Best USA Crypto Exchanges April 2024 (Expert Reviewed) (2024)

Our crypto tax experts have thoroughly researched and evaluated the best crypto exchanges available in the US for 2024, including notable platforms like BYDFi, Coinbase, Crypto.com, and Gemini. Our curated list, complete with in-depth reviews, aims to guide you in selecting the most suitable exchange for your needs, whether you're seeking the best exchange for staking, low fees, overall performance, mobile accessibility, or security.

As the crypto landscape continues to evolve, it is essential to stay informed about the safest options and understand the risks involved in trading and staking cryptocurrencies.

Gemini distinguishes itself as the safest crypto exchange through an unwavering commitment to security and adherence to regulatory standards. Operating from New York, this exchange ensures the safety of user funds through hot wallet insurance in the event of a security breach.

To bolster account security, Gemini strongly encourages the utilization of two-factor authentication and grants users the ability to review and authorize devices accessing their trading accounts.

Notably, Gemini holds a SOC 2 certification, indicating that external auditors have validated the effectiveness of the company's security and compliance frameworks. Choosing to pay Gemini’s slightly elevated fees may be a reasonable trade-off, given the platform’s unparalleled security.

The United States imposes rigorous regulatory measures on crypto exchanges, creating challenges for American traders in identifying suitable platforms for their trading needs.

In the U.S., cryptocurrency exchanges fall under the regulatory purview of the Commodity Futures Trading Commission (CFTC). The CFTC enforces anti-money laundering programs, FinCEN regulations, and other mandates issued by various government agencies.

Specifically, cryptocurrency exchanges operating in New York State are categorized as money transmission services, compelling them to obtain specific licenses. Additionally, exchanges facilitating transactions involving crypto assets classified as securities under U.S. federal securities laws must adhere to various requirements set forth by the Securities and Exchange Commission (SEC) to ensure compliance.

Robinhood offers no-fee crypto trades but isn’t considered a comprehensive crypto platform. Among the top crypto exchanges, BYDFi sets the bar for minimal fees across various aspects, including withdrawals, trading, funding, deposits, and management.

Employing a "maker-taker" fee model, BYDFi ensures that makers (those contributing liquidity through limit orders) benefit from reduced fees in contrast to takers engaging in market orders.

BYDFi Fee Structure

• Taker fee = 0.06%

• Maker fee = 0.02%

• Withdrawal fee = Subject to blockchain specifications

• Deposit fee = No charge

• Management fee = No charge

Coinbase stands out as the best crypto exchange for beginners because of its extensive selection of supported cryptocurrencies, fortified security protocols, and sophisticated trading tools, all seamlessly integrated into a user-friendly interface tailored to accommodate both newcomers and advanced traders.

Having emerged in 2012 to simplify Bitcoin transactions, Coinbase has since evolved into a decentralized exchange boasting a valuation exceeding $13 billion, accessible in over 100 countries. Renowned for its intuitive design, robust security measures, and advanced trading capabilities, Coinbase holds a special appeal to those just starting out in crypto.

Choosing the right crypto exchange involves considering several standard factors, including the required identification documentation, trade limits, currency support, and trading fees.

However, when selecting a crypto exchange based in the United States, additional considerations come into play. Beyond examining fee structures, security measures, and deposit/withdrawal methods, it's crucial to ensure that the exchange is legally permitted to operate in your jurisdiction.

When evaluating a U.S.-compliant crypto exchange, focus on the following factors:

1. Regulatory Compliance: Ensure that the exchange complies with U.S. regulations to avoid potential future issues, as exemplified by the 2019 case where Binance.com investors lost access to their cryptocurrency.

2. ID Requirements: Many U.S.-accessible cryptocurrency exchanges may request more identification documentation, such as proof of address, compared to their international counterparts.

3. Trade Limits: Some U.S.-available crypto exchanges impose restrictions on the amount of cryptocurrency that can be bought or traded within a single day.

