Cryptocurrency has been around for a while, and by now, there’s hardly a person in the modern world that hasn’t heard about it. As more and more people look into investing, the need for reliable places to buy crypto coins increases. This is where crypto exchanges come in.
There are currently over 600 crypto exchanges operating globally, so choosing the right one is a challenge. After considering important factors, such as security, the number of available coins, trading fees, liquidity, and more, we’ve singled out five of the best crypto exchanges in the US.
What Are Crypto Exchanges and How Do They Work?
Crypto exchanges are trading platforms allowing you to buy, sell, and sometimes even stake cryptocurrency or take crypto loans. These platforms offer different ranges of coins, but most of them feature popular cryptocurrencies like Bitcoin, Litecoin, and Ethereum.
In addition to buying and selling, some platforms also enable more complex trading features such as futures trading and margin accounts. Regardless of their features, crypto exchanges have different degrees of suitability for beginners, depending on the user interface.
The two main categories of crypto exchanges are centralized and decentralized crypto marketplaces. Centralized crypto exchanges are regulated platforms that enable the use of fiat currency for buying crypto, which makes them convenient for beginner investors. Due to regulation, these platforms feature mandatory identity verifications of their customers.
In contrast, decentralized crypto exchanges don’t have the same regulation level, and they don’t require identity verifications and checks. While this may be suitable for some users, decentralized exchanges are not for everyone. They are usually more challenging to use, and they don’t support the use of fiat currencies.
Top 5 Crypto Exchanges for US Customers
The list below showcases the top centralized crypto exchanges in the US.
1. Binance
Binance is one of the largest and best-known cryptocurrency exchanges in the world. It supports more than 120 cryptocurrencies and offers more than 1,600 crypto pairs. In addition to its large trading volume, Binance also has some of the most competitive fees in the market. Besides, the more you trade, the lower your maker/taker fee becomes.
Binance enables the use of fiat currency to buy crypto, simplifying the process for people who are just starting to enter the market. It also offers discounts for BNB (Build and Build) for buying and selling other cryptos. However, we must note that some of the platform’s services may not be available in the US.
In terms of security, Binance is one of the most robust platforms out there. It recently became the first crypto exchange platform to operate under a full category-4 license. It features a crypto-asset service provider license from the Central Bank of Bahrain.
2. Kraken
As one of the oldest and most trustworthy crypto exchanges in the US, Kraken has proven its reliability over time. This long-standing platform is available in some Asian Pacific areas, the UK, and most US states, except for Washington and New York. The state of Wyoming issued a banking license to Kraken, adding to the 13 different licenses the platform has around the world.
Kraken enables a wide range of cryptocurrencies, including popular coins, such as ETH, XRP, and BTC and smaller cryptocurrencies like DAI, LINK, ADA, and REP, to name a few. Its users can pay using multiple fiat options, including USD, EUR, GBP, AUD, CAD, and more.
We should also note that, given its interface and the support of complex trading services, Kraken is geared toward more experienced crypto traders. The platform features Android and iOS mobile apps in standard and Pro versions.
3. Coinbase
Coinbase is a San-Francisco-based crypto-asset service provider launched in 2014. It is one of the most popular crypto exchanges in the US, with hordes of users across the country. Even though its fees are on the high side, Coinbase more than makes up for it with its security, reliability, and wide range of services.
The exchange supports a comprehensive range of major and minor cryptocurrencies, along with educational material on all fundamental crypto subjects. Moreover, it runs the Coinbase Earn program, encouraging customers to use these materials and rewarding them with free coins when they do.
The standard Coinbase user interface is straightforward and user-friendly, making the platform perfectly suitable for beginners. The exchange also has a Pro version offering a wider choice of trading features that may be beneficial for advanced crypto traders.
In terms of security, Coinbase is at the forefront of the industry. The platform stores 98% of its users’ coins offline to prevent cyber attacks. It also uses two-factor authentication as an additional security layer. Its insurance policy guarantees that its US customers’ fiat currency funds are insured for up to $250,000.
4. Gemini
Gemini was established in 2014 in New York as one of the first major crypto exchanges. It is heavily regulated by the New York state law, making it one of the most secure places for crypto trading in the country. The number of coins and markets it offers isn’t as large as on other similar platforms, but it has some other competitive features.
The exchange insures its users’ fiat currency deposits in accordance with the Federal Deposit Insurance Corporation guidelines. It supports 26 USD trading pairs, including BTC, LTC, ETH, ZEC, BCH, and more. Gemini’s maker/taker trading fees starting at 0.25% are not the lowest ones you can find, but they are still reasonable.
5. Crypto.com
This Singapore-based crypto exchange is one of the most popular of its kind in the US. One of its most notable features is its offer of more than 250 different coins and a very high trading volume. Crypto.com does have relatively high fees, but it is known for being one of the most secure platforms for crypto trading.
Crypto.com keeps its customers’ fiat currency in separate, designated bank accounts and stores all crypto assets offline. Its clients can rely on a multi-step identification process involving an authenticator and biometric verification in addition to login details and phone confirmation.
The platform also performs regular software peer-reviews, and its security is tested by simulated cyber-attacks.
Final Thoughts
Buying and selling cryptocurrency may sound complicated, but it doesn’t have to be. Provided that you know the basics, you can start trading crypto very easily using any of the mentioned crypto exchanges. These platforms provide top-grade security, a wide range of available coins, big trading volumes, and acceptable fees. If you’re interested in investing in crypto, you can find more detailed guides at coinmaximus.com.