Are you ready to plunge into the crypto world but don’t know where to start? Do you find yourself lost amidst the baffling surge of cryptocurrency exchanges?
2024 is expected to be a great year for crypto, with huge bulls predicted. As such, the industry will see an influx of first-time investors. But, with over 600 crypto exchanges, it’s nearly impossible for new investors to spot the best platforms to use.
This guide delves into the top 5 exchanges, weighing their strengths and weaknesses to help you make an informed decision. Keep reading.
How to Choose a Good Crypto Trading Platform
Before highlighting the best exchanges to consider next year, here are tips on things to consider when choosing a platform. They include:
- Security
- Fees and costs
- Reputation
- Customer support
- Coin support
- Liquidity
- Payment methods
- Transparency
- Deposit and Withdrawal limits
- Ease of use
- Wallet integration
In essence, making the right wallet choice will influence your profitability and trading experience. The factors above will help you align your trading ambitions with the right platform. To help you, we will now list the top 5 exchanges for the upcoming year.
1. Coinbase (User-Friendly Crypto Exchange)
In 2023, Coinbase remained a top-class crypto exchange owing to its wide range of unique attributes. Born in 2012 with the ambition to redefine finance, Coinbase solidified its space in the crypto brokerage arena. It dawned in 2023 with its prominence, even amidst turmoil in the crypto realm.
What’s Coinbase’s most unique selling point?
Its unblemished security and reliability record. Coinbase is touted as the one crypto exchange never to have faced a hack since its dawn. Moreover, most Coinbase users hail its simplicity, owing to a very simple-to-use interface (UI) bolstering user experience. The exchange also supports trades for over 250 crypto assets.
Adding to its allure, Coinbase has very high levels of liquidity and a good number of deposit and withdrawal options. The ability to learn about crypto while earning is also a key advantage of Coinbase.
However, this trading platform suffers from one key illness: high fees. For low-value transactions, users pay extreme fees.
2. Kraken (Feature-Packed Crypto Exchange)
Second in line, Kraken.
Founded in 2011, Kraken is already a veteran in the crypto exchange business. It is inarguably among the most used cryptocurrency trading networks in the globe, with a user base of over 9 million people in 2022.
Why do 9 million people use this platform?
The answer lies in its professional tier trading platform, Kraken Pro. Yes, but why Kraken Pro? Kraken Pro offers a reasonably good fee structure, with fees as low as 0.16%. The low fee helps discount users’ costs, hence leading to higher earnings.
Additionally, Kraken also appeals to expert traders with its advanced order types, margin and futures trading.
Its large asset support with 150+ cryptos makes it a great home for investment diversification. Moreover, it has great customer service with a 24/7 support system in place.
However, there’s a major drawback. Kraken’s UI is complex for new users. Moreover, it takes an average of 5 days for deposits to complete.
3. Crypto.com
Crypto.com has also been emerging as a fan favourite in the realm of crypto trading, and it’s easy to see why. Since its birth in 2016, Crypto.com has challenged the top players in the crypto universe, expanding its reach to over 90 countries.
Despite being one of the newbies in the realm, Crypto.com amassed a massive followership of 80 million people. But what makes Crypto.com so unique that millions use it?
To start with, Crypto.com is not just an exchange but an ecosystem. It has an exchange, a blockchain, a Visa card, a token and several yield-generating products. The idea is to give a wholly crypto experience for users.
Next, Crypto.com introduced a unique app that brings a plethora of products and features like trading, earning, and more. In fact, the app is one of Crypto.com’s standout features.
Further, in its offering, Crypto.com supports at least 250 cryptocurrencies. You get to have a platform to diversify your crypto investments.
But, Crypto.com has its shortcomings!
According to many users, Crypto.com’s customer support is wanting, and the fees are sometimes very high for smaller traders.
4. KuCoin
Launched in 2017, Kucoin prides itself in bringing inclusivity and diversity to its community. In over seven years of operation, Kucoin attracted about 30 million users. Why?
First, Kucoin has a rich offering of digital assets with over 700 cryptos listed. It’s, in fact, among the Crypto exchanges with the most assets.
Secondly, the crypto trading platform brings a catalogue of unique products like staking, loans, and NFT trading platforms. This enhances diversity for its millions of investors.
Thirdly, Kucoin comes with competitive trading fees, enticing rookies and experts alike.
However, with its pros, Kucoin also brings some drawbacks. The lack of US license and insurance means more risk for investors. Moreover, it suffered a massive hack in 2020.
5. Binance (The Largest Crypto Exchange)
Albeit its regulatory obstacles in 2023, Binance stands as the popular choice for crypto traders. Launched in 2017, the world’s largest exchange currently has a global user base of more than 150 million and a huge daily trading volume of $30 billion.
Its most captivating features include low fees, high liquidity, a user-friendly interface, and support for over 40 fiat assets. Moreover, Binance supports at least 350 crypto assets, including its native coin, BNB.
Its troubles towards the end of 2023 could set the pace for its growth or demise in future years. However, seeing that the exchange network has proof of funds and a strong user base, it’s okay to say that it will be one of the best crypto trading platforms for a long time.
In Conclusion
The exchanges listed above stand out as the best when it comes to crypto offerings. However, there are several honourable mentions like Gemini, OKX, Huobi, and Bittrex, all of which provide interesting services for investors.
Before selecting a crypto exchange, research more on its features, reputation and even the general security of the platform.
The crypto exchange landscape is vast, and these platforms offer services tailored to different users’ needs. Remember to choose wisely based on your trading requirements, risk tolerance, and investment strategy.