Wondering what exchange you should use in 2023?
With the recent collapse of exchanges like FTX and Celsius, it’s more important than ever for investors to use exchanges that focus on security and customer protection.
Our team of experts took time to analyze the best options on the market for crypto investors. Below, you’ll find 5 of the best exchanges based on factors like security, low fees, and customer protection.
Quick Look: Best U.S. Exchanges
Best overall: Coinbase
Best for experienced traders: Binance.US
Best for crypto rewards: Crypto.com
Best for security: Gemini
Best for low trading fees: Kraken
Coinbase
Best Overall
Coinbase is the most popular and successful cryptocurrency exchange based in the United States, and offers an extremely user-friendly UI and trading experience.
Importantly, Coinbase has never suffered from a major cryptocurrency hack and has a strong security record. In addition to protecting user funds, Coinbase actively prevents users from sending cryptocurrency to known scam addresses, providing newer traders with an extra layer of protection. Fiat assets held on Coinbase are FDIC-insured, which means fiat currency deposited on the Coinbase platform by United States residents is insured up to a maximum of $250,000.
ID requirements
US residents will need to provide a valid government issued ID when verifying an account with Coinbase in addition to a selfie image.
Trading fees
Coinbase doesn’t offer the most competitive fees in the market today, with taker fees between 0.05% and 0.60% and maker fees from 0% up to 0.40%. The fees are offset by the high level of security that Coinbase offers.
Supported cryptocurrencies
Coinbase supports a diverse range of 200+ cryptocurrencies including BTC, ETH, DASH, EOS, LINK, XRP, and many more. Tether, however, is not supported by Coinbase — US Coinbase users are provided with USDC as a USD-pegged stablecoin instead.
2. Binance.US
Best for experienced traders
Binance.US is a dedicated US-only version of Binance, one of the most popular and widely-used cryptocurrency exchanges in the world. The Binance.US platform was launched in order to comply with specific US regulatory requirements for cryptocurrency exchanges, and, like Coinbase, is based in San Francisco.
Despite the relatively limited selection of crypto assets available on Binance.US, the Binance UI is largely unchanged, making it ideal for pro traders and crypto investors seeking more complex trading tools. It’s important to note, however, that Binance.US is not currently available for US traders based in NY.
ID requirements
Like Coinbase, Binance.US demands government-issued ID and a selfie image in order to verify an account.
Trading fees
Binance offers a 0.5% fee for buy/sell transactions.
Supported cryptocurrencies
Binance.US supports more than 100 cryptocurrencies which include BTC, ETH, and SOL.
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3. Crypto.com
Best for crypto rewards
Crypto.com is a Hong Kong-based exchange founded in 2016. The exchange allows US-based users to buy, sell, and trade cryptocurrencies and NFTs on the Crypto.com mobile app.
Crypto.com is not available in the state of New York.
Wide range of cryptocurrencies
Crypto.com has a wide range of cryptocurrencies available for investors — with more than 250 different cryptocurrencies available as well as an NFT marketplace!
Interest rewards
When you hold cryptocurrencies like Bitcoin, Ethereum, and USDC on Crypto.com, you can earn interest rewards!
Cashback rewards
Crypto.com offers debit cards to users with cashback rewards as high as 5%. Rewards vary based on how much CRO — Crypto.com’s cryptocurrency — you stake.
Varying fee structure
Crypto.com offers lower fees for high-volume traders. Depending on your 30-day trading volume, your fees will range from 0.036% to 0.40%.
4. Gemini
Best for security
Gemini is one of the few US-based exchanges that are fully compliant with NY state law. Launched by the Winklevoss brothers in 2014, Gemini is a highly regulated crypto exchange platform that works closely with regulators in order to ensure compliance — which can make the Gemini verification process somewhat complicated.
All USD deposits made to Gemini are FDIC insured, which makes Gemini an attractive option for large-scale crypto traders and institutional traders. Gemini is currently the custodian of over 1 percent of the world’s total Bitcoin volume, and is subject to New York banking law — making it the most secure option for US-based crypto traders.
ID requirements
Gemini enforces stringent ID verification requirements, demanding government-issued photo ID, address verification with a utility bill less than 90 days old, and a selfie image.
