Coinbase vs Bittrex Crypto Exchange Comparison
Making Crypto Simple
Buying some low-cap altcoins seems like a reasonable idea if you’re just getting started in the cryptocurrency market and don’t want to sell all your real estate to buy a Bitcoin. But to make the first move on the market, you’ll also need a beginner-friendly exchange with a streamlined tool that won’t charge you more than you’ve bargained.
At first glance, there are so many digital coins that it may seem challenging to choose one that is both cheap and financially viable. But the fact that the crypto market is full of an incredible number of cryptocurrency trading platforms makes it much harder to choose the best crypto springboard.
Since it is rather difficult to rapidly sift through the profusion of cryptocurrency exchanges and analyze their features, I have done the groundwork for you and selected the exchanges that offer the most user-friendly platform and the best cryptocurrency purchasing terms. Coinbase and Bittrex are two online exchanges that I’d like to introduce you to first.
- The first crypto exchange for entering the stock market;
- Suitable for beginners and advanced traders;
- Coinbase Pro users enjoy 0.50% lower trading fees than the users of the basic Coinbase platform.
- Accepts fiat currency deposits;
- Deposits up to 250,000 USD are covered by FDIC insurance;
- Cold storage for 98% of the deposited funds.
- Somewhat high trading fees;
- Intricate transaction fee model;
- Staking ADA, ETH, XTM, or ATOM is not permitted in the state of New York;
- Creating an account is a lengthy process that calls for a lot of personal details.
- A highly secure and regulated crypto exchange;
- Designed by a team of seasoned fintech professionals;
- A user-friendly platform;
- Rich FAQ centre;
- Vast selection of trading orders and cryptocurrencies;
- Available in the USA (excluding several jurisdictions);
- It’s great for newbies and seasoned traders, but the focus is clearly on the latter.
- A lengthy user verification procedure;
- The exchange charges a withdrawal fee;
- No phone or live chat customer support;
- Customer service could use some improvement;
- Not available for the residents of Connecticut, New York, Hawaii, and Vermont;
- The abundance of complex options might be overwhelming for novice traders.
Coinbase vs Bittrex – How It All Started?
When it comes to cryptocurrency exchanges, few are as well-known or as accessible as Coinbase. According to CoinMarketCap, this trading platform, founded in San Francisco but with no formal offices, is the most dynamic crypto trading platform in the United States. All credits for initiating the Coinbase cryptocurrency effort back in June 2012 go to Brian Armstrong and Fred Ehrsam.
The two Airbnb and Goldman Sachs experts decided to leave their previous employers and embark on a new career path inspired by Bitcoin creator Satoshi Nakamoto and the groundbreaking blockchain technology he developed.
The consistent growth of the Coinbase exchange ultimately resulted in Armstrong and Ehrsam’s most significant achievement since the launch of their crypto initiative — Coinbase’s first public offering (IPO) on Nasdaq. By entering the stock market as the first cryptocurrency exchange ever, the exchange’s market capitalization shot up to more than $100 billion almost immediately.
Even though Coinbase supports around half as many altcoins as Binance does, traders still have a wide variety of options — beginner trading tools or advanced financial instruments for expert traders. If you’re just starting, try the simplified Coinbase platform, or if you’re an experienced trader, check out Coinbase Pro for the best results of your trading strategy.
Bittrex, which has been around since 2014, is one of the top cryptocurrency exchanges in the world. Located in Seattle, Washington, USA, the exchange handles more than $300 million in daily trades, according to CoinMarketCap.
The robust safety measures used by Bittrex Global have earned it a reputation as one of the most trustworthy cryptocurrency exchanges in the industry. Trading on this leading U.S. cryptocurrency exchange is for those who have seen the future of finance in distributed ledger technology and are ready to make a change. Bittrex’s creators wanted to be at the forefront of the newly developed crypto industry, so they focused on making the platform as efficient and safe as possible.
By utilising a highly effective and completely automated framework, Bittrex can provide its users with the shortest transaction processes in the business, which supports instant crypto purchases. The user interface of this platform also enables real-time updates to account balances, trades, and investments. Also, Bittrex’s trading interface and the quantity of assets it handles can be overwhelming for newcomers, despite the site’s relative ease of use. As a result, it may be generally preferred by the more seasoned crypto investors.
