The Best Places to Trade Crypto that Aren’t Coinbase.
Cryptocurrency is in its infancy and the Coinbase sign up bonus makes it enticing to refer your friends. While Coinbase is one of the leading exchanges in the world, savvy users continue to be on the hunt for the best alternatives to Coinbase for 2020 and beyond.
- Do your research on Coinbase alternatives
- Why you need alternatives to Coinbase
- Minimizing risk by diversifying your cryptocurrency exchange wallets
- What to remember when holding cryptocurrency
- Treating your cryptocurrency operation like a business
- Best Coinbase alternatives
- The verdict
This is no financial advise, all the content and the ideas present in this page and all the other pages of the website do not guarantee financial success and may lead to a loss of your money. You should always do your own due diligence before trading or seek professional advise.
Some of the links available in this page may generate a commission for the author.
Do Your Research on Coinbase Alternatives
Coinbase shouldn’t be your de-facto source for trading crypto. While Coinbase instantly provides you with access to the main cryptocurrencies, Coinbase is notorious for not having features that other emerging cryptocurrency exchanges are able to offer.
If you’re looking to buy Ripple, Bitcoin or another type of cryptocurrency, you may want to evaluate your options so that you gain the benefits of using one of the other up-and-coming trading platforms.
Why You Need Alternatives to Coinbase
Seasoned traders suggest you should never use one platform exclusively. Back in 2017, Coinbase experienced a flash crash where the price of Ethereum dropped from $319 to 10 cents in just a matter of minutes.
While Coinbase did the right thing and repaid over $27 million to traders who were negatively impacted, those who had crypto stored on the platform went into a collective panic. Everyone tried to login at the same time and it caused the platform to become unresponsive and periodically unavailable.
Not cool bro, not cool at all.
This story perfectly illustrates why you should look at alternatives to Coinbase. Despite the fact that Coinbase did the right thing and earned the trust of the cryptocurrency world, they didn’t have to pay the users back.
Minimizing Risk by Diversifying Your Cryptocurrency Exchange Wallets
This is important to note because if your investment is negatively impacted by a trading platform, you most likely won’t be made whole. In fact, Coinbase’s TOS has the exact verbiage listed in it saying that they didn’t have to pay anyone back.
If you have a significant amount of money on one site, a black swan event can wipe you out. That’s why you should consider using various platforms to buy, sell and trade cryptocurrencies.
Why you need diversifying your portfolio
- Cryptocurrency is still a jungle and you always ned to thoroughly research where you are putting your money.
- All your eggs in one basket are never a good idea, hence you need alternatives to Coinbase
- Multiple wallets will provide you with more opportunities (more in the next skim).
What to Remember when Holding Cryptocurrency
Having access to liquidity is the most important factor of speculating on cryptocurrency. If you aren’t able to easily turn your crypto into cash, what’s the point in even holding it?
It’s just numbers on a screen at that point.
When you need to make a transaction, having access to multiple cryptocurrency trading platforms will give you an edge over other traders.
Consider the fact that you might one day be tasked with buying or selling a large amount of crypto; wouldn’t it be easier to do so using multiple exchanges?
The added benefit is that you won’t be restricted to transaction limits of just being a member on one site. If you had crypto on 5 different exchanges and the daily transaction limit is $10,000, well, you can then make $50,000 in transactions versus being limited to just $10,000.
That’s an extreme example but if you’re ready to build up your cryptocurrency empire, these are some important things to think about.
Treating Your Cryptocurrency Operation Like a Business
Those who run publicly traded companies have one mission: Increase shareholder value.
If you treat your cryptocurrency hobby like a business, your number one mission should be to make money because essentially, you are the shareholder.
When you think about trading crypto in these terms, you see it from a whole new perspective. You don’t get excited about the ups and downs, you only care about one thing: A positive return on investment.
While there is an on-going battle on whether or not cryptocurrency is a security, don’t get involved with the politics of crypto. Simply focus on making money.
While we’ve discussed some pretty important reasons as to why you should look at Coinbase alternatives, you and your friends can get $10 for free when you take advantage of the Coinbase sign up bonus. Despite the fact that you can get free money from Coinbase, friends should never let friends trade on one single platform.
Remember to treat your investments like a business
- Even if things will change over time, at the moment there is no point to keeping your crypto assets in your wallets if they don’t generate money.
- Remember to ALWAYS treat your crypto investments like a business!
Best Coinbase alternatives
Here is a list of trustworthy exchanges that let you easily buy and sell cryptocurrencies like Ripple, Ethereum, and Bitcoin:
- Create your account
- Get verified for purchases
- Place your order
Pros of CoinMama
CoinMama has made it simple and easy for you to buy, sell or trade cryptocurrencies like Ripple from your desktop or mobile device. If you are comfortable using Coinbase, you’ll have no problem using CoinMama.
Cons of CoinMama
You will likely be required to submit a government ID, along with a photo of yourself holding a sign that says CoinMama in order to complete verification. This is a standard practice for trading platforms that follow the Know Your Customer (KYC) protocols but it can be annoying to jump through these hoops if you simply want to buy and sell crypto.
