Coinbase is the world’s largest publicly traded crypto exchange and is immensely popular among users for its transparency and low fee structure.
However, the recent $1.25 billion cyberattack on leading crypto exchange Bybit sent shockwaves through the market, highlighting the risk to even the most established players.
This alone is a good enough reason to look for the best alternatives to Coinbase in 2025. That’s why we’ve composed a thorough, comparative marketplace analysis. Read on to discover our full guide to the best alternatives to Coinbase.
The best Coinbase alternatives – A quick look
Before we dive into our detailed reviews of each platform, here’s a quick look at the 11 best alternatives to Coinbase in 2025.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
- eToro: A multi-asset platform offering access to multiple instruments, including stocks and cryptocurrencies. Social trading is among its key features.
- Kraken: This platform’s low fee structure, extensive support for cryptocurrencies, and advanced features make it an excellent choice for new and existing crypto investors.
- BloFin: A growing crypto exchange offering low fees, advanced trading tools, and high liquidity, catering to both retail and institutional traders.
- CEX.io: A crypto exchange with spot trading, margin trading, native crypto wallet, staking, and savings plans. Available to US, UK, and European traders.
- Binance: In addition to low fees and a user-friendly trading platform, this Coinbase alternative features an unmatched portfolio of crypto products and plenty of advanced features.
- OKX: A global crypto exchange with low trading and withdrawal fees and plenty of advanced features for experienced traders. The platform offers attractive trading and learning options for new traders as well.
- MEXC: A super fast crypto exchange that offers several innovative features, along with usual trading features, such as spot trading, futures trading, up to 200x leverage, and many more.
- KuCoin: A global exchange with extensive crypto listings, futures trading, and passive income options, known for its user-friendly interface and innovation.
- Bybit: Primarily a crypto-to-crypto trading platform that provides high-quality products and services, including yield-generating products, to meet the needs of all kinds of traders.
- Gate.io: This platform is ideal for both beginners and experienced traders. It offers a massive selection of over 1,700 cryptos and plenty of trading features, including trading bots, margin trading, staking crypto, and more.
- Gemini: This platform’s commitment to security and compliance and its availability in all 50 US states make it a reliable choice for traders.
- Show Full Guide
Choosing the best alternatives to Coinbase
We analyzed the best alternative crypto exchanges to Coinbase using criteria such as ease of use, number of assets available, security, and fees.
Our reviewers also used their own experience with the platform to judge subjective qualities like ease of use and customer service.
Read more about how we rank crypto exchanges in our full methodology below.
Top Coinbase alternatives- A closer look
Now that you know which are the best 11 Coinbase alternatives, let’s understand what makes them so:
1. eToro: A social trading Coinbase alternative for crypto and stocks
An emerging crypto powerhouse with a social trading advantage, eToro is a revolutionary platform that caters to both stocks and crypto. It was among the first trading platforms to support digital currency trading, adding support for trading Bitcoin (BTC) in 2013.
While eToro currently offers only 21 cryptocurrencies (some regions may have access to fewer cryptocurrencies), the platform’s social trading feature makes it popular among investors who want to replicate the strategies of successful traders.
Traders also get access to exclusive perks for their trading strategies, such as premium digital publications, eToro debit cards, and more.
eToro is highly beginner-friendly and intuitive, but its advanced features also cater to more experienced traders. The platform has a transparent fee structure. It charges just 1% for buying and selling cryptos, and this fee is adjusted in the bid and ask spread.

source: etoro
eToro has a simple web-based platform and a well-designed mobile app. Its intuitive “Trading” tab, for instance, allows traders to view current prices and buy, sell, or convert crypto.
Regarding safety, crypto assets users hold in the eToro Money crypto wallet are stored on the blockchain. In contrast, other assets are usually held in cold storage to reduce the chances of funds getting lost due to hacking or operational issues.
Overall, eToro’s crypto offering may be limited for now. Still, considering the company’s more than 15 years of market experience and massive user base, it seems all set to become a crypto powerhouse and is one of the best alternatives to Coinbase available today.
Number of Cryptocurrencies | 80 |
Payment methods | Debit card, Bank transfer, E-wallet |
Trading fees | 1% |
Customer service options | Automated chatbot, Live chat |
Regulations | Regulated by FCA (UK), ASIC (Australia), CySEC (Cyprus), SEC & FINRA (USA) |
Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs. Copy Trading does not amount to investment advice.
