Top Apps and Exchanges for Cryptocurrency Trading
Cryptocurrency has become increasingly popular in recent years, but only a minority of Americans have actually traded it. The appeal for traders lies in the potential to make significant money on the volatility of these highly speculative assets. Among the most popular cryptocurrencies are Bitcoin, Ethereum, and Cardano, each of which have seen a lot of action as prices rise and fall.
Accessing Cryptocurrencies
Traders now have an increasing number of ways to access cryptocurrencies, with new exchanges and trading platforms emerging in response to the widespread interest in crypto. Popular apps such as PayPal and Venmo now let users buy and sell a few different cryptocurrency coins. Other apps and exchanges provide access to a wider selection of cryptocurrencies, with thousands of options available.
Top Apps and Exchanges for Cryptocurrency Trading
Binance.US
Binance.US stands out as one of the best crypto exchanges due to its low trading costs. Traders can access commission-free trades for Bitcoin and Ethereum, with other coins priced on a sliding scale for high-volume traders. Binance offers access to more than 130 cryptocurrencies and has faced legal battles with the SEC regarding its operations.
Coinbase
Coinbase is a specialized cryptocurrency exchange offering a wide range of digital currencies for traders. The fee structure is complex, with spread markups and transaction fees based on the size of the transaction and funding source. The SEC sued Coinbase in 2023 alleging illegal operations as an exchange and violating securities laws designed to protect investors.
eToro
eToro is a broker dedicated exclusively to cryptocurrency trading. Traders have access to about 80 cryptocurrencies, each with a flat spread markup of 1 percent. eToro primarily caters to American traders, offering a more diverse selection of coins compared to traditional brokerage apps.
Kraken
Kraken is another specialized cryptocurrency exchange supporting trading in more than 212 cryptos. It offers competitive commissions ranging from 0.16 to 0.26 percent at the lowest volume levels, appealing to high-net-worth traders with access to margin trading. However, it does not operate in New York and Washington State. There are fees for card transactions and online banking, with obstacles for bank funding.
Robinhood
Known for its trading app for stocks, options, and ETFs, Robinhood has expanded into cryptocurrencies, offering a selection of 18 different coins. While trading is advertised as commission-free, a spread markup is incorporated into the trade, with costs built into a coin’s buy or sell price. However, some coins may not be available in all states for trading.
Webull
Webull’s feature set differentiates it from other trading apps, offering stocks, options, ETFs, and cryptocurrencies with no out-of-pocket commission. Similar to other apps, Webull also uses a spread markup for its crypto trades, and it offers a slightly larger range of coins compared to Robinhood, including Cardano.
Cash App
Although known primarily for its cash management account and trading of stocks and ETFs, Cash App also offers the ability to trade Bitcoin with a disclosed fee structure. Additionally, a spread markup is charged for trades. Unfortunately, it only provides access to Bitcoin for trading.
PayPal
PayPal is another popular financial app that allows trading of cryptocurrency, with fees starting at 49 cents for trades under $5 and gradually rising to a percentage as low as 1.5 percent for trades over $1,000. The app offers a straightforward fee structure, inclusive of a spread markup.
Cryptocurrency trading has become increasingly accessible to investors, offering a wide range of coins and trading platforms to suit individual needs and preferences. While the SEC has been pushing back against some of these exchanges and apps, the popularity and interest in cryptocurrency trading continue to grow.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.