The Best Bitcoin Exchanges of 2021

Introduction

Welcome to our comprehensive guide to the best bitcoin exchanges of 2021! If you’re new to the world of cryptocurrency, you might be wondering what a bitcoin exchange is and why it’s important. A bitcoin exchange is a digital platform where you can buy, sell, and trade bitcoin and other cryptocurrencies. As the popularity of bitcoin continues to grow, so too does the number of exchanges available. But with so many options to choose from, how do you know which one to use? Our guide will help you navigate the crowded space of bitcoin exchanges and choose the best one for your needs.

Why Choose the Right Bitcoin Exchange?

Choosing the right bitcoin exchange is important for several reasons. First and foremost, you want an exchange that is secure and reliable. You’ll be entrusting your money and personal information to the exchange, so it’s crucial to choose one that has a strong track record of security and trustworthiness. Additionally, different exchanges have different fees, features, and supported currencies. Depending on your needs, you may want an exchange that offers low fees, advanced trading tools, or a wide range of altcoins to trade. By choosing the right exchange, you can optimize your trading experience and get the most out of your cryptocurrency investments.

How We Chose the Best Bitcoin Exchanges

To determine the best bitcoin exchanges of 2021, we analyzed a range of factors including security, fees, user experience, customer support, and supported currencies. We also considered feedback from the cryptocurrency community and our own experiences using each exchange. The following are our top picks for the best bitcoin exchanges, listed in alphabetical order:

Exchange	Security	Fees	User Experience	Customer Support	Supported Currencies
Binance	Excellent	Low	Excellent	Good	100+
Coinbase	Excellent	High	Excellent	Good	30+
Gemini	Excellent	Low	Good	Excellent	20+
Kraken	Excellent	Low	Good	Good	30+
Robinhood	Good	Free	Good	Poor	7

Binance

Binance is one of the largest and most popular cryptocurrency exchanges in the world. Founded in 2017, Binance has quickly become a go-to destination for traders looking to buy and sell bitcoin and other cryptocurrencies. With low fees, top-notch security, and a user-friendly interface, Binance is a great choice for beginners and experienced traders alike.

Binance offers more than 100 cryptocurrencies for trading, including popular coins like Bitcoin, Ethereum, and Litecoin, as well as lesser-known altcoins. The exchange also offers advanced trading tools for experienced traders, including margin trading and futures trading. Additionally, Binance has its own token, Binance Coin (BNB), which can be used to pay for trading fees and other services on the platform.

Coinbase

Coinbase is one of the oldest and most established cryptocurrency exchanges in the world. Founded in 2012, Coinbase has built a reputation as a secure and reliable exchange for buying and selling bitcoin and other cryptocurrencies. The exchange has a simple and easy-to-use interface, making it a great choice for beginners.

One of the downsides of Coinbase is its high fees. The exchange charges a premium for its convenience and ease of use, making it more expensive than some other exchanges. However, Coinbase offers a limited selection of altcoins, with only 30+ supported currencies. Despite this, Coinbase is still a great choice for those looking for a secure and trustworthy exchange.

Gemini

Gemini is a cryptocurrency exchange founded by the Winklevoss twins, best known for their legal battle with Mark Zuckerberg over the creation of Facebook. Launched in 2015, Gemini is one of the most trusted and secure exchanges available. The exchange has a clean and easy-to-use interface, making it a great choice for beginners.

Gemini offers a smaller selection of cryptocurrencies, with 20+ supported currencies. However, the exchange has some unique features, including the ability to earn interest on your cryptocurrency holdings and the Gemini dollar (GUSD), a stablecoin backed by the US dollar.

Kraken

Kraken is one of the oldest and most established cryptocurrency exchanges in the world. Founded in 2011, Kraken has built a reputation as a safe and reliable exchange for buying and selling bitcoin and other cryptocurrencies. Kraken has a clean and intuitive interface, making it a great choice for beginners and experienced traders alike.

