5 Best Crypto Exchanges for Beginners
These are the easiest crypto exchanges to use!
#1 | Coinbase
One of the old-school exchanges. Coinbase is one of the largest cryptocurrency exchanges in the world. Traders enjoy a low 0.5% trading fee and a simple, easy to use exchange. Coinbase the best crypto exchange to trade altcoins on.
#2 | BlockFi
BlockFi is an excellent crypto exchange for beginner traders. With an easy-to-use platform and a welcoming and helpful customer support team, beginners can seamlessly find their footing within the industry.
#4 | Coinmama
Coinmama, founded in 2013 remains one of the worlds oldest cryptocurrency exchanges. They have shaped their platform to provide an effortless experience for beginners and is one of the best exchanges for traders who don't want to be bombarded with complicated tools.
There has been an immense growth of cryptocurrencies over the last couple of years.
This has led to the development of cryptocurrency exchanges, giving you the tools to buy and sell digital currencies.
All in all, there’s still massive scepticism around the credibility of some of the trading platforms we have today, and that’s with good reason.
While we have a few great crypto exchanges, the majority are pretty easy to hack.
Since no one wants their crypto coins stolen by hackers, we will discuss 5 of the best crypto exchanges for beginners in this article.
On top of that, we will cover a comprehensive guide on cryptocurrency exchanges for beginners.
Keep reading to find out more!
Best Crypto Exchanges for Beginners
Here are the top cryptocurrency exchanges for beginner traders in 2021...
1 | Coinbase
As we have seen, Coinbase is hands down one of the well-known cryptocurrency exchange platforms, and with good reason. It has proven to be a safe platform with a wide range of market-friendly products and services. Everyday, Coinbase is expanding their customer base by adding new users.
2 | BlockFi
Whether you are a crypto-guru or you’re preparing to dive head-first into this market, BlockFi brings financial products that will make this experience smooth for you. That’s because it offers one of the fastest credit lines in history. More importantly, you’ll also get a chance to worth with a smooth platform that’s ideal for any trader.
3 | Binance
Binance ranks as a world-leading cryptocurrency exchange delivering nothing but high-end services to its clients. With the world's leading crypto products, global presence and largest crypto offerings, there are few to complete with this platform. Above all, Binance takes its security systems seriously; that's why it's constantly updating the technology.
4 | Coinmama
Ultimately, CoinMama is a safe and quick way to purchase cryptocurrency. Whether you use a bank card or a bank transfer, their rates are the best on the market. And the best part; you'll have your Bitcoin in your wallet in minutes.
5 | eToro
eToro is one of the more famous brokers on the market today. Not only for cryptocurrencies but also the regular markets. eToro is a beautiful hybrid between the two worlds and uses its great customer service and user-friendly platform to cater to traders of all backgrounds.
What are the Different Types of Crypto Exchanges?
- Retailer Crypto Exchanges
The most popular type of crypto exchange is retailer crypto exchanges.
They cater to everyone ranging from experienced traders to beginners in the metaverse.
The major way that different cryptocurrency exchanges set themselves apart is through quickness and usability.
Something you will notice with retail crypto exchanges is that they come with a user-friendly interface that helps simplify transactions.
Retail crypto exchanges are usually custodial.
That means these exchanges store the private keys on behalf of the users.
That ensures the users don’t have to dig out their keys and enter them whenever they are making a transaction.
That makes retail exchanges more user friendly.
However, that puts consumers in danger of losing their funds in case the exchange gets hacked.
- Peer to Peer (P2P) Exchanges
Peer to Peer exchanges promotes direct wallet to wallet trades between two individuals.
That’s unlike retail exchanges that centrally manages all orders on an order book.
In peer to peer exchanges, the users publicly indicate how much cryptocurrency they’d like to sell or buy.
In return, other users contact the seller and directly start negotiating.
Once the deal is sealed, the buyer and seller coordinate the transfer of cryptocurrencies through wire transfers, gift cards, bank transfers or any other available method.
All in all, peer to peer transactions could either be custodial or non-custodial.
- Decentralized Exchanges
Decentralized exchanges are the new wave of non-custodial crypto-to-crypto exchanges.
Unlike the retailer or peer to peer exchanges, decentralized exchanges don’t handle funds. Instead, they employ protocols and networks that programmatically facilitate the transfer of funds from a user’s wallet to the direct wallet-to-wallet trades.
The fact that decentralized exchanges don’t retain the user’s funds, offer users more privacy.
In this case, there are no third-party monitoring transactions.
The decentralized nature also eliminates the dangers of the users’ funds being lost in a cyber-attack.
