Ava AbbottCoinbase is an exchange and storage service for cryptocurrencies, like Bitcoin and Ethereum. The app allows users to buy, sell, convert, send, and receive more than 50 cryptocurrencies. Founded in 2012, Coinbase has expanded to become the largest crypto exchange in the US by volume.
Coinbase went public in Apr 2021, becoming the first pure crypto business to IPO. The company began trading at $381 on the Nasdaq, with a market cap of $99.6 billion. In 2020, Coinbase’s annual revenue surged by 136% to $1.14 billion. [1]
Coinbase integrated its payment processing into Stripe and PayPal long before Bitcoin skyrocketed in value. The company also has longstanding merchant partnerships with Dell, Expedia, and Time Inc.
Today, Coinbase has 1249 employees, 56 million users worldwide, and more than 2.8 million active monthly users. The app displays the current price and trends for cryptocurrencies and users’ portfolios of holdings. Coinbase has to fend off stiff competition from Binance, Robinhood, Kucoin, Kraken, Bittrex, and many more. [2]
Here is an in-depth analysis of top Coinbase’s competitors and alternatives:
1. Binance
Year founded: 2017
Headquarter: Cayman Islands
Binance is the largest cryptocurrency exchange by trade volume. The company also offers Binance Coin (BNB), the third-largest crypto based on market cap. In 2020, Binance reached $2 trillion in total trading volume and reported a profit of around $800 million. [3]
Binance is one of the fastest platforms globally, completing over 1.4 million trades per second. The platform offers more than 150 cryptocurrencies and an API that integrates them into users’ trading applications. Binance and Coinbase have NFT marketplaces. But Binance has more features. Overall, Binance is the best Coinbase alternative for experienced crypto traders.
2. Robinhood
Year founded: 2018
Headquarter: Tel Aviv, Israel
Robinhood is a commission-free trading platform for stock and cryptocurrency. Users can buy and sell Ethereum, Dogecoin, Litecoin, and Bitcoin. The company has around 1280 employees and manages over $81 billion in assets.
The main advantage for Robinhood is the ability to buy and sell Dogecoin. Most platforms don’t offer this crypto. Robinhood provides real-time data on some assets, but its cryptocurrency trading offering is limited compared to Coinbase.
In the first half of 2021, the platform played a central role in the GameStop affair. This event attracted 6 million users to its platform, reaching 19 million. On Jul 28, 2021, Robinhood went public in a $2 billion IPO. Robinhood has the resources to challenge Coinbase in crypto trading. [4]
3. Kraken
Year founded: 2011
Headquarter: San Francisco, California
Kraken is one of the oldest cryptocurrency exchange platforms. The company was expected to go public in 2022, but the recent $10-billion valuation was too low for IPO.
Kraken is developing a marketplace that allows customers to use non-fungible tokens as collateral for loans. Coinbase already has an NFT marketplace, with millions of customers waiting to join. So, Kraken’s NFT marketplace can undercut Coinbase’s competitive advantage. Kraken is a strong Coinbase competitor. [5]
4. Crypto.com
Year founded: 2016
Headquarter: Singapore
Crypto.com is a cryptocurrency exchange app owned by Foris DAX MT LTD. At its core, Crypto.com is a cryptocurrency wallet that allows users to access, manage, and spend funds. The exchange has 10 million users and 3,000 employees.
Users can buy more than 200 cryptocurrencies and over 20 fiat currencies. Crypto.com has been tussling with coinmarketcap.com over volume rankings. According to coinmarketcap.com, Crypto.com is ranked 16th in daily traded volume. But Coingecko’s stats indicate that Crypto.com is second. With $2.8 billion traded daily, Crypto.com is a worthy Coinbase competitor. [6]
5. FTX Exchange
Year founded: 2019
Headquarter: Bahamas
FTX is a cryptocurrency derivatives exchange and wallet that allows users to trade and store digital currencies. Users buy and sell cryptocurrencies at a predetermined price. Since 2019, FTX’s annual revenue has increased from $7.2 million to $85 million.
