In this article we will take a look at the 15 best cryptocurrency trading platforms in 2021.
You can skip detailed analysis of the crypto industry’s outlook for 2021 and go directly to 5 Best Cryptocurrency Trading Platforms in 2021.
It now seems more than evident that cryptocurrencies have a bright future as banks, institutional investors, hedge funds and broader markets continue to turn bullish on the digital currency which was once looked at with skepticism. As of 2021, there are around 4,000 existing cryptocurrencies in the digital infrastructure, a drastic increase in the number from a smattering of digital coins in 2013. Despite many fears and uncertainty regarding cryptocurrencies initially, it has become a global sensation, attracting many traders worldwide. In the U.S, the percentage of crypto owners has reached 10%, whereas, in Britain, 13.5% of people own cryptocurrencies. Moreover, the crypto market cap tops $2 trillion, out of which Bitcoin accounts for 50% and remains the powerhouse of the cryptocurrency market. The numbers tell us that the future of cryptocurrencies is bright and holds a lot of potential for further growth. Even during the pandemic in 2020, the value of Bitcoin surged because of unexpected prospects of the job industry. People started investing in cryptocurrencies by focusing on their future value.
The Dramatic Rise of Bitcoin
The rise in the price and demand of cryptocurrencies today can be attributed to institutional support. Many publicly traded companies are now holding crypto, especially Bitcoin, to enhance business opportunities. MicroStrategy Incorporated (NASDAQ:MSTR) owns approximately 90,859 acquired for $2.19 billion. Also, Square, Inc. (NYSE:SQ) has recently invested $170 million in Bitcoin and now owns around 8,027 Bitcoins worth $400 million. Tesla, Inc. (NASDAQ:TSLA) customers can buy their cars using bitcoins. The announcement was made when the company chief, Elon Musk, announced the whopping purchase of $1.5 billion worth of Bitcoin. Square (NYSE:SQ) is one of the many companies that knew the importance of cryptocurrencies ever since their inception. Its mobile payment service, Cash App, facilitates the users to buy and sell bitcoin from available Cash App balance. Moreover, Paypal Holdings, Inc. (NASDAQ:PYPL) has recently announced that customers in the U.S. can pay with Bitcoin, Litecoin, and Ethereum. The new option, ‘Checkout With Crypto,’ allows converting cryptocurrencies to U.S. dollars without any transactional fee. PayPal (NASDAQ:PYPL) already enables users to buy and sell cryptocurrencies from their accounts. Other than these, Galaxy Digital Holdings Ltd. (TSE:GLXY) has about 16,400 bitcoins worth $569 million.
With this trend, the need emerged for crypto trading platforms, which basically carry out the trading of digital currencies and are responsible for cryptocurrency sales’ value and price. These cryptocurrencies can be traded for other assets like digital and fiat money. The trading platforms make money through transaction fees and are intermediaries between the buyer and the seller. The trading platforms are divided into centralized and decentralized exchanges. Centralized exchanges (CEX) involve the third party which controls the account to carry out a trade. In contrast, decentralized exchanges (DEX) do not require any central authority, and they enable peer-to-peer trade, bringing buyers and sellers together. In a recent phenomenon, decentralized finance (DeFi) has grown because of greater transparency, security, and accessibility. Moreover, they also offer lower transaction fees to the traders.
With this context and industry outlook in mind, let’s start our list of the 15 best cryptocurrency trading platforms in 2021. The is based on the number of supported coins, security, fee structure, and payment methods.
Best Cryptocurrency Trading Platforms in 2021
Photo by Austin Distel on Unsplash
Best Cryptocurrency Trading Platforms in 2021
15. BitStamp
Cryptocurrencies: 5+
Payment Methods: Credit/Debit Card, Wire Transfer, SEPA
BitStamp was founded in 2011, which makes it one of the oldest crypto trading platforms. Though BitStamp offers easy signup, the extensive Know Your Customer (KYC) process makes the exchange a little user-hostile than others. However, its lower transaction fee makes it a competitive business in the market. It charges 0.05% and 0.1% for international deposits and transfers, respectively. The exchange’s security was brought into question after the hack of 2015, which is now revamped by two-factor authentication and Multi-Sig wallets. The platform has been serving over 4 million customers globally.
14. Coinmama
Cryptocurrencies: 10
Payment Methods: Wire Transfer, Debit/Credit Card
Coinmama is a financial service from Israel and came into being in 2013. The platform is best suitable for beginners because of its user-friendly approach. Customers can buy cryptocurrencies with fiat money, or they can also sell Bitcoin on the site. Coinmama charges a fee of 5.5% with an additional 5% charge while using a debit/credit card. However, the site has a Coinmama Loyalty Program that offers a reduction in fees depending upon the platform's usage.
