Cryptocurrency has gained immense popularity across the USA in recent years, leading to the rise of many recommended crypto exchanges in the United States.
Choosing the right crypto exchange is crucial for anyone looking to start trading or investing in digital assets. With a multitude of options available, it can be overwhelming to determine which platform best suits your needs. It is therefore important for you to do research before committing your funds to any exchange.
In this article we will investigate the key points when considering which crypto exchange is right for me, what crypto exchanges are available in the US and the positive and negatives of each in order to help you determine what would be the best crypto exchange in the US for you.
What should you look for to find the best crypto exchange in the US for your needs?
Security measures
The primary concern when choosing a crypto exchange is security. Cryptocurrency transactions and holdings in the US can be a target for hackers, and leaving your holdings on an exchange comes with several risks. It is therefore essential to select an exchange that uses a high level of security measures. Look for exchanges that offer:
- Two-Factor Authentication (2FA): Beyond the typical username and password, this adds an additional layer of security which can generally only be accessed by the user
- Cold storage: This is where an exchange holds a proportion of the exchange’s funds offline, meaning they are safe and protected from any hacks
- Encryption: An exchange should use strong encryption protocols to protect user’s data and transactions
Exchanges like Coinbase and Gemini are well-known for their stringent security practices, making them reliable choices.
Regulatory compliance
In the US, regulatory compliance is crucial. A compliant exchange operates under the guidelines set by financial regulatory bodies, which provides an added layer of security and legitimacy. Without these, there are risks of exchanges being closed down or facing legal issues.
Look for exchanges that are registered with the Financial Crimes Enforcement Network (FinCEN), the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as complying with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations. Please be aware that the regulations around Crypto’s are still developing and changing so it is worth staying on top of the latest news and legal developments.
The majority of the exchanges in the list below follow the regulatory requirements, especially the larger ones, such as Kraken and Binance, providing users with confidence in their operations. There are also other exchanges that don’t follow these regulations and often don’t require forms of ID or have KYC requirements. You can look at examples with Uniswap and Pancakeswap. It is important to note that regulations and restrictions are constantly changing and evolving, and exchanges are often forced to adhere.
Fees and transaction costs
Different exchanges will use a different fee structure which can significantly impact your overall trading costs. It is important to assess and fully understand what costs you will be facing, with the main variable being the following:-
- Trading fees: Usually a percentage of a trade, but may be fixed or variable depending on your trade volume
- Deposit and withdrawal fees: Fees for depositing or withdrawing funds, either charged in cryptocurrency or fiat
- Spread: Difference between the current buy and sell prices of each cryptocurrency. These can vary on each exchange
BinanceUS is one that is often recommended for its low fee structure.
User Interface and Experience
User Interface (UI) and User Experience (UX) are critical, especially for beginners. Look for an exchange that is easy to use as anything too complex can lead to frustration and mistakes. Three key aspects to look out for are:-
- Intuitive design: A clear layout for easy navigation
- Mobile accessibility: A good mobile app is important for people wanting to trade on the go
- Customer support: Reliable and responsive help is important in resolving any issues
Coinbase comes highly recommended to new users, and is praised for its user-friendly design.
Range of cryptocurrencies
If you plan to diversify your portfolio beyond the likes of Bitcoin and Ethereum, and are looking for the next big thing, then you will need an exchange that supports a variety of altcoins.
Binance, Kraken, Coinbase and Crypto.com all offer hundreds of cryptocurrencies, making them popular options for investors looking for low market cap coins, new and upcoming projects or simply looking to expand their portfolios.
Liquidity
This refers to the ease at which you can buy and sell coins without the price being affected. High liquidity and high trading volume typically means you will be able to trade your coins quickly and at a relatively stable price.
The most popular exchanges tend to have the highest liquidity, so Coinbase and Kraken are suitable for traders who value quick and efficient transactions.
Payment methods
Look for exchanges which support your preferred method:
- Bank transfers: These are widely accepted and usually fee, but may take longer to clear
- Credit/debit cards: Faster but higher fees.
- Wire transfers: Suitable for larger transactions but also may take longer and incur larger fees
Coinbase offers a variety of payment methods, including bank transfers and credit/debit cards.
Reputation and reviews
Always look at user reviews and industry ratings to gain insights into a crypto exchange’s reliability and performance. Look for feedback on aspects such as:
- Customer service: How responsive and helpful are they?
