Investing in Bitcoin is all the rage however, how exactly does a novice get started?
Do you need to already have Bitcoin to invest?
Or do you transfer cash from your bank account to someplace and convert it to Bitcoin? What does that look like?
We’ll reply all of these questions and list 10 of the best cryptocurrency exchanges and platforms that enable you to purchase Bitcoin and other tokens.
Going forward, we’ll use BTC, which is the symbol for Bitcoin on exchanges and trading platforms.
If you simply want to earn a good return with crypto, you might consider a crypto financial savings account. These accounts pay up to 12%, however they do come with risks (just like everyday crypto investing). Check out the exceptional cryptocurrency financial savings accounts here.
Best Cryptocurrency Exchanges and Investing Platforms
Check out our list of the 10 best cryptocurrency exchanges and investment or trading platforms. The cyrpto offers that appear on this site are from corporations from which The College Investor receives compensation. This compensation may affect how and where products appear on this web site (including, for example, the order in which they appear). The College Investor does not consist of all cryptocurrency exchanges or all crypto provides available in the marketplace.
1. Coinbase
Coinbase is by far the most famous and one of the best cryptocurrency exchanges because you can invest directly with USD. You can currently purchase Bitcoin, Ethereum, and Litecoin and 30+ different coins and tokens on the platform. Furthermore, you can earn interest on your USDT, and you can earn token rewards by completing various activities.
Plus, when you open a Coinbase account, you get a $5 bonus!
Pros
- Easiest to use interface
- Good selection of tokens and coins to make investments in
- High level of security and trustworthiness
Cons
- High charges unless using Coinbase Pro
- User does not manipulate private keys in wallet
- Slow to adopt popular new cryptocurrencies
2. Voyager
Voyager is a famous platform to make investments in crypto as it was one of the first publicly traded exchanges. They are app-driven and provide a commission-free trading structure.
Voyager helps most major cryptocurrencies, has solid support and engagement, and pays competitive interest rates on assets.
Plus, when you open a Voyager account, you can earn $25 in BTC after trading $100 in crypto.
Pros
- Very effortless to use app-based interface
- Commission-free trading structure
- Voyager provides stable interest rates
Cons
- Slow withdrawals (can take upwards of 1 day)
- Not accessible in New York (yet)
3. BlockFi
BlockFi is a cryptocurrency investment platform that permits you to lend and earn interest on your holdings. Also, instead of selling your coins and tokens, you can additionally borrow against your holdings.
If you are only searching to hold your tokens, you can additionally just let them earn interest for you.
Pros
- No commissions and fees
- US-Based and regulated
- Earn high interest on deposits
Cons
- Doesn’t accept many tokens and coins
- Limited free withdrawals
4. Uphold
Uphold provides simple solution to trading more than one assets, open one account and trade more than one assets besides making a trip back to cash. If you’ve ever traded crypto, you’ll know a lot of cash and tokens only trade in certain pairs, so you’re always going back to BTC or ETH. But on Uphold, you can trade multiple assets directly.
Plus, Uphold is one of the few exchanges that permits you to trade XRP, DOGE, and more.
Pros
- Simple and transparent pricing structure
- Lot’s of crypto tokens and even some stocks, such as popular ones like XRP
- Both desktop and mobile apps
Cons
- Not as handy to use as some on this list
- Some reviews of poor customer service
5. Kraken
Kraken is one of the original crypto trading systems and they have a good choice of coins and tokens to change and make investments in. They additionally enable margin trading. However, it is a real exchange, and not as easy to use as some of the top platforms on this list.
Kraken is one of the few platforms on this listing that enable you to trade in DOGE and other, more risky, tokens.
Note: Kraken offers a limited section of cash and tokens to US customers versus international customers.
Pros
- One of the longest running crypto exchanges
- High degree of protection and trust
- Large range of crypto and tokens to trade
Cons
- One of the most difficult platforms to use
- Difficulty with 2FA
- Some reviews of poor customer service
6. eToro
eToro has been around for a while in the UK and everywhere in Europe, however they are now allowing traders in the United States. They provide a massive variety of digital assets to buy and sell on their platform, and even better, they have a practice trading account so you can give it a try before you want to use real funds.
Right now, eToro is providing a $50 bonus to new members who open an account and trade $500 worth of crypto before September 30, 2021.
Pros
- Worldwide options for trading crypto
- Ability to copy various traders portfolios
- Low minimums to start
Cons
- Limited selections in the United States
- Only available in forty one states
- Doesn’t support as many tokens and coins as other platforms on this list.
7. Bitcoin IRA
Bitcoin IRA is a little different than the other platforms here. Unlike most exchanges and wallets, you are essentially just exchanging currency and are subject to paying taxes on your gains (learn how taxes on your cryptocurrencies work here).
With that being said, Bitcoin IRA combines the best of being a crypto wallet and exchange, with also being an IRA. That simply means that your gains inside the account are tax free or tax deferred.
Pros
- Invest in cryptocurrency inside your IRA
- Ability to earn interest on your crypto inside your IRA
- High security options
Cons
- High fees
- High minimums
- Doesn’t support as many tokens and coins as different platforms on this list.
8. Crypto.com
Crypto.com is one of the biggest and quickest growing crypto exchanges. It’s based in Hong Kong, but offers a ton of support for US-based customers.
Right now, you can have access to over 90 tokens and coins worldwide, and 50 tokens and coins if you’re in the United States. Plus, the offer solid rates on their crypto savings accounts.
The only main downside is that it is only app-based at this time, there is no desktop platform.
Pros
- Huge amount of supported coins and tokens
- Pays weekly interest on crypto savings
- You can get a debit card linked to your account
Cons
- Complicated fee structure
- No desktop support, only app-based
- Limited customer support
9. Binance
A very good platform for getting into some currencies like Cardano or Neo. Not as convenient to use as some of the top platforms on this list, however they do have one of the most robust trading platforms out there. They do have a decent mobile app, but again, it is not as user friendly to use and we’ve been frustrated with it. Try Binance here.
Note: Binance.us is the US-version of the platform and has limited coins and tokens to make investments in versus the worldwide version of Binance.
Pros
- Huge amount of supported coins and tokens
- Fast transactions times
- Low fees
Cons
- U.S. has limited options in contrast to worldwide
- Not available in all 50 states
- Limited customer support
10. Hodlnaut
If you are searching for an alternative to trading cryptocurrencies, check out Hodlnaut. Hodlnaut is a savings and lending platform that focuses on Bitcoin and numerous stablecoins.
Right now, you can earn up to 7.46% on your bitcoin and up to 12.73% on your USDC thru saving and lending options on their platform.
Pros
- Pays high interest on holdings
- No minimal balance requirements
- Get $20 free when you deposit $1,000
Cons
- Only supports BTC, ETH, DAI, USDC, and USDT
- Support is based totally in Singapore and may be slow to respond