The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
eToro USA LLC does not offer CFDs and makes no representation, and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
2. Kraken: A secure and regulated Coinbase alternative for traders
Kraken stands out for its low fees, deep liquidity, and strong security. If you’re serious about trading or investing in crypto, it’s one of the most reliable platforms out there.
First, the fee structure is a big win. Spot trading fees start at just 0.16% for makers and 0.26% for takers, with even lower rates if you trade more. Compare that to platforms that charge a flat fee on small trades—it adds up fast.
Security is another major advantage. Kraken has never been hacked, which is rare in the crypto world. It keeps most funds in cold storage, requires two-factor authentication (2FA), and offers extra security settings like withdrawal allowlisting. If you care about keeping your assets safe, it’s one of the best choices.
Liquidity is also a strong point. If you’re trading major assets like Bitcoin or Ethereum, you’ll get tight spreads and fast order execution. That means no surprises with sudden price jumps when placing large trades.
For advanced traders, Kraken Pro offers more charting tools, order types, and lower fees. Margin trading and futures are available, too, with up to 5x leverage. But the platform is easy to use even if you’re just buying and holding.
One more plus: Kraken supports a wide range of fiat currencies, including USD, EUR, GBP, and JPY. If you’re outside the U.S., this makes deposits and withdrawals smoother than on platforms that mainly cater to Americans.
Straightforward fees, crypto futures trading, strong security, deep liquidity, and global accessibility—Kraken checks all the right boxes and present it as an excellent alternative to Coinbase.
Number of Cryptocurrencies | 360+ |
Payment Methods | Bank transfer, Wire transfer, Apple Pay, Google Pay |
Trading Fees | 0.16% maker, 0.26% taker |
Customer Service Options | 24/7 Live chat, Email, Phone |
Regulations | Regulated in the US (FinCEN), FCA (UK), AUSTRAC (Australia), MAS (Singapore) |
Pros
- Margin and derivative trading
- Advanced trading options
- Low trading fees
Cons:
- Educational content not as extensive as Coinbase
- Staking is not available to U.S. residents
3. BloFin: A rising Coinbase competitor with low fees and tools
BloFin stands out with its high-speed order execution, diverse asset offerings, and low fees.
One of its biggest strengths is futures trading. BloFin offers various perpetual and quarterly contracts with competitive funding rates. The platform’s matching engine ensures ultra-fast trade execution, reducing slippage even in volatile markets. If you’re serious about derivatives trading, this is a solid option.
Security is another major advantage. BloFin uses multi-layered security measures, including cold storage for funds and advanced risk control systems. Account safety is a top priority, with two-factor authentication (2FA) and withdrawal whitelisting to prevent unauthorized access.
The platform also caters to spot traders with a growing list of crypto pairs and minimal trading fees. You get access to deep liquidity, meaning large trades can be executed without major price fluctuations. Market makers benefit from additional fee discounts, making it attractive for high-volume traders.
New to crypto? BloFin offers a user-friendly interface that balances simplicity with advanced tools. Whether you’re placing a quick market order or using advanced charting for technical analysis, the experience feels smooth and intuitive.
On the rewards side, BloFin frequently runs promotions, bonuses, and referral programs. Earning passive income through staking and yield products is another perk, allowing you to grow your holdings over time.
If you want a trading platform that delivers fast execution, strong security, and competitive fees, BloFin is worth considering. It’s designed for both beginners and experienced traders looking to optimize their strategy.
Number of Cryptocurrencies | 100 |
Payment methods | Crypto deposits only |
Trading fees | 0.1% spot fees, 0.02% maker, 0.06% taker on futures |
Customer service options | Email, Telegram |
Regulations | Limited regulation info |
Pros
- Lower trading costs compared to many platforms
- Variety of perpetual and quarterly contracts
- Passive income on idle assets
- Low latency ensures quick order matching
- Bonuses, airdrops, and referral incentives
Cons:
- Requires third-party services for cashing out
- Lack of fiat trading pairs
- Funds are not FDIC or government-backed
4. CEX.io: A user-friendly Coinbase alternative with fiat support
CEX.io was established in 2013. The crypto exchange is a great alternative to Coinbase as it is regulated in multiple jurisdictions. It is available in most US states and recently resumed its services in the UK.
