What exactly are crypto exchanges, and why is it worth storing your crypto assets within them.
Best Crypto Exchanges
Cryptocurrency trading across the world is undoubtedly expanding, rising from a niche financial asset among internet communities to a semi-mainstream phenomenon in a mere matter of years.
Everyone wants in on this potentially revolutionising aspect of the financial market, but the fact remains that it's not exactly the most accessible industry to get involved in — whether that's down to the significant amount of knowledge needed to thrive or simply the lack of understanding of how to get a foot in the door.
For instance, as for the latter point, it's not particularly easy to find a reliable and trustworthy crypto trading platform if you don't know what makes a specific exchange high quality.
Just look at some recent examples, such as the FTX trading platform — this was widely considered one of the best crypto exchanges available to investors until it was discovered the owners had been secretly trading with customer assets, ultimately going bankrupt and costing users millions of pounds/dollars in total.
Furthermore, it can be an especially daunting task if you're based in the United Kingdom due to the litany of regulations the platforms must follow to legally operate within the country.
Now, while the crypto market has certainly seen exponential growth within the last few years, there are actually relatively few crypto trading platforms that are based specifically in the UK. So, in general, your best bet is to find a cryptocurrency exchange that's compliant with UK laws but perhaps based primarily overseas.
Still, throughout this article, we'll be exploring some of the best crypto exchanges, UK and beyond. We will cover their features, what makes them worth signing up for, and, of course, what their pitfalls are, too, so you can make an informed decision before you set up a crypto exchange account.
Before that, though, let's go through some of the fundamentals — what exactly are crypto exchanges, and why is it worth storing your crypto assets within them?
*eToro Disclaimer: Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
|1. Crypto.com||★★★★★||Click Here|
|2. Gemini||★★★★★||Click Here|
|3. Coinbase Pro||★★★★★||Click Here|
|*4. eToro||★★★★★||Click Here|
|5. KuCoin||★★★★★||Click Here|
What Are UK Crypto Exchanges?
Let's begin with a simple definition of what a crypto exchange in the UK actually is.
In theory, they're actually fairly easy to understand because they work the same way regardless of what country the exchange is based in, essentially just being an online platform that enables investors to trade various types of cryptocurrencies.
They basically act as intermediaries that facilitate buyers and sellers exchanging different types of digital assets. This isn't exactly a concept that's unique to crypto, either, as you've probably heard of these kinds of platforms being used in other financial industries, such as Forex trading or the stock market.
When you sign up for one of these exchanges, you enter a marketplace where you're able to convert any traditional fiat currencies, such as British pounds (GBP) or US Dollars (USD), into cryptocurrencies like Bitcoin or Ethereum, and vice versa, too.
Put simply, these crypto exchanges act as a kind of gateway into the fairly vast world of digital currencies, and their main utility is the convenience and accessibility they offer to both advanced traders and novices alike.
How Do Cryptocurrency Exchanges Work?
Once you decide you're ready to get started in the crypto space, you're likely going to find the whole process quite jarring and even slightly off-putting. In reality, though, the process of beginning your crypto journey can actually be broken down into a few simple steps.
That's not to say it's simple to become a profitable trader — far from it. It's just not as complicated to get your account up and running and navigate through all the various menus as it might initially seem.
1. Making an Account
First off, you're going to need to create an account on the platform before you can execute any trades. This is simple enough as it just involves providing the platform with the necessary identification and personal information.
The only thing worth mentioning for this step is that you'd never want to divulge your private information with an untrustworthy or otherwise relatively unknown platform, but we'll address this in more detail later in the article when we're discussing what the best crypto exchange is for making trades.
2. Funding Your Account
Once you've completed the verification process, bearing in mind that it could take a few days for the exchange to review and accept your application, you'll now be able to deposit funds into your crypto wallet, usually via wire transfer (as is the case for crypto platforms such as Coinbase).
If you're a novice trader and are unsure what these are, it's essentially a kind of digital storage for all your crypto holdings, not dissimilar to how an online bank account works.
This kind of wallet, where it's stored on an online platform, is known as a hot wallet — not to be confused with a cold wallet which allows you to store your crypto assets in an offline, physical device instead.