CoinMama trustworthy platform has stood the test of time and you should consider using it as an alternative to Coinbase when seeking to diversify your cryptocurrency trading platforms.
Pros of LocalBitcoins
The obvious advantages of this platform are:
- Instant liquidity
- Connect with others
The main drivers for using LocalBitcoins continues to be the ability to gain access to liquidity instantly by syncing up with others who are buying and selling Bitcoins.
If you are buying Bitcoin, you must adhere to the seller’s rules. If you are selling Bitcoin, you can create your own set of rules. LocalBitcoins even gives you the ability to sell Bitcoins and receive the funds directly using money transfer services or by using reloadable debit cards.
Cons of LocalBitcoins
If you look at the prices of Bitcoins being listed on LocalBitcoins, you’ll quickly realize that LocalBitcoins gives traders the ability to set whatever price they want.
This allows some traders to charge a massive premium over the spot price. While you’ll be able to trade for crypto directly using cash, you should expect to pay a premium for doing so.
Pros of CEX
- Competitive trading fees
- Advanced reporting services
- Legal compliance
- Margin trading
Cons of CEX
While the platform is powerful, there certainly is a learning curve for those who aren’t used to having access to these types of tools. CEX is built for advanced traders and while it can be used for casual traders, you get the most out of CEX by taking advantage of its API interface.
Pros of Kucoin
- Large variety of assets to trade
- Access to KCS, the exchange’s own utility coin
- The ability to use 100x leverage
- Various promotions that encourage using the platform.
Cons of Kucoin
Kucoin has stood the test of time and it should be strongly considered when looking for other cryptocurrency trading platforms.
That being said, Kucoin has a tendency to be slow when going from page to page. Some of its altcoins have low trading volume which isn’t conducive to achieving the goal of finding an exchange that has ample liquidity.
Pros of Paxful
Paxful lets you trade crypto for:
- Gift cards
Being able to use currencies like Ripple to barter for goods and services put you in a much stronger position. Paxful says that it will allow its users to trade crypto for consumer goods such as groceries, appliances and other types of everyday necessities.
Cons of Paxful
The platform is still emerging and many of the features aren’t active. For example, Paxful’s marketplace is still in its infancy and it’s unclear as to when you’ll be able to trade crypto for good and services. Paxful has made good on all of its promises so far, so there is no reason to think that this marketplace won’t be available soon.
LiteBit provides users with a powerful trading platform that you can quickly execute trades in a safe and regulated environment. LiteBit has hundreds of thousands of active users and it is home to over 50 different cryptocurrencies.
LiteBit provides flexibility, liquidity and security.
Pros of LiteBit
- Using your own wallets
- Fast customer support
- Intuitive mobile device app
- A variety of currencies choices
LiteBit has received several awards for customer service and the exchange is highly rated by the vast majority of users. This alone sets LiteBit apart from the competition. LiteBit is zippy and responsive and gives you the ability to retain your own wallet keys.
Cons of LiteBit
Its headquarters is located in the Netherlands and for users in the Western Hemisphere, this could be a problem. While LiteBit has never had a problem with liquidity, you should evaluate your own personal risk tolerance in terms of using an overseas exchange. That being said, LiteBit seems to accept customers from the US and Canada.
- LiteBit offers a regulated environment with hundreds of thousands of active users.
- LiteBit provides flexibility, liquidity, security, and fast customer support.
- Being based in the Netherlands it may be an issue with overseas countries.
Pros of CoinTree
- An ETF-like approach to crypto
- Highly touted in Australia
- Over 1.7M Australian traders
- The ability to create your own portfolio
- Ability to sharing your portfolio with others
Outside of these positives, you can still buy and sell crypto like any other exchange. CoinTree currently has over 100 trading pairs available to buy and sell and it is available to US based traders.
Cons of CoinTree
- Some may not like the “ETF” approach
- Credit card purchases are not allowed
- Some features may not be available to Americans
Overall, CoinTree has a low network fee and it has obtained several industry recognized certifications in Australia making it a safe and competitive place to trade your choice of over 100 cryptocurrencies. CoinTree passes the smell test and it certainly has an interesting and unique approach to crypto.
- CoinTree offers pre-created portfolios with the attempt to diversifying and reducing risks.
- Highly touted in Australia
- Credit card purchases are not allowed.
- Poor customer service (in my personal experience).
The best Coinbase alternative
There really isn’t a “Best” alternative to Coinbase because each exchange listed above has its own quirks that make it special.
You really must do your own research and figure out which exchange meets your key objectives. As I’ve stressed, ample liquidity is one of the keys to your cryptocurrency success. Afterall, if you never cash in your crypto, what good will it do you?
Each exchange has its own pros and cons but if you stuck a gun to my head and asked me to say which is the best exchange to buy cryptocurrency that isn’t Coinbase, the immediate answer would be Coinmama. Why?
The learning curve isn’t too steep and you can buy crypto with your credit card as long as you’re willing to jump through a few hoops. Coinmama appears to have ample liquidity and is a website that has stood the test of time.
It’s never a bad idea to sign up for more than one exchange to continue trading cryptocurrency as this will only give you additional peace of mind.