Best Bitcoin Exchanges for December 2023: Which Wins?
With so many Bitcoin exchanges out there, how do you pick the right one for you? We are here to help choose between three of the best Bitcoin exchanges: Swan Bitcoin, Binance and Coinbase.
Choosing the best Bitcoin exchange is crucial for several reasons. This guide breaks down the best Bitcoin exchanges in 2023 and shows you how to pick the one for your goals and situation. We will also look at two of the most highly regarded Coinbase, Binance, and Swan Bitcoin, a Bitcoin-only exchange in the United States.
Account Minimum: No minimum balance requirements
Investment Options: Bitcoin-only
Fees: 0.99%*
Custody Provider: BitGo Trust Company
Trustpilot Rating: 4.6 out of 5
Most Popular International Bitcoin Exchange
Account Minimum: None, but $10 trade minimum
Investment Options: 137 cryptocurrencies (changes often)
Fees: Fees start at 0.6%. Fees of 0.5% for instant buys and Debit card fees of 3.75%
Custody Provider: Ceffu
Trustpilot Rating: 2.1 out of 5
Most Popular U.S. Bitcoin Exchange
Account Minimum: $2
Investment Options: +150 alternative cryptocurrencies
Fees: Range from 0.5% to 4.5%
Custody Provider: Coinbase Custody Trust
Trustpilot Rating: 1.5 out of 5
Cryptocurrency exchanges are online platforms that facilitate the buying, selling, and trading Bitcoin, altcoins, and other cryptocurrencies. Altcoins refer to alternative cryptocurrencies that are not Bitcoin. These digital assets are often funded through pre-sale token agreements and may not have clear legal definitions.
Bitcoin-only exchanges are exactly what they sound like — those offering only Bitcoin.
Exchanges serve as intermediaries, connecting buyers and sellers and providing a marketplace for individuals to exchange their fiat currency (such as U.S. dollars, Euros, etc.) for Bitcoin and vice versa. Several types of exchanges exist for different investors, making choosing the best Bitcoin exchange even more challenging.
Founded in 2019 and headquartered in Los Angeles, California, Swan Bitcoin has made buying and owning Bitcoin a breeze. The platform offers an easy and safe way to profit from Bitcoin as a long-term investment. Swan removes the complexity and confusion surrounding Bitcoin IRA investing and is accessible to a broader audience for low fees.
Swan offers investors free withdrawals into self-custody of purchased Bitcoin with a secure, non-custodial wallet. This gives investors complete control over their digital assets and an added layer of security.
Enhanced Knowledge Base: Swan’s knowledge base includes comprehensive educational resources, in-depth market analysis, and up-to-date information on Bitcoin and other related cryptocurrencies.
Unparalleled Expertise in Bitcoin: Whether understanding technical aspects, market trends, or potential risks, Swan’s experts work round the clock to guide you every step of the way.
Advisor Services: Besides its expert team, Swan now offers Swan Advisor Services to help financial advisors integrate Bitcoin into their clients' investment portfolios seamlessly.
Personalized Consultation: Investors get advice and strategic recommendations tailored to their financial goals and risk tolerance, ensuring Bitcoin becomes an accessible and beneficial asset.
Reliable Self-Custody Options: Swan’s Specter Labs offers a range of safe and easy-to-use self-custody options for Bitcoiners who prefer to be in direct control of their wealth.
One of Swan’s key features that makes it the best Bitcoin exchange alternative to Coinbase for newcomers is its ability to automate Bitcoin purchases at regular intervals, helping create a disciplined, low-time preference investment strategy to build wealth over time.
Swan has a Bitcoin IRA product, offering its customer base a tax-deferred or tax-free solution. Swan offers self-managed Traditional or Roth IRAs, with Bitcoin held in a legal, regulated trust account maintained by a qualified and authorized custodian.
Neither Binance nor Coinbase offer a tax-free IRA product. The best Bitcoin exchanges provide unique products and services like an IRA product to help them differentiate themselves from major competitors.
Exceptional Customer Service
Swan uses a chatbot feature and instantly connects users to a Swan representative. This functionality allows users to engage in real-time conversations, enabling swift access to assistance and support.
