TLDR: If you’re in a hurry the Binance is the Best Crypto Exchange According To Reddit! While Gemini and Kraken are the best fiat to crypto exchanges.
In recent years there has been a growing demand for cryptocurrencies, especially Bitcoins due to its finite supply and absence of geographical limitations. This digital payment system has demonstrated its value, therefore, increasing the future possibilities of disrupting the traditional payments system completely. Some countries are going as far as adopting Bitcoin as their currency to make international transactions easier. Crypto currencies like Bitcoin in particular, are being brought into the mainstream which is in turn driving the crypto revolution.
If you are someone who is thinking of buying crypto currency and wondering where you should buy it from then crypto exchanges are a good solution. There are other platforms like traditional brokers who could help you buy or sell cryptocurrency but they offer fewer crypto features. Crypto exchanges on the other hand offer a variety of features like cryptocurrencies, wallet storage, security features, educational resources and much more. This makes your job a lot easier.
However, with the overly abundant crypto exchange options out there, it becomes difficult to choose the right crypto exchange. We are going to help you out with this by first breaking down the essential features of a good crypto exchange platform followed by some top recommendations by Redditors. Subreddits dedicated to cryptocurrencies and Bitcoin on Reddit have very reliable recommendations as these are posted by users who have tried the exchanges. These recommendations from Reddit will make it easier to separate the most reputable crypto exchanges from the not so good ones.
What are Crypto Exchanges?
These are web-services that provide people a platform to exchange their cash money into cryptocurrency and vice versa. Majority of the crypto exchanges focus on helping you exchange one type of cryptocurrency, for example Bitcoin for another kind of cryptocurrency like Ethereum etc.
What are the different types of Crypto Exchanges?
At the moment there are mainly three types of crypto exchanges:
- Centralized (CEX) Cryptocurrency Exchanges: This type of exchange is comparable to a traditional stock exchange where the buyers and sellers come together with the exchange playing as a middle-man. With a CEX you would have to trust somebody else to handle your money. This makes it vulnerable to hacks.
- Decentralized (DEX) Cryptocurrency Exchanges: This exchange doesn’t rely on any middlemen to hold funds, therefore staying true to the original idea of cryptocurrencies. These are not as popular due to low liquidity.
- Hybrids Cryptocurrency Exchanges: These merge the benefits of both centralized and decentralized exchanges making it the next generation trading marketplace. They provide the liquidity of CEX and the security and privacy of DEX.
What to Look For When Choosing a Crypto Exchange?
- Security Measures and Hacks: Hacking of crypto exchanges is a real threat due to the high volumes of trading that take place on it amounting up to billions of dollars. Threats from cybercriminals cannot be ignored and that is why it becomes really important that the exchange you choose possesses very strong and reliable security features such as two-factor authentication. This will ensure that you are never locked out from your entire investments.
- Regulatory Compliance: In the United States the cryptocurrency exchanges are regulated by Commodity Futures Trading Commission and subject to FinCEN regulation. These regulations are for the safety and protection of the interests of the consumer which is why it is vital that the crypto exchange you choose is compliant with the government regulations. You need to ensure that the exchange is legally allowed to operate within your jurisdiction.
- Transparency and pricing: It is important that you choose a platform which has transparent fees and services and is not involved in anything illegal or unethical. You must make sure you understand the exchange’s fee structure. Exchanges could have a fixed fee or a percentage. This may also vary depending on the type of currency that you trade. A high pricing is justified only if you are getting good security and insurance.
- KYC Protocols: KYC which means “Know Your Customer” tries to seek the identity of individuals and corporate entities that do business on the exchange platform. KYC minimizes chances of fraud and maintains transparency of transactions. It keeps your data safe. It is possible that some platforms that don’t have KYC protocols in place are involved in money laundering and other illegal practices. Therefore, to keep your transactions legal, choose an exchange platform that has KYC protocols.
- Quality Customer Service: It is important to have customer service that is available round the clock to help you out with any issues you are facing with the platform. The customer support needs to be responsive and knowledgeable about the issues that you have a query about so that you don’t waste a lot of time waiting for a response.
- Wallet: A good wallet is integrated with multi-wallet functionality to support a variety of transactions. If the wallet is integrated with leading banks and payment gateways it gets easier to buy and sell cryptocurrency in real time. Ensure that there is user verification to withdraw desired amounts. There are two types of wallets- Hot wallets and Cold wallets. Hot wallets are connected to the internet which makes them less secure while cold wallets store crypto tokens in offline mode and therefore have improved security.
- Analytical features: A crypto exchange with analytics is a good choice for advanced crypto traders as it allows the traders to understand the market decision and design strategies accordingly.
- Liquidity: Liquidity is an important aspect if you want to initiate and close trades on the platform on demand. Exchanges that are famous and have high volumes of trade tend to be more liquid and provide the best price for every trade.
- Informative: If you are a beginner and have limited knowledge about crypto then it would make sense for you to look for a platform that has tools to educate you about crypto and coins. Such platforms simplify complicated concepts and bolster your knowledge.
