Digital currency exchange is a medium to trade and store cryptocurrencies. These exchange
mediums come with some fee. Coinbase charges an initial rate of 4% for all the
transactions in the US. Each exchange platform supports different varieties of cryptocurrencies.
Coinbase supports Bitcoin, Bitcoin Cash, Litecoin and Ether.
Coinbase is one of the largest exchanges of Bitcoin. It provides many advantages to its users. But, since it became a leading exchange of Bitcoin, it has started to act like traditional banks. So, many of its users began finding alternatives to Coinbase. Also, Coinbase has higher fees as compared to other exchange platforms.
While serving customers, Coinbase came with other issues. It started to combine its business with traditional banking laws and act on the base of the traditional financial system. So, if you are willing to open an account on Coinbase, you will need to provide a lot of your personal information. US Government formally approved Coinbase. So, its user’s account is monitored continuously. Accounts of users who used Bitcoin for illegal activities such as gambling, paying adult services, gaming, buying or selling illegal products, resale of coins, etc. got frozen. So, after all, such changes and higher fees by Coinbase, people are moving to the alternatives.
Some of the best alternatives are:
Gemini is one of the best alternatives concerning exchange fees. Gemini has meager fees as
compared to Coinbase. It is a New-York based online exchange platform that operates with
individuals and business clients. It is reachable in 26 states of the US and DC.
Binance is a new China-based exchange platform supporting multiple cryptocurrencies. It is
very popular for its ICOs (Initial Coin Offerings), which helps you to get into the new
cryptocurrencies before others. So, the company supports both the smaller cryptocurrencies
and the big ones.
It also offers reasonable fees along with two-factor authentication for security purposes. It is
also available for Android and iOS. For iOS, you need to download it through Safari, as it is not
available on the App Store directly.
• Kraken is an online exchange platform which was founded in 2011. It supports the digital as
well some traditional currencies. For digital currencies, it supports Bitcoin, Ether, Augur REP
tokens, Zcash, Litecoin, Ripple, etc. Foconventionalal currencies, it supports the US Dollar, British Pound, Japanese Yen, Euro, and the Canadian Dollar.
Kraken comes with some advanced trading options. Also, it offers an iOS app, but it is limited
to some features. For beginners, these advanced trading features are optional, but it comes with minimal withdrawal charges. So, Kraken proves to an excellent alternative to Coinbase.
Bitsquare focuses on anonymity and financial privacy. It provides a secure platform for
anonymous transactions and is reasonable in fees and other costs of Bitcoin trade.
LocalBitcoins is a unique platform that allows you to connect with people in your area looking
for trading the original cryptocurrency. After setting up a transfer with anyone in LocalBitcoins, you can proceed with PayPal, Square, or direct bank transfer.
It provides free service. But, it costs 1% charges on any trades advertised on the site. Sellers
are allowed to add their extra fees if they want. So, it is beneficial for trading. But, there is a
risk as you are directly interacting with buyers and sellers without an intermediary exchange. The site displays ratings of each user publicly based on their reputation. LocalBitcoins is limited to Bitcoin.
Coinbase is one of the most common exchanges for most of the newcomers to the Bitcoin
network. It is one of the first Bitcoin exchanges. But, if you are experienced in the network,
many alternatives to the Coinbase are worth considering as it comes with different advantages
over the Coinbase.