This post will highlight five different options for buying and selling cryptocurrency along with a brief explanation of the pros and cons associated with each exchange. Like all my posts, these are meant to be brief, direct and under 5 minutes in read time. Always weigh the pros and cons of each exchange before deciding which entity to commit your capital to. This list is not exhaustive — there are literally hundreds of different exchanges to trade cryptocurrency. These just happen to be a few of the more user friendly ones and should allow for an easy introduction to cryptocurrency investing.
Binance US
Pros:
- Wide variety of altcoins to trade on the exchange.
- Funds are “Safu” — Binance claims to have a “Secure Asset Fund for Users” to provide insurance against “extreme cases”. Despite this I always recommend sticking to cold storage.
Cons:
- Site isn't the most user friendly in its design in relativity to others on this list.
- As of early 2021, no New York users due to regulatory requirements. 12 more states are also affected: Alaska, Alabama, Connecticut, Georgia, Florida, Hawaii, Louisiana, North Carolina, Idaho, Vermont, Washington, Texas. But Binance US is “working on getting people from these 13 states ready to trade.”
Website: https://www.binance.us/en/home
Coinbase
Pros:
- Very user friendly and easy to navigate the site. Easy to link a bank account and start buying/selling.
- Coinbase “earn” — get paid to learn about different cryptocurrencies.
- Fiat on site is FDIC insured similar to a traditional bank. Cryptocurrency is NOT insured.
Cons:
- Limited altcoins to choose from in comparison to other exchanges.
- High trading fees when trading on the standard site. Fees can be reduced by trading on Coinbase Pro.
Website: https://www.coinbase.com/
Gemini
Pros:
- Extremely regulatory compliant. All cryptocurrencies on the site undergo New York State Department of Financial Services (NYSDFS) review as well as establish a rating from the Crypto Rating Council (CRC).
- Once again, user friendly and easy to navigate making it easy to link payment/banking information.
- Gemini Earn- allows you to earn interest on your cryptocurrency directly on the site. Note — Be sure to research the risks associated with lending your cryptocurrency on platforms like Gemini Earn.
Cons:
- Limited selection of altcoins in comparison to other exchanges.
- Will occasionally experience server downtimes during heightened market activity.
Website: https://www.gemini.com/
Robinhood
Pros:
- Very user friendly and easy to navigate the app.
Cons:
- Do not have actual custody of your cryptocurrency, you can only buy and sell on Robinhood. You will not be able to send/receive your cryptocurrency using Robinhood.
- Lock out periods where Robinhood will halt or restrict trading on certain assets.
- Limited altcoins available.
Website: https://robinhood.com/us/en/
Square
Pros:
- Many people already utilize Square for traditional payments, making it easy for existing users to participate in cryptocurrency.
- Relatively straightforward user interface.
Cons:
- Cannot guarantee access to the platform at all times, especially in times of heightened site traffic.
- May not always support instant withdrawals to external wallets. This is a “security feature”.
Disclaimer
None of what you are about to read should be taken as financial advice. I am not a licensed financial adviser. This Medium post is comprised of my own opinions and should be taken as such. I encourage all my readers to do their own research and come to their own conclusions. The content written here is for informational purposes only, you should not perceive any of the information or material as legal, tax, investment, financial, or other advice. Nothing contained in this Medium post constitutes a solicitation, recommendation, or endorsement to buy or sell any securities or financial instruments in this or any jurisdiction. Investing in cryptocurrency involves risk of loss. Loss of principal is possible and you as the reader should acknowledge this possibility.
