The crypto industry is piquing the interest of all types of investors, from beginners to professionals. If you are buying, selling, or trading crypto to make a profit, you will want to make sure you use a secure and user-friendly platform or app. With so many options, it’s easy to get overwhelmed when searching for an app that suits your needs. Fortunately, we’ve done a lot of the research for you. Keep reading to learn more about the best cryptocurrency exchange apps for beginners in 2021.
eToro
eToro has been one of the most popular online trading platforms since its creation in 2008. At first, eToro was explicitly created for the foreign currency exchange market. Since 2009, the company has dramatically expanded its trading options for web-based and mobile app platforms. In 2017, eToro announced that they would allow traders to buy and sell cryptocurrencies on their platform. Since then, eToro has quickly become one of the best crypto exchanges for international use.
Main Features
eToro has a special section of its platform where multiple coins and altcoins can be bought and sold for cryptocurrency trading. There are two main ways to participate in crypto trading on this platform. First, you can invest in crypto with no leverage where you own the underlying asset, and it is stored in a crypto-cold wallet on your behalf. Second, you can invest in crypto by using leverage and even short the asset by using a CFD or contract for difference. If you choose the latter, you will not own the underlying asset, and instead, you are simply speculating on whether the price of the cryptocurrency will rise or fall.
Each cryptocurrency and altcoin has its own unique page with historical financial data, a brief history of the coin, a trade button that can be pressed to initiate crypto trades, and a live chat room where users participate in discussions related to that specific cryptocurrency.
eToro also allows users to trade cryptocurrencies against other cryptos in selected markets by trading cryptocurrency in pairs. Only certain coins can trade against specific cryptocurrencies, so if you are looking to trade crypto against another, you will have to determine which cryptos you can trade for based on what you own. You can also put in stop-loss and take-profit trades that will automatically complete the transaction on your behalf once the value of your losses or profits hits a certain predetermined threshold.
Another main feature of eToro that is worth highlighting is its Social Trading dynamic. eToro showcases specific traders who have had recent and demonstrated success on the platform. You can view their current portfolio, see their positions, and even “copy” them to have the platform automatically complete trades on your behalf that mimic the trades of the investor you choose.
Trading Fees
The selling of Bitcoin comes with a 0.75% fee, while other altcoins may have a processing fee between 1% and 3%, depending on the specific cryptocurrency type. For other transactions, like buying and selling index funds, stocks, currencies, commodities, etc., fees vary. Visit the eToro website for a fee schedule for other non-crypto transactions.
Supported Currencies
Cryptocurrency exchange currencies: Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), Dash (DASH), Litecoin (LTC), Ethereum Classic (ETC), Cardano (ADA), IOTA (MIOTA), Stellar (XLM), EOS (EOS), NEO (NEO), Zcash (ZEC), and Binance Coin (BNB).
Traditional currencies: While the preferred traditional currency for eToro is the USD, eToro does accept deposits from 14 other currencies (EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN, CZK). Conversion fees are charged whenever a currency needs to be converted to USD.
Deposit Methods
There are several different deposit methods to transfer money from your personal bank account to the eToro platform. Simply find the “Deposit Funds” link, and select a deposit method and amount. Some options include credit card, debit card, PayPal, ACH wire transfer, Skrill, NETELLER, and UnionPay. Once the funds are verified and added to your eToro account, you can immediately make transactions.
There are several different deposit methods to transfer money from your personal bank account to the eToro platform. Simply find the “Deposit Funds” link, and select a deposit method and amount. Some options include credit card, debit card, PayPal, ACH wire transfer, Skrill, NETELLER, and UnionPay. Once the funds are verified and added to your eToro account, you can immediately make transactions.
Ratings
Overall, eToro ranks exceptionally high when it comes to the user interface and ease of use. The platform is well-liked by most users, and eToro has a well-respected reputation for cyber security. The main downside is that the fees can be higher when compared to other online trading platforms.