Kraken offers a wide range of cryptocurrencies for trading, including lesser-known altcoins. The exchange also offers advanced trading tools, including margin trading and futures trading. Kraken’s fees are relatively low, making it a great choice for those looking to save money on trading fees.

Robinhood

Robinhood is a mobile app-based cryptocurrency exchange that offers commission-free trading. Launched in 2013, Robinhood has gained popularity for its easy-to-use interface and accessibility for beginners. However, the exchange has limited support for cryptocurrencies, with only 7 supported currencies.

One of the downsides of Robinhood is its poor customer support. The exchange has been criticized for its slow response times and lack of communication with customers. Additionally, Robinhood’s security practices have been called into question, with the exchange suffering several hacks in the past.

Frequently Asked Questions

What is a Bitcoin Exchange?

A bitcoin exchange is a digital platform where you can buy, sell, and trade bitcoin and other cryptocurrencies.

How do I Choose the Best Bitcoin Exchange?

When choosing the best bitcoin exchange, you should consider factors such as security, fees, user experience, customer support, and supported currencies.

What Should I Look for in a Bitcoin Exchange?

You should look for a bitcoin exchange that is secure and reliable, with low fees, a user-friendly interface, and a wide range of supported currencies.

How Do I Buy Bitcoin on an Exchange?

To buy bitcoin on an exchange, you’ll need to create an account, verify your identity, and deposit funds. Once your account is set up, you can place buy orders for bitcoin or other cryptocurrencies.

Can I Sell Bitcoin on an Exchange?

Yes, you can sell bitcoin on an exchange. To do so, you’ll need to have bitcoin in your account and place a sell order. Once your order is filled, you’ll receive funds in your account.

Are Bitcoin Exchanges Safe?

Most bitcoin exchanges are safe and secure, but there is always some risk involved. To minimize your risk, choose an exchange with a strong track record of security and use good security practices, such as 2-factor authentication.

What is the Best Bitcoin Exchange for Beginners?

The best bitcoin exchange for beginners depends on your needs and preferences. However, Binance, Coinbase, and Gemini are all good options for those just getting started with cryptocurrency.

Can I Trade Bitcoin on Different Exchanges?

Yes, you can trade bitcoin on different exchanges. However, it’s important to keep track of your trades and ensure that you’re not overexposed to any one exchange or cryptocurrency.

How do Bitcoin Exchanges Make Money?

Bitcoin exchanges make money by charging fees for trades and other services, such as withdrawals and deposits.

What is a Trading Pair?

A trading pair is a pair of currencies that can be traded on an exchange. For example, a bitcoin/USD trading pair would allow you to buy and sell bitcoin for US dollars.

What is Margin Trading?

Margin trading is a type of trading where you borrow funds from the exchange to trade with. This allows you to leverage your trades and potentially earn higher profits, but also increases your risk.

What is a Stablecoin?

A stablecoin is a type of cryptocurrency that is designed to maintain a stable value, often pegged to a fiat currency like the US dollar.

What is 2-Factor Authentication?

2-factor authentication is a security measure that requires you to provide two forms of identification to log in to your account. This helps prevent unauthorized access to your account.

What is a Wallet?

A wallet is a digital storage device for your cryptocurrencies. You can use a wallet to store, send, and receive bitcoin and other cryptocurrencies.

What is a Private Key?

A private key is a secret code that allows you to access your cryptocurrency holdings. Your private key should be kept secret and secure.

Conclusion

Choosing the right bitcoin exchange is crucial for optimizing your cryptocurrency trading experience. By weighing factors such as security, fees, user experience, and supported currencies, you can choose the best exchange for your needs. Our top picks for the best bitcoin exchanges of 2021 are Binance, Coinbase, Gemini, Kraken, and Robinhood. No matter which exchange you choose, be sure to practice good security habits such as using 2-factor authentication and keeping your private key safe.

As always, do your own research and invest responsibly. Happy trading!

Closing Disclaimer

The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of any company or organization mentioned. This article is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any cryptocurrency. Cryptocurrency investments are inherently volatile and risky, and readers should always do their own research and consult with a financial advisor before making any investment decisions.