The Best Ethereum Exchanges for 2021
The cryptocurrency market has more than 10,700 unique assets and more than 380 exchanges facilitate the trading of these assets. Like any other tradable asset, crypto assets also have their own categories. Those with significantly large market capitalization form the must-have segment that every exchange wants to offer.
Bitcoin and Ethereum are leaders in this segment. At the time of writing this review, Ethereum occupies nearly 19% or approximately 1/5th of the entire crypto market.
Interestingly, there is a long list of Ethereum founders, but the most well-known among them is Vitalik Buterin. As for why Ethereum is so popular among crypto-traders and enthusiasts, the answer lies in its usefulness to develop smart contracts.
Ethereum is the backbone of the $100 billion decentralized finance industry. Now, with so many exchanges facilitating Ethereum trade, you must be wondering which one among these is the best Ethereum exchange.
When does a cryptocurrency exchange become the best exchange to buy Ethereum? Is providing the fastest way to buy Ethereum enough? Or is it also about supporting a wide range of payment methods, the availability of a multitude of trading pairs, and having the most pocket-friendly transaction fees? Ideally, the decision on where to buy Ethereum depends on a mix of factors, including what we have already mentioned and much more beyond.
Here, in this Wealth Rocket review, we'll be taking a look at the best Ethereum exchanges for 2021.
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The Best Ethereum Exchanges for 2021
If you're looking to purchase or sell Ethereum, you'll need to do it through a cryptocurrency exchange. Below, you'll find the best Ethereum exchanges, which include Coinbase, Binance, Kraken, and KuCoin.
With more than 56 million verified users, the crypto exchange known as Coinbase is one of the best trading platforms for buying and selling Ethereum.
As per the latest available data, Coinbase has registered $335 billion in its quarterly trading volume. Its services are available in more than 100 countries. Its portfolio management feature helps you keep track of your trades. You can choose to auto-schedule your buys on a daily, weekly, or monthly basis. The Coinbase app is available for both Android and iOS.
You can also store your funds in a vault with time-delayed withdrawals. Trading cryptocurrencies through an exchange is also about the security features of the exchange. Coinbase ranks high on this aspect. While it stores a vast majority of its assets securely offline, the digital currency stored on its servers gets insurance coverage. Coinbase’s service allows multiple payment methods, including bank account (ACH), debit card, wire transfer, and PayPal.
Coinbase has a layered fee structure on buy and sell transactions, depending on the total transaction amount involved. It may vary from $0.99* to $2.99* for transactions ranging from any amount less than or equal to $10 to any amount more than $50 but less than or equal to $200. Apart from Ethereum, the service of Coinbase is available for 1inch, AAVE, ADA, ALGO, ATOM, BAND, BCH, COMP, DASH, DOGE, and many more.*Rates current as of July 2021
Often positioned as the world’s largest cryptocurrency exchange, Binance is an exchange that facilitates convenient buying and trading of Ethereum and many other cryptocurrencies, including Bitcoin, Chiliz, Filecoin, Cardano ADA, and many more.
With Binance, you can trade Ethereum from anywhere you wish to. The app is available on the iOS app store, Google Play Store, and Android APK. It is compatible with macOS, Windows, and Linux.
On Binance, you can buy Ethereum with a bank transfer. All you need to do is buy stablecoins listed on the exchange by wiring money from your account. Then you can use those stablecoins to buy Ethereum. Or, for more convenience, you can choose to directly purchase Ethereum with a credit card. Binance allows both Visa and MasterCard as well as debit cards for Ethereum purchases.
When it comes to trading Ethereum, Binance exchange allows the deposit of more than 150 diverse cryptocurrencies. Out of these 150, several crypto assets are available in exchange for Ethereum at one of the most competitive rates in the market.
After you buy Ethereum on Binance, you can store or hold it, trade with it, use it as payment on the Ethereum blockchain and send or donate it.
Binance offers an extremely fast service with its matching engine supporting up to 1.4 million orders per second. It is also highly secure and trusted with its multi-tier, multi-cluster system architecture and SAFU insurance fund.
