Last updated on November 10th, 2022 at 04:13 pm
There are quite many cryptocurrency exchanges available out there, each of them offering unique features. The United States has remained one of the best players in the cryptocurrency industry with lots of users expressing interest daily.
Cryptocurrency exchanges provide you with a platform and the necessary tools required for you to get involved in the cryptocurrency space. Whether your purpose is to trade or to invest (buy and Hodl), there are exchanges available that suits your need.
Without proper research, you might find it difficult to settle for an exchange that will suit you. There are crypto exchanges that are beginner friendly and also generally user-friendly, while there are others that are not very beginner friendly but are also user-friendly.
Picking the right crypto exchange as a beginner that suits your purpose might be a difficult thing to do, especially since you are new in the crypto space. There are several things to pay attention to before picking one, and those things will be covered shortly in one of the sections below.
In case you are still not familiar with what a cryptocurrency exchange is, I will give a brief description below as well as a relevant link that directs you to my previous post where you can learn more.
What exactly are cryptocurrency exchanges?
Simply put, a cryptocurrency exchange is an online platform also known as a marketplace where you can trade cryptocurrencies. You can buy cryptos on exchanges through several methods such as a debit/credit card, direct bank transfers, wire transfers, Paypal, and also through P2P trades.
A crypto exchange typically serves as a middleman between buyers and sellers of cryptocurrencies on their platform. Exchanges also display live prices of cryptocurrencies available on their platforms.
Cryptocurrency exchanges also come with built-in wallets where you can save your digital assets, and also you can convert them to stablecoins and then withdraw them to an external wallet if you want to.
Before you can start using them, you will be required to first set up a cryptocurrency exchange account which can be done by following easy steps.
What to consider before choosing a cryptocurrency exchange in the United States
It is no news that several regulations are surrounding the use of crypto exchanges in various countries and the United States has several requirements. There are countries where cryptocurrency is legal, and there are others that have out rightly banned the use of cryptocurrencies, countries like China.
Ironically, many of these countries that have banned the use of cryptocurrencies are still some of the countries with the most cryptocurrency users. So, before you choose which one to settle for if you are in the United States, you have to pay attention to these things;
- Regulatory Compliance
- Trade Limits
- Supported Cryptocurrencies
- Fiat Currency Availability
- Identity Requirements
- Regulatory Compliance: Before you sign up to use an exchange platform, you should be sure that it complies with the cryptocurrency regulations set down by the United States.
- Trade Limits: Trade limits are the amount of cryptocurrency that can be purchased or traded daily. Some of the exchanges available in the United States place limits on these trades.
- Supported Cryptocurrencies: If you have a specific cryptocurrency in mind to trade, it is best to check the cryptocurrency exchange and see if they have that coin listed. There are thousands of cryptocurrencies in the market, but a crypto exchange can only support a number of them. Some U.S-based cryptocurrency exchanges do not support quite several cryptocurrencies compared to major international exchanges.
- Security: Crypto exchanges have been major targets of hackers. There have been reports of several exchanges being victims of hacks in the past, and the perpetrators going away with millions of dollars worth of cryptocurrencies. It is important to check the security history of your intended exchange and make sure they have good measures in place before signing up with them.
- Fiat Currency Availability: Not all cryptocurrency exchange support fiat currencies, and this in turn can minimize the number of required data needed to create an account with them. If you plan to trade cryptocurrencies for US Dollars, then you should make sure to sign up with an exchange that supports USD fiats.
- Identity Requirements: Many United States-based cryptocurrency exchanges will require extra proof of identity when you are signing up. You need to know what each of them requires so you can be sure of what you are comfortable giving out.
What are the Best Cryptocurrency Exchanges available in the United States?
As we stated earlier, not all cryptocurrency exchanges are licensed to operate in the United States. There are lots of them however that are available, but we have put down a list of our top 5 cryptocurrency exchanges you can trade within the US.
Coinbase was founded in May 2012. It is an American publicly traded company that operates a cryptocurrency exchange. Coinbase is generally one of the most beginner-friendly cryptocurrency exchanges available. It was also one of the early exchanges created. Coinbase is the most popular, most successful, and arguably one of the best cryptocurrency exchanges in the United States.
Coinbase is a very good choice for both experienced traders and beginners. On the platform, users can swap between interfaces. You can either use the simplified version with trading controls, or you can switch to a more advanced feature on the Coinbase Pro.
The Coinbase platform is available on the web at https://www.coinbase.com/or on their mobile application available to both Android and iOS users. Coinbase has over 150 supported cryptocurrencies and offers more than 450 crypto-to-crypto trading pairs. It is also available in over 100 countries including the United States.
Their security record has been top-notch as they have never suffered from any known hack in the past. All funds held on Coinbase are insured by FDIC (Federal Deposit Insurance Commission).
Identification Requirements: Upon registration, United States users will be required to provide any valid Government issued ID, and also a selfie image.
Trading Limits: An unlimited amount of cryptocurrencies can be traded daily for US residents, but there is a withdrawal limit set at $25,000 daily.
USD Fiat Currency availability: Coinbase allows deposits in USD and several other fiat currencies.
Fees: Coinbase transaction fees are pretty decent. The taker fees vary between 0.05% and 0.25%, and the maker fees vary from 0% up to 0.15%.
Available Cryptocurrencies: Coinbase supports a host of cryptocurrencies including popular ones like Bitcoin, Ethereum, Dogecoin, Cardano, USD Coin (USDC), Litecoin, etc.
Read more on our in-depth Coinbase review.
Binance is one of the most popular and widely used cryptocurrency exchange platforms in the world. It is the biggest exchange by trade volume. In 2019, Binance launched the Binance.US platform to comply with United States regulations for crypto exchanges.