If you are just interested in buying cryptos (Bitcoin and altcoins) without trading, CEX.io provides multiple payment methods, including PayPal, Skrill, prepaid cards, Apple Pay, and Google Pay. In 2024, the company partnered with MoneyGram to convert USDC to cash at selected locations in the European Economic Area.
A range of products is available that appeal to the majority of traders: spot trading, margin trading, and a trading API for algorithms. For individuals not interested in trading, CEX.io offers staking services for selected cryptocurrencies.
The exchange also has a native Web 3 wallet, where cryptocurrencies can be swapped directly from the wallet. The most attractive feature is the CEX.io card, a crypto debit card that was launched in 2024 in partnership with MasterCard. All cryptocurrencies available on CEX.io can be paired with the card. At this time, the crypto card is only available to EEA residents.
Savings programs with a fixed annual return of 4.00% are available for Tether (USDT) and Circle (USDC). Bitcoin and Ethereum currently offer 3.00% per annum. Other tokens (LINK, OP, LTC, SHIB, etc.) have lower yields on the platform.
The exchange has a dedicated section (‘university’) for beginners that guides new traders on the market. On the downside, the last lesson released was published in May 2024.
Overall, CEX.io is a great alternative to Coinbase for traders in the EU and in the United States.
Number of Cryptocurrencies | 100+ |
Payment methods | Credit/Debit card, Bank transfer, Crypto deposits |
Trading fees | 0.25% taker, 0.15% maker |
Customer service options | 24/7 Live chat, Email |
Regulations | FCA (UK), FinCEN (USA), MTR (Estonia) |
Pros
- Spot and margin trading available
- Crypto staking and savings programs
- Multiple payment methods to purchase cyptocurrencies
Cons:
- The education section needs updating
- Other exchanges have a greater selection of cryptocurrencies
5. Binance: A feature-rich Coinbase competitor for global crypto traders
Binance is the go-to platform if you want deep liquidity, low fees, and a massive selection of cryptocurrencies. It’s built for both beginners and pro traders, offering everything from spot trading to futures, staking, and more.
One of the biggest draws is the trading fees. You can get rates as low as 0.1%, and if you use BNB (Binance’s native token) to pay, you’ll save even more. That’s a big deal when you’re making frequent trades.
Security is another strong point. Binance has a Secure Asset Fund for Users (SAFU), which acts as a backup in case of hacks. It also offers advanced security features like multi-factor authentication and withdrawal whitelists.
If you’re into passive income, Binance has you covered. You can stake crypto, earn interest through savings products, or use liquidity farming to maximize returns. It’s a way to grow your holdings without actively trading.
For those who prefer automation, Binance offers trading bots and API access, making it easy to set up strategies that run 24/7. That’s a game-changer if you don’t want to sit at your screen all day.
Overall, Binance’s diverse cryptocurrency offerings, advanced features, lower fees, and simple UI make it a popular choice for traders worldwide and one of the best Coinbase alternatives.
The main platform’s absence from the US, however, tarnishes its attractiveness somewhat.
Number of Cryptocurrencies | 390+ |
Payment methods | Bank transfer, Credit/Debit card, Crypto deposits |
Trading fees | 0.1% 0.075% option for BNB holder |
Customer service Options | Live chat, Email |
Regulations | Registered in multiple jurisdictions, including Cyprus, Dubai (VARA), and France (AMF); US operations limited |
Pros
- Supports a large number of cryptocurrencies
- Low trading fees
- Supports margin and derivative trading
Cons:
- Standard platform not available in US
- History of regulatory issues in various jurisdictions
6. OKX: A powerful Coinbase alternative with advanced trading options
If you’re looking for a crypto exchange with deep liquidity, low fees, and advanced trading tools, OKX stands out. It offers spot and futures trading, staking, and even DeFi features—all under one roof.
One of its biggest draws is its trading fees. The platform uses a tiered system, rewarding high-volume traders with lower costs. Even at the base level, fees are competitive, making it a solid choice for anyone trying to maximize profits.
For those who like automation, OKX supports trading bots, including grid and dollar-cost averaging (DCA) strategies. These help you execute trades around the clock without constant monitoring.
