10 Best Crypto Apps & Exchanges Of 2023

Cryptocurrency has exploded in popularity over the last few years. With over 21,000 different cryptocurrencies in existence and a total market capitalization of over $1 trillion, crypto has cemented itself as a major new financial asset class. As crypto goes more mainstream, millions of people are looking to open accounts on cryptocurrency exchanges. However, the sheer number of options – there are around 500 different exchanges globally – makes choosing the right platform an incredibly important decision.

The Importance of Choosing the Right Crypto Exchange

Choosing a reputable and secure cryptocurrency exchange is crucial for anyone looking to buy, sell, or trade crypto assets. The wrong choice could result in lost funds, lack of liquidity, or limited coins available for trading. With hundreds of exchanges to choose from, doing thorough research is essential before selecting one to entrust with your crypto holdings. Taking the time to understand each exchange’s features, fees, and reputation can help avoid costly mistakes.

Trustworthy Crypto Exchanges

Many crypto exchanges have failed due to hacks, fraud allegations, or outright scams. When evaluating an exchange, indicators of trustworthiness include:

• Years in operation – Longer track records suggest stability and security protocols that have stood the test of time.
• Positive reputation – Check reviews and community feedback for red flags like delayed withdrawals or poor customer service.
• Robust security and compliance – Look for two-factor authentication, cold storage of assets, and compliance with regulations.

Exchanges like Coinbase, Gemini, and Kraken rate highly on trust metrics.

Types of Crypto Exchanges

There are two main types of crypto exchanges:

Centralized

• Funds are custodied and transactions are facilitated by the exchange.
• Easier to use but risks include hacking and mismanagement.
• Examples: Coinbase, Binance, FTX.

Decentralized

• Non-custodial peer-to-peer exchange. Users maintain control of private keys.
• More complex to use but reduces counterparty risks.
• Examples: Uniswap, Pancakeswap.

The choice between centralized and decentralized exchanges depends on your priorities for security, convenience, and functionality.

Factors to Consider When Choosing a Crypto Exchange

Beyond basic security and trustworthiness, several other factors should be considered carefully when selecting a cryptocurrency exchange:

• Trading volumes and liquidity – Platforms with higher volumes can fill orders faster and have tighter spreads.
• Fee structure – Maker/taker fees, deposit/withdrawal fees, and payment methods impact costs.
• Supported cryptocurrencies – Many exchanges only support top coins like Bitcoin and Ethereum.
• Educational resources – Beginner-friendly exchanges offer guides, videos, and tutorials.
• Advanced trading options – Features like margin trading and derivatives appeal to sophisticated traders.
• Accessibility – Consider payment methods, mobile app, countries served, and customer support.

Crypto Exchange Fees

Trading fees, deposit/withdrawal charges, and spreads represent primary costs for crypto exchanges. Fee structures are complex, often involving tiered volume discounts and maker/taker differences. While fees shouldn’t necessarily be the primary factor, they do impact profitability over time. Exchanges like Binance and FTX are known for their competitive fee schedules.

Available Coins and Liquidity

The range of cryptocurrencies supported varies widely across exchanges. Some focus exclusively on “blue chip” coins like Bitcoin, Ethereum, and stablecoins. Others offer hundreds of small-cap altcoins. It’s important to check whether the exchange you choose supports the specific assets you want to trade.

Liquidity refers to the ease with which assets can be bought and sold without significant price impact. Exchanges with high trading volumes and order book depth offer the best liquidity and tighter spreads.

Trading Features and Advanced Options

Sophisticated crypto traders require more advanced functionality beyond basic spot trading. Features to look out for include:

• Margin trading – Increase leverage by borrowing funds from the exchange.
• Derivatives – Futures, options, and perpetual swap contracts.
• OTC desks – Large block trading of high net worth investors and institutions.
• Algorithmic trading – Tools for automated high-frequency trading strategies.
• Lending/staking – Earn yield by lending crypto holdings or providing liquidity.

These professional-grade options are offered by exchanges like Binance, FTX, and Deribit.

Educational Resources

The complexity of crypto can be overwhelming for beginners. Some exchanges like Coinbase and Gemini offer extensive learning resources like:

• Tutorials and guides – How-to instructions on trading, storage, and research.
• Glossaries – Crypto terms and definitions explained simply.
• New asset listings – Educational content whenever new coins are added.
• Latest news and analysis – Contextual insights on market developments.

These resources provide enormous value, especially for new investors.

Case Studies of Top Crypto Exchanges

Let’s briefly profile some of the highest-rated cryptocurrency exchanges according to Forbes Advisor’s analysis:

Coinbase

• The largest US exchange, trusted for security and ease of use.
• Offers 100+ cryptocurrencies and extensive educational content.
• Relatively high fees but good for beginner investors.

Binance

• World’s top exchange by trading volume across spot and derivatives.
• Vast selection of altcoins and low fees using BNB token.
• Feature-rich but can be complex for novice users.

Kraken

• Veteran exchange with a solid reputation for security and compliance.
• Good liquidity and staking options for institutional investors.
• Limited payment methods compared to Coinbase.

FTX

• A fast-growing exchange is known for derivatives trading and leverage.
• Created by former quant traders, tailored for sophisticated investors.
• US entity has more limited offerings than international FTX platforms.

This just scratches the surface of the diverse options for cryptocurrency exchanges across security, features, coins, fees, and more. Do your due diligence before choosing the right fit for your needs and experience level.

How to Open a Crypto Exchange Account

Here is a quick step-by-step guide on getting set up on a new crypto exchange:

1. Select your exchange – Research and compare options using the criteria outlined above.
2. Sign up and verify – Provide info like name, email, and phone number. Verify ID per KYC/AML requirements.
3. Enable 2FA – Add an authenticator app or security key for two-factor authentication. Critical for security!
4. Deposit funds – Transfer dollars or crypto into the exchange via bank wire, debit card, or crypto wallet.
5. Start trading! – Congrats, you can now buy, sell, and exchange cryptocurrencies on the platform.

Take the time upfront to carefully secure your account and understand the platform’s functionality. Never store substantial funds on an exchange long term – use a private hardware wallet instead.

Conclusion

As cryptocurrency adoption continues growing, choosing the right exchange becomes more important than ever. Security, fees, coins, features, and educational resources should all be evaluated when comparing options. Top-rated platforms like Coinbase, Binance, and Kraken lead the pack while catering to differing investor needs. Take your time researching before opening an account. The exchange you select can profoundly impact your long-term success and safety in the exciting but complex world of crypto!