Opening an account with a cryptocurrency exchange is a great place to start if you want to purchase or trade cryptocurrencies.
Crypto exchanges work similarly to online brokerage platforms, giving you the tools you need to purchase and sell digital currencies and tokens. When selecting a cryptocurrency exchange, consider supported assets, fees, payment methods, and security. We took these aspects into account when compiling this list of the best exchanges to assist you in finding the right one.
Before listing the best crypto exchanges, let’s first look at what a cryptocurrency exchange is.
What is a Cryptocurrency Exchange?
A cryptocurrency exchange is a website where you can purchase and sell cryptocurrency. You may use exchanges to trade one cryptocurrency for another or buy them using fiat money such as USD.
Exchanges display the current market value of the cryptocurrencies they provide. There are two types of exchanges:
- Centralized Exchanges
- Decentralized Exchanges
Centralized Exchanges
The most common type of exchange platform is a centralized exchange, which employs a third party to perform transactions. Users rely on this third party to provide security, monitoring, and assistance in finding trading partners. Some investors believe this concept is misleading because cryptocurrencies are decentralized and do not require a central authority.
Decentralized Exchanges
Decentralized cryptocurrency exchanges, unlike centralized ones, do not require a broker. Instead, they rely on blockchain technology or distributed ledgers. A third party and transactions do not hold the currency are done Peer-to-Peer (P2P) via smart contracts.
9 Best Cryptocurrency Exchanges in 2022
KuCoin
KuCoin is a new cryptocurrency exchange that has quickly gained a loyal fan base because of its user-friendly interface and high level of security. The exchange is well-known for having a huge number of different cryptocurrency pairs, allowing customers to buy a wide range of cryptocurrencies.
With offices in Hong Kong, Singapore, and Seychelles, KuCoin is positioned as a global company. It’s known in the cryptocurrency community as “The People’s Exchange” and has an excellent reputation. It has apps available on Android and iOS app stores and an internal risk department investigating any potential shady business on the site. It can also trade on all major desktop operating systems (MAC, Windows, and Linux).
Fees
In comparison to other cryptocurrency exchanges, KuCoin’s fees are extremely low. This is mainly due to the fact that KuCoin does not allow you to buy cryptocurrency using fiat money, which is where other exchanges charge the most fees.
While all of the exchange’s markets charge a 0.1% trading fee, customers who own KuCoin Shares (KCS) can get a discount rate. For every 1,000 shares owned, users receive a 1% discount in fees. A maximum trading fee discount of 30% is available.
Security
KuCoin is recognized as one of the safest cryptocurrency exchanges due to its long-standing reputation and high volume of trades. Users can also use two-factor authentication on the site. In contrast to other rival exchanges, the site has never been hacked. It’s worth noting that because it is a crypto-only site, the security methods are slightly different than those used by sites that accept fiat money.
Customer service is generally very friendly, and you can easily address your problems with the appropriate personnel.
Features
The platform provides various features and initiatives that let it stand out from other similarly-sized exchanges on the market.
Regarding bonuses, the site regularly conducts trading competitions, allowing the top traders to earn even more. Many of these competitions offer rewards to the top 50 users in terms of trading volume for a certain digital asset. Another distinguishing feature is the enhanced security provided by the Arwen protocol. This platform makes use of technology similar to Bitcoin’s Lightning Network, which allows users to keep control of their funds rather than trusting them to the exchange.
| Number of cryptocurrencies | 300+ |
| Fees | 0.1% Spot Trading
0.5% Instant Buy/Sell |
| Pros | Lower fees
Simple to use A large variety of cryptocurrencies |
| Cons | Low trading volume |
eToro
eToro is one of the best cryptocurrency exchanges to use if you are based in the United States. This top-rated exchange provides over 70 cryptocurrencies, all of which are paired against the USD. At eToro, you have to pay the spread, starting at 0.75% for Bitcoin and 1% for altcoins.
There are no deposit fees if you fund your account in USD. This is the case for all supported payment methods, including PayPal, debit/credit cards, Neteller, ACH, bank transfers, and others. The minimum deposit amount on eToro is only $10. This is also the minimum trading amount so that you can invest in digital currencies for as little as $10.
In terms of security, eToro is a member of FINRA and is regulated by the SEC. CySEC, ASIC, and the FCA have all issued licenses to the broker. A free version of the eToro mobile app is also available. This will allow you to trade cryptocurrency while on the move. Thousands of stocks, ETFs, commodities, and forex are available on eToro.
| Number of cryptocurrencies | 70+ |
| Fees | Zero fees + Spread |
| Buying Bitcoin Fee | 0.75% |
| Minimum Deposit | $10 |
Binance
On Binance, you can trade crypto-crypto pairing like ETH/BTC for as little as 0.10% per slide. This implies that a $100 total stake would only cost you $0.10 in fees. You can find over 60+ supported best DeFi coins and all the top cryptocurrencies to invest in.
It’s worth noting that you will have to pay extra fees if you want to buy crypto using fiat money. Although ACH and bank wire transactions are free, you will have to pay a 0.5% buy commission. An additional 4.5% will be added to this fee if you want to deposit funds with Visa or MasterCard.
