If you follow any finance news at all, you have likely heard news around something called Bitcoin. A couple of years ago it was all the rage and grew exponentially in value. Then, it crashed. Then, it grew again...and crashed again. It has been quite the wild ride for many investors.
However, many people from the outside looking in may not even know what bitcoin is. If that describes you, let’s do a bit of a review. Bitcoin is the most popular, but not the only, kind of cryptocurrency. A cryptocurrency is essentially a digital currency that relies on some heavy-duty encryption to keep financial transactions secure and private. They also do not rely on any kind of central bank for regulation, which is one of the reasons you see the value of cryptocurrencies fluctuate so much. This has made cryptocurrencies popular with government dissidents and anyone else seeking to make financial transactions without leaving a paper trail.
That being said, cryptocurrencies have recently exploded in popularity, largely in part to people realizing how profitable they can be. Of course, that begs the question of how you even get started. You can’t exactly walk into a bank and ask for a cryptocurrency. Also, even if you know how to invest in them, how do you know which one to invest in? Should you go with Bitcoin, Litecoin, Dogecoin, or the dozens of other cryptocurrencies that are available?
Reddit has proved to be a valuable resource of information for those seeking to invest in crypto, including guiding potential investors towards legitimate sites that help facilitate investment. We have combed through some of the most popular subreddits to get the lowdown on some of the most popular sites, as well as the comments from real users that have experience with them. After you read the article, you should take a look at the following subreddits for more information:
Now, let’s take a closer look at some of the most popular websites used to invest in cryptocurrencies, as well as how Reddit users review them!
Luno.com is a cleanly designed, user-friendly website that allows users to invest in either Bitcoin, Ethereum, or Bitcoin Cash (the latter two being different kinds of cryptocurrency). Investment transactions can take place through a PC, an Android device, or a device running iOS. They offer secure digital wallets for any cryptocurrency that you buy and boast that their security systems have never been compromised. This is important because, should someone be able to steal your cryptocurrency, there is no way to retrieve it.
The site also focuses heavily on educating users about the history of cryptocurrency. This includes a historic rundown of all three digital currencies they support, the differences between those currencies, and running price histories that show how historically their values have risen and fallen. They also offer several features, including the ability to send and receive digital currency through a number of means, the ability to buy and sell those currencies, and the ability to trade digital currencies (much like how one might play the stock market).
Overall, the platform looks like an easy, inexpensive way for the casual investor to get their feet wet with cryptocurrencies. However, their service area is somewhat limited. Most of Europe and a handful of Asian and African countries are all that are supported. That cuts out huge financial markets, including the U.S.A, Canada, Japan, and China.
This is a larger exchange that caters to more different kinds of cryptocurrency and has a heavy focus on buying and selling that currency. The available cryptocurrencies are Bitcoin, Ethereum, DASH, and a stable coin called USDT. A stable coin is one that is pegged to a traditional currency, therefore avoiding the volatility that often accompanies cryptocurrency trading. In this case, the USDT is tied to the US dollar.
The process to get started is not complicated, though it is quite involved for security purposes. Steps include two-factor authentication of your account and a selfie of you with your id that must match the information you put in for the debit or credit card you plan on using. It may feel a bit more of a hassle than other exchanges, but rest assured that is is extremely unlikely that someone will fraudulently use your financial information in this site.
The site offers very straightforward features, most of which are geared towards active investment. You can buy the aforementioned currencies, sell Bitcoin on the site, trade with Bitcoin, and they are in the process of developing the ability to trade on the price of digital currencies without actually having to buy them. This is akin to traders shorting stocks on a traditional market exchange.
Some of the few drawbacks we noticed were that, while you can buy several different kinds of crypto on this site, you can only sell and trade with Bitcoin. It also does not offer a lot of the introductory education that beginner users will need, so novices may feel overwhelmed by the features and information provided on the site.
Coinbase is one of the larger exchanges you will find for cryptocurrencies. They offer services for many different kinds, including buying and selling Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. They also offer trading on more than 15 different kinds of cryptocurrencies. If you happen to come across a currency that you are not familiar with, you may be in luck. Coinbase will teach you about some of the lesser-known currencies and then will pay you in that currency just for learning about it!
Coinbase divides its services into three sections: services for all traders, including novices, services for more advanced traders, and services for businesses. They offer a little bit of everything for customers, regardless of how experienced, or inexperienced, you are in the world of crypto trading.
