Enjoy Gaes - Crypto exchanges function similarly to online brokerage platforms, providing you with the tools you need to buy and sell digital currencies and tokens like Bitcoin, Ethereum, and Dogecoin.
When choosing a cryptocurrency exchange, it’s important to look at factors such as supported assets, fees, payment methods, and security. We considered these factors when selecting this list of the best cryptocurrency exchanges.
Compare the Best Cryptocurrency Exchanges
| Company | Transaction Fees | Currencies | Minimum Deposit or Purchase | Trade Limits |
|---|---|---|---|---|
| KrakenBest for Low Fees & Experienced Traders | 0.00% to 0.26% | 185+ | $1 | No |
| CoinbaseBest for Beginners | 0.00% to 0.60% | 200+ | $2 | Yes |
| Crypto.comBest Mobile App | 0.00% to 0.075% | 250+ | $1 | Yes |
| GeminiBest for Security | 0.0% to 0.40% for active trader, 1.49% for most transactions on regular platform | 75+ | Varies | Yes |
| BitMartBest for Altcoins | 0.045% to 0.25% | 1000+ | $50 for Bitmart purchases | No |
| Cash AppBest for Bitcoin | Varies | 1 | $1 | Yes |
| BisqBest Decentralized Exchange | 0.1% to 0.70% | 120 | Not Disclosed | No |
Guide for Choosing the Best Crypto Exchanges
Are Crypto Exchanges Worth It?
If you are looking to purchase cryptocurrencies, signing up for a crypto exchange can be your best option to get started.
While buying a few hundred dollars worth of Bitcoin from a local Bitcoin ATM may be convenient, it makes more sense to use an exchange if you are looking to invest a larger amount or you’re interested in buying a range of cryptocurrencies.
Crypto exchanges are the safest and most legal way to obtain cryptocurrency. But that’s not the only reason using an exchange is most suitable. Here are some of the reasons crypto exchanges are worth it.
- Crypto exchanges let users buy and sell cryptocurrencies online or using a mobile app, making it easy to access the crypto markets from anywhere.
- Most cryptocurrency exchanges offer a range of digital currencies and tokens, providing numerous options for investors that want to build a diversified portfolio of digital assets.
- Leading crypto exchanges typically hold user funds in cold storage to ensure the safety of assets.
- Global crypto exchanges usually comply with Know Your Customer and Anti-Money Laundering (KYC/AML) rules as well as financial regulations. Therefore, users can be assured they’re not dealing with a fraudulent company or malicious market participants.
Comparing Crypto Exchange Platforms
When choosing a crypto exchange that meets your needs, there are several factors to consider. The most important things to look at are:
- Supported assets: If you are looking to buy cryptocurrencies other than Bitcoin, look at the list of supported assets before deciding on an exchange. Some only support a few cryptocurrencies, while others allow you to trade hundreds.
- Payment methods: Crypto exchanges typically offer a handful of ways to fund your account or purchase cryptocurrencies directly. While most exchanges support wire transfers, some platforms also allow you to buy crypto using credit cards, debit cards, and other digital payment methods.
- Fees: High fees can eat into your investment returns, which is why it is important to research crypto exchange fees before you open an account. Crypto exchanges typically charge trading fees and withdrawal fees, but other fees can also pop up.
- Security: Unfortunately, crypto exchanges are a prime target for hackers looking to get their hands on cryptocurrency. Security breaches and cyber theft are common in the crypto exchange landscape, which is why it is essential to choose an exchange with strong security measures in place.
- Customer service: If you are new to cryptocurrency or investing, you may have questions or need help getting started. In that case, choosing an exchange with excellent customer support is probably the right move.
- Reputation: Before you sign up for an account on a crypto exchange, it’s a good idea to research that exchange’s reputation first. Read customer reviews, look into the exchange’s history, and look for any recent news stories that might provide some valuable insight
Signing Up for a Cryptocurrency Exchange Account
Opening an account on a cryptocurrency exchange works in a similar way to signing up for an online brokerage account.
You typically need to provide an email address and a password to initiate account creation. Next, you will receive an email asking you to confirm that you are the owner of the email address you provided.
Once you confirm your email address, you will usually be asked to complete an identity verification process. This generally involves providing personal information, proof of address, and uploading a copy of a government-issued photo ID. Most crypto exchanges ask for your full name, home address, and mobile number, as well as a utility bill or bank statement as proof of address and a digital copy of your passport or driver’s license.
Some exchanges may also require an extra step to prove the ID you're uploading is actually yours. Generally, this involves taking a photo of yourself holding your ID with a webcam or phone and submitting the photo to the exchange.
User verification can take from a few minutes up to several days depending on the exchange and the level of verification required. Exchanges often offer tiered verification levels, with lower tiers requiring less information. Lower verification tiers, however, usually come with lower deposit and withdrawal limits.
After completing the verification process, you can fund your trading account using the available funding options and start to buy and sell cryptocurrencies.
Frequently Asked Questions
What Is a Cryptocurrency Exchange? How Does It Work?
A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. Crypto exchanges work similar to online brokerages, as users can deposit fiat currency (such as U.S. dollars) and use those funds to purchase cryptocurrency. Users can also trade their cryptocurrency for other cryptocurrencies, and some exchanges allow users to earn interest on assets held within the exchange account.
What Should You Look at When Choosing a Cryptocurrency Exchange?
When choosing a cryptocurrency exchange, there are several things to consider, including security, fees, and cryptocurrencies offered. It is also important to understand how your cryptocurrency is stored and whether you can take custody of that cryptocurrency by transferring it to your own digital wallet.
Cryptocurrency exchanges also come in centralized and decentralized formats. Centralized exchanges closely align with financial regulations from governmental authorities (such as the U.S. Securities and Exchange Commission). Many will insure U.S. dollar deposits and require proof of identity to use the platform. Decentralized exchanges are unregulated online exchanges hosted on distributed nodes that are user-owned, and there is no centralized governing authority. While this may sound scary, decentralized exchanges offer transparent transactions and fees as well as direct peer-to-peer exchange of cryptocurrency.
How Do You Buy Cryptocurrency?
Most centralized exchanges allow you to deposit funds via your bank account, credit card, or debit card to purchase cryptocurrency. You can then exchange those funds for the cryptocurrency of your choosing. While some offer only simple market orders, other exchanges will allow you to set more advanced order types, including limit and stop orders.
Once you purchase crypto through an exchange, the exchange typically holds it in a custodial wallet. Most exchanges store assets in offline “cold storage” for safekeeping. If you want to take custody of the cryptocurrency yourself, most exchanges allow you to transfer it to your “hot” or “cold” wallet, along with the private keys for that cryptocurrency.
How Do You Open a Cryptocurrency Exchange Account?
To open an account, most cryptocurrency exchanges require you to provide your name, email, personal information, and proof of identity (to follow KYC standards). This process may include answering personal questions, verifying your identity with a third-party application, or providing a picture of your driver’s license.
Once your account is approved, you can then deposit funds and start purchasing cryptocurrency.
How We Chose the Best Crypto Exchanges
Our team reviewed 28 cryptocurrency exchanges and collected over 1000 data points using publicly available information before selecting our top choices. We weighted more than 20 criteria and gave a higher weight to those with a more significant impact on potential customers.
The top picks were selected based on factors like trading fees (weighted 20%), withdrawal fees (15%), and if an exchange offers cold storage of crypto assets (weighted 10%).
We also took into account platform availability, the number of cryptocurrencies available, and customer support options. For further information about our selection criteria and process, our complete methodology is available.