FTX is one of the most innovative Coinbase competitors. In Dec 2021, FTX announced plans to offer a $1 million prize for banks that would accept stablecoins. If successful, FTX users will have near-instant and near-free deposits and withdrawals using stablecoins. Like Binance, FTX has started developing its NFT marketplace. Coinbase already has an NFT marketplace. So, this move will help FTX undercut Coinbase’s competitive advantage. [7]
6. Bittrex
Year founded: 2014
Headquarter: Seattle, Washington
Bittrex is a cryptocurrency exchange that allows users to buy or sell more than 215 cryptocurrencies. Users can trade only $3,000 per day, while Coinbase’s maximum trading amount is $25,000. The platform has more than 500,000 users.
The main advantage of using Bittrex over Coinbase is its low withdrawal and trading fees. Bittrex users trade crypto and withdraw funds for 0.2% versus 3% charged by Coinbase. While Coinbase offers a smoother user experience, Bittrex is more user-friendly. Bittrex is the best Coinbase alternative for beginners. [8]
7. eToro
Year founded: 2007
Headquarter: Tel Aviv, Israel
eToro is a multi-asset brokerage company and the world’s leading social investment platform. The company introduced Bitcoin trading in 2013 and added over 17 cryptocurrencies. eToro’s revenue for fiscal 2020 was around $600 million.
eToro offers online brokerage in several countries globally but only provides crypto trading in the US. The platform allows users to trade 27 cryptocurrencies with a transparent fee structure. Unlike Coinbase, eToro offers an engaging communal experience and educational resources. Beginners can copy the strategies of experienced crypto traders. eToro is a strong Coinbase competitor and one of the best alternatives for beginners. [9]
8. KuCoin
Year founded: 2017
Headquarter: Singapore
KuCoin is a leading blockchain-based asset financial services provider. The crypto exchange offers over 500 cryptocurrencies, about five times more than Coinbase’s tradeable options. Currently, the company has around 600 employees.
KuCoin offers advanced features, low fees, and a wide variety of coins, ideal for experienced crypto traders. But the platform doesn’t operate in the US. Overall, KuCoin is one of the best Coinbase alternatives for seasoned non-US crypto traders. [10]
9. Gemini
Year founded: 2014
Headquarter: New York, NY
Gemini is one of the most recognized US cryptocurrency exchanges. The platform allows users to trade over 20 cryptocurrency coins and tokens. In 2021, Gemini’s annual revenue increased 600% year-over-year. The company is on track to be profitable by the end of 2021.
Gemini cryptocurrency exchange charges 0.6% for transactions less than $500,000 and 0.4% on $30 billion in assets under custody. Traders pay a 1% fee to borrow 40 different cryptocurrencies. In Nov 2021, Gemini raised $400 million to expand its Walled Gardens, an augmented reality version of the internet. This metaverse will increase Gemini’s competitive edge over Coinbase. [11]
10. TradeStation Group, Inc.
Year founded: 1982
Headquarter: Plantation, Florida
TradeStation is an online brokerage and cryptocurrency exchange. This easy-to-use platform offers commission-free crypto trading and more investable classes than Coinbase.
TradeStation offers two apps, TS Select and mobile-only TS GO. In 2021, TradeStation won the Stock Brokers’ “#1 Platform Technology” for the ninth year and “Best in Class” accolades in five categories. Unlike Coinbase, TradeStation doesn’t charge users for crypto custody, deposits, or withdrawals. The platform reduced cryptocurrency taker fees in Jun 2021 by up to 50%. With over 30 years in the field, TradeStation is one of the most experienced Coinbase competitors. [12]
11. Cash App
Year founded: 2013
Headquarter: San Francisco, California
Launched by Square Inc, Cash App is a peer-to-peer app that offers crypto trading and investing. Users can buy, hold, and sell cryptocurrencies and send or receive money via Cash App. In Jan 2021, Cash App had 1 million Bitcoin buyers and sellers. By Dec 2021, Bitcoin customers on the platform had increased to over 3 million.
In Dec 2021, Cash App added a new feature that allows users to send bitcoin as gifts to other Cash App users. Coinbase already has this functionality for cryptocurrencies, but Cash App is the first P2P payments app with this feature.
It can entice newcomers to invest in crypto via Cash App instead of Coinbase. Cash App is one of the best Coinbase alternatives for new investors. [13]
12. Venmo
Year founded: 2009
Headquarter: New York, NY
Venmo is a peer-to-peer payments app for sending and receiving money. The platform introduced the ability to buy, hold, and sell cryptocurrency in Apr 2021. In 2020, Venmo’s parent company PayPal generated $21.4 billion in revenues.
