Binance, Coinbase or Bybit? Which Cryptocurrency Broker to Choose? Do you have this doubt about which is the Best Exchange to use? We will explain to you exactly what we think about it.
Before knowing which of these three Cryptocurrency Brokers is better, it is necessary to understand what the purpose of an Exchange is and why you should pay close attention to where you put your valuable Money. After all, we recently had the fall of FTX: the second largest cryptocurrency exchange in the world!
Much has been debated about what is the best way to invest in the cryptocurrency market; certainly if you follow the news or have a minimal knowledge about bitcoin and altcoins, you know that there are risks of leaving your capital in brokerages and, the right thing would be to self-custody your cryptocurrencies.
The objective of a centralized exchange is to be the famous "gateway" to the crypto market, from which we can transfer our funds both to the DeFi market and to a hardwallet to hold. Some investors also trade (quick buy and sell) in these brokers.
Therefore, what we recommend to you is: be 100% owner of your digital assets. But of course, to get to this stage, unless you use the P2P market, you need to go through exchanges, be they Binance, Coinbase or Bybit; we want to tell you that this "mindset" that we are going to give you, will be useful for any crypto brokerage, ok?
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Have you used all three brokerages? If so, you will notice that all these exchanges have the main cryptocurrencies on the market, whether they are: bitcoin, ethereum, polkadot, cardano, litecoin, dogecoin, solana... Binance's differential, for example, is having a multitude of cryptocurrencies, after all, today, it is the biggest broker in the market.
When it comes to the futures markets, binance is the exchange that has the widest variety of cryptocurrencies to be "bet" for both rising and falling. It is far above any other broker in this regard. But its weak point is certainly the lack of transparency in relation to its funds and, also, there is the issue of Regulation, where the brokerage has been very strong! This is not something positive for users who seek privacy, after all, this is one of the goals of the cryptocurrency market: freedom.
Coinbase, on the other hand, in addition to being more transparent in relation to its funds and offering more "security" for being an American company, has a much smaller range of cryptocurrencies than binance (but still, there are many cryptoassets listed on this exchange ). Also, today, it is the second largest brokerage firm in the market and is proving to be quite solid.
Regarding fees, all exchanges are very similar, there is practically no difference! With the exception of the Bybit brokerage, which has zero fees in the spot market. All 3 brokerages have the two main stablecoins on the market, namely: USDT and USDC along with plenty of liquidity for when you want to sell your assets, without any headaches. Essentially when we talk about sharks and whales.
About Bybit, the main differential that we saw in it, in addition to the fact that there are no fees in the spot market, is about a very interesting tool in the futures markets: the easily malleable and practical to use stop-loss. Anyone who is a trader will certainly like this tool a lot.
Dear reader, as you know, in general, we do not recommend that you leave your funds in centralized exchanges, after all, the magic of cryptocurrencies is in the world of decentralized finance; but we understand their need to exist and both exchanges: Binance, Coinbase and Bybit, at the time we are writing this article, are great and meet our basic needs very well.
Especially if you want to buy a little bit of bitcoin every month and not worry about self-custody. So, can you choose any of the three that you identify with the most (and why not all three)?
Therefore, in our opinion, these 3 exchanges that we mentioned are the best on the market, and the difference between one and the other is very small, therefore, whichever one you use will suit you very well, essentially if your objective is whenever you can, transfer your funds to a Trezor or Ledger.
We recommend that you do minimal risk management and use more than one broker (if your goal is to trade and not hold) to minimize your losses. Other than that, if your objective is, like ours, the hold, as soon as you buy your bitcoin and ethereum, you can also transfer them to a hot wallet, okay?
We recommend reading: Is it Worth Investing in Cryptocurrencies?
Lucas Lippe
The idea of freedom is fascinating and Bitcoin gives us that in many ways. Explaining ideas of a decentralized web on the Bitcoin Lovers website.
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AMF Recommendations: There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of that savings. Do not invest if you are not willing to lose all or part of your capital.
