Getting into Crypto: The Best Crypto Exchange for Beginners

best crypto exchange singapore

After reading my last post about how I ventured into the crypto space and doing your own research into the field, you might have started to realize that buying crypto is slightly more complicated than stocks…

You can’t just buy it from your usual broker account and in fact, you don’t even use a broker to buy crypto, you just get it through an (trusted) crypto exchange.

Crypto Exchanges Explained

A crypto exchange, much like our stock exchanges, allow users to trade between different cryptocurrencies.

However, unlike normal stock exchanges, where transactions always involve cash on one side and shares on the other, crypto exchanges sometimes only offer transactions from one cryptocurrency to another.

Fear not however, most large crypto exchanges do allow purchase of crypto with fiat money. These are also sometimes referred to as fiat on-ramps, as they allow fiat to be exchanged for crypto. Two of the easiest to use are BinanceSG and Gemini.

Key Deciding Factors

When evaluating a crypto exchange, I think the key features to look out for are quite similar to regular stock brokers with a few additional touches. They are:

  1. Security
  2. Ease of Use
  3. Commissions
  4. Supported Crypto
  5. Other Services

Security

Security is the top concern when selecting any crypto exchange, especially with crypto stolen from hacked exchanges (most notably Mt. Gox).

Fortunately, both BinanceSG and Gemini have never been hacked so far (touch wood). Gemini especially also places high emphasis on security and more on their measures can be seen here.

On a personal level, do ensure that your 2FA is enabled, especially the Google Authenticator (for BinanceSG) and Authy (for Gemini), to further secure your account.

Ease of Use

Both platforms are relatively easy to use as well. They use relatively similar interfaces to buy and sell crypto too.

binancesg exchange buy screen
gemini exchange buy screen

Both platforms use a ‘market order’ style to take your buy order, allowing you to select the amount you’d like to purchase in SGD and taking it at the market rate for the specific cryptocurrency. This makes it easy for crypto newbies to enter the space without much prior experience.

Moreover, since both platforms allow fiat to crypto purchases, this is a big plus for both of these exchanges.

Commissions

Ah commissions, one of the key deciding factors for most investors. On a quick glance, Gemini’s trading commission seems to be astronomical, at 1.49% compared to BinanceSG’s 0.6%.

However, Gemini has an ActiveTrader* function, which allows more advanced order types and (perhaps more importantly) only charges 0.35% in trading commissions! This can be changed in your Gemini Account Settings.

gemini exchange settings activetrader

As such, in this department, Gemini definitely has the edge over BinanceSG.

*Do note that when activating Gemini ActiveTrader, you’ll come face to face with this slightly intimidating screen. However, nothing to fear, I will be covering how to navigate ActiveTrader like a pro in the post next week, stay tuned!

gemini exchange activetrader screen
BinanceSG Gemini
0.6%
1.49% (0.35% on ActiveTrader)

Supported Crypto

Unlike brokers, the cryptocurrencies you are able to buy depends on the coins listed by the exchange. This means that if your exchange does not support the coin you would like to purchase, you will likely have to go to a different exchange to acquire it.

BinanceSG Gemini
8 supported cryptocurrencies: BTC, ETH, LTC, BNB, LINK, BCH, XRP, NEO
40 supported cryptocurrencies (and counting): BTC, ETH, DAI, COMP, MATIC, SUSHI, YFI, and many more *
* More on that here

As such, once again, Gemini does have the edge over BinanceSG with the larger variety in cryptocurrencies offered on their exchange.

Other Services

Many crypto exchanges also offer additional services such as lending services to earn extra income on your crypto or cold wallet storage services to increase the security on your crypto.

BinanceSG currently does not offer any additional services.

Gemini offers quite a few services including Gemini Custody and (the one which everyone is probably more interested in) Gemini Earn.

Gemini Earn allows you to earn rewards for loaning out your cryptocurrencies. Interest will be paid in-kind (meaning if you loan BTC, you will be paid in BTC). These interest rates can range from 2.05% on BTC to 7.40% on stablecoin, DAI.

gemini exchange earn on crypto

You might be thinking 2.05% ain’t much, but if you’re going to HODL your BTC, why not loan it out for some additional returns?

Conclusion

As you can see, from the comparison above, both crypto exchanges are definitely easy options to get started in the crypto world if you’re looking into it. In my opinion however, Gemini definitely has an edge in their fees, cryptocurrency offerings, and services offered on their exchange.

Factor Winner
Security
On par
Ease of Use
On par
Commissions
Gemini (On ActiveTraader)
Supported Crypto
Gemini
Other Services
Gemini

If you’re looking to create an account with Gemini, do consider using my referral link! I will receive a small reward if you do so, at no cost to yourself. Thank you for helping to keep content creation sustainable!

Photo by Tech Daily on Unsplash

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