The UI of the Binance US platform and the global Binance exchange platform are similar, the major difference is the number of supported cryptocurrencies each has. The Binance US platform is available on the web version at https://www.binance.us/ and also on their mobile app which is available to both Android and iOS users.
The global Binance exchange platform supports more cryptocurrencies than the US version. The Binance US platform is an ideal exchange for pro traders and also investors who are seeking more professional trading tools.
Identity Requirements: Binance US also requires a government-issued ID along with a selfie image to verify your account upon signup.
Trading Limits: There is a progressive deposit and withdrawal limit scheme for United States residents. Initially, Binance US users can deposit and withdraw up to $5,000, which increases to $30,000 with subsequent transactions.
USD Fiat Currency availability: Deposits and withdrawal in USD is supported on the Binance US platform.
Fees: Higher volume traders benefit from the Binance US platform with lesser fees. Generally, Binance US offers spot trading fees of 0.1%, with 0.5% instant buy/sell fees.
Available Cryptocurrencies: As earlier stated, the number of cryptocurrencies available on the Binance US platform is limited, compared to that of the global exchange. Supported cryptocurrencies include Bitcoin, Ethereum, Binance Coin (BNB), Ripple, USDT, and others.
Read more on our in-depth Binance review.
Created in 2014, Gemini is a privately-owned cryptocurrency exchange that lets users buy, sell, and trade cryptocurrencies. The platform is fully compliant with New York state law and is also headquartered in New York City.
It works closely with regulators to make the platform more secure, this makes the Gemini verification process quite complicated. Gemini is the most secure option for US-based crypto traders because it is subject to the New York banking law.
Gemini is available on the web version at https://www.gemini.com/ and also on Android and iOS devices. USD deposits made to Gemini are also insured by FDIC which means that your funds are secured on the platform.
Identity Requirements: As I said earlier, Gemini’s verification process is quite complicated compared to others. They are strict with their ID verification requirements. In addition to a government-issued photo ID, Gemini also requires an address verification with a utility bill that is not more than 90 days old, and also a selfie image.
Trading Limits: There is no strict trading limit imposed on the Gemini platform, however, there is a restriction on the amount of cryptocurrency that can be purchased with a debit/credit card daily. The amount is restricted to $500/per day. Meanwhile, there are no restrictions on other deposit methods like a wire transfer.
USD Fiat Currency availability: Just like Coinbase and Binance US, Gemini supports USD along with others like HKD, CAD, and AUD.
Fees: Gemini marker and taker fee structure begins at 0.25%.
Available Cryptocurrencies: Gemini supports lots of popular cryptocurrencies which include Bitcoin, Ethereum, Litecoin, DAI, Bitcoin Cash, and others.
Kraken was founded on July 2011. It is a United States–based cryptocurrency exchange and bank. It is also one of the longest and oldest cryptocurrency exchanges to operate in the United States.
Kraken is not entirely beginner-friendly, it offers services primarily for experienced traders. Users can access the platform at https://kraken.com/ and are also available on their mobile apps for Android and iOS users.
Kraken is available in all Cities in the United States except Washington State, and New York.
Identity Requirements: For US resident traders, Kraken will require a government-issued ID and also your address for verification.
Trading Limits: Your verification level on your Kraken account determines your trade and withdrawal limit. The daily limit for cryptocurrency withdrawals starts at $5,000 and goes up to $10 million depending on your verification status and also trading volume.
USD Fiat Currency availability: Verified users on Kraken can have access to USD deposits and withdrawals along with other fiats like EUR, CAD, AUD, GBP, CHF, and JPY.
Fees: Traders with less than $10,000/month trading volume on Kraken usually have trading fees that range from 0.14% and 0.26%.
Available Cryptocurrencies: Kraken supports a wide range of cryptocurrency assets including popular ones like Bitcoin, Ethereum, and Ripple, and then other smaller ones like Cardano, Chainlink, Filecoin, and others.
Founded in June 2016, Crypto.com is a cryptocurrency exchange that is based in Singapore. It has over 50 million customers worldwide. Crypto.com provides a professional cryptocurrency trading environment that can be easily assessed from anywhere.
It is safe and uses industry-standard security measures for U.S.-based residents. Crypto.com is a beginner-friendly platform that allows users to easily exchange and spend crypto.
You can access Crypto.com on the web at https://crypto.com and also on mobile devices with Android and iOS operating systems. It prides itself as the world’s fastest-growing crypto app. It is available in 49 states across the United States.
Identity Requirements: Along with your full legal name, you will be required to upload a government-issued ID along with a selfie for verification.
Trading Limits: For the fiat wallet withdrawal, there is a daily limit of $100,000 or 5 times, and a monthly limit of $500,000 or 30 times. The minimum withdrawal is $100.
USD Fiat Currency availability: Crypto.com supports USD fiat deposits and withdrawals.
Fees: Crypto.com has a 0.04% to 0.4% maker fees, and 0.1% to 0.4% taker fees. Also, there is a 2.99% for credit card purchases.
Available Cryptocurrencies: Crypto.com has over 250 cryptocurrencies listed on its platform. Listed cryptocurrencies include Bitcoin, Ethereum, Litecoin, Uniswap, Dogecoin, Polkadot, and others.
The cryptocurrency regulations in the United States have made it possible for United States resident traders to be provided with certain benefits and securities that are not available in other countries.
When deciding on the best cryptocurrency exchanges for customers in the United States, it is important to choose an exchange that is compliant with the laid down regulations in your state.
Disclaimer: This is not financial advice. The views and opinions expressed in this article are solely of the author of the post. You are advised to do your due diligence and conduct your own research before investing in any digital asset.