Best Coinbase Alternatives: 7 Platforms With Lower Fees And More Security

Last Updated August 17th 2022
15 Min Read

Coinbase was the go-to platform for traders and investors looking to buy Bitcoin and other cryptos for the longest time. It was preferred because of its ease of use and crypto custody services.

Of late, however, numerous challenges have dogged the exchange - forcing crypto investors to seek the best Coinbase alternatives. Some of its flaws include constant loss of user funds from Coinbase wallets to hackers, arbitrary restriction/closure of trader accounts, complex fees, failure to support low cap coins, and slow customer support.

In this guide, we discuss the 7 best Coinbase alternatives and tell you why they are considered better than Coinbase. We also highlight the factors you should consider when searching for a Coinbase alternative.

Let us get right to it.

Best Coinbase Alternatives In 2022

After a thorough analysis of all the leading crypto exchanges, our analysts settled on the following seven trading platforms that they consider the best Coinbase alternatives:

  • eToro -  Overall Best Coinbase Alternative
  • Binance -  Coinbase Alternative That Lets You Earn Passively
  • Crypto.com -  Coinbase Alternative Integrates NFT Marketplace
  • Huobi -  Interact With Unique HUOBI Token
  • FTX -  Coinbase Alternative For Derivative Trading
  • Kraken -  More Secure Coinbase Alternative
  • KuCoin -  Provides Traders With A Larger Variety Of Low Cap Altcoins

 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Below, we discuss each of these crypto exchanges in detail. We highlight their core strengths and tell you why they are considered Coinbase alternatives.

Top 7 Coinbase Alternatives - Review

Here is a detailed overview of all the top Coinbase alternatives in the world. We review their key features and compare them to Coinbase to understand what makes them better alternatives.  

1. eToro - Overall Best Coinbase Alternative

etoro crypto exchange

eToro has become popular in the US and beyond because of its user-friendliness and appeal to novice and expert traders. Launched in 2007, the exchange is now home to more than 20 million traders/investors from 180+countries and territories.  

Like Coinbase, eToro is a multi-trader platform available as a web trader and mobile app. Both platforms are beginner-friendly, feature a lot of educational content, and integrate a wide range of research, trading & risk management tools. And for expert traders, both exchanges provide a PRO version (eToroX and Coinbase PRO) of the exchange. Above and beyond this, however, eToro integrates copy and social trading tools. Social trading allows for interactions between the platform users, while copy trading lets beginners earn while learning by copying trade strategies of highly successful crypto traders.  

Additionally, Coinbase and eToro trading platforms let you interact with a growing number of cryptocurrencies and crypto trading pairs. However, eToro is a multi-asset trading platform – implying that in addition to cryptos, the exchange lets its investors trade conventional assets. These range from forex, commodities, stocks, indices, ETFs, and futures. It even lets you copy trade crypto portfolios.

Both eToro and Coinbase are committed to the safety and security of client data and assets. They, for instance, provide crypto custody services in the form of exchange-based wallets that store 90%+ of client digital currencies in offline vaults. Coinbase holds 98% offline and insures the remaining 2%. eToro, on the other hand, insures client deposits for up to $1 Million – in addition to the regulator-authorized insurance of $250,000 in the US and £85,000 in the UK.

We must also add that Coinbase users have suffered multiple crypto asset losses to hackers. The most recent was the wallet app breach between March and May 2021 that compromised 6000+ Coinbase wallet apps. eToro, on the other hand, has never been hacked.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Binance - Coinbase Alternative That Lets You Earn Passively

binance crypto exchange

Binance is by far the most formidable Coinbase competitor thus and one of the best Coinbase alternatives. Established in 2017 – more than 5 years after Coinbase's launch – Binance has been eating into Coinbase's market dominance gradually. It started by surpassing Coinbase in terms of the number of users before overtaking it as the most liquid exchange. Most recently, the CZ-led exchange toppled Brian Armstrong’s trading platform as the exchange with the most Bitcoins. 

Binance also supports a wider range of cryptocurrencies and crypto trading pairs. According to CoinMarketCap, Coinbase supports slightly over 200 coins and exposes traders to 500+ crypto pairs. Binance, on the other hand, supports close to 400 coins and lets users interact with close to 1700 crypto pairs.

Binance is also far more affordable and transparent about the cost of trading on the platform than Coinbase. The latter maintains a complex fee structure that takes into account your trade volumes and deposit method. Binance, on the other hand, charges a maker or taker fee of between 0.1% and 0.04% of the trade amount – based on your 30-day trade volumes on the exchange.