4. Trading Pairs: Check if the exchange supports the specific crypto asset you intend to trade before signing up. Certain U.S.-based exchanges, like Gemini, may not offer as many cryptocurrencies as major international platforms.

5. Hacks and Security: Given the frequent targeting of cryptocurrency exchanges and traders by hackers, prioritize exchanges with a strong security track record. Look for security features like two-factor authentication to enhance protection.

Briefly, if you’re looking to begin in crypto, Coinbase is a solid option. More advanced traders might consider Gemini for its extreme commitment to security or Binance.US for staking. BYDFi can be a great option for active traders because of its comparatively low fees.

Here are answers to frequently asked questions about what is the best crypto exchange and the best exchange for crypto.

What is a crypto exchange?

Crypto exchanges function like stock exchanges, facilitating the buying and selling of digital currencies like Bitcoin, Ethereum, and Tether. Operating through digital marketplaces such as mobile apps or desktop interfaces resembling e-brokerages, these platforms offer an array of trading and investing tools.

What are the different types of crypto exchanges?

There are primarily two types of crypto exchanges: Centralized Exchanges (CEXes) and Decentralized Exchanges (DEXes).

• Centralized Exchanges (CEX) function much like traditional stock exchanges and brokerages. They are regulated by a single authority that oversees all transactions and user accounts. CEXs offer high liquidity and faster transactions, but they store user data on centralized servers, making them susceptible to hacking and manipulation of trading volume.

• Decentralized Exchanges (DEX) operate on distributed ledger infrastructure and allow trading without any central authority. Users have full control over their digital assets and keys, offering enhanced security and privacy. DEXs bypass KYC to grant users more privacy but often suffer from lower liquidity compared to CEXs.

What is the difference between a crypto exchange and a crypto wallet?

Crypto wallets act as intermediaries connecting your holdings with the blockchain. They facilitate tasks like sending, receiving, and storing cryptocurrencies.

Crypto exchanges function as marketplaces where users engage in buying, selling, and trading crypto assets. While some exchanges offer wallet services, more experienced users tend to opt for wallets to maintain self-custody of their private keys.

Are crypto exchanges safe?

As seen with the FTX debacle in 2022, crypto exchanges are subject to collapse, so there is always risk involved in holding your crypto on an exchange. Centralized exchanges are also targets for crypto hackers, as they hold billions in crypto in a centralized way.

Before investing in crypto, it’s important to understand the risks involved and to select an exchange you trust. For peace of mind and heightened security, consider self-custody of your crypto with a hardware wallet.

How is trading crypto different from trading stocks?

Stocks signify ownership in a company, and their value typically corresponds to a given company's performance. Cryptocurrencies are digital assets, and their value is primarily influenced by factors like demand, supply, and utility. Cryptocurrencies are notably more volatile and generally entail greater risk (and corresponding potential for returns) compared to stocks.

What is the best exchange for cryptocurrency?

Choosing the best cryptocurrency exchange depends on your specific needs and preferences. Coinbase can be an excellent choice for beginners due to its extensive range of supported cryptocurrencies, robust security measures, and user-friendly interface. Gemini can be a solid pick for those who prioritize security with its unwavering commitment to safety and adherence to regulatory standards. If staking is a key consideration, Binance.US offers a solid platform for users interested in earning rewards.

How do you make $100 a day on Binance?

Earning $100 a day on Binance involves a combination of strategic trading and market analysis. It's essential to stay informed about cryptocurrency trends, market conditions, and potential opportunities. Consider exploring Binance's staking options, as they provide a way to earn passive income through holding specific cryptocurrencies. However, it's crucial to approach trading cautiously, set realistic goals, and be aware of the associated risks.

What is the safest cryptocurrency in the world?

While all cryptocurrencies carry some level of risk, Bitcoin is often regarded as one of the safest options. As the pioneer and most widely adopted cryptocurrency, Bitcoin benefits from a robust network, a decentralized nature, and a notable track record of security. Its widespread recognition, comparably massive market cap, and widespread acceptance contribute to its relative stability in the volatile cryptocurrency market.