Pros:
- Excellent user interface that is easy to use and navigate
- Registration is quick, and funding an account is easy
- Transparent fee structure
- High-level security
Cons:
- Higher fees compared to other platforms
- Limitations on which cryptocurrencies can be traded against other coins and altcoins
Coinbase (Coinbase Pro)
Coinbase is viewed by many people as the best crypto exchange for novice and professional traders living in the United States. Coinbase is also the most common cryptocurrency exchange or crypto trading platform for new crypto investors. When Coinbase was founded in 2012, it became a fully regulated and licensed cryptocurrency exchange available to residents in every state in the US except for Hawaii. In the beginning, Coinbase only allowed the buying and selling of Bitcoin, but now they have opened up trading to over 25 types of cryptocurrencies. As Coinbase is the ideal trading platform for novice traders, Coinbase Pro offers a much more in-depth experience for professional traders with much lower fees.
Main Features
Coinbase is a straightforward online crypto trading platform that is entirely browser-based. Trading can be done from any PC, android, or iOS device; however, there is no mobile crypto app, which is a pitfall for some traders. Whenever you log in, you are immediately shown your portfolio balance and its performance history.
Another great feature of Coinbase is the ability to set up recurring purchases. You can set up recurring orders to happen daily, weekly, monthly, or on the 1st or the 15th of every month.
Coinbase Pro has all the same main features as Coinbase, just with more bells and whistles, including in-depth, real-time charts and the ability to perform margin trading.
Trading Fees
Fees for online transactions on Coinbase and Coinbase Pro are different from one another, and they differ percountry or region. Coinbase can have pretty high fees when compared to other trading platforms. For example, Coinbase charges the following percent-based fees for all online transactions, whether depositing or withdrawing.
- Bank account: 1.49%
- Coinbase USD crypto wallet: 1.49%
- A debit card or credit card: 3.99%
- ACH transfer: Free
- Wire transfer: $10 incoming / $25 outgoing
- Crypto conversion: 2%
The fees above are in addition to the Coinbase variable spread fee that is applied to all purchases and trades. For any transaction below $10,000, Coinbase charges an additional 0.50%. Any transaction above $10,000 but below $50,000, a fee of 0.35% is assessed. As the amount of the trade continues to increase, the fee percentage decreases. In addition to the deposit/withdrawal fee and the variable spread fee, there is a Coinbase Fee. This fee starts at $0.99 for transactions less than or equal to $10 and continues to climb as the transaction amount increases. The fee structure can be taxing and complicated when using Coinbase.
The fees for Coinbase Pro are simpler and a bit less expensive than Coinbase. Transfers from digital assets and ACH transfers are free, wire transfers are $10 to deposit and $25 to withdrawal, and then there is a sliding scale of taker and maker fees based on the transaction amount. For example, any transaction below $10,000 will see a taker and maker fee of 0.50%. Any transaction from $10,000 to $50,000 will have a maker and taker fee of 0.35%. Once you get above $50,000, the maker fee becomes significantly lower than the taker fee. For a transaction amount between $50,000 and $100,000, the taker is charged 0.25%, while the maker is charged only 0.15%. The fees continue to decrease as the transaction amount increases.
Supported Currencies
Current cryptocurrencies and altcoins available on Coinbase and Coinbase Pro include: Aave (AAVE), Algorand (ALGO), Cosmos (ATOM), EThe Balancer (BAL), Band Protocol (BAND), Basic Attention Token (BAT), Bitcoin Cash (BCH), Bancor Network Token (BNT), Bitcoin Satoshi’s Vision (BSV) (Send Only), Bitcoin (BTC), Celo (CGLD), Compound (COMP), Civic (CVC), Dai (DAI), Dash (DASH), districtOx (DNT), EOS (EOS), Ethereum Classic (ETC), Ethereum (ETH), Filecoin (FIL), The Graph (GRT), Golem (GNT), Kyber Network (KNC), Chainlink (LINK), Loom Network (LOOM), Loopring (LRC), Litecoin (LTC), Decentraland (MANA), Maker (MKR), Numeraire (NMR), NuCypher (NU), OMG Network (OMG), Orchid (OXT), Ren (REN), Augur (REP), Synthetix (SNX), USD Coin (USDC), Universal, Market Access (UMA), Uniswap (UNI), Wrapped Bitcoin (WBTC), Stellar Lumens (XLM), Ripples (XRP), Tezos (XTZ), Yearn.finance (YFI), Zcash (ZEC), and 0x (ZRX).