You also get to enjoy a 25% discount off the fee, if you choose to settle this cost of trade with BNB coins. At the time of writing, Binance is also running a 0% trading fee campaign for select BTC pairs.

Binance and Coinbase are committed to securing their client’s data and digital assets. They both provide crypto custody services and store a significant portion of client assets in ultra-secure offline vaults.

But in addition to suffering lesser network breaches that result in loss of client digital assets, Binance also operates the largest crypto-focused private insurance fund – over $1 Billion. This has been set aside and dedicated to reimbursing clients should a network breach of Binance result in loss of client funds.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Crypto.com – Coinbase Alternative Integrates NFT Marketplace

crypto.com exchange

Crypto.com is one of the fastest growing crypto exchanges in the world and one of the best Coinbase alternatives. Established in 2016 – four years after Coinbase’s launch – Crypto.com has already set base in 90+ countries and onboarded 10+ million traders.  It also constantly features among the top 10 most liquid crypto exchanges.

In addition to growing popularity, it makes it to our list of top Coinbase alternatives because it integrates multiple passive income-generating options. These include the integration of an NFT marketplace and DeFi services to its trading platform. This implies that in addition to trading more than 200 cryptocurrencies and even more crypto pairs, Crypto.com lets you invest and trade all the popular NFTs.

The DeFi services featured here are Crypto.com staking and Crypto.com lending. Staking allows platform users to earn interests of up to 14.5% (for crypto) and 8% (for stablecoins) per annum when you lock your crypto in the Crypto.com staking program. Lending, on the other hand, lets you borrow up to 50% of the staked or deposited funds. You can invest or trade this amount and use the income to pay off the competitively priced crypto loan in instalments of up to 12 months.

Crypto.com also makes our list of best Coinbase alternatives because of its transparent and competitive fees. Unlike Coinbase’s complex fee structure, Crypto.com maintains a fixed maker/taker fee of between 0.4% and 0.1% of the trade amount. And if you have staked at least 5000 CRO (Cronos) coins, you qualify for a 10% discount off this fee.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

4. Huobi – Best Coinbase Alternative with an OTC and P2P Platforms

Huobi crypto exchange

Huobi and Coinbase launched months apart – in 2012 and 2013, respectively. Therefore, they are some of the oldest and most reputable crypto exchanges. The two exchanges also have a lot of common features – which explains Huobi’s inclusion on our list of top Coinbase alternatives in 2022.

Huobi has been more dynamic and integrated additional features into its trading platform. Chief among these is the OTC and peer-to-peer trading platforms, that give it an edge over Coinbase. Here, Huobi users interact with 400+ crypto trades, as opposed to the 200 supported on Coinbase.

In addition to the 400 cryptos, Huobi supports 1000+ crypto pairs. But even more importantly, it gives its platform users access to a proprietary trading bot. This auto-trader employs the Grid strategy, consistently ranks among the top-20 trading bots, and can be operated manually or automatically – through AI technology.

Unlike Coinbase, Huobi has also launched its own native token – HADAX.  But it is more than a utility token. In addition to giving its holders access to trading discounts and offers, it also gives holders a right to vote on altcoins and tokens that are listed/delisted on the Huobi exchange.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. FTX – Coinbase Alternative for Derivative Trading

FTX crypto exchange

FTX and Coinbase are both user-friendly, deeply liquid, and highly reputable crypto exchanges. The two also share a host of similar features – which informed our decision to feature FTX on our list of best Coinbase alternatives in 2022.

For starters, they are both multi-platform - available as a web trader and mobile trading apps. The two exchanges integrate a host of educational, market research, trading, and risk management tools on both platforms. FTX, however, integrates more advanced trading – some of which aren’t even available on Coinbase PRO. It especially stands out with the Quant zone feature, where you can create and launch an auto-trader.

FTX could also be considered feature-rich as it integrates more investment options than Coinbase. For starters, FTX integrates an NFT marketplace. It also features a staking platform and an OTC marketplace. Further, the Sam Bankman-led exchange allows its users to interact with leveraged tokens and crypto options and participate in Initial Coin Offerings at the FTX IEO center.

FTX also maintains more competitive crypto trading fees – than both Coinbase and Coinbase PRO trading platforms. Like most of its crypto exchange peers, FTX charges crypto traders a maker/taker fee of between 0.2% and 0.00% of the trade amount – based on their 30-day trading volume on the exchange. This is in contrast to the complex fee structure on Coinbase and the maker/taker fee of between 0.6% and 0.00% charged on Coinbase PRO – as high as 3x the FTX fees.

