Since it was launched in 2009, Bitcoin has been the most popular cryptocurrency in the world, and it currently has more than 190 million users globally.
If you’re interested in investing in crypto, you first need to find a suitable exchange. Coinbase is a popular choice for beginners and it’s one of the most widely used exchanges in the world. If you want to use another platform, however, there are still plenty of options.
Keep reading to get a better idea of how to find a suitable Coinbase alternative that meets your needs.
Best Coinbase Alternative Options
There are plenty of crypto exchanges out there, but they all have differences. The largest, for example, is Binance, but it’s not accessible to everyone in the US. Some other well-known platforms to consider are:
- Kraken
- Gemini
- Crypto.com
- eToro
- Uphold
- Bybit
- Swap Bitcoin
There are many more that you can look into. For most investors, one of these larger platforms will be perfect. If you have specific needs (such as uncommon coins you want to invest in) then you may need to look for a more specialized platform.
How to Find the Right Exchange for You
There’s no specific exchange that’s better than the others available. It all depends on what you want as an investor. There are certain factors you should take into account to help you decide on the best exchange for you.
Jurisdiction
Before you even start looking at the features an exchange offers, you should check if you’re able to access it. Some only operate in specific regions, so this is worth looking into.
Binance, for example, operates as binance.com in most countries, but in the US, it’s only available at binance.us, and it’s not accessible at all in certain states. Once you’ve determined which exchanges are available in your location, you can start looking at them more closely.
Security Measures
Security is one of the most important elements of portfolio management. Plenty of people have lost funds to criminals, so you need to make sure you keep your crypto as safe as possible at all times.
When you purchase any crypto, it will go to your custodial wallet on your chosen exchange. In the past, various exchanges have fallen victim to hacks or have had other issues that have resulted in investors losing their assets.
Most exchanges will provide details about their security measures on their site. It can be ideal to look for an exchange that has a good security history as they’ll be less likely to have issues in the future. With that in mind, it’s always safest to store your crypto in external wallets that you’re completely in control of.
Ease of Use
If you’re new to the crypto space, it can all feel a bit overwhelming. There’s a lot to understand, and many aspects of crypto are very complicated.
Various exchanges are designed to be easy for beginners to use, while others are geared towards experienced investors. Some platforms offer both a “basic” and “advanced” view so they’re ideal for everyone.
When getting started, a beginner-friendly platform will be more suitable. As you learn more, you may want to move over to a different exchange that offers more features that you’re interested in.
Cryptocurrencies Available
Most investors start with bigger cryptocurrencies like Bitcoin, Ethereum, and Solana. These well-established coins are available on most exchanges, so you shouldn’t have any trouble here.
A quality investment strategy involves diversification, so you don’t want to only invest in one or two cryptos. With time, you may want to start purchasing some newer, smaller coins. It may be a bit trickier to find these on some platforms.
It’s important to note that newer, smaller cap coins typically represent a higher risk than older, more well-established cryptos. Effective portfolio optimization involves understanding the level of risk that you’re exposing yourself to.
If you know from the start that you want to build a diverse crypto portfolio, you may already be looking into some small-cap coins. When you know exactly what you want to buy, you can look at what’s available on different platforms to make sure you can invest appropriately.
This can take a bit of research, but it’s necessary if there are any uncommon cryptos you want to add to your portfolio.
Trading Fees
For many people, the main purpose of cryptocurrency investments is to make money. You may not be very happy, however, if you get caught out by sizable fees that eat into your profits.
All platforms make money through fees, so you’ll want to make sure you understand these before making any transactions. All platforms should provide specific information on the fees they charge.
They’re typically not too expensive, but it’s still a good idea to know what they are. Determine the fees that a platform will charge before trading so that you don’t get caught off guard.
Customer Support
Whether you’re a beginner or an experienced trader, you could still run into issues when using an exchange. You’re more likely to have more questions when first getting started, and being able to contact a reliable customer support team can be incredibly helpful.
When using a crypto exchange, rapid support can be essential. Your finances may be at stake, so you don’t want to be left waiting for assistance.
Look at the customer service reputation of different exchanges to see what other users have to say. A platform with a team that responds quickly can make things much easier for you.
Succeeding in the Crypto Space
There’s a lot to learn about cryptocurrencies, and finding a suitable Coinbase alternative may just be the start. There’s plenty of risk that comes with crypto investing, so it’s vital to understand what you’re doing. Establish a solid strategy, and always make sure you know what you’re buying.
Joshua M. Peck specializes in helping investors optimize their investment strategies and portfolios to get the best results. He has over 20 years of experience in financial engineering, risk management, and systems engineering. For more assistance navigating the world of crypto, get in touch today.
