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These days, it seems like everyone wants cryptocurrencies. A crypto exchange is required to purchase and sell cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. To join in on the fun.
ROI ADVISERS has combed through mountains of data and the major exchange offers to identify the best cryptocurrency exchanges for beginners. All of them, however, are accompanied by a disclaimer: Cryptocurrencies are speculative investments, and you should only make them if you’re ready to accept large price fluctuations and the potential loss of all your money.
What are Cryptocurrency Exchanges?
Exchanges for cryptocurrencies bring together sellers and buyers of digital assets to establish a market. Order books are commonly used by most exchanges, allowing investors to execute buy and sell orders for cryptocurrencies at any given time and at whatever price they want. Because you can’t manage your private keys on these centralized systems, cryptocurrency exchanges cling onto your digital assets.
A cryptocurrency brokerage is quite similar to a cryptocurrency exchange. However, the price of a crypto asset on an exchange is directly decided by investors’ buy and sell transactions and not by cryptocurrency brokerages. Technically speaking, Robinhood is a crypto broker, whereas Coinbase is a cryptocurrency exchange.
How We Choose the Best Cryptocurrency Exchanges for Beginners?
CoinMarketCap.com’s top 10 primary cryptocurrency exchanges were examined by ROI ADVISERS based on their beginner-friendliness, site traffic, liquidity, and volume of trading, as well as their accessibility to clients in the United States.
This data was then used to analyze essential characteristics including the varieties of cryptocurrencies accessible on each exchange, the fees, cybersecurity features (according to the crypto exchange protection rating agency CER.live), user evaluations, and instructional materials, among other things. These data points were weighted based on their significance for various sorts of bitcoin investors to generate exchange rankings.
What Makes an Exchange Suitable for Beginners?
Selecting the perfect Bitcoin exchange for newbies necessitates keeping things simple. To trade successfully online, you must choose a platform that makes things as simple as possible for you to understand. Many popular websites allow you to be as involved or as detached as you choose.
In this review, we’ll show you how you may be cut out of the trading process entirely. Simply enter how many tokens you’d like and pay the required amount instead. This saves you the time and effort of looking through price charts, token lists, and everything in between.
If you’re interested in learning more, check out our Binance guide. With its list of currency pairs, graphs, and numerous automated trading options, this exchange is more like a typical online trading platform than anything else. This is a lot more difficult for novices to understand. Taking greater control, on the other hand, rewards you with somewhat competitive pricing and the ability to respond more rapidly to changes in price.
An excellent starting point is to seek a discussion board that doesn’t overload you with analytical data and graphs. You only need to be able to see a selection of purchasing alternatives, along with the corresponding pricing.
The Top Beginner Exchanges
Binance
Binance is a cryptocurrency exchange that was established in 2017 with an emphasis on trading alternative cryptocurrencies. Binance has over a hundred different trading pairs available for users to choose from. In addition, there are several fiat-crypto pairings offered by it.
As of July 2021, Binance will be the world’s largest cryptocurrency exchange, accounting for a large share of daily crypto trading activity. The exchange only accepts deposits in U.S. Dollars via SWIFT from global consumers, however, you may use a credit or debit card to directly buy a limited amount of cryptocurrencies. Twelve additional fiat currencies, including the Euro, may be used for deposits.
Those interested in trading or investing in obscure cryptocurrencies should use Binance. Traders looking for more extensive analytics than most other exchanges would like Binance’s selection of over 50 different cryptocurrencies. There are many useful tools in your account, especially when you factor in the low costs and ability to chart your results.
Key features
- Brand is a world-renowned cryptocurrency trading platform.
- The ability to purchase, trade, and sell more than 50 digital assets
- Several methods of making a USD deposit are available.
- Low costs, a large volume of transaction, and reduced trading fees
- Beginner and expert platforms are available for spot trading.
Pros
- There are more than fifty different cryptocurrencies.
