The cryptocurrency arena can be an intimidating yet at the same time exciting space to tap into. If you’re new in the crypto trading space, the first step to win is to trade using the best crypto trading platform in 2021.
Now, this wouldn’t be an easy pick considering that there are a lot of favorites in the cryptocurrency trading arena. So, should you go for the popular vote or try new players in the industry? If you’re lost and don’t know where to start, then keep your eyes right here.
What to Look for in a Crypto Trading Platform
Cryptocurrency used to be in the shadows but it has now intercepted the mainstream market. With the multitude of options in cryptocurrency exchanges, which one would work to your advantage? You want to look for specific qualities in a trading platform like allowing a wide selection of cryptocurrencies to trade, responsive and friendly customer support, low fees, and advanced technology and resources.
We’ll help you figure out your match by looking into the following qualities below:
Security
One of the primary considerations is security. You don’t want to play recklessly and trade all your cards with just any platform and then lose everything in a scam. Considering the fact that cryptocurrencies are not managed by any regulating body or third-party institution, your privacy and security may be compromised. You can avoid horror stories like these by using a reputable cryptocurrency trading platform. To avoid these, you need to check on the trading platform’s security features sucj as cold or offline storage, encryption, and two-factor authentication that could prevent hacking attempts.
Wide Selection of Coins
Versatility is also another quality you’d want to check into a crypto trading platform. Does it have a wide variety of cryptocurrencies to choose from in the platform? If you’re new at crypto trading, then you have to dip your feet into the familiar and make sure that the trading platform allows Bitcoin and other popular coins. Experienced traders are more risk-takers and would invest into the new or less-popular coins around. Investing in these coins earlier than usual would give you an edge and hedge against inflation.
Fees
As competition increases and risk decreases, fees in the industry will likely standardize and drop across the board. For now, you’ll find a wide variety. On robust exchanges, you’ll usually face a trading fee and potential extra commission costs.
Available in Your Country or State
Based on regulations, can you use the exchange while in your country and state? If an exchange isn’t available in your state now, keep an eye out, because companies are regularly expanding. On the flip side, if you’re using an international exchange, be aware of regulatory changes that might make it illegal to use an exchange in your country. Platforms should keep you up to date, but swift changes and poor customer service are not uncommon. So it’s a good idea to look out for yourself.
Wallet Options
Not every exchange platform comes with a wallet to house your crypto holdings. Being able to manage your wallet and trading in one platform could be more convenient. But if you’re holding a large amount of crypto, you probably want an external cold wallet for added security.
Mobile Apps
Crypto might be the currency of the future, but not every platform is on board with the technology of right now. A robust and user-friendly investment mobile app could help you manage your crypto account and make trades on the go without navigating a clunky mobile website.
Customer Service
Crypto platforms don’t always have the best customer service. This is a shame because if anything ever goes wrong with your account, you’re going to want an exchange that can quickly respond to your needs. If you happen to come across an exchange with high marks for service, this is a huge perk that could seriously improve your experience.
Coinbase – The Best Crypto Trading Platform in 2021
Coinbase is one of the best-known crypto trading platforms, and for good reason. It is particularly ideal for beginners, thanks to its intuitive user interface. That said, experts also appreciate Coinbase for its reputation and familiarity. Most experts who use Coinbase, however, will opt for Coinbase Pro.
The only downside is that the fees are higher than some of the other platforms on this list. However, Coinbase makes up for this with its convenience and variety of payment methods. Users also appreciate that Coinbase has been around since 2012 and has maintained a strong reputation since then.
Traders will also love the extremely high liquidity on Coinbase. This helps with efficient trades. This is also one of the rare exchanges with insurance, which helps it earn a spot among the best crypto trading platforms. Specifically, Coinbase has insurance protection for data breaches and stores user cash in FDIC-insured accounts.
Pros:
- Very User-friendly
- Has over 30 million+ users
- With a solid reputation and trusted name in the industry
- Coinbase Pro available for more experienced traders
- High liquidity
Cons:
- Steep pricing
- Poor customer service
Why Coinbase is the Best
Top-Notch Security
Another necessity for crypto exchanges is security. Users want to feel confident that their assets are safe. Coinbase has a stellar track record here. It has never been hacked or had a major cryptocurrency theft. It stores at least 98% of customer assets in cold storage, which means those assets are stored in offline devices. It has an insurance policy on assets stored online, and cash balances have FDIC insurance of up to $250,000 per customer.
User-Friendly
Usability is key for crypto exchanges. Cryptocurrency is already a complicated subject, especially for beginners. If new users feel like they need an instruction manual just to buy crypto, many will either give up or move on to a different exchange.
Coinbase is one of the most user-friendly exchanges. It has a straightforward design, and you can quickly pinpoint how to buy, sell, send, and receive crypto. The Coinbase site also has quite a bit of educational content.
Versatility in Coin Options
Among U.S. crypto exchanges, Coinbase has one of the widest selections, with over 40 cryptocurrencies available for purchase. It adds new coins regularly, with an example being how Coinbase now allows Dogecoin trading. If you want to explore altcoins (cryptocurrencies other than Bitcoin), you’ll have plenty to choose from with Coinbase.
Excellent Mobile App
Since many crypto investors want to be able to trade on the go, a quality mobile app is a must. Coinbase has a mobile app that’s available for Apple and Android devices. Like the website, the Coinbase mobile app is easy to use. You can use it to check your balances and buy, sell, and transfer crypto from anywhere.
Competitive Pricing
One of the few knocks on Coinbase is that its fees aren’t the easiest to understand. There’s both a flat transaction fee and a variable fee, and you pay whichever is greater.
Despite the fee structure being somewhat confusing, Coinbase’s fees are in line with what other top cryptocurrency exchanges charge. It may not have the lowest rates around, but you can buy crypto on Coinbase and know that you’re not getting ripped off.
Rewards or Perks
A cool perk that Coinbase offers is the opportunity to earn free crypto in its rewards section. There are a couple ways you can do this.
One option is to complete educational content about certain cryptocurrencies. Coinbase has modules that let you learn about specific coins, answer quiz questions, and get free crypto. For example, you could go through modules on Polygon and receive a few dollars worth of that coin for your trouble. It isn’t a lot, but it’s a nice incentive to learn about crypto.
Coinbase also has rewards offers if you refer friends or set up a recurring crypto purchase.
Coinbase Pro for Advanced Users
In addition to its standard version, Coinbase also has a more advanced version called Coinbase Pro. Fees are a bit lower with Coinbase Pro, and it also has far more features, including advanced charting tools and more transaction options. It doesn’t cost anything to open a Coinbase Pro account, and it’s a quick process if you already have a Coinbase account.
The fact that there are two versions of Coinbase means it can appeal to a much wider audience. Beginners and those who prioritize ease of use can get that from Coinbase. Advanced investors can find the features they need on Coinbase Pro.
Since crypto has exploded in popularity, we’ve seen more places to buy it than ever. Even with all that competition, Coinbase has managed to hold on to its place as the biggest U.S. crypto exchange. It’s smart to compare your options before committing to an exchange, but if you go with Coinbase, you’ll likely be happy with your decision.
There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide what features that matter most to you.