Among many sites to trade cryptocurrencies, these are the top 10 picks for you to check out. From Coinbase to Binance, eToro to Robinhood, which is the most ideal for you?

Cryptocurrency has matured so much over the years, skyrocketing in price and gaining support from many investors from all around the world. The number of cryptocurrencies has also increased a lot, giving more options for investors to exchange their cash with decentralized digital money.

However, as the industry grows, you should remember that internet scams and hackers are still around, gaining money from poorly protected cryptocurrency exchanges. The risk is never completely gone, even in cryptocurrency trading that many claimed to be safer because it is decentralized and cannot be interfered with by a third party.

For this reason, choosing a trustworthy exchange is even more crucial now and should not be underestimated.

There are many factors that should be put into accounts, such as security, fees, usability, and many more. To put it simply, here's how you should choose an exchange to trade cryptocurrency:

  • Regarding Exchange Security: With anonymity being the main appeal of cryptocurrency, some exchanges allow their traders to remain anonymous and do not require them to input their personal information. These exchanges are typically decentralized, so that means there are no CEOs or any other regulatory bodies that control the system. While this system can be helpful for some people, it is also more risky and prone to scams. Thus, the more common types of exchanges are not decentralized and require the application of Know Your Personal (KYC).
  • Pay Attention to the Wallet System: Bitcoin and other cryptocurrencies are stored in a digital wallet. There are two types of wallets that you can get: hot wallets and cold wallets. Hot wallets are operated either by your crypto exchange or by a provider. Some exchanges will automatically provide you a hot wallet when you open an account. Cold wallets, on the other hand, are actual hardware that could store your coins.
  • Mind the Payment Method: Before buying the cryptocurrency, you must know how you are going to pay for it. In this case, you must pick a payment method and connect it to your account. Note that some exchanges may charge fees for deposits and withdrawals; though there are some others that let you do it for free. Also, keep in mind that the fees may vary depending on your payment method, so pick the one that suits you best.

To help you navigate through a long list of exchanges and determine the right one for you, we have summarized the top 10 best exchange sites to trade cryptocurrency.

 

1. Coinbase

Coinbase is currently the top site to trade cryptocurrency because of its wide range of features and affordable cost. You can invest directly with USD and choose at least 40 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. With only $5, you can open an account in Coinbase and enjoy the extremely user-friendly interface, so it's very convenient for beginners. As for more advanced traders, Coinbase Pro would be more appealing as it provides more features and indicators.

coinbase

 

2. eToro

eToro is one of the largest cryptocurrency exchanges, especially in the UK and Europe. More than 140 countries support the exchange, and it's considered one of the most secure exchanges in the world. They offer a wide range of digital assets and 14 of the leading cryptocurrencies, including Bitcoin, Ethereum, XRP, and more. One of their main advantages is the demo account that lets you try trading without using real cash. Furthermore, eToro is best known for its social trading platform and copy trading feature, so it allows you to trade cryptocurrency in a completely different way.

🌐 Website
www.etoro.com
Leverage
1:400
💼 Regulation
💲 Min Deposit
$200
Year Established
2007

Accepts US traders
Personal manager
Trading contests
Segregated accounts
Free education
Compensation scheme
Negative balance protection
Swap
Low spread eur/usd
Hedging
Islamic account
Affiliate program
Trading via API
Interest rate on funds
Copy trading
WebMoney
PayPal
Skrill
Wire transfer
Neteller

eToro established in early 2007, with a mission to make trading accessible to anyone, anywhere, and reduce dependency on traditional financial institutions. The company has head offices in the United Kingdom, Cyprus, USA, and Australia.

eToro (Europe) Ltd operates as a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. #109/10. Meanwhile, eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.

As for eToro AUS Capital Pty Ltd, the legal standing is acknowledged by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139.

A broker that belongs to the 4-digit type, eToro offers both short-term options for day traders and long-term options for investors, such as their innovative Smart Portfolios, a fully managed thematic portfolio.

Since 2007, eToro has been at the forefront of the Fintech revolution. The most recent was launched in 2017, which is Smart Portfolios powered by Machine learning Al. Beyond developing Smart Portfolios, the company integrated Microsoft's machine learning technology into Momentum DD.

The new Smart Portfolios investment strategy uses artificial intelligence to find the steadiest traders who are most likely to generate a double-digit return and bundle traders into one fully-managed portfolio. eToro has hundreds of financial assets for trading across several categories including stocks, commodities, crypto assets, currencies, indices, and ETFs. Each asset class has characteristics and can be traded using a variety of investment strategies.

Some positions on eToro involve ownership of underlying assets, such as non-leveraged positions on stocks and cryptos. Employing CFDs will enable a variety of options, such as leveraged trades, short (sell) positions, fractional ownership, and more. For example, traders can invest as little as USD100 in gold, even if a single unit of gold cost USD1,000. Some of eToro's most popular CFD commodities include gold, oil, natural gas, silver, and platinum.

Currencies are traded on eToro only as CFDs. Also, CFDs enable Sell (short) positions and leveraged trade, even for assets that don't offer the option in traditional trading. Some of the popular currencies include EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.

Furthermore, An Exchange-Traded Fund (ETF) is a financial instrument comprising several assets grouped to serve as one tradable fund. After opening an account in eToro, traders can invest as little as USD250 in an ETF that costs USD500. Some of the popular ETFs on eToro include SPY, VXXB, TLT, and HMMJ.

However, eToro also offers additional functions using CFD trading. All leveraged ETF positions in the UK are under FCA regulations. Meanwhile, all CFD positions executed by eToro Australia are under ASIC regulations.

