Cryptocurrency regulation has changed a lot since Bitcoin was first created in 2009. The first cryptocurrency exchange — the now-defunct launched in 2010 BitcoinMarket.com — launched in 2010, followed by the now-infamous Mt. Gox trading platform.
Cryptocurrency trading has evolved from being largely unregulated to being highly regulated. This change is due to KYC and AML requirements that most major exchanges now have.
stricter regulatory requirements have resulted in a fragmented ecosystem where exchanges are only available in certain locations.
With so many cryptocurrency exchanges online, it can be hard to choose the right one. You’ll want to balance a variety of factors, such as reliability, security, history, fee structure, and supported cryptocurrencies.
Our guide lists the best cryptocurrency exchanges globally. If you live in the United States, the best cryptocurrency exchanges for you will be different than for people in other countries.
Why Are Some Crypto Exchanges Not Available in the United States?
The United States has very strict regulations on crypto exchanges, which can make it hard for US-based crypto traders to find a trading platform that meets their needs. Cryptocurrency exchanges that operate in the United States are subject to FinCEN regulation and various anti-money laundering programs and requirements enforced by the Commodity Futures Trading Commission (CFTC) as well as other rules and regulations from various government agencies.
New York State classifies cryptocurrency exchanges as money transmission services. This requires exchanges that operate in the region to obtain specific licensing. Many crypto exchanges that allow users to transact in assets that could be defined as securities under US federal securities laws must also ensure they are compliant with various SEC requirements.
Some major crypto exchanges do not allow US-based traders to trade or register, or US-specific exchanges must be used. An example is Binance, which operates a dedicated exchange for US-based users.
The process of finding out which US exchange offers the best security, service and fees can be complicated and take up a lot of time. What are the 5 best cryptocurrency exchanges for US-based crypto traders and investors?
What To Consider When Choosing a US Crypto Exchange
Some factors you may want to consider when choosing a cryptocurrency exchange are: -How much identification is required to sign up? -What are the trade limits? -What currencies are supported? -What are the trading fees?
When choosing a crypto exchange to use if you are based in the United States, there are a few extra requirements that you will need to keep in mind. When you are looking for a cryptocurrency exchange it is important to check how the exchange handles fees, security and how you can deposit or withdraw funds. Another important thing to check is if the exchange is legally allowed to operate where you live.
When assessing a US-compliant crypto exchange, it’s important to assess the following factors:
Regulatory Compliance
. If you want to trade cryptocurrency within the United States, you have to use an exchange that complies with US cryptocurrency regulation.
ID Requirements
Many cryptocurrency exchanges in the US will require more identification documentation than similar exchanges in other countries, such as a proof of address.
Fiat Currency Support
Some crypto exchanges only offer support for digital currencies, which can minimize the amount of personal data required to create an account. If you want to exchange cryptocurrency for US dollars, it is important to make sure that the exchange you are using offers US dollar support.
Trade Limits
Some crypto exchanges in the United States have limits on how much cryptocurrency you can buy or trade in one day.
Trading Pairs
It’s advisable to check that an exchange supports the cryptocurrency you want to trade before signing up, if you’re looking to trade a particular one. US-based exchanges don’t support as many different cryptocurrencies as international exchanges.
Hacks and Security
Cryptocurrency exchanges and traders are often the target of hackers. Make sure the exchange you pick has a good reputation for being secure, with features like two-factor authentication to keep your account safe.
The Best 25 Cryptocurrency Exchanges
1. Coinbase
Founded in 2012, Coinbase was the first cryptocurrency exchange to list on Nasdaq in 2021. The company has a user-friendly interface and a variety of educational resources that are easy to understand for beginners who want to start trading cryptocurrency.
This is not a direct quote, but Coinbase has a very large customer base consisting of over 13,000 institutions located in more than 100 countries. These customers trust Coinbase for its easy and secure method of investing and saving digital currencies. Coinbase protects user’s cryptocurrencies by either keeping it offline or in a storage solution that is insured by the FDIC for up to $250,000 worth of coins per customer.
2. Binance.US
Binance.US is a cryptocurrency trading platform created by the team behind Binance that is available to traders based in the United States. The only difference is that it is designed to meet US compliance regulations.
The exchange offers a lot of digital assets that can be traded, however it doesn’t offer margin or futures trades like some other exchanges. Binance.US will only offer spot transactions, unlike the global platform which offers more options like lending or margin buying.
3. Gemini
Gemini is an excellent cryptocurrency exchange for beginners and active traders. Their focus on security measures makes them one of the most trustworthy exchanges, with cold wallets for your funds in addition to educational resources appealing specifically to newbies, making it a great choice if you want to learn more about cryptocurrencies. This exchange is licensed as a trust company and is held to higher standards of audits than most others.
4. Kraken
Kraken is a digital currency exchange founded in 2013 that allows users to trade cryptocurrencies, including Bitcoin. If you’re an active trader, you can trade in over 50 cryptocurrencies at ultra-low fees. It also has advanced features like options, futures, and margins trading, as well as chain stacking, which gives holders a better chance at being rewarded bi-weekly.
