Best Cryptocurrency Exchanges for Beginners 2023

As an aspiring investor, you may be seeking the safest and most efficient way to turn your income savings into digital assets. And that simply translates to opting for a reliable crypto exchange.

However, being new to the idea, you definitely require a helpful guide on choosing one of the best cryptocurrency exchanges for beginners.

There are about 500 top cryptocurrency exchanges in the US, making it a tough row to hoe for you.

But worry not! We've got you covered.

In this article, we will help untangle the strands of your confusion to decide on the best among the leading cryptocurrency exchanges for starters in the nation.

So let’s begin!

Best cryptocurrency exchanges for beginners

Coinbase

The us-based crypto exchange is a leading crypto trading platform established in 2012. It is the most commonly used cryptocurrency trading platform, with a user base of nearly 100 million as of 2022.

Reasons to trade with Coinbase

As a new crypto trader, you’re unknown to aspects like how to buy and sell cryptocurrency or start and maintain your digital currency investment. Hence, Coinbase will be most suitable for your crypto investment plan. It offers an extremely user-friendly and simplified user interface with the best crypto app for beginners. In addition, you are provided with helpful and informative content to guide you through your investment venture.

Moreover, the registration process at Coinbase is simple and takes not more than a few minutes. As for trading, you can start trading cryptos immediately after you make a purchase plus, with higher daily limits. 

Adding to that, the top cryptocurrency exchange doesn't charge extra for account maintenance.

How to create an account in Coinbase?

The Coinbase registration process is free and simple. The requirements are;

● You must be at least 18 years old.

● You must produce documents like Driver's License and National Identity Card while applying.

● As usual, you need an internet-enabled smartphone to complete your registration process.

● A desktop having an updated Chrome browser is recommended. Similarly, you can also use the Coinbase app for convenience—make sure you have an up-to-date iOS or Android phone.

Binance

Binance.us stands as one of the best cryptocurrency exchanges for beginners with easy-to-do features. It deals in more than a hundred digital currencies, such as Ethereum and Bitcoin. The American crypto dealer company is the world's largest digital currency exchange based on its trade volume.

Why pick Binance?

The crypto brand can be the right pick for you as it has the lowest spot trading fee that no other crypto exchanges offer. Aligned with its huge global reputation, the best cryptocurrency marketplace runs with an ultra-secure trading system, thus making your crypto dealings safe. 

Moreover, Binance offers great discounts on purchasing and selling various crypto coins via BNB utility tokens. As a beginner cryptocurrency trader, you can rest assured that you will get the best investment security and deals. 

The veteran crypto dealer believes in providing its users with a highly customer-centric management service to assist in any segment and time of trading.

How to register a Binance account?

To open an account on Binance, you need to go through a simple KYC registration process. The documents you must produce are:

● A Driver’s license

● Pan Card number

● A Valid Passport

● Voter’s Identification card.

Gemini

This digital coins trader is another popular cryptocurrency exchange, in the world, with Forbes ranking it at 4.9 in the latest run. Gemini can be your best crypto match as it supports a dedicated trading structure for budding cryptocurrency investors.

Why choose Gemini?

Like its counterparts, the seven-year-old, New York-based crypto broker is a tough competitor when it comes to its highly intuitive user interface. With that, Gemini has a good collection of educational material at its disposal for guidance on buying and selling crypto coins. 

As of mid-2022, the company supports over 50 cryptocurrencies, including BTC and ETH. 

Meanwhile, glancing at its transaction cost, you will be charged a minuscule amount of 0.4% as a trading fee. Further, the crypto exchanger ensures an anytime, anywhere trading concept with Gemini Mobile, the best crypto app for beginners.

How to get started with Gemini crypto?

As a well-known digital currency trader, especially for rookie crypto investors, Gemini has kept its on-boarding process as simple as a hot knife through butter. The prerequisites to have a Gemini account are;

● A legal state-issued ID proof.

● Active driver’s license.

● National IDs like passports or voter’s cards.

● PR card or Green Card.

Kraken

The trading platform is another trustworthy option for you. In business for over a decade now, Kraken is considered one of the best cryptocurrency exchanges for beginners. The exchange company, which also functions as a digital bank, reported a whooping USD 1.36 bn in earnings as of 2022 YoY, according to Sacra, a market research company.

Why use Kraken?

With a quarterly trading volume of USD 207bn+, the crypto investment and trading exchange is undoubtedly an attractive crypto merchant. You can start crypto trading at a competitive price of USD 10 with more than 185 cryptocurrencies to choose from, including Bitcoin. Looking at its security features, it deploys high-end safety tools and measures for cryptocurrency transactions.