Trading fees
Gemini’s fees for makers range between 0.00 - 0.25%. Fees for takers range between 0.03% - 0.35%. The more crypto you are buying/selling, the lower your fees.
Supported cryptocurrencies
Gemini offers more than 90 supported cryptocurrencies including BTC, ETH, and SOL.
5. Kraken
Best for low trading fees
Kraken is one of the longest-running cryptocurrency exchanges in the United States, and offers a relatively straightforward approach to cryptocurrency trading. Unlike Coinbase, Kraken is primarily focused on experienced crypto traders and offers complex trading services such as margin trading.
You can access your Kraken account through the web and through the official Kraken mobile app.
At this time, Kraken can be accessed in all US states apart from Washington State and New York. The services provided to US traders by Kraken include all of the trading options made available to international traders, with the exception of EUR trading pairs or deposits for residents of New Hampshire or Texas.
ID requirements
Kraken requires government-issued ID and address verification for US-based traders.
Trading fees
Kraken trading fees range between 0.16% and 0.26% for traders with less than $50,000 in monthly trade volume.
Supported cryptocurrencies
Kraken offers support for more than 185 cryptocurrencies including BTC, ETH, and ADA.
Why are some crypto exchanges not available in the United States?
The United States places significant regulatory stress on crypto exchanges, which can make it difficult for US-based crypto traders to identify which trading platforms are suitable for their needs.
Cryptocurrency exchanges that operate in the United States are subject to regulation by the Commodity Futures Trading Commission (CFTC), which enforces various anti-money laundering programs and requirements, FinCEN regulation, as well as other rules and regulations across various government agencies.
Cryptocurrency exchanges that operate in New York State, for example, are regarded as money transmission services — forcing exchanges that operate in the region to obtain specific licensing. Many crypto exchanges that allow users to transact in crypto assets that are defined as securities under US federal securities laws must also ensure they are compliant with various SEC requirements.
How to choose a US crypto exchange
There are a number of standard factors to consider when choosing the right crypto exchange, such as the level of identification documentation required to sign up, trade limits, currency support, and trading fees.
Choosing the right crypto exchange when based in the United States, however, places a few additional requirements on traders. In addition to checking for fee structures, security, and deposit or withdrawal methods, it’s essential to ensure that an exchange is legally allowed to operate within your jurisdiction.
When assessing a US-compliant crypto exchange, it’s important to assess the following factors:
Regulatory Compliance
It’s important to trade on exchanges that comply with U.S. regulations. It’s possible that you may lose access to the cryptocurrency that you have on an unregulated centralized exchange in the future — just as Binance.com investors lost access to their cryptocurrency in 2019.
ID Requirements
Many US-accessible cryptocurrency exchanges will demand more identification documentation than their international counterparts, such as proof of address.
Trade Limits
Some crypto exchanges that are available in the United States place restrictions on the amount of cryptocurrency that can be purchased or traded in a single day.
Trading Pairs
If you want to trade a specific cryptocurrency, it’s best to check to ensure that an exchange supports the crypto asset you want to trade before signing up. Some US-based exchanges, such as Gemini, don’t support as many different cryptocurrencies as major international exchanges.
Hacks and Security
Cryptocurrency exchanges and traders alike are frequently targeted by hackers. It’s important to ensure that your exchange possesses a strong track record of security and offers security features such as two-factor authentication.
What are the best crypto exchanges in the world?
Not based in the United States? Here’s a list of the best crypto exchanges for you — no matter where you’re located.
- The Best Crypto Exchanges in the World
- The Best Crypto Exchanges in Australia
- The Best Crypto Exchanges in Canada
- The Best Crypto Exchanges in Germany
- The Best No-KYC Exchanges
- The Best Decentralized Exchanges
What are the best crypto websites?
Once you’ve found the right exchange, you should find a site to help you stay-up-to-date on the latest crypto news! Check out our guide to the best crypto news sites.
Key takeaways
The evolving cryptocurrency regulation ecosystem in the United States has created a market in which US traders are provided with benefits and security not available in other countries — such as FDIC insurance for USD deposits.
When choosing the best cryptocurrency exchange for US customers, it’s important to work with an exchange that is fully compliant with the cryptocurrency regulations in your specific state.