Security is another strong point. OKX uses cold storage for most assets and multi-factor authentication to protect user accounts. It also has an emergency backup system in case of unexpected disruptions.
If you’re into passive income, OKX Earn lets you stake or lend your crypto for returns. The platform provides various options, from flexible staking to high-yield DeFi projects.
The exchange also caters to Web3 users. It has a built-in wallet for DeFi, NFTs, and cross-chain transactions. This makes it easy to move assets between centralized and decentralized platforms without leaving the ecosystem.
With a sleek interface and a mobile app that keeps all features accessible, OKX gives you full control over your trading experience. Whether you’re a casual investor or an active trader, it’s built to handle your needs.
Taking this into account, OKX is one of the most diverse and best alternatives to Coinbase in 2025.
Number of Cryptocurrencies | 310+ |
Payment methods | Bank transfer, Crypto deposits, P2P |
Trading fees | Spot: 0.02% – 0.2% Futures: -0.01% – 0.05% |
Customer service options | Email, Telegram |
Regulations | Not regulated in most jurisdictions |
Pros
- Support many trading bots
- Demo account and copy trading feature
- Low trading fees
- Good Selection of cryptocurrencies
Cons:
- Not fully available in the US or Canada
- May appeal more experienced traders
7. MEXC: A high-liquidity Coinbase competitor for altcoin enthusiasts
MEXC stands out with its deep liquidity, an extensive range of trading pairs, and some of the lowest fees in the market. If you’re looking for a platform that prioritizes fast transactions and high-volume trading, this one delivers.
Spot and futures traders will appreciate MEXC’s zero maker fees and competitive taker fees. That’s a huge advantage if you trade frequently and want to maximize profits. The platform also supports over 1,600 cryptocurrencies, giving you access to assets that other exchanges don’t list.
Security is another key strength. MEXC uses multi-layer protection, cold storage, and advanced risk control to keep user funds safe. The platform has never suffered a major hack, which speaks to its reliability.
New traders can take advantage of MEXC’s simple interface and earn rewards through staking, liquidity mining, and futures competitions. For experienced users, the platform offers advanced order types, leveraged ETFs, and deep market analytics.
If you’re tired of limited withdrawal options, MEXC solves that with multiple fiat on-ramps and a flexible P2P marketplace. The exchange also supports copy trading, letting you follow the strategies of top traders to improve your own results.
With 24/7 customer support and a strong global presence, MEXC keeps things running smoothly no matter where you are. If you want access to more tokens, lower fees, and faster transactions, this platform is worth considering.
Number of Cryptocurrencies | 2700+ |
Payment methods | Crypto deposits, P2P |
Trading fees | 0.0% spot fees, 0.02% maker, 0.06% taker on futures |
Customer service options | Email, Live Chat |
Regulations | Regulated under MSB, MAS |
Pros
- Super fast trade execution
- Allow investing in new coins
- Get high staking APYs
- Futures and leverage trading
Cons:
- No support for NFT
- Limited support in US
8. KuCoin: A versatile Coinbase alternative with extensive crypto listings
KuCoin stands out with its wide selection of cryptocurrencies, low trading fees, and advanced trading tools. Whether you’re a casual trader or deep into crypto, you’ll find plenty to work with here.
With support for over 900 digital assets, it’s a top destination for discovering crypto under 1 dollar making it easier to spot undervalued gems before they go mainstream.
Trading fees are some of the lowest in the market, with a base rate of just 0.1%. You can lower that even further by holding KuCoin’s native token (KCS), earning discounts and daily rewards.
KuCoin offers futures, margin trading, and trading bots for those who want more than basic trading. The bots help automate your trades, making it easier to execute strategies without constant monitoring. If you prefer passive income, there’s staking, lending, and interest-earning options that let you put your assets to work.
Security is strong, with multi-layer encryption, two-factor authentication, and an insurance fund to cover certain losses from breaches. While it’s a centralized exchange, it also has a non-custodial trading feature (KuCoin Wallet) for those who prefer more control over their assets.
Another big plus? The exchange doesn’t require full identity verification for basic trading, making it accessible for users who value privacy.
If you want deep liquidity, a huge range of assets, and powerful trading tools without paying high fees, KuCoin is worth considering. Check out our comprehensive KuCoin review.
