The best platforms for crypto trading can provide you with a safe space to buy, trade, and sell your digital assets. If you are looking to make a cryptocurrency investment you should first choose the right asset for your portfolio. The second step, which is equally important, is to pick the right place to make the order for your digital assets. Online trading platforms are the easiest and most common way of purchasing digital money. If the big variety of places is making your choice difficult, we will provide you with a guide you can consult when deciding on the best platforms for crypto trading.
What Is a Cryptocurrency Trading Platform?
It is possible to purchase digital currencies from physical locations, for example, cryptocurrency ATMs. However, the most popular way to buy cryptocurrencies remains by online trading platforms. You can purchase or sell cryptocurrencies at those places using fiat or other crypto currencies.
The platforms for crypto trading can be separated into two types, based on the types of assets they offer. They can be brokers and exchanges.
Brokers for Cryptocurrency Trading
The online trading platforms called brokers provide traders with the opportunity to buy and sell a variety of assets, some including cryptocurrencies. Since this type of platform doesn’t specialize in cryptocurrencies exclusively, the number of offered assets may be limited, in comparison with exchanges.
Exchanges for Cryptocurrency Trading
Unlike brokers, exchanges are platforms that provide only cryptocurrencies for trading. They can be categorized into two types, based on the way they are regulated. Cryptocurrency exchanges can be centralized, also known as CEXs, and decentralized or DEXs.
Centralized Exchanges for Cryptocurrency
What classifies a cryptocurrency exchange as centralized is the usage of third-party authority to oversee the transactions. Individuals who look for safety, provided by a regulatory body, could determine this type of exchange to be the best platforms for crypto trading. If you use a centralized exchange, you should be able to receive support in case something goes wrong with your funds, for example, a malicious attack on the platform or if you forget your wallet’s private keys.
Decentralized Exchanges for Cryptocurrency
Traders who determine that decentralized exchanges are the best platforms for crypto trading, favor the freedom of regulations. The transactions in this type of exchange exclude a middleman they’re conducted peer-to-peer, meaning between the buyer and seller only. Decentralized exchanges provide a wide range of newly emerged crypto assets for trading, which you may not be able to access on a centralized one, where they undergo a detailed background and security check before they allow new cryptocurrencies for trading. This type of exchange also ensures your anonymity when trading and is supposed to be less prone to hacker attacks, compared to centralized.
Criteria for Choosing the Best Platforms for Crypto Trading
Having established the types of online trading platforms for digital assets, based on the assets they offer and how they’re regulated, we’ll now look at what you should consider when choosing the best platforms for crypto trading. Every respectable place for trading crypto assets should include the following information on their websites:
- The platform’s trading fees
- Variety of offered cryptocurrency assets
- Countries from which you can use the platform
- Responsive customer support
- User-friendly interface of the platform
- What additional services the platform offers
The Platform’s Trading Fees
Each platform has fees in different price ranges for when you’re trading, depositing, or withdrawing funds on it. The common price range for trading on platforms for cryptocurrency is 0.1-0.5% and 1.5% for deposits. For withdrawing your funds, the fees will depend on the size of the sum you’re withdrawing. You should consider that some platforms may offer lower or even no fees for financial operations on them, though most commonly the range we mentioned is used.
Variety of Offered Cryptocurrency Assets
Research what number and type of cryptocurrencies the platform of your interest offers. Most brokers and exchanges will probably have Bitcoin and Ethereum and other big-cap altcoins. However, if you want to trade less-known or new cryptocurrencies, you should first find where they are offered and then decide if the platform fulfills your needs.
Countries From Which You Can Use the Platform
Some platforms for crypto trading offer their services only in selected locations. This could be connected with a country’s cryptocurrency regulations or policies against a specific platform. For this reason, you should first research if the platform offers trading in your country and then try to make an account.
Responsive Customer Support
The best platforms for crypto trading should provide reliable customer service to their users if something goes wrong with their money or if they have any questions about the process. A way to learn how the platform responds to inquiries is by reading reviews left by other traders online. If the prevailing arguments are negative, consider them when making your choice.