- Range of coins: There are a number of alternate cryptocurrencies apart from Bitcoin or Ethereum. If you want to diversify your portfolio then look for a platform that offers a diverse range of coins.
Every exchange has different standards and works differently. Therefore, based on your needs you can select the platform that works best for you. We have researched some of the best exchange platforms on Reddit for you and listed them down below.
Best Crypto Exchange Reddit
1. Binance – Best Crypto to Crypto Exchange 2023
This is probably the most recommended crypto exchange by Redditors. The Binance crypto exchange platform has some of the most competitive fees. This platform allows for credit card and wire transfer purchases of cryptocurrencies. It does this by partnering up with third party companies. While Binance is serviceable to the rest of the world Binance US is more compliant with US trade regulations. It also allows users to exchange fiat for Bitcoin or other coins. If you want the cheapest and easiest way to trade cryptocurrencies then this is an excellent exchange.
What Redditors have to say about it:
u/darkjaffs: “ I have tried a lot of exchanges but Binance is the only one I have ever stuck with and I haven’t seen it go down either”
u/Nuewim: “I use Binance for very long time and never had any problems with it. So for me it is very good exchange.”
u/Own-Tumbleweed6337: “ I’ve used many exchanges and binance us is the only that I’ve never had issues with.”
- Many Services provided: Binance has various ways which you can use to buy crypto. Some of these are wire transfers, peer-to-peer trading, debit and credit card buying. It also provides services like spot trading, margin trading, Binance futures and derivatives, Binance financing, crypto loans etc. The deposits are free and withdrawal fees apply which are fair and are updated regularly.
- Trading and Transaction fee: It has very low fees of just 0.1%. But these rates reduce as your trading volume increases. The lowest rate you can find is 0.02%. You also get an additional discount of 25% if you hold the native Binance token BNB.
- Number of cryptocurrencies: It has upto 500 coins that can be traded. Some popular coins are Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Chainlink, Binance Coin, Binance USD, etc.
- Customer Support: It has an automated bot to help you with any queries that you may have. It also has the option to submit a request to chat with the customer support.
- Security: Binance uses two factor authentication to keep your account safe and provide the necessary protection. It also has an emergency fund to cover any losses due to hacks.
2. Gemini – Great Fiat To Crypto Exchange
A favorite of Redditors, Gemini crypto exchange is a New York based company and has industry leading security features. It is an excellent choice for those who may be beginners or experienced. It is very user-friendly and gives real time status updates regarding any downtime or maintenance if scheduled. It has a very comprehensive support center as well. What makes it the best is its focus and dedication to security and compliance. It is the first SOC 2 certified crypto exchange. SOC 2 assesses a product or company’s level of security and compliance.
What Redditors have to say about it:
u/mrowe994: “I also really like Gemini and I’ve tried most of them. User friendly. Backed by the Winklevoss twins, New York regulated, crypto insured up to 200k. Lower fees. I definitely think Gemini is the way to go”
u/Brettanomyces78: “I like security, low fees, and at least a basic set of common order types. For my fiat onramp, Gemini Active Trader is my preference.”
u/sn0wballa: “For larger limit orders, Gemini wins hands down.
- Trading and Transaction fee: The fees for trading depends on your trading volume and which platform you are using, that is the mobile app or desktop site. The mobile app and desktop site have their own fee structure. For trades that are greater than $50 the fee could go up to $2.99 and for trades more than $200 the fee is 1.49%.
- Number of cryptocurrencies: Gemini offers fewer crypto currencies compared to other crypto exchanges. They provide around 100 cryptocurrencies. Some of the popular cryptocurrencies are Bitcoin, Ethereum, Dogecoin, Gemini Dollar, Solana, Cardano, USD Coin, Terra, Uniswap, etc.
- Wallet and security: It has the leading security features in the industry like two factor authentication, wallet address white listing, KYC verification, and approved devices for log in. It also offers FDIC insurance for up to $250,000 deposits and digital asset insurance funds as well.
- Customer Support: It has an FAQ section to answer any commonly asked questions. It has a virtual chatbot. It also has customer support if required. However, it doesn’t have phone support.
- Gemini Earn: This feature allows you to earn interest for crypto holdings by lending them to institutional investors with an annual percentage yield of up to 8.05%
3. Coinbase – Most Popular Crypto Exchange
Being the world’s largest cryptocurrency exchange platform, this exchange is considered very reliable by Redditors. It has very secure storage, best industry practices and is very easy to join. There are a lot of factors that affect the fee structure like your country/region, payment method and product. As Coinbase allows you to trade the most popular cryptocurrencies it’s the perfect exchange platform for most purposes.
What Redditors have to say about it:
u/hunter1212: “coinbase is good its U..S. based. they will fight for your privacy!”
u/liekao: “the best bitcoin exchange site has to be coinbase. They’re really good for beginners as things are simple and its not you have to trade bitcoin to buy a couple as a long term investment plan.”
u/Akahura: “Most of the time I use Coinbase because of the trust.”