While it's true that hot wallets are inherently a bit riskier in comparison to cold wallets due to being connected to the internet (and therefore being slightly more vulnerable to security threats), you shouldn't have anything to worry about if you've chosen a reputable cryptocurrency exchange.
3. Trading Crypto
Now that you've deposited some funds onto the platform, you're able to explore their marketplace, where you'll finally be able to place orders to buy or sell crypto. There are usually some trading fees involved in this process, the size of which typically depends on how large an order you've placed.
As such, don't be surprised if you see your account balance (in whatever fiat currency you've deposited) decrease slightly more than the amount of cryptocurrency you've purchased.
In essence, the exchange will basically be matching whatever orders you've placed, and then they facilitate the transaction, transferring the digital currency between whoever is buying and whoever is selling.
4. Withdrawal/Exit Plan
Finally, you'll always want to ensure you have a clear path to exiting the platform with your crypto after you've made some traders.
There are a few routes you can take here, as many people (with fairly non-substantial account balances) prefer to keep their currency on the platform for easy access, but some of the more advanced traders might prefer withdrawing their cryptocurrencies off the platform altogether.
In terms of withdrawing, this can either be to a separate crypto wallet on another crypto trading platform, or it can be to an aforementioned cold wallet for safekeeping.
As with the trading fees, just make sure you're aware of the withdrawal fees associated with the platform you ultimately choose, as it can be fairly discouraging to lose a significant chunk of your funds to the exchange.
Best UK Crypto Exchanges — Main Features
And that's more or less how to get set up with cryptocurrency exchanges! Still, there's obviously a lot more you can expect with one of these platforms than we've currently mentioned, so let's take a look at some of the main features you can expect with crypto exchanges in the UK.
It goes without saying that the best UK crypto exchanges are all going to prioritise the security of their user funds and personal information above all (unlike Sam Bankman-Fried of FTX infamy, for instance).
So, how does this look in practice? Generally speaking, each crypto exchange or investment platform is going to employ its own form of security protocols, but the most common methods are usually things such as encryption and two-factor authentication (2FA).
In addition, cold storage of funds, like we mentioned earlier, isn't something strictly limited to the investors — it's also employed by most of the reputable exchange platforms, too, as a means of protecting their own crypto or fiat reserves.
Furthermore, while it's not exactly standard practice nor a requirement, some of these investment platforms might also implement measures such as withdrawal whitelisting, which essentially allows the user to specify a pre-approved wallet address they want for added security.
And lastly, just to add that extra amount of peace of mind to their users, a lot of these exchanges will also offer some form of insurance coverage in order to protect user funds in the rare case of a security breach.
Obviously, this is a last resort failsafe as it's highly unlikely some of the more mainstream (and therefore best and most secure) are going to be hacked, but it's nice to know anyway since you're potentially going to be storing thousands of pounds worth of assets on their platform depending on your trading size.
For any of the more experienced and adept traders reading this article, accessibility isn't just a feature that solely benefits the new traders. You can have all the expertise and insight there is to have about cryptocurrency, but who would want to use a platform that's clunky and awkward to navigate?
All of the top crypto exchanges tend to invest in fairly intuitive platforms that are not only easy to operate but actually alleviate some of the stress of trading thanks to their simplicity. As a result, the platform becomes easy for new and experienced users to execute trades, view their portfolios, and generally have straightforward access to all the information they need.
Furthermore, you'll often see things like user-friendly charts and graphs that can be used to track the performance of various cryptocurrencies, as well as real-time market data (dating years back) to help investors make far more informed decisions for their trading strategy.
What's more, some, but not all, platforms also give the user an opportunity to customise their own dashboards to personalise their trading experience and ultimately prioritise the information that matters most to them.
For instance, say you have a list of your favourite cryptocurrencies; the ones that are consistently profitable for you to trade or that you find have fairly predictable price action.
KuCoin, for example, a popular crypto exchange, gives you the opportunity to add specific crypto assets to your ‘watchlist', a handy shortlist that gives you streamlined access to them so you can monitor and trade them with ease.
As mentioned, this isn't an available feature on every crypto trading platform, but it's little additions like this that separate the quality exchanges from the average ones.