Along with its training guide material, Kraken also integrates its interface with chatbots and call support for better service standards. Also, you can avail yourself of the lowest Bitcoin transaction fee on Kraken.

Required documents for Kraken account

The process for having a Kraken account is similar to other best cryptocurrency exchanges in the market.

It is simple and quick! However, you’ll get two choices to opt for—-a simple Kraken (beginner-friendly) and a Kraken pro account, depending on your needs. The documents you need to have are;

● Residential proof.

● A photograph of your face.

● Driver’s license.

● Scanned copy (both sides) of a valid national Identity card.

A simple guide on cryptocurrency exchanges?

After having a fair amount of knowledge about cryptocurrency and its benefits, the next thing for you is to grab a basic understanding of a cryptocurrency exchange and its process.

What is a crypto exchange?

In simple words, it is a platform where cryptocurrency investors like you and me, for example, can buy and sell digital currencies like Bitcoin, Ethereum, or Litecoin. The exchange for virtual currencies also manages and regulates your crypto account.

Additionally, you can also determine an opportune time for crypto trade in line with current market statistics and crypto valuation. It means the exchange will help you get the best deal out of your cryptocurrency transaction.

What else does a crypto exchange do?

There are various other services provided by the exchange, such as;

• Swapping of crypto coins between two individual traders or with the exchange itself.

• You can use fiat currency to buy the crypto of your choosing or vice-versa.

• The cryptocurrency exchange provides information on the latest market valuation of a digital currency.

• You can convert your Bitcoin to Litecoin.

• The crypto exchange can switch your digital asset to any tangible currency like the Dollar bill.   

How does a cryptocurrency exchange work?

Typically, a crypto exchange functions in a decentralized way meaning all of your digital assets and transactions are regulated solely by a particular crypto broker company and not the government. Hence, unlike traditional exchanges, cryptocurrency trading platforms are much more efficient, in terms of security, speed, and management services. Moreover, you can conduct your trading activities 24×7—with no time limitation.

Once you place an order to buy or sell crypto, the relevant exchange records it in a virtual data book. It further arranges the requests in chronological order and according to the value of a crypto coin.

There are basically two popular buy and sell requests you can make, among others, to your cryptocurrency exchange. One is market-wise and the other limit-wise. 

The market-wise order can help you conclude your crypto trading sooner than the latter option. However, it may also depend on the current market trend. The crux of the matter is that you get the best possible deal based on the latest market statistics with the market-wise option.

Nevertheless, if you take the limit-wise route, the exchange will not carry out a transaction until it gets a party ready to take up the amount limit you’ve specified.

What is a crypto wallet?

Imagine you opened up a traditional savings bank account. Subsequently, you’re authorized with a unique set of digits, (bank account number) mainly used for the transaction of funds. In addition, the bank provides you with a Debit/ATM card to broaden your transaction spectrum and ensure extra safety with another set of unique numbers only known to you.

Somewhat similar to a bank debit card, a crypto wallet is a virtual monetary safe where you can store your funds in the form of cryptocurrencies like BTC and ETH, or LTC. A crypto wallet has its own private key, accessible only by you. These virtual wallets are quite handy while buying, selling, and spending your cryptos.

Moving on; your crypto trading platform can facilitate you with three kinds of wallet options.

Types of crypto wallet

1. Hardware wallet– This type of storage method, also termed “cold storage,” is synonymous with extra safety. You’re most unlikely to lose your funds in times of hacker expeditions, as it’s a physical device that can be kept totally offline unless needed. As the name suggests, a hardware wallet looks familiar to a USB drive that stores all your crypto and account information.

2. Software-based wallet– Also known as an online wallet it offers virtual storage space for your digital currency, operated via an app or dedicated software program. Although online in nature, a software wallet is still a safe bet for storing your cryptocurrency and pin information. It seems pretty similar to conventional online banking tasks while making transactions.

3. Paper wallet– If you go for a paper wallet, you’re given a small piece of paper with your account information and a QR code printed on it. The option is still as safe like its hardware counterpart, as it doesn’t need to be online all the time. But let’s be practical, as it's just a piece of paper that naturally makes it prone to early damage and misplacement. So, using a paper wallet may have its share of difficulties.

Conclusion

The cryptocurrency market has been spiraling since its inception in 2009 and the recent figure of around 300 million users, indicates its popularity among potential global investors. Nevertheless, be cautious while latching your trust onto a suitable crypto exchanger. There are unquestionably several best cryptocurrency exchanges for beginners, but you must focus on some factors that decide their reliability. A top crypto exchange, especially for novice investors, must be transparent and good at crypto market predictions. Accordingly, it must possess a nonporous security system, easy interface, and crypto variety, with a simple payment structure and fees.