Best Bitcoin Exchanges for July 2024: Which Wins & What to Know
With so many Bitcoin exchanges to choose from, how do you know which is right one for you? We are here to help choose between three of the best Bitcoin exchanges in July of 2024: Swan Bitcoin, Coinbase and Binance.
Choosing the best Bitcoin exchange is essential. The following review breaks down two of the most popular exchanges Coinbase, Binance, and Swan Bitcoin, a Bitcoin-only exchange in the United States.
Bitcoin-only Exchanges vs. Cryptocurrency Exchanges
Cryptocurrency exchanges are online platforms that facilitate the buying, selling, and trading Bitcoin, altcoins, stablecoins and other digital assets.
Exchanges serve as intermediaries, connecting buyers and sellers and providing a marketplace for individuals to exchange their fiat currency (U.S. dollars, Euros, etc.) for Bitcoin and vice versa.
Altcoins refer to ANY cryptocurrency other than Bitcoin. These alternative digital assets are often funded through pre-sale token agreements and usually do not have clear legal definitions. Many of these ICO-launched networks are Ponzi-like and one-hit wonders.
Several types of exchanges exist for different investors, making choosing the best Bitcoin exchange even more challenging.
Swan Bitcoin
Founded in 2019 and headquartered in Los Angeles, California, Swan Bitcoin has made buying and owning Bitcoin a breeze.
Swan removes the complexity and confusion surrounding Bitcoin IRA investing and is accessible to a broader audience for low fees and 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.
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 portfolio’s 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 easy for newcomers is the ease of setting up automate recurring Bitcoin purchases (with private key ownership) at regular intervals, helping create a disciplined, low-time preference investment strategy to build wealth over time.
Coinbase offers this feature, BUT the exchange maintains control over the private keys.
Swan Bitcoin IRA offers a tax-deferred or tax-free solution to incorporating Bitcoin into a retirement portfolio. Swan offers self-managed Traditional or Roth IRAs, with Bitcoin held in a legal, regulated trust account maintained by a qualified and authorized custodian.
What to know: The best Bitcoin exchanges provide unique products and services like an IRA product to help them differentiate themselves from major competitors. Neither Binance nor Coinbase offer a tax-free IRA product.
Swan Support: Best in Industry Customer Support
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 rated the best in the industry by many. If you ever have any problems, you can usually reach a Swan Support customer service representative in 10 minutes or less.
What to know: For U.S. citizens, this is not possible on Coinbase. The best Bitcoin exchanges offer exceptional levels of customer service.
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. The Swan Private team produces a monthly research report to keep you updated and educated about the latest Bitcoin developments and the broader financial world.
Swan Force
Swan Force is another Swan entity to earn Bitcoin by helping other users and businesses engage with the Bitcoin ecosystem.
Swan Bitcoin-only Trust
On September 14th, 2024, Swan 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. BitGo has been safeguarding Swan users' Bitcoin in cold storage custody since June, 2023 — a practice that will continue.
Swan Vault
On October 5, Swan Bitcoin and Blockstream announced Swan Vault. With Blockstream Jade’s support, Swan Vault provides Bitcoin investors with robust and user-friendly solutions to the complex challenges of secure and safe Bitcoin custody.
One curated piece of Bitcoin content, a job listing in the Bitcoin industry, thought provoking quote and Bitcoin-only event — published every weekday. Only the highest quality articles, podcasts, and videos make the cut.
Employee Bitcoin 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.
Fees
Swan charges ZERO on your next or first $10k purchase — only a 0.99% fee on all Bitcoin buys thereafter; that’s all. No deposit fees, no withdrawal fees, no hidden fees.
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.
The best Bitcoin exchanges offer low fees and don’t charge their customers hidden fees like spread fees.
Swan does not charge a spread to its customers. This dramatically reduces the hardware, software, and staff costs required to support multiple coins. There are no inactivity fees, withdrawal fees, overdraft fees, custody fees** or fiat withdrawal fees involved.
Let’s take a look at the two leading alternative cryptocurrency exchanges: Binance and Coinbase.
Binance
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.
Key Features
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.
Fees
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.
You’ll incur 0.1% trading fee, and Instant buy/sell will incur a 0.5% fee.
Binance has a number of hidden fees such as different withdrawal fees 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.
Customer Service
Comprehensive and fast customer support.
Extensive FAQ section, a ticketing system for specific inquiries.
Live chat feature for real-time assistance.
What to know: The best Bitcoin exchanges include a live chat feature for their customer base.
Trustpilot
Custody
Binance offers a range of custody solutions for institutional clients and high-net-worth individuals who require secure storage for their digital assets. Binance Custody became Ceffu in February of 2023.
Regulatory Clarity
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. Recently, the SEC filed lawsuits against Binance. In the suit, the SEC names at least (67) alternative cryptocurrencies it believes are unregistered securities.
Coinbase
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. Coinbase provides a straightforward interface and services catering to individual retail investors and institutional clients.
Many consider Coinbase the best Bitcoin exchange for U.S. citizens.
A platform designed to cater to experienced traders who require more sophisticated trading tools than what is offered on Coinbase’s basic platform.
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.
Designed to meet clients' needs, requiring a highly safe and reliable custodial solution for their digital assets.
Fees
Coinbase fees are considered much higher than other exchanges, like Swan. Still, Coinbase’s ease of use makes it an attractive option for users looking for a reliable onboarding experience and most new retail investors don’t pay close attention to the fee difference.
Coinbase Security Measures
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.
What to know: The best Bitcoin exchanges conduct multiple audits annually.
Coinbase Issues with User Funds Protection
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.
What to know: The best Bitcoin exchanges hold their customers' funds in cold storage wallets.
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.
Coinbase carries crime insurance that protects a portion of digital assets held across our storage systems against losses from theft, including cybersecurity breaches.
However, itspolicy 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.
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.
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.
Coinbase Customer Service: Problematic, At Best
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.
In August, 2021 CNBC wrote a highly shared article about Coinbase customer support problems.
Customers regularly complain about this on Twitter, Trustpilot, and forums like Reddit. Coinbase 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.
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.
Offers customer support through email and a ticketing system.
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.
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 a non-Bitcoin 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.
Swan Bitcoin Advantages > Binance and Coinbase
Using Swan and buying only Bitcoin has several advantages:
Clear blue regulatory skies
The SEC has publicly stated that Bitcoin isn’t a security and doesn’t fall under the SEC’s regulatory mandate. Swan Bitcoin focuses on recurring Bitcoin purchases for long-term investments, emphasizing simplicity and regulatory clarity.
What to know: The best Bitcoin exchanges are completely transparent about their regulatory standing and avoid cryptocurrencies that could present significant legal problems.
Drew, a class of 2013 Bitcoiner, is a Research Analyst for Swan Bitcoin.
He has worked in institutional VC/PE, FinTech, and DLT consulting for over six years. He also brings over twelve years of experience working with national nonprofits and start-ups in education and software development in several leadership roles.
Discover how Swan Vault puts you in full control of your Bitcoin with a simple, secure setup. See just how easy it is to safeguard your wealth and unlock your monetary autonomy.
