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Best Cryptocurrency Exchanges of January 2022

Best Cryptocurrency Exchanges of January 2022
Written by publishing team

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Cryptocurrency exchanges are a dime a dozen, but there are only a few that we think make sense for long-term crypto investors.

The volatile and speculative nature of investing in cryptocurrencies presents risks to investors regardless of how and where they buy them. We believe that the safety of your investment should be a top priority when choosing a cryptocurrency exchange, and each of our preferred exchanges clearly details the security measures in place to protect consumers. In general, we believe that cryptocurrency exchanges that have been around for a long time are usually a safer bet than newer exchanges.

“I would have gone with any of the old guards,” says Theresa Morrison, CFP with Beckett Collective. “Those who have been doing this for a long time, this is where I go first.”

No matter where you buy it, it is important to remember that cryptocurrency is a highly speculative asset with a relatively short track record (at least compared to the stock market). That’s why experts say you should never invest more than 5% of your portfolio in cryptocurrencies, and why they say it’s smart for investors to stick with Bitcoin and Ethereum, which are available on each of the exchanges we recommend.

So for the long-term investor who is more interested in saving for retirement than getting rich quick, here are our picks for the best cryptocurrency exchanges:

BEFORE YOU INVEST IN CRYPTO

Experts say it is smart to keep your crypto investment under 5% of your total portfolio. Cryptocurrency prices fluctuate wildly every day, and experts also say it’s smart not to invest more than you would lose if the market stopped completely. Cryptocurrency investments should never get in the way of other financial priorities such as saving for emergencies, paying off high-interest debt, and saving for retirement using more traditional investment strategies.

Best Cryptocurrency Exchanges of 2022

  • Good for Beginners: Coinbase
  • Good for seasoned investors: Gemini
  • Good for practicing cryptocurrency trading: eToro

Queen Piece

Photo attached to Coinbase review of cryptocurrency exchange
Illustration / Next Adviser

Abstract

Coinbase was the first cryptocurrency exchange to go public on the Nasdaq in 2021, but has been around since 2012. The crypto exchange offers over 50 cryptocurrencies and a free wallet service with private key access.

Why do we love it

Coinbase’s simple interface is easy to use and understand for beginners, but there is also the option to upgrade to a more advanced version, Coinbase Pro, if you want additional crypto trading features.

Coinbase shares its security measures openly, and keeps the majority of users’ encryption in a secure and offline storage to protect it from the risk of hacking and digital theft. Additionally, any cash you keep on Coinbase is FDIC insured up to $250,000. We also like the educational platform Coinbase, which helps educate investors about cryptocurrency.

Outlay

Coinbase’s fee structure puts it last compared to other exchanges, but we like the ease of use of the platform and its upfront security measures, especially for beginners. When you make a transaction, you will be charged for both the spreads and Coinbase fees.

The spread fee is the difference between your crypto costs and what you would pay to buy it (or receive it for sale). The spread accounts for about 0.5% of all cryptocurrency purchases and sales, but it can depend more on the cryptocurrencies you are trading.

Coinbase fees vary in addition to your spread fees based on your location, payment method, and other factors. However, crypto-to-crypto transactions (such as trading Bitcoin for Ethereum) are not subject to Coinbase fees. You will also incur different fees for things like using certain methods to fund your Coinbase wallet or to withdraw your investment.

protection

Cryptocurrency is not protected by any federal regulations, unlike investments that are insured by the FDIC. But Coinbase is transparent about its security measures and says it stores 98% of customers’ cryptocurrencies in offline cold storage. The remaining 2% is used to facilitate trading.

Although your investments are not insured by the FDIC, Coinbase itself has an insurance policy to protect crypto holdings. However, there is no guarantee that your entire coins or money will be returned to you in the event of a hack. While your coins are not protected by the government, any cash you keep in your wallet is FDIC insured up to $250,000.

Read our full review: Coinbase 2022 Review: Great for crypto beginners and long-term investors

Twins

Illustration / Next Adviser

Abstract

Gemini was launched in 2015, useful for both novice investors and active traders. Gemini offers more than 40 cryptocurrencies and a range of products that can add value to seasoned investors.

Why do we love it

Gemini is very open about its security measures and keeps the majority of your cryptocurrency in an offline cold storage system. Gemini offers tools and upgrade features that can be useful to more advanced traders, but it also has a simpler interface to help beginners get their grounding.

In addition, people with greater knowledge of cryptocurrencies can find value in Gemini’s suite of additional products: Gemini Earn, Cryptopedia (education center), Gemini Wallet, Gemini Custody, ActiveTrader and Gemini Pay.

Outlay

You will be charged a convenience and transaction fee when you buy or sell cryptocurrency on Gemini. The total fee will be displayed as the ‘Displayed Price’ before completing the transaction.

