There are a lot of hurdles to overcome when a person enters the crypto market. The 1st, is being open minded about it when they first hear about Bitcoin and crypto.
The 2nd, is keeping that mind open and being able to see the potential of what Bitcoin could do, and how it could change the world. Understanding the fundamental ideas of it.
The 3rd is after hearing all that, still being interested and deciding to invest.
And the 4th, which is the topic of this video is finally deciding the place where they will make their purchase.
So what is the best exchange to use to buy bitcoin?
There are so many different factors that come into play that could change which exchange is actually right for each person. The trustworthiness of that exchange, a person’s skill with computers and technology, what they actually plan to do with their crypto, the exchange fees, and where they live.
For the purpose of this article, I will be making it from the perspective of someone who lives in the USA.
So let’s get started!
For the average person who hasn’t had any experience in the cryptocurrency market, I will almost always recommend that they use CoinBase. The app/website UI is very appealing and easy to use. Something that can’t be said of a high majority of rival exchanges out there.
And not only that, but the security on the exchange is top notch. They also feature a very appealing CoinBase Earn education offer. If you want short crypto videos, and take an easy quiz about it you are able to earn free crypto! When I did this I received nearly $200 of free crypto. Not a bad way to interest a newcomer to join the market. And I always say, if you have skin in the game you will be more inclined to research the product.
Those are the good things about Coinbase, but there are also negative points as well. For starters, it seems that nearly every time there are large price swings up or down, Coinbase will go down. So if your plan is to actively sell or buy the big dump, this will be something for you to consider.
Also, Coinbase does have extremely high fees compared to other places. Fees on purchases and also they take out a larger fee for staking rewards as well. All things to keep in mind. They also don’t feature trading, they only offer this on the Coinbase Pro website/app.
If someone isn’t too experienced with tech, or just wants the easiest method, hands down its almost always best for them to choose Coinbase.
After this we move on to Kraken. Along with Coinbase, Kraken is one of the oldest exchanges around. A lot of veterans in the market will often prefer Kraken to others as the fees are lower, offers great trading, has a good selections of coins you are able to purchase, and has extremely good security. It’s a place you can feel secure to keep your coins, but I still always do recommend to not keep much on the exchanges, just in-case one day something would happen. It’s always better to be in control of your own money. After all, isn’t that the main idea of cryptocurrency in the first place.
The big downside of using Kraken, especially for newcomers which this article is directed towards is their website. For the longest time it was a website only, not offering an app. Which brought down the convenience level, which has since been corrected, but after that I feel there is so much room to improve the UI. For a newcomer it can be very daunting, not knowing what does what, and sometimes not being able to figure out how to buy.
For example, I had a friend who was finally interested in buying crypto, they went to Kraken, and it was too daunting for them and they gave up without buying.
All - in - all, if your biggest focus is the security of the exchange, I would recommend to you Kraken.
Next we move onto Binance.US. The main Binance website is one of the most popular exchanges in the world, but in the USA because of laws/regulations they had to spin out a special USA only exchange. But how does it compare to its more popular brother exchange and or rival exchange. The website UI is nearly the same as the other Binance exchange and they also offer very low exchange fees, they don’t take any fees from your staking rewards as well.
So if your main concern is avoiding fees, that makes it one of best options out there. Everybody loves saving money, and you can used that saved money to get more crypto.
Unfortunately, just like Kraken, and also the other Binance exchange, the UI just isn’t very welcoming to newcomers to the space. It is rather geared towards veterans and traders. Which is where they do make the bulk of their revenue, so it is an understandable decision for them to have made.
While Binance has one of the highest trading volumes in the world, the USA exchange actually has a fairly low volume, and therefore with this and everything I mentioned above, I just can’t recommend Binance US until it becomes more safe for them to buy.
No, just no. While the low to no fees on purchases can be very attractive, you actually do not own the Bitcoin you own when you buy. You can’t send it, withdraw it or anything. Only buying and selling. Avoid Robinhood Crypto at all costs.
Gemini is one of the newer exchanges, it has only been around a few years now, but it is also very well trusted. They take security very seriously there, but with that comes higher fees as well. The UI is much much better than other exchanges such as Kraken and Binance, but isn’t quite as simple as Coinbase too. Gemini comes off to me as a very bland exchange, it doesn’t quite do anyone one thing that great, but it does do several things pretty good and for that reason it does rank above some other exchanges. It does have pretty limited variety of coins that can be purchased on their exchange, although recently they have increased this number.
If you’re unaware of cash app it was started from the CEO and founder of Twitter, Jack Dorsey who is a huge fan of Bitcoin. This is possibly the most easy place to buy Bitcoin, as it is on America’s most people digital payment app already, just a side tab away from being purchased. Also they do off very reasonable fees, and you are able to send your coins to anyone, withdraw them and do anything you wish.
They even recently just added a feature to be able to schedule automatic purchases, weekly, bi-weekly or monthly and even daily. This is great for those who are wanting to dollar cost average.
The only real downside is that they do only sell Bitcoin, so if you’re interested in Ethereum or any other coin, you will need to go shopping elsewhere.
All in all, if you haven’t figured it out already, the exchange I recommend is Coinbase. This is towards all newcomers. As I said, they are able to earn free crypto, the UI is very easy and not daunting, and there is a pretty good variety of coins. Although the fees are high, So after a person has gained enough experience and feel comfortable, I would then advise them to use a different exchange.