What is cryptocurrency and what is a crypto exchange?
Cryptocurrencies, often shortened to crypto, are digital or virtual currencies, often in the form of tokens used for secure online transactions such as payments. A crypto exchange is a digital transaction mechanism – essentially an online marketplace – that allows you to buy and sell cryptocurrency.
The most well-known cryptocurrency is probably Bitcoin, currently valued at a whopping $29K as of May 2022, and entire industries have sprung up to facilitate the use and exchange of crypto.
A term also worth mentioning is: stable coins, which refers to crypto with values associated with real-world assets, such as a country’s currency. Stablecoin helps to ensure stable and accurate cryptocurrency values.
The crypto exchange process is similar to any other financial transaction involving a buyer and a seller. The current market prices of the cryptocurrencies involved are factored into the transactions, and you can exchange similar or different types of cryptocurrency depending on your requirements.
Cryptocurrency can be converted to and from typical currencies such as the US dollar or euro, and money can be moved to and from crypto accounts to typical financial accounts such as checking accounts.
TO SEE: Cryptocurrency Glossary: From Bitcoin and Dogecoin to Hot Wallets and Whales (Tech Republic Premium)
Crypto wallets enable the storage of digital currencies and tokens and are highly recommended for its security and ease of use.
Best cryptocurrency exchanges
The term “best” may be subject to individual interpretation, but for the purposes of this article, I’ll point out the most well-known, reliable, easy-to-use, and secure options I’ve researched to designate the best crypto exchanges.
crack
crack is one of the older crypto exchanges, which has been in operation since 2011. It offers exchange functions for more than 160 types of cryptocurrency and a handy buying/selling guide for each to help you assess current market prices, recent price changes, and market cap. Kraken’s strengths are its ability to execute margin and futures trading as well as limit orders.
Kraken offers a guide for installing the Apple or Android app to help new users get started, and there is a demo account to try the product here†
Prices† The complete free schedule of Kraken can be found here† The basic structure includes a 0.9% fee for stablecoin transactions, a 1.5% fee for non-stablecoin transactions, a 3.75% fee plus $0.25 USD/Euro debit card or digital wallet, and a 0.5% fee for online banking/ACH processing. Overall, this represents a lower than average crypto exchange set of fees. Kraken offers 24/7 live chat support.
eToro
eToro claims to be the largest social investing platform, with 25 million users, and its lifespan surpasses Kraken as it was founded in 2007. Although it offers fewer cryptocurrencies than Kraken (with 68 options as of May 2022), it is buy/sell guide is updated in real time for current price information and also offers the option to invest in stocks and exchange traded funds.
One limitation for eToro: It is currently only available in 45 US states. Residents of Hawaii, Minnesota, Nevada, New York, and Tennessee currently do not have access to this crypto exchange, so it is important to keep that in mind.
eToro’s guide to installing their mobile apps for Apple or Android can be found here† There is also a demo account to try out the product hereand eToro offers $100,000 in fake “play money” to practice trading with.
Prices: eToro has a simple fee structure, charging 1% for buying and selling cryptocurrency. A $10 account minimum is required.
crypto.com
crypto.com is a newer offering, founded in 2016, yet supports most cryptocurrencies from almost every crypto exchange in this review, with support for over 180 cryptocurrencies, although not all of them are on their own. buy/sell guide† Non-fungible tokens are a strong offering through this exchange.
One limitation of Crypto.com is the lack of crypto-to-crypto trading, where users cannot directly exchange one type of cryptocurrency for another. In this scenario, you must sell one through a special trade and then enter into a second trade to buy the second. Another potential pitfall is reviews that indicate poor customer service.
The Crypto.com mobile app for Apple can be found here† the android version can be found here† It is worth noting that Investopedia called Crypto.com as the best mobile app in the industry. Unfortunately, I couldn’t find any available demo accounts to try it out.
Prices: Fees are between 0% and 2.99% and vary based on transaction and payment method. There is no charge if you buy with money transferred from a bank account via ACH, but credit/debit card purchases clock out at the full 2.99%.
Binance.US
Binance features over 60 cryptocurrencies listed on their buy/sell guide† Founded in 2017, the company temporarily closed access to US users in 2019 amid regulatory concerns. Thus, the offshoot of Binance.US was born.
One caveat is that there is a slow identity verification process, but the trade-off is that Binance.US offers some of the lowest trading fees.
Like eToro, Binance.US is not available in every US state: Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont are not on the list.
