Despite recent declines, cryptocurrencies continue to be a much-pursued new asset class. In 2022, Bitcoin was more popularly searched for than TikTok, Apple, or the NFL. If you want to know where to buy cryptocurrency, you’ll probably start your investing journey on a cryptocurrency exchange platform. Exchanges for cryptocurrencies are websites where various cryptocurrencies may be bought and sold. These marketplaces serve as middlemen for the exchange of cryptocurrencies for fiat currency or other cryptocurrencies.
Let’s compare and contrast the various exchange options to see which one suits your needs.
Coinbase
Pros
- Friendly, straightforward UI
- Variety of instructional resources
- Numerous currency options
Cons
- Increased fees
- Fees are difficult to understand
Coinbase boasts a simple user interface, a wealth of information on cryptocurrency topics such as blockchain and volatility, and strong safety measures.
Most people who have heard of cryptocurrency will have heard of Coinbase. In 2018, one of the largest and most well-known cryptocurrency exchanges in the United States went public. It showed many people that the cryptocurrency market was now a legitimate financial sector.
With its easy sign-up process, the Coinbase platform does a great job of making trading cryptocurrencies easy for people who have never done it before. Additionally, the platform’s user interface makes crypto management a breeze.
In addition, Coinbase offers a wide range of resources for education. Coinbase’s Earn program incentivizes and educates customers to make use of these tools by providing them with free cryptocurrency in exchange for learning how to trade various cryptocurrencies.
Lastly, the security features of the exchange are worth mentioning. Two-factor authentication is used on all platforms, 98% of users’ crypto is stored offline, and custodial accounts are insured for up to $250,000. (in line with per-depositor FDIC coverage limits). Coinbase’s security features are one of the reasons the exchange is still recommended, despite the increased costs.
Coinbase Pro is the company’s second exchange platform. If you like Coinbase but wish it had more advanced trading and charting options, you might want to look into it.
Binance
Pros
- Exemplary cybersecurity
- Fees are minimal if deposits are made in cash
- Superior data charts and trading charts
Cons
- Unable to process credit card orders at this time
- Some services are limited to specific US states
Compared to the other trading platforms, Binance is the least strict about costs.
When it comes to trading volume, Binance is unrivaled, and its U.S. counterpart, Binance.US, provides many of the same benefits. Offering a low-capped maker/taker cost of 0.1% is one of its main selling points. This charge is already rather cheap. Moreover, it will go down much more as your trading volume grows.
When you trade cryptocurrencies on Binance using one of the most widely used utility tokens, BNB, you may take advantage of price reductions.
Direct cryptocurrency buyers may avoid costly currency translation costs by using the exchange, which lists more than 140 different cryptocurrencies available for purchase in US dollars. Advantageous for savvy buyers, the platform also offers extensive market dashboards, leverage trading, and several order types, including limit orders, market orders, and stop limit orders.
Unfortunately, Binance.US is blocked in the states of Hawaii, New York, Texas, and Vermont.
Crypto.com
Pros
- Exemplary cybersecurity
- Fees are minimal if deposits are made in cash
- Many different crypto assets to choose from
Cons
- Charged-up credit and debit card bills
- Not all services may be obtained in the United States
- No alternatives for direct crypto-to-crypto trading
Crypto.com takes the prevention of crypto fraud and cyberattacks very seriously.
The company stands out from other cryptocurrency exchanges because of its exceptional security measures. According to the Cybersecurity Ranking and CERtification Platform, it has the highest cybersecurity rating among the top 100 exchanges.
Offline cold storage for all crypto, a regulated custodian bank account for fiat cash, and frequent software peer-review are just a few of the methods used by Crypto.com to keep its customers’ cryptocurrency safe on its trading platform. Password, biometric, email, phone, and authenticator verification are all used as part of the system’s multi-factor authentication.
The platform has also shown that it is financially stable over time and has passed many penetration tests, which are simulations of attacks used to check how secure a system is.
