Best Cryptocurrency Exchanges in 2022
Investing in cryptocurrencies is an easy process when using a premium crypto exchange. These platforms offer their clients the tools to make informed decisions when buying coins like Ethereum, Bitcoin, and Litecoin. The best crypto exchanges have low fees, coin variety, and a straightforward trading interface.
Today we’ll showcase our top picks for the best cryptocurrency exchanges in 2022. Also, we’ll discuss their best key features, how to get started, along with their pros and cons.
Best Exchanges To Buy Cryptocurrencies in 2022
We’ve researched the marketplace and found some excellent options for beginner and expert investors. You can check them out in the table below:
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is a platform where users can purchase various coins. They facilitate trades between users and apply a small fee for using their services. Moreover, exchanges provide investment opportunities after purchasing crypto, like staking and liquidity pools.
What Is the Difference Between Cryptocurrency Exchanges and Brokers?
New investors may find it confusing to understand the difference between a cryptocurrency exchange and a broker. An exchange offers real assets that users can trade, withdraw, and pay for various services. However, a crypto broker offers derivative products that do not convey ownership of cryptocurrencies. Instead, they let investors speculate the price of coins at a predetermined price.
What is a centralized and decentralized exchange?
Centralized exchanges (CEX) are owned by a singular entity that runs the platform. An authority regulates these platforms and issues a license to operate in specific jurisdictions. A centralized exchange works like a stock exchange, connecting investors to participate in various trading activities.
Decentralized exchanges (DEX) are polar opposites to centralized platforms since no corporation owns them. However, this means they cannot be regulated and rely on the community to ensure their trustworthiness. DEXs require you to connect your crypto wallet to the exchange for trading. Also, decentralized exchanges are built on the blockchain, making them more secure than most centralized options.
Ways To Buy Cryptocurrencies on the Exchanges
Investors have several ways to purchase cryptocurrency. Below are the most convenient methods to acquire coins through crypto exchanges:
Centralized Payment Methods
Credit and Debit Cards: Bank cards are widely available on all centralized exchanges. Some platforms allow users to buy coins directly with their cards, making it easier for beginners. However, directly buying cryptocurrency with a debit or credit card has higher fees.
Bank Transfer: Using a bank transfer is a secure and fast way to deposit funds into your account. Afterward, you can use the trading interface to purchase coins.
eWallet: Online banking platforms like Neteller and PayPal provide options for buying popular coins like Bitcoin, Ethereum, and Litecoin. Moreover, you can connect your bank card to the eWallet, making it convenient when depositing money to an exchange.
Decentralized Payment Methods
Prepaid Card: Prepaid cards are available to purchase online and at convenience stores. They work like regular bank cards but do not require you to set up an account to use.
Cryptocurrency: Investors can deposit cryptocurrencies to an exchange to purchase coins without revealing their identity. Also, DEXs let you connect your crypto wallet to the platform to exchange tokens.
Crypto ATM: These machines operate like regular ATMs and exchange fiat currency for crypto. They create a paper wallet which you can use to transfer coins to an exchange.
What Are the Best Cryptocurrency Exchanges in 2022?
CoinBase is perhaps the best choice for beginners due to its user-friendly design. Their platform has an educational section that goes over how to buy cryptocurrencies, new developments in the market, and in-depth tutorials. Also, CoinBase Earn lets investors receive free coins for answering simple questions revolving around the crypto space.
Furthermore, the trading platform is amazing and straightforward to use. Investors have multiple trade types that let them receive better prices when buying crypto. Also, CoinBase provides staking opportunities for various coins, allowing clients to earn interest on their holdings.
CoinBase has advanced charting and trading tools.
Recently CoinCase has changed its fee structure that matches the pro version of their platform.
CoinBase protects all their clients' funds up to $250,000 using FDIC insurance.
CoinBase now has ultra-low fees
CoinBase Earn lets users receive free tokens
Customer support is slow
Limited variety of cryptocurrencies
How to Get Started
Open the official CoinBase website and click the sign-up button.