Deposit Methods
Coinbase and Coinbase Pro accept bank transfers, transfers from Coinbase crypto hot wallet and crypto cold wallet, debit card, credit card, ACH transfers, wire transfers, and crypto conversions.
Who is Coinbase Best For?
Whether you are looking at Coinbase or Coinbase Pro, both are designed with inexperienced traders in mind. Coinbase Pro has many more features than Coinbase to meet the needs of more experienced traders. However, many professionals may prefer a different crypto exchange with smaller fees. New investors will enjoy Coinbase’s educational program and recurring purchases features.
Ratings
Overall, Coinbase may be a good place to start and to learn the proper ways to invest in crypto, but once you gain some experience, you may want to seek out another platform or upgrade to Coinbase Pro.
Pros:
- Many cryptocurrencies and altcoins are available to be traded
- One of the easiest ways to invest in crypto
Cons:
- High fees
- Some cybersecurity issues were reported
Kraken
Kraken is an alternative crypto solutions option that allows users to invest in cryptocurrencies with some of the lowest fees available on the market. Kraken began operating in the US in 2011. It has become extremely popular due to its low fees and a vast selection of coins and altcoins available to the average trader as well as large investment firms. Another reason Kraken is popular is the quality of its mobile app, where users can make real-time and instant transactions while on the go.
Main Features
Kraken’s most popular features are its low fees and vast selection of cryptocurrencies. Other features that make Kraken the crypto exchange of choice for many people are the simplicity of its mobile app, the ability to buy crypto directly with a number of different traditional currencies, and that crypto trades conducted on the Kraken platform are instant. There is also a 24/7 live chat feature to support Kraken users. Kraken also allows margin trading, futures trading, and several stop-loss and take-profit trades. Users may also conduct Forex trades as well as stake their crypto or traditional currency to earn interest. Kraken has proven to be reliable and secure through many years of operation.
Trading Fees
Simple fee schedule: Maker fees range from 0% to 0.16%. Taker fees range from 0.10% to 0.26%.
Supported Currencies
Traditional currencies: USD, EUR, GBP, JPY, CAD, CHF, and AUD. (Not all types of crypto can be purchased with every type of traditional currency. Certain restrictions apply). Cryptocurrencies: There are over 50+ different cryptocurrencies available, and Kraken even allows users to trade in DOGE coins. Far too many coins to list. However, if you are looking for a trading platform with the largest selection of supported cryptocurrencies, Kraken may be for you.
Deposit Methods
ACH bank transfers, Fedwire, SWIFT, wire transfers, Apple Pay, Google Pay, SEPA, credit card, debit card, cryptocurrency transfers, or trades.
Who is Kraken Best For?
Kraken is not designed for the novice trader. This online crypto trading platform is geared for intermediate or advanced traders as well as investment firms. Kraken already offers a vast selection of cryptocurrencies, and they continue to add new coins and altcoins regularly. Kraken may be suitable for traders who want to trade cryptocurrencies and investors looking to capitalize on trading foreign currencies. The ability to transfer crypto into a number of different fiat currencies is a major bonus for advanced traders.
Ratings
Overall, Kraken is one of the highest-rated trading platforms on the internet, with many long-term and loyal traders using the platform. Their low fees and a large selection of crypto is a major selling point for many investors.
