If you have recognized the potential of cryptocurrencies as profitable investments and found the one you want to include in your portfolio then the next step is to buy your crypto. But where and how do you purchase cryptocurrency? The most common way to buy and trade cryptocurrency is on a cryptocurrency platform. In this article, we take a detailed look at what cryptocurrency trading platforms are, what you should consider when choosing one and what are the best platforms for crypto trading. By the end of the article, you’ll be able to make a more informed choice about where to buy and trade your digital assets.
What Are Crypto Trading Platforms?
You can buy cryptocurrencies from physical locations, ATMs similar to the ones we use to withdraw fiat money, but the most popular way to purchase crypto remains via online trading platforms. Crypto trading platforms are places where you can trade and invest in crypto, using other cryptos or fiat currencies. The platforms for crypto trading are two types: brokers and exchanges. Let’s take a quick look at both to help you find out what are the best platforms for crypto trading by type:
Brokers for Trading Cryptocurrency
The crypto trading platforms that are called brokers are the places that offer not only cryptocurrency for trading, but also other assets like stocks, bonds, ETFs and Forex. Because brokers aren’t specialized in one type of asset, the number of cryptocurrencies they offer may be limited, compared to exchanges.
Exchanges for Trading Cryptocurrency
Cryptocurrency exchanges are online places exclusively for trading digital assets. There are two types of cryptocurrency exchanges: centralized (CEXs) and decentralized (DEXs).
Centralized Cryptocurrency Exchanges
Cryptocurrencies are decentralized finances, so how could exchange be centralized then? The centralization of crypto exchanges comes from the use of a third party, conventionally a bank, in the transactions. These exchanges are considered safer in terms of offering support for their customers in case of any hacker attack or if the buyer forgets the key to their digital wallet. Beginner investors usually opt for centralized crypto as the best platforms for crypto trading, because they trust the customer support to help them deal with any technical inconveniences.
Decentralized Cryptocurrency Exchanges
A decentralized cryptocurrency exchange is the best platform for crypto trading for traders who want to avoid third parties. This type of exchange doesn’t include a middleman, the transactions are executed via smart contracts and between buyer and seller only. The biggest advantages of DEXs is that you can find many new cryptos that centralized exchanges may take a longer time to feature, your anonymity is ensured and it’s less likely to lose your funds at a hacker’s attack, as opposed to in a centralized exchange.
How to Choose the Best Platforms for Crypto Trading
Now that you know what are the types of places where you can buy and sell your coins, comes the question of how to pick the best trading platform for crypto. There are a couple of factors that you should consider when deciding on the best trading platform for crypto. All platforms must include this information on their sites but let’s see what you should look for.
Factors to Consider When Picking a Crypto Trading Platform
- Fees on the platform: Every platform has different fees when it comes to trading, depositing, and withdrawing funds. Some may come without fees or with lower ones, but the common range for trading in crypto platforms is 0.1-0.5% and 1.5% for deposits. For withdrawing the fees will depend on the amount you want to take out.
- Selection of offered currencies: On most platforms, you’ll be able to buy Bitcoin, Ethereum, and other top 10 cryptos but if you want to buy less popular or brand new assets, you need to first research which platforms offer them.
- Covered locations: Some platforms offer their services in limited locations. Before trying to create an account, you must make sure the platform covers your country and complies with the regulations there.
- Reliable customer service: Like all good businesses, the best platforms for crypto trading should offer good customer support if something goes wrong with your money. Research reviews of other crypto traders online to get a general impression
- User-friendly platform: The site or app of your chosen platform for trading crypto should be easy to navigate even for beginner traders.
- Additional perks: The best crypto trading platforms offer additional services like wallets, crypto trading tools, or educational recourses on their sites. You can take advantage of them to improve your trading.
Top 7 Best Platforms for Crypto Trading in 2022
Considering the factors we’ve mentioned about picking the best platforms for crypto trading, here are our suggestions for places to buy and sell crypto you should consider in 2022.
Binance can be considered one of the best platforms for crypto trading for people who look for a big variety of supported cryptos, as it offers more than 500 coins. The platform has its own token, BNB, created to make transactions on the exchange cheaper and offers an NFT marketplace and a DEX.
Pros of Binance
- Low trading fees
- Site suitable for both new and experienced traders
Cons of Binance
- Banned in the US (Binance.US serves as an alternative there)
- Slow verification process
Coinbase may be the best trading platform for crypto for experienced traders. Along with its regular services, the exchange offers premium services for professional traders – Coinbase Pro, and for institutional customers – Coinbase Prime.
Pros of Coinbase
- The platform offers a secured wallet
- Educational content at users’ disposal
Cons of Coinbase
- Higher trading fees
- Withdraw time may be slow
Founded by the crypto billionaires Winklevoss twins, Gemini is suitable for crypto traders, looking for security when purchasing their assets. The platform claims to have its main focus on secure trading and supporting customers in all issues.
Pros of Gemini
- Hot wallet insurance
- The service Gemini Pay allows purchases at more than 30,000 retailers using crypto
Cons of Gemini
- Doesn’t support margin investing or short selling
- Fee structure may be confusing, depending on the services you use
The multi-asset broker eToro can be considered the best crypto platform for day trading, as it offers 100% commission-free day trading. eToro offers a Copy Trading feature, helping beginner crypto investors learn from experienced, by copying their trades and potentially increasing their profit.
Pros of eToro
- Multiple supported ways of deposit
- Regulated with a wide location support range
Cons of eToro
- Smaller number of supported cryptos, as it’s not a specialized exchange
- Customer support answer time may more take time
Kraken is one of the best platforms for crypto trading when it comes to trading crypto to crypto, as it offers 130 trading pairs. The exchange promotes itself as suitable for everyone, from new investors to companies, looking into digital assets.
Pros of Kraken
- Offers rewards through staking
- Provides crypto guidance for beginners
Cons of Kraken
- Reported losses due to hacks and lack of the exchange’s support
- High instant buy fees
Crypto.com serves as the best trading platform for crypto investors, looking to quickly buy and sell assets from their mobile devices. The exchange also offers a wide variety of DeFi tokens and a DeFi wallet app.
Pros of Crypto.com
- Opportunity to earn interest on crypto
- Lower fees for accounts, funded with cash transfers
Cons of Crypto.com
- Doesn’t offer crypto-to-crypto trading
- Some services are not provided in the US
Uniswap is the most popular decentralized cryptocurrency exchange, hosted on the Ethereum blockchain. It is among the best platforms for crypto trading for DeFi enthusiasts who want to take advantage of the UNI token as well, receiving it as a reward for not selling their holdings or governing the exchange based on how many UNI they own.
Pros of Uniswap
- Possibility to swap all ERC-20 tokens
- No identity verification required
Cons of Uniswap
- High gas fees
- Possible listed scam coins because everyone can list a crypto
What Is the Best Platform for Trading Crypto in 2022?
There’s not one single winner when it comes to the best platforms for crypto trading because it all depends on your needs and what you’re looking for when picking the place to buy and sell your crypto. However, you can consider the factors and platforms we’ve listed, and based on your preference, pick the best trading platform for crypto for you. Make sure to do your own research beforehand, and read customers’ reviews and what platforms provide, because you need to trade your crypto on a secure platfrom to avoid scams and losses due to lack of information.