Best Platforms For Crypto Investment: Where To Invest?

With the recent resurgence of Bitcoin and Ethereum, many people are wondering where the best place is to buy crypto. There are thousands of financial products and services out there, but some of the best cryptocurrency exchanges and platforms for investors include Coinbase, Kraken, Crypto.com, Gemini, and eToro.

Coinbase is one of the most popular platforms with a straightforward process. You can currently purchase Bitcoin, Ethereum, and Litecoin and 30+ other coins and tokens. Uphold is another good option as it allows you to trade multiple assets without having to go back to cash. Kraken is one of the original crypto trading platforms and has a good selection of coins and tokens to trade and invest in. Gemini is one of the largest exchanges by assets and supports most major cryptocurrencies. Crypto.com is one of the largest and fastest-growing crypto exchanges, offering access to over 90 tokens and coins worldwide, and 50 tokens and coins in the United States. eToro has been around for a while in the UK and Europe, and now allows traders in the United States. They offer a huge variety of digital assets to buy and sell on their platform.

When choosing the best platform for your needs, it's important to consider the number of tokens and coins available, the price or commission charged, the ease of use, the security of the platform, the customer service, and the features (such as cryptocurrency savings accounts).

Security and safety measures

Security and safety are paramount when choosing a cryptocurrency exchange, as investors need to be confident that their assets are protected from theft and fraud. Here are some of the key security and safety measures to consider:

• Cold Storage: Leading crypto exchanges hold the majority of their customers' assets in cold storage, which means they are kept offline and shielded from potential hacking attempts. This is a critical security measure that helps protect investors' funds.
• Two-Factor Authentication (2FA): Reputable crypto exchanges often encourage, or even require, users to enable two-factor authentication when securing their accounts. This adds an extra layer of protection, making it harder for unauthorized individuals to access accounts.
• Hot Wallet Insurance: Some exchanges, like Gemini, offer hot wallet insurance to protect users' funds in the event of a security breach. This ensures that even if there is a successful hacking attempt, users' funds remain safe.
• SOC 2-Certification: Gemini, the crypto exchange with the best security according to Investopedia, is SOC 2-certified. This means that third-party auditors have verified the company's security and compliance frameworks, providing an extra layer of assurance for users.
• KYC Compliance: Know Your Customer (KYC) regulations are in place to prevent money laundering and fraud. While some users may see this as a hassle, it is an important security measure that helps protect the integrity of the exchange and its users.
• Bug Bounty Programs: Some of the most secure crypto exchanges have bug bounty programs, where they encourage white-hat hackers to find and report vulnerabilities in their systems. This proactive approach helps exchanges identify and fix potential security flaws before they can be exploited by malicious actors.
• Advanced Security Features: Top crypto exchanges often provide advanced security features to protect their users. For example, Gemini allows users to review and approve devices used to log into their trading accounts, adding an extra layer of security.
• Secure Payment Methods: The best crypto exchanges offer a range of secure payment methods, including wire transfers, ACH transfers, and credit or debit card payments. Users should be cautious when using credit cards, as some exchanges and card issuers may treat crypto purchases as cash advances, resulting in additional fees.
• User Education: Security is a shared responsibility between the exchange and its users. Reputable exchanges like Coinbase provide educational resources to help users understand the risks and best practices for safeguarding their assets.
• Compliance with Regulations: Reputable crypto exchanges, particularly those operating in the U.S., strive to comply with financial regulations and Know Your Customer (KYC) rules. This helps ensure that users are dealing with a legitimate company that follows established security protocols.
• Transparency and Audit: Crypto exchanges that undergo third-party audits of their reserves and regularly publish transparency reports build trust with their users. This transparency helps users verify that the exchange is securely managing their assets.
• Device and IP Whitelisting: Some crypto exchanges allow users to whitelist trusted devices and IP addresses for account access. This adds an extra layer of security, ensuring that only authorized devices can access sensitive information and perform transactions.
• Geographic Restrictions: To comply with local regulations, some crypto exchanges may restrict their services in certain jurisdictions. For example, Binance is not available in all U.S. states, and Bybit is banned in the U.S. due to KYC-related concerns.