Swan Support is regularly rated the best in the industry. If you ever have any issues, Swan Bitcoin customers can speak to a Swan Support customer service representative — usually in 10 minutes or less.
For U.S. citizens, this is not possible on Coinbase. The best Bitcoin exchanges offer exceptional levels of customer service. Industry-leading customer service is one of the most challenging features to find in a Bitcoin exchange.
Swan Private produces content to keep you updated and educated about Bitcoin and the broader financial world. If you’re a high net-worth individual, family office, or corporation looking to buy $100,000 or more worth of Bitcoin, you can sign up with Swan Private for customized services.
The best Bitcoin exchanges carter specialized services to high net-worth and accredited investors.
Swan Force is another Swan entity to earn Bitcoin by helping other users and businesses engage with the Bitcoin ecosystem.
Swan recently revealed plans for the first Bitcoin-only trust company in the United States.
This strategic partnership aims to meet the increasing demand for Bitcoin-specific solutions while addressing the crucial security and custody needs within the Bitcoin ecosystem. Swan plans to either acquire an existing trust company or build a new one.
An acquisition has an operational timeline for launch by Q1 2024, with a target of Q3, 2024 if a new trust from scratch is required. BitGo has been safeguarding Swan users' Bitcoin in cold storage custody since June, a practice that will continue.
On October 5, Swan Bitcoin and Blockstream announced Swan Vault. With Blockstream Jade’s support, Swan Vault aims to provide Bitcoin investors with a robust and user-friendly solution to the complex challenge of secure and safe Bitcoin custody.
One curated piece of Bitcoin content each weekday. Only the highest quality articles, podcasts, and videos make the cut.
The Bitcoin Benefit Plan makes it easy to give your team Bitcoin. Swan will automatically deposit a set amount of Bitcoin into your team’s accounts every month.
Swan charges a 0.99% fee on all Bitcoin buys; that’s all. No deposit fees, no withdrawal fees, no hidden fees. As mentioned above, the best Bitcoin exchanges offer 0-1% fees for these primary account services.
Low and Transparent Fees
Swan’s exclusive focus on Bitcoin allows it to cut costs and pass on the savings in lower fees, making it a great Coinbase alternative for users who prioritize low fees and wish to focus on Bitcoin-only. There are no inactivity fees, withdrawal fees, overdraft fees, custody fees**, or fiat withdrawal fees involved.
The best Bitcoin exchanges don’t charge their customers hidden fees like spread fees. Swan also doesn’t charge a spread to its customers.
Furthermore, unlike Binance and Coinbase, which have to operate and maintain validation software and hardware for each supported coin, Swan only has to manage Bitcoin nodes, which are straightforward and inexpensive to operate. This dramatically reduces the hardware, software, and staff costs required to support multiple coins.
** There are no monthly fees for Swan entities or personal accounts. However, IRA accounts will incur a small monthly fee of $20 until your account reaches $100,000. If your account exceeds $100,000, an annual fee of 0.25% is deducted from your linked bank account.
Let’s take a look at the two leading alternative cryptocurrency exchanges: Binance and Coinbase.
Founded by Changpeng Zhao (CZ) in 2017, Binance is a pioneering cryptocurrency exchange, considered by many to be the best Bitcoin exchange that has quickly grown into one of the industry’s largest and most influential platforms since its launch only 5 years ago. With its comprehensive range of features, user-friendly interface, and commitment to security, Binance has simplified trading digital assets.
Binance boasts a variety of key features that have contributed to its popularity:
Wide Range of Cryptocurrencies: Binance provides access to an extensive list of cryptocurrencies for trading, allowing users to diversify their portfolio.
Binance Launchpad: A platform within Binance that hosts token sales for new projects, enabling users to invest in promising blockchain startups.
Binance Smart Chain: A parallel blockchain network that supports decentralized applications (DApps) and smart contracts, offering an alternative to Ethereum.
Binance Earn: A service allowing users to earn interest or rewards by participating in cryptocurrency-related activities, such as staking or lending.
Binance Visa Card: A cryptocurrency debit card that allows users to spend their cryptocurrencies at merchants that accept Visa.