Provide your email address and generate a strong password. Then open the verification email that you’ll receive in your inbox.
Verify your identity by completing the KYC process, which will lift any restrictions on your account.
Deposit funds into the account and open the trading interface.
Select the coin you want to purchase and input the amount.
Click “buy”, and the order will execute. Afterward, you can look at your CoinBase wallet to see the newly acquired coins.
Binance provides a great service for traders with different skill levels. They have several trading interfaces designed for various investment activities like converting coins, margin trading, and lending crypto. Also, Binance has multiple staking options that can be locked or unlocked, depending on your strategy.
Binance has a great selection of cryptocurrencies that range from low to high market caps. Furthermore, the crypto exchange has created a utility token called BNB. The coin is a payment method for fees and reduces all costs by 25%.
Binance is the largest cryptocurrency exchange globally, with over 28.6 million users.
The platform supports a huge selection of coins.
Binance is regulated in multiple jurisdictions.
Binance provides multiple staking options
Holding the BNB token reduces fees by 25%
Binance has several trading interfaces
Customer support is terrible
High fees for margin trading
How to Get Started
Open Binance and complete the sign-up process.
Verify your identity and provide proof of address to lift account restrictions.
Then deposit funds into the account and select one of the trading platforms.
Select the coin you want to acquire with the relevant trading pair.
In the required section, write the amount you want to purchase.
Review the order and hit the “buy” button.
KuCoin is known as “The People’s Exchange” because of the excellent service they deliver. The crypto exchange is based in Singapore but has expanded to multiple nations worldwide. In fact, they claim 1 in 4 investors use their platform to buy coins. In addition, KuCoin has one of the best fee structures amongst exchanges, making it desirable for most investors. Like Binance, the native KuCoin Token (KCS) reduces trading fees by 25%.
Moreover, the platform features over 500 cryptocurrencies to buy, sell, and withdraw. So those looking for a wide selection of assets may appreciate the vase selection KuCoin provides. Also, the platform has amazing protection, and clients can improve their security by enabling 2-step authentication.
KuCoin offers a wide selection of cryptocurrencies.
KuCoin is the 5th largest exchange in the world.
KuCoin has a comprehensive support center that helps clients with common questions regarding the platform.
Excellent investment options
Great fee structure
Holding the native KuCoin token reduces costs on the platform by 25%
Not licensed to operate in the United States
KuCoin does not offer 24/7 live chat
How to Get Started
Start the registration process on the official KuCoin website.
Write your email address and create a strong password. Then agree with the terms of service and click next.
KuCoin will send a verification email that you need to open. Afterward, you’ll gain access to your dashboard, where you can trade cryptocurrencies.
The platform doesn’t require completing a KYC process to withdraw and deposit coins. However, there will be withdrawal restrictions until you verify your identity.
Kraken is favored by the crypto community because of the transparent service they provide. Recently they announced that all future audits would be public so investors can verify those real assets back all their coins. The platform itself has a user-friendly interface that makes it convenient to use.
In addition, they host a great selection of coins on their trading platform. Clients have the option to execute stop-loss, market, and limit orders to receive coins at their desired price. Furthermore, Kraken focuses a lot on security and has a dedicated page showcasing how your funds are protected. Also, you can whitelist your crypto addresses and enable 2-step authentication to improve your security further.
Kraken is open with its community and will make all future audits public.
Kraken supports over 90 cryptocurrencies.
The in-depth learning section lets complete beginners learn the fundamentals of crypto.
Kraken has an impressive user interface
Multiple layers of security
Kraken has a trustworthy track record
Limited variety of coins
$10 minimum trade limit
How to Get Started
Head over to the Kraken home page and click the sign-up button.
Provide your email address, password, and accept the terms of service.
Next, you’ll receive a verification email from Kraken that you must click.
After, verify your identity to lift any restrictions associated with the account.
Now, you can deposit funds into the account and buy cryptocurrency through the trading interface.
eToro is a cryptocurrency broker that offers derivative products on coins. So, if you don't mind not owning your tokens while investing, eToro is the most user-friendly option among brokers. Their interface is designed perfectly, so it’s easy to find all the features you need.