Fees and charges

When it comes to fees and charges, there are a few different types of fees to consider when using a cryptocurrency exchange. Here are some of the most common ones:

• Trading Fees: These are typically charged as a percentage of the amount of cryptocurrency being bought or sold. Some exchanges may offer a flat-rate trading fee instead. For example, Crypto.com charges trading fees ranging from 0.00% to 0.075%, while Coinbase's trading fees range from 0.00% to 0.60%.
• Maker and Taker Fees: These fees are charged by some exchanges and are based on the type of order being placed. Maker fees are typically lower than taker fees, as makers add liquidity to the exchange while takers remove liquidity. For instance, Kraken's maker fees start at 0.25%, while taker fees start at 0.40%.
• Deposit and Withdrawal Fees: These fees are charged when depositing or withdrawing funds from the exchange. For instance, Crypto.com charges a flat fee of $25 for fiat withdrawals, while Kraken charges a dynamic fee for crypto withdrawals.
• Account Fees: Some exchanges may charge monthly or annual account fees, especially if they offer additional features or services.
• Transaction Fees: These fees are charged when transferring cryptocurrency between different wallets or addresses. They are typically very low but can add up over time.
• Spread Fees: Some exchanges, like Cash App, charge a spread fee, which is the difference between the buy and sell price of the cryptocurrency.

It's important to carefully review the fee structure of any cryptocurrency exchange before choosing one, as fees can significantly impact your profits, especially when trading large volumes. Additionally, some exchanges offer discounts or lower fees for high-volume traders or users who hold a certain amount of the exchange's native token.

Types of cryptocurrencies offered

The number of cryptocurrencies offered by different platforms varies widely. For example, Crypto.com offers over 250 cryptocurrencies, while Fidelity Crypto offers just two. Generally, if you're looking for anything more than Bitcoin, Litecoin and Ethereum, you should opt for a pure-play crypto exchange. Here is a list of some of the most popular crypto platforms and the number of cryptocurrencies they offer:

• Coinbase: 240+
• Robinhood Crypto: 15
• Gemini: 70+
• Kraken: 200+
• Crypto.com: 350+
• Fidelity Crypto: 2
• Interactive Brokers: 4
• EToro: 27
• Binance: 30+
• Uphold: 30+
• Bitstamp: 70+
• M1 Finance: 10

User-friendliness and educational resources

Coinbase

Coinbase is a popular choice for beginners due to its user-friendly interface and easy purchase process. It offers a large number of supported cryptocurrencies and provides a custodial wallet option for new investors. Coinbase also has strong security measures and advanced trading features for more experienced users. However, it has relatively high fees and is not available in all U.S. states.

Gemini

Gemini is another platform known for its user-friendly interface and strong security measures. It offers an extensive selection of educational resources through its Cryptopedia library, making it a good choice for those who want to learn more about crypto. Gemini is available in all 50 U.S. states and provides a crypto rewards credit card. However, it has a convoluted fee structure and limited customer service options.

Crypto.com

Crypto.com is a beginner-friendly platform with a simple and intuitive interface. It offers a wide range of cryptocurrencies and provides a DeFi wallet for users to store their crypto and earn rewards. Crypto.com also has high cybersecurity ratings and supports a crypto rewards credit card. However, it charges higher trading fees for low-volume investors.

Kraken

Kraken offers two platforms: Kraken and Kraken Pro. While the basic Kraken platform is not the cheapest, Kraken Pro provides advanced features and volume discounts for lower fees. Kraken also has good customer service options, including phone support, and publishes educational materials on cryptocurrency. However, it is not available in all U.S. states and does not accept all fiat currencies.

EToro

EToro is a newcomer to the U.S. market and offers a user-friendly platform with an engaging communal experience. It provides access to 27 cryptocurrencies and allows users to copy the trading strategies of advanced users. Cryptocurrency holdings can be transferred off the platform, and it offers an online brokerage platform for trading stocks and ETFs. However, eToro is not licensed in the U.S. and does not offer advanced trading features.

Customer service and support

When it comes to customer service and support, there are a few key things to keep in mind when choosing a cryptocurrency platform. Firstly, it is important to remember that crypto is still a relatively new and burgeoning industry, and the level of customer service can vary significantly between different platforms. Many pure crypto exchanges do not offer the option to speak to a person for assistance, so this is an important consideration if that is a priority for you.

It is also worth considering the range of educational resources and guidance provided by the platform. Some platforms offer extensive educational materials and guidance to help users navigate the complex and rapidly evolving world of cryptocurrency. Others provide more limited resources, which may be insufficient for those who are new to crypto or investing in general.

Additionally, it is important to research the reputation of the platform by reading customer reviews and assessing the platform's history. This can provide valuable insights into the quality of customer service and support, including any common issues or problems that users have encountered.

Another key consideration is the availability of the platform in your country or state. Many platforms have limited availability or are not licensed in certain jurisdictions, so it is important to verify that the platform you choose is accessible in your location.

Finally, it is worth noting that some platforms offer a range of customer rewards and loyalty programs. These can provide various benefits, such as discounts, rebates, or crypto rewards, which can enhance the overall user experience.

Frequently asked questions