The Binance mobile app for Apple can be found here† the android version can be found here† There is access to a Binance demo account page here and includes $10,000 in fake “play money”. Binance too contours how to experiment with test trades in Demo Exchange mode to evaluate the results without actually executing the trade.
Prices: Binance fees are quite affordable, charging 0.1% for spot trading and 0.5% for buying/selling cryptocurrency, although their site also points out that “trading fees are determined based on your trading volume over a 30-year period.” days (in USD) and your daily BNB [BNB Coin] balance.” BNB users get a 25% discount on trading fees.
Coinbase
Coinbase is a well-regulated and popular crypto exchange with support for over 150 cryptocurrencies. Coinbase, with 98 million users, was founded in 2012 and operates in more than 100 countries, making it a robust and diverse platform that values its ease of use.
In fact, it is worth noting that Investopedia called Coinbase the best crypto exchange for beginners and the best overall in the industry.
The Coinbase mobile app for Apple can be found here† the android version can be found here† I have not been able to verify the existence of demo accounts, but this YouTube video walks you through the signup process and Coinbase offers comprehensive tutorials on how to get started with the product. In addition, the mobile app provides useful news and videos about the crypto tokens it supports.
Prices: Coinbase’s own pricing page isn’t particularly helpful, which is one of the product’s few drawbacks, but reviewers have found their rates to be between 0.5% and 4.5% depending on the transaction and note that there are other charges may apply. An alternative pricing option in beta testing mode called Coinbase One offers free trades and other elements for a monthly fee of $30.
BitMart
BitMart was founded in 2017 and is in the top 20 of stock exchanges in the world. They provide access to a good selection of coins and futures trading with leverage up to 50x buy/sell page features nearly 60 common cryptocurrencies. In all, there are several hundred available for transactional use, which is the most of all the offers in this review.
BitMart was hacked in December 2021, entailing the theft of nearly $200 million in assets, which the company then promised to return.
The BitMart mobile app for Apple can be found here† the android version can be found here† Details for setting up a BitMart demo account are: here† You can also install the appropriate mobile app by going to their main site and clicking Download before scanning the display code with your camera.
Prices: The fixed price is 0.25% per transaction, but as with Crypto.com, using a credit or debit card can incur higher fees such as 4.5%. Their pricing page outlines the full cost-related details.
Twin
Twin was founded in 2014 and are buy/sell page lists about 100 cryptocurrencies available for trading in more than 60 countries. The operational interface is simple and easy to use, and support is extensive.
Investopedia called Gemini because it offers the best security in the industry, and it recently became the first SOC 2 certified crypto exchange and offers FDIC insurance for US currency deposits up to $250,000.
You can download the appropriate mobile app straight away from the Gemini site by scanning the code they provide. Although I couldn’t find a demo, there is a video on how to use the product here†
Prices: Trading fees are divided into several categories, including mobile and desktop, and can be found here† They are extensive, but mobile transactions between $10 and $200 in value can range from $0.99 to $2.99, and anything over $200 carries a standard rate of 1.49%.
cash app
cash app was founded in 2013 and is a unique entry in our collection as it focuses not only on crypto exchange and stock trading but also regular financial transactions. This puts it in the same vein as PayPal and Venmo, making it a powerhouse of capabilities.
Although it has several options, Investopedia Rated Cash App as offering the best crypto exchange for Bitcoin. That said, I couldn’t find a buy/ship page on their site, although the mobile app displays current rates.
The Apple version can be found here† the android version can be found here† Although I couldn’t find a demo, there is a YouTube video on how to use the product here†
Prices: Cryptocurrency transaction fees range from about 1.5% to 2.3%. If you plan to use the app for regular financial transactions, standard deposits are free, with direct deposits incurring a 0.5% to 1.75% fee.
How to choose the cryptocurrency exchange that’s right for you
All the products reviewed here have something to offer everyone. The process of exchanging cryptocurrency in a safe and reliable manner is based on the platform involved, and every item listed here has a proven track record of getting the job done. Your choice should be based on the functionality you want and cryptocurrencies or transactions you intend to work with.
eToro is the best for social investing, BitMart has the widest range of cryptocurrencies available, Cash App offers financial peer-to-peer transactions on top of excellent Bitcoin trading capabilities, Crypto.com has the strongest competitor for mobile apps, Gemini offers the best security aspects and Coinbase is widely regarded as the easiest crypto exchange to learn.
I would go for Kraken as it seems to have the most established platform out there in my opinion.