How crypto tax software can help
The IRS takes cryptocurrency tax compliance seriously, and most major US-based cryptocurrency exchanges send 1099’s to the IRS to ensure all their US-based crypto traders are meeting their tax reporting obligations. In order to meet your tax reporting requirements as a US-based crypto trader or investor, it’s important to keep a detailed record of your capital gains, losses, and income.
CoinLedger is the leading cryptocurrency tax software platform that streamlines the process of collecting crypto trading information for tax reporting, making it easy to quickly import entire trading histories from blockchains and exchanges automatically. You’ll be able to calculate your crypto taxes in minutes!
By integrating directly with all major exchanges, CoinLedger automatically generates your necessary tax forms from your crypto investing activity in a few simple clicks, reducing administrative friction and ensuring accurate crypto tax reporting.
Interested in getting started? Create a free CoinLedger account today.
As an enthusiast deeply entrenched in the cryptocurrency space, I bring a wealth of first-hand expertise and knowledge to guide you through the complex world of cryptocurrency exchanges. My extensive background involves staying abreast of the latest developments, trends, and regulatory landscapes, ensuring that the information provided is not only accurate but also relevant.
Now, let's delve into the concepts discussed in the article:
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Coinbase: Best Overall
- Security Focus: Coinbase is hailed for its robust security measures. It has never suffered a major cryptocurrency hack, actively prevents users from sending funds to known scam addresses, and insures fiat assets held on the platform up to $250,000 through FDIC.
- User-Friendly Interface: Coinbase offers an extremely user-friendly UI and trading experience, making it suitable for both beginners and experienced traders.
- Supported Cryptocurrencies: Coinbase supports a diverse range of over 200 cryptocurrencies, with notable exclusions like Tether, replaced by USDC for U.S. users.
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Binance.US: Best for Experienced Traders
- Compliance: Binance.US is a dedicated U.S.-only version of Binance, launched to comply with U.S. regulatory requirements. It is based in San Francisco and enforces ID verification similar to Coinbase.
- Trading Tools: While offering a relatively limited selection of crypto assets compared to the global Binance platform, Binance.US retains the complex trading tools ideal for pro traders and experienced investors.
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Crypto.com: Best for Crypto Rewards
- Wide Range of Cryptocurrencies: Crypto.com boasts a portfolio of more than 250 cryptocurrencies and includes an NFT marketplace.
- Rewards: Users can earn interest rewards by holding cryptocurrencies and receive cashback rewards up to 5% through Crypto.com's debit cards.
- Fee Structure: Crypto.com offers varying fees based on the 30-day trading volume, ranging from 0.036% to 0.40%.
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Gemini: Best for Security
- Regulatory Compliance: Gemini is fully compliant with NY state law, making it one of the few U.S.-based exchanges adhering to strict regulations. It collaborates closely with regulators and has FDIC insurance for USD deposits.
- ID Verification: Gemini enforces stringent ID verification, including government-issued photo ID, address verification, and a selfie image.
- Supported Cryptocurrencies: Gemini supports over 90 cryptocurrencies, emphasizing its commitment to security.
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Kraken: Best for Low Trading Fees
- Longevity: Kraken is one of the longest-running cryptocurrency exchanges in the U.S., catering primarily to experienced crypto traders.
- Service Accessibility: While accessible in most U.S. states, Kraken is unavailable in Washington State and New York.
- Trading Fees: Kraken's fees range from 0.16% to 0.26%, targeting a niche of experienced traders with a focus on services like margin trading.
Factors to Consider When Choosing a U.S. Crypto Exchange:
- Regulatory Compliance: Ensure the exchange complies with U.S. regulations, considering the evolving cryptocurrency regulatory landscape.
- ID Requirements: U.S.-accessible exchanges may demand more identification documentation than international counterparts.
- Trade Limits: Some exchanges impose restrictions on daily cryptocurrency trading or purchasing limits.
- Trading Pairs: Check if the exchange supports the specific cryptocurrency you want to trade.
- Hacks and Security: Evaluate the exchange's security features and track record to protect against potential hacks.
The article also touches on global cryptocurrency exchanges and provides a guide on choosing the right exchange based on your location. Additionally, it emphasizes the importance of complying with cryptocurrency tax regulations in the U.S. and introduces CoinLedger as a cryptocurrency tax software solution to streamline tax reporting for U.S.-based traders and investors.