Another thing to keep in mind about Binance is that, unlike some other major exchanges, it is not regulated by the SEC. Binance is not licensed in any jurisdiction, putting the safety of your funds at risk. You can use the main website or the iOS/Android app to access your Binance account. Binance is one of the most popular cryptocurrency exchanges so that you can purchase Terra Luna, AAVE, and other new hot digital currencies with cheap transaction fees. It has an NFT marketplace where you can invest in the best NFTs.
| Number of cryptocurrencies | 600+ |
| Fees | 0.1% Maker/Taker
4.5% Instant Buy |
Coinbase
Although Coinbase is expensive in most areas, it is one of the U.S.’s best crypto exchanges for beginners.
Coinbase has over 70 million users, many of whom prefer a straightforward, burden-free investment platform. In fact, you can open an account in minutes and invest in cryptocurrencies with your debit/credit card right away. This means you can buy XRP, ETH, and other currencies in seconds. However, the biggest disadvantage is that, despite the ease with which you can get started, debit/credit card transactions are charged at a fee of 3.99%. The alternative option is to deposit funds by ACH and pay a smaller commission of 1.49% to complete the transaction.
Security
Coinbase is one of the most secure cryptocurrency exchanges available. Some of the most strict security methods include storing most of the client’s funds in cold storage, verifying all new customer’s identities, and requiring each account holder to set up 2FA. Furthermore, Coinbase has a fully functioning security staff that works around the clock to keep your account secure.
| Number of cryptocurrencies | 100+ |
| Fees | 1.49% – 3.99% |
Huobi Global
Huobi is one of the finest crypto exchanges to use if you want to combine capital gains with regular income. This is because, in addition to hundreds of crypto markets, the exchange also provides a crypto savings account, enabling you to earn interest on your unused funds. For example, holding USDT and Bitcoin can earn you up to 6.50% and 2.88% APY, respectively.
Huobi is a cryptocurrency exchange that accepts a wide variety of cryptocurrency tokens. You can purchase and sell digital tokens here for as little as 0.26% per slide, with lower rates available for larger trades. Huobi has a maker-taker price structure, which means individuals that provide trading liquidity to the exchange will profit from even lower commissions.
| Number of cryptocurrencies | 400+ |
| Fees | 0.26% |
| Minimum Deposit | $100 |
FTX
FTX is a cryptocurrency exchange, NFT market, and crypto derivatives broker all in one. More than 60 cryptocurrencies are available for spot trading on the exchange, making it a good fit for everything from popular cryptos like Bitcoin to stablecoins and DeFi coins.
One of the unique features of FTX is its cheap trading fees. When you produce liquidity on this exchange, you’ll pay 0.10% – and that’s before volume discounts, which might reduce maker fees to zero. Taker costs are similarly low, starting at 0.40% and down to 0.05% per trade.
| Number of cryptocurrencies | 60+ |
| Fees | 0.10% Maker Fees
0.05% – 0.40% Taker Fees |
Voyager
Voyager is a popular choice for investors because it was one of the first publicly listed exchanges. They are app-driven and provide a commission-free trading environment.
Voyager accepts the majority of major cryptocurrencies, offers excellent customer service and interaction, and offers reasonable interest rates on assets. If you establish a Voyager account and trade $100 in crypto, you’ll get $25 in BTC.
The Voyager provides a highly secure trading ecosystem as well as FDIC insurance for up to $250,000, ensuring that users’ funds are safe. The platform’s educational features include Node Blog and an up-to-date news feed.
| Number of cryptocurrencies | 50+ |
| Fees | No commissions |
Kraken
Kraken is one of the first cryptocurrency trading platforms, with a wide range of currencies and tokens to trade and invest in. they also allow you to trade on margin. It is, however, an exchange that is not as easy to use as other top platforms on this list.
Kraken is one of the few platforms on this list that lets you trade DOGE and other riskier tokens. Kraken appears to check all boxes for a reliable and safe cryptocurrency exchange. It has never been hacked and is based in the U.S. You can trade directly from fiat money to cryptocurrency. In addition, there are more than 50 cryptocurrencies available for trading.
| Number of cryptocurrencies | 50+ |
| Fees | 0% – 0.26% |
Crypto.com
Crypto.com is one of the most popular and rapidly expanding cryptocurrency exchanges. It’s based in Hong Kong, but it provides a lot of support to U.S. users.
Currently, you can choose from over 90 tokens and coins worldwide, as well as 50 tokens and coins in the U.S. In addition, their crypto savings accounts provide competitive rates. The one big disadvantage is that it is now only available as an app; there is no desktop platform.
For trading cryptocurrency, Crypto.com offers a complex maker/taker fee structure. The maker fee can range from 0.036% to 0.40%, and the taker fee can vary from 0.090% to 0.40%, depending on your 30-day trading volume. It’s also worth noting that each form of cryptocurrency has a different minimum and maximum fee.
| Number of cryptocurrencies | 150+ |
| Fees | 0.036% – 0.40% Maker Fees
0.090% – 0.40% Taker Fees |
Takeaways
- Cryptocurrency exchanges are similar to online brokerage platforms.
- You can buy and sell cryptocurrencies through a crypto exchange.
- Exchanges are divided into two types: Decentralized Exchanges and Centralized Exchanges.
- There are a few exchange platforms that dominate this year. The top three include KuCoin, eToro, and Binance.
- KuCoin is a new exchange that quickly gained popularity and is now considered one of the best.