They also offer a secure wallet to keep your cryptocurrency in, and they have their own stable coin (USDC), which is pegged to the US dollar. They even reward certain traders based on how many stable coins they hold.
Coinbase also services more than 100 countries, but not all countries are offered the same features. For example, US-based customers can buy, sell, and convert digital currencies and have the option to pay with a bank account, PayPal, debit card, or cryptocurrency deposit. If you are based in Costa Rica, for example, you are only able to convert digital currency you already hold. The option to buy or sell is not present.
Coinmama is a smaller exchange that has a singular focus on buying and selling cryptocurrency. Though they do not offer much else in terms of functionality, they do service eight different kinds of cryptocurrency to be bought on their exchange. They keep their pricing pretty transparent, as we were able to see exchange rates for different currencies to USD without even needing to create an account.
Coinmama boasts a handful of different features, most notably the ability to buy currencies with a credit card and instant delivery of coins that you buy without requiring a deposit. They also allow high spending to accommodate larger spenders and they have a team of “Happiness Heroes” to make sure their customers have their questions answered and are well taken care of.
Aside from that, they have a sprinkling of educational and news articles, though it is clear that it definitely is not a focus like it would be on Luno. Overall, the site is simple and straightforward with what it offers, making it ideal for beginners.
Bitpanda differentiates itself from other exchanges in that it not only services cryptocurrencies but also several other kinds of investments as well. This includes being able to invest in precious metals like gold, setting up savings accounts, and a myriad of other features.
Even though their services are diversified, BitPanda services more than 25 different cryptocurrencies, including the ability to buy and sell all of them through their platform. You can receive cash payouts in a number of different currencies, and you can pay through more than 10 different options. The platform allows swapping of all support digital currencies, too.
The exchange also touts that their services are easily learned by beginners while offering the diversification needed by more seasoned traders. You can access trading services either through a PC or through a mobile device running Android.
Binance is one of the largest crypto exchanges available, and the services and features they provide are incredible. Mostly geared towards the seasoned trader, you can buy and sell a number of different digital currencies. They also offer market-specific features, including “lending” some of your crypto and earning interest on it (essential a savings account), staking, and giving a detailed view of market movement involving crypto.
The number of features and information provided will easily overwhelm novice traders, but it seems Binance is aware of that. They have a dedicated educational page that offers explanations ranging from explaining the financial risks of investing in crypto, explaining market-specific terms like staking, and even tutorials that take you step by step in how to participate in the number of trading features and services offered.
Like many of the exchanges on this list, they offer a variety of payment and payout methods, including the ability to use credit and debit cards to buy a variety of cryptocurrencies (though this is not available on all the coins they offer).
Binance is one of the most full-featured exchanges on this list, having put in the effort to cater to novice and expert traders alike. They offer an impressive host of buying, selling, and exchange tools while being able to educate their users on what exactly those tools are and how to best use them.
The last exchange on our list is KuCoin, which is almost entirely geared towards seasoned market trading veterans. They offer several market trading features, including spotting, margin investing, and contract investing. You can also lend your crypto that you keep on their exchange, which will earn you interest like a savings account.
They also have their own coin, called KuCoin Shares (or KCS), which is an ecological token used for different services on the KuCoin exchange. Holders of KCS enjoy periodic bonuses based on fees collected on trades using KCS, special discounts on trading fees, and occasional promotions offered on the exchange.
Unfortunately, if you are a novice investor, you may have trouble using the site. There is only a small page for the “Beginner’s Guide,” which simply directs you to download the app, available on Android or iOS. If you are a novice in the world of cryptocurrency, this site is likely not for you.
There is a lot of information to learn and get comfortable with when starting to get into crypto trading. Not only are you going to have to learn the ends and outs of general market trading, but you will also need to familiarize yourself with the best way to keep your crypto investments safe. Unlike traditional investments, if an exchange that you have assets on goes under, so does your money. There is no recourse to get it back.
Though there is a significant risk in investing in crypto, it is continuing to grow in popularity among traditional market investors. The potential for profit is quite high, even with a smaller investment. Others have grown to love that it is decentralized and not held to the whim of financial institutions or governments.
Regardless of the reason why you may be interested, use this article as a platform to get started. Take advantage of free communities like the subreddits listed, and good luck with your new crypto ventures!
