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Best Crypto Exchanges For Beginners in 2022

Conor Scott, CFA| Updated December 6th, 2022
best crypto exchange beginners

Best Crypto Exchanges for Beginners

A crypto exchange operates like a traditional online brokerage by providing a seamless trading experience with the tools necessary to trade Bitcoin, Ethereum, Solana, and more. The best crypto exchange(s) for beginners tends to focus on simplicity, security, and the right tools for active trading without overloading the users. However, regulation is generally lighter than that seen for traditional online brokerages. 

Yet there are hundreds of crypto exchanges available in the global market today, owing to crypto’s incredible rise in market capitalization – from $1 billion in 2013 to $3 trillion in 2021. Choosing the correct or best crypto exchange for beginners feels like a virtually impossible challenge. 

We’ve identified seven vital factors to consider in choosing your next crypto exchange. This article delves into our top four picks, and why. Let’s get to it.

The Best Crypto Exchanges for Beginners

eToro | Best for Social Trading

eToro leads the global marketplace for crypto exchanges in terms of social trading and for those wanting to blend traditional equities and ETFs with a respectable range of cryptocurrencies.

Coinbase | Best for Beginners

Beginners especially, appreciate Coinbase’s user-friendly and streamlined trading interface. It offers 150 cryptocurrencies alongside educational tools and strong security measures. It represents the traditional gateway into cryptocurrency.

Binance | Best for low fees

Most experienced and beginner crypto investors know Binance for at least one reason: it’s the largest crypto exchange in the world by trading volume. Its fees can drop to as low as 0.10%, while offering over 120 cryptocurrencies.

Crypto.com | Best for Security 

Crypto.com leads in terms of security, having secured the #1 ranking from CERtified’s list covering the top 100 crypto exchanges. The platform also offers over 250 cryptocurrencies and a simplified trading interface.

The Best Crypto Exchanges for Beginners Reviewed

1# eToro

Best Crypto Exchanges For Beginners in 2022 1
Visit eToro
79% of retail CFD accounts lose money.

eToro at a glance

Number of Cryptocurrencies60+
Minimum Deposit$10 (it varies between countries)
RegulatorsCySEC, FCA, ASIC
CER rankN/A
Fees1%

eToro earns the top spot on our list covering the best crypto exchange for beginners as it capitalizes on popular cryptocurrencies, facilitates social trading, offers great educational content, and provides the option to include equity or ETF investing. Social trading refers to the practice of following or automatically copying the trades of other investors. 

Most beginner crypto investors do not yet require advanced trading tools and alerts, although these later become invaluable. Instead, educational content remains paramount, alongside access to the leading cryptocurrencies by market capitalization

The following additional features are also key factors in our list covering the best crypto exchange for beginners: 

  • Various staking options, such was with Cardano, Tron, or Ethereum
  • Customer service options including email, live chat, or phone
  • A free virtual portfolio of $100,000 for practicing
  • An option to invest in and learn from “CopyPortfolios” 
  • An accessible mobile trading app

For those unfamiliar, staking operates like a locked deposit. A user deposits their cryptocurrency with an exchange, which then routes the same to a protocol to earn rewards. Most often, staked cryptocurrencies help those underlying blockchains using a “proof of stake” protocol. 

Interested? Please read our comprehensive review on eToro.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2# Coinbase

Best Crypto Exchanges For Beginners in 2022 2
Visit Coinbase

Coinbase at a glance

Number of Cryptocurrencies150+
Minimum Deposit$50
RegulatorsNew York State Department of Financial Services, FCA*
CER rank7 (of 100)
Fees0.50 - 1.50% (3.99% for credit card purchases)

Coinbase earns the runner-up spot on our list covering the best crypto exchange for beginners as it focuses on simplicity, security, and similarly strong educational content. For this reason it touts more than 80 million users, traditionally being referred to as “the” crypto exchange. 

However, Coinbase Pro or Advanced Trade cater to the full-time traders or beginners wanting to make a career out of cryptocurrency trading. They offer technical charting tools, biometric security, mobile apps, and staking and DeFi rewards

The following additional features are also key factors in our list covering the best crypto exchange for beginners: 

  • Various staking options, including altcoins or DeFi
  • Customer service options including email, live chat, or phone
  • Streamlined and highly accessible mobile trading apps

*Coinbase is licensed to engage in money transmission and is not licensed as a broker. This means that U.S. dollars, or other fiat currencies, may not be covered in the event of the platform’s bankruptcy. Cryptocurrencies are not covered. 

3# Binance

Binance Logo
Visit Binance

Binance at a glance

Number of Cryptocurrencies360+
Minimum Deposit$10
RegulatorsAMF*
CER rank5 (of 100)
Fees0.10% and 0.50%

Binance earns the third spot on our list covering the best crypto exchange for beginners as it focuses on lower fees, security and cryptocurrency selection, while lacking in customer service reviews. Binance leads the world in terms of trading volume and liquidity. 

We admire the platform’s commitment to low fees, with “regular users” paying as little as 0.10% for spot trades and certain “VIP” traders 0.04%. In addition, they offer advanced trading tools, futures, and loans secured by crypto assets. 

However, Binance’s focus on features leads some to call it overwhelming or complex. While it’s a great platform for veterans, this is not the best pick for a beginner, unless you want to explore altcoins, DeFi, and NFTs (non-fungible tokens). 