User-Friendly Interface of the Platform
Sites that are easier to understand and use generally attract more people. When picking the best platforms for cryptocurrency, explore different sites to determine how easy you can navigate through them and if there are features you don’t understand fully. You should know how a site works before you begin trading.
What Additional Services the Platform Offers
The trading places that provide additional services, other than buying and selling assets, could be considered some of the best platforms for crypto trading. The additional services a site for buying and selling digital assets could provide may include a built-in wallet, tools for crypto trading, or educational materials. Choosing a platform with such advantages could benefit your trading experience.
The Best Platforms for Crypto Trading in 2022
Putting into consideration the information listed, along with the platforms’ popularity and reputation, we present a list of some of the best platforms for crypto trading this year.
Traders who want to have the option of buying and selling a big variety of assets could consider Binance as one of the best platforms for crypto trading. It offers over 500 cryptocurrencies, including its native token BNB. The platform’s asset was created to make transactions less expensive and provide its holders additional perks on the Binance ecosystem. Additionally, Binance has an NFT marketplace, decentralized exchange, and a built-in wallet.
- Relatively lower fees for trading
- Features of the site provided for both new and experienced traders
- Binance doesn’t operate in the US, instead, Binance.US is used there
- The account verification process may be long
Crypto.com is one of the best trading platforms for crypto investors who want to buy and sell assets very quickly, using only their mobile phones. The exchange provides a DeFi wallet app, as well as a big number of DeFi tokens.
- Possibility to earn interest on cryptocurrency
- Accounts that are funded with cash transfers can benefit from lower fees
- Crypto-to-crypto trading is not offered
- US citizens aren’t provided with all the platform’s services
Experienced traders would find Coinbase as one of the best platforms for crypto trading. The platform provides regular services for cryptocurrency traders, as well as premium services, called Coinbase Pro, for more professional individuals. Institutional customers can also take advantage of Coinbase Prime, created especially for them.
- Users can take advantage of a secured build-in wallet
- The platform provides educational content
- The fees for trading can be considered higher than other platforms’
- Withdrawing funds may take a relatively long time
eToro is a multi-asset brokerage platform that can be described as the best crypto platform for day trading because it offers 100% commission-free day trading. The number of crypto assets on the platform seems to increase steadily and along with them, eToro offers a special feature called Copy Trading. Users can take advantage of this feature to learn from more experienced traders by copying their portfolios and potentially gaining like them as well.
- Multiple different payment options
- Regulated with numerous institutions and operating in many locations
- The number of offered cryptocurrencies is not very high yet
- The answers from customer support may take some time
The Kraken platform offers 130 crypto trading pairs, and thus can be considered one of the best platforms for crypto trading. This exchange can be used by everyone, as it targets a variety of investors – from beginners to companies, interested in digital currencies.
- Opportunity to earn rewards through staking
- Cryptocurrency beginners can use the site’s guide for tips
- Reported losses in the past because of hacks and insufficient exchange support
- High fees for instant buying
The Gemini exchange was created by the cryptocurrency billionaires the Winklevoss twins with the intention to provide a safe platform for traders. For customers seeking secure trading and good customer support, this could be one of the best platforms for crypto trading.
- Provided hot wallet insurance
- Special service Gemini Pay makes available crypto payments with more than 30,000 retailers
- Margin investing or short selling aren’t supported
- The fee structure concerning different services may be confusing
Uniswap is built on the Ethereum blockchain and is the most popular decentralized exchange for cryptocurrencies. Cryptocurrency traders who seek regulatory freedom can define this as one of the best platforms for crypto trading. It offers a wide variety of DeFi tokens, as well as its own native cryptocurrency UNI which is used for different purposes in the ecosystem.
- Ability to swap all ERC-20 tokens
- No identity verification when registering
- High gas fees
- Possible offered scam coins due to no security check on assets
Which Platforms Should You Choose to Trade Cryptocurrency in 2022?
We can’t offer you any advice on which platform is the right one for you. However, if you consider the information listed here, you could find the best platforms for crypto trading easier and from them, choose the one that is most suitable for your needs. Our only advice would be to conduct thorough research to avoid losing your funds due to poor preparation.