Binance operates with a competitive fee structure, offering some of the lowest trading fees in the industry, making it attractive for retail and institutional traders. Binance charges different fees based on trading volume and whether users hold its native cryptocurrency, Binance Coin (BNB). By using BNB to pay trading fees, users can enjoy additional discounts.
Binance has a complex fee structure which is based on the types of trades you’re doing. You’ll incur 0.1% trading fee, and Instant Buy/Sell will incur a 0.5% fee. Binance also has a number of hidden fees such as withdrawal fee which is different for every type of currency. For BTC this fee is 0.0001 — 0.0005 of the amount you are withdrawing.
The fees start to get more complex and higher once you start trading odd altcoins and cryptocurrencies. Trade fees start at a 0.6% taker and 0.4% maker fee for trading non Bitcoin crypto worth less than $10,000 in a 30-day period.
You can check out the complete fee schedule on their website.
Binance provides a comprehensive support system with an extensive FAQ section, a ticketing system for specific inquiries, and a live chat feature for real-time assistance. However, as with any rapidly growing platform, concerns have been raised about response times during periods of high demand.
The best Bitcoin exchanges include a live chat feature for their customer base.
Binance only maintains a 2.1 / 5 on Trustpilot; with 66% of reviews resulting in 1-star ratings.
Binance offers a range of custody solutions for institutional clients and high-net-worth individuals who require secure storage for their digital assets. These custody services aim to provide peace of mind by implementing robust security measures to protect clients' holdings from potential threats.
Binance Custody became Ceffu in February of 2023.
A significant portion of the cryptocurrency industry operates in a regulatory gray area in many jurisdictions. Binance has faced scrutiny from regulatory authorities in different countries, leading to adjustments in its operations to comply with local regulations. The best Bitcoin exchanges avoid these unnecessary regulatory risks.
Recently, the SEC filed lawsuits against Binance. In the suit, the SEC names at least (67) alternative cryptocurrencies it believes are unregistered securities.
Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase emerged as a response to the need for a secure and user-friendly platform for buying, selling, and storing cryptocurrencies. Over the years, Coinbase has evolved from a simple exchange into a comprehensive ecosystem catering to beginners and seasoned cryptocurrency enthusiasts.
Many consider Coinbase among the best Bitcoin exchanges, especially for U.S. citizens.
Coinbase provides a straightforward interface and services catering to individual retail investors and institutional clients. It has gained popularity among retail investors and institutional players, establishing partnerships with major financial institutions and expanding its presence globally.
Coinbase Wallet: A digital wallet for securely storing cryptocurrencies.
Coinbase Pro: A platform designed to cater to experienced traders who require more sophisticated trading tools than what is offered on Coinbase’s basic platform. Pro provides a range of features:
Advanced order types
Real-time market data
Charting tools
High liquidity
Coinbase Custody: Offers secure storage solutions for institutional investors and high-net-worth individuals. It is designed to meet clients' needs, requiring a highly safe and reliable custodial solution for their digital assets.
Its fees are considered much higher than other exchanges, like Swan Bitcoin. Still, Coinbase’s ease of use makes it an attractive option for users looking for a reliable onboarding experience.
Coinbase has implemented several security protocols and practices to protect user funds and safeguard against hacking attempts and cybersecurity threats.
Two-Factor Authentication (2FA)
Coinbase encourages users to enable 2FA, which adds an extra layer of security by requiring a unique code generated on a mobile device and a password.
Third-Party Audits
Coinbase undergoes regular security audits conducted by reputable third-party firms. Audits help identify security weaknesses and areas for improvement to ensure adherence to industry best practices.
However, specific details about these audits remain largely private due to security concerns and the sensitivity of the information involved. The best Bitcoin exchanges conduct multiple audits annually.
Offline Storage (Cold Storage)
Coinbase employs multiple layers of security to store and secure user funds. The majority of customer funds held by Coinbase are stored in offline, cold storage wallets. The best Bitcoin exchanges hold their customers' funds in cold storage wallets.
These wallets are not connected to the internet, making them less vulnerable to hacking attempts and online threats. This offline storage strategy helps protect user funds from unauthorized access.