Pros:
- Simple and low fee schedule
- 50+ cryptocurrencies available and growing
- 24/7 live chat support
- Instant transactions
- Forex trading available
Cons:
- Not designed for beginner traders
- Some cryptocurrencies are not available for certain fiat currencies
Binance
Binance is a cryptocurrency exchange that was created in Hong Kong in 2017. The Binance Exchange is not only an online trading platform, but it also has its blockchain-based coin called the Binance Coin. This exchange has a strong focus on altcoins and crypto-to-crypto trading. The Binance Exchange covers trading in more than 500 cryptocurrencies and virtual tokens, although not all 500+ coins are available on the Binance.US platform quite yet. The US exchange, created in San Francisco in September of 2019, has closer to 50+ cryptocurrencies available to users. However, it is important to note that more and more coins and altcoins are regularly added to the US arm of the Binance Exchange.
Main Features
Some of the main features of the Binance Exchange include a crypto wallet for traders to store electronic funds, a large selection of cryptocurrencies for crypto-to-crypto exchanges, and the availability of the Binance Coin. Binance contains lower fees than most other online exchanges, and their iOS mobile app comes highly rated. Binance also allows for peer-to-peer trading. However, the minimum transaction size for a peer-to-peer transfer is $10,000, and Binance will charge and collect the spread on the buy and sell price.
The Binance.US platform has many advanced features for expert-level traders and a simpler option for newer traders who want the site to make purchases on their behalf. All USD deposits are insured for up to $250,000 by the FDIC.
Trading Fees
The Binance.US platform charges a 0.1% spot trading fee, or for instant buy/sell transactions, they charge a transaction fee of 0.5%. For transfers using a debit card, Binance charges an additional 4.5%. They do not allow the use of credit cards on the platform. If a user wants to make a cash deposit or withdrawal using an ACH bank transfer, the transaction is free. Bank wire transfers come with a $15 fee per transaction. Any cryptocurrency withdrawals also come with a fee; however, the fee amount and the minimum withdrawal amount depend on the type of cryptocurrency.
Supported Currencies
The international Binance Exchange contains over 500+ cryptocurrencies, coins, and altcoins, while the Binance.US exchange offers 50+ different cryptocurrencies available in 43 states.
Deposit Methods
Debit cards, ACH bank transfers, wire transfers, and crypto-to-crypto exchanges using a crypto wallet.
Who is Binance Best For?
The Binance exchange is good for both expert and novice traders. However, beginners may want to not participate directly in the exchange in real-time and instead use the simplified crypto purchasing interface that lets you enter a dollar amount and type of crypto you want to buy, and the website will automatically buy that amount of crypto at the best price available. The Binance Exchange is best for traders who specialize in crypto-to-crypto trades.
Ratings
Overall, the Binance Exchange is a quality platform with many exciting features for beginners and experts, emphasizing expert-level trading.
Pros:
- Lower fees when compared to other exchanges
- 500+ coins and altcoins available on the international site and 50+ on the US site
- Many features are available for expert traders and investment firms making large transactions
- Best platform for crypto-to-crypto trades
Cons:
- Can be too advanced for some users
- Only available in 43 states at the moment
Gemini
Gemini is a cryptocurrency trading platform that allows the buying, selling, and trading of nearly 30 varieties of crypto coins. Gemini also offers its own cryptocurrency called the Gemini Dollar, which is closely tied to the value of the US dollar. Gemini is not your average exchange. This platform is available in over 50 countries, contains a daily Bitcoin auction, a high-interest savings account, and even the Gemini credit card. In addition, Gemini Pay is available to make purchases at select retail stores like PetCo and Bed Bath & Beyond. Gemini, along with Coinbase, is one of the two most widely used online crypto exchanges globally.
Main Features
One of the best features of Gemini that sets it apart from other exchanges is Gemini Pay. Gemini Pay allows you to complete transactions at more than 30,000 retailers across the United States by using funds in your Gemini account. Some other features of Gemini include its savings account that allows you to earn interest on your crypto holdings. The average interest earned in 2020was around 7.4%. There have also been reports of Gemini launching a new credit card service for users who wish to take advantage of this program. Gemini is available in over 50 countries, and it allows users to access numerous types of coins, altcoins, and cryptocurrencies.