Further, FTX launched its own utility coin – the FTT token – that comes in handy in lowering trading costs on the platform. You qualify for a transaction fee discount of between 3% and 60% depending on the amount of FTT tokens you hold. Holding more FTT tokens also warrants you such other privileges as access to the FTX VIP class.

We must also add that FTX is more dynamic and has been faster in integrating more trading instruments and investing opportunities. In addition to continually expanding its crypto offering and supporting staking and IEOs, FTX is also working on introducing tokenized stocks and ETFs to the platform.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

6. Kraken – More Secure Coinbase Alternative

kraken crypto exchange

Kraken and Coinbase share host similarities. First, they are some of the oldest and most reputable crypto exchanges, having launched in 2011 and 2012, respectively. Secondly, they appeal to beginner and expert traders by running basic and PRO trading platforms. Further, they have the buy crypto instantly feature, which appeals most to beginner traders.

In addition to these similarities, Kraken has a few aces in the sleeve that give it a competitive edge over Coinbase. These informed our decision to feature it among the best Coinbase alternatives.

For starters, Kraken is the more secure crypto exchange. While both exchanges provide crypto custody services and hold client digital assets in ultra-secure offline vaults, Kraken has never been hacked. The same cannot be said of Coinbase and its app-based wallet.

Additionally, Kraken is transparent with the cost of trading on its platform and maintains more competitive fees. When spot trading on Kraken, you will pay a maker/taker fee of between 0.2% and 0.00%, which is lesser than the complex trading fee charged on Coinbase. On Kraken PRO, the maker/taker fee ranges between 0.26% and 0.00% against the 0.6% and 0.00% charged on Coinbase PRO.

Further, both crypto exchanges are working on expanding their platforms and integrating additional trading instruments. For instance, both feature an NFT marketplace and support crypto staking. In addition to these, however, Kraken operates a crypto dark pool. This appeals to high-volume traders who wish to buy or sell any crypto pseudonymously and at the most competitive prices. It is a separate invisible order book where neither the buyer nor seller knows the other party’s trade volume or price.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

7. KuCoin – Provides Traders with a Larger Variety of Low Cap Altcoins

kucoin crypto exchange

Like all the other Coinbase alternatives we have discussed above, KuCoin has its fair share of similarities with the Brian Armstrong-led company. For starters, both feature user-friendly trading platforms, appeal to beginners, are multi-platform, and commit to the safety of client digital assets. 

In addition to these, KuCoin integrates a few more features that help it stand out and feature on our list of best Coinbase alternatives.

For starters, KuCoin gives its platform users access to a wider range of cryptocurrencies and crypto trading pairs. While Coinbase lists a little over 200 coins, KuCoin supports 600+ crypto assets and 1000+ trading pairs. These range from the most popular coins like BTC and ETH to the more affordable small cap tokens.

KuCoin is also more transparent and competitive when it comes to crypto trading fees. When you buy crypto on the exchange, you will only pay a maker/taker fee of between 0.1% and 0.00% - depending on your 30-day trading volume on the exchange. This is cheaper than the maker/taker fee charged on Coinbase Pro. And if you choose to settle this transaction fee with KuCoin’s native KCS token, you qualify for a 20% discount.

Further, while both KuCoin and Coinbase have integrated Staking and Lending DeFi programs, KuCoin maintains more competitive rates. Coinbase pays up to 5.75% APY interests for cryptos staked on its platform. KuCoin, on the other hand, pays 22% APR for staked KCS tokens and up to 300% for the rest of supported crypto assets.

The KuCoin trading platform also integrates more features than the Coinbase exchange. These include support for margin trading, crypto futures trading, and a wide range of free trading bots that anyone can use to automate their crypto trades. Additionally. KuCoin integrates a peer-to-peer trading platform that doesn’t charge transaction fees.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Factors To Consider When Choosing The Best Coinbase Alternative In 2022

Coinbase shot to prominence due to its deep liquidity, support for popular cryptocurrencies, and provision of free crypto custody services to its clients. In the recent past, however, more effective and promising crypto trading platforms that seek to dethrone Coinbase as the preferred exchange have cropped up. And most have integrated additional features that they hope will make them more appealing to crypto investors and traders.