Multi-Signature Technology
Coinbase previously offered a multi-signature mechanism for its wallets. However, it no longer provides this service.
Insurance
In case of a security breach or loss of funds, Coinbase has specific options available to users. It provides insurance coverage for cryptocurrency holdings stored in its custody provider. Cash held in a Coinbase wallet is FDIC insured. NOTHING ELSE IS.
Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches. However, our policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account (s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and Coinbase Pro.
Cryptocurrency is not legal tender and is not backed by the government. Coinbase is not an FDIC-insured bank and cryptocurrency is not insured or guaranteed by or subject to the protections of the Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation (“SIPC”), and may lose value.
Digital assets, stablecoins, altcoin’s and Bitcoin ARE NOT covered by FDIC insurance.
Account Recovery
Coinbase has account recovery procedures in place to help users regain access to their accounts in case of unauthorized access or loss of account credentials. Users can follow the account recovery process, which typically involves identity verification and account ownership confirmation.
In an announcement made on October 17th, Coinbase revealed that it had halted trading for 80 pairs not denominated in USD for specific supported assets on Coinbase Exchange, Advanced Trade, and Coinbase Prime. These pairs encompass a variety of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), stablecoins such as Tether (USDT), and conventional fiat currencies like the Euro.
Some of the trading pairs in question are ACH-USDT, AGLD-USDT, ARPA-EUR, ARPA-USDT, AUCTION-EUR, AUCTION-USDT, BADGER-EUR, BADGER-USDT, BAND-BTC, BAND-EUR, BAND-GBP, BNT-BTC, BNT-EUR, BTRST-BTC, BTRST-EUR, BTRST-USDT, C98-USDT, CTSI-BTC, DESO-USDT, ELA-USDT, ERN-USDT, among others.
Coinbase has a notorious reputation for its poor customer service. Many users have reported issues with frozen or suspended accounts without explanation and no ability to receive personalized responses. While Coinbase has a generally positive reputation, it has not been without controversies or customer complaints.
In August, 2021 CNBC wrote a highly shared article about Coinbase customer support problems.
Coinbase has a set of customer support protocols. Customers regularly complain about this on Twitter, Trustpilot, and forums like Reddit. The platform offers no live chat feature other than a bot with limited capabilities.
Many users have to wait several days for answers if they receive them at all.
The best Bitcoin exchanges maintain high scores on review sites like Trustpilot. Coinbase scores very poorly on Trustpilot.
Coinbase’s Trustpilot rating is only 1.5 / 5 stars out of nearly 8,500 reviews. 79% of these reviews received a 1-star rating.
Coinbase fares no better with the Better Business Bureau. The exchange has a near-worst possible score of 1.06 stars of 5-star rating.
Furthermore, the following ⚠️ CURRENT ALERTS FOR THIS BUSINESS message can be found on the company BBB page:
Outages and Technical Issues
Coinbase has had a fair share of slow loading times, long outage periods, transaction delays, and server errors, especially during periods of high volatility, making taking advantage of market volatility a massive pain point for investors.
In 2021, hackers stole crypto assets and user information from at least 6,000 Coinbase customers.
Frozen and Suspended Accounts
Coinbase has sometimes frozen or suspended user accounts due to suspected fraudulent or suspicious activity. Many users have expressed frustration over account freezes, citing difficulties in resolving such issues.
Help Center
Coinbase provides a ‘Help Center’ on its website, which includes a comprehensive knowledge base with articles and guides addressing common questions and topics. Users can search for relevant information and troubleshoot steps to resolve their concerns. The exchange also offers customer support through email and a ticketing system.
However, as previously mentioned, many Coinbase customers complain about the poor service and response time they receive from the Help Center.
If you are looking for a Binance or Coinbase alternative, Bitcoin-only Swan Bitcoin might be right for you.
Regulatory Clarity
A significant portion of the cryptocurrency industry operates in a regulatory gray area in many jurisdictions. Coinbase, like Binance has faced scrutiny from regulatory authorities in different countries, leading to adjustments in its operations to comply with local regulations. The best Bitcoin exchanges avoid these unnecessary regulatory risks.
