For one reason or another, you’re here because you want to find an alternative to Coinbase. This could be for privacy reasons, ethical reasons, or maybe entirely something else!
Anyways, in this post, we’re going to outline some of the best alternatives to Coinbase, so that you purchase Bitcoin and cryptocurrency another way.
Here’s a summary of our favorite Coinbase alternatives, to learn more continue reading!
Kraken is another popular exchange based in the United States that's been around since 2011. When it comes to currencies, Kraken supports dozens of cryptocurrencies and fiat currencies such as USD, GBP, and EUR.
Fees on the exchange can range from 0%-.26% depending on the type of order and your trading volume. For funding options, Kraken offers deposits in USD (FedWire), EUR (SEPA), and CAD(Wire & EFT).Visit Kraken Read Review
Coinmama is another beginner-friendly cryptocurrency brokerage that focuses on credit and debit card purchases. They offer instant delivery and sell Bitcoin, Ethereum, Ripple, Litecoin, and more to 46 US States, and most countries.
Coinmama doesn’t provide its users with a wallet on the exchange. Instead, users are asked to provide a wallet address to send the purchased cryptocurrency to. As long as you have your own wallet, this shouldn’t be an issue!
Coinmama charges a fee of around 5% for credit and debit purchases with instant delivery and high purchasing limits of a max of $5,000 daily and $20,000 monthly.
Click here to see a step by step guide on how to purchase Bitcoin on Coinmama.Visit Coinmama Read Review
eToro is an interesting option when it comes to cryptocurrency brokers. What sets eToro apart is their social trading and copy trading features, allowing you to view the most successful traders on the platform, and mimic their trades as part of your trading strategy.
eToro only supports deposits via bank account, so if you were planning to use a card that won’t be possible. For fees, eToro charges differently depending on the coin. Expect a .75% fee when trading Bitcoin.
Bitpanda, called by some the Coinbase of Europe, is a popular brokerage that sells Bitcoin, Ethereum, Ripple, and more for US Dollars, Euros, British Pounds, and Swiss Francs. The exchange has several payment methods such as bank transfers, credit cards, debit cards, Skrill, Neteller, and more.
When it comes time to transact on the exchange, Bitpanda charges 1.49% for buys, and 1.29% on sells making them an extremely competitive option.
If privacy is the reason you don’t want to use Coinbase or the above-mentioned services, then Bitcoin ATMs are your best bet. LocalBitcoins is an option as well, but in recent times they are requiring a bit more information about their users.
Use CoinRadar to find Bitcoin ATMs in your area. One thing to note about Bitcoin ATMs is that they often incur higher fees due to the privacy they offer.
You can either buy or sell Bitcoin at an ATM and their limits are decent. You may have to make a few trips if you’re trying to buy a lot of Bitcoin at one time, however.
The first reason you may not want to use Coinbase is that you have issues with the information they collect. You can learn more about this in our Coinbase Review. While nearly any modern cryptocurrency exchange will need this information as well, there are some that require less info than others.
Some information Coinbase asks for upon signup:
If this is problematic for you, we recommend Bitcoin ATMs as your way to buy Bitcoin.
Coinbase uses fractional reserves, meaning that it does not hold the entire balance of its user’s deposits. In a time of major volatility, this could be problematic. If many users decide to withdraw at once, Coinbase could have issues supporting all of them.
If this is a deal-breaker for you, then go with Kraken!
While this hasn’t happened in a while, Coinbase has had some major downtime issues upon the addition of new assets such as Bitcoin Cash. Upon launch, lopsided order books caused the cryptocurrency to reach a price of nearly $8500 before Coinbase had to pause its trading.
We’d like to think the exchange has got its act together since then, but you never know.
Nearly every alternative on this list hasn’t had time with downtime like Coinbase has in the past. All alternatives are a safe bet if this is important to you.
Neutrino is a blockchain analysis tool that allows Coinbase to determine the identity of certain addresses and accounts on various platforms. Many people involved in the cryptocurrency world do so for privacy and do not enjoy being spied on by an advanced tool like Neutrino.
Overall, Coinbase is a great cryptocurrency exchange and brokerage for beginners, that we recommend to many. However, they do have a few issues to be aware of like the requirement of personal information, no proof of reserves, trading downtime, and cooperation with a blockchain analysis company.
If these aren’t deal breakers for you, go right ahead!
If so, consider other options that we mention.