The convenience fee is usually around 0.5% of the Gemini market price for a particular transaction, although it may vary, and is charged with the cryptocurrency you buy. The transaction fee depends on the amount you are trading. A standard transaction fee of 1.49% is charged on cryptocurrency trades – such as Bitcoin to Ethereum. For buying and selling, transaction fees vary depending on the type of cryptocurrency.

protection

Gemini says it keeps most of your cryptocurrency in a cold offline storage system, but a small portion is kept online in a hot wallet that is secured against theft from a security breach, hack, fraudulent transfer, or employee theft.

Read our full review: Gemini Review 2022: Easy for Beginners, Plus More Options for Experienced Investors

eToro

Picture attached to the eToro review
Illustration / Next Adviser

Abstract

eToro was opened to US investors as a cryptocurrency exchange in 2018. Cryptocurrency trading on the platform is limited to 43 states, with Delaware, Hawaii, Minnesota, Nevada, New Hampshire, New York, and Tennessee excluded from participating. This is the only platform that we recommend not being available in all 50 states, but we think it has features that make it interesting for people in the states where it’s available. eToro offers a simple interface and more than 20 cryptocurrencies to choose from.

Why do we love it

eToro offers fewer coins than other exchanges – just over 20 – but experts recommend sticking with the two most popular currencies anyway, Bitcoin and Ethereum, which are available on the platform.

eToro offers a unique feature: the eToro Virtual Portfolio, which allows you to practice investing up to $100,000 in cryptocurrency and track its progress. This tool can help users get a sense of the volatility of the cryptocurrency.

Outlay

The fees you pay on eToro depend solely on the spread (the difference between what you sell the cryptocurrency and what you pay for it). The spread can fluctuate depending on the cryptocurrency you choose and the current market prices.

protection

eToro has a combination of hot and cold storage to protect your assets, and any US dollars in your account are held in FDIC-secured custodian accounts.

Read our full review: eToro 2022 Review: Cryptocurrency Trading Practice, Plus New Social Features

Best Cryptocurrency Exchanges of 2022

Queen Piece Twins eToro
Coins More than 50 cryptocurrencies More than 40 cryptocurrencies More than 20 cryptocurrencies
Outlay • 0.50% points difference
• Trading fees between 1.49% and 3.99% (or $0.99 to $2.99 ​​flat fee)
• 0.50% Convenience Fee
• From $0.99 to $2.99 ​​Transaction fees
• 1.49% transaction fee for deals over $200
• 0.75%-4.9% spread (varies by cryptocurrency)
wallet storage Keep coins in your Coinbase account or Coinbase Wallet option or transfer them to your own wallet Keep coins in your Gemini account or Gemini Wallet option or transfer to your own wallet Keep coins in your eToro trading platform account, transfer them to your eToro wallet, or transfer them to your own wallet
Minimum Trade 2 dollars Equal to the smallest amount of each currency that can be traded (0.00001 BTC) $25 ($50 minimum deposit)

What is cryptocurrency exchange?

Cryptocurrency exchange is a platform where you can buy and sell cryptocurrency. You can trade one currency for another, such as Bitcoin for Ethereum, or you can buy cryptocurrency using a regular currency such as the US dollar.

These platforms facilitate cryptocurrency purchases, allow you to convert cryptocurrencies back into dollars, and convert them outside of the exchange. Different exchanges come with different features, which may push you towards choosing one exchange over another.

How to choose a cryptocurrency exchange

There are a few different factors to consider when looking for a cryptocurrency exchange. Here are a few things we recommend you consider before choosing one:

  • Accessibility: Not all countries or countries allow access to every crypto exchange, so make sure whichever exchange you choose is available where you live
  • protection: Different exchanges offer different security measures and insurance policies
  • Outlay: Understand how much it will cost you to buy and sell cryptocurrencies on the exchange of your choice
  • Offered coins: Some exchanges offer only a limited amount of coins
  • storage: Many exchanges come with a relevant crypto wallet offering to help you keep your investment safe

[READ MORE:] Want to buy Crypto? Here’s what to look for on a cryptocurrency exchange

Other places to buy cryptocurrency

While you cannot buy cryptocurrency from an online investment brokerage such as Fidelity or Charles Schwab, there are a few options available to investors besides traditional cryptocurrency exchanges.

Popular online payment platforms such as Venmo, Paypal, Cash App – and mobile stock trading platform Robinhood – have recently expanded their services to allow customers to purchase cryptocurrency on their platforms. Experts say these apps can be an easy alternative for beginners who don’t want to mess around with discovering cryptocurrency exchange, which can be complicated for new users.

But if you buy cryptocurrency on these platforms, then it may be difficult to transfer your cryptocurrency outside the platform to a cryptocurrency wallet, which can provide more security for your investment. In fact, you cannot transfer your contract from platforms like Venmo or PayPal at all, while traditional exchanges allow you to move your cryptocurrency off the platform if you wish.

[READ MORE]: You can buy Crypto on Venmo and Robinhood. Read this before you do

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