Cryptocurrency (crypto) is gaining popularity as an investment option, and adding it to your portfolio is becoming more common. If you’re interested in buying and selling digital currencies like Bitcoin, Ethereum, and others in cryptocurrency markets, you’ll need to choose the right type of crypto trading platform for yourself.
Explore our top recommendations for the best cryptocurrency exchanges in April 2023, including online crypto exchanges, brokers, and apps, to help you start building your own cryptocurrency portfolio today.
Embrace the crypto investing mindset with expert tips on how to build a successful crypto portfolio.
How to choose the best crypto trading platform
There are numerous excellent cryptocurrency applications available in the market. When selecting the best crypto exchange for your needs, it’s essential to consider which crypto features are most important to you.
Security is a crucial aspect to consider when it comes to cryptocurrencies. The digital assets you hold in your exchange or broker account are generally secure, as long as you use a reputable exchange or broker (such as those mentioned here). The security features of a crypto exchange can be assessed by looking at factors such as the percentage of assets kept offline in “cold storage.” Most top cryptocurrency exchanges store the majority of their digital assets in cold storage, which means they are stored offline and are not vulnerable to hacking or theft. Additionally, it’s important to check if the exchange has private insurance and whether it is part of a bug bounty program that incentivizes ethical hackers to report any vulnerabilities. It’s also advisable to research whether the exchange has ever been hacked. Alternatively, you can choose to store your cryptocurrencies in a separate digital wallet of your own, or even create your own offline storage. However, for most investors, the security and functionality of major exchanges should be sufficient.
It’s crucial to take steps to secure your account as well, such as enabling two-factor authentication and setting up strong passwords, as even the best cryptocurrency app won’t be fully protected without these measures.
Another important factor to consider is investment volatility. Cryptocurrencies, including Bitcoin, are a young and highly volatile asset class, especially the smaller cryptocurrencies. Thus, you need to be prepared to endure significant price fluctuations over time and should never invest more money than you can afford to lose.
The variety of cryptocurrencies available is also a key consideration. While there are over 4,000 cryptocurrencies, most major exchanges only offer a limited selection of 50 to 150 coins. Therefore, if you’re interested in buying a specific currency or investing in smaller coins, you’ll need to find an exchange that offers a wider range of options.
Fees associated with crypto trading are another important consideration. Trading fees can significantly impact your profits, especially if you trade frequently. The best cryptocurrency exchange apps in the United States typically offer low-cost trading, deposit, and withdrawal options. It’s important to be aware of various fees, such as trading fees, deposit fees, and withdrawal fees, which can vary depending on the exchange and type of transaction. Some exchanges may also offer fee-free trading for high-volume traders or reduced fees when using their native coin. Additionally, it’s essential to check the withdrawal and deposit options to ensure they align with your needs.
Customer support is another important aspect to consider when choosing a cryptocurrency app. 24/7 customer service and transaction support can be crucial, especially for those new to cryptocurrency investing, as dealing with issues related to money not arriving in your account can be stressful.
The features and ease of use of a crypto app are also important factors to consider. Look for an app that has the features you need and is beginner-friendly if you’re new to trading. Additionally, check if the crypto exchange is compliant with U.S. crypto regulations and operates in your state if you’re in the United States.
Finally, it’s worth noting that cryptocurrency apps have evolved rapidly to cater to the growing demand for cryptocurrency investments, but some may sacrifice user-friendliness in the process. Therefore, ease of use and user-friendliness should also be considered when choosing a cryptocurrency app.
Whether you decide to go with a crypto broker or a crypto exchange, ensure that it offers the functionality you require. If you prefer trading on your mobile device, look for the best cryptocurrency app that meets your needs. Additionally, consider factors such as security, investment volatility, variety of cryptocurrencies, fees, customer support, and ease of use when selecting the best cryptocurrency app for your needs.
Crypto Expert Tips
When it comes to choosing the best cryptocurrency exchange or broker, here are some expert tips to keep in mind:
Prioritize security: Look for exchanges or brokers that have robust security measures in place, such as keeping a significant portion of their assets in offline cold storage, having private insurance, and participating in bug bounty programs. Additionally, enable two-factor authentication and use strong passwords to secure your own account.