- Transaction speed: Are withdrawals and deposits processed quickly?
- User satisfaction: What are the common complaints and user experiences?
I recommend using platforms such as Reddit and Trustpilot to research into exchanges, with real users offering real feedback and experiences.
Additional features
These are some other items that may improve the user experience:
- Advanced trading tools: For experienced trader looking for a crypto exchange in the US, you may look for leveraging tools such as margin trading and futures contracts; stop-loss options help manage trades
- Educational resources: Tutorials, webinars, and articles can help users learn more about cryptocurrency trading.
- Staking and earning programs: Some exchanges offer programs where you can earn interest on your crypto holdings.
Binance and Kraken offer a variety of advanced trading tools and educational resources, catering to both beginners and experienced traders.
What are the main differences between crypto exchanges?
The main differences between crypto exchanges lie in factors such as supported assets, trading pairs, security measures, user interface, and customer support. While some exchanges prioritize security and regulatory compliance, others focus on offering a wide range of trading options and competitive fees. By understanding these differences, you can select an exchange that aligns with your specific preferences and requirements.
What crypto exchanges are available in the US?
The following is a list of some of the largest exchanges available in the US. It is recommended to apply the criteria above as you search for the best crypto trading platforms:
Coinbase
- User-Friendly Interface: Coinbase is known for its intuitive and easy-to-navigate platform, making it ideal for beginners.
- Security: High level of security with strong insurance policies and regulatory compliance.
- Accessibility: Supports a wide range of cryptocurrencies and fiat currencies.
- Integration: Seamless integration with Coinbase Wallet for secure storage and easy management of assets.
Binance US
- Low Fees: Competitive trading fees compared to many other exchanges.
- Wide Range of Cryptocurrencies: Offers a large selection of cryptocurrencies for trading.
- Advanced Trading Features: Provides advanced trading tools and charts for experienced traders.
- Liquidity: High liquidity ensures quick and efficient trades.
Crypto.com
- All-in-One Platform: Combines exchange services with crypto wallets, credit cards, and other financial products.
- Rewards Program: Offers attractive rewards and cashback through the Crypto.com Visa Card.
- Staking: Allows users to earn interest on their crypto holdings through staking.
- Mobile App: Comprehensive mobile app with a wide range of features for managing and trading cryptocurrencies.
Robinhood
- Commission-Free Trading: Offers commission-free trading of cryptocurrencies.
- Integrated with Stock Trading: Allows users to trade cryptocurrencies alongside stocks and other securities in one platform.
- User-Friendly: Simple and intuitive interface suitable for beginners.
- Fractional Shares: Supports buying fractional shares of cryptocurrencies, making it accessible for users with smaller budgets.
Kraken
- Security: Known for its robust security measures and strict regulatory compliance.
- Advanced Trading Options: Offers advanced trading features, including margin trading and futures.
- Wide Range of Cryptocurrencies: Supports a diverse range of digital assets.
- Staking Rewards: Provides staking services with competitive rewards for various cryptocurrencies.
Gemini
- Regulation and Compliance: Highly regulated exchange with a strong emphasis on compliance and security.
- User Experience: Clean and easy-to-use interface suitable for both beginners and advanced users.
- Insurance: Digital assets held in the exchange are insured against theft.
- Gemini Earn: Allows users to earn interest on their crypto holdings.
eToro
- Social Trading: Unique social trading features allow users to follow and copy the trades of successful traders.
- Diverse Investment Options: Supports trading of cryptocurrencies, stocks, ETFs, and more on one platform.
- User-Friendly Interface: Designed to be accessible for users of all experience levels.
- Regulated Platform: Highly regulated with strong security and compliance measures.
Bitstamp
- Longevity and Reputation: One of the oldest cryptocurrency exchanges with a strong reputation for reliability.
- Security: Emphasizes security with strong measures to protect user funds.
- Fiat Support: Supports multiple fiat currencies for easy deposits and withdrawals.
- Professional Trading Tools: Offers advanced trading features and APIs for professional traders.
Bitflyer USA
- Regulated Exchange: Fully regulated in the U.S., ensuring compliance with local laws and regulations.
- Security: Strong emphasis on security with a track record of no significant security breaches.
- User-Friendly: Simple and intuitive interface suitable for all levels of traders.
- High Liquidity: Offers high liquidity, ensuring efficient and quick trades.
