Looking for a Coinbase Alternative? Consider these options.

Looking for a Coinbase Alternative? Consider these options.

There are over 200 crypto exchange companies making a market of cryptocurrency of about $3000 billion. This is a marketplace where all the buyers and sellers come to exchange digital currencies for money or digital currency. Coinbase is the most famous platform among users. Even if it has a huge audience of its own, there is no harm in trying a Coinbase alternative for a change. You never know what extra features you might unveil. 

 

Introduction of Coinbase

Coinbase is a well-established digital currency stock exchange pack for users to buy, sell, store and exchange cryptocurrencies. Being set up in San Francisco, it has also partnered with businesses like Overstock and Dell

But every new platform faces some issues after a period of time. Not everyone is a fan of this exchange platform. In March 2018, it faced severe complaints from the users. One of which was from Quartz about a doubling of customer complaints against the exchange giant. Moreover, in 2019, the server of the website crashed, leading to Bitcoin rising up to $1400 within minutes. In fact, some serious law-abiding complaints also took place. The IRS hit 10,000 Coinbase customers with warning letters. 

 

Coinbase Alternatives: What to Consider?

There are several factors to consider when choosing an exchange. While fees are a key consideration, they aren’t the only dimension to examine.

  1. Supported countries
  2. Safe and Security
  3. The reputation of the company
  4. Cryptocurrencies mentioned
  5. Fees, commissions, exchange rates
  6. Payment methods
  7. Geographical area
  8. Usability of the use
  9. Verification methods

Go through the list from the top and move towards the bottom of the exchange companies.

For example, increasing regulatory pressure has forced many exchanges to stop supporting US-based customers. If an exchange is available, consider if it has the necessary security in place to all-but-guarantee your precious coins won’t vanish. After that, make sure the exchange is held in high regard and that it trades the cryptocurrencies you want to deal in. Last, but certainly not least, consider the fees imposed by the exchange. Low fees equal more money in your pocket.

 

Best Coinbase Alternatives To Try

After keeping in mind the guidelines above, we have listed out the best alternatives for you to try. Here goes the list: 

Kraken:

Kraken was founded in 2011 and ever since has been blooming in the market. It is one of the oldest and trustable market exchanges. It processes highly secured transactions. Available in over 200 countries to use. Kraken vs coinbase is always a matter of discussion. Kraken provides 5 times the normal trading. It is also good for trading altcoins (almost 20 cryptos).  

Although, you have to use a laptop or computer to make trading. There is no mobile app for this stock exchange. Complicated fee structure for users to understand. Kraken also doesn’t support credit card purchases, which I think is a good deal. 

Additional note: Kraken Pro has advanced charting and trading tools. Can fund accounts with 5 different fiat currencies (USD, GPB, JPY, EUR, CAD). No KYC for the Starter tier.

BitMEX:

BitMEX is one of the first exchanges to offer margin trading for Bitcoin. Founded in the year 2014, the exchange now offers 9 different cryptocurrencies to opt from. Users can only margin trade on BitMEX, meaning that you cannot buy Bitcoin directly from their platform. In order to deposit funds, you’ll need to first use fiat to crypto exchange, then transfer your Bitcoin to your BitMEX account. 

They have leverage up to 100x. High liquidity. It comes with advanced tools and charts. They are one of the highest secured platforms. Gives complete anonymity. Platforms sometimes overload and are restricted to US users. The problem that you may face is with the interface. It can be a bit difficult to navigate for new users. 

Additional Information

  • No KYC required
  • US restriction can be bypassed by VPN (we do not condone users to attempt this)
  • Contracts do not expire

Although BitMEX and Coinbase are targeted towards different types of audience, it is worth exploring whether BitMEX is the right exchange for you. Users who are looking to trade cryptocurrencies with leveraged positions should look no further. With a whopping 100x leverage on Bitcoin and up to 50x on Ethereum, BitMEX is the best choice for high-risk traders and degenerate gamblers.

Binance:

Binance is without a doubt the top contender for the Coinbase alternative. Users globally agree with this conclusion as the exchange is number one in terms of the verified trading volume. It comes with over 160 cryptocurrencies and over 500 trading pairs, it should scratch all your crypto itches. Even though the exchange recently suffered from a hack resulting in 7,000 Bitcoins stolen, Binance refunded all their users and promised to increase their security measures.

 They are also working on building their own decentralized exchange to compete with IDEX and recently started offering leverage trading options to compete with BitMEX.

