Cryptocurrency is a new way of investing. In the world of buying and selling Bitcoin (a type of cryptocurrency) the exchange company Coinbase is a popular platform. Coinbase has over 30 million users who have traded $150 million worth coins.
Coinbase Alternative – Crytpo Exchange alternative to Coinbase
CoinMama is an exchange service that was incorporated in 2013. This platform for exchange f digital currency serves 1.9 million people in 188 countries. CoinMama believes in innovation, transparency, teamwork, communication, and simplicity. CoinMama deals with the purchase of the following cryptocurrencies:
- Bitcoin Cash
- Ethereum Classic
As of now, users can only sell bitcoins via SEPA bank transfers for European banks. The wallet service is not provided.
Reasons for being an alternative to Coinbase
- The exchange service provided by CoinMama is safe, secure, and fast.
- It is easy to use especially for cryptocurrency beginners. The website of CoinMama provides answers to the most commonly asked questions and also the users can experience personalized customer service.
- The users of CoinMama can access their services from any part of the world.
- CoinMama charges a low fee for the service provided to its users. The company doesn’t charge any commission if the transaction crosses the threshold limit.
The payment method on CoinMama is simple. It supports wire bank transfers or Visa/Mastercard (credit/debit).
LocalBitcoin is a P2P (peer to peer) platform for exchanging cryptocurrency. The business model of this Finnish exchange company is non-conventional and unique. The mission of LocalBitcoins is that everyone should have access to cryptocurrency transactions. This is accomplished via the P2P model. Hence, making sure that everyone is connected to the digital economy.
As of now, LocalBitcoins allows the purchase and sale of bitcoins only.
Reasons for being an alternative to Coinbase
- The LocalBitcoins is simple and easy to use. All you need to do is to create an account, by following the instructions. Once an account is created you will find the sale of BTC by other users along with their preferred payment options.
- The LocalBitcoins supports numerous payment methods. So, you won’t face any trouble when it comes to payment methods. Some of the payment methods supported by LocalBitcoins are:
- SEPA/SWIFT bank transfers
- bank deposits
- cash trades
- Skrill and a lot more.
- The LocalBitcoins follows a stringent process to verify users’ identity. They follow the Escrow system to avoid any potential frauds. Moreover, they take strict and quick action against any fraudster.
- The LocalBitcoin is the cheapest exchange platform fr cryptocurrency. There is no registration fee at LocalBitcoin. Also, it’s free to buy/sell bitcoins and to keep wallets on Localbitcoins. They only charge a minimal amount known as the standard network transaction tax. They earn most of their income from the advertisements done by the traders. If the traders have been benefited from the ads, they have to pay 1% as a fee to the LocalBitcoin.
Requirements for Good Crypto Exchange
- Make sure that the exchange of cryptocurrencies is done on a credible and reliable platform. It’s important to do research about the track record and reputation of the exchange company.
- It is a known fact that any exchange will charge a considerable amount known as brokerage fee on any transaction. So, check for the percentage of brokerage charged by the exchange company. Make sure you don’t end up paying a lot as a brokerage fee to them.
- Like in banks we have to keep a minimum deposit or balance in our account. Or the maximum amount that can be withdrawn in a day. Similarly, a few exchanges impose a maximum on deposit and also the number of cryptos that can be bought.
Disadvantages of Coinbase
- The customer service of coinbase is disappointing. They usually don’t answer the queries of their users and do not fix the bug problems. Coinbase usually doesn’t fulfill the promises made to their user about the rewards.
- They keep track of all the activities related to their users. They do this by asking questions related to the spending of Bitcoins. They keep a close check on everything their customers do with their finance. So, depending upon the spending habit of their users, coinbase can freeze or close users’ accounts. Therefore, it’s like a banking system where coinbase has power over your funds.
- Coinbase company is the leading exchange company for bitcoins in the world. They use this reputation to take advantage of charging a huge fee on their users.
- The services of Coinbase is restricted only to 32 countries. This can be a demotivating factor to avail of the service of Coinbase.
Make sure to select a cryptocurrency exchange platform that meets your and also current market needs.