In Aug 2021, Venmo added the new “Cash Back to Crypto” option that allows credit card users to purchase crypto with their cashback. This feature simplifies the process of buying cryptocurrency, appealing for newbies. As a subsidiary of PayPal, Venmo has enough resources to challenge Coinbase. [14]
13. ZenGo
Year founded: 2018
Headquarter: Tel Aviv-Yafo, Israel
ZenGo is a mobile app for managing cryptocurrencies. It is a keyless, non-custodial crypto wallet that allows users to invest in cryptocurrency without external help. In Apr 2021, ZenGo raised 20 million to secure its crypto wallet app.
ZenGo offers over 70 crypto assets, including Bitcoin, Ethereum, and Dogecoin. Users can choose from Economy, Regular, or Fast network mode to buy, sell, send, receive, and store crypto. In 2020, ZenGo served over 100,000 traders and processed more than $100 million in transactions. The company added another 100,000 users and completed $100 million in crypto transactions in the first three months of 2021. ZenGo is one of the fastest-growing Coinbase competitors. [15]
14. Bitcoin IRA
Year founded: 2016
Headquarter: Los Angeles, California
Bitcoin IRA is a platform that simplifies crypto trading. Users buy and sell cryptocurrencies 24/7 in real-time, with minimal effort. Unlike Coinbase, Bitcoin IRA allows users to earn tax-free gains on profits.
Bitcoin IRA provides secure trading through SSL and storage for users’ digital assets. Its main competitive advantage over Coinbase is investing in Bitcoin for retirement. Apart from Bitcoin, retirees can diversify their portfolios and earn higher returns by investing in Gold. Users can track the live price and portfolio performance. Bitcoin IRA is the best Coinbase alternative for diversifying retirement portfolios with crypto. [16]
15. Paxful
Year founded: 2015
Headquarter: New York, NY
Paxful is a peer-to-peer marketplace for buying and selling Bitcoin. The platform offers more than 300 payment methods. Currently, Paxful has over 400 employees stationed in Estonia, the UK, the Philippines, Dubai, and St. Petersburg.
Paxful provides robust features, making it easier for beginners and veterans to profit. Users can sell, send, and trade in hundreds of digital currencies and withdraw directly from their bank or PayPal account.
This P2P fintech platform is the leading crypto exchange in Africa, with 2.5 million Bitcoin traders from Nigeria, Ghana, Kenya, and South Africa. In 2021, Paxful partnered with the Qala Fellowship and the Human Rights Foundation to bring more African perspectives and talents into the Bitcoin ecosystem. Paxful is the best Coinbase alternative for African crypto investors. [17]
16. Voyager Digital
Year founded: 2018
Headquarter: New York, NY
Voyager Digital offers commission-free crypto trading. Users can trade 60 cryptocurrencies and access more tradeable options than Coinbase users. In Mar 2021, the company had 141 employees and managed over $2.4 billion in assets with $650 million in net deposits.
Voyager provides crypto services for individuals and institutions, including up to 9.5% interest APR on digital assets. Institutional clients can leverage Voyager’s order execution and custodial services. With over 1 million verified users, Voyager is a formidable Coinbase competitor. [18]
17. Cex.io
Year founded: 2013
Headquarter: London, UK
Cex.io is a global cryptocurrency ecosystem that offers a market-leading crypto exchange. The app uses scalping and frequency trading strategies to secure clients’ digital assets and data. Over 300 employees work in its offices in the UK, USA, Gibraltar, Cyprus, and Ukraine.
Cex.io offers 360-degree services to traders, businesses, and financial institutions. However, not every service is available in all Cex.io markets globally. The main benefit of using Cex.io over Coinbase is its Prime Liquidity solution that aggregates the liquidity of regulated cryptocurrency exchanges.
Cex.io Prime Liquidity was launched in Feb 2021 to help investors reduce risk and operational costs. By Nov 2021, Prime Liquidity had processed $6 billion in volume. Cex.io is an innovative Coinbase competitor. [19]
18. Coinmama
Year founded: 2013
Headquarter: Slovakia
Coinmama is a financial service that offers cryptocurrency exchange. It provides multiple payment options, instant order delivery, and high spending limits for traders globally. Users can buy Ethereum, Bitcoin, and other cryptocurrencies with their credit card or debit card.