- Reputable
- Low-cost service costs
- A user-friendly website design
- Exceptional safety and security
Cons
- Seven states in the United States don’t have it.
- Customer service is atrocious.
What makes it a good choice for beginners
In addition to being the most prominent digital coin, it provides a fairly broad list of currencies.
Coinbase
The bitcoin sector has had its share of scams, but Coinbase has remained mostly unscathed. To make cryptocurrency investing more accessible, Coinbase offers a user-friendly exchange that eliminates many of the complexities usually associated with the field.
Investors and traders may deposit their money in protected custodial wallets on Coinbase. Your money is held in FDIC-insured bank accounts, which is significant because customers have reported their accounts being stolen and their monies being drained. They carry insurance against data theft and hacking. The Coinbase custodian accounts are a great way for novice users to get their feet wet, but the security tokens to the coins belong to Coinbase and not to the investor in these accounts.
In addition, Coinbase provides the free Coinbase Pro version, which has a different charge structure but is less expensive, as well as substantially more charting and indication choices. Because it adds features that both beginners and expert users would find useful, Coinbase Pro is a great next step after using Coinbase.
Key features
- Exchanges with the lowest trading fees for newcomers to cryptocurrency
- With bank transfers or credit/debit cards, you may purchase cryptocurrency.
- Monitoring your crypto portfolio on a website or app has never been easier.
- Indicators and trading tools for sophisticated users are available in Coinbase Pro
- Learn about crypto and earn free cryptocurrency by staking your own.
- a safe place to keep your bitcoins and other digital currencies
Pros
- One convenient location to keep an eye on your coinage
- A user interface designed with novices in mind
- Insured
- Buying Bitcoin is simple and quick.
- A large and diverse selection of alternative cryptocurrencies
Cons
- Not as cheap as other cryptocurrency exchanges
- Limited possibilities for making payments
- Wallet used as a security deposit
What makes it a good choice for beginners
Due to its ease of use, security, and clear pricing, we chose Coinbase as a cryptocurrency exchange for beginners. In addition, Coinbase provides Coinbase Pro, which has a reduced cost structure and substantially more charts and indicators than the free version.
Kraken
Kraken is a San Francisco-based Crypto exchange that was established in 2011. By traffic, liquidity, and spot market trading volume, this exchange is ranked in the top 5 in the world. Except for clients in Washington State (WA) and New York, Kraken is a licensed and regulated cryptocurrency exchange in the United States by FinCEN (NY).
Kraken offers 54 cryptocurrencies, including Bitcoin, Ethereum, Tether USD, XRP, and Litecoin, for purchase and sale. Other well-known DeFi tokens are Compound (COMP), Kava (KAVA), and Kyber Network (KYB) (KNC). By combining automated portfolio management with advanced trading choices, customers can keep tabs on the market while managing their investments from a single screen.
Key features
- Licensed and regulated crypto based in the United States
- Most states in the United States are in favor of it.
- The world’s fifth-largest market by volume and liquidity
- Trading costs that are low and competitive
- Customer service will be provided by full-time employees who will be available around the clock.
Pros
- Features that ensure your safety
- A visually appealing interface
- Reputable online resource
- There are seven fiat currencies in existence.
- There are more than fifty different cryptocurrencies.
Cons
- Account verification takes a long time.
- Customer service is poor.
What makes it a good choice for beginners
Starter, intermediate, and pro are Kraken’s three account tiers. Deposits, swaps, and withdrawals of cryptocurrencies are all possible with a basic account.
eToro
eToro is a strong and user-friendly trading platform for beginners in the United States that allows you to acquire cryptocurrencies. Using a virtual portfolio, users may practice trading in major digital currency pairings, altcoins, or other cryptocurrencies on the site.
Like Uphold, eToro charges a spread solely for the real asset when buying cryptocurrencies. Each digital asset has a different spread fee, and it fluctuates based on the market. The charge for buying and selling Bitcoin, for example, is 0.75 percent for each transaction. Other cryptocurrency exchanges, such as Coinbase, charge between 0.5 percent and 3.99 percent for transaction fees; this one does not.