Deposits are free on Binance, while its withdrawal fees are dynamic and adjusted automatically depending on the market status. Binance’s native coin is known as BNB.
Without the BNB, which provides a discount on the trading fees, each trade carries a standard fee of 0.1%*.*Rates are current as of July 2021
Buying ETH on Kraken is also hassle-free. You need to sign up for a Kraken account and verify it. If you want to use fiat currency to buy Ethereum, you would have to provide some additional documents.
Otherwise, you can buy cryptocurrencies like Bitcoin or Tether. As an exchange, apart from Ethereum, Kraken supports the buying and selling of more than 50 cryptocurrencies. It is a highly inclusive platform where you can start buying with as little as $10. Kraken has a 24/7 global support team that will guide you in case you have any trading-related queries, doubts, or concerns.
If you are planning to fund your Kraken account with USD, the available avenues are Fedwire, SWIFT, Etana Custody, and Silvergate Exchange Network for domestic consumers. International customers have the facility of paying through Wire Transfer. The usual processing time can vary between 1 to 5 business days.
With Kraken, you also have the benefit of funding your account with popular crypto coins such as Bitcoin, Ethereum, Qtum, Zcash, Ripple, Litecoin, Cardano ADA, Monero, and more.
Kraken charges a 1.5%* fee for any crypto or FX pair other than stablecoins.*Rates current as of July 2021
Estimates show that 25% of crypto holders in the world trade with KuCoin. It ranks as the top exchange platform in globalization deployment, with the accumulated number of trades crossing the mark of 795 million.
The accumulated transaction volume of the exchange goes above $365 billion USD. Apart from Ethereum, KuCoin supports a host of other currencies, including Bitcoin, Ethereum, Litecoin, Ripple, KCS, and more.
Trading with KuCoin comes with the opportunity to achieve up to 20-times returns on margin trades and 100-times returns on futures trades. The customer service is available to guide you on a 24/7 basis, while the KuCoin community assistance is available in more than 200 countries and 13 languages.
You can trade Ethereum from both the KuCoin app and website. The application is available for download on the iOS app store and the Google Play Store.
KuCoin charges a standard trading fee of 0.1%*.*Rates current as of July 2021
How to Choose an Ethereum Exchange
The selection of an Ethereum exchange would primarily depend on your preferences. While, as a trader, your preferences will revolve around the transaction fees, availability of trading pairs, and the exchange’s compatibility with your payment method, there are several other factors that you must consider. The security of your funds is a crucial factor. Another vital factor is whether the exchange has insurance for its depositors’ funds. The processing time and whether the exchange charges additional fees on deposits and withdrawals are also crucial to consider.
Our Final Thoughts
If you are a crypto-enthusiast or crypto investor contemplating how to buy Ethereum, you can go with any of the four exchanges above. All of these four reputed exchanges with a significant volume of trade and customer base. However, carefully review all the parameters listed above to finalize the one that is the closest to your needs.
Frequently Asked Questions
Most of the reputed and well-known crypto exchanges are insured. For instance, Coinbase has crime insurance, protecting a portion of digital assets held across its storage systems against losses from theft, including cybersecurity breaches.
The exchange does not cover losses that result from unauthorized access to the user’s personal Coinbase or Coinbase Pro account. It is the user’s responsibility to use a strong password and maintain control of all its login credentials used to access the account.
The use of crypto exchanges for trading in the United States comes under the regulatory framework of different federal and state agencies.
For instance, the crypto assets that qualify as security come under the purview of the Securities and Exchange Commission (SEC). Depending on the trading framework, exchanges may also come under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The U.S. anti-money laundering agency and the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) have also some say on how crypto exchanges shall be operated.
There are many differences between Ethereum and Bitcoin. However, the most important difference between these two networks is in their purpose.
While Bitcoin intends to become a store of value and medium of exchange, Ethereum facilitates smart contracts and DeFi applications for the entire realm of decentralized finance to grow.
Both Bitcoin and Ethereum are digital currencies, but the role of Ethereum is to help monetize the operation of the Ethereum smart contracts and decentralized application platforms (dApp).