Bittrex vs Coinbase: The Best Crypto Exchanges Comparison
Opening an Account
To open a Coinbase trading account, you must satisfy a few requirements. To begin with, you must be over 18 to use Coinbase’s trading platform. In addition to your full name, email address, and phone number, the exchange will ask for your home country and the payment method you intend to use.
In addition, upon registering for a Coinbase account, you’ll be required to complete the KYC user verification process. Submitting private data is a mandatory part of this protocol, which we will investigate shortly. For example, you may be asked for proof of identity, such as a driver’s licence, ID card, passport, or similar document. It’s important to remember that U.S. passports are not accepted as a form of identification by Coinbase. Student cards issued by universities or medical facilities are likewise ineligible.
Bittrex is a highly regulated exchange that checks the identities of its users using a Know Your Customer (KYC) protocol before allowing them to make trades. Similarly to Coinbase, users from some countries may also be required to supply additional documentation upon signing up, such as a government-issued photo ID, passport, or driver’s licence.
Coinbase’s flagship service, the popular and streamlined cryptocurrency exchange, is what draws most users to the platform. The user interface of this platform is straightforward and uncomplicated, as its primary purpose is to provide assistance to individuals who are just starting in the cryptocurrency trading sector.
There are a few elementary trading strategies that allow novices (or about any crypto investor who values speed and easiness) to swiftly and effortlessly trade their preferred currencies. However, compared to the Coinbase Pro platform, Coinbase’s trading costs are much higher, even though it has a very easy-to-use trading platform for beginners.
As I mentioned before, the advanced features and benefits of the Coinbase Pro platform are an excellent fit for professional cryptocurrency traders. When upgrading to Coinbase Pro, experienced traders can access advanced tools and a wider variety of investment products. For instance, you’ll get exposure to the platform’s API keys so that third-party dApps can interact with your Coinbase account if you want to improve your way of investing in crypto even further.
When it comes to Bittrex, the advanced users of this platform have access to a wide selection of order and configuration options. The trading instruments range from the core order types to conditional categories with automated pre-setting, time-in-force trading orders, and much more. For those new to cryptocurrency trading, Bittrex also offers an Instant buy/sell option to purchase Bitcoin or any other cryptocurrency with a click of the mouse.
On Coinbase, the three primary cryptocurrencies that are exchanged are Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), with Bitcoin being the cryptocurrency that is traded the most extensively. Other cryptocurrencies that can be traded on the site include Bitcoin Cash (BCH), Ripple (XRP), Ethereum Classic (ETC) and around 50 more.
The fact that Coinbase intends to expand its support for new digital assets in the near future is bullish for the value of the company’s shares, which indicates that investors are optimistic about the exchange’s future.
When it comes to Bittrex, this marketplace aims to provide its customers with access to a wide variety of blockchain networks and digital assets. Each freshly created cryptocurrency must pass a rigorous screening process before being offered on Bittrex.
Bittrex presently supports over 400 different coins. This number includes Bitcoin (BTC) and stablecoins like Tether (USDT). In addition, the market offers its customers highly liquid order books. The outcome is that traders can effectively exchange different cryptos with minimal slippage.
The country in which you reside can have a significant impact on the payment methods available on Coinbase. This is because local and international regulations widely affect how the financial services of the platform can be delivered. On the same token, there are a wide variety of ways to make a deposit to your Coinbase account, including PayPal, bank transfers, ACH transfers, direct deposit, wire transfer, quick cash out to a bank account, Apple Pay, Google Pay, credit card/debit card payments, etc.
Coinbase Pro, on the other hand, does not enable using credit cards as a payment method to purchase cryptocurrency. Transactions made from your wallet or bank account and wire transfers are the only accepted payment methods for Coinbase Pro services.
If you are residing in a qualified country, Bittrex Global will automatically enable your account so that you can trade on USD markets and make deposits in USD. Into the bargain, your Bittrex trading account will accept deposits of any size made via wire transfer or credit card. One thing you should note here is that wire transfers on Bittrex have a lower minimum deposit requirement of $50 USD.