Wide Range of Cryptocurrencies
You've likely heard of the classic and most famous cryptocurrencies, Bitcoin and Ethereum. But, generally speaking, you'd be hard-pressed to find an exchange that doesn't offer trading pairs with these crypto assets — it's typically the bare minimum.
In the UK and elsewhere in the world, the best crypto exchanges go far beyond offering just the major cryptocurrencies; they tend to provide a diverse and growing selection of altcoins, including some of the more promising and emerging projects.
As an investor, this is exactly what you're looking for. While you can usually bank on the name recognition and past performance of Bitcoin and Ethereum to make a quick profit, the real money is often made by exploring different investment opportunities, not to mention the added benefits of diversifying your portfolios.
As touched on, most of these exchanges are regularly updating their listings as well so they can always stay at the forefront of a seemingly ever-expanding market. Ultimately, this lets them provide traders with access to both new and innovative cryptocurrencies right as they're emerging.
For instance, depending on which platform you're trading on, many crypto exchanges offer relatively new additions to the crypto space, such as DeFi assets and NFTs.
Being able to access and ultimately invest in new assets such as these can be a game-changer for investors, essentially letting you get in on the ground floor before they receive slightly more mainstream adoption.
Of course, while these are fairly risky investments due to the lack of long-term data supporting their potential longevity, early adopters of certain DeFi projects and NFTs have the opportunity to see remarkable returns on some of their investments.
Liquidity and Trading Options
Have you ever heard the term ‘liquidity' thrown around in the world of crypto? This basically refers to how easy it is to buy or sell certain cryptocurrencies without leaving a major impact on their market price.
Cryptocurrency exchanges throughout the world generally strive to keep quite high liquidity so that their users are able to quickly execute all of their trades at fair prices — that is, the current market value of whatever crypto asset they're trying to trade.
There are a few ways to do this, but these platforms mostly try to establish partnerships with liquidity providers, market makers, and other kinds of institutional investors in order to keep deep order books and generally ensure a smooth trading experience for everyone on their exchange.
Aside from liquidity, these exchanges also offer various different trading options for their customers — think of options such as spot trading, margin trading, and even some of the more risky options like futures contracts so they can ultimately cater to the diverse needs and preferences of different kinds of traders.
Advanced Trading Tools and Features
Most of the cryptocurrency exchanges we'll be reviewing later in the article provide their users with an intuitive dashboard, but the best exchanges in the UK also offer fairly advanced trading tools and features that can generally enhance the trading experience.
Realistically, some of the more advanced tools will be fairly confusing for some of the more novice investors that are just getting started, but that's exactly why you're often given tutorials and additional support upon accessing them for the first time.
With features such as limit orders, stop-loss orders, and even more complex options like trailing stop orders, you're able to automate a lot of the work based on whatever conditions you specify.
Whether you're a day trader or someone who likes to leave their trades open for a few days at a time, these are just some of the ways you're able to have more control over your investments without the constant monitoring that comes with a volatile market.
To make things even better, you're often provided with additional charting tools that are equipped with technical analysis indicators and tools for you to draw on and write your own personal notes. This basically means you are able to study market trends in order to gain an extra level of insight you might've previously not had access to.
Still, that's not all they offer, either. Some platforms that are more geared towards providing a smooth experience for novice investors go the extra mile by offering social trading platforms or copy trading.
eToro is a great example of a crypto exchange that lets you do this, essentially allowing you to follow and emulate trades taken by highly successful traders so you can learn from their expertise and potentially boost your profits, too.
Adherence With UK Law
Still, among all of the features you can expect to find in cryptocurrency exchanges, there's one that's perhaps most important of all — strict adherence to all the relevant regulatory requirements in the UK.
Naturally, this is a fairly make-or-break trait for a crypto platform to have, as without this fundamental feature, they're obviously not going to be able to operate within the country. Generally speaking, though, these exchanges understand the importance of operating within these boundaries, so they typically prioritise compliance above all.
It's not just so they can run their business without any hassle from the UK government, either — it's generally so they can ensure that their users are protected and feel safe using their platform.
How Do Cryptocurrency Platforms Maintain Compliance in the UK?
There are actually quite a few platform features that need to be followed for these companies to fully comply with UK law, but it mostly starts with registering with some of the regulatory bodies at the heart of the financial industry, namely the Financial Conduct Authority (FCA).