Recently, the SEC filed lawsuits against Coinbase. In the suit, the SEC names at least (67) alternative cryptocurrencies it believes are unregistered securities. Coinbase platforms and markets many of the tokens included in the lawsuit. Some of these tokens are included in Coinbase education rewards for watching videos and answering questions correctly.
Altcoins are highly speculative and carry numerous unique risks. When investing in an alternative crypto IRA, understand that the development team typically retains a guaranteed token stake at launch, similar to how an initial public offering (IPO) operates in the traditional stock market.
Using Swan and buying only Bitcoin has several advantages:
Swan Bitcoin focuses on recurring Bitcoin purchases for long-term investments, emphasizing simplicity and regulatory clarity. The SEC has publicly stated that Bitcoin isn’t a security and doesn’t fall under the SEC’s regulatory mandate.
The best Bitcoin exchanges are completely transparent about their regulatory standing and avoid cryptocurrencies that could present significant legal problems. The only way to ensure this is to operate as a Bitcoin-only exchange.
By focusing on this single asset class, Swan offers its clients a secure and hassle-free solution for accumulating Bitcoin while avoiding the complexities and regulatory challenges associated with the broader range of cryptocurrencies, trading options, and crypto exchanges that the SEC classifies as illegal securities offerings.
Swan is transparent about Bitcoin’s risks, compliance, and regulations. No false promises are made, but you receive the right support to navigate IRA complexities and compliantly secure your future with crypto. The security measures designed specifically for Bitcoin help keep the focus on growing an asset class while reducing the burden of managing multiple cryptos simultaneously.
Swan Private
If you’re a high net-worth individual, family office, or corporation looking to buy $100,000 or more worth of Bitcoin, you can sign up with Swan Private for customized services.
Swan Force
Swan Force is another Swan entity to earn Bitcoin by helping other users and businesses engage with the Bitcoin ecosystem.
The best Bitcoin exchanges carter specialized services like Swan Private to high net-worth and accredited investors.
Swan Bitcoin-only Trust
The first U.S.-based Bitcoin-only trust company. BitGo has been safeguarding Swan users' Bitcoin in cold storage custody since June, a practice that will continue.
The Daily Bitcoiner
One curated piece of Bitcoin content each weekday. Only the highest quality articles, podcasts, and videos make the cut.
Employee Benefit Plan
The Bitcoin Benefit Plan makes it easy to give your team Bitcoin. Swan will automatically deposit a set amount of Bitcoin into your team’s accounts every month.
Swan Vault
On October 5, Swan Bitcoin and Blockstream announced Swan Vault. With Blockstream Jade’s support, Swan Vault aims to provide Bitcoin investors with a robust and user-friendly solution to the complex challenge of secure and safe Bitcoin custody.
Bitcoin-only is Better
Being a Bitcoin-only company, Swan avoids the risks of volatile cryptocurrencies. By focusing solely on Bitcoin, Swan mitigates the potential uncertainty and unpredictability of investing in other highly volatile and multiple digital assets. The best Bitcoin exchanges offer a stable and secure investment experience while minimizing the risks of speculating on numerous cryptocurrencies.
Fewer Account Restrictions
Unlike Binance and Coinbase, Swan has a few account restrictions. It has a transparent framework openly available to the public.
So, what is the best Bitcoin exchange for you?
As the regulatory landscape shifts, it’s wise for investors to consider safeguarding their holdings by removing them from exchanges like Coinbase into secure cold storage. Converting altcoins to Bitcoin and opening an account with a Bitcoin-only company will likely prove to be a strategic move in light of recent regulatory changes.
Bitcoin is a fully decentralized, legally recognized commodity with no central authority, issuer, or single point of failure. Unlike alternative cryptocurrencies, Bitcoin was launched without a pre-sale, and the core development team cannot directly control the direction of the protocol alone.
Whether you’re a seasoned trader or just starting your journey in the world of cryptocurrencies, understanding the landscape of Bitcoin exchanges is a valuable step toward successful and secure trading. By researching, comparing, and analyzing the options available, you can find the best Bitcoin exchange that aligns with your investment objectives.
If you are ready to delete your Coinbase account, check out how in three easy steps.
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