Trading Fees
$0.99 – $2.99 for orders under $200. 1.49% transaction fee on orders greater than $200. These fees are in addition to a convenience fee that typically sees a markup of 0.5% on buy orders.
Supported Currencies
Cryptocurrencies: Aave, Amp, Basic Attention Token, Bancor, BarnBridge, Bitcoin, Bitcoin Cash, (Bread), (Caspian), Chainlink, Compound, Curve, Dai, Decentraland, Dogecoin, Enjin Coin, Ether, Filecoin, Gemini dollar, (Golem), Injective, (Keep Network), Kyber Network, Litecoin, Livepeer, (Loom), Loopring, Maker, (Numeraire), (Ocean), (OMG Network), 1inch, Orchid, Ox, PAX Gold, Polygon, Ren, SKALE, Somnium Space, Storj, SushiSwap, Synthetix, (tBTC), The Sandbox, The Graph, Uma, Uniswap, (Wrapped Bitcoin), (Wrapped Nexus Mutual), Yearn.finance, Zcash.
Deposit Methods:
The two main ways to fund your Gemini Exchange account are by linking your bank account or depositing crypto from an external wallet or service provider.
Who is Gemini Best For?
Gemini is an excellent exchange option for all types of investors, from the most experienced to the beginner. It is safe and secure, and it is designed for people looking for more than just a platform on which to complete crypto trades. People looking for an exchange that is constantly evolving and adding new features and services will love Gemini.
Ratings
Overall, Gemini is one of the most diverse exchanges available on the market with several additional features and services that set it apart from competitors.
Pros:
- Advanced trading platform with custom options for large trading firms and expert investors
- Low minimum purchases
- High-quality mobile app
- Pay for purchases at over 30,000 retail locations with the Gemini Pay feature
Cons:
- Fees can be expensive for small trades
- Cannot link a debit card to your account
How to Buy Bitcoin and Crypto with a USD Deposit?
cryptocurrencies has accelerated. Investors are treating them as long-term investments that serve as a hedge against inflation. The number of ways to convert USD into Bitcoin and other cryptocurrencies has increased dramatically in the last five years. It may seem overwhelming when you first get started; however, when you break down the process into its simplest and most basic steps, it is quite simple. On top of that, exchanges and online wallets are growing in popularity and legitimacy as security improves and investing in crypto becomes more mainstream.
Before you buy Bitcoin or any other type of cryptocurrency, you may want to create your own crypto cold wallet that can store your electronic funds offline and outside of the exchange or trading platform you use. Some online crypto exchanges offer their own wallets as well, which may be a secure option for anyone looking to invest in crypto; however, the safest way to keep your money out of the hands of potential hackers is to take it offline onto a cold crypto wallet. Many exchanges that offer crypto wallets also will keep your funds offline.
Some exchanges may allow you to stay anonymous. You will need your own crypto-cold wallet for those exchanges, and you should have some experience trading with cryptocurrency. All the most popular exchanges in the United States require identity verification to create an account and begin buying and selling crypto.
Once you select an exchange, you will need to connect a payment option to your account to allow you to transfer USD to the account to make crypto purchases. You will need to provide some identification along with banking information to begin making crypto transactions. You can use a checking account, debit card, and some exchanges allow the use of a credit card; however, purchasing crypto on credit is not recommended.
Once your account has been created, and your payment option added, you can purchase Bitcoin and other cryptocurrencies. You will want to be aware of the fees associated with each transaction type and method of payment.
Lastly, you will want to make sure your cryptocurrency is safely stored. You can store your funds in a hot or cold crypto wallet. A hot wallet is on a device that is connected to the internet, whereas a cold wallet is one that is offline. A cold wallet is by far the safest option to keep your funds secure from potential hacks.