Coinmama offers cryptocurrency calculators to simplify fiat-to-crypto conversions. Users can leverage its loyalty program to reduce their transaction fees. The exchange isn’t ideal for margin traders. However, Coinmama is the best Coinbase alternative for trading specific cryptocurrencies like Bitcoin and Ethereum. [20]
19. Changelly
Year founded: 2015
Headquarter: Prague, Czech Republic
Changelly is a non-custodial cryptocurrency exchange with 196 supported currencies. Users have access to more tradeable options than most cryptocurrency exchanges and brokerages. This easy-to-use service allows users to buy cryptocurrencies quickly and easily using their credit cards.
Although Changelly offers smaller coins, the platform only accepts US dollars, British Pound, and Euro. Coinbase provides more than these three fiat currencies. But Changelly charges lower rates for crypto-to-crypto exchanges than Coinbase. [21]
20. Beaxy Exchange
Year founded: 2019
Headquarter: Chicago, Illinois
Beaxy Exchange is a centralized exchange for trading crypto assets. Users can leverage AI-generated trading signals and TradingView charts for technical analysis.
In Sep 2021, Beaxy partnered with the leading blockchain infrastructure provider Blockdaemon. The company began migrating its operations to Blockdaemon’s ecosystem. More than 25 million registered users worldwide use this platform. This partnership boosts Beaxy’s competitive advantage over Coinbase. [22]
21. Bitfinex
Year founded: 2012
Headquarter: Virgin Islands
Bitfinex is a cryptocurrency exchange owned by iFinex Inc. The platform offers advanced chart tools for visualizing orders. Bitfinex users can trade Bitcoin, Ethereum, EOS, Litecoin, Tether, and more.
Bitfinex provides several trading options, including spot trading, margin accounts, derivatives, and paper trading. But the company has a history of regulatory challenges, including theft of users’ money and multiple fines. In Oct 2021, the CFTC fined Bitfinex $42.5 million for misleading investors about its Tether stablecoin.
The platform allows users to manage cryptocurrencies in one place, enticing for beginner and expert crypto users. Despite regulatory challenges, Bitfinex can still poach some customers from Coinbase. [23]
22. Huobi
Year founded: 2013
Headquarter: Seychelles
Huobi is an online crypto-currency exchange for trading Bitcoin and Ethereum. The platform also provides secure and convenient trading services for hundreds of digital assets. In Aug 2018, Huobi went public in a direct listing in the Hong Kong stocks exchange.
Huobi is the leading cryptocurrency exchange in China. Unfortunately, China announced a total ban on cryptocurrency from Jan 2022. Throughout Dec 2021, Coinbase competitor Binance has seen significant Bitcoin inflows. But the inflows appear to cancel each other out, indicating that Binance is absorbing orphaned Huobi users. China’s crackdown on crypto trading undercuts Huobi’s competitive advantage over Coinbase. [24]
23. Public
Year founded: 2017
Headquarter: New York, NY
Public.com is a social investing app that allows users to invest in companies commission-free. It offers fractional shares of stocks and ETFs. The company has a valuation of $1.2 billion.
In Feb 2021, Public.com raised $220 million to add crypto trading to its platform. Public.com is the latest Coinbase competitor. But the company already has an advantage because its offers crypto and stock trading. Currently, 90% of Coinbase’s revenues come from crypto-trading fees. In the first half of 2021, Bitcoin dropped more than 50% and wiped out 35% of Coinbase’s shares. The Public’s diversified portfolio reduces the impact of volatile cryptos. [25]
24. OKEx
Year founded: 2017
Headquarter: Seychelles
OKEx is a cryptocurrency exchange owned by Ok Group, the parent company of OKCoin. It is one of the world’s largest exchanges for spot and derivatives trading. Over 20 million users across 200 countries use OKEx to buy and sell various cryptocurrencies. The company has more than 1,000 employees.
OKEx offers advanced financial services and excellent primers that make it easy for beginners to buy, sell, or trade cryptocurrencies. Although the platform is not available in the US, US residents can engage in crypto trading via its sister exchange OKCoin.
