Although the popularity of cryptocurrencies has skyrocketed in recent years, only a minority of Americans actually trade them. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and Cardano, each of which has seen a lot of movement as their prices rise and fall. What is the appeal for traders? The potential to make large profits from the volatility of these highly speculative assets.
There are more and more ways for traders to access cryptocurrencies. In response to widespread interest in cryptocurrencies, new exchanges and trading platforms have started. In fact, you may already have an app installed on your phone that allows you to trade. For example, if you have a PayPal or Venmo app, you can buy and sell at least a few different cryptocurrency coins. However, other apps and exchanges can give you access to a wider selection of literally thousands of cryptocurrencies or offer other benefits such as lower costs.
Below are some of the top apps and exchanges for cryptocurrency trading and some of the important things you need to know.
Top apps and exchanges for crypto trading in March 2024
The platforms below include specialized cryptocurrency exchanges, online brokers, cash and payment apps. The price and number of coins that can be traded are also listed, so you can understand the range of each app and exchange.
If you are only interested in trading Bitcoin, the largest cryptocurrency, it may not make sense to use an app that offers dozens of other coins. On the other hand, if you want to trade what's hot right now, consider an app or exchange with more variety.
Binance.US
Binance.US is the US division of the large Binance organization and is one of the best crypto exchanges due to its low transaction costs. Bitcoin traders can access trading without fees, while prices for other coins are set on a sliding scale for large traders. Additionally, you will receive a 5% discount when you use Binance's in-house coin, BNB, to pay for transaction fees.
You can also trade over 150 different cryptocurrencies on Binance, so you should have no trouble finding what you're looking for, especially if you just want to trade the most popular coins.
In June 2023, the SEC charged Binance with illegally operating as an exchange, broker-dealer, and clearing house, and offering and selling unregistered securities. The lawsuit also accuses Binance and founder Zhao Changpeng of misusing customer funds. SEC Chairman Gary Gensler warned against using the Binance platform, but Binance said its customers' assets are safe.
In November 2023, Binance and Chao agreed to plead guilty to separate federal charges and pay a $4.3 billion fine. Mr. Zhao also agreed to step down as CEO of Binance. The SEC lawsuit is ongoing.
- Fee: Bitcoin is free, but fees for less popular coins start at 0.57% and go down for larger traders. If you pay your trading fees with BNB, you will receive a 5% discount.
- Coins that can be traded: 150+ coins including Bitcoin, Ethereum, Solana, Cardano and more
coinbase
Coinbase is a specialized cryptocurrency exchange that allows you to trade hundreds of digital currencies at the latest count. This range includes most of the top coins, including Bitcoin, of course, so it may scratch your cryptocurrency itch. But how much does it cost to use the basic service? Unfortunately, Coinbase has become cautious about how much it pays for transactions and has recently made its fee structure vague on its website.
Back in the days of visibility, pricing structures were complicated to say the least. You will pay a spread markup of approximately 0.5% and a trading fee depending on the trade size and funding source. For Coinbase Advanced Trade, fees start at 0.6 percent for 30-day volumes of less than $10,000, drop to 0.15 percent for volumes up to $100,000, and lower thereafter.
In June 2023, the SEC charged Coinbase with illegally operating as an exchange, broker-dealer, and clearing house, offering and selling unregistered securities. The complaint alleges that Coinbase knowingly violated securities laws designed to protect investors. Coinbase said it will continue business as usual.
- Fee: Usually at least 1.99% (lower with Coinbase Advanced Trade)
- Coins that can be traded: Hundreds more including Bitcoin, Ethereum, Cardano, and Solana
Etro
Broker eToro has always been all about cryptocurrencies (at least for American traders, although others can trade stocks). eToro gives you access to around 25 cryptocurrencies, including Tezos, Uniswap, Polygon, and quite a few that you wouldn't normally find in traditional brokerage apps. This app does not charge a direct commission, but instead charges a 1% flat spread markup, regardless of the coin or amount you purchase.
