Best Altcoin Exchanges

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Want to jump straight to the answer? The best altcoin exchanges are Gemini and Coinbase!

Alternative coins, or altcoins, include any cryptocurrencies other than Bitcoin and include tokens like Ethereum, Uniswap, Dogecoin and thousands of other cryptocurrencies. The best altcoin exchange depends on what you’re looking to invest in, as well as what features you’re looking for in a trading platform.

You need an account with a cryptocurrency exchange to get started. Some exchanges let you trade altcoin-bitcoin pairs, meaning you can buy and sell altcoins using bitcoin. Trading altcoins against bitcoin is a great choice if you want to track your portfolio’s performance against the king of crypto: Bitcoin.

Most crypto exchanges support at least some altcoins. Depending on the exchange you choose, the types of altcoins you can buy will differ. Some crypto exchanges offer financial derivatives, interest-bearing accounts and even pre-approved lending.

Take a look at our list of 6 best exchanges for altcoins.

Best for Active Investors: eToro

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Social Investing

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Disclosure: Take 2 mins to learn more at https://etoro.tw/44JRWLY. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk

Best For

Social Investing

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eToro crypto offers access to wide range of tokens, investment opportunities and educational tools for investors of all styles and levels of experience.

Best For

• Investors looking to CopyTrade other traders
• Simple user interface

Pros

• Several major cryptocurrencies and altcoins
• Expansive network of social trading features
• Large client base for new traders to imitate
• 100+ coins available

Cons

• PayPal and Credit Card are not available for UK and FCA users

eToro is a great choice if you want to actively involve yourself in cryptocurrencies. eToro has a unique social media platform on its exchange and allows users to communicate trading ideas to each other. 

eToro is a great place for beginners to learn about crypto since it has this built-in platform. Many beginners find eToro’s simple interface easy to learn. Also, eToro has a unique feature called CopyTrader, where users can allocate a portion of their funds to mimic popular traders’ portfolios. 

Best for Mobile Users: Gemini

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New Investors

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New Investors

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Gemini Trust Company LLC is a cryptocurrency exchange that supports trading in over 70 assets. While its selection of cryptocurrencies is limited compared to some competitors, Gemini excels in account security and regulatory compliance. The platform offers additional features such as a cryptocurrency rewards credit card, a built-in hot wallet, and the ability to pay crypto at various retailers. These tools and services make Gemini a robust choice for both new and experienced traders seeking a secure trading environment.

Best For

• Beginner-friendly platform offering handsome educational resources.
• Strong security features, including staking options.

Pros

• Gemini operates as a fully regulated cryptocurrency exchange.
• It accepts clients from the U.S.
• The platform employs stringent cybersecurity measures to protect users’ funds.
• Gemini is well-capitalized and adheres to banking regulations.

Cons

• Gemini is available in 60 countries, including the United States, the United Kingdom, Canada, Australia, Hong Kong, Singapore and South Korea.
• It offers fewer crypto assets to trade, with just over 70 available.

Gemini, a cryptocurrency exchange, offers a great choice for mobile users. It offers a sleek mobile app for iOS and Android so you can manage your crypto on the go. Gemini currently offers bitcoin and 25 different altcoins on its exchange. 

You can also get an insured wallet on Gemini which protects you from online security breaches. You can point to several crypto hacks throughout the years, so it’s good to have an extra layer of security like insurance. Purchase a hardware wallet if you don’t have insurance.

Best for Beginners: Coinbase

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Active Crypto Traders

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Disclosure: Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

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Active Crypto Traders

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Coinbase is one of the largest cryptocurrency exchanges by trading volume, serving customers in over 100 countries and supporting hundreds of crypto coins and tokens. The platform features a user-friendly interface with options like staking and earning, as well as a “learn and earn” feature where users watch educational videos and answer questions to earn crypto assets. Trading fees can be high on the basic platform, but users can access the advanced platform for free.

Best For

• Coinbase is best for beginners because of its user-friendly interface.
• The availability of over 30 products caters to the needs of traders of every mindset.

Pros

• Coinbase offers a learn and earn program.
• You can earn coins and tokens by watching tutorials and answering crypto-related questions. This platform lets you earn crypto just by spending your fiat via a debit card as you normally would when you use Coinbase’s Visa debit card.
• Offer a wide variety of altcoins.
• Ideal for new investors.

