There are several great cryptocurrency apps on the market. To choose the best exchange for crypto, you'll need to decide which crypto features matter most to you.
Security is a major issue for cryptocurrency investors because crypto assets don't have the same protections as equities in a brokerage account or cash in a bank. If your crypto platform fails, you could lose the assets deposited there. It's important to use a reputable exchange or broker and to look at the crypto exchange's security features.
Different types of cryptocurrency available
There are over 2.4 million cryptocurrencies, but even big exchanges only offer 30 to 400 coins. Many cryptocurrency investors only want to buy Bitcoin and one or two other major currencies. However, if you plan to invest in some of the smaller coins, you'll need an exchange that has more variety.
Crypto staking fees and crypto coin interest
Some cryptocurrency exchanges offer ways to earn interest on your coins. When it comes to platform staking fees and interest, make sure you understand and are comfortable with how the interest is generated. The exchange may loan out your money, or it may pay you staking fees if you commit to leaving your coins alone for a set period.
Be aware that these interest-paying options can carry risks, and may put your assets at risk. The SEC argues that platforms involved in lending or staking crypto assets may be subject to the federal securities laws. As a result, several U.S. crypto platforms have already withdrawn these products.
Crypto trading fees
Fees can really eat into your profits, especially if you trade regularly. Here are some crypto platform and broker trading fees to watch out for:
- Trading fees: Fees vary depending on the exchange and type of trade. You can expect to pay between 0.1% and 1% or more per trade. Fees are usually lower if you trade high volumes or use the advanced platforms.
- Deposit fees: A lot of the best crypto trading apps let you transfer money from your bank account for free. But it is worth checking for crypto transaction fees, as some will charge 1.5% or more, especially if you use a debit card. If you want to pay by credit card, be aware that you're likely to get charged at least 3.5% and your bank may also treat it as a cash advance.
- Withdrawal fees: You can't currently withdraw your digital assets from many traditional brokerages that are trading cryptocurrencies. The exchanges usually charge a set fee depending on the currency you want to withdraw.
Crypto app transaction options
Before you open an account, make sure the platform offers all the transaction types you may need. Find out how much it costs to deposit, withdraw, and trade before you open an account. It's also worth checking the withdrawal and deposit options to make sure they work for you.
Crypto app customer support
24/7 customer service transaction support is a must if you're new to cryptocurrency investing. Nobody wants to wade through pages of FAQs to get help because money hasn't arrived in their account.
Crypto app features and ease of usability
Make sure the app has the features you want to use, and if you've never traded before, pick one that is beginner-friendly.
- Ease of use: Cryptocurrency apps have developed rapidly as more people want to invest. However, at times that fast development has come at the cost of user-friendliness.
- Crypto knowledge: Cryptocurrencies are a relatively new kind of investment, so the more you can learn, the better. Some apps include cryptocurrency learning centers, as well as information on specific coins.