OKEx provides innovative trading tools, flexible borrowing, and high returns on staked tokens. It is the best Coinbase alternative for users interested in crypto mining and DeFi liquidity mining. [26]
25. BitMEX
Year founded: 2014
Headquarter: Seychelles
BitMEX is a P2P trading platform that offers access to the global digital currency financial market. This cryptocurrency exchange is owned by HDR Global Trading Limited. In 2020, BitMEX launched its ‘Beyond Derivatives’ transformation strategy to expand into five new business segments.
BitMEX’s five new segments include Spot, Brokerage, Custody, Info Products, and Academy. In Jan 2021, the company completed its user verification program. Now, BitMEX is the largest crypto derivatives exchange with verified active users.
BitMEX expanded its platform further in Dec 2021, with the launch of BitMEX EARN. These transformations increase BitMEX’s competitive advantage over Coinbase. [27]
References & more information
- Haselton, T. (2021, Apr 14). Here’s what Coinbase is and how to use it to buy and sell cryptocurrencies. CNBC
- Curry, D. (2021, Nov 15). Coinbase Revenue and Usage Statistics. Business of Apps
- Curry, D. (2021, Nov 15). Binance Revenue and Usage Statistics. Business of Apps
- Fitzgerald, M. (2021, Jul 28). Robinhood is valued at $32 billion after selling shares in IPO at $38 per share. CNBC
- Mozée, C. (2021, Dec 27). Kraken is working on a marketplace where customers can take out loans backed by their NFTs. Business Insider
- Redman, J. (2021, Dec 26). com Accuses Coinmarketcap.com of ‘Arbitrarily Reducing’ Exchange Rankings. Bitcoin News
- Wright, T. (2021, Dec 28). FTX exchange floats $1M prize for banks to accept stablecoins. Coin Telegraph
- Bit Degree (2021, Jun 1). Coinbase vs. Bittrex: Crypto exchange comparison. Bitdegree.org
- Friedberg, B. (2021, Dec 24). eToro Review. Forbes
- Newbery, E. (2021, Dec 23). KuCoin Review: Excellent Advanced Crypto Trading Features. The Motley Fool
- Castillo, M. (2021, Nov 18). Gemini raises $400 Million to Build a Metaverse Outside Facebook’s Walled Garden. Forbes
- TradeStation (2021, Jan 21). TradeStation Group Subsidiaries Rated “#1 Platform Technology” for the Ninth Consecutive Year. PR Newswire
- Perez, S. (2021, Dec 14). Cash App now lets users ‘gift’ stock and bitcoin using their USD balance or a debit card. TechCrunch
- Sera, P. (2021, Aug 10). Venmo to allow credit cardholders to automatically buy cryptocurrency with their cashback. TechCrunch
- Perez, S. (2021, Apr 27). ZenGo Raises 20 million for its Secure Crypto Wallet App. TechCrunch
- Schmidt, J. (2021, Dec 21). Bitcoin IRA: How to Invest for Retirement with Cryptocurrency. Forbes
- Paxful (2021, Oct 9). Paxful partners Built with Bitcoin Foundation to fund Qala Fellowship. Vanguard
- Houston, R. (2021, Nov 26). Voyager review: Trade more than 60 cryptocurrencies without fees. Business Insider
- io (2021, Nov 9). CEX.IO announces the rapid growth of its Prime Liquidity business. Globe
- Newswire
- Houston, R. (2021, Aug 3). Coinmama Review: Trade 10 cryptocurrencies with multiple payment options. Business Insider
- Newbery, E. (2021, Sep 2). Changelly Review: Wide Range of Cryptocurrencies. The Motley Fool
- PR News (2021, Sep 7). Beaxy Taps Blockdaemon for Node Infrastructure. PRNewswire
- Rosenberg, E. (2021, Dec 22). Bitfinex Review. Investopedia
- Suberg, W. (2021, Dec 29). ‘Net neutral’ — Rising Bitcoin exchange balances could be due to Huobi Chinese user block. Coin Telegraph
- La Monica, P. (2021, Jun 22). Coinbase plunges along with bitcoin and the rest of crypto. CNN
- Constantino, T. (2021, Nov 11). OKEx Review: Robust Trading Suite for Cryptos, Derivatives, Staking, and Lending. The Motley Fool
- Bossung, T. (2021, Dec 1). BitMEX Introduces Most Rewarding Crypto ‘Earn’ Product Yet. Business Wire
- Featured Image by Executium
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Kevin Johnson
Brianna Parker
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