A common question we get from friends – What is the best crypto exchange? We use 3 different exchanges and each has its own advantages. There isn’t really a “best” cryptocurrency exchange – the secret is to find the right one for you based on your goals and specific situation. Here’s our cryptocurrency exchanges guide to help you the best one(s) for you!
White Paper Pagoda’s Crypto Exchanges Guide
Coinbase is a juggernaut. It made over a billion dollars last year and serves over 13 million users. It’s also often the first exchange that first time crypto investors choose. It’s simple to use, has a great reputation for security, and most importantly, allows you to directly convert your fiat into crypto. One key limitation though is the number of cryptos you can purchase there – at present only Bitcoin, Bitcoin Cash, Ethereum, and Litecoin are available. But if you are new to crypto and want to get started, this is probably the perfect place to begin (it’s where our crypto journey began).
Binance is a relatively new exchange, but it has become extremely popular. Unlike Coinbase, it has no mechanism for buying cryptos with fiat. However, its key advantage is the number of projects listed. It has 125+ coins available and continues to add more frequently. People generally buy Bitcoin from a site like Coinbase and then send their Bitcoin to Binance where they can then trade Bitcoin for these other cryptos. If you want to move beyond just holding the basics like Bitcoin, Ethereum, and Litecoin, then Binance is a great exchange to try.
Another cool feature that Binance has is its own native token, BNB. Trading fees on the site are reduced by 50% when you use this token for trades. It’s been very popular and has launched BNB into the top 25 coins in crypto.
Another cool feature of the exchange is the ability to take dust (little leftover amounts of various cryptos you may have after completed trades) and converting them into BNB. If you start to trade cryptos a lot, you’ll accumulate dust over time. It’s great to see Binance has a way of returning that value back to you.
Our favorite coins to buy on Binance: AION, ICX, WAN
KuCoin is another crypto exchange that launched in 2017 and has quickly gained popularity. Much like Binance, it does not allow direct purchases from fiat and requires you to send over Bitcoin that you purchased elsewhere such as at Coinbase. Also, KuCoin has its own token KCS that reduces trading fees on the site when you use it. However, KCS has another cool feature. When you hold KCS on the exchange, you receive dividends that are payed out in the form of small amounts of coins from each of the many cryptos listed on the exchange. We love this concept because those tiny payouts of various cryptos may become much more valuable down the road when some of those projects blossom.
Our favorite coin to buy on KuCoin: DRGN