- 18 May 2021
- Reading time
- 3 minutes
With the crypto industry growing at fast rates, many new investors are looking for ways to participate. Both individuals and institutions have long realized that Bitcoin is here to stay and are now trying to position themselves in the best way possible.
An important part of this equation is knowing which platform to trust. For example, when you buy bitcoin online, you can use many different types of exchanges online. Then there are also platforms you can use to multiply their value. But which ones are the safest?
In this article, we go through the 5 most popular platforms at this writing, each in their respective category. Ready to delve in? Let’s get started.
Coinbase - A most trusted platform to buy crypto
Coinbase is the most popular exchange globally. Since 2012, the exchange has become one of the fastest-growing companies ever to be created and was recently listed in the stock market.
Coinbase is a brokerage, which means that it acts as a middleman between clients and liquidity providers. Thus, it is the one-stop shop for all institutional buying that has been occurring since the start of the Covid19 pandemic and is a regulated entity under American law.
While some claim that their customer service and decision-making are questionable, the platform signs up thousands of new users daily, all of which get exposed to many different cryptocurrencies.
Binance - A most trusted platform to trade
If you don’t plan to “hold” Bitcoin and are just looking to trade it in hopes of increasing your position, then Binance is the platform you should consider. The platform was created in 2017 and quickly became the best-earning cryptocurrency exchange in the world.
Users can access more than 1000 trading pairs and swap their coins at a discounted rate when holding the platform’s native cryptocurrency, BNB. Apart from that, Binance also hosts new cryptocurrency offerings, an NFT marketplace, and a crypto debit card to improve the use cases of crypto.
Note that many traders choose to keep large amounts of crypto on trading platforms. This may not be in your best interest, even though Binance is considered one of the most trusted platforms available. It is always best to store your coins in wallets where only you hold the keys.
BlockFi - A most trusted platform to earn
BlockFi is another company that is patiently awaiting its IPO and is considered one of the best companies for yield generation in the crypto space. This means that users can store their crypto on Blockfi’s wallet and earn compound interest in the class of 4%-8,6%.
While the actual rates are lately changing to smaller amounts due to bullish market conditions, BlockFi is still one of the most trusted platforms globally and endorsed by influential crypto personalities. If you wish to explore other companies with higher return rates, consider using BlockFi’s alternative - Celsius Network.
LocalBitcoins - A most trusted platform to exchange P2P
LocalBitcoins is the most popular platform for peer-to-peer trading online. The company has built a system that enables secure transactions by acting as an escrow to accommodate both parties.
The process is simple. Users who want to buy Bitcoin enter the platform and look for an offer that interests them. LocalBitcoins offers more payment options than any other platform, as users themselves determine how they wish to get paid. When a good deal is found, the buyer starts chatting with the seller, making the trade. The bitcoin price will be somewhat inflated depending on the payment method (avg ±4%), but the final rate is respectable when considering the service provided.
Even though LocalBitcoins is not an exchange, all users who wish to exchange more than $1000 per year need to verify their account.
Uniswap - Most trusted decentralized exchange
Let’s close this article by showcasing the most popular decentralized exchange on the web. The concept of DEXs is somewhat new, as it started rising in popularity in 2019 when increased regulatory frameworks limited the possibilities of exchanges.
During the same time, Uniswap, a DEX on the Ethereum chain, started trading more actively. In essence, users can access and trade on their platform simply by making a Metamask account. No verification, no accounts, nothing. Simply use your private wallet to swap between cryptocurrencies on the Ethereum network, all through a simple and “rogue” protocol. In addition, Uniswap distributed a large amount of their governance token in late 2020, a move that increased both the platform's popularity and the wealth of users that traded on the platform previously. To put things into perspective, each wallet that participated in Uniswap received 400 UNI tokens, which is now worth more than $16000.