Number of Cryptocurrencies | 900+ |
Payment methods | Crypto deposits, P2P |
Trading fees | 0.10% maker/taker |
Customer service options | Email, Chatbot |
Regulations | Unregulated, based in Seychelles |
Pros
- Strong market depth for smooth trading
- No mandatory KYC for basic trading
- KuCoin Wallet for direct asset control
- Available in most countries
Cons:
- Not licensed in some major markets
- Some coins have expensive withdrawal costs
9. ByBit: A derivatives-focused Coinbase alternative for pro traders
ByBit is a go-to exchange if you’re looking for low fees, deep liquidity, and a strong focus on derivatives trading. It’s built for traders who want flexibility, whether you’re into spot trading, futures, or options.
This Bybit futures review will help you understand better.
The platform offers up to 100x leverage on certain contracts, making it a solid choice for high-stakes traders.
Speed is another key advantage. Bybit’s trading engine executes 100,000 transactions per second, reducing slippage and ensuring your orders go through fast, even during peak volatility. You won’t be left hanging when prices swing.
Security is tight, with most funds stored in cold wallets. The platform also uses multi-signature withdrawals and 24/7 monitoring to keep assets safe. Two-factor authentication (2FA) is standard, adding an extra layer of protection to your account.
Bybit also stands out with its rewards and promotions. You’ll find bonuses for new users, cashback on trades, and regular trading competitions. If you like earning while trading, these perks add real value.
The platform supports a wide range of assets, including major cryptocurrencies and newer altcoins. It also integrates fiat onramps, letting you buy crypto with credit cards, bank transfers, and third-party payment services.
For traders looking for advanced tools, Bybit delivers. It offers in-depth charting, multiple order types, and an intuitive mobile app that keeps you connected on the go.
Whether you’re scalping, swing trading, or holding for the long term, you get the tools to trade efficiently.
Number of Cryptocurrencies | 540+ |
Payment methods | Credit/Debit card, Bank transfer, P2P |
Trading fees | 0.1% maker/taker |
Customer service options | Live chat, Email |
Regulations | Unregulated, headquartered in Dubai |
Pros
- Many features to earn passive income
- 1:1 reserve of all customer assets
- High-performance copy trading platform
- Strong security measures
Cons:
- May appeal less to beginners
- Not available in the U.S.
10. Gate.io: A Coinbase competitor with deep altcoin market access
Gate.io is a comprehensive platform covering a range of trading digital assets, including cryptocurrencies. The platform offers almost all advanced trading features, ranging from crypto loans to margin trading and high staking yields
Gate.io allows retail investors to take up to 10x leverage and use their crypto holdings as collateral to take out crypto loans. Investors can earn high APYs (Annual Percentage Yields) by staking their coins. For instance, staking USDT can earn 16.65% APYs.
For starters, the platform has a Copy Trading feature, which allows them to replicate the strategies of skilled and experienced traders. Gate.io also allows traders to invest in new and innovative cryptocurrency projects.
For experienced traders, the platform offers advanced trading tools and many innovative features, including trading bots with high customizability options. In terms of fees, the platform offers competitive fees to its users, with options to reduce it further with the use of GateToken (GT).
Gate.io also prioritizes user education and boasts a massive library of informative articles, tutorials, and webinars on its platform. The platform also excels in implementing robust security measures, such as cold storage and external audits.
Overall, Gate.io is a user-friendly platform with dedicated security measures and an extensive selection of cryptocurrencies, making it a reliable option for investors looking to diversify their investments in digital assets.
Number of Cryptocurrencies | 2800+ |
Payment Methods | Crypto deposits, P2P, , Apple Pay, Google Pay |
Trading Fees | 0.20% |
Customer Service Options | Email, Telegram |
Regulations | Unregulated, based in the Cayman Islands |
Pros
- Over 1,400 cryptos supported
- High APYs
- Margin and leverage trading
Cons:
- Not available in some jurisdictions
- Platform may be overwhelming for starters
11. Gemini: A regulated and secure Coinbase alternative for U.S. users
If security and compliance are your top priorities, Gemini stands out. Founded by the Winklevoss twins, it’s a fully regulated U.S. exchange with strong security measures. You get FDIC insurance on USD balances, SOC 2 Type 2 compliance, and hardware security modules to protect your assets.