Trading Fees and Limits
Coinbase fees are consistently ranked among the highest in the industry. Namely, each trade on Coinbase incurs a charge, which is expressed as a percentage of the total amount exchanged and varies based on the value of the cryptocurrency being traded. In most cases, the fees range from $1.99 to $3.99, or 5% of the total amount transacted. In a word, a lot!
Coinbase also has costs associated with both deposits and withdrawals, with the exact amount fluctuating by payment type. Using a credit or debit card to fund a Coinbase account incurs the highest fees. The cost of this option comes in at 3.99% of the total purchase price.
Regarding trading costs, Bittrex strives to offer its customers some of the lowest possible rates. If you frequently trade over 30 days, your maker fees/taker fees on this platform might be as low as 0.00%. But, when you transfer your tokens from Bittrex to another blockchain, you’ll be subject to some network fees levied by the respective blockchain networks.
How Safe Are Coinbase and Bittrex?
Bank-level security is in place at Coinbase to protect customer funds and personal information. Also, about 98% of the user funds and private keys are stored securely in cold storage on this platform, which is subject to regulatory oversight. Moreover, Coinbase assembled a team of security guards to protect the physical location where customer funds and private keys are stored. Coinbase employs a Ph.D.-holding cybersecurity expert to keep the crypto trading platform’s architecture and functionalities safe.
In addition, Coinbase and Coinbase Pro offer two-factor verification, which can be activated via text message or the Google Authenticator app. Coinbase Pro lets you designate a unique withdrawal address to safeguard your cryptocurrency further. Your money is safer when sent only to whitelisted addresses in case of a hacking incident. But if a security breach does occur, Coinbase secures your U.S. Dollar deposits of up to $250.000 (not your cryptos) with FDIC insurance.
Bittrex prioritizes the safety of its trading platform over anything else. The exchange uses a versatile and multi-stage storage technique to ensure that the vast majority of funds are kept in cold storage. Bittrex also suggests that all users should enable two-factor authentication (2FA) on their trading accounts for increased security.
Furthermore, having offices in both Liechtenstein and Bermuda means that Bittrex Global is firmly established inside the most stringent regulatory structures that supervise international financial systems of the highest standard. The exchange is legitimate and lawful in Liechtenstein and Bermuda.
To begin with, Coinbase features a comprehensive knowledge base where you can find crypto guides on many topics, including how to get started with trading on this platform, the platform’s service and product roadmap, and fundamental crypto and blockchain tutorials.
Moreover, if you’re having some issues with the platform or any of its functionalities, you can submit a request to customer support via a chatbot or an email ticket to facilitate communication with Coinbase. The exchange offers a live chat option open 24/7 if you need immediate assistance with your question.
There’s also a toll-free phone number where you can talk to a customer support representative if you prefer this communication. Lastly, you can get in touch with Coinbase’s helpful employees via some of their social media channels, like Twitter, if you’re more into the social network. You really can’t beat the user-friendliness of this exchange.
Bittrex is similar to Coinbase in that it also has a comprehensive Help Centre where you can search through previously answered questions to discover the solution to your issue. With the recent introduction of @BittrexSupport, Bittrex can now offer you news and updates via Twitter, too.
Nonetheless, if you encounter difficulty when trading or using the platform and need assistance from a seasoned professional, you can file a ticket 24/7 and wait for a response from the service’s support staff.
The iOS and Android versions of Coinbase’s app make it simple to buy, sell, and convert between various cryptocurrencies as well as send and receive cryptocurrency to and from secure third-party wallets. You can monitor the development of your portfolio, the details of your monetary transfers, and the fluctuations of the market on a real-time basis, all while earning interest on Ethereum (ETH), Cosmos (ATOM), Algorand (ALGO), and Tezos (XTZ).
The Bittrex mobile app, on the other hand, offers one of the most secure environments for users to trade cryptocurrencies while on the go. Bittrex’s state-of-the-art blockchain technology not only allows for the acceleration of such services for newbies but also caters to seasoned traders and offers financial products in line with bank security.
