Coinbase has grown to become one of the leading exchanges in the cryptocurrency industry. The exchange offers a secured trading environment, allowing users to buy and sell digital currencies conveniently. Although Coinbase has established a strong reputation in the crypto market with its services, there are still cons to using the exchange. So, we will discuss other Coinbase alternatives you can use when its services slacks.

Coinbase Overview

Coinbase was launched by Brian Armstrong and Fred Ehrsam in 2012 – one of the long-running digital currency exchanges – and it’s based in San Francisco, United States. The exchange is available in more than 100 countries, including Asian and African nations. It’s mainly known as a platform for buying, selling, and trading popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dash, and others.

It’s worth noting that Coinbase controls a large trading volume in the crypto market. The exchange’s professional trading platform – Coinbase Pro – sees over $2 billion in daily trading volume, according to Coinmarketcap. Unarguably, this platform has become a one-stop place for many people to buy and sell cryptocurrencies. However, the services are not 100 percent user-satisfactory, which is why some people are considering other Coinbase alternatives, in some cases, as a backup.

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Why you should consider Coinbase alternatives

  • Many people seek alternatives to Coinbase because they do not offer the best/cheapest fee in the crypto market. Besides, these fees vary based on users’ jurisdiction. 
  • Coinbase supports about four three payment methods for deposit. These include bank account (ACH), debit card, and bank wire.
  • More especially, the exchange faces server breakdown when cryptocurrency begins to rally. Many users complain about this, as it locks them out from buying or selling their crypto during the bull run. 
  • The exchange doesn’t support every country. 

Top Coinbase Alternatives in 2021

Binance

Binance is a Coinbase alternative you might want to consider in 2021. The exchange holds the largest trading volume in the cryptocurrency market; regardless, it was only launched in 2017 by Changpeng Zhao. Although the exchange was once a victim of cyber-attack, the security measures on the platforms have since leveled up. Binance is rated as one of the secured places to trade digital currencies. 

Also, the exchange supports a large number of cryptocurrencies. Its daily trading volume is up above $15 billion, from 1,037 active trading pairs.

Pros:

  • Binance supports users in several countries.
  • It offers a competitive trading fee.
  • There are tons of cryptocurrencies to trade on the exchange.
  • The exchange also supports deposits in more than 40 fiat currencies.
  • It also has a mobile and desktop application.

Cons:

  • There are withdrawal limits for unverified users on the platform.
  • Binance doesn’t have too many advanced trading tools.
  • The crypto exchange is not the best user-friendly platform for beginner traders.

Gemini

This is another leading cryptocurrency exchange based in the United States. Gemini was founded by the Winklevoss brother – Tyler and Cameron. Gemini is one other Coinbase alternative with a large daily trading volume and decent average liquidity. The exchange is regulated in the US, and hence, it’s one of the safest platforms to buy and sell cryptocurrency.

You can trade about 26 popular cryptocurrencies from the Gemini exchange, including Bitcoin, Ethereum, and DeFi tokens like Compound (COMP), Balancer (BAL), Maker (MKR), and others.

Pros:

  • Gemini is a regulated Coinbase alternative.
  • It’s beginner-friendly for new investors looking to buy digital currencies.
  • The cryptos in the exchange are insured.

Cons:

  • Gemini doesn’t support a huge number of crypto like Coinbase.
  • The exchange also does not offer the best fee for buying and selling crypto.

Kraken

Kraken is another regulated Coinbase alternatives based in the United States. It was founded by Jesse Powell in 2011 to facilitate easy trading of cryptocurrencies for residents in the country and beyond. It’s available in about 48 states in the US and more than 170 countries of the world.

As a regulated crypto exchange, Kraken mandates know-your-customer (KYC) verifications to maintain its compliance with the regulators in the United States. This means that every Kraken user will have to verify their identities to use the platform. 

Pros:

  • Kraken supports users from many countries.
  • It’s one of the safest exchanges to trade digital currencies.
  • The exchange controls a large volume of trades, meaning that liquidity is not an issue there.

Cons:

  • You need to confirm your identities to unlock the exchange services.
  • It’s not a friendly Coinbase alternative for new entries in the cryptocurrency market. 

Bitfinex

Bitfinex is one of the many cryptocurrency exchanges launched to provide users an ultimate trading experience. This Coinbase alternative is headquartered in Hong Kong and operated by iFinex, the parent company of Tether Inc., the issuer of the US dollar-backed stablecoin, USDT. Bitfinex has been in operation for the past nine months. However, they do not support customers from the United States.

The exchange supports several cryptocurrency services, including derivatives trading, margin trading, and funding, over the counter trading, staking and lending, etc. It’s worth mentioning that the exchange was hacked of 1500 Bitcoin back in 2015, although its security system has probably been beefed up after the incident.

Pros:

  • Kraken offers many cryptocurrencies on its platform.
  • It’s one of the leading platforms to trade digital currencies. 

Cons:

  • The exchange is not available for cryptocurrency investors and traders in the United States.
  • It’s not the best exchange for new investors.
  • Bitfinex lacks an easy deposit method, besides having a complicated interface.

CEX.IO

CEX.IO is a London-based Coinbase alternative worth considering in 2021. It’s one of the oldest cryptocurrency exchanges, precisely launched in 2013. In addition to offering advanced services for professional traders, the exchange does have a simplified option for new investors to easily buy and sell digital currencies. Some of the cryptocurrencies supported on the exchange include Bitcoin, Ethereum, Dash, etc.

The exchange is available for users in many countries, including 47 states in the United States.

Pros:

  • CEX.IO supports many payment methods.
  • It offers competitive commissions for buying and selling crypto.
  • Its simplified buy/sell option makes it ideal for new crypto investors.

Cons:

  • CEX.IO doesn’t support a large number of cryptocurrencies. 

Conclusion

Exchanges contribute significantly to our daily crypto experience, which is why choosing a convenient and secure platform is important. The exchanges listed above a few Coinbase alternatives you might want to consider for trading or simply buying and selling digital currencies. Cryptocurrencies can be profitable, and at the same time, risky. Hence, you should only invest the amount that you can afford to lose. 

Also, do further research to learn about a more convenient and secure exchange to use before depositing your fund with them.