- Fee: No fees, but 1% spread markup
- Coins that can be traded: 25 cryptocurrencies including Bitcoin, Ethereum, Dogecoin, and more
kraken
Kraken is another specialized cryptocurrency exchange that offers a large variety of coins, including not only the most popular coins, but also some coins that are not usually available in regular financial apps (Solana, Uniswap, Cardano, etc.) You can trade. In total, this exchange supports trading in over 230 cryptocurrencies. Kraken does not serve residents of New York or Washington.
Kraken Pro's fees are competitive, ranging from 0.16% to 0.26% at the lowest trading volume levels, but drop to the 0% to 0.1% range when trading volume is $10 million or more in the last 30 days. Wealthy traders also have access to margin trading, increasing their purchasing power (and risk). He can deposit to Kraken for free via ACH, but debit or credit card transactions charge him a 3.75 percent fee and 25 cents. Additionally, if you deposit funds through your bank, there may be a 0.5 percent online banking processing fee on your final check.
In November 2023, the SEC charged Kraken with illegally operating an unregistered securities exchange, broker, dealer, or clearinghouse. The SEC alleges that Kraken's business practices, including commingling customer funds with its own funds, pose significant risks to its customers. Kraken disputes this claim and is fighting it in court.
- Fee: Fees start at 0.26%, plus card and online banking fees
- Coins that can be traded: 236 of them (including Bitcoin, Ethereum, Solana, Uniswap)
robin hood
Robinhood may be known for its sophisticated trading app for stocks, options, and ETFs, but it's also expanded into cryptocurrencies. Moreover, it brings a commission-free structure to the crypto world. Although trading may seem free, Robinhood charges spread markups rather than direct commissions. That is, the cost is built into the buying and selling price of the coin. Robinhood's instant transfer feature lets you get started almost immediately, so you can download it and use it right away.
- Fee: $0 or commission free, but there is a spread markup
- Coins that can be traded: 15 of them (some not available in all states), including Bitcoin, Dogecoin, and Ethereum
webullpay
Webull may not be the best trading app, but its feature set feels a step above Robinhood. Like its well-known rivals, Webull offers stocks, options, ETFs, and cryptocurrencies with no out-of-pocket fees. Similarly, Webull works on spread markups for crypto trading, with costs built into the trade. Webull has moved its cryptocurrency trading to a separate app called Webull Pay, which offers trading in basic coins.
- Fee: There are no fees, but the spread increase is 1% (100 basis points).
- Coins that can be traded: 8 types including Bitcoin, Ethereum, Shiba Inu, etc.
cash app
When you think of cryptocurrencies, Cash App may not be the first thing that comes to mind. This financial app is well-known for its cash management accounts and even the ability to trade stocks and ETFs. However, it also offers the ability to trade cryptocurrencies. However, that's only Bitcoin. While you can send Bitcoin to other users for free, Cash App charges a so-called “minor fee” for coin transactions, which will be disclosed before the transaction is made. This is in addition to the spread markup built into the trade itself. Unfortunately, the exact fee structure has not been disclosed.
- Fee: Spread markup and trading fees
- Coins that can be traded: Bitcoin only
PayPal
Similar to Cash App, you may already have PayPal installed on your phone, and if so, you could be able to start trading cryptocurrencies literally within seconds from now. PayPal charges a fee on every trade and also charges a spread mark-up price for the trade. Fees start at 49 cents for transactions under $5 and gradually increase to 2.49 cents for transactions up to $200. It then switches to a percentage that drops to 1.5% for transactions over $1,000. Thankfully, PayPal clearly lists their fee structure for everyone to see. PayPal's sister app Venmo also offers the same service under similar terms.
- Fee: Spread increases of approximately 0.5% and trading fees starting at 49 cents and decreasing to 1.5%
- Coins that can be traded: 4 different cryptos – Bitcoin, Ethereum, Litecoin, Bitcoin Cash
conclusion
The best cryptocurrency trading app or exchange for you will depend on your needs. If you want to trade a wide range of digital currencies, consider apps and exchanges that allow you to do so. However, if you want to stick primarily to Bitcoin, Ethereum, or a few other major platforms, many of the platforms mentioned here will do the trick. However, cost is also an important consideration, so keep that in mind before opening an account.
Editorial Disclaimer: All investors are encouraged to conduct their own independent research on any investment strategy before making any investment decisions. Additionally, investors should note that past performance of an investment product does not guarantee future price appreciation.
