If you want to get involved in cryptocurrency investing, Coinbase is undoubtedly your first choice. Since their inception, Coinbase has provided a great user experience for beginners. However, Coinbase fees are slightly more expensive compared to other platforms, which often leads investors to look for the best Coinbase alternatives.

Coinbase is an online digital currency exchange headquartered in San Francisco, California. They broker exchanges of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with fiat currencies in around 32 countries. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam.

Pros
  • Coinbase is a regulated company that holds licenses in all its jurisdictions.
  • Coinbase has built up a large user base due to its ease of use, allowing users to buy and sell cryptocurrencies with just a few clicks.
  • Coinbase offers high levels of security, with 98% of customer funds stored offline in “cold wallets.”
  • Coinbase allows users to buy and sell cryptocurrencies using fiat currencies, such as the US dollar or the Euro.
  • Coinbase offers a mobile app for iOS and Android devices, making it possible to buy and sell cryptocurrencies.
Cons
  • Coinbase charges high fees for buying and selling cryptocurrencies, with a 1.49% fee for purchases made with a bank account and a 3.99% fee for credit and debit card purchases.
  • Coinbase has been criticized for its lack of transparency regarding listing new cryptocurrencies on its platform.
  • Coinbase has been known to suspend user accounts without explanation or notice.
  • Coinbase has been slow to add new features, such as support for SegWit transactions.
  • Coinbase is unavailable in all countries, with some countries, such as China, outright banning its use.

What Are The Best Alternatives To Coinbase?


1. Binance

Binance

Binance is a world-renowned crypto exchange that offers a native coin, Binance Coin (BNB). BNB runs on the Ethereum blockchain and can be used to pay fees on the Binance exchange.

While Coinbase lost over 82%, Binance's average volume dropped by only 66% within the same period, from $32.9 billion to $11 billion in July. Binance remains the world’s largest exchange by trading volume and the biggest exchange by Bitcoin supply.

Binance gained a net balance of roughly +300k BTC over the last two years. However, an aggregate of 450k BTC has been withdrawn from the exchange within the same period.

  • Binance has listed 600+ cryptocurrencies.
  • Turkey commands the highest traffic of all users on the exchange, at least 6.4% of the overall traffic.
  • 2022 stats hold that Binance generated a revenue of $300 billion.
  • Three countries have banned Binance: Singapore, China, and the United Kingdom.
  • The exchange has over 2,000 employees spread out remotely across 20 locations.
  • As of today, the Binance.com domain has received over 121 million visitors.
Pros
  • Low fees: Binance charges just 0.1% per trade.
  • High liquidity: This exchange is one of the most popular in the world, meaning there is always someone to buy or sell your coins.
  • Wide range of coins: Binance offers trading in over 100 different cryptocurrencies.
Cons
  • No fiat support: Binance does not allow users to deposit or withdraw fiat currency (i.e., USD, EUR, etc.). This means you'll need to acquire your crypto elsewhere and then transfer it to Binance to trade.
  • Complex interface: The Binance platform can overwhelm new users with its advanced features and charting tools.

2. Bittrex

Bittrex

Bittrex is another US-based exchange founded in 2014. It's one of the most popular exchanges for trading altcoins.

It is one of the most popular cryptocurrency exchanges and allows you to buy and sell a large number of different digital assets.

Pros
  • Bittrex offers a large selection of cryptocurrencies, including many altcoins unavailable on other exchanges.

  • The exchange has a good reputation and is generally considered reliable and secure.

  • Bittrex charges deficient fees, especially if you trade using their native currency (Binance coin).

  • The interface is simple and easy to use, even for first-time users.

Cons
  • Bittrex does not offer margin trading or derivatives.

  • The customer support system is not very responsive.

  • Some users have reported issues with withdrawing funds from the exchange.


3. Bitfinex

Bitfinex

Bitfinex is a Hong Kong-based exchange founded in 2012 that offers margin trading and lending.

Bitfinex is one of the most popular cryptocurrency exchanges out there. It offers a wide range of trading pairs, low fees, and a user-friendly interface—however, some drawbacks to using Bitfinex, such as its hack history and issues with customer service.

Pros
  • Wide range of trading pairs

  • Low fees

  • User-friendly interface

Cons
  • Hack History

  • Issues with customer service

  • No fiat currency support


4. Kraken

Kraken

Kraken exchange is a full-stack cryptocurrency exchange that charges low fees and contains a diverse blend of altcoins to trade with. Besides, the exchange is one among few in the United States that provides advanced trading features such as Margin.

Features

Kraken Exchange is a good fit for: Experienced investors who will make the most of margin trading and other advanced features.