Gemini also makes crypto accessible. The interface is clean, easy to navigate, and designed for both beginners and experienced traders. You can buy, sell, and earn interest on crypto with just a few taps. The mobile app mirrors the web experience, so you won’t feel lost switching between devices.
For active traders, Gemini offers ActiveTrader, a professional-grade platform with advanced charting, multiple order types, and lower fees. If you trade frequently, this can save you money compared to standard trading fees.
Gemini Earn lets you earn interest on your crypto holdings, making it a solid choice if you want passive income. Rates vary by asset, but it’s a simple way to put your crypto to work instead of just holding it.
Want a crypto debit card? The Gemini Credit Card lets you spend your crypto while earning cashback in Bitcoin or other cryptocurrencies. It works everywhere Mastercard is accepted and has no annual fees.
Security, ease of use, and extra features like staking and a crypto credit card make Gemini a strong option if you’re looking for a reliable exchange. Whether you’re a casual investor or an active trader, it offers a balanced mix of safety, usability, and earning potential.
Number of Cryptocurrencies | 70+ |
Payment methods | Bank transfer, Wire transfer, Crypto deposits |
Trading fees | Taker: 0.10% – 0.25% Maker: 0.0% – 0.25% |
Customer service options | 24/7 Live chat, Email |
Regulations | Regulated by NYDFS (New York, USA), SOC 2 compliance |
Pros
- Available in all U.S. states
- Earning opportunity with Gemini credit card
- Security and regulatory compliance
Cons:
- High fees
- Not all popular cryptocurrencies supported
Coinbase alternatives: A comparison
Exchange | No. of cryptocurrencies | Payment methods | Trading fees | Regulations |
eToro | 80+ | Bank transfer, Credit/Debit card, PayPal, Skrill, Neteller | 1% on crypto trades | Regulated by FCA (UK), ASIC (Australia), CySEC (Cyprus), SEC & FINRA (USA) |
Kraken | 360+ | Bank transfer, Wire transfer, Apple Pay, Google Pay | 0.16% maker, 0.26% taker | Regulated in the US (FinCEN), FCA (UK), AUSTRAC (Australia), MAS (Singapore) |
BloFin | 100+ | Crypto deposits only | 0.1% spot fees, 0.02% maker, 0.06% taker on futures | Unregulated, based in the Marshall Islands |
CEX.io | 100+ | Credit/Debit card, Bank transfer, Crypto deposits | 0.25% taker, 0.15% maker | FCA (UK), FinCEN (USA), MTR (Estonia) |
Binance | 350+ | Bank transfer, Credit/Debit card, Crypto deposits | 0.10% spot fees | Registered in multiple jurisdictions, including Cyprus, Dubai (VARA), and France (AMF); US operations limited |
OKX | 400+ | Bank transfer, Crypto deposits, P2P | 0.08% maker, 0.1% taker | Unregulated, headquartered in Seychelles |
MEXC | 1800+ | Crypto deposits, P2P | 0.0% spot fees, 0.02% maker, 0.06% taker on futures | Unregulated, but popular globally |
KuCoin | 900+ | Credit/Debit card, P2P, Crypto deposits | 0.1% maker/taker | Unregulated, based in Seychelles |
Bybit | 400+ | Credit/Debit card, Bank transfer, P2P | 0.1% maker/taker | Unregulated, headquartered in Dubai |
Gate.io | 1700+ | Crypto deposits, P2P | 0.2% maker/taker | Unregulated, based in the Cayman Islands |
Gemini | 100+ | Bank transfer, Wire transfer, Crypto deposits | 0.20% maker, 0.40% taker | Regulated by NYDFS (New York, USA), SOC 2 compliance |
Different types of crypto trading platforms
With such a broad range of options available in the market, here is a simplified breakdown of the different types of crypto platforms.
Centralized exchanges (CEXs)
CEXs run on a centralized server, and that’s why they are called centralized exchanges. Such an exchange matches buyers and sellers to facilitate transactions in exchange for a fee for each trade.
Centralized exchanges offer a user-friendly and familiar trading interface, making it easier for new users to trade crypto. Such exchanges follow high governance standards and are subject to regulatory scrutiny.
CEXs also require users to share personal information, but only to comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws.
