Blog Crypto Top 4 Best Coinbase Alternatives for 2021

Top 4 Best Coinbase Alternatives for 2021

date October 22, 2021 time 5 min read 1057 views

Millions of new users enter the cryptocurrency market every year as a result of its growing mainstream adoption. As you start building your portfolio, you’ll need a place to store your cryptocurrency. With hundreds of different cryptocurrency exchanges in the market today, let’s explore some of the best Coinbase alternatives.

Coinbase and why alternatives are needed

Coinbase is one of the best known and often recommended exchanges for users getting started with crypto investment strategy. This is because of its intuitive, easy-to-understand user interface and buying options. 

Crypto exchanges are a vital part of the crypto ecosystem.
Crypto exchanges are a vital part of the crypto ecosystem. (Source: Pixabay)

However, Coinbase is not without its drawbacks. These are a few reasons investors often look toward the best Coinbase alternatives:

  • High fees: Coinbase charges a flat fee, ranging from $0.99 to $2.99 if the transaction value is less than $200. You’ll pay a fee worth 1.49% for transactions above $200.
  • Limited currencies: You can only buy a few of the most popular cryptocurrencies on Coinbase, significantly limiting your options as an investor.

With these drawbacks in mind, these are a few things to consider when looking for the best Coinbase alternatives.

Factors to consider when evaluating Coinbase alternatives

With so many platforms to choose from, you need to consider these factors carefully before choosing a cryptocurrency exchange.

Security and reputation

Security is the most crucial factor to consider because your wallet is stored in the cryptocurrency exchange. If the exchange is hacked, your money is gone. There have been a few cryptocurrency hacks in the past that shattered the hearts of cryptocurrency investors. While security measures have tightened over the years, you can permanently lose your funds by using the wrong exchange.

Find out if the exchange has been hacked in the past, how much emphasis they place on security, and what the crypto community is saying about them.

Fees

Fees can take a bite out of your profit when you trade. How do the fees compare? Consider and account for all possible fees imposed by the exchange, such as deposit, withdrawal, trading, and other exchange fees. Reputable cryptocurrency exchanges will ensure their fees are transparent and easily understandable.

Cryptocurrencies and countries supported

The currencies you’re primarily interested in will play a significant role in which exchange you end up choosing. There’s a wide range of cryptocurrency options to choose from. But most exchanges don’t offer them all. Once you’ve decided which coins you’re interested in, whether bitcoin, litecoin vs ethereum, or the many altcoins, choose a platform that supports them. Also, check if you can use the exchange based on your location.

Customer service and support

Quality customer service and support is a valuable perk offered by the best cryptocurrency exchanges. Read customer reviews to know the experience of other users with the support available. Check the exchange’s blog to see if they provide resources, like blog posts and webinars, to help you access the correct information at the right time.

  • User Experience

There are no one-size-fits-all metrics for the perfect user interface for every investor. A good cryptocurrency exchange should, however, be intuitive and easy to use for everyone. Review the exchange you’re interested in to ensure its user interface and features are more suited to your experience level and knowledge before committing to it. 

Considering these factors beforehand will help you identify the right cryptocurrency exchange for you and how to invest in cryptocurrency the right way.

4 Best Coinbase Alternatives

These are some of the best Coinbase alternatives for you to consider in no particular order.

Coinbase Pro

It might seem a bit strange to start with Coinbase, but its Pro version can be a good alternative.
It might seem a bit strange to start with Coinbase, but its Pro version can be a good alternative. (Source: Coinbase)

Coinbase Pro is an advanced version of Coinbase. It’s made with more experienced traders seeking a more robust trading system in mind. The fees are much lower and more straightforward. However, It can take three to five days for funds to clear and move currencies to an exterior wallet.

Fees

The fees start at 0.50% and decrease for higher-volume traders.

Pros

  • Competitive fees
  • Flexible payment options
  • Suite of high-quality features and analytical tools

Cons 

  • Offers fewer altcoins
  • Delayed fund clearance
  • Slower customer service

Coinbase Pro is perfect for more experienced traders who no longer consider themselves beginners. It offers expert-level features like placing market, limit, and stop orders.

Kraken

With low fees, Kraken is an attractive alternative for investors and traders.
With low fees, Kraken is an attractive alternative for investors and traders. (Source: Kraken)

Kraken is one of the best Coinbase alternatives around. It’s a technically extensive exchange with good mobile trading features, and it has stood the test of time – operating since 2011.

Fees

The fees start at 0.16% for market makers and 0.26% for market takers. It decreases for higher-volume traders.

Pros

  • Lower fees
  • Perfect security record
  • Strong mobile trading app
  • 200+ countries supported
  • Extensive range of cryptocurrencies

Cons 

  • Poor customer support
  • Complicated fee structure
  • Limited payment options
  • No control over crypto wallet keys

Kraken is best for traders seeking lower fees and an extensive range of cryptocurrency options.

Gemini

Gemini is geared towards institutional investors and is seen as a leading Coinbase alternative.
Gemini is geared towards institutional investors and is seen as a leading Coinbase alternative. (Source: Gemini)

Gemini is a trusted exchange of many institutional investors and hedge fund managers who want strong security and an easy-to-use trading platform.

Fees

Gemini charges a 0.50% trading fee and a fixed transaction fee of up to $2.99, depending on the transaction size. The fee is further dependent on the fee schedule, payment method, and cryptocurrency being withdrawn.

Pros

  • Fully regulated
  • Good security measures
  • 0% fees for high volume traders

Cons 

  • High fees
  • Limited countries supported
  • Limited cryptocurrencies supported

Gemini is best for investors at larger institutions headquartered in the United States.

Binance

Binance has come under fire recently, but it retains its status as one of the major crypto exchanges.
Binance has come under fire recently, but it retains its status as one of the major crypto exchanges. (Source: Binance)

Overview

Binance is one of the world’s largest cryptocurrency exchanges. It provides a wide range of trading tools. OTC markets, P2P trading, derivatives, staking, savings, crypto lending, and more. The exchange’s native BNB token is a top-10 cryptocurrency. 

Fees

Binance charges a 0.1% trading fee for both makers and takers and tapering down with higher trading volumes. Traders who use the Binance native BNB token to pay get reduced trading fees.

Pros

  • 500+ cryptocurrencies supported
  • Lower fees and high liquidity
  • Robust education and resources for beginners
  • Solid reputation and security

Cons 

  • A bit complex for beginners
  • No phone support
  • Shaky reputation after the previous hack
  • Binance is not available to US residents, and Binance.US is still less liquid

Binance is best for investors looking for a wide variety of cryptocurrencies to choose from and low trading fees.

While Coinbase is still a leading cryptocurrency exchange, these best Coinbase alternatives are worth considering. Doing your research will help you identify the exchange that is right for your trading and investing needs.

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