Are you pondering which cryptocurrency exchange to choose in the year 2023?
In light of recent events, such as the collapses of exchanges like FTX and Celsius, the importance of selecting exchanges that prioritize security and safeguarding customer interests cannot be overstated.
Our team of experts has conducted a thorough analysis of the available options in the crypto market, with a focus on factors such as security, affordability, and customer protection. Below, you will discover the top five exchanges that cater to these essential aspects:
Coinbase – The Overall Best
Coinbase stands as the preeminent and most successful cryptocurrency exchange based in the United States. Offering an exceptionally user-friendly interface and trading experience, Coinbase has earned its popularity.
Crucially, Coinbase boasts an unblemished track record when it comes to major cryptocurrency hacks, underlining its commitment to security. Beyond merely protecting user funds, Coinbase actively identifies and prevents users from sending cryptocurrency to known scam addresses, adding an extra layer of security for novice traders. Additionally, fiat assets held on Coinbase benefit from FDIC insurance, covering deposits by U.S. residents up to $250,000.
Identification Requirements:
For U.S. residents, verifying an account on Coinbase necessitates providing a valid government-issued ID and a selfie image.
Trading Fees:
While Coinbase may not offer the most competitive fee structure in the market today, with taker fees ranging between 0.05% and 0.60%, and maker fees from 0% to 0.40%, these fees are offset by the high level of security it provides.
Supported Cryptocurrencies:
Coinbase supports an extensive selection of over 200 cryptocurrencies, including BTC, ETH, DASH, EOS, LINK, XRP, and more. It is important to note that Tether (USDT) is not supported; instead, U.S. Coinbase users are provided with USDC as a USD-pegged stablecoin.
Binance.US – Ideal for Experienced Traders
Binance.US, a dedicated U.S.-only version of the globally popular Binance exchange, offers a trading platform designed to comply with U.S. regulatory requirements. Like Coinbase, it is headquartered in San Francisco.
Despite its relatively limited selection of crypto assets compared to the global Binance platform, Binance.US retains the familiar Binance user interface, making it well-suited for professional traders and investors looking for advanced trading tools. It is important to note that Binance.US is not available to traders based in New York.
Identification Requirements:
Similar to Coinbase, Binance.US requires government-issued ID and a selfie image for account verification.
Trading Fees:
Binance.US applies a 0.5% fee for buy/sell transactions.
Supported Cryptocurrencies:
Binance.US supports over 100 cryptocurrencies, including BTC, ETH, and SOL.
Crypto.com – Best for Crypto Rewards
Founded in Hong Kong in 2016, Crypto.com extends its services to U.S.-based users through its mobile app. However, it is not available in New York.
Key Features:
- Wide Range of Cryptocurrencies:com offers access to over 250 different cryptocurrencies and features an NFT marketplace.
- Interest Rewards: Users can earn interest rewards by holding cryptocurrencies like Bitcoin, Ethereum, and USDC on the platform.
- Cashback Rewards:com provides debit cards with cashback rewards of up to 5%, based on the amount of CRO, Crypto.com’s cryptocurrency, staked.
- Varying Fee Structure: Trading fees on Crypto.com range from 0.036% to 0.40%, depending on your 30-day trading volume.
Gemini – The Security Specialist
Gemini is among the few U.S.-based exchanges fully compliant with New York state law. Founded by the Winklevoss brothers in 2014, it is a highly regulated platform that collaborates closely with regulators to ensure compliance.
Key Features:
- Security: All USD deposits in Gemini are FDIC-insured, making it a secure choice for large-scale and institutional traders. It is currently the custodian of over 1% of the world’s total Bitcoin volume.
- ID Requirements: Gemini enforces strict ID verification, including government-issued photo ID, address verification with a recent utility bill, and a selfie image.
- Trading Fees: Fees for makers range from 0.00% to 0.25%, and fees for takers range from 0.03% to 0.35%, decreasing with higher trading volumes.
- Supported Cryptocurrencies: Gemini offers support for more than 90 cryptocurrencies, including BTC, ETH, and SOL.
Kraken – Low Trading Fees
Kraken, one of the longest-running cryptocurrency exchanges in the United States, specializes in providing services to experienced crypto traders. It offers a straightforward approach to cryptocurrency trading and features services such as margin trading.
Key Features:
- Accessibility: Kraken can be accessed via the web and the official Kraken mobile app, available in most U.S. states, except Washington and New York.
- ID Requirements: For U.S.-based traders, Kraken requires government-issued ID and address verification.
- Trading Fees: Kraken’s trading fees range from 0.16% to 0.26% for traders with less than $50,000 in monthly trade volume.
- Supported Cryptocurrencies: Kraken supports over 185 cryptocurrencies, including BTC, ETH, and ADA.
Choosing the Right U.S. Crypto Exchange
Selecting a suitable crypto exchange in the United States involves considering several factors, including regulatory compliance, ID requirements, trade limits, available trading pairs, and security measures.
Due to the evolving regulatory landscape, it is crucial to choose an exchange that complies with U.S. regulations specific to your state. Furthermore, maintaining accurate records of capital gains, losses, and income is essential for tax reporting compliance, given the IRS’s serious stance on cryptocurrency tax obligations.
In summary, the U.S. crypto exchange market offers benefits and security not available in other countries, such as FDIC insurance for USD deposits. Therefore, when selecting the best cryptocurrency exchange for U.S. customers, prioritize compliance with cryptocurrency regulations in your state and consider tax reporting obligations.
For assistance with crypto tax compliance, CoinLedger stands as the leading cryptocurrency tax software platform, streamlining the process of collecting and reporting crypto trading information. It offers a convenient solution for calculating crypto taxes accurately and efficiently.