Cons

• Complicated fee structure
• Does not support margin trading (only 3x on Pro version)

If you’re a beginner who wants to invest in cryptocurrencies, take a look at Coinbase. Coinbase offers about 40 different altcoins to choose from and it offers a unique feature where you can convert any altcoin into another altcoin automatically on its exchange. Coinbase can do this because it’s a crypto brokerage, not an exchange. The 2 altcoins aren’t actually traded for each other, Coinbase just credits your account with the correct tokens. 

Coinbase offers a website and mobile app for iOS and Android. To fund your account, you can connect to your bank via wire or credit card. Alternatively, you can send cryptocurrency to your Coinbase wallet to fund your account. 

Best for DeFi Exchanges: Crypto.com

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Sign Up Bonuses

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Crypto.com strives to make cryptocurrency a part of everyday life by offering a full suite of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi swap, DeFi Wallet, DeFi Earn, Crypto.com Price, staking, crypto lending, and many other services. What really sets them apart, however, is the combination of super low fees and incredibly generous rewards programs for their users.

Best For

• Traders who want access to a secure, low-cost cryptocurrency exchange
• Passive investors who want to earn interest on their balance without frequent trading
• Mobile investors who prefer to handle all their crypto needs via their phone or tablet

Pros

• Low fees
• High security
• One-stop shop for all your crypto needs (wallet, trading, spending, and more)
• Lots of ways to earn interest, rewards, and rebates

Cons

• Low privacy
• Customer service response time could be improved

Crypto.com is a cryptocurrency platform that allows you to store, transfer and exchange more than 90 cryptocurrencies. It also offers its Crypto.com Visa Card, so you can spend your crypto anywhere Visa is accepted and earn up to 8% back.

Crypto.com can get you verified in less than 5 minutes, and it’s free to open an account. The platform offers 24/7 customer support.

Beyond the Visa card, Crypto.com products include its app, Crypto Pay, Crypto Earn, Crypto Credit and the Crypto.com Exchange and DeFi Wallet. Crypto.com wants to accelerate the world’s transition to cryptocurrency, and its wide range of products can help you start your own process.

Best for Altcoin Variety: Binance

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Altcoin Trading

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Best For

Altcoin Trading

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Binance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively. 

Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.

Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies. 

Best For

• US Citizens
• Frequent day traders
• Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)

Pros

• Low trading fees
• Easy-to-use platform
• Wide selection of altcoins — it offers 51 cryptocurrencies apart from Bitcoin (BTC)
• Good customer service
• High liquidity because of large trading volumes

Cons

• Only residents of 43 states in the U.S. can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
• Despite the wide selection of altcoins, the number of tokens offered on the U.S. platform is not comparable to the hundreds of choices available on the Binance global platform
• There is no option for telephonic customer support

Binance, a leading cryptocurrency exchange with several built-in features, offers you the choice to trade against bitcoin, U.S. dollars, or USDT trading pairs. (USDT is a stablecoin that’s pegged to the U.S. dollar and has a 1:1 ratio with the U.S. dollar.) Binance also has its own token, Binance coin (BNB), that you can use to pay transaction fees. 

Depending on your location, Binance may also offer financial derivatives. Binance offers margin trading in some regions and allows you to leverage your crypto positions. 

Best for Comparing Exchanges: Swapzone

Best For

Finding the Best Exchange Rates

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Best For

Finding the Best Exchange Rates

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Swapzone is a cryptocurrency exchange aggregator that provides a 1-stop solution for finding the best instant exchange deal to proceed with. Swapzone helps traders browse through services, compare different exchange rates and analyze and swap 500+ cryptocurrencies in just 1 interface. All swaps are custody-free, with no registration needed.

Best For

• Finding the best exchange rates
• Active traders
• Long-term investors

Pros

• No additional transaction fees
• Fast and secure
• 24/7 customer support
• Dynamic interface

Cons

• May be confusing for novice traders
• May be unnecessary for experienced traders

Swapzone is an aggregator of what each exchange can offer you. With 15 supported exchanges and over 500 available currencies, you can use the simple forms on the homepage, review a few swaps, choose your favorite and close the deal.