Key features
- Real crypto assets may be purchased through a regulated US source.
- Use your credit or debit card, a bank transfer, or PayPal to purchase cryptocurrency
- The mobile trading app has an intuitive user interface.
- Profitable crypto traders can be copied on the site.
- Put your money in the crypto-currency portfolios of successful investors.
Pros
- There is no fee for using cryptocurrencies.
- A user-friendly interface
- Signing up is simple for crypto investors in the United States.
- Several different coins are exchanged (BTC, ETH, etc.)
Cons
- Fees for trading are excessive.
- Customer service is lousy.
- There is just one currency per account.
What makes it a good choice for beginners
When it comes to trading the most popular cryptocurrencies, eToro may be the best option for those who seek a straightforward and reliable platform.
crypto.com
Crypto.com is a premier crypto exchange and trading software available in all 50 states of the United States, with over 1 million users worldwide. Using the Crypto.com app, you can buy, sell, trade, store, earn, loan money and even pay bills using cryptocurrency all from one place.
CRO, Crypto.com’s unique native digital token coin, allows for low trading costs when trading cryptocurrency for fiat and stablecoins. On a simple smartphone app, the user interface is quite intuitive.
Key features
- Quick account verification for new users.
- Low spreads and a large order book with lots of liquidity
- costs depending on trading volume that are reduced as it increases
- Crypto CFD trading platform with margin
- No trading costs for new members for the first 3 months
Pros
- Exceptional safety and security
- Low-cost service costs
- collects massive amounts of digital currency
- Get a $50 welcome bonus when you sign up.
- Promotions that are repeated
Cons
- App system that’s difficult to understand
- Customer service is atrocious.
- Lack of confidentiality
- Unknown financing source
What makes it a good choice for beginners
Users may earn an income of up to 12% by investing their coins in the exchange’s Crypto Earn program, which is available for a renewable term of 1 or 3 months.
Coinmama
Coinmama makes it simple to purchase or sell digital currency in nearly any country, including the United States, quickly, safely, and easily. Over 2.6 million consumers have used Coinmama since it launched in 2013. The exchange allows fiat currencies such as the US dollar, the Australian dollar, the euro, the British pound, and the Canadian dollar (CAD).
Residents may choose a quick and secure payment option to get started with Coinmama, which lets them buy crypto with a VISA or Mastercard credit/debit card. The transaction costs and credit card costs, on the other hand, are quite high.
Key features
- Easy to sign up and verify your identity
- Provides the ability to purchase and sell the most popular cryptocurrencies.
- Credit cards, bank transfers, and Apple Pay are all supported.
- The US Dollar Loyalty Program reduces trading costs by accepting six fiat currencies.
- Customer service that is quick to respond
Pros
- A commitment to excellence in client service
- A user-friendly web interface
- Pricing data that is updated in real-time
- BTC is being sold straight away.
- Available in a variety of languages
Cons
- There isn’t an app for mobile devices.
- Inexpensive fees
- Absolutely no crypto-crypto exchanges have ever taken place.
- If you want to sell Bitcoin, you’ll need a European Union bank account.
What makes it a good choice for beginners
Brokerages, as opposed to exchanges, sell their cryptocurrency to investors. Coinmama is a cryptocurrency exchange that provides 10 cryptocurrencies (plus Bitcoin) that they may sell to you at extremely competitive rates.
Final Thoughts
Our recommendation is to start with Coinbase, upgrade to Coinbase Pro once you are competent, and then use Binance to trade a variety of cryptos when you are capable to do so. Consider using the Bitcoin trust for some exposure instead of Coinbase/Coinbase Pro Binance or Kraken for a little more sophisticated option. Once you’ve mastered cryptography, you’ll be able to examine all of the options listed above to choose which one is best for you. To put it another way, begin with the most prevalent and straightforward alternatives before moving on to the more complex ones.