Consider investment volatility: Cryptocurrencies are known for their price volatility, so be prepared for major price swings over time. Only invest money that you can afford to lose and avoid making impulsive decisions based on short-term price movements.
Check available cryptocurrencies: Different exchanges offer varying ranges and types of cryptocurrencies. If you’re interested in specific coins or smaller cryptocurrencies, choose an exchange that offers them to avoid limitations in your investment choices.
Watch out for fees: Trading, deposit, and withdrawal fees can eat into your profits, so compare fees across different exchanges and choose the one that offers minimal costs. Be aware of hidden fees, such as transaction fees for debit or credit card payments, and choose options that work best for your budget.
Consider customer support: Look for exchanges or brokers that offer reliable and accessible customer support, preferably 24/7, to ensure you can get timely assistance when needed.
Evaluate app features and usability: Choose an exchange or broker that has the features you need and is beginner-friendly if you’re new to cryptocurrency trading. Check the app’s usability and ensure it meets your requirements, such as supporting mobile trading if that’s your preferred method.
Stay updated with crypto knowledge: Cryptocurrencies are a relatively new form of investment, and the market can be complex and ever-changing. Stay informed and updated with crypto knowledge to make informed investment decisions and navigate the market effectively.
By considering these expert tips, you can choose the best cryptocurrency exchange or broker that aligns with your needs and investment goals. Remember to always do thorough research and due diligence before making any investment decisions in the cryptocurrency market.
Best crypto exchanges compared
| Exchange | Country | Supported Cryptocurrencies | Trading Fees | User Interface | Security | Trading Volume | Mobile App |
|---|---|---|---|---|---|---|---|
| Binance | Malta | 500+ | 0.1% (or lower with BNB) | User-friendly, Advanced | 2FA, Cold Storage | High | Yes |
| Coinbase | United States | 70+ | 0.5% – 4.5% (variable) | User-friendly | 2FA, FDIC insured | High | Yes |
| Kraken | United States | 50+ | 0.16% – 0.26% (variable) | Advanced | 2FA, Cold Storage | Medium | Yes |
| Bittrex | United States | 200+ | 0.25% (fixed) | Advanced | 2FA, Cold Storage | Medium | Yes |
| KuCoin | Seychelles | 400+ | 0.1% (or lower with KCS) | User-friendly, Advanced | 2FA, Cold Storage | Medium | Yes |
| Huobi | Seychelles | 500+ | 0.2% (variable) | User-friendly, Advanced | 2FA, Cold Storage | High | Yes |
| Crypto.com | Hong Kong | 100+ | 0.04% – 0.10% (variable) | User-friendly, Advanced | 2FA, Cold Storage | High | Yes |
| OKEx | Malta | 400+ | 0.1% (variable) | User-friendly, Advanced | 2FA, Cold Storage | High | Yes |
Do you need a cryptocurrency wallet?
Cryptocurrency wallets offer a secure way to store your digital assets, but they may not be necessary for everyone. If you plan to accumulate a significant amount of cryptocurrencies or want to easily spend your crypto, having a wallet becomes more important.
Many popular cryptocurrency exchanges, such as Coinbase and Gemini, also provide built-in wallets for their users. These wallets allow you to store and manage your cryptocurrencies directly on the exchange. However, it’s worth noting that some exchanges may charge withdrawal fees if you transfer your funds to an external wallet.
If you do decide to use a cryptocurrency wallet, it’s important to find one that is compatible with your exchange. This ensures smooth transferability of your digital assets between your exchange account and your wallet. Additionally, using a separate wallet gives you more control over your private keys and can provide an additional layer of security compared to keeping your assets solely on an exchange.
In summary, while cryptocurrency wallets are not necessary for everyone, they can offer increased security, control, and privacy for managing your digital assets, especially if you plan to accumulate a significant amount of cryptocurrencies or want to spend your crypto easily. It’s important to research and choose a reliable and compatible wallet if you decide to use one.