Although cryptocurrency has gained immense popularity recently, only a small portion of Americans have engaged in trading it. Bitcoin, Ethereum, and Cardano stand out as the most popular cryptocurrencies, witnessing substantial activity with their fluctuating prices. Traders are drawn by the potential to make substantial profits amidst the volatility of these speculative assets.
Access to cryptocurrencies has become more widespread, with the emergence of new exchanges and trading platforms, some of which might already be on your phone. For instance, apps like PayPal or Venmo allow users to buy and sell a few types of cryptocurrencies. Other platforms offer a broader selection of thousands of cryptocurrencies or provide additional benefits, like lower fees.
Below, find a list of top apps and exchanges for crypto trading in January 2024, along with essential details to help you choose:
Binance.US: Known for its low trading costs, Binance.US offers commission-free Bitcoin trades and a sliding scale for other coins. However, in June 2023, the SEC filed a lawsuit against Binance for alleged illegal operations and misuse of customer funds, resulting in a hefty fine and CEO’s resignation.
Coinbase: This specialized exchange allows trading in numerous digital currencies, including Bitcoin. However, its fee structure has become more opaque, following a lawsuit from the SEC in June 2023, alleging illegal operations.
eToro: For American traders, eToro focuses solely on cryptocurrencies, offering access to about 25 cryptos without direct commissions but a 1% spread markup.
Kraken: Supporting over 230 cryptocurrencies, Kraken faces legal challenges from the SEC, accused of illegal operations. The exchange offers competitive fees but charges for certain transactions and limits access in some states.
Robinhood, Webull Pay, Cash App, and PayPal: These platforms provide varying degrees of access to cryptocurrencies, with different fee structures and limitations on available coins. However, each has its unique features and costs to consider before starting trading.
In selecting the best platform for your needs, consider factors like the range of cryptocurrencies offered and associated costs. Whether you aim for a wide variety of digital currencies or focus on major ones like Bitcoin and Ethereum, understanding the costs involved is crucial before diving into trading.