The following additional features are also key factors in our list covering the best crypto exchange for beginners: 

  • Many staking options
  • Advanced derivative trading
  • Customer service through email or live chat (phone not available)
  • A free virtual portfolio
  • An accessible mobile trading app

*Binance is licensed to engage in money transmission and is not licensed as a broker. This means that U.S. dollars, or other fiat currencies, may not be covered in the event of the platform’s bankruptcy. Cryptocurrencies are not covered.

4# Crypto.com

Crypto.com_logo
Visit Crypto.com

Crypto.com at a glance

Number of Cryptocurrencies250+
Minimum Deposit$20
RegulatorsMFSA*
CER rank1 (of 100)
Fees0.04 - 0.40% (2.99% for credit card purchases)

Crypto.com earns the final spot on our list covering the best crypto exchange for beginners as it also focuses on lower fees, security and cryptocurrency-related financial products, while tailoring itself towards experienced traders who want to do more with crypto. There is also no phone support. 

Crypto.com’s fees feel impressively low. Higher-volume traders benefit from fees declining towards 0.1% while operating as a “taker” (placing an order for immediate execution). And to supplement this call for more volume, the platform doubles down on security. 

It works with local banks in the U.S. to provide FDIC insurance on U.S. dollar balances while globally championing a robust compliance effort. It stores customer deposits offline in cold storage and uses multi-factor authentications, including biometric. Within the arena of the best crypto apps for beginners, it understands most the risk of cyber hacking and employs multiple methods to keep your crypto or fiat assets safe. 

The following additional features are also key factors in our list covering the best crypto exchange for beginners: 

  • Many staking options
  • Advanced derivative trading and NFTs
  • Metal visa cards 
  • Customer service through email or live chat (phone not available)
  • An accessible mobile trading app

*Crypto.com is licensed to engage in money transmission and is not licensed as a broker. U.S. dollars are covered through a partnership with Metropolitan Commercial Bank. Other fiat currencies may not be covered in the event of the platform’s bankruptcy. Cryptocurrencies are not covered. 

Methology

In addition to regulation, there are seven key factors we analyzed in assigning our ratings for the best crypto exchange for beginners:

  1. Available coins. Beginners won’t need long before feeling the call to explore altcoins, or alternative coins not one of the major cryptocurrencies. At least 50 coins in total is desired by investors for a “best” exchange. 
  2. Security. Offline (cold) storage and regulation remain paramount. A successful hack comes to little if most of the exchange’s assets are unreachable. 
  3. Fees. The volatility of cryptocurrency investing lends itself towards active trading. Higher fees eat profits. 
  4. Customer service. Despite the advances made in machine learning and chatbots, only a human on the phone truly understands context. 
  5. Education. Beginners should always read on the basics of cryptocurrency investing as much as possible. If an exchange lacks this, it’s likely for advanced users. 
  6. Staking. Crypto holdings should always be “staked” or deposited when not needed for short-term trading. 
  7. Trading features. Technical investing is arguably easy to learn. The best crypto platform for beginners understands the need to include intermediate-level tools.

The bottom line

To sum it up, these are our top picks:

Best Crypto Exchanges for Beginners

#1 eToro Best for Social Trading
#2 Coinbase Best for Beginners
#3 Binance Best for Low Fees
#4 Crypto.com Best for Security

Selecting the best crypto exchange or your first crypto trading app is always going to be a difficult choice, given the rapid rise of the sector. Even here, we’ve narrowed down the selection to four choices as opposed to one. 

Each crypto exchange excels at one edge over the other, like traditional brokerage. Want maximum security? Crypto.com. Prefer to learn from others? eToro. Take the time to explore these exchanges and do your own due diligence. Crypto will be around for years to come.

Other FAQs

What is a crypto exchange? How does it work?

A crypto exchange is an online platform enabling you to trade cryptocurrencies for other cryptocurrencies, or for fiat cash. They also tend to provide access to NFTs and coins related to DeFi (decentralized finance). The best crypto exchange for beginners will include all major cryptocurrencies and offer some access into DeFi. 

These platforms function as intermediaries between buyers and sellers. Often, they are centralized like traditional stock exchanges. In certain instances, they are decentralized, using blockchain technology to facilitate transactions. 

How do you open a cryptocurrency exchange account?

Almost all well-known cryptocurrency exchanges will offer a completely online process. Be sure to have your official ID, bank account, and possibly proof of address (scanned) available. Each exchange will have a different set of exact requirements, but will likely ask for these items.

How do you buy crypto?

The best crypto trading platforms for beginners enable you to buy any cryptocurrency with a limited number of clicks, whether on the desktop or mobile app. Their interfaces will be streamlined and intuitive.

How much money do you need to buy crypto?

While slightly more than for traditional equities, you can get started with as little as $10 or €10.

What are the risks in buying, trading and selling crypto?

Cryptocurrencies do not move like traditional equities, ETFs or bonds. They are highly volatile. They may trade due to sentiment, held beliefs, popularity, or as a result of Federal Reserve decisions or on the performances of their underlying blockchain protocols. Please conduct your due diligence before investing in crypto.

What are the main differences between investing in crypto and investing in stocks?

Stocks tend to follow the traditional patterns of the economy, representing shares of companies. Ben Graham-style investing fundamentals often apply, as investors should scrutinize companies, their financials, and their sectors within the context of the global economy. Cryptocurrencies generally lack accounting financials such as income statements, and may trade according to a variety of factors.

Conor Scott, CFA
Contributor

Conor is a CFA charterholder who has been active in the wealth management industry since 2012, continuously researching the latest developments affecting portfolio management and cryptocurrency.

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