Best Platforms To Buy Cryptocurrency: A Comparison

Trading on the best platform to buy cryptocurrency can significantly improve your trading experience – especially if you’re a frequent.

By choosing the right option, you can get competitive prices, free resources on digital marketplaces, and be safe while trading. Many cryptocurrency trading platforms also offer a secure digital wallet where you can store the currencies you’ve bought.

In this guide, we have compiled a list of the best cryptocurrency trading platforms so that you don’t have to do extra legwork. You’ll also find some additional information here that will help you choose the most suitable exchange – depending on what type of trader you are. 

Let’s begin. 

1: Understanding Cryptocurrency Trading Platforms 

With trading cryptocurrencies online, you’ll have the opportunity to choose between two options – a crypto trading platform and a broker.

If you are using the former, you can buy or sell cryptocurrencies directly with another buyer/seller. However, a broker will act as an intermediary between the buyers and sellers – and charge a small fee for their intervention.

So, which option would be more suitable for you? 

With digital currency exchanges (platforms), you can see the live market price and negotiate better deals with the other buyers/sellers. The broker, on the other hand, will set their own price, which might be higher or lower than the current market price. 

As a rule of thumb, if you are an experienced trader, using an exchange will be a better option for you. Apart from allowing you to be in control of the cryptocurrency purchase process, it also offers a secure trading environment for you. 

Nonetheless, a broker can help you learn the nooks and crannies of cryptocurrency market trends and blockchain technology benefits. So, this can be a valuable experience for a beginner trader. 

Types Of Platforms 

There are three types of cryptocurrency trading platforms you can choose from –

A. Centralized Exchange (CEX) 

Coinbase – An Example of CEX (Source) 

A centralized exchange is operated by a single organization that acts as an intermediary and processes all transactions through its servers. These platforms offer a wide range of currencies and advanced trading features to their users. However, the fees of CEXs tend to be higher than usual, and their privacy-related security isn’t as robust as the DEXs.

Pros	Cons
Easy to use	You won’t have direct control over your private keys
Faster trades due to a controlled environment	CEXs are more prone to hacking
Fiat currencies can be integrated into the platforms

B. Decentralized Exchange (DEX)

Uniswap – An example of DEX (Source) 

Decentralized exchanges use blockchain technology to help you trade directly with other buyers/sellers without any central authority. While this offers much greater security and privacy in contrast to CEXs, you may also find the technology to be difficult to use. The level of liquidity is also lower in DEXs, as you have to personally negotiate and sell your cryptos. 

Pros	Cons
No central authority to control your funds	Lower trading volume makes it difficult to find sellers or buyers
Reduced risk of hacking, as there’s no single point of failure	Limited fiat currency options
Better privacy as minimum user information is collected here

C. Peer-to-Peer Platforms (P2P) 

KuCoin P2P – An Example of Peer-to-Peer Platforms (Source)

Similar to DEXs, you can get connected to other buyers and sellers directly with a P2P platform. However, in a peer-to-peer transaction, the platform will act as an Escrow account during the transaction to make the cryptocurrency purchase process more secure. 

Pros	Cons
Lower fees compared to CEXs	Lack of regulation by a central authority
Better privacy and security	Getting a refund can be challenging
Diverse payment options

2: Key Features To Look For 

The operational approach of most cryptocurrency trading platforms is quite similar. Thus, if you want to choose the best option in the crowd, it’s best to compare their features and efficiency with each other. For example –

A. The Security Level 

Whether you’re using a DEX, CEX, or a P2P platform, securing your funds should always be your primary concern. Here are some security features you should look for to determine if a platform’s digital asset management is reliable or not –

• It should use an industry-standard encryption protocol, such as AES-256, to protect your personal information.

• Two-factor authentication can create a secure trading environment by sending a unique code to your phone (which is used for login purposes).

• The platform should operate under the regulations of the SEC (for the USA), ASIC (for Australia), and FCA (for the UK).

B. User Interface 

A crypto platform with a user-friendly UI can help you grasp the functionality of the system quickly while reducing manual errors. Some elements of a good UI can include – 

• Simple and clear design with readable fonts and minimal colour schemes.

• Straightforward navigation with familiar placements of icons and labels.

• Consistent design layout with the features of the platform being arranged in a logical order.

An Example of a Well-Designed UI in a Crypto Platform (Source) 

C. Fees And Costs 

The fee structure of every crypto platform is unique and logically integrated, considering the features and level of security provided. So, to find the most suitable option for you, here are a few categories you need to compare – 

• Some platforms might ask for a fee to open a new account – which may vary depending on the type of account and how much you’re depositing initially.

• Trading commissions (a fee charged by the platform for every trade you’ve made).

• Fees associated with withdrawing funds from your account (will depend on the currency and withdrawal method).

Some platforms may also charge you if you’ve been inactive for a long time. So, these should be avoided by casual traders. 

3. Top Cryptocurrency Trading Platforms 

In this section, we are going to list three cryptocurrency trading platforms and discuss their key features, pros, and cons. 

A: Binance

Created in 2017, Binance supports more than 350 different cryptocurrencies. You can also explore a range of different trading options here, including spot trading, options and futures. 

Why Do We Love It? 

Binance has a very low trading fee, and you’ll get a 25% discount from the platform as a BNB holder. Thanks to Binance’s minimalistic UI, you can find all of its crypto exchange features in one place. Currency exchange can also be done with a single click here. Users may also earn passive income on their idle assets through Binance Staking. 

Our Reliability Rating	4.5/5
Trading Fees	0.1% (for Spot trading) & 0.02% (limit order take profit)
Tradable Coins	Around 500 cryptocurrencies
Minimum Investment	Depends on the currency you’re buying (e.g., $5 for Bitcoin)
Unique Trading Feature	Margin trading (you can borrow funds from the platform for trading with a higher amount of money)

Pros 

• Users can use Binance coins to get additional discounts.