  1. Bitstamp: This exchange is based in Europe and was founded in 2011. Bitstamp is ranked among the best four alternatives for Coinbase. It is considered the oldest cryptocurrency in Europe. The following coins are found in exchange trades: Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. It has low transaction fees. Having a good reputation and security process. The volume you will find here is relatively low. 

Additional Information 

  • Fiat withdrawals take around 2-3 business days
  • The average response time for support tickets is 24-72 hours.
  • You can fund your account via wire transfer or a credit card.
  • Mobile apps are available for iOS and Android devices.

While not perfect, given its limited market reach, low volume, and list of only 14 crypto pairs, this is still a strong alternative to Coinbase. Particularly because of its relatively low fees, and most notably, free cryptocurrency deposits and withdrawals. Meaning that you can send your crypto here to test out the platform without incurring any costs.

IDEX:

A decentralized exchange is a type of cryptocurrency exchange where you can directly exchange cryptocurrency. This peer-to-peer exchange removed the hassle of the middle man. It takes away their charges of handling the private keys.  

It also supports anonymity, as well as more than 400 cryptocurrency pairs. You can trade directly from your wallet through their dashboard, and you can also cancel trades without having to lose anything in the process.

Because there are a lot of people out there that are hacking into people’s exchanges online, it’s worth using platforms like this, where the entire exchange platform is decentralized, and your information is kept away from would-be thieves.

Changelly:

Changelly is a simple yet effective trading platform for users. Recently, they are updating trading features for upgrades.

They say that they are one of the fastest and most secure ways to exchange and purchase more than 150 cryptocurrencies, and they make sure that you can do all of this safely through their 24/7 live chat support.

They believe that they have some of the best rates on the market, as well as reasonable and transparent fees, and high exchange limits. The best part is that their transactions are quick, and as we mentioned, they have around-the-clock customer support.

Liquid:

The liquid is based in Japan, a cryptocurrency platform doing tremendous work. It has reached high liquidity status over the years. It has clocked in more than $250 million in daily trading volume.

What is so surprising about this platform is that it does not support the American market yet. Obviously, this exchange platform has a really impressive road map and also has a special focus on regulatory compliance. However, it has very competitive fees, a lot of margin trading options, and regulatory compliance.

To be honest, this is coming as the most promising coinbase alternative, with quality performance. Moreover, it is creating special features for the US market. 

Frequently Asked Questions FAQs

  1. What is the best alternative to coinbase?

Ans: There are many exchange platforms available for the crypto market. Do no limit your trading to one platform, as we all know prices vary at different platforms.

The top 7 Coinbase Alternatives
  • Liquid – Best up-and-coming.
  • Gemini – Best for institutions and whales.
  • Binance – Best for volume & crypto options.
  • Bitstamp – Best for overall lowest fees.
  • Kraken – Best for trading tools provided.
  • BitMEX – Best for margin traders.
  • IDEX – Best DEX.

2. Who is the coinbase competitor?

Ans:  Coinbase is a company that develops an online platform that allows merchants, consumers, and traders to transact with digital currency. It consists of various features that lure its users to come back to coinbase. Although, there are some exchange platforms, giving tough competition to Coinbase. The top competitors include Blockchain, Binance, Bittrex, and Bitfinex.

3. How do you buy coins that are not on Coinbase?

Ans: Here is a quick guide for those who are not completely satisfied with the UI of Coinbase.

  1. Purchase your intermediate coin.
  2. Transfer your intermediate coin to the exchange.
  3. Download the wallet of your coin of choice.
  4. Buy the altcoins.
  5. Transfer the coins to their respective wallets.

Full verification usually requires the submission of your government-issued identification, and the authentication process can take up to a few weeks, so plan accordingly.

4. Has Coinbase ever been hacked?

Ans: Coinbase added that it had never been hacked. It said 0.004 percent of its users had experienced “account takeovers” in the past year, where someone breached their devices and then gained access to their Coinbase accounts. The company said it educated its users on how to keep their accounts secure.

5. How long does it take to transfer money from a bank to Coinbase?

Ans: For US citizens, Coinbase uses the ACH bank transfer system for transfers to the bank account. The ACH bank transfer system typically takes 1-2 business days to complete after initiating a sell or withdrawal. Coinbase will deduct the balance from your source of funds and begin the bank transfer immediately.

6. What is the Coinbase withdrawal limit?

Ans: The Coinbase withdrawal limit is $50,000 per day. Withdrawals of both cryptocurrency and fiat currency are limited. This amount applies across all currencies (for example, you can withdraw up to $50,000 worth of ETH per day).

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