Decentralized exchanges (DEXs)
Unlike CEXs, DEXs do not rely on a central authority; rather, they use an automated system to allow trade between buyers and sellers. Such exchanges also use smart contracts and blockchain technology to allow peer-to-peer trading of crypto assets.
DEXs offer comparatively low transaction costs and higher security. Uniswap, PancakeSwap, and Curve are some examples of DEXs.
P2P exchanges
P2P or peer-to-peer exchanges are platforms where users trade cryptocurrencies directly with each other. Basically, such platforms give users the choice to select the other trader they want to transact with.
Unlike CEXs and DEXs, buyers and sellers on a P2P platform need to agree on the token price before a transfer is made. Such platforms allow users to stay anonymous and keep prices low.
How to choose the right Coinbase alternative
In such a saturated market, it’s important to feel confident and assured in picking the right crypto exchange. Here are some key pointers on how to do this.
- Fees: Coinbase is known for charging comparatively higher transaction fees. Thus, it is important that the platform you select offers low fees especially if your looking at Coinbase listings. You must also ensure that other fees, such as withdrawal fees, transfer fees, and more, are minimal on the platform.
- Reputation: Cryptocurrencies are still a relatively new asset class that has already attracted many frauds and scams. Thus, it is important that you select a well-established and reputed platform. Consider user reviews and industry insights to support your decision.
- Ease of use: If you are just starting your investing career, you don’t want to handle too many tabs and complex interfaces. Make sure the trading platform you select is easy-to-use and has a user-friendly interface.
- Transaction types: Make sure the platform you select offers all the transaction types that you want to trade now, and you may trade in the future. For instance, if you are an experienced trader, you will want your exchange to support advanced transaction types such as margin and derivative trading. If you’re interested in a better comparison on this topic, read our crypto.com vs. Coinbase article.
- Customer support: Customer support is another feature to look for before zeroing in on a Coinbase alternative. Ensure that the platform offers many customer support options and is available 24/7 for quick query resolution.
Risks of using a crypto exchange
While now established, the crypto markets are still relatively new and unregulated. Here are some of the key risks associated with this.
Security risks
The growing popularity of crypto exchanges is attracting many malicious actors. Hackers try to gain unauthorized access to user funds stored on crypto exchanges, and crypto exchanges’ weak security practices raise the chances of such risks.
User risks
Crypto transactions are irreversible as they are stored on a blockchain. It means that once a user executes a transaction it can’t be reversed or cancelled. If this is a concern to you then you can consider no-KYC exchanges.
Regulatory risks
Regulations surrounding cryptocurrencies and exchanges are still being developed. Thus, there are many areas where regulations are unclear or there are no regulations. The absence of comprehensive regulations raises the chances of fraud and unethical practices by unscrupulous exchanges.
Operational risks
Crypto exchanges may encounter technical glitches and system outages, resulting in poor user experience and likely losses of users due to issues with trade execution.
Counterparty risks
Such a risk is high in P2P or peer-to-peer exchanges. There is no central authority in P2P exchanges, and thus, users trade with each other directly. Users are responsible for selecting the other party, negotiating the terms, and executing the contract terms.
Methodology: How we chose the best Coinbase alternatives
To find the best Coinbase alternatives, we first identified the factors that make Coinbase popular among users. We then used those parameters to find Coinbase alternatives. We assigned a score to each Coinbase alternative on each of those parameters.
Finally, we used the cumulative score of each exchange to come up with the list of top Coinbase alternatives. Following are some of the factors that we looked at:
- Trading fees: Coinbase has among the lowest trading fees in the industry. Thus, we have considered exchanges with trading fees that are lower or similar to Coinbase.
- Customer support: It is one of Coinbase’s strengths, and thus, the exchanges we considered also offer robust customer support. By robust customer support, we mean offering users many ways to contact customer support and quick response time.
- Advanced trading features are often the most important factor when choosing an exchange. When creating a list of Coinbase alternatives, we considered the presence of both basic and advanced features.
- Ease of use: It basically means how easy the platform is to use. To determine the platform’s ease of use, we considered user reviews, especially from beginners.
While the focus here is on trading platforms, users looking for decentralized storage options should also explore alternatives to MetaMask for secure wallet functionality beyond exchanges.
FAQs
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References
- Web Fee Schedule: Gemini
- How trading fees work on Kraken
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