Upon entering the cryptocurrency market, you will discover that your initial hurdle in this niche is to choose a reliable cryptocurrency exchange. With hundreds of different platforms out there, picking the right one for your needs is nothing less than challenging.
Different platforms offer different trading conditions, fees, security measures, and cryptocurrency market pairs. So which one is the right one for you? This article will help you with the strenuous task of choosing the best crypto exchange.
1. Binance — The Most Popular
Binance stands out as the most popular crypto platform out there. Active for nearly 5 years, this crypto exchange quickly built a solid userbase of millions of users. It has done this by providing versatile services and top-of-the-line crypto trading tools for beginners and experienced enthusiasts alike. The platform offers more than 500 different cryptocurrencies for trading that will satisfy even the pickiest of traders.
Pros & Cons
Like every exchange platform, Binance comes with its set of benefits and drawbacks. The advantages of this platform are numerous and include:
- Wide variety of trading tools, including futures trading, leverage, and advanced order types like stop limit and stop-loss;
- Peer-to-peer trading, with Binance acting as an escrow;
- All in one savings platform for liquidity mining and staking;
- Trading fees are on the lower end of the spectrum in the industry.
That said, there are some major drawbacks as well:
- Your funds are stored in one place, which increases the risk of your funds getting stolen in case the exchange gets hacked;
- Government regulatory agencies have been increasingly hostile to Binance, banning its usage in multiple countries (UK, Singapore, Thailand, Cayman Islands);
- Withdrawals are subject to approval from the platform, and each withdrawal to a private wallet will trigger additional fees (each cryptocurrency has its withdrawal fee).
Binance offers a complete trading package, with some inherent risks to its centralized nature and issues related to its dubious legal dispositions.
2. Coinbase — For New in Crypto
Coinbase is one of the oldest cryptocurrency exchanges still active today. It started offering its services back in 2012 and has grown into the largest US-based crypto exchange. One of the most notable characteristics of Coinbase is that it’s entirely regulated. It provides its users with a safety net in case the exchange is hacked. Moreover, Coinbase was the first crypto-related business to get listed on NASDAQ, an official stock exchange.
Pros & Cons
The main benefits of using Coinbase are:
- Regulated exchange that provides insurance of your funds through the FDIC (up to $250.000);
- Good choice of cryptocurrencies (100+) and a simplified interface for those starting their crypto journey.
However, Coinbase does have some drawbacks:
- Most trading pairs are not available for people that do not reside in the US;
- Trading fees are on the higher end (0.5% for trades of less than $10.000), and you will need to add withdrawal fees to these commissions.
Coinbase is a great beginner-friendly exchange, although mostly reserved for US nationals.
3. Godex — Anonymous and No Registration
Godex is a less-known crypto exchange that is rising among the top crypto exchanges available on the market. Godex became popular mainly because of the high level of security and privacy it offers to its users. The exchange is entirely anonymous and it doesn’t require any type of personal data to be shared on its servers. With over 300 different cryptocurrency pairs that are all interchangeable for one another, it also offers a lot of versatility to its users. You can visit it at https://godex.io/.
Pros & Cons
The advantages of using Godex derive from its anonymous nature. The platform offers additional pros, such as:
- Swaps are executed through non-custodial wallets, allowing you to keep control of your funds at all times. Consequently, the exchange doesn’t require withdrawal fees either;
- No need to create an account or go through a complicated ID process. Your data remains entirely private and dissociated from your crypto holdings;
- Fixed exchange rates eliminate the risk of losing out on profits while the swap is executing.
Even so, there are a few drawbacks with this exchange:
- Trading fees are on the higher end, although this is negated by the absence of withdrawal fees;
- Since there is no in-built wallet within the platform, you will need a personal crypto wallet before you can initiate a transfer.
Godex is one of the rare exchanges that still value the anonymity and privacy of its users.
4. Robinhood — Mobile-Friendly
Robinhood started as a stock-trading app. The app became popular for its 0% fee for buying and selling cryptocurrencies. In addition to stocks, you can use Robinhood to invest in some of the most popular coins on the market, including Bitcoin, Ethereum, and Dogecoin. Its main appeal is that everything is done through its easy-to-use mobile app.
Pros & Cons
Here are the advantages that make Robinhood stand out from the competition:
- Depositing money is streamlined, and you can invest in half a dozen cryptos in just a few minutes with a couple of taps on your smartphone;
- Absence of trading and withdrawal fees.
However, Robinhood comes with some significant drawbacks:
- Limited number of cryptocurrencies supported (BTC, BCH, BSV, DOGE, ETH, ETC, and LTC);
- The platform doesn’t allow you to withdraw or spend your cryptocurrencies from the app (you will need to sell your coins to transfer your funds to an external account).
All in all, you should avoid Robinhood if you are a crypto enthusiast that wants to use their coins in other ways than just speculating on their value.
5. Crypto.com — Large Crypto Selection
Crypto.com is a popular exchange that offers a large selection of coins. In addition to its crypto trading platform, Crypto.com offers an NFT marketplace and crypto payment app. One of the most popular features of Crypto.com is the Metal Visa cards that allow you to directly spend your crypto online and in-store.
Pros & Cons
Crypto.com offers multiple perks to its users, with the most notable being:
- Metal Visa cards that are linked to your account and allow you to spend crypto anywhere;
- Good selection of different trading and financial products;
- NFT marketplace.
However, there are some drawbacks with Crypto.com’s offering:
- High fees if you don’t use the CRO cryptocurrency;
- Slow customer support.
Crypto.com can be a great platform if you are willing to use the CRO cryptocurrency to pay for the trading fees.
This list should provide you with a good amount of information about the basic features of the top crypto platforms on the market today. With all these pros and cons listed, we tend to prefer Godex for quick crypto swaps. It allows us to execute a BTC to ADA exchange almost instantly and allows us to keep our privacy by doing so.