With the recent popularity of cryptocurrencies, it has become more accessible to the average American. Several brokerage firms now allow investors to buy and sell cryptocurrencies alongside their stocks, mutual funds and other investments. Some of the best cryptocurrency exchanges make the process more user-friendly than ever, especially those with the best cryptocurrency trading apps.
Investing in cryptocurrencies may not be for everyone as they are still a speculative investment. Whether or not they make money long-term, investors can look forward to a roller coaster ride. However, if you believe in the long-term potential of cryptocurrencies and have a fairly high risk tolerance, there is nothing wrong with holding digital currencies as a long-term investment.
With that in mind, here are some of the best cryptocurrency exchanges for April 2022. They include brokers, exchanges, and apps that you can use to start building your cryptocurrency portfolio today.
Where to buy cryptocurrency?
If you are wondering where to buy cryptocurrencies, you have several options. The best places to buy cryptocurrencies can generally be divided into two broad categories:
Mediation. A brokerage is a company that facilitates the buying and selling of investments such as stocks, bonds, and mutual funds. Several top stockbrokers now offer cryptocurrency trading through their platforms. These can be desktop-based, application-based, or both.
exchange. Cryptocurrency exchanges make it easy to buy and sell digital currencies. The biggest difference is that brokers offer different investment vehicles. Cryptocurrency exchanges don't.
Whether you choose a broker or an exchange, make sure it has the features you need. For example, if you want to buy cryptocurrency on your phone, look for the best cryptocurrency apps.
It is also possible to buy cryptocurrencies directly from other people. This was more popular in the early days of Bitcoin. However, this may be a bit complicated and is beyond the scope of this discussion.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a company that facilitates cryptocurrency trading. Cryptocurrency exchange customers can buy and sell various digital currencies. You can also do the following through the exchange's platform (non-exhaustive list):
- Exchange one cryptocurrency for another at the current exchange rate.
- Exchange cryptocurrencies for fiat currency (such as US dollars) or cryptocurrencies pegged to fiat currencies.
- For example, spend cryptocurrency with a linked debit card.
- Visit educational resources to learn more about digital currencies.
- If you want to trade digital assets on the go, many of the best cryptocurrency exchanges have mobile apps for your convenience
Features of the Best Cryptocurrency Apps and Exchanges
There are several great cryptocurrency apps out there. To choose the best exchange, you need to decide which features are most important to you.
Here are some factors to consider:
Safety. Check out the exchange's security features to see how much of its assets are offline in cold storage, whether it has private insurance, and whether it's part of a bug bounty program that encourages ethical hackers to report bugs. You can also find out if the exchange has been hacked before.
customer service. If you are new to cryptocurrency investing, 24/7 customer support is a must. No one wants to go through the FAQ page for help because they haven't received any money in their account.
currency range. There are over 4,000 cryptocurrencies, but even major exchanges only offer between 50 and 150 coins. You can probably buy Bitcoin and one or two other major currencies on most platforms. However, if you want to buy a specific currency or invest in some smaller coins, you need an exchange that offers multiple currencies.
User friendliness. Cryptocurrency applications have grown rapidly as more and more people want to invest. However, sometimes this rapid evolution comes at the expense of usability. Make sure the app has the features you want to use, and if you've never traded before, choose a beginner-friendly app.
cost. Whether you choose a bank, broker or the best cryptocurrency exchange, paying unnecessary fees means throwing your money away. Check the fees for deposits, withdrawals and transactions before opening an account. It's also worth checking withdrawal and deposit options to make sure they're right for you.
Research. Cryptocurrencies are a relatively new way of investing, so the more you can learn, the better. Some apps include cryptocurrency learning centers and information about specific coins.
interest. Some cryptocurrency exchanges offer the opportunity to earn interest on coins. Make sure you understand and familiarize yourself with how interest arises. Exchanges can lend you money or pay your staking fees if you commit to keeping your coins alone for a period of time.
Place. Some exchanges cannot operate in every state in the United States. Make sure the exchange you choose covers your state and complies with U.S. crypto regulations.