13. KuCoin
Cryptocurrencies: 10
Payment Methods: Bank Transfer, Debit/Credit Card, Wire Transfer
A Hong Kong-based exchange, KuCoin is relatively new in the market but is considered as a highly safe platform. It offers two-factor authentication to its users, and its Safeguard Program is focused on protecting those affected by security incidents. KuCoin charges 0.1% trading fees from its customers. Its native coin, KuCoin Shares (KCS), allows the users to get discounted trading rates along with many rewards. Moreover, 50% of the daily revenue of the exchange is paid out to the KCS holders as per the number of shares they hold. KuCoin is fast and straightforward with a trouble-free signup process.
12. Cex.io
Cryptocurrencies: 25+
Payment Methods: Bank Transfer, Credit Card
Founded by Oleksandr Lutskevych, Cex.io marked its entry into the market in 2013. The platform is one of the most secure exchanges as it is registered as a Money Service Business MSB with the Financial Crimes Enforcement Network (FinCEN) in the U.S. it has around 4 million registered users worldwide and operates in over 170 countries. Initially, Cex.io only offered cloud mining services, but then it became the online exchange platform. It provides a wide range of cryptocurrencies, including the crypto giants like Bitcoin, Ripple, Ethereum, which are to be traded for USD, GBP, RUB, and EUR. One thing that makes Cex.io distinctive from its counterparts is the easy payment method. It also promises the direct and instant withdrawal of funds to a bank account or card. Cex.io also offers margin trading based on Contracts for Difference (CFDs)- a difference in settlement price between the opening and closing trades. This leverage makes the exchange equally suitable for both amateurs and advanced traders.
11. Gemini
Cryptocurrencies: 30+
Payment Methods: Bank Account and Wire Transfer
Gemini was founded in 2014 by Tyler and Cameron Winklevoss. The platform supports around 33 cryptocurrencies along with a wide range of trading pairs. In 2020, Gemini achieved a new milestone by launching an insurance company for the cryptocurrencies stored in their exchange wallet. The company has a tiered payment system. The fee for transfers up to $200 ranges from $0.99 to $2.99, and above this will cost 1.49% of the transfer value. Gemini offers solid security measures through hardware security modules (HSMs), hot and cold storage, and encryption for securing users’ data. In 2018, Gemini launched its very own Gemini Dollar (GUSD), an ERC20 token built through the Ethereum network. According to the founder brothers, GUSD will bring the traditional finance and crypto industry close. As of 2021, Gemini is licensed to do business in around 49 U.S. states.
10. Changelly
Cryptocurrencies: 160+
Payment Methods: Credit/Debit Card, Crypto, Bank Transfer
Changelly is one of the fastest and most straightforward crypto exchanges. It was founded by Konstantine Gladych in 2013 in Prague, Czech Republic. The platform offers a broad range of coins with a breakneck transaction speed when used through the mobile app and desktop. Changelly has a user-friendly interface; users’ personal information is not a requisite for making an account. It has recently introduced three fiat currencies- USD, GBP, and EUR. The users can make payments through Visa and Mastercard or debit cards. For crypto-to-fiat transactions, Changelly charges a fee of 5%, which doesn’t make it much convenient and adaptable. However, it is best for crypto-to-crypto trade with a 0.25% fee. At present, Changelly has over 2 million customers spread around 30 countries.
9. Crypto.com Exchange
Cryptocurrencies: 55+
Payment Methods: Crypto, Wire Transfers, Credit/Debit Card.
As the name suggests, Crypto.com Exchange is a go-to crypto trading platform with around 1 million users worldwide. The main aim of the exchange was to introduce a crypto credit card for more crypto adoption. It is one of the most secure exchanges with 100% of funds stored in cold storage and two levels of verification: basic and advanced. The advanced verified customers come with definite perks like unlimited deposits and a high withdrawal limit of 100 BTC. The exchange also has a native token, CRO. Their maker and taker fees start from 0.2%, but staking the CRO tokens can offer a 20% return of investment (ROI).
8. BitMex
Cryptocurrencies: 5+
Payment Methods: Crypto
This trading platform was established in 2014 in Hong Kong and is currently based in Seychelles. Though mainly the Bitcoin exchange, BitMex also deals with other cryptocurrencies, including Ethereum, Litecoin, Bitcoin Cash, etc. It offers low trading fees, which vary depending on the type of crypto and fiat currencies involved. The exchange promises an advanced level of security to its customers as it does not deal in fiat currencies. It also does not hold any geographical boundaries to where its customers are based. BitMex allows the customers to leverage future contracts on the platform.