Pros
  • Security

  • Range of cryptocurrencies

  • Advanced trading features

  • Reasonable fees

  • Strong staking options

Cons
  • Not for beginners

  • Limited starter account

  • Slow account funding

  • Questionable customer service

  • No tax support


5. ShapeShift

ShapeShift

ShapeShift is a digital asset exchange founded in 2014 that allows for converting one cryptocurrency to another.

It allows quick and easy swapping of one cryptocurrency to another. It is a popular choice for those looking to trade cryptocurrencies, as it offers a fast and straightforward way to do so.

Pros
  • Easy to use

  • Fast transactions

  • Supports a variety of cryptocurrencies

Cons
  • Requires registration

  • Charges a fee for each trade

  • Limited customer support


6. Changelly

Changelly

Changelly is a cryptocurrency exchange founded in 2013 that offers instant conversion between over 90 cryptocurrencies.

Changelly is a popular cryptocurrency exchange that allows users to convert between different cryptocurrencies easily.

Pros
  • Ease of use: Changelly is very easy to use, even for those new to cryptocurrency trading. The interface is straightforward, and the exchange process is quick and seamless.

  • Coin selection: Changelly offers a good selection of cryptocurrencies that can be traded on the platform. Some popular coins available include Bitcoin, Ethereum, Litecoin, and XRP.

  • Competitive rates: Changelly typically offers very competitive rates for exchanging cryptocurrencies. This can save users a significant amount of money compared to other exchanges.

Cons
  • Limited payment methods: Changelly only allows payments with particular credit or debit cards and via bank transfer. This can limit some users who may not access these payment methods.

  • Potential for scams: As with any exchange, there is always the potential for scams. Users should only deal with reputable exchanges and traders when using Changelly.


7. BitBuy

BitBuy

The Bitbuy system now accepts seven cryptos. Bitbuy has the most significant number of CAD to cryptocurrency pairs of any exchange. For individuals wishing to get into the cryptocurrency market in Canada, Bitbuy provides a simple-to-use exchange.

Pros
  • With Knox Insurance (BTC) as a partner and 95 percent cold storage, there is a strong emphasis on security.

  • Honest and cooperative: BitBuy is a FINTRAC-registered money service business with no hidden charges.

  • Customers can contact customer service via email or by submitting a service request. You will receive a response within the next 24 hours.

  • Consumers can deposit and withdraw supported cryptos as well as Canadian dollars.

  • Quick confirmation: creating a Bitbuy account only takes a couple of minutes, and registration is a breeze.

  • Minimal Charges: The charges are reasonable.

  • Bitbuy places a great value on system speed, ensuring that transactions are completed quickly to avoid slippage.

  • Consumers can use the Pro Trade platform to make market orders and limit orders.

Cons
  • Bitbuy is available only in Canada, and customers should enroll using a Canadian mobile number.

  • Only seven coins are accepted on the Bitbuy system. However, Bitbuy has the highest number of Canadian Dollar–crypto trade pairings and offers some of the top cryptocurrencies by market cap. Bitbuy will also be supporting other major cryptos in the near future.

Features

  • Bitbuy Express Trade is a user-friendly interface for market participants to purchase Bitbuy-enabled cryptocurrencies.
  • Pro Trade: A more advanced trading platform that allows you to trade cryptocurrency-crypto and cryptocurrency-Canadian Dollar pairs. Users can place market orders or limit orders to only purchase and sell.
  • WALLETS: Bitbuy customers can withdraw cash, monitor their transaction records, and monitor their balances.

8. BitFlyer

BitFlyer

BitFlyer is a cryptocurrency exchange located in Japan with a San Francisco branch. Although it only accepts a few virtual currencies, the cost strategy and design make it a decent choice for beginner cryptocurrency users. Experts can use a high-end active trading platform with a separate price plan.

BitFlyer gives a pricing mechanism with no particular per-trade costs, in addition to a straightforward platform for crypto beginners. Rather, it employs stretched pricing, which includes all costs in the currency's price.

In Japan, bitFlyer was launched in 2014. It purports to be the world's largest Bitcoin exchange by volume, despite not having many currencies on its list. It has a branch in the United States called bitFlyer USA, situated in San Francisco.

Pros and Cons

Pros
  • Simple trades have no fixed fees, but more significant transactions do.

  • Basic and complex trading platforms are also available: Advanced users can upgrade to the Lightning trading platform for professionals, where additional fees apply.

  • Top Japanese exchange with almost 2.5 million users worldwide: BitFlyer is the world's largest exchange for Japanese users, with millions of users worldwide.

Cons
  • There aren't many cryptocurrencies to purchase, sell, or trade, and there aren't many cross-cryptocurrency pairs; coin distribution varies by jurisdiction. On the platform, US customers can exchange nine different currencies.

