Coinbase is one of the best exchanges for a beginner to start trading. It is a safe, legit exchange since it is registered in about 40 countries. It has a simple user interface. And you can use fiat currencies to buy crypto. Also, it accepts different payment methods such as bank transfer, PayPal accounts etc. Coinbase Pro is a trading platform for advanced users.
There are a few negatives. You can trade only a limited set of assets. Also, Coinbase has strict KYC requirements. It can suspend your account if you flout rules. And it can expose your transaction details to tax authorities, if demanded. Plus, the fees are quite steep compared to other exchanges.
Binance helps you perform crypto-to-crypto trades. You can trade in more than 100 cryptocurrencies. Binance has its own Ethereum-based crypto token called Binance Coin. And Binance has one of the lowest trading fees in the world. Also, it has recently started accepting fiat currencies for trading. It has a two-factor authentication system and hence quite secure.
The negatives are: the exchange is a bit difficult for a beginner to trade. And the customer support is not all that great. Also, you can’t use popular methods like bank transfer, debit card or credit card to deposit cash on the exchange. (You need to deposit crypto.)
Kraken is a secure exchange and it’s never been hacked. It uses a two-factor authentication. And it is probably the only exchange listed on the Bloomberg terminal. You can trade using several fiat currencies. And you can trade in more than 30 different cryptocurrencies. It has one of the lowest trading fees among crypto exchanges.
Though it provides a lot of useful information for customers on the site, customer service is still a huge issue.
Gemini is based in New York and is one of the most secure crypto exchanges. It was started by the famous Winklevoss twins. It started with only trading in Bitcoin and Ether and now allows you to trade a few more cryptocurrencies. And you can use a fiat currency (US dollar) to trade. The fee structure uses a sliding scale and that means you get charged lower fees if you trade more.
The negatives for the exchange include the requirement of a lot of personal information to register and the choice of currencies to trade are quite limited.
Coinmama is based in Israel and it’s a truly global exchange available in more than 150 countries. The pros include a high level of security and the ability to trade using fiat currencies. And also, you can use your debit card or credit card to deposit cash into the exchange. The customer support is quite good. And the interface is user-friendly.
The downside is that you have a limited number of currencies to trade.
eToro is based in Israel. It is quite secure. A significant feature of the exchange is that it allows you to copy the trades of popular and successful investors and hence you don’t have to do a lot of research. Also, it has a user-friendly interface and the fees are reasonable. Plus, it offers a wide range of cryptocurrencies to trade.
The negatives include a relatively high fee structure and the customer support is not all that great.
Kucoin is a secure, user-friendly exchange. You can trade in a wide range of cryptocurrencies. And also, the exchange allows deposits through different fiat currencies. The most important feature of the exchange is that it has no user verification and hence you can trade anonymously. Plus, the fees are quite reasonable.
The downside is that the trading volume of the exchange is low and hence you will not have the required liquidity for certain cryptocurrencies.
Bitfinex is based in Hong Kong. It is an exchange built for the advanced crypto trader. And the user interface is a bit complicated, but it can handle a variety of orders. Also, it offers margin trading. You can trade in different derivatives as well. Another advantage is that if offers anonymous trading facility; you just need to provide an email address to get started. Plus, the customer service is good.
The negatives include non-availability for US users and several security incidents in the past. Also, there are questions about the overall transparency of the exchange.
CEX is an exchange based in London. It is a secure exchange and is registered with multiple regulatory authorities. It offers both brokerage and trading services. And you can buy a range of cryptocurrencies with fiat from the brokerage service. Its trading platform helps you trade in a variety of crypto assets.
The negatives include the need to provide a lot of personal information since it insists on meeting the KYC and AML norms. Also, the trading fee is relatively high and the customer service is not all that great.
BitMEX (Bitcoin Mercantile Exchange) is a market-leading crypto derivatives platform based in Seychelles. It is a derivatives trading platform meant for advanced traders. This means that you actually buy and sell contracts on cryptocurrencies and not the currencies themselves. And the exchange offers margin trading. Plus, your cryptos are safe because the exchange uses a cold multi-signature wallet.
The cons for the exchange include unsuitability for customers new to crypto trading and a complex trading interface. Also, there is no support for fiat currency deposits.