerous exchanges to choose from, and below is a compiled list of the best cryptocurrency exchanges to use if you are a new to the cryptocurrency world.
Coinbase is the number one recommended cryptocurrency exchange for beginners, and this is because it is extremely easy to use. They also have a phone app that makes it easy to exchange your cryptocurrencies wherever you please. The app deals exclusively in USD and cryptocurrencies, so you will need a bank account that deals in USD in order use this service. Coinbase does also accept debit and credit cards for the purchase of cryptocurrencies — but the limits of how much you can purchase per day by this method can be quite restrictive.
Coinbase has a wide variety of cryptocurrencies available on their app, from Bitcoin to Polkadot, and even Hellium. That being said, Coinbase is far more selective in the coins available for purchase through their app than many comparable exchanges, but as a beginner you should find most of the coins you need — and Coinbase is adding new coins each and every day. Coinbase abides by all US government regulations, so you can rest assured that your cryptocurrency is in good hands. The worst part about this exchange? Well, you’ll find that the fees are quite high when compared to similar exchanges.
Binance is a large player in the cryptocurrency world that has been around as an exchange since the very beginning. It has since expanded and now has its own alt coin that users can earn as rewards for using their platform to exchange crypto. This can make it very easy to earn extra crypto on top of what you will be buying if you are into that sort of thing. Binance has over 150 cryptocurrencies, and tends to add newer ones faster than Coinbase, meaning they are a better choice if you are interested in investing in smaller or newer cryptocurrencies.
The problem with Binance is, it isn’t available for Americans. This is because the exchange is still unregulated and doesn’t abide by US financial laws. They do have a subsidiary, Binance US, for American users, but it doesn’t quite have the rewards and selection of alt coins as its predecessor. Since Binance is more of an international company, they do accept over 30 fiat currencies, and you can also use a debit or credit card to purchase cryptocurrencies as you would on Coinbase. And the fees for this platform are known as being the lowest in the industry.
Kraken exchange is another cryptocurrency exchange which has been around for years — almost since the beginning of cryptocurrencies themselves! Kraken is available to American investors, and does abide by all the KYC and AML laws required by the US government to operate in the finance industry within the nation. Kraken doesn’t have as many alt coins as Binance, but it does host over thirty different options in addition to Bitcoin and Ethereum. Kraken doesn’t have a rewards coin like Binance, making it more similar to Coinbase.
Kraken is also licensed in the UK and Australia, and is considered one of the safest cryptocurrency exchanges out there as far as cybersecurity goes. They accept purchases via bank deposit or wire transfer (so not as fast as debit or credit card purchases) but their fees are much lower and they do accept a handful of fiat currencies beyond USD. Kraken also has a phone app that is easy to set up and use, but the only problem is, unlike the other exchanges on this list, Kraken does not provide users with a wallet, so you will need to download your own wallet before using this exchange.
Bittrex used to be known as an exchange only for those who are experienced in the cryptocurrency world, but recently they rebranded their platform, and added fiat currencies, making it easy for people to join the cryptocurrency game using their platform. You can use a Visa or Mastercard to deposit USD on their site, which can be used to purchase cryptocurrencies. Speaking of which, they have over 400 coins to choose from, and they are always updating their list to add more, or take away those that have become defunct.
This is another American company based in Seattle, and thus they abide by all the US banking regulations and are available for Americans to use. Unfortunately, their fees are based on trading volume, so it will be hard to know just what you will pay. While their fees aren’t quite as high as Coinbase, if you think you will exchange frequently, it’s better to pick an exchange where the fees are more predictable.
5. Gemini Exchange
The last exchange recommended for beginners is a New York based exchange called Gemini Exchange. Like Binance, this exchange has its own native currency and users can earn these as rewards and trade them for other currencies. This exchange is unique in that it is regulated by the NYSDFS and therefore passes all the security compliance exams required to be a high-level financial controller. Their platform is highly secure as a result, and undergoes frequent audits to be sure that is still true.
Unfortunately, as of the writing of this article, Gemini only hosts about 20 cryptocurrencies on their platform, making it very similar to Coinbase in that regard. So if you want to exchange a lesser-known coin, Gemini won’t be the best choice for you. Credit and debit cards are also not allowed for purchase on this platform, and you will need to attach your bank account in order to make purchases. All purchases must be made in USD, and they cannot exceed $500 per day or $15,000 per month. On the bright side, the fees for Gemini are set at 1%, and their platform does come with a mobile and desktop app that are both very easy to navigate for beginners.
Overall, the cryptocurrency exchange that is best for you will depend on what you want to exchange, where, and at what cost. But if you pick one of the apps of this list, you can’t go wrong as they are all very easy to get the hang of, especially for those new to the cryptocurrency world. If you have more questions about how to navigate the cryptocurrency exchanges, check out the MintDice.com blog where post frequently cover the subject.