What is The Best Platform for Investing in Cryptocurrency?

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What is The Best Platform for Investing in Cryptocurrency: After seeing how to invest in cryptocurrencies (the 3 strategies and 4 best practices), discover our comparison of the best platforms for investing in cryptocurrency.

We highlight our favorite platforms, first explaining our selection criteria (security, fees, features, etc.) Once again, we thank Cedric (LinkedIn profile) who helped us compare the platforms.

Cryptocurrency investment platforms: what criteria to choose?

Numerous players are offering to buy cryptos but not always of quality. Several criteria should be observed when choosing the platform. 

Safety and reliability

Contrary to what some might think, investing in cryptocurrency is not a game. The security of your cryptocurrencies comes first. This results in offline storage and crypto encryption.

For reliability, the best is a platform regulated in the country of its headquarters. For example, Coinhouse, which has its headquarters in Paris, is regulated in France by the Financial Markets Authority. Add to that an audit carried out by a reputable firm. 

Don’t compromise on security. This is an essential criterion. Market participants have become one of the favorite prey of hackers. It is still a lucrative market with millions of euros in crypto assets at stake. It is better to avoid platforms that do not treat this subject seriously.  

Functionalities

Trading-related activities are often present: purchase orders, leverage, etc. Experts will be happy about it.

For our part, we favor the purchase or sale of cryptocurrencies directly via the platform. Simplicity guarantees to invest and withdraw your winnings easily.

The possibility of converting different cryptocurrencies between them is also an asset.

The different offers

Our diagram presented in the article How to Invest in Cryptocurrency (which compares countries, currencies, and cities) categorizes the different parts. We recommend choosing a platform that gives access to a wide selection of cryptos and tokens.

The most popular cryptos (BTC and ETH in particular) are generally available on all platforms. Some stand out by offering a wide variety of assets, including tokens recently issued by ICO ( Initial Coin Offering ).

But as we saw in the best practices for investing in cryptocurrency, it is better to invest mainly in the main cryptocurrencies on the market, it is less speculative.

Others offer their users to finance projects in development before the release of the token ( parachains ). Finally, the presence of a stacking or saving offer allows remuneration by interest rate—an explanation of staking and saving strategies.

Expenses

Investing in cryptocurrency incurs fees. The fees you will encounter depend on how you buy crypto:

  • by bank card, they are higher. Around 3 to 4% of the transaction amount.
  • bank transfers to your account are free (except Coinhouse with direct purchase of cryptocurrencies by transfer for 2.99%). But converting euros into cryptocurrencies generates platform fees (that said, it’s only €1).
  • exchanges from one crypto to another are paid.
  • withdrawals of cryptos to another platform or personal wallet are also chargeable. 

We specify the fees for our 2 preferred platforms below.

Defi vs. CeFi

Finally, to access cryptocurrencies you must choose style. DeFi is decentralized finance. It wants to be more free and interactive. This is the very heart of innovation in the blockchain ecosystem. However, DeFi must be mastered. Here, creating a wallet comes down to remembering a key phrase and choosing a password.

We recommend CeFi for the less experienced. This is centralized finance that requires verification of your identity. What follows is customer service and great liquidity facilitating purchasing and reselling (with the best exchange platforms that we will see).

There is the choice of using these two styles. Some exchanges even offer a DeFi wallet service. This is the case of Coinbase, one of the pioneers of the sector.

Investing with Coinhouse or Trade Republic?

The best cryptocurrency investment platform depends on your use, whether you prefer comfort (AMF approval, very accessible customer service) or optimization of fees.

Coinhouse for Comfort School

We favor Coinhouse for the comfort school (Coinhouse review). Registered with the AMF as a Digital Asset Service Provider (PSAN number E2020-001), the platform has excellent relationships with French banks. 

So no regulatory worries for buying and selling your cryptos, without your bank rolling its eyes and blocking the funds.

We appreciate the advice on setting up a crypto portfolio based on our risk profile. This offer is available to all customers.

The customer area is very clear. We see that everything has been designed for beginners, Coinhouse (see the customer area) is not aimed at experts.

In addition, as a Coinhouse customer, I was able to appreciate the very responsive and efficient customer service by telephone (01 82 88 29 51). On several occasions, without having to subscribe to a Premium offer, I took advantage of investment advice and support over the telephone to place my orders. It was the advisor who gave me the following tip about fees.

The only drawback is the relatively high fees: 0.99% crypto purchase fees via the Euro account.

For security, Coinhouse offers 2FA two-factor authentication.

Trade Republic for school optimization

Trade Republic is a well-known stock broker in Europe. Our Trade Republic review. Good news, at the end of 2022 they launched their crypto offer.

Why good news? In terms of fees, Trade Republic is unbeatable and very simple: €1 per purchase or sale order, regardless of the deposit method.

Even better: there’s a scheduled investment feature. For example, you can automatically buy €100 worth of Bitcoin per month. And in this case, the fees drop to €0 instead of €1 per order!

In addition, the interface is very clear and even simpler than Coinhouse. Perfectly suited to beginners, whether on a computer or smartphone.

That said, the only downside: the exchange between cryptos is not possible. So you have to sell your cryptos to switch to fiat currency (and trigger a tax event), then buy another crypto.

Bitpanda: to diversify (and create a scheduled savings plan)

We have not presented it in the table due to lack of space, but it deserves 3 stars too.

Bitpanda is a regulated platform, registered with the AMF as a Digital Asset Service Provider (PSAN number E2020-006).

We like Bitpanda because it provides access to 2 services that are faithful to our best practices:

Diversification

the (BCI) works like a tracker. That is to say that in 1 purchase order, you can invest in a basket of several cryptocurrencies. With BCI 5 we invest in the 5 main cryptocurrencies on the market. 

Read also: Cryptocurrency Trading Strategies You Need To Know?

Or the BCI 10 to invest in the top 10, or BCI 25 to invest in the top 25. Every month, there is an automatic adjustment to continue to be invested in the main cryptos.

Scheduled investment

allows you to smooth your investment over time, to better withstand volatility. In practice, it is enough to specify the amount and frequency of purchases (by bank card). 

Thus, we can automatically invest every month in the cryptocurrencies of our choice (or on the “Bitpanda Crypto Index” bringing together the 5/10/25 largest cryptocurrencies).

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