There are around 106 million people around the world that hold bitcoin.
Bitcoin is the most popular digital token in the world, with a market capitalization of over $350 billion in December 2022. While this is a massive market cap, it’s down from its all-time high of $1.25 trillion in November last year.
The massive spike in interest led to tons of brokerage platforms launching around the world. This is why it’s important to compare crypto exchanges before you start investing.
Thinking about buying or selling digital currency? You’re going to want to find the best crypto exchange to work with. Here’s how to find the best one for you.
Crypto Exchanges
A crypto exchange is a business that offers users a platform that they can use to buy and sell crypto. These platforms make trading crypto easy through mobile and web-based applications. In this way, you can quickly invest in the crypto of your choice with the click of a button.
While a crypto exchange can be a market maker, most crypto exchanges work to help you invest in the simplest way possible. This means that the crypto exchange acts as the middleman between you and the market maker.
There are tons of benefits that come with this business model. Working with a crypto exchange allows you to invest with the click of a button but also comes with much lower fees. This means that you can make the most of your investment.
Different brokerages treat crypto like stocks while others treat them as digital assets. Platforms like Binance and Coinbase specialize in crypto and allow you to buy crypto with them and then transfer it to your secure wallet. On the other hand, platforms like Robinhood treat crypto like stock and hold it under your name for you.
The Best Brokerage Platforms
Crypto exchanges act as reliable brokerage platforms for cryptocurrencies and other kinds of digital assets. While there are tons of crypto exchanges on the market, the best brokerage platforms all provide investors with safety and security. The best brokerage platforms take this a step further by offering tons of resources and world-class support to make your life easier.
How to Compare Crypto Exchanges
If you’re thinking about investing in crypto, it’s important to find a great crypto exchange. Here are a few tips to help you compare crypto exchanges to find the right one for you.
Security
The number one thing to keep in mind when choosing a crypto exchange is security. Since you’re investing your own money into the platform, it’s important to make sure your money is secure.
This security goes above cyber security, as you should also make sure the platform is financially secure as well. In this way, you don’t have to worry about the business going under and taking your capital along with it.
Minimum Deposit
When it comes to investing, it’s always a great idea to start off small. Some platforms have minimum deposits that can be overwhelming for beginners. This is why it’s important to compare the different minimum deposits before picking a platform.
Some platforms make it even easier to learn how to trade by offering demo accounts. This lets you invest in the crypto market without the risk of losing your own money.
Costs and Fees
Fees can often be the most notable expense when trading crypto. These fees can range from 0% to over 5% of the value of your trade. This can end up taking a decent chunk of your profit when you decide to exit your position.
While each platform offers different rates, it’s important to look at what else the platform offers. Some platforms may have lower fees but don’t have the important features that you may benefit from. In this way, the added fees are worth it.
Supported Cryptocurrencies
When it comes to investing in crypto, chances are that you already know what cryptocurrency you want a piece of. This is why you should always make sure that the platform you choose offers that cryptocurrency. While the smaller coins may be difficult to find, almost all exchanges offer big names like bitcoin and Ethereum.
Even if you plan on just buying one kind of cryptocurrency right now, investing in a diverse platform is the best way to go. This is because you can always add to your portfolio without having to move to another platform.
Payment Options
Crypto exchanges allow you to make deposits that you can use to buy cryptocurrencies. These platforms also let you cash out and transfer the funds back into your account. When picking your crypto exchange, it’s important to make sure that you can use your preferred payment method.
The Most Popular Crypto Exchanges
When it comes to crypto exchanges, there are a ton of options to choose from. These exchanges differ in what they offer, allowing you to pick the right one for your exact needs. Here’s a quick look at the most popular options.
Crypto.com
Crypto.com is one of the most popular crypto exchanges on the market today. This innovative platform offers a wide range of cryptocurrencies that have incredibly low transaction fees as well. Crypto.com doesn’t have a minimum deposit, making it perfect for beginners.
Binance
Binance is the biggest name in crypto right now as they have managed to stand the test of time. This impressive crypto exchange lets you buy and sell tons of cryptocurrencies, but also offers tons of resources on its platform. This includes world-class support to help you answer your questions in the blink of an eye.
SoFi Active Investing Crypto
SoFi is a massive investing company that has dedicated significant resources to creating a reliable crypto exchange. This impressive platform lets you buy tons of different crypto in a safe and reliable way. The best part about this is that you can integrate everything into a single, simple investment portfolio for you to manage.
Robinhood
Robinhood is dedicated to democratizing access to investing. While Robinhood deals with stocks and securities, they also let you trade some of the biggest cryptocurrencies in the world. This is a great option for those who want to keep all of their investments in one place.
Coinbase
Coinbase is often the first place people go to check the latest crypto prices. This modern platform has a great mobile app so that you can buy and sell crypto from anywhere in the world. Coinbase’s fees can range from 0% to 4%, but also hosts a ton of promotions that can easily cover them.
The Most Popular Cryptocurrencies
While different exchange platforms host all kinds of cryptocurrencies, there are a few popular options that you can get everywhere. These popular cryptocurrencies have massive market caps, making them some of the biggest names out there. Here’s a quick look at a few of them.
Bitcoin (BTC)
As mentioned above, bitcoin is the biggest cryptocurrency on the market. Bitcoin’s market cap is around $350 billion, making it more than a third of the entire crypto market. Launched back in 2009, bitcoin leverages blockchain technology to securely transfer funds around the world.
Ethereum (ETH)
Ethereum is a leading cryptocurrency that has recently undergone a massive upgrade. This new upgrade moves from proof-of-work to proof-of-stake. This subtle change managed to decrease the total energy consumption of the blockchain by 99.95%.
Binance (BNB)
Binance is one of the most popular crypto exchanges in the world. This exchange offers you a wide range of crypto, but also hosts its own Binance coin. This coin has grown with the platform and has a market capitalization of over $45 billion.
Shiba Inu (SHB)
Shiba Inu is a massive cryptocurrency that has a market cap of over $5 billion. This coin skyrocketed in price over the last year, making it incredibly popular in the process. You can read on if want to learn more about what is Shibu.
Tether (USDC)
While cryptocurrencies can fluctuate in value, stablecoins can help mitigate that risk. These coins are linked directly to underlying assets, making them the digital version of that currency. The most popular option is Tether, a stablecoin linked to the United States dollar.
Invest With the Best Crypto Exchange
When it comes to investing in crypto, it’s important to compare crypto exchanges. Each crypto exchange platform hosts different crypto along with various unique services. However, the most important aspects to compare are the platform’s reliability and security.
The crypto market can be volatile at times, making security one of the most important factors. At the end of the day, you’re investing your hard-earned money and want to make sure that you’re putting it in safe hands.