Furthermore, eToro offers a great range of cryptocurrencies, and the platform often adds new coins to their system. Finally, the buying process is straightforward, making the broker accessible to those less tech-savvy with crypto investing.
eToro offers derivative products on all supported cryptocurrencies.
The platform provides indemnity insurance up to $1 million if the client lives in Europe, the United Kingdom, or Australia.
eToro is one of the biggest crypto brokers, with 23.2 million registered users.
eToro features a user-friendly interface
Excellent customer support
Great selection of cryptocurrencies
Users won’t own real cryptocurrency with eToro
No deposit option for cryptocurrency
How to Get Started
Navigate to the homepage of eToro and press the registration button to get started.
Then eToro will require you to provide your email address and password.
Accept the terms of service and click next. eToro will send a verification link to your email that you’ll need to click.
Afterward, you’ll gain access to your dashboard, where you can check out the available coins and manage your account.
Now, you’ll need to verify your identity by submitting a government-issued document.
Deposit funds and open the crypto marketplace. Here you can purchase various coins or look at successful portfolios and copy them.
What To Consider When Choosing the Best Crypto Exchange?
When selecting a cryptocurrency exchange, there are multiple factors to consider. Here are the main aspects you should think about before signing up:
Fee Structure: Crypto exchanges apply fees for using their services. This can range from trading, staking, depositing, and withdrawal fees.
Insurance Fund: The best exchanges have an insurance fund that protects clients’ money if it were stolen. Therefore, this feature is essential if you hold a large sum of cryptocurrency.
Cryptocurrency Variety: Diversifying your holding is a great investment strategy. The exchange should provide a wide selection of cryptos to invest in.
Investment Opportunities: After buying coins, you’ll want to participate in various investment opportunities to earn interest. The platform should provide staking, liquidity pools, and lending.
Security: The best crypto exchanges focus on security and have a dedicated page to showcase what technologies they use. Moreover, they let users whitelist their crypto addresses so withdrawals can only go through their wallets. Also, 2-step authentication should be available to enable once you create an account.
How To Get Started With Cryptocurrency Exchange?
Cryptocurrency exchanges follow a similar structure for getting started. You can use these steps as a guideline for signing up and buying cryptocurrency.
Step 1: Choose a cryptocurrency exchange after researching its features thoroughly.
Step 2: Create an account with the exchange and verify your email address.
Step 3: After, verify your identity and provide proof of address to lift withdrawal restrictions. Exchanges accept government-issued documents for ID verification and a bank statement, utility, or phone bill for proof of address.
Step 4: Next, deposit funds into the account with your preferred payment method.
Step 5: Open the trading interface and select the coin you want to purchase. Then, select the type of order you want to execute - stop-loss, market, or limit. A market order is the easiest to use because it takes the best available price for the coin.
Step 6: Write the number of coins you want to purchase and review the order. Click the buy button, and the trade will complete.
Step 7: Finally, you can look at your exchange wallet and manage your newly bought assets. From the wallet, you can trade, stake, withdraw and deposit more coins from the wallet.
Alternative Ways To Buy Cryptocurrencies
Nowadays, investors have alternative methods for buying cryptocurrency. Some of the unique methods include:
Crypto ATMs: This method is great for buying coins anonymously since no ID verification is required. They work like regular ATMs but provide exchanges for cryptocurrencies instead.
P2P platforms: These websites connect buyers and sellers to participate in real-world trading. After contacting each other, both parties agree on a location and time for the exchange.
Brokers: Using a broker to invest in cryptocurrencies is an excellent method for beginners since they have simple steps for acquiring coins. Brokers offer derivative products like CFDs, ETFs, and futures.
The best cryptocurrency exchanges provide their users with a great selection of coins, low fees, and multiple investment options. Consider what aspects are essential for your investment strategy and select a crypto platform that offers the most features. We’ve covered the best crypto exchanges for 2022 that you can use right now.