7. Huobi
Cryptocurrencies: 100+
Payment Methods: Debit/Credit Card, Wire Transfer, Crypto
Launched in 2013 in China, Huobi now has offices in Japan, South Korea, Hong Kong, and the United States. The site offers a simple signup process with a relatively strong emphasis on additional verification to cater to security concerns. Huobi is well known for its extensive list of tradeable assets and offers a convenient range of funding methods, including debit/credit card and wire transfer. Huobi Wallet is a non-custodial wallet where users have complete control over their assets and offer a fast trading process. The two versions Huobi Pro and Huobi OTC, are devised explicitly for advanced and beginner traders, respectively. The site has over 2 million verified users in around 170 countries.
6. OKEx
Cryptocurrencies: 100+
Payment Methods: Crypto, Debit/Credit Card
OKEx is one of the most trusted exchanges operating today. According to the official website, the trading platform has around 20 million traders in over 200 countries. OKEx works on market competitive rates with a maker and taker fee of only 0.02%. The exchange also has a native coin, OKB, the holders of which enjoy a particular discount on trading fees. It also supports margin and short selling and deals with over 400 trading pairs.
5. Bitfinex
Cryptocurrencies: 140+
Payment Methods: Crypto, Bank Wire, Credit/Debit Card, Express Bankwire
Founded in 2012, Bitfinex is owned and operated by iFinex Inc. It has a user-friendly interface and also offers margin trading to its customers. Bitfinex provides a wide range of cryptocurrencies and multiple payment methods to investors. The exchange has suffered some unfortunate security incidents in 2015 and 2016. It now requires two-factor authentication and Universal Second Factor (U2F) while monitoring users’ IP addresses for aberrant movements. The platform offers fair prices with fees as low as 0.10% for orders less than $500,000 per month.
4. Bittrex
Cryptocurrencies: 250+
Payment Methods: Bank Transfer, Credit/Debit Card, Wire Transfer
Bittrex is a project of three cybersecurity engineers and was founded in 2014. The exchange is very simple to use, which is why it is best for beginners. Bittrex focuses on Muti-Sig wallets and Anti Money Laundering (AML) policies to answer the security concerns. Bittrex offers competitive rates with a 0.35% maker and taker fee on orders less than $25,000. The fast transactions also make it one of the customer-centric exchanges operating today.
3. Kraken
Cryptocurrencies: 50+
Payment Methods: Wire Transfer and Bank Transfer
Kraken is the oldest crypto trading platform and is offering its services since 2011. It was founded by Jesse Powell and is owned by Payward Inc. Kraken is regarded as one of the most trusted and secure crypto trading platforms because the digital assets are stored in cold wallets with encrypted account information. Kraken is available across 46 U.S. states and 176 countries. The fee is as low as 0% to 0.26% of the total value and is charged when the order is executed. In 2020, Kraken became the first crypto company to be awarded the charter of U.S. state banking. Kraken bank charter will launch digital and crypto banking products. Kraken has nearly 6 million clients and deals with around seven fiat currencies. Like its rival, Coinbase, Kraken also plans to go public through a direct listing in 2022.
2. Binance
Cryptocurrencies: 150+
Payment Methods: Debit/Credit Card, Wire Transfer, Bank Account
Binance focuses on altcoin trading. Founded in 2017 by Changpeng Zhao, Binance offers traders a wide range of cryptocurrencies including the most famous ones like Bitcoins, Ethereum, and Litecoin. Along with the other cryptocurrencies, Binance has its custom-made Binance Coin (BNB), which is used for purchasing and paying transaction fees. Binance is the largest crypto exchange based on trading volume. It also supports around 46 fiat currencies. The platform has a standard fee of 0.1% for buying and selling and a 25% discount for customers holding BNB. Binance became a decentralized exchange (DEX) with the development of Binance DEX in 2019 to encourage more peer-to-peer trading. Their mobile app is highly user-friendly because of its two versions. The Lite version of the app is suited for beginners, while the Pro version is best for experienced traders. In 2020, Binance turned a profit of about $570 million and expects to reach $800 million this year.
1. Coinbase Global, Inc. (NASDAQ: COIN)
Cryptocurrencies: 40+
Payment Methods: Debit/Credit Bank and Bank Transfers
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company has 56 million verified users in over 100 countries with 7 million monthly active users. Coinbase operates as a centralized exchange. The users can store their investments through custodial wallets; however, the private keys to the coins are owned by Coinbase. The company provides a wide range of cryptocurrencies and is a user-friendly exchange. Recently, Coinbase Global, Inc. (NASDAQ:COIN) has made its public debut, making it the first significant crypto company to go public. Coinbase went public via a direct listing rather than a traditional initial public offering IPO, in which new shares are created and then sold to the public. The company was valued at $85 billion in its market debut, a massive jump from $8 billion in valuations in 2018. In Q1 of 2021, Coinbase pulled out the revenue of $1.8 billion