- Trading and Transaction fee: The transaction fee is usually between 0.5% to 4.5% depending on the payment method, cryptocurrency type, transaction size and platform. There may be other fees as well such as fees to cover the cost of transactions on external blockchain networks that support cryptocurrencies. The fee structure can also vary depending on the market fluctuations.
- Number of cryptocurrencies: Coinbase supports more than 150 cryptocurrencies on its platform. Some popular ones are Bitcoin, Ethereum, Cardano, Solana, Dogecoin, Chainlink, Litecoin, Tether, Bitcoin Cash, etc.
- Wallet and security: The digital currency that Coinbase holds online is insured. Most of the customer funds are held offline in cold storage. The insurance policy covers all customer funds lost in case of an online breach. Balances are usually held in US custodial accounts, money market funds or US Treasury. However you can keep digital assets in your own custody. A Coinbase wallet is provided for easy movement of money out of possession of the company.
- Customer Support: They have round the clock live phone support. There are also options to reach out through mail or chat.
- Informative: Coinbase has an excellent library with a ton of educational content. It has Coinbase Earn which allows you to earn while you learn. In this you get to watch video classes, give tests and earn cryptocurrencies that you are learning about.
4. Crypto.com – Great International Fiat To Crypto Exchange
Crypto.com has very reasonable fees and discounts especially for those who hold a significant amount of stake in Crypto.com Coin. It also supports trading, NFTs, staking, wallets, etc. It has various crypto related products. This exchange helps you do more with your cryptocurrencies than just buy and hold.
What Redditors have to say about it:
u/TalkCryptoToMeBaby: “Crypto.com — no trading fees 1st month, good place to buy VET, credit card buy option, staking options, ACH fiat on-ramp, credit card with BTC rewards, mobile only in the US”
u/Generouslyidiotic: “CDC is literally 11/10 an amazing company and utility. ;)”
u/roox911: “been using it for around 18 months. No issues with the e-transfer, no issues with the credit card, very few issues with the app/exchange. It’s my primary crypto platform and the only one i use for fiat onramp. I also use their earn product and have been very happy with it.”
- Transaction fees: The trading fees is 0.4% for monthly trading volumes less than $25,000.Higher trade volumes are subject to a fee as low as 0.04% . If you hold at least 5,000 Crypto.com Coins you get discounted trading fees.
- Security: It has security features like multi factor authentication and white listing. It has compliance monitoring as well. Customer deposits are stored offline to prevent any hacks. It also provides FDIC insurance for up to $250,000 balances.
- Customer Service: They have email, live chat and a help page for customer support. There is however, no phone support. Email support has a relatively slow response.
- Number of cryptocurrencies: It offers more than 250 cryptocurrencies. Some popular cryptocurrencies are Bitcoin, Ethereum, Cardano, Dogecoin, Polkadot, etc.
- Digital wallet options: It allows users to connect to various digital wallets. It has a DeFi Wallet as well which allows you to earn rewards.
Kraken has low trading fees compared to most major crypto exchanges. It is suitable for both beginners and experienced traders. It has staking and margin offerings and offers a number of coins that experienced traders can utilize. The fee reduces with increase in trading volume. Kraken checks all the boxes for a reliable and secure exchange platform.
What Redditors have to say about it:
u/TalkCryptoToMeBaby: “I like them the most. NEVER hacked — been in the game since 2011 — staking options available DOT KSM ETH + more, participate in DOT/KSM parachain auctions, low-margin trading available, derivatives trading for non-US, Europeans have a free fiat on-ramp US does not, low trading/withdrawal fees, great charts”
u/Dux0r: “I’ve used all of the big 3 and Krakens main advantage has always been the human support for me- they answer faster than the other two and give you a response that doesn’t just feel like it was copy pasted or automated.”
u/kenkenshi: “Kraken is the crème de la crème of exchanges!”
- Trading and Transaction fee: The pricing depends on the trade that you are entering. Instant purchases are subject to a fee of 1.5% for almost all cryptocurrencies and 0.9% for stablecoins.
- Security: It has two factor authentication and you can create two factor codes for sign-in, account withdrawals, trades. You can also lock your account to prevent any breaches. It offers safe coin storage and holds 95 % of deposits offline.
- Customer Service: Kraken has 24/7 dedicated specialists to support you with any issues. They have a live chat
- Number of cryptocurrencies: It offers a range of coins. Some of these are Aave, Bitcoin, Cosmos, Ethereum, Kava, Filecoin, Litecoin, Polkadot, Polygon, Ripple, Shiba Inu, Solana, Tether, etc.
- Advanced features: It has other investing options like margin trading. You can also stake select coins like Ethereum, Cardano, Solana, etc. It also offers futures trading.
The aim of this article was to evaluate and rank various crypto exchange platforms without any bias to help you select the best exchange. We hope the above information has helped you make a safe and informed decision. But know that investing in cryptocurrencies can be very risky and speculative. So it becomes important to consult qualified professionals before making any decisions.