There are more than 1,600 cryptocurrencies in circulation today. Together, they create a market cap of more than $289 billion. As crypto continues to grow, it only makes sense that cryptocurrency exchanges continue to grow.
Around the globe, investors are very eager to start trading on this rapidly-growing platform. The question, then, is which platform to choose, and which crypto exchange is the best one for you to get started on.
While all exchanges allow consumers to sell, buy, or trade cryptocurrencies, they’re not all created equal. Whereas some exchanges are ideal for less-experienced traders, others are better-suited for full-time, professional traders.
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Here’s what you need to know about the top five crypto markets out there today, and how you can take advantage of each.
Coinbase
Coinbase is an exchange based in San Francisco.
Founded in 2012, it currently offers four tradable coins and an expansive set of tools for merchants who want to start trading. Users on the platform can sell, store, and buy tokens. Then, they can use them to make payments to companies like Expedia and Overstock, which accept bitcoin.
As the first cryptocurrency platform to achieve a valuation of more than $1 billion, Coinbase has become one of the most popular crypto exchanges out there.
BitMEX
BitMEX is a mercantile exchange for bitcoin. While some platforms, like Coinbase, cater to retail investors, BitMEX is designed to cater to dedicated traders.
It processes more than $2 billion in transactions daily. It does not currently handle fiat currency and is not available to customers throughout the United States.
Gemini
Gemini is an exchange launched by two former Facebook employees. Similar in structure to Coinbase, Gemini isn’t available in all 50 states throughout the country. Designed to support the trading of bitcoin and Ethereum, Gemini provides FDIC insurance for cash balances.
Kraken
Kraken is a digital currency exchange that offers 17 different cryptocurrencies for people who want to trade on the platform. Unlike many other exchanges, this one offers a tiered program. This makes it effective for both beginning investors and more experienced traders. While you cannot fund the platform via U.S. dollars, it is possible to trade other cryptocurrencies from your wallet or other platforms.
KuCoin
One of the strongest exchanges, KuCoin, also offers a mobile app (Android and iOS). The platform has been constantly updating its mobile app, and is currently one of the best and brightest in the industry.
Choosing the Exchange that Works for You
When it comes to choosing a cryptocurrency exchange, finding the one that suits your goals, needs, and experience is essential.
These five crypto exchanges all offer various benefits and drawbacks, and those features make them ideal for some investors while ill-suited to others.
When you understand this, as well as the fact that not all exchanges are created equal, you can take proactive steps to identify the exchange that works best for you. A solid understanding will also allow you to take full advantage of the platform. If you’re like most traders, you’ll find that you actually use a mixture of exchanges over the course of your trading lifetime.
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It’s essential to fluidly adapt to the exchanges you use and to be cognizant of when things just aren’t working. Once you’re proficient in these aspects, you can find an option that suits you, your trading goals, and your long-term objectives.