5. BlockFi
BlockFi is a popular way to earn money through passive income. The card earns cryptocurrency for every purchase made.
The company’s main product is the BlockFi Interest Account (BIA), which allows customers to earn interest on their cryptocurrency. BlockFi allows you to borrow money against your cryptocurrency assets. If you pay part of your loan back early, you won’t be penalized and you can access your funds as soon as the next day.
6. Bisq
Bisq is an exchange that connects buyers and sellers without the need for a third party. It raised $150 million in an ICO, but the project was quickly hacked The DAO was a project that was launched in 2014 that raised $150 million in an ICO. The project was quickly hacked however.
Bisq is an exchange platform that is different from others because it is not web-based or centralized. This makes it very difficult for hackers to steal money from users because the information is only available to those involved in the transactions performed within the browser.
7. Crypto.com
Crypto.com is one of the world’s largest crypto exchanges and payment services providers. They have a mobile app that is a one-stop shop for anything crypto. The app supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, as well as their own products like Crypto Earn, a rewards program where users can earn points for making purchases online using CRO coins. The platform has more tradable assets and lower trading fees, but the interface is not as easy to use for those new to crypto trading.
8. Bitstamp
Bitstamp is a global crypto trading platform that enables you to trade between cryptocurrencies and traditional currencies. 2011年以来一直存在的，非常可靠的平台，由于其直观和简单的界面给予。 This platform has been around since 2011 and is very reliable, due to its intuitive and uncomplicated interface. This exchange provides high liquidity, quick deposits and withdrawals, and premium access to traders.
9. CEX.io
CEX.io is a cryptocurrency exchange that is compliant with US regulations. It recently obtained money transmitter licensing in nine states. The platform’s new licensing has allowed CEX.io to extend its services to states where money transmitter licensing is not required.
CEX.io is now available to US residents in 28 states.
10. eToro
eToro is a social trading and multi-asset platform designed for beginners who don’t have any technical know-how. It has a user-friendly interface and reliable resources and tools. If you want a more traditional approach to trading, its investment strategies are still powered by AI. The company uses both traditional algorithms and machine learning techniques to minimize the need for human intervention in financial transactions.
11. Bittrex Global
The Bittrex Global trading engine is an innovative system that lists various cryptocurrencies, from the popular Bitcoin and Ethereum, to the altcoins Komodo and Binance Coin. Many investors who trade frequently and need to execute trades quickly find this site appealing because of its low fees and quick trade execution.
Bittrex’s interface stands out as refreshing, clean, and intuitive. This trading software quickly and easily executes trades with few or no delays.
12. bitFlyer
bitFlyer is a Japanese cryptocurrency exchange that allows users to buy and sell Bitcoin. The company was founded in 2014. Binance is a very popular cryptocurrency exchange with very competitive fees. This exchange is perfect for people who want to trade a small amount of cryptocurrencies or a limited number of coins with low fees.
The interface is designed to be user-friendly for beginners, with features such as margin trading and stop-loss orders also available to experienced traders. The fees are based on the smallest possible transaction, which makes it economical for traders who make multiple transactions.
13. FTX.US
FTX.US is the crypto exchange platform that is specifically designed for US-based traders. The US government has placed restrictions on transactions on the FTX.COM platform, so US-based traders cannot use that platform. The platform is ideal for experienced traders as it offers products that require an understanding of both market trends and technical analysis for success.
14. Webull
Webull is a company that offers free trades of stocks and crypto trading with at least 15 supported coins. You don’t have to worry about commission fees when trading because they aren’t regulated. The company offers 20 different cryptocurrencies that can be watched and tracked.
15. Changelly
If you want to buy cryptocurrencies quickly and easily with a credit or debit card, then Changelly is the best option for you. The platform has been operational since 2015 and provides safe and reliable trading with low rates. It also provides protection from exposure to user identity theft during transactions.
Key Takeaways
In the United States, the cryptocurrency regulation ecosystem is constantly changing, which has resulted in benefits for US traders that are not available in other countries, such as FDIC insurance for USD deposits. The only downside is that US traders must go through additional identity verification requirements.
It’s important to work with an exchange that is compliant with regulations in your state when choosing the best cryptocurrency exchange for US customers.
Cryptocurrency Tax Software
The IRS is taking cryptocurrency tax compliance seriously, and most major US-based cryptocurrency exchanges are sending 1099’s to the IRS to ensure that all their US-based crypto traders are meeting their tax reporting obligations. It’s important for US-based crypto traders and investors to keep a detailed log of all their crypto transactions, as every trade could be a taxable event.
CoinLedger is the best cryptocurrency tax software platform because it makes it easy to import your entire trading history from exchanges with simple integration.
CoinLedger integrates directly with all major exchanges in order to generate the necessary tax forms from your crypto investing activity. This reduces administrative friction and ensures that crypto tax reporting is performed accurately.
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