- Centralized Exchanges
The centralized crypto exchanges have so much in common with the traditional stock exchanges.
The exchanges act as the middlemen between buyers and sellers.
Due to its centralized nature, it means that users simply entrust their money to someone else.
A major disadvantage with centralized exchanges is the fact that they are highly vulnerable to hacking.
However, centralized exchanges are a bit beginner-friendly.
That’s because they offer a familiar and less complicated way to invest and trade your cryptocurrencies.
Choosing a Crypto Exchange
When choosing the best crypto exchanges to work with, there are certain variables you need to pay attention to.
- The Payment Methods
Before choosing a cryptocurrency exchange, you also need to consider the different possibilities for depositing funds into your account.
The process of buying cryptocurrencies differs depending on the platform.
While some exchanges need bank transfers, others need debit cards, credit cards and PayPal.
At the same time, there are some exchanges that only accept Bitcoin for purchases.
In essence, the more payments methods a cryptocurrency exchange provides, the more convenient it is for the users.
That said, before you settle for a specific exchange make sure it accepts all the payment methods you want.
If you don’t have cryptos before joining an exchange, find a platform that accepts fiat currencies.
- User Friendliness
People who are just getting started in the crypto realm and don’t know much about selling and buying cryptocurrencies may have a hard time getting started.
That’s why a major aspect that every beginner needs to consider when choosing the best crypto exchanges is user-friendliness and functionality.
A simple and easy to understand user interface helps users make more efficient and informed actions on the exchange.
All in all, you must remember that user experience can be very subjective.
So, different people are likely to appreciate different things.
That said, ensure you find a UI you like and can fully commit to.
- The Trading Pairs
Most globally known crypto exchanges allow you to trade the popular cryptos such as Ethereum USDT, Bitcoin and Litecoin.
However, you want to choose a crypto exchange that offers a wide range of coins.
Having a wide scope of offered coins gives you the chance to diversify your trading options.
Now that cryptos are receiving mainstream attention, diversity is very crucial.
But if you want to trade the rarer altcoins, you will need to find dedicated crypto exchanges.
- Order Limits
Another thing you need to consider when choosing the best crypto exchanges for beginners is the order limits.
It’s important that you check if there are any limits to how much money you deposit to your trading account.
Also, check if any limits have been set to how many cryptocurrencies you can purchase or sell in a certain period or transaction.
At the same note, make sure you also check if there’s a limitation to how much money you can withdraw from your account after trading.
- Transaction Fees
Particularly if you plan on being an active trader, you must understand that transaction fee will be a significant part of your cryptocurrency trading.
For that reason, you must understand the various fees structures presented by different crypto exchanges.
It’s crucial that as a beginner trader to understand how much fees are required to buy or sell cryptocurrencies.
This applies to every stage of the transaction starting from the deposit to trading to withdrawal.
The good thing is that you will find many exchanges offer a wide range of discounts worth exploring.
- Accepted Countries
Accessibility of cryptocurrency exchanges may seem obvious but you must remember not all are available and supported globally.
And that’s because the crypto industry is always heavily regulated by the local financial regulations.
When choosing the best crypto exchanges for beginners, make sure they are available in the user’s country for convenience.
- Ease of Access
When choosing the best crypto exchange, something that most people tend to overlook is how they’d like to access their trading account.
Well, here’s to remind you that it’s an equally important factor to consider.
Most exchanges today allow you to access your trading account via the web browser.
While the web browser might seem like a pretty good option, it’s not ideal for people who want to buy and sell cryptocurrencies on the go.
It’s better to source for a cryptocurrency exchange that supports mobile trading on either different operating system.
That ensures you can view your trading account while on the go.
- Security of Your Coins
Security of your cryptocurrencies and data is another thing you need to prioritize when choosing the best exchange for a beginner.
Most exchanges we see today come with a centralized fund storage.
That means, the security of your coins highly depends on the security measures the exchange platform takes.
If you want to understand the security protocols your selected exchange offers you need to read their precautionary and security clauses.
Their website should at least offer features such as;
- SSL Site Security Certificate
- Cold Storage Wallets
- Multi-layered Verifications
- Easy transfers between the exchange and client’s hardware wallets
- Two-factor authentication
Frequently Asked Questions
As seen in this article, it's always crucial to consider all your requirements before settling for any exchange.
Make sure you select the appropriate exchange for your needs.
Whether you want the most currencies, the lowest fees, or the most effortless experience, there is a decent alternative for you.
All you need is a funded account to buy your first bitcoin, whether through our overall winner Coinbase or a competitor like Binance.