The prospect of engaging with cryptocurrency is often nerve-wracking for beginner users. With the right platform, however, the process can be greatly smoothed out. Oftentimes, users find themselves unsure whether they should be purchasing Bitcoin first or moving onto other altcoins, and in such instances, the platform selected can greatly dictate whether purchasing Bitcoin will be a seamless or challenging task.
This article aims to cover the most refined platforms for novice crypto traders, focusing on user-friendliness, appropriate safety measures, and other pertinent crypto trading functionalities.
Coinbase
Overview
Through Coinbase, users will find that they can purchase, sell, and store multiple cryptocurrencies. Some of the most notable coins such as Bitcoin and Ethereum can be bought alongside other coins such as Litecoin. Due to the sheer popularity that Coinbase has gained over the years, users should expect a smooth experience in regards to purchasing and trading through the platform.
Key Features
- Easy to Use Interface: As Coinbase is tailored towards beginners, they will be able to navigate through the different features and start trading in a short span of time.
- Educational resources: New users will receive a set of resources tailored towards teaching crypto to beginners, allowing users to better understand the fundamentals.
- Security: The insurance that Coinbase offers for the assets as well as the two-factor authentication greatly enhance the security of the platform ensuring that the user’s peace is maintained.
- Mobile App: Coinbase enables trading and purchases through its mobile application, which is straightforward and navigable, ensuring users can trade while away from home.
Pros
- Educative tools and resources are available.
- High security and insurance protection.
Cons
- Higher fees compared to other exchanges.
- Limited advanced trading tools.
Best For
Coinbase is best suited for novices who want a tradeable account within minutes, as the onboarding and verification process is painless and straightforward.
Binance
Overview
Binance is the largest cryptocurrency exchange worldwide and is distinguished for its large catalog cryptocurrency selection, advanced trading options, and low trading fees. For slightly more advanced users, Binance offers a wealth of resources and a simple interface tailored specifically to their needs, ensuring their transition to the platform isn’t as intimidating as it may seem.
Key Features
- Low Fees: For a beginner, Binance is infamous for charging low trading fees, ensuring their profits are greatly expanded.
- Wide Selection of Cryptocurrencies: Binance contains multiple currencies, many of which are lesser-known altcoins.
- Mobile App: Binance offers a mobile application that is intuitive and encompasses all functions needed for trading on the go.
Pros
- Significantly low trading fees.
- Wide Variety of Cryptocurrencies.
- Learning materials for new users.
Cons
- The variety of offerings on the platform can be overwhelming for new users.
- Support staff may not respond quickly.
Best For
For new users looking to trade at lower prices and are willing to diversify their portfolio of cryptocurrencies, this is the best choice.
Kraken
Overview
Kraken is yet another prominent cryptocurrency exchange, distinguished by its simple interface for new users along with advanced features for seasoned traders. Kraken is well-known for its good security and range of cryptocurrencies.
Key Features
- Security: Kraken is one of the most secure exchanges with highly advanced features. These include 2FA, cold storage, and insurance on assets stored on the exchange.
- User-Friendly Interface: Beginner traders can benefit from the simple interface, while advanced users can access the many features.
- Educational Tools: With their advanced learning materials, new traders can learn about the crypto trading and investing markets with ease.
- Mobile App: With the Kraken mobile app, trading and tracking one’s portfolio have never been easier.
Pros
- Offers a wide variety of cryptocurrencies.
- Comprehensive educational content.
Cons
- While the features are advanced, they are not the same intuitive for all users.
- Higher fees for smaller trades.
Ideal For
Beginners who value enhanced security and prefer to develop their trading skill over time.
Gemini
Overview
Gemini is an American cryptocurrency exchange well recognized for its compliance with regulatory authorities and security features. Gemini has an intuitive and appealing interface and provides a safe space for novice users to purchase, trade, and store digital assets.
Key Features
- Regulated Exchange: Gemini stands as one of the few fully regulated exchanges in the U.S. which is a good thing for initial traders based in the U.S.
- User Friendly: The exchange has an easy to access and straightforward design that is specialized for novices.
- Security: Gemini ensures the best security standards with the use of insurance for digital assets, two-factor authentication, and cold storage.
- Mobile App: The mobile app of Gemini is feature rich and allows traders to fully utilize the exchange while on the go.
Pros
- It is a regulated and secure platform.
- Streamlined and simpler interface.
- American traders will find it very useful and beneficial.
Cons
- It has comparatively higher fees than some use other exchanges.
- Subscribed to a low range of assets than other exchanges such as Binance.
Ideal For
Beginners from the U.S. looking to trade on a secure and regulated platform.
eToro
Overview
eToro is a social trading platform that enables trading cryptocurrencies, stocks, commodities, and other assets. eToro is known for its social trading features that allow people to follow and copy the trading activity of more experienced traders.
Key Features
- Social Trading: eToro’s social trading feature gives users the ability to follow and copy the trades of more adept traders. This is an outstanding method of learning through observation.
- User Friendly: eToro is easy to navigate for users, especially beginners, due to its intuitive interface and tools.
- Security: eToro’s security strategies include Two-factor authentication (2FA), which makes the platform’s security strong and protects eToro users’ funds.
- Mobile App: Users can manage their trades and investments through eToro’s mobile app.
Pros
- Social trading makes it easy for users to learn from more seasoned traders.
- Good platform for beginners due to it’s easy-to use features.
- There is a wide variety of assets to trade: crypto, stocks, and more.
Cons
- Dedicated crypto exchanges have lower fees and spreads than eToro which puts eToro at a disadvantage.
- eToro lacks advanced trading tools which makes it harder for experienced traders to use the platform.
Best For
eToro is best suited for beginners who wish to learn from more seasoned traders through social trading.
Conclusion
Selecting the appropriate platform is important for all newcomers hoping to start their cryptocurrency trading journey. Here’s a recap for the best platforms:
- Coinbase: Recommended for the absolute beginners who want something simple and secure.
- Binance: Best for beginners who want to explore a wide selection of cryptocurrencies and low fees.
- Kraken: Good for beginners who are more security-conscious and want to eventually branch out into more advanced trading options.
- Gemini: Best for beginners in the United States who want a regulated and secure platform.
- eToro: Best for beginners who want to observe and learn through social trading.
Settling on the most suitable platform from the start makes a difference in crypto trading. Explore different options and figure out the platform that suits your needs and requirements, and you’ll have a solid start in the crypto world.
FAQs: Best Platforms for Beginner Crypto Traders
Q1: Which platform is best for beginners?
Coinbase is often considered the best for beginners due to its simple interface and educational tools.
Q2: What are the fees like on these platforms?
Fees differ from platform to platform. Binance has listed the lowest fees compared to all other platforms, while Coinbase and Gemini tend to have higher fees, especially on smaller trades.
Q3: May I conduct trading through my mobile device?
Definitely! All these platforms have mobile applications that enable you to trade seamlessly from any location.
Q4: Are these platforms secure?
Sure! Each and every platform mentioned here utilize potent measures like 2FA, cold storage, and encryption to secure your funds.
Q5: Which platform has the most cryptocurrencies?
With Binance, they have the largest variety of cryptocurrencies, which is perfect for beginners looking to try different coins.
