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Adding cryptocurrency (crypto) to your investment portfolio is becoming increasingly popular. To be able to buy and sell cryptocurrencies like Bitcoin, Ethereum and other digital currencies in cryptocurrency markets, you'll need to decide which type of crypto trading platform is best for you.
Check out our expert picks for some of the best cryptocurrency exchanges for 2024. These include the best online crypto exchanges, brokers, and apps you can use to start building your own cryptocurrency portfolio today.
Bottom Line
Offers a nice range of cryptocurrencies and a simple-to-use app experience. Available in all 50 U.S. states, Gemini has a reputation for security and accessibility for new crypto investors.
Fees:
$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)
Account Minimum:
$0
Bottom Line
Coinbase shines with its vast array of cryptocurrencies available. There's also an advanced trading platform for serious cryptocurrency enthusiasts. Plus, you can earn some free cryptocurrencies if you're willing to take some educational courses.
Fees:
Variable fees (Coinbase), 0%-0.80% (Coinbase Advanced Trade), $29.99 monthly (Coinbase One)
Account Minimum:
$2
Bottom Line
Stands out for its competitively low fees, cryptocurrency selection, and trading platform. But its customer service ratings are low and warrant reviewing before signing up.
Fees:
0.0% - 0.40% maker-taker fees (Kraken Pro)
Account Minimum:
Varies by cryptocurrency
Bottom Line
Among the best apps to buy cryptocurrencies and traditional investments like stocks and options under one roof. It has wide array of popular cryptocurrencies and gives immediate access to deposits. Plus, cryptocurrency trading on Robinhood is 100% commission free.
Fees:
$0 for stocks, ETFs, options, and cryptocurrencies
Account Minimum:
$0
Limitations Apply
Bottom Line
eToro has a good selection cryptocurrencies on its platform. It also offers some unique offerings, such as social network-like commentating capabilities and the ability to follow and match the investments of other cryptocurrency traders.
Fees:
1% for trading crypto plus spread, $0 commission for stocks & ETFs
Account Minimum:
$10
Special Offer
Limited time offer: Deposit $100 and get a $10 bonus. Terms apply.
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Bottom Line
Square's Cash App only offers Bitcoin. But it could be a smart choice for people who only want to buy, sell, and hold the leading cryptocurrency. Plus, the popular finance app has some other great features, such as stock trading and person-to-person payments.
Fees:
$0 for stocks, fees vary for cryptocurrencies
Account Minimum:
$0
TIP
Investing in crypto can be extremely risky. We think investors should approach these assets like any other technological investment — with a long-term mindset and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend select cryptocurrencies to our community. But we encourage everyone to be well versed prior to investing to understand the potential risks and rewards.
Cryptocurrency exchanges allow users to buy and sell digital currencies. Users may also be able to do the following through the exchange's platform (not an exhaustive list):
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.
There are over 25,000 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.
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.
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:
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.
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.
Make sure the app has the features you want to use, and if you've never traded before, pick one that is beginner-friendly.
Reputable cryptocurrency apps take security seriously and are safe to use. Two of the best options in terms of safety are Gemini Exchange and Coinbase, which are known for employing industry-leading security measures. Even so, know that cryptocurrency platforms don't have the same investor protections as other investment types such as stock investments or cash in the bank.
If you're trying to figure out whether a specific cryptocurrency app is safe, research the security features it offers and check if it has been hacked before. Look to see if it carries out a third-party audit of its reserves. The most secure crypto apps use two-factor authentication (2FA), keep the majority of customer funds offline in cold storage, and have bug bounty programs.
The best cryptocurrency app for beginners is Coinbase. It has a user-friendly design that makes it easy to buy and sell crypto, a wide selection of coins, and modules with educational content. Coinbase even rewards you with free crypto when you complete its educational modules.
Offer | Best For | Commissions | Next Steps | |
---|---|---|---|---|
|
Investing simplicity and high interest rates |
$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader) |
||
|
Trading platform and crypto selection |
Variable fees (Coinbase), 0%-0.80% (Coinbase Advanced Trade), $29.99 monthly (Coinbase One) |
||
|
Advanced trading tools |
0.0% - 0.40% maker-taker fees (Kraken Pro) |
||
|
Diversified investing needs |
$0 for stocks, ETFs, options, and cryptocurrencies |
Open Account for Robinhood
Limitations Apply |
|
|
Finding new cryptocurrency investing strategies |
1% for trading crypto plus spread, $0 commission for stocks & ETFs |
Open Account for eToro
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. |
|
![]() Cash App Investing |
|
Investing and peer-to-peer payment |
$0 for stocks, fees vary for cryptocurrencies |
Hailey Lennon
Partner at Anderson Kill
What should you know before buying cryptocurrency?