• The platform has strong security measures, including KYC and 2FA.

• There is a P2P platform integrated in Binance.

• It offers various educational resources on blockchain and trading for beginners.

• You can install the mobile app of Binance to use it on the go.

Cons 

• Offers limited functionalities for US users.

• Regulatory issues.

B: Coinbase

Fred Ehrsam and Brian Armstrong co-founded Coinbase for one and only reason – to help beginners with crypto trading. The crypto exchange features provided by the platform are very easy to use as well. There is also a Coinbase Pro version available on the same platform, which is dedicated to experienced traders. 

Why Do We Love It? 

The trading experience on Coinbase feels really seamless and secure. It also supports more than 360 cryptocurrencies and over 400 different trading pairs. Besides, you can make withdrawals or deposit ACH for free. While the KYC procedure of the website is stringent, it makes your trading experience safer in the long run. 

Our Reliability Rating	4.3/5
Trading Fees	0% to 3.99%
Tradable Coins	360+
Minimum Investment	Depends on the currency you’re buying (e.g., $10 for Bitcoin)
Unique Trading Feature	Advanced Trade platform (read more about it here)

Pros 

• ‘Coinbase One’ members can trade eligible cryptocurrencies without paying trading fees.

• Has excellent security measurements, such as cold storage, two-factor authentication.

• High liquidity level due to large user base.

• Staking and reward options are available.

• 400+ different trading pairs.

Cons 

• Limited customer support.

• Low transparency regarding trading fees.

C: Kraken 

Kraken focuses more on offering a secure trading environment with advanced trading options directed at expert traders. It offers spot trading at current market rates and crypto futures at competitive fees. However, it has faced some regulatory issues in recent years. 

Why Do We Love It? 

Being one of the best digital currency exchanges, Kraken offers a transparent and secure trading ecosystem for both experienced and novice traders. You can also explore the advanced trading tools of the platform, such as futures and margin, to make your trading experience more fun and engaging. 

Our Reliability Rating	4.6/5
Trading Fees	0.02% (for margin trading) 0.25% – 0.40% (for maker and taker)
Tradable Coins	340+
Minimum Investment	$1 (depends on payment methods)
Unique Trading Feature	Advanced Order Types (e.g., stop-loss, take-profit, trailing stop, etc.)

Pros 

• The cost structure is transparent, and fees are relatively lower.

• High liquidity/trading volume.

• Strong security measures.

• Availability of free educational materials.

• Relatively low withdrawal fees for BTC.

Cons 

• Crypto credit card isn’t available.

• Limited funding options.

4: Comparing The Platforms 

Previously, we offered a fundamental review of each three platforms. Now, let’s compare them on different bases to find out the most suitable option for you. 

A: Security 

Kraken stores around 95% of user assets in a cold storage (air-gapped) that is always under surveillance. The signup process of the platform also has more than one checkpoint – which improves its security even more. Kraken also perform penetration testing and third-party auditing frequently to check their proof-of-records. 

Coinbase keeps 98% of user data in an offline cold storage (geographically-distributed). It is also insured by the FDIC for $250,000, which speaks volumes for their excellent cryptocurrency security measures. 

However, Binance doesn’t disclose any details on the security measures they use. They have mentioned that their team stores user data in cold storage but refrained from mentioning any figures.

B: User Experience 

Coinbase is a beginner-friendly platform and prioritizes ease of use over everything else. On the contrary, Binance and Kraken cater more to experienced traders. So, you can find more customization options to create complex trading strategies in these two. 

C: Fees and Costs 

Among the three options, Coinbase is the most expensive option, followed by Kraken and Binance. That’s because Coinbase has a larger spread on its pricing structure – and you’ll have to pay more trading fee if you are using a credit card for payment. 

Kraken’s tiered discounts along with maker-taker fee structure reduces the expenses to some extent. Binance, on the other hand, has a complex tiered payment structure – but it’s based on the trading volume. So, if you are not trading a high amount of cryptocurrency, the fees will be lower. The platform also offers discounts if you are using BNB.

What Would We Choose: Kraken, solely because of its brilliant security structure and lower expenses. Yes, it is difficult to use for the beginners – but there are lots of materials available that can help you understand the platform better. 

5: Tips For Choosing The Right Platform 

Choosing the most suitable cryptocurrency trading platforms will depend on three aspects, including –

A: Assess Your Needs 

Whether you are just beginning or have traded cryptocurrencies before, your needs will always be different from those of another trader. So, ask yourself – 

• How frequently will I be using the platform? 

• Do I need a platform with more features or ease of use? 

• Is the website’s security protocol good enough? 

If you want to use a platform with more advanced features, Binance will be an excellent option for you. However, if a beginner-friendly option is what you’re looking for, Coinbase is a great platform to explore. Kraken is more focused on security and convenience. 

B: Research And Reviews 

Reading reviews from online users can be a great way to learn more about a platform and its security measures, pricing structure, level of transparency, etc. If you have friends or family members who have used digital currency exchanges before, discussing with them might also be helpful. However, it’s always best to do your own research. 

C: Start Small 

If you are still a beginner, it might be best to start small and invest only a small amount of your savings first. If you are planning to go big, follow cryptocurrency market trends closely and diversify your investment across different channels. 

Conclusion 

Comparing the best cryptocurrency trading platforms and choosing the most suitable option among them can be difficult.

However, if you are doing thorough research, learning more about crypto exchange features and cryptocurrency market trends – the process will certainly be easier.

You may also consider investing a small amount of money on each of these platforms and see which one suits you the most.