Complying With the Financial Conduct Authority
Basically, whenever a business, in this case, cryptocurrency exchange platforms, looks to enter the financial services industry within the UK, they've got to follow the FCA registration process.
This means first having to go through various, fairly thorough assessments in order to guarantee that the exchange is meeting the specific criteria and standards they set for things like security, transparency, and customer protection, too.
Obviously, the more thorough these assessments are, the safer they are for traders in the UK to use.
And by successfully obtaining the seal of approval by the FCA, only the best and most reliable exchanges prevail, which generally helps them gain credibility and trust among their users (since they're now operating under the supervision of a recognised and long-standing regulatory body).
This is often used as a selling point for these crypto exchanges, too, as it demonstrates their distinction from some of the sketchier crypto platforms out there, of which there are many.
Lastly, because the platform is now under the FCA's oversight, it means that they have to comply with any of the new regulations or updates that are issued by the authority.
It goes without saying that constantly adapting to new regulatory requirements can only help the platform in its efforts to upkeep a safe and compliant environment for its users to trade in, so it's a win-win for everyone involved — the crypto exchange gets to continue operating in the country, and the traders are always receiving the most effective security measures available to them.
Implementing Safety Features
So, what are some of the specific schemes that these trading platforms need to implement in order to stay compliant with the FCA?
Let's take a look at some particular examples, Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures — two practices that are necessary for verifying the identity of their users and preventing illicit activities from being performed on their platform.
If you're unfamiliar with these terms, they're basically a requirement for users to provide their platform with valid IDs and proof of address when they're going through the registration process.
The aim here is that by conducting due diligence, the exchanges are able to create a much more secure environment, which helps contribute to the overall integrity of the crypto ecosystem.
Back in the earlier days of crypto, trading platforms used to allow their users to make accounts, deposit funds, and begin trading without ever having to show some form of ID.
Now, while this does generally align with some of the core tenets of the cryptocurrency market, i.e. general anonymity and decentralisation, it actually opens the door to fraud and other illegal activities, of which the crypto space is rampant.
So, identifying all the users that are trading on their platform ultimately allows the exchange to prevent any unauthorised account access, which ensures that only legitimate individuals are able to handle funds.
Though it's certainly a controversial feature among some of the crypto purists — one that is not actually enforced worldwide — it is typically seen as a net positive for the industry, which is exactly why it's a legal requirement by the FCA and a primary feature of the best crypto trading platforms in the UK.
As for the Anti-Money Laundering regulations, their main objective here is to prevent money laundering from being as prevalent as it is within the cryptocurrency industry.
As mentioned earlier, anonymity is a huge factor in what made cryptocurrency such an interesting prospect in the first place, and as such, it's unfortunately made crypto platforms a ‘safe space' for money laundering.
Money that's been generated through drug trafficking or fraud, for example, can be obfuscated through mixing services that make it incredibly difficult for authorities to trace the original source of where the funds came from.
So, once the crypto exchanges are able to verify their customers' identity and monitor some of their financial activities, financial regulators, like the FCA, can now spot suspicious transactions and report them to relevant authorities for further investigation. It's not a flawless strategy, but this does, at least somewhat, help to disrupt certain money laundering networks.
Let's wrap up this lengthy but vital section for understanding what separates a good crypto exchange from an untrustworthy one. New cryptocurrency platforms pop up quite regularly throughout the world, and as we mentioned earlier, they're not always going to be based in the UK.
Still, as a UK resident, it's paramount that you choose a crypto exchange that adheres to UK law so that you can have confidence in the overall legality and legitimacy of their platform.
Plenty of crypto exchanges don't have KYC or AML requirements, and while that technically makes them a more authentic crypto trading experience, it just doesn't offer you the same security you would have otherwise.
Don't worry, though; you'll still be able to enjoy all the benefits of trading cryptocurrencies — you're just operating within a safe, regulated framework that ultimately prioritises consumer protection above anything else.
Pros and Cons of Crypto Exchanges in the UK
Let's recap some of the main features you can expect from using a high-quality cryptocurrency exchange.
Of course, there's potential to make a lot of money from one of these platforms, but we would be doing you a disservice if we didn't also run through some of the disadvantages.
