The future of finance – you have probably come across this term describing cryptocurrencies. Their popularity, backed by the recent rise (and drop) in value, has caught everyone’s attention. As such, more cryptocurrency investors are forming on various trading platforms.
There are over 290 million people trading cryptocurrencies or using them for business and personal transactions. Furthermore, over 20,000 cryptocurrency projects exist around the world. Undoubtedly, more people are interested in trading cryptocurrencies, and there are over 500 crypto exchanges and platforms available for this purpose.
Why You Should Be Careful When Choosing a Crypto Exchange and Trading Platform
The recent rise in cryptocurrency popularity has had its fair share of negativity. Scammers have taken advantage of immature crypto enthusiasts, raising security concerns for most exchanges and trading platforms.
Nonetheless, people continuously flock to crypto, heated by some top organizations that see it as the future of finance. Here are the best crypto exchanges and trading platforms if you’re looking to get your feet wet.
Gemini
Gemini ranks as the best overall crypto exchange, emphasizing compliance and security. Consequently, users must undergo a robust security verification process to lower the risk of fraud. Besides, it protects funds held in a hot wallet with insurance.
It is a highly liquid platform, making it attractive to crypto investors. Gemini supports over 75 cryptocurrencies and a seamless professional dashboard. It also provides a reward card that works like a debit or credit card, via which you can use crypto to buy goods and services.
Its incorporation of two-factor authentication provides added security when using its services. Third-party auditors certify its compliance and security, earning it a SOC 2 certificate. The extra protection justifies its high transaction fee, probably one of the highest in the industry.
Mask your IP using residential and data center proxies (read more about cheap datacenter proxies here) to enhance your safety further. Trading using a residential proxy as an added layer of security protects you from scammers and fraudsters.
Crypto.com
Crypto.com supports a vast number of crypto assets, hosting over 250 cryptocurrencies. It has extensive crypto investing ecosystem consisting of a crypto Visa card, its own blockchain, yield-generating crypto assets, and a native token, among others.
Its mobile app is where it beats other crypto exchanges and trading platforms. Unlike the others, Crypto.com emphasizes providing its mobile app with the same features available on its website platform to facilitate its digital asset ecosystem.
However, it has poor customer support, as seen in nasty comments posted on review sites. Moreover, Crypto.com’s trading fees are relatively expensive, and this only benefits high-volume traders. Nonetheless, it is trustworthy and has good security levels.
Kraken
Kraken is a professional trading platform with some of the lowest fees in the industry. It supports futures trading and offers margin and advanced order types, making it suitable for professionals. It supports a vast number of digital assets with over 120 cryptocurrencies.
It offers its main trading platform for less experienced traders and Kraken Pro to professional traders. The latter has high-speed order execution with various customization tools for chart analysis.
Kraken charges high amounts to transact on its main platform. However, its fees are relatively low on Kraken Pro. Its highly professional platform presents challenges to new crypto adopters. Nonetheless, it is one of the few platforms that allow risky assets.
Coinbase
Coinbase has a user-friendly interface that is suitable for beginners. In addition, it has robust security features and supports a wide range of crypto assets. Its ability to directly invest with fiat currencies makes it one of the most popular crypto exchanges.
It is available in over 100 countries, allowing people to quickly buy, sell or track their crypto assets’ performance. Coinbase allows scheduled trading where you can decide to trade monthly, weekly, or daily. Your funds are secured in a separate vault to prevent fraud. You can complete various tasks on the platform to get free tokens while you earn interest on your investments in USDT.
You will encounter high fees if you use their Coinbase Pro app. Besides, you have no control over your wallet’s private key. Despite hosting several cryptocurrencies, it is slow to adopt new ones.
Final Words
Crypto exchanges and trading platforms are not much different from stock market brokers. You buy, sell, and invest in crypto assets like stocks.
The difference is the type of asset. With cryptocurrencies going mainstream, it is time to pick one of the best exchanges and trading platforms to ride the wave.