At Swapzone, you enter the crypto you have, what you want to get back and you will see every available deal out there. You don’t have to scrounge through every exchange hoping to find the right deal when Swapzone shows you everything right away. This is far simpler than going for the safest deal. In the case of Swapzone, you always get the best deal.

You also get 24/7 live chat and Gmail support for any questions you may have. You only pay blockchain and partner exchange fees, avoid hidden fees and have the chance to make snap decisions without experiencing information overload.

Crypto Exchange vs. Broker

Crypto brokerages and crypto exchanges serve the same function but operate differently. Crypto brokerages such as Coinbase set the price of altcoins consistent with the market. Alternatively, crypto exchanges use order books consisting of buy and sell orders to set the price of their altcoins. Binance is an example of a cryptocurrency exchange.

Which Exchange Has the Most Altcoins?

Of the exchanges listed above, Binance has the widest variety of altcoins. Binance supports 184 different cryptocurrencies and over 500 trading pairs. Other exchanges still support most major market cap altcoins and both Coinbase and Gemini support dozens of altcoins. 

Argent technically supports more tokens than these exchanges, you’ll tap into less variety because Argent only supports Ethereum-based tokens. Most investors care more about the quality of altcoins supported on an exchange compared to the number of altcoins offered on an exchange. 

Altcoin Watchlist

With thousands of altcoins on the market, it’s hard to know which to invest in. As a general rule of thumb, smaller market cap altcoins are more volatile than larger market cap coins. Many altcoins are built on Ethereum using the ERC-20 token standard, but many others use their own blockchains or are hosted by alternative layer 1 blockchains, such as Solana and Avalanche. To see some of the top altcoins by market cap, check out our table below.

Bitcoin

BTC

$111,155.00

-1.66%

Trade

Ethereum

ETH

$3,988.08

-4.18%

Trade

Tether

USDT

$1.00

0.00%

Trade

XRP

$2.84

-1.47%

Trade

BNB

$994.47

-1.57%

Trade

Solana

SOL

$201.39

-5.03%

Trade

USDC

$1.00

-0.01%

Trade

Dogecoin

DOGE

$0.23

-5.00%

Trade

Lido Staked Ether

STETH

$3,983.49

-4.31%

Trade

TRON

TRX

$0.33

-1.45%

Trade

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Should You Invest in Altcoins?

Only invest in volatile altcoins if you’re risk tolerant. More established altcoin projects like Ethereum are generally less risky than small market cap coins but offer less return. Before investing in an altcoin, do your research:

• What problem does this altcoin solve? Can’t figure out what problem an altcoin solves? Chances are, the project doesn’t add much value to the market. Some coins that solve trivial problems may still appreciate in the short term, but you should question the project’s long-term sustainability.
• Why does decentralization help solve this problem? Using blockchains where decentralization is unnecessary often creates inefficiencies. Blockchains are slow, power intensive and hard to operate. Before investing in an altcoin, ask yourself if decentralization on a blockchain is necessary for the project to operate. If it isn’t, then the company likely issued its altcoin as an easy way to raise capital. This was extremely common in the 2017 bull market when the initial coin offering (ICO) craze took place. 
• Who developed this project? Knowing the core developers and founders of the altcoin project you want to invest in will give you insight into how the project gets managed. If a project doesn’t display any team members on its website, it’s a red flag. Anonymously developed altcoins are fraudulent. It’s also a good idea to vet the founders/developers on external websites so you can see their past experience and verify their identity.
• How many coins will be minted/are in supply? An altcoin’s price has little to do with its growth potential. Just because a cryptocurrency is cheap doesn’t mean that it has more room to grow than a more expensive coin. You should also know the maximum supply of the coin and how many coins are currently in circulation, as this greatly affects the altcoin’s price.

Investing in the right altcoin projects can lead to huge returns. In the 2017 bull market, it wasn’t uncommon for investors to make 10 or even 100 times their return on altcoins they held through the market cycle.

Related link: COINBASE VS. ROBINHOOD

The post Best Altcoin Exchanges by Ryan McNamara appeared first on Benzinga. Visit Benzinga to get more great content like this.