The company has other advantages. In all financial assets that can be traded, eToro does not charge any deposit or trading frees other than spreads.

eToro charges a USD25 fee for withdrawals and the minimum withdrawal amount is USD50. Long (Buy), non-leveraged crypto, stock, and ETF positions are not executed as CFDs and do not incur any fees. eToro does charge overnight or weekend fees for CFDs positions, such as leveraged positions and short (sell) orders.

Fee updates always apply to open positions. Fees are subject to change at any given time and could change daily, without prior notice, depending on market conditions.

As a beginner, trader can use CopyTrading eToro. Different from the features of other brokers, traders can copy the strategies of professional traders without fee or profit-sharing. Therefore, 100% profit is fully owned by traders. For example, while trader A who is copied by trader B, produces a profit of 10% this month, then trader B also gets a profit of 10%.

The company is the world's leading social trading network. Since eToro operates in complete transparency, each trader has valuable information on their eToro profiles, so other traders that are interested to copy their trades can have assistance in creating their best portfolios.

Another feature that is unique to eToro is the personalized, social News Feed. Just like on any social media, traders can post their updates on feed, comment on other's posts, and gradually create a feed that is tailor-fitted to trader's trading and investing interests. On eToro social trading platform, traders will also get notifications when a trader writes a new post and many other important updates.

 

3. Gemini

Established in 2014, Gemini has earned a high reputation from traders worldwide. They currently offer 26 cryptocurrencies with Bitcoin and Ethereum as their main specialty. Gemini is well-known to be the platform that focuses on security and transparency, with most of the users' coins are stored in cold wallets and their site has never been hacked. So if safety is your priority in an exchange, Gemini is an excellent choice.

gemini exchange

 

4. BlockFi

BlockFi is a top exchange that allows you to lend and earn up to 8.6% interest on your holdings. So the exchange basically offers interest-earning accounts that allow you to earn money on all crypto that you hold in your account. Another interesting feature that you can get is that you're allowed to not only buy and sell your cryptocurrency, but also borrow against your coins. Rather than selling, you can take out loans in USD.

BlockFi

 

5. Kraken

Kraken has proven to be one of the best original crypto trading platforms since its establishment in 2011. They have a broad ion of at least 50 crypto and tokens to trade and invest in, including the ones that are considered riskier like DOGE. The exchange also allows crypto margin trading and offers advanced tools like crypto futures to attract expert users. However, the platform may not be as easy to use as the other platforms on this list. It is also important to note they are limiting the coin and token options for US customers.

kraken exchange

 

6. Robinhood

Robinhood may be an experienced service company for stock trading in the US, but it is a relatively new exchange for cryptocurrency trading that just started to operate in a few states in the US. As a crypto exchange, Robinhood only offers Bitcoin and Ethereum at the moment, but they offer free crypto trades on their platform.

The features offered by this exchange are still quite limited, but the app they provide is very easy to use and navigate. As for security, Robinhood claims that they mostly keep the deposited funds in cold wallets, which is safer. So even though there are still many rooms for improvement here, Robinhood already has the majority of the essentials needed for rookie traders.

Robinhood Exchange

 

7. Bitcoin IRA

Compared to other platforms mentioned here, Bitcoin IRA is a bit different because, unlike most exchanges, you're basically just exchanging currency and must pay taxes depending on your gains. So in other words, Bitcoin IRA is a combination of being a crypto wallet, an exchange, and an IRA. That means, the money inside your account is tax-free or tax-deferred.

Bitcoin IRA

 

8. Crypto.com

Crypto.com is one of the top crypto exchanges at the moment. The exchange is based in Hong Kong but offers a ton of support for US customers. By using this site, you are able to get solid rates for your crypto saving accounts. The only noticeable drawback of crypto.com is that the access for buying and selling cryptocurrencies is through an app rather than a desktop platform.

Crypto.com exchange

 

9. Binance

Binance is a well-known exchange that was founded in 2017. Since the beginning, the exchange focuses more on altcoin trading, so it's an excellent choice to trade certain currencies like Cardano or Neo. In fact, they offer more than 100 trading pairs with most of the pairs are between cryptocurrencies only and some others are fiat-cryptocurrency pairs.

binance exchange

Apart from that, the fees are also quite affordable. Binance only charges 0.1% for each trade and free deposits. Unfortunately, if we compare it to other top platforms, Binance's may not be the easiest one to navigate even though it covers the essentials. As for US customers, Binance has a specific platform called Binance.us that offers only limited coins and tokens compared to the international version.

See Also: List of Crypto Exchanges with Low Fees

 

10. Coinmama

Coinmama is a reputable exchange that was founded in 2013. If you're looking for a safe exchange, Coinmama is a good choice because it doesn't hold the user coins. Unlike other exchanges, Coinmama doesn't allow you to trade crypto with crypto, so you can only buy or sell cryptocurrencies. You can choose various payment options, including credit card, debit card, Apple Pay, and bank transfer.

Coinmama Exchange

Since Coinmama only facilitates buy and sell transactions rather than acting as a middle man, it can offer faster transaction time. In fact, the moment you order, you will immediately receive the coins without any cash deposit requirements.

At first glance, we can see that trading cryptocurrency is not much different than trading with stocks. But, there are certain things that only work in cryptocurrency trading. The most obvious one is that instead of a broker, you will need to open an account in an exchange to trade cryptocurrency.

Now when it comes to choosing the right exchange, it's important to acknowledge that every exchange has its own unique features and trading conditions. For example, while some exchanges focus on the platform, some others offer lower fees. Therefore, think about the essential factors and visit their official websites to fully understand what they offer.

It's best to review several exchanges before you finally decide which one is the best for you. If you're a beginner, the best exchange would be the one with high liquidity, low withdrawal fees, and many trading pairs. Also, exchanges with virtual or demo accounts are much more recommended as they can provide trading simulation for beginners' practice.