Moreover, the app of this Seattle-based global exchange streamlines the process of buying and selling cryptocurrencies, as well as keeping track of one’s portfolio and being abreast with market developments. This software also makes it easy for you to invest in a variety of popular cryptocurrencies, allowing you to create and manage a diverse virtual currency portfolio effortlessly.
Considering the fact that both marketplaces offer viable options for mobile trading, the best app in this area would come down to personal preference.
Coinbase and Bittrex vs Other Exchanges
If you’re still undecided between Coinbase and Bittrex, I’ve included a few more exchanges so you can better evaluate their merits and choose which one is right for you.
As Binance is the world’s most popular, liquid, and largest crypto exchange platform by trading volume, I believe it needs no special introduction.
If you’re just starting in the trading world, my initial recommendation is to use Coinbase. If, on the other hand, you are a more experienced investor who values having access to a broader selection of digital currencies and trading pairs, then both Binance and Bittrex are good choices for you.
However, if you need to make a purchase right now, you should steer clear of Coinbase because the exchange has one of the highest instant buy fees (3.99% when using a credit/debit card) in the business. Bittrex, in a similar vein, levies a 3% fee on instant transactions, whereas Binance charges only 1.5%. In turn, this only confirms Binance as one of the most cost-efficient exchanges in the industry, alongside its low trading fees that will cost you just 0.10% per trade.
Kraken, one of the earliest entrants to the cryptocurrency market, has consistently offered its users a reliable and protected trading platform ever since its launch in 2013. Much like Coinbase and Bittrex, this American brokerage accepts a wide variety of cryptocurrencies, allows for flexible investment and depositing choices, and is suitable for traders of all experience levels. Moreover, Kraken is a safe crypto haven that merges the most valuable aspects of these two platforms. Here’s why.
Besides the strongly secured platform that’s more suitable for advanced traders, Kraken also features margin trading with up to 5x leverage, easy fiat deposits, some of the lowest trading fees on the market, sold storage for users’ funds, staking options, and top-notch security. There have been no security breaches of the platform so far.
When compared to Coinbase, Kraken’s user interface is just as intuitive and user-friendly, while the exchange’s security measures rival those of Bittrex.
eToro is a crypto trading exchange with a slightly different mode of operation than Coinbase and Bittrex, which basically function as traditional exchanges. Namely, eToro is a social trading and investing platform that has gained popularity throughout the world for its innovative and trademarked trading instruments. You can easily buy, sell, and invest in some of the most prominent cryptocurrencies on the markets through eToro, which makes it similar to Coinbase and Bittrex.
When compared to other sites, eToro stands out for its focus on advanced traders with innovative tools like the CopyTrading feature. Basically, copy trading is a functionality that enables you to instantly mimic a profitable trading strategy conducted by another trader. It’s not a big deal if any of this sounds overly complicated to you.
Due to the platform’s user-friendliness, even people with zero experience in cryptocurrency trading can quickly come up to speed. So, if you’re looking for more inventive ways to trade cryptocurrencies than just swapping one cryptocurrency for another, you should go with eToro.
When it comes to trading cryptocurrencies, Coinbase is dedicated to making sure its users have a streamlined trading environment. The exchange’s superior security protocols, together with its ease of use, have contributed significantly to its meteoric rise in popularity. Newcomers to the cryptocurrency market will certainly appreciate the platform’s convenience and simplicity.
On the other hand, Bittrex is a reputable cryptocurrency exchange that places a premium on the security of its users. Throughout its long existence in the cryptocurrency market, the exchange’s safety has never been breached, and the platform is regularly praised for its speed, efficiency, and trustworthiness. The network is built around crypto-to-crypto trades and supports a wide range of digital coins. Also, experienced users will appreciate the ability to execute more complex trades through this platform.
When I take into account all of Bittrex’s characteristics, I see that it is a more practical alternative for experienced traders as it offers a safe trading environment and a variety of advanced trading options. On the other hand, I would recommend Coinbase to beginners in the cryptocurrency trading market or investors who value straightforward trading processes and – their time.