But what should you look for when searching for the best Coinbase alternative? We have identified five features that you should never compromise on and which every top Coinbase alternative discussed above has:

  • Safety and security: Your preferred Coinbase alternative must commit to protecting your personal data and crypto assets. It should provide users with ultra-secure crypto custody services and insurance. If it has been hacked before, check the extent of the hack and how it was addressed.
  • Competitive fee: A good Coinbase alternative should also maintain transparent and highly competitive crypto trading fees.
  • Trading volumes: Your preferred Coinbase alternatives should also be deeply liquid. This is important as it ensures your large buy and sell orders fill quickly at minimal to no slippage.
  • Range of supported crypto: A top Coinbase alternative should also feature a healthy range of crypto assets and trading pairs. They should also support a decent number of coins on their staking and lending programs and offer competitive rates.
  • User-friendliness: The last thing you want is to register on a platform with a complex user interface, especially if you are a beginner or intermediate trader. The best Coinbase exchange should have a user-friendly, navigable, and highly intuitive trading interface.

What Are The Advantages Of Using Coinbase Exchange?

In the 10 years that Coinbase has been around, it has extended its services to investors in 100+ countries. It has also onboarded close to 60 million crypto traders, whose trade activity makes it the second most liquid crypto exchange.

What do these crypto traders and investors like about trading on Coinbase? We singled out five things that you, too, would like about Coinbase:

  • Beginner-friendly: Coinbase is one of the most beginner-friendly crypto trading platforms out there. It has a basic and easily navigable interface and allows anyone to buy crypto instantly.
  • Low trade minimums: Coinbase also endears itself to crypto traders because of its low deposit/trading minimums. You can start buying any crypto with as little as $2 on Coinbase, with no minimum deposit limit.
  • Support for a wide range of payment methods: Coinbase is also preferred by most traders because it supports deposits from all the popular payment methods – including PayPal and bank cards.
  • Passive income generation: Long-term investors also like Coinbase because it allows them to create more income streams through staking and lending.
  • Secure: Coinbase is also preferred because of its no-compromise stand on the safety of client deposits. It stores 98% of coins left on the exchange-based wallet offline and ensures the remaining 2%. Most of the reported hacking cases have largely been perpetuated against individual investor Coinbase wallet apps.

What Are The Disadvantages Of Trading On Coinbase?

As is the case with any other business, several complaints have been lodged against the Coinbase exchange. Here are some of the most common things traders didn’t like when interacting with Coinbase:

  • Complex fee structure: Coinbase has long been accused of maintaining a complex trading fee structure for its basic account. It has also been accused of charging high trading fees on its Coinbase PRO account.
  • Low-interest rates: Coinbase is accused of paying low interest and rewards for crypto and tokens staked on the platform while charging uncompetitive rates on crypto loans.
  • Slow customer support: Coinbase maintains rather sluggish customer support. They are slow to respond to or address customer queries and complaints.

Conclusion - Best Coinbase Alternatives 

Coinbase, though reputable and multi-regulated, has its fair share of limitations. For starters, it maintains rather high crypto trading fees. It also pays low interest on staked crypto and maintains a sluggish customer support team.

Relatively new and more dynamic exchanges have long overtaken it with regard to the number of supported cryptocurrencies, integrated features, and commitment to the security and safety of user data and digital assets.

Looking for the best Coinbase alternative today? We recommend registering a trader account with the user-friendly and ultra-secure eToro. It supports a wide range of deposit/withdrawal options, lists all the popular coins and tokens, and integrates copy and social trading tools.

eToro - Best Coinbase Alternative Platform To Buy Cryptocurrencies

eToro cryptocurrency trading

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

FAQs About The Best Coinbase Alternatives

What is a better exchange than Coinbase?

We have discussed 7 of the best Coinbase alternatives in this crypto exchange guide. Overall, however, we would recommend using eToro if you are after an exchange that’s better than Coinbase.

Who is Coinbase’s biggest competitor?

At present, Binance can be said to be Coinbase’s biggest and most formidable competitor. It just dethroned Coinbase as the leading Bitcoin trading platform.

What wallet is better than Coinbase?

Several wallets outmatch the level of security offered by Coinbase wallets. However, we recommend using eToro or Kraken for exchange-based wallets – both have never been hacked.

What exchange is safer than Coinbase?

We recommend the eToro exchange-based wallet. Like Coinbase, it stores client digital assets in offline vaults. But unlike Coinbase, it has never been hacked. eToro also maintains relatively higher insurance cover for client accounts. 

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