🔥 The 5 Best Coinbase Alternatives ▷ Exchange Comparison
Currently stands Coinbase at the forefront of crypto exchanges. With over 11 million users and nearly 38 million wallets, it's no wonder it appeals to the masses. In fact, Coinbase ranks high for the number of first-time users because it has an easy-to-use dashboard and a trusted reputation.
However, that doesn't mean that Coinbase is bug-free. Crypto trading on Coinbase also has its fair share of disadvantages and problems. Hence, many people are interested in using the Coinbase alternatives listed below:
Coinbase is clearly not for everyone. Fortunately, there are Coinbase alternatives. The ones listed below are some of the better options for 2020.
1st place: Etoro
eToro was founded in 2007eToro is a broker that has been the world's leading social trading network for a decade. The potential of cryptocurrencies can also be found on eToro. 16 different cryptos can be traded on the platform. This not only gives the millions of registered users of eToro the opportunity to trade crypto currencies, but also offers potential crypto investors an interesting platform to gain exposure to these assets.
CFD: Stands for 'Contract For Difference'. This means that you cannot buy cryptocurrencies directly from eToro. Instead, you buy or sell contracts that are backed by cryptocurrency. This gives traders the opportunity to get used to the fluctuations in the price of the cryptocurrency market. This makes CFD brokers like eToro one of the easiest ways to get into the world of crypto markets.
Not only is eToro fully regulated, it also allows you to copy the cryptocurrency portfolios of the most successful traders on the platform. Many find this feature particularly useful, saying that this option makes eToro stand out from the crowd.
eToro combines the properties of a broker and an exchange: you can trade crypto CFDs as well as buy real coins at eToro and then transfer them to your eToro wallet.
In addition, eToro offers the cheapest fees when buying cryptocurrencies. That is why we recommend our test winner eToro, as the best alternative for Coinbase.
2nd place: Plus500
Plus500 was founded in 2008, is headquartered in Israel and operates through subsidiaries in the UK, Cyprus and Australia. Plus500UK Ltd. is authorized and regulated by the FCA (Financial Conduct Authority).
As one of the largest CFD brokers in the world, Plus500 is listed on the London Stock Exchange. Bitcoin News.one rates this as positive, as the company meets higher standards than unlisted brokers. For those who want to trade cryptocurrency on mobile, Plus500 offers you one of the best CFD trading apps on the Apple and Google Play stores.
CFD: Stands for 'Contract For Difference'. This means that you cannot buy different cryptocurrencies directly at Plus500. Instead, you buy and sell contracts that are backed by cryptocurrency. This gives traders an opportunity to familiarize themselves with the ups and downs of the cryptocurrency market while ensuring that they don't have to worry about setting up additional cryptocurrency wallets.
(76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money.)
3rd place: Bitmex
Bitmex is a cryptocurrency-based CFD trading platform. Their trading pairs include various cryptos that users can trade through a contract for difference. Bitmex offers high leverage (up to 100x) and uses a fair price marking system to fairly value both perpetual and futures contracts.
Bitmex has its own order book. You can buy and sell crypto CFDs by exchanging them. In addition to the Bitmex stock exchange listing, trades are also valued and liquidated according to index pricing. Bitmex calculates the spot price of Bitcoin contracts by taking their prices into account in both Bitstamp and Coinbase Pro.
Many crypto traders turn to Bitmex for their highly leveraged trading opportunities. You can trade up to 100x on Bitcoin contracts or 50x on Ethereum. Our Bitmex guide has everything you need to know about the platform and how to get started.
4th place: Binance
Binance is a cryptocurrency exchange launched in July 2017 under the direction of CEO Changpeng Zhao. Since then, the exchange has seen a rapid rise and is now the largest cryptocurrency exchange in the world!
Due to the surge in popularity, Binance was forced to reject new customer registrations in January 2018. While the exchange was closed to new customers, private deals for Binance accounts worth several thousand dollars have been made! You can now open accounts again for free.
Unlike Coinbase, Binance is an exclusive crypto-to-crypto exchange and does not allow fiat currency deposits.
5th place: CEX.io
CEX.io was founded in London in 2013 and its exchange offers users a simple and pleasant user experience. With an easy to navigate verification process that precedes the purchase of cryptocurrencies, challenges the complexities of other exchanges.
The CEX.io exchange supports a wide variety of payment options, including credit and debit cards, as well as direct bank-to-bank transfers. It supports fiat currencies and has a wide range of support for cryptocurrencies like Litecoin, Bitcoin Cash, Ripple, and DASH.
Users also have the option of direct trading with CEX.io. A nice feature that CEX.io offers is the ability to make trades using a smartphone. This is especially useful for those who are always on the go. Like the other exchanges on this list, CEX.io is a trusted and secure platform. The trading fees are between 0,0 and 0,2% per transaction.
Coinbase: experiences and problems
# 1 cryptocurrencies are limited.
Coinbase trades only with the most common coins such as Litecoin, Ethereum and Bitcoin. If you want to trade currencies that are newer, not very well known or not that popular, you need to look for an alternative platform.
# 2 Accessibility is limited.
Coinbase is currently only available in 32 countries. You can visit the Coinbase website to see if a particular country is allowed or not. However, it is strange that there are restrictions on cryptocurrency exchanges based on geography. This is especially strange as cryptocurrencies are based on a decentralized system.
# 3 The payment options are limited.
Most bank transfers and debit / credit cards are accepted by Coinbase, but other methods such as PayPal are only available in the US.
# 4 premium transaction costs.
The transaction fees on Coinbase range between 1,49% and 3,99%, depending on the payment method and the country in which the transaction is carried out. These aren't the highest fees you will find, but they aren't exactly cheap either.
Frequently asked Questions:
Coinbase only trades in the most common coins such as Litecoin, Ethereum and Bitcoin. If you want to trade currencies that are newer, not very well known or not that popular, you need to look for an alternative platform.
Coinbase is clearly not for everyone. Fortunately, there are Coinbase alternatives. The ones listed below are some of the better options for 2019.
Gemini was founded in New York in 2014 and is a reputable Coinbase alternative. Unlike other exchanges, Gemini does not charge any transaction fees. This gives the exchange a distinct advantage as other exchanges charge users a small fee for each transaction. In addition, the Gemini wallet offers cold storage, i.e. your coins are stored offline
Kraken was founded in 2011 in San Francisco and is widely regarded as one of the most popular Coinbase alternatives. Kraken has built a reputation for being one of the safest exchanges around.