What is the Difference Between a Crypto Exchange and a Crypto Wallet?
The main difference between a crypto exchange and a crypto wallet is that a crypto exchange is a platform where cryptocurrency can be bought, sold, and traded. A crypto wallet is where cryptocurrency is stored for safekeeping once it has been purchased.
Where Can You Buy Cryptocurrency?
There are two main ways to buy cryptocurrency. One way is by using a crypto exchange account, and the other is by using a crypto brokerage account.
A cryptocurrency broker is a firm or an individual that manages your money for you and makes cryptocurrency purchases on your behalf. Prices are typically set by the broker, and the fees may be included in the buying and selling prices. A cryptocurrency exchange is an online platform that facilitates the buying, selling, and trading of cryptocurrency in exchange for transaction-based fees.
An exchange gives much more power to the individual to make purchasing decisions. A broker is knowledgeable and stays up-to-date on financial information to make financial decisions in your best interest.
What are the Features of the Best Cryptocurrency Apps?
The best cryptocurrency apps and exchanges should have a number of features that are there to make the user experience as easy as possible. Additionally, the best apps will clearly define the type of trader for which they are designed. Is it an app for advanced traders who want to see real-time data and information to make instant trade decisions? Or, is it an app for beginners containing a plethora of articles and educational resources to help users become more experienced and educated on how crypto markets work? Whether the app is for experts or beginners, you may want to look for a few of these features to give you the best user experience possible.
- Lower fees or a simple fee structure that is easy to understand
- A mobile app feature that allows you to make trades when you are on the go
- A strong cyber security record and policy in place
- A large number of cryptocurrencies to choose from
- Up-to-date historical financial information on the different cryptocurrencies available
- A seamless user interface that is easy to use
- A large number of deposit and withdrawal options are available
When you decide which online crypto exchange to use, do some diligent research to ensure you are choosing the crypto exchange that works best for your situation and investment strategies.
What are the Fees of the Best Cryptocurrency Exchange Apps?
With any cryptocurrency exchange, fees are inevitable. You will want to research the fee structure of any exchange that you are considering. Some exchanges may charge fees by a percentage, some may charge a flat fee per transaction, and some might charge a combination of the two.
First, you will want to consider what kind of trader you are. Are you going to be making multiple transactions each day or just a couple of transactions per month? You will want to find a fee structure that works best for your intended investment strategy. Some exchanges have special fee structures for “day traders,” or people who are planning on making several hundred transactions or more each month.
Is Crypto Trading Safe?
Like any investment, cryptocurrency has its own risks. Bitcoin and other cryptocurrencies are volatile and can see large upswings and downturns that cause someone’s position to gain or lose a large amount of value in a single day. That being said, there are a great number of investors who truly believe in the potential long-term returns and use cryptocurrency as a hedge against inflation and decreased purchasing power of fiat currencies.
When it comes to the safety of performing crypto transactions online, many precautions in cybersecurity have been taken by exchanges to make sure their users are safe from cyber-attacks and hack exchanges. Overall, blockchain technology is extremely secure. Although, it is important to recognize that numerous hacks on certain exchanges have resulted in the loss of millions of dollars of cryptocurrencies. The safest way to invest in a crypto is to complete your transactions on an exchange and then store your funds in a crypto-cold wallet that is not connected to the internet. Additionally, some exchanges offer hot wallets that are insured up to a certain amount.
If you are thinking about investing in cryptocurrency, be aware of online scams that scam people out of their fiat currency in exchange for crypto that does not exist. Make sure that you are completing all online transactions through a trusted and well-secured crypto exchange.
Now that you have some education on cryptocurrency investments, you’re ready to take the next step. Explore various trading platforms and get a crypto-cold wallet. Connecting with other investors can offer insight that helps you succeed. Be proud of your skill level and always ask questions. When you are ready to start investing, you may want to start small until you have completed a few transactions. Once you are comfortable executing transactions, you can dive in and start making healthy investments.