Crypto.com’s security is only one of its many selling points. There are more coins available on this exchange than on any other on our list—over 250.
It also offers margin trading, prepaid Visa cards that can be loaded with cryptocurrency, crypto loans, and a non-custodial wallet called DeFi that lets users send cryptocurrency at their own pace and earn interest on coins.
Kraken
If you’re looking for a low-fee cryptocurrency exchange, it would be Kraken’s professional trading platform, Kraken Pro, since it has some of the most competitive fees in the industry. Besides, it features many useful features for sophisticated traders, including margin and futures trading.
Pros
- Numerous cryptocurrencies are accepted
- Kraken Pro has very affordable rates
- The exchange is very liquid
Cons
- Inaccessible in certain US states
- Reduced accessibility to account financing alternatives
Kraken was started in 2011 and is one of the oldest and most popular places to buy and sell cryptocurrency. The San Francisco-based exchange offers Kraken Pro, a professional trading tool that lets users buy, sell, and store more than 185 cryptocurrencies at a low cost.
This advanced cryptocurrency trading platform has retained its status as the industry standard for institutional investors since the early days of the cryptocurrency sector.
Kraken gives its users access to not just one but two platforms: the main trading platform and the more advanced Kraken Pro. The Pro interface of the exchange includes 13 different order types, lightning-fast execution, and highly adaptable chart analysis capabilities. Kraken users can trade cryptocurrencies in several ways, including spot trading, margin trading, and putting trading strategies based on crypto derivatives into action.
Kraken’s standard platform charges up to 1.5% for quick purchases. However, Kraken Pro has far lower costs. Kraken Pro’s tiered pricing structure provides substantial savings for high-volume traders. Kraken Pro’s maker costs begin at 0.16%, and its taker fees begin at 0.26% for traders with 30-day volumes of less than $50,000. But fees for both makers and takers could go down to zero for traders whose 30-day rolling volumes are more than $10 million.
Wire transfers are Kraken users’ principal payment option. They are one of the few available financing choices. They do not allow ACH transactions at this time.
Gemini
Gemini boasts stringent security processes, user-fund insurance, and SOC 2 certification.
Pros
- Works in all the 50 states
- The exchange is very liquid
- Insures money in a hot wallet
- A robust system of safety measures
Cons
- Typical trading costs are somewhat high
- Compared to others, it offers a limited selection of cryptocurrencies for trading
Gemini, which Tyler and Cameron Winklevoss released in 2014, is known for how much it cares about security and rules. Hot wallet insurance protects users’ assets on the New York-based exchange in the event of a hack. There is also an identity verification step for users, which helps lessen the likelihood of fraud.
Gemini also gives its consumers the ability to verify and accept trading account login devices and strongly suggests that its users use two-factor authentication to further protect their accounts. Gemini is SOC 2-certified, which means that independent auditors have checked and approved the company’s security and compliance systems. It is another security plus.
Gemini is a digital asset exchange (DEX) that was designed with the needs of experienced traders in mind. It offers a top-notch trading dashboard and lets users trade over a hundred tokens and cryptocurrencies. Customers of Gemini may use their bitcoin reward card to make purchases and earn rewards at partner merchants.
On Gemini, both the main platform and the platform for active traders have their own pricing systems. The main platform has flat fees for transactions under $200 and a relatively steep 1.49% for trading beyond $200. The maker-taker fees on the active trader platform start at 0.4% and go down as your trading volume increases. They’re also really pricey for what you get. Although Gemini’s charge is quite hefty, its superior security may make it worth it. Traders and investors who value safety in their transactions will find a lot to like in Gemini.
You’ve come to our page wanting to know, “What is the best cryptocurrency exchange in 2022?” We wish you the best of luck in deciding which path to take. Indeed, regardless of your preferred currency, it is important to keep track of your money. May your investments bring you success!
