Wondering which cryptocurrency exchange is best for you? In this guide, we’ll break down the best cryptocurrency exchanges — based on factors like user experience, fees, and customer support!
Quick look: The best cryptocurrency exchanges
Coinbase: Best for new traders
Robinhood: Best for stocks and cryptocurrency
Gemini: Best for availability in all 50 states
Kraken: Best for advanced traders
Crypto.com: Best for ease of use and crypto debit cards
Uphold: Best for diverse investments
CashApp: Best for mobile Bitcoin investing
Why you can trust CoinLedger’s crypto exchange rankings
As one of the top crypto tax software and portfolio tracker providers in the space, our team has extensive knowledge of the hundreds of cryptocurrency exchanges on the market. We’ve compiled this list based on feedback from our customer base of 400,000+ as well as the unique features that each exchange provides.
1. Coinbase: Best exchange for new crypto traders
Coinbase is one of the world’s most popular cryptocurrency exchanges and is well-known for its user-friendly interfaceinterfact. Unlike other exchanges, Coinbase has never faced a hack in its entire history. The platform has great features for new investors — including simple Learn modules that allow users to earn cryptocurrency for free!
Coinbase has faced criticism for high fees on certain transactions (such as those under $200). In addition, customer support is limited for most users (however, Coinbase One promises priority customer support for users who pay $30 a month).
Pros:
- Buy, sell, and trade more than 250 cryptocurrencies
- Earn crypto for free with Coinbase Learn
- Simple and advanced trading options available!
Cons:
- High fees on certain transactions
- Limited customer support
Learn more about Coinbase here.
2. Robinhood: Best exchange for stocks and cryptocurrency
Robinhood isn’t just a stock exchange — the platform also supports cryptocurrencies like Bitcoin and Ethereum. The Robinhood mobile app is incredibly easy-to-use — allowing investors to buy, sell, and transfer cryptocurrencies.
Still, it’s important to remember that cryptocurrency is not Robinhood’s main focus — at this time, the platform supports a limited number of cryptocurrencies. In addition, the platform has faced criticism for a lack of customer support.
Pros:
- Supports cryptocurrency and stock investing!
- Easy-to-use mobile app.
- No trading fees for crypto!
Cons:
- Supports less than 20 cryptocurrencies
- Limited customer support
- Limited cryptocurrency features (ex. no support for staking)
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3. Gemini: Best exchange for security
Gemini was founded in 2014 by Cameron and Tyler Winklevoss. The platform is famous for focusing on regulatory compliance — Gemini is one of the few exchanges available in all 50 states!
Gemini is designed for cryptocurrency investors of all experience levels — the platform has a basic version for beginner investors and an ActiveTrader platform designed for more advanced traders.
Pros:
- Available in all 50 states
- Assets backed by digital asset insurance
- Easy-to-use mobile app
- Supports more than 100 cryptocurrencies
Cons:
- Limited cryptocurrency selection compared to other exchanges
- Limited customer support
- Slightly higher fees than other exchanges
4. Kraken: Best exchange for advanced traders and low fees
Originally founded in 2011 in San Francisco, Kraken is one of the oldest cryptocurrency exchanges on the market. Today, Kraken is one of the world’s largest exchanges. Kraken offers unique features — such as margin and derivative trading and 24/7 customer support!
Pros:
- Low fees on Kraken Pro (as low as 0.16%)
- 24/7 customer support
- Supports 150+ cryptocurrencies
- Margin and derivative trading available
Cons:
- UI not friendly for new investors
- Can take up to 5 days for fiat deposits
- Higher fees on standard Kraken platform
5. Crypto.com: Best exchange for ease of use and credit card rewards
Crypto.com is an exchange that’s focused on simplifying the experience of buying and selling cryptocurrencies. The company has focused on building an intuitive mobile application — designed to make it easy to buy and sell cryptocurrencies on-the-go!
In addition, Crypto.com is well-known for its generous crypto credit card rewards. If you stake CRO (Crypto.com’s cryptocurrency) while using your card, you can earn rewards up to 5%.
Pros:
- High credit card rewards for CRO stakers
- Low fees for CRO stakers
- Up to 250+ cryptocurrencies available
Cons:
- Fees up to 4% for buying cryptocurrency with debit/credit cards
- Higher fees for users who don’t hold CRO
- Limited customer support
6. Uphold: Best exchange for diverse investments
Uphold (formerly known as Bitreserve) was founded in 2013. It’s unique on this list for being the only exchange to offer the ability to invest in assets like precious metals and carbon credits!
While Uphold does not charge trading, deposit, and withdrawal fees, the exchange does charge a ‘spread’ on trades based on current market conditions.
Pros:
- Supports cryptocurrencies and precious metals
- Over 250 cryptocurrencies available
- Crypto debit card available with rewards up to 2%
Cons:
- Poorly-rated mobile app
- Highly variable spread
- Users have filed a class action lawsuit against Uphold over security concerns
7. CashApp: Best for mobile Bitcoin investing
CashApp is well-known for its mobile payments application — however, CashApp is also the easiest way to buy Bitcoin on your phone! CashApp allows you to buy, sell, and transfer BTC in just a few clicks. CashApp’s user-friendly mobile app makes Bitcoin transactions simple and easy.
