Learning to buy and sell Bitcoin is a fantastic task for the novice investor. Even if you have experience trading other assets, nothing is quite the same as trading Bitcoin and cryptocurrency assets.
The reason for the difference is that unlike traditional assets, crypto operates under completely different rules and are not regulated by any one government or regulatory body. That makes the cryptocurrency space feel a lot more like the Wild West than Nasdaq.
However, now that you’re ready to buy and sell BTC, you’ll need to choose the right Bitcoin exchange using our help. In our last guide, you learned about the different types of Bitcoin wallets you can choose from. This article will teach you about the two best cryptocurrency exchanges you can trade on, and what makes them both easy to use and secure.
When you’re a Bitcoin beginner, the most important thing is opening an account at an exchange that allows you to buy Bitcoin with cash or credit. Not all exchanges allow for that, which is why you need to carefully select one that does.
Coinbase is just such an exchange. As one of the most well-known and highly reputed exchanges in the cryptocurrency space, opening a Coinbase account is a fundamental and important thing to do. Moreover, Coinbase can conveniently be used as a mobile phone app on both Android and iOS.
Using Coinbase, you can buy Bitcoin and other select cryptocurrencies using cash or credit after your account has been verified (which is typically done same-day). Best of all, Coinbase is FDIC insured, which makes it extremely secure for your use.
Ease of use 5/5, Security 5/5
Binance is the world’s largest digital asset exchange and typically handles the highest Bitcoin trading volume on a daily basis. Founded in 2017, Binance is widely regarded as one of the safest and easiest exchanges to get started with.
The issue with Binance for beginners is that the exchange is best used by those who already have a bit of experience trading Bitcoin elsewhere. Since you can’t buy BTC with cash on Binance, you’ll need to load your Binance wallet from elsewhere.
So, if you’ve purchased crypto with cash at another exchange like Coinbase, you can easily move it across to your Binance wallet and get trading that way. Binance has a huge array of cryptocurrencies available on its exchange, making it a great trading resource if you have BTC and want to trade it in for an altcoin of your liking.
Security-wise, Binance has a great feature called SAFU. Essentially, SAFU is an insurance policy for all Binance users funded by the exchange’s trading fees. Binance was recently hacked for $40 million – and while that isn’t good news, the Binance team did deploy the SAFU fund to cover everyone’s losses.
Ease of use 3.5/5, Security 4.5/5
Both Coinbase and Binance have their place in your array of Bitcoin exchanges. While there are many exchanges beyond those two, for a beginner, they are the best places to start from to learn the ropes of crypto trading before moving on to more advanced platforms like BitMex.