Each individual platform that you use will come with its own set of pros and cons, so we'll mainly be discussing the crypto market in general here, with more information regarding specific crypto exchanges coming later in the article.
1. Potential for High Returns ✔️
Once you have a firm understanding of what you're doing and how to operate the platform, crypto exchanges present a massive opportunity for returns — especially given the volatility that comes with the market.
Though you'll need a combination of both careful analysis and decision-making, there's no reason why you can't become a successful crypto trader by using one of these exchanges.
2. Accessibility and Convenience ✔️
Undoubtedly, one of the more significant benefits that crypto exchanges bring to the table is their sheer convenience. Unlike the stock market, which closes and reopens at a certain time, the crypto market never sleeps.
This ultimately gives users the ability to engage in trading whenever it works best for them. And to top it off, almost every major crypto platform provides a fairly intuitive mobile application, too, giving you the opportunity to trade on the go, which opens even more doors for you to get involved in cryptocurrencies.
3. Diverse Investment Opportunities ✔️
As we mentioned earlier, you'll seldom find that exchanges only offer their users the chance to trade the top ten crypto assets (in market cap); they'll always offer a fairly diverse range of options for you.
If you're entering the world of crypto, there's a high chance you might already have some experience with more traditional financial assets, like stocks and shares, and are coming to the crypto market in search of diversification. Fortunately, you'll have the chance to explore various investment options beyond some of the more traditional assets with these exchanges.
4. Global Market Access ✔️
Though we're focusing more on UK crypto trading platforms in this article, the beauty of these exchanges is that they can connect traders from all over the world, which gives millions of people access to a global market.
Because of this interconnectedness, there are actually quite a few opportunities among these platforms for arbitrage. If you're unfamiliar with this term, it essentially refers to being able to capitalise on small (but adds to be significant) price disparities between various different exchanges, fully maximising your profits.
1. Volatility and Risk ❌️
Depending on how you look at it, the highly volatile nature of the crypto market can be both a pro and a con. Yes, volatility can lead to some pretty substantial gains, especially if you're scalping with short-term trades, but it naturally means you're exposed to rather significant risks, too.
Remember, for every winner in the crypto market, there's a loser, and there's no reason why this can't be you if you're unprepared or reckless in your trading strategy.
2. Regulatory Uncertainty ❌️
We talked earlier about the impact of regulatory bodies on the crypto market in the UK, and as the space continues to grow in popularity, these regulations continue to evolve.
Just look at the popular cryptocurrency exchange, Binance, for instance. Binance was previously a solid crypto exchange for many UK residents, but following further concerns about the ease with which the platform can be used for money laundering (a concern we addressed earlier), the FCA has prevented the platform from operating within the UK.
Naturally, a constantly evolving regulatory environment is going to negate one of the main advantages of crypto exchanges — their accessibility. As such, it's paramount for traders in the UK to stay informed about new regulations within the country and to migrate to other trading platforms if necessary.
3. Security Concerns ❌️
Furthermore, though pretty much all crypto exchanges implement some form of security measures, there's always a concern about hacking and fund theft. Like we touched on earlier, even some of the most established and reputable exchange platforms, such as FTX, can turn on their users and cause financial catastrophe.
Of course, this is obviously not a common occurrence — far from it. Still, as an investor, it's very much in your best interest to stay vigilant and fortify your accounts with tools such as cold wallets (also known as ledgers), thereby minimising some of the potential risks.
4. Lack of Investor Protection ❌️
As a fairly stark contrast to more traditional financial markets, the crypto sphere is notorious for falling short in terms of investor protection. In the unfortunate event of a security breach or even an exchange failure, there are typically very few avenues investors can take for recourse or recovery of their lost funds, as outlined in the example above.
Because of this inherent and seemingly unavoidable risk, the importance of choosing a major exchange that's fortified with plenty of security measures is only further underscored.
Best Cryptocurrency Exchanges in the UK — Reviews
Let's take a look at some of the most reliable crypto exchanges available to investors in the UK.
Kicking things off for these reviews, let’s take a look at Crypto.com, which, in particular, is one of the best options out there in terms of mobile trading.