  • Since it is not a top-10 worldwide exchange, it may have less liquidity: Because bitFlyer has significantly smaller trading volumes than the top exchanges, it may be harder to complete trades.

  • Transactions are not fee-free because spreads ranging from 0.1 to 6.0 percent are included in displayed purchase and sell prices.


9. Huobi Exchange

Huobi Exchange

Huobi is a simple and straightforward trading platform. The platform also exists as a native app for both IOS and android users. You will also love Huobi’s informative blog section, which provides blockchain and trading tutorials, press releases, reports, and a course called blockchain 101. Additionally, the digital asset platform has an excellent customer support team that quickly responds to queries. The platform is reliable and safe and adapts to the latest security protocols. Huobi uses cold storage and multi-layer verification, which ensure your funds are secure.

Pros
  • No fees for Chinese traders

  • Super-high liquidity

  • 24/7 phone support

Cons
  • Minimal information in English

  • Possibly faking trading volume


10. LocalCryptos

LocalCryptos

Think of Local Crypto as eBay for cryptocurrencies. A platform where merchants hold crypto and sell them to customers.LocalCryptos is the most popular peer-to-peer cryptocurrency market that serves people across 130 countries.

The exchange facilitates the buying and selling of Bitcoin, litecoin, or Ethereum. Note the exchange supports over 40 payment methods, including PayPal, Skrill, Mpesa, and many more.

The Australian exchange, which began and registered as LocalEthereum, would later rebrand to LocalCrypto in 2019. Localcrypto’s most popular money transfer methods include crypto transfer, debit/credit transfer, and bank transfers.

Features of LocalCrypto

  • Peer-to-Peer Trades – Localcrypto will let you trade with over 200,000 traders from across the world through different payment methods.
  • Non-Custodial Exchange – The exchange does not have access to personal local crypto wallets and does not store one’s coins.
  • Non-custodial escrow – Localcrypto is the first crypto platform to provide a non-custodial escrow system.
  • Low Fees – The platform places a fee of 0.25% and a 0.75% taker fee. The maker is the person who posts an offer, while the taker is the person that responds to that offer.
  • End-to-end message encryption – Data privacy comes first. Therefore the platform uses end-to-end encryption to secure all your chats and messages. However, in disputes, the platform can decrypt the messages and use them as evidence.
  • Community voting – The platform engages its community of users in voting for the next most viable cryptocurrency or having users suggest new features.
  • Bitcoin, Litecoin, and Ethereum – The platform, which started as a P2P marketplace for Ethereum, now supports Bitcoin and Litecoin.
  • Customer support – The platform has responsive customer support that responds to queries on a 24/7 basis. Customers can reach the team through email, a contact form, or community channels on Telegram or Twitter.
Pros
  • Privacy standards are high

  • Non-custodial

  • Fiat-crypto trades

  • Cash trading option

Cons
  • Offers support for only three cryptocurrencies

  • No Mobile platform

  • Beware of Paypal Chargeback scammers


What Are The Risks Of Using Coinbase?

One of the most significant risks of using Coinbase is that your account could be hacked. While Coinbase has implemented multiple layers of security, including 2-factor authentication, there have been instances of people having their accounts hacked. If your account is hacked, you could lose all of the funds in your account.

Using Coinbase has several drawbacks, including that they might not be able to complete all of your transactions during periods of increased market volatility. Because Coinbase uses a “maker-taker” approach, which means it will take part of your order as a “fee” for matching you with someone who wants to buy or sell the same amount of cryptocurrency, this is likely.

Coinbase's customer support, on the other hand, has been criticized for being slow and unhelpful.  It is especially aggravating if you have an issue with your account and want assistance from customer service.


What to put into Consideration of Coinbase and Other Alternatives?

There are a few things to consider when looking for a Coinbase alternative. Whether or not the website is reliable and trustworthy. There have been some complaints about Coinbase in the past, so it's important to ensure that the website you're using is reputable.

Fees. Some of the other Coinbase alternatives charge fees, so it's essential to compare them before choosing an alternative.

Customer service. If you have any problems with the website, it's essential to ensure that the customer service is good.

Security. Some of the other Coinbase alternatives don't have as much protection as Coinbase, so it's essential to ensure that the website you're using is secure.

The user interface. Some of the other Coinbase alternatives have a lot of features, but they're not always easy to use.

The website is user-friendly. If you're not comfortable using the website, finding an alternative that's easier to use is important.

The website has a good reputation. Some websites have been known to be scams, so it's essential to ensure that the website you're using is well-known and trusted.

These are just a few things to consider when looking for a Coinbase alternative. There are many other things to consider, but these are some of the most important. If you take the time to consider these things, you'll be able to find an alternative that's right for you.