You do not need to buy a whole Bitcoin or any cryptocurrency; you may make fractional purchases. For example, you can buy $10 worth of Bitcoin regardless of the price.
Most exchanges also allow you to do auto-buys so that you can have an automated purchase each week or month. This allows you to dollar-cost average given how volatile cryptocurrencies can be and not buy a large sum all at one.
There are also ways to earn free Bitcoin. For example, rewards platform Lolli offers Bitcoin back on online purchases.
How do you buy cryptocurrency?
Through a regulated exchange. I recommend exchanges that have state money transmitter licenses and the NY Bitlicense or other state or Federal licenses/charters, including, but not limited to, Gemini, Kraken, or Square.
How is cryptocurrency taxed?
Cryptocurrency is taxed as property, and as such, any profits will be taxed as capital gains. Capital gains occur when a person sells their cryptocurrency for dollars or another cryptocurrency and makes a profit.
TIP
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If you're wondering where to buy cryptocurrency, you have several options.
The best places to buy cryptocurrency can generally be separated into two main baskets:
What about person to person (P2P crypto exchanges)? It's also possible to buy cryptocurrencies directly from other people, though that can get a little complicated. This used to be far more popular in the early days of Bitcoin.
A cryptocurrency exchange is a company that facilitates cryptocurrency transactions. A cryptocurrency exchange facilitates the purchase and sale of cryptocurrencies only.
By definition, a broker is an intermediary between two parties. It typically involves a financial transaction. For example, a real estate broker facilitates transactions between buyers and sellers of real estate.
So, technically speaking, cryptocurrency exchanges can be considered brokers. However, as we discussed above, a crypto broker is a type of investment platform. And brokerages that offer cryptocurrency trading alongside other investments, like stocks and bonds, might allow users to buy and sell cryptocurrencies as well as stocks, mutual funds, and other types of investments.
The best Bitcoin trading app depends on your personal needs, and there are many good apps on the market. Before you download an app, think about everything you want it to do. For example, if you want to buy and hold Bitcoin, your needs are different from those of a person who plans to build up a diverse portfolio of coins. Cash App Investing makes it easy to buy, sell, or send Bitcoin and could be a good option for first time investors. Gemini Exchange stands out as one of the best cryptocurrency trading apps because you can do more than just buy Bitcoin.
Learn more: Best Places to Buy Bitcoin in 2024
Check out our expert picks above for some of the best cryptocurrency exchanges
The cost to buy and sell cryptocurrencies depends on the platform. Some charge a percentage of each transaction as a "markup." Others simply make their money on the spreads between a bid and ask price. Either way, the cost of trading is one of the main points to compare between the different brokers and exchanges. Read more about cryptocurrency transaction fees.
Several popular cryptocurrency apps have hundreds of available cryptos. For example, Crypto.com has one of the largest lists of cryptocurrencies available for U.S. traders to buy and sell. Coinbase and Gemini also have a wide range of cryptos.
Some decentralized exchanges, including Uniswap, SushiSwap, and PancakeSwap, have much larger selections with thousands of different cryptocurrencies. However, they don't allow you to buy crypto using fiat money and can involve a steep learning curve. You can only trade cryptocurrencies on these exchanges, which means you need to already have your own cryptocurrency ready to trade.
It depends. There are more than 25,000 (not a typo) different cryptocurrencies in existence, and some are far more legit than others. Most investors should stick to Bitcoin and other large, established digital currencies. Avoid the newer and smaller varieties.
Cryptocurrency wallets are a safe way to store your digital assets. Consider opening one if you plan to amass large amounts of crypto assets, want to spend your crypto easily, or are worried about platform failure.
Some of the best exchanges for cryptocurrency have built-in wallets. Like any good exchange, each lets you transfer your currency to an external wallet as well, though you may have to pay a withdrawal fee. You may have to find a wallet that is compatible with your exchange.
Our Cryptocurrency Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Robinhood disclosure
This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and Publisher, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. Publisher is not a member of FINRA or SIPC.
Robinhood Crypto disclosure
This advertisement contains information and materials provided by Robinhood Financial LLC, Robinhood Securities LLC and its affiliates (“Robinhood”) and Publisher, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC, a member of FINRA and SIPC and a wholly-owned subsidiary of Robinhood Markets, Inc. Cryptocurrency trading offered through Robinhood Crypto LLC. Robinhood Crypto and Publisher are not a members of FINRA or SIPC and cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC insurance.