In fact, rather unusually, it’s worth mentioning that their platform is actually only available for iOS and Android users — you can’t use their platform on a PC, for example.
This isn’t exactly a benefit, as you are a bit less limited in where you can use their platform, but it does, however, mean that they put a lot of time into optimising their apps for generally positive user experiences, so it does have that going for it.
Moving on to the advantages, one of the most notable things here is just how diverse all the different ways you can deposit money are — whether you’re using a debit card or just a traditional wire transfer, you’re not limited to one specific method.
If you’d rather opt for the latter option, this is definitely the better choice as you’re able to do so without incurring any additional fees for deposits, but it’s still worth noting that you’d normally have to wait a couple of days for the funds to actually show up in your account.
As for the other option, debit cards do have a slight edge as you’re able to make instant deposits — it’s still the less recommended option in general, though, due to the 2.99% transaction fee that’s attached to it, which can obviously be significant if you’re depositing a large amount at once.
Still, one of the major pull factors of Crypto.com is just how many cryptocurrencies they support — a total of over 250, which naturally makes it one of the most versatile options out there.
Furthermore, trading commissions are obviously one of the biggest concerns (and also differentiating factors) between crypto exchanges, so the fact that Crypto.com only charges around 0.0750% for every transaction is definitely noteworthy.
Lastly, and you might take this as either a major deterrent or as fairly inspiring, but Crypto.com was hacked in 2022 and lost around $34 million.
Now, while this would definitely turn some heads, they’ve actually responded incredibly amicably and now have far greater security measures — generally making them one of the safest platforms currently available on the market.
Next, let’s take a look at Gemini, which, unfortunately, unlike Crypto.com, does have a relatively high fee structure, but it’s still one of the best crypto exchanges in the UK.
In fact, like most of the options on this list, Gemini wasn’t even founded in the UK; it’s an American exchange that was brought here in 2020.
Having said that, of course, Gemini is still highly regulated and adheres to all the relevant guidelines set by the FCA, whether that’s by deploying strong security measures or being a spot-only trading platform.
To explore security a little bit more, it’s worth mentioning that they actually offer crypto insurance coverage, so in case any particular risks or security breaches are made, all of your funds will be completely protected.
Aside from this, though, you’re also obligated to use two-factor authentication when using their platform, so you’ve got another layer of account security there as well.
So, as you can see, Gemini takes security pretty seriously on its platform, and this is also evident in the fact that it stores a significant portion of its digital assets in cold storage, which essentially means they’re highly protected in case there are somehow still some online vulnerabilities within their site.
Still, while we’ve talked a lot about how impressive some of Gemini’s security protocols are so far, it’s worth addressing that it is generally a pretty expensive platform to use. Take the fact that they charge a 3.49% fee on any debit card transactions you make, for instance, as this obviously is a decent leap from the 2.99% you’d find with Crypto.com.
Speaking of Crypto.com, remember how they charge just 0.0750% in transaction fees? Well, you’d have to pay around 1.49% with Gemini, which is naturally a massive difference and can have huge impacts on the amount of money you’re taking home if you end up investing quite a lot with them — or even if you just tend to trade quite frequently.
On a more positive note, though, you are able to choose from over 90 different coins on this platform, and while that’s not exactly the most diverse selection, it covers all the major ones and means you’re a bit less likely to lose money on some of the more risky alt-coins out there.
3. Coinbase Pro
Among all the options on this list, Coinbase is most likely one of the most well-known and widely used options out there due to its simplicity.
Now, it's worth mentioning that although you can buy and sell crypto on this platform with ease — not to mention the low trading fees/withdrawal fees — Coinbase is primarily built for spot trading rather than futures or margin trading.
While this is certainly a safer way to trade cryptocurrency, it doesn't provide quite the same level of functionality in comparison to, say, eToro, which offers far more trading methods to its users.
Still, it's Coinbase's interface and ease of use that really make the platform stand out. Though not the most extensive, it also supports quite a wide range of digital assets, including some of the most popular coins like Bitcoin and Ethereum.
For anyone that's more interested in investing passively, Coinbase also offers a fairly unique feature called “Coinbase Earn”. In essence, this basically lets users watch a few educational videos in exchange for some free cryptocurrency as a reward.
