Best Crypto Exchanges and Apps of December 2022
The first step many investors take when exploring the world of digital assets is choosing a cryptocurrency exchange. Centralized exchanges are one way to convert cash into coins and tokens, and while there are many ways to exchange cryptocurrencies for one another, they provide a relatively easy method.
Although there are many exchanges available, it is important to compare fees, cryptocurrency selection, advanced trading options and customer service offerings before making a decision. However, there are also some factors to keep in mind when making your choice.
When you invest in cryptocurrency, you are not subject to the same investor protections as traditional investments. For example, if your exchange fails (as FTX did in the fall of 2022), you could lose your investment. Some users prefer not to store assets on exchanges unless they’re actively trading. You can use your own crypto wallet in many cases to store, trade and carry out transactions using cryptocurrency.
You can invest in cryptocurrency in various ways. For example, you can use a crypto exchange, platform or online broker that offers cryptocurrency. You can also use cash and payment apps to buy and sell Bitcoin, Ethereum or other digital assets.
Here are our other top picks
- Firstrade Crypto
Buying crypto within cash and payment apps
In comparison to exchanges and brokers, cash and peer-to-peer payment apps that now allow users to buy Bitcoin are more limited.
CashApp, created by Square, is a peer-to-peer money transfer system that enables its users to buy and sell Bitcoin. In contrast to other cash apps mentioned previously, Cash App allows its customers to send their Bitcoin into their cryptocurrency wallet. Depending on conditions such as price volatility and market trading volume, Cash App imposes a fee which it makes known at the time of purchase.
With PayPal, you can not only purchase Bitcoin, Ethereum, Litecoin and Bitcoin Cash, but also sell them. Fees associated with this include an estimated 0.5% trading fee (which is subject to change based on the market conditions) as well as a tiered transaction fee that would come out to $2.49 for every $200 worth of Bitcoin purchased.
If you use PayPal to buy something with cryptocurrency, remember that you’ll need to pay taxes on the sale of Bitcoin in addition to any other taxes related to what you bought.
Venmo offers several cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash. The company has a similar fee structure to PayPal: estimated 0.5% trading cost, with a fee that amounts to $2.49 on a purchase of $200.
- U.S. Securities Investor Protection Corp. insurance doesn’t apply to cryptocurrency, so if your exchange fails (as FTX did in the fall of 2022), you could lose your investment
- Some users prefer not to store assets on exchanges unless they’re actively trading
- Crypto.com, Coinbase, Binance.US, Kraken and Firstrade Crypto are all good options for investors exploring the world of digital assets
- CashApp, PayPal and Venmo all allow users to buy and sell Bitcoin and other cryptocurrencies