Pros:
- Buy and sell Bitcoin with just a click.
- Easy-to-use mobile app.
Cons:
- CashApp only supports Bitcoin.
- Relatively high transaction fees (around 1.75%)
What is the best crypto exchange?
Choosing the right cryptocurrency exchange for your needs depends entirely on your personal requirements. If you’re a professional trader and require robust trade interface functionality, Kraken or Gemini can provide you with the tools you need. New crypto investors or casual investors, however, may benefit from the simple and streamlined trade interface offered by Coinbase or Uphold.
What is the difference between a centralized and decentralized exchange?
Centralized exchanges act as middleman to facilitate trades. Exchanges use ‘order book’ technology to match buyers and sellers and allow transactions to happen quickly and seamlessly.
In decentralized exchanges like Uniswap, users can place their own cryptocurrency in a liquidity pool to facilitate trades. For example, you can put your own ETH and Wrapped Bitcoin in a pool and earn transaction fees when users trade between these two cryptocurrencies.
Centralized exchanges often have friendlier user interfaces and stronger regulatory compliance than their decentralized counterparts. However, decentralized exchanges are not subject to KYC requirements.
If you’re interested in getting started with a decentralized exchange, check out our list of the top decentralized exchanges.
How do crypto exchange fees work?
Transaction fees
When you buy, sell, and/or trade cryptocurrency, you’ll pay transaction fees.
Certain platforms distinguish between maker and taker fees — meaning you’ll pay a different fee depending on how your transaction is characterized. ‘Makers’ add liquidity to an exchange by creating new orders, while ‘takers’ remove liquidity by completing existing orders. Typically, maker fees are lower than taker fees.
Withdrawal fees
If you withdraw your cryptocurrency from an exchange, you may be charged a withdrawal fee. Exchanges like Coinbase charge a 1% withdrawal fee for users.
Other fees
It’s possible that you may pay additional fees for other types of transactions — such as buying cryptocurrency on margin, paying for cryptocurrency with a credit/debit card, or using an exchange’s ‘Quick Buy’ feature.
What to consider when selecting a crypto exchange
Before signing up with a cryptocurrency exchange and getting started, there are a few important factors that must be considered. The best cryptocurrency exchange for your needs will vary depending on your geographic location, the amount of crypto you want to trade, and the way in which you want to trade.
All cryptocurrency exchanges are fundamentally similar with regards to funding and trading. Users of cryptocurrency exchanges create an account, complete identity verification, fund their account with fiat currency or cryptocurrency, then proceed to trade and withdraw.
The key points of difference to consider when assessing cryptocurrency exchanges are:
- Identification requirements: Reputable cryptocurrency exchanges are required to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. When creating an account, crypto exchange users must provide identity documentation such as photo ID or proof of address.
- Geographic limitations: Some exchanges are available only in certain countries. US-based crypto traders, for example, may not be able to access certain exchanges due to US cryptocurrency regulation. If you’re in the US and are looking for a comprehensive guide to the best crypto exchanges for US-based traders, see our United States-specific crypto exchange guide here.
- Trade limits: Some exchanges may set limits or create tiered account levels depending on identity verification.
- Trading fees: Crypto exchanges charge fees to make money. Some exchanges charge a flat percentage of all trades, while others offer a “maker/taker“ model that offers different fees depending on the type or trade orders users make.
- Fiat currency support: Some crypto exchanges don’t support fiat currency, such as USD, EUR, or GBP and deal only in cryptocurrency. If you want to exchange cryptocurrency for USD, for example, you’ll need an exchange that supports fiat currency.
- Deposit & withdrawal methods: Exchanges that support fiat currency will offer multiple options for deposit and withdrawal, such as credit card, bank transfers, or wire transfer.
- Trading pairs: If you want to trade a specific cryptocurrency, it’s important to check whether the exchange you are considering currently lists it.
- Hacks and security: Hacks occur frequently in the cryptocurrency ecosystem. It’s important to select an exchange with a strong security track record. Reliable exchanges offer security features such as two-factor authentication.
Do I need to report my crypto exchange activity on my taxes?
Major exchanges like Coinbase and Kraken report your cryptocurrency taxes to the IRS.
However, exchanges often have trouble providing accurate tax forms due to the transferable nature of cryptocurrency. If you transferred your crypto, it’s likely that your exchange won’t be able to accurately calculate your capital gains and losses.
We wrote about the crypto exchange tax reporting problem extensively in our blog post: The Crypto Exchange Tax Problem.
How crypto tax software can help
Cryptocurrency tax software platforms like CoinLedger can make it easier than ever to generate a crypto tax report. Just import your wallets and exchanges and let the platform calculate your gains, losses, and income!
More than 400,000 investors across the globe trust CoinLedger.
You can take your tax reports to your accountant or simply import them into your preferred tax filing software such as TurboTax or TaxAct.
Get started with CoinLedger today.