While you shouldn't expect to retire from the amount of money you'll be earning, it's a great way to earn some beer money while also learning about the fundamental tenets of the coins you'll likely be investing in.
All in all, Coinbase is certainly not the most feature-rich platform out there, but it's as reliable as they come and offers a smooth and intuitive crypto investing experience for anyone looking to take a slower approach to trading.
Next on our list, we have eToro. eToro, in particular, has quite a few unique features of its own, namely its social trading features, which make it a great platform for both beginners and more experienced traders.
Let's take a look at one of their standout features, the “Copy Trading” function, where you can essentially mimic the trades of more successful investors.
For newcomers, specifically, this can be a fantastic way to gain some valuable insight from the experts by learning what makes them profitable traders — also allowing you to directly replicate their strategies.
Following on with the social theme, there's also a social news feed that gives users a chance to interact and discuss market trends with each other, which ultimately helps foster a sense of community on the platform.
Still, while there's plenty of utility in being able to replicate the trades made by more established crypto investors, this can act as a bit of a crutch at times that tends to breed complacency.
You'd never want to become too dependent on this kind of trading strategy as it can generally hinder your ability to learn from mistakes and carve your own experience-based knowledge.
Furthermore, while eToro offers plenty of features tailored to beginners, it's worth noting that their fee structure may feel somewhat high in comparison to other exchanges, such as Coinbase, for example.
Let's start off with one of the most standout and exclusive features offered by this crypto exchange, their native utility coin, known as KuCoin Shares (KCS).
Now, while some of the other exchanges available in the UK tend to only focus on the trading aspect of cryptocurrency, KuCoin actually goes the extra mile by rewarding its users in a few different ways.
This mainly comes in the form of distributing a portion of their daily trading fees back to anyone who has KCS in the crypto wallets.
Generally speaking, this is quite an exciting and cutting-edge way of delivering an incentive structure, something not too common with other crypto trading platforms. Not only does this create a rewarding experience for any of their loyal users, but it also gives you an incentive to engage with the platform in the long term.
What's more, the more KCS that you hold in your wallet, the greater the share of the exchange's revenue that'll be redistributed back to you. Naturally, this makes it quite a sought-after asset for any traders who are looking for additional benefits outside of regular trading profits.
Furthermore, KuCoin also has a platform known as ‘Spotlight', which essentially gives traders early access to some of the most promising blockchain projects and token sales available on their exchange.
Of course, there's usually some risk to the longevity of new crypto projects, but KuCoin carefully selects and vets all of these projects before listing them on Spotlight, so it's a lot less risky to invest in.
So, not only does this feature benefit traders seeking to get in on the ground floor of a new project, but it also helps the projects themselves gain more exposure and funding.
How to Choose the Best Crypto Exchange
Though there are plenty of considerations to make, we've compiled a couple solid features that are worth seeking out when choosing a crypto exchange.
We've mentioned the importance of some of these features earlier in the article already, so we'll just recap a few of the most important ones.
Educational Resources and Community Support
For beginners and even those who are more experienced, the importance of additional educational resources and community support can't be understated. Make sure you're choosing a platform that can offer additional support in the way of trading guides, tutorials, and market analysis tools.
Reputation and Trustworthiness
The reputation of an exchange generally plays a pivotal role in determining its overall trustworthiness. Whether it's reviews, testimonials, or just general feedback from other users on non-biased websites, try to gauge the exchange's reliability before signing up with them.
Furthermore, you might want to check whether the exchange has faced any major security breaches or controversies in the past and how they've handled them if so.
User Interface and Experience
Having an intuitive interface often makes all the difference when it comes to a stress-free trading journey, especially if you are new to cryptocurrency. So, make sure you compare the design, navigation, and overall user experience of a few different platforms to get a good feel for their accessibility.
Ultimately, while every one of the crypto exchanges we have covered on this list comes with its own quirks and features that make them unique, it means nothing if you are not properly equipped to trade in such a competitive and volatile market.
Before ever risking a substantial amount of money, make sure you ease yourself into the crypto world by starting off with a low account balance until you can build confidence and develop a personal trading strategy.
Remember, you won't be able to rely on Copy Trading features forever if you truly want to make impressive profits in this market, so always prioritise education before getting carried away.
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