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Best Crypto Exchanges of 2023.
In the United States, the main challenge with cryptocurrency lies in the varying regulations imposed by different states. These regulations often require individuals to utilize licensed exchanges, with certain states imposing restrictions on specific coins while allowing for the operation of Bitcoin ATMs. Best Crypto exchanges function similarly to online brokerage platforms, facilitating the buying and selling of digital currencies such as Bitcoin, Ethereum, and Dogecoin. In our evaluation of 28 cryptocurrency exchanges, we assessed key criteria such as security, offerings, availability, fees, financial options, features, and mobile capabilities. By taking these factors into account, we have compiled a list of the best cryptocurrency exchanges.
There are multiple avenues and platforms available for investing in cryptocurrencies. Our list encompasses various options, including crypto exchanges, platforms, online brokers offering crypto, as well as cash and payment apps that facilitate the buying and selling of Bitcoin, Ethereum, and other digital assets. We have taken into consideration the diverse range of services provided by these platforms in compiling our list.
How to buy cryptocurrency in the USA?
The 1794 Flowing Hair Dollar is a highly coveted coin known for its significant value. According to CoinTrackers.com, the estimated worth of a 1794 Flowing Hair Dollar in average condition ranges around $47,148.00. However, if the coin is in mint state condition, its value can increase substantially to approximately $825,098.00 or even higher.
Here are some additional details about the 1794 Flowing Hair Dollar:
- Year: The coin was minted in 1794.
- Mint Mark: The 1794 Flowing Hair Dollar does not have a mint mark.
- Type: It belongs to the Flowing Hair Dollar type.
- Price: The value of this coin can range from $47,148.00 to $825,098.00 or more, depending on its condition and other factors.
- Face Value: The face value of the 1794 Flowing Hair Dollar is $1.00, which is its denomination.
- Production: Approximately 2,000 of these coins were produced during their minting.
- Edge: The edge of the coin is reeded, featuring small ridges.
- Silver Content: The 1794 Flowing Hair Dollar is composed of 90% silver, containing 0.7735 ounces of silver.
- Melt Value: The silver content of the coin, equivalent to 0.7735 ounces, holds a melt value of around $18.29 based on the current silver market prices.
It’s important to note that coin values can fluctuate based on various factors, including the coin’s condition, rarity, historical significance, and market demand. To obtain the most accurate and up-to-date information regarding coin valuations, it is advisable to consult experts or reputable coin dealers.
To buy cryptocurrency in the USA, follow these three simple steps:
Step 1:
- Choose a cryptocurrency exchange
- Choose a licensed and reputable cryptocurrency exchange operating in your state.
- SoFi Invest Crypto is a recommended option.
- SoFi Invest Crypto has a minimum deposit requirement of $10.
- It supports the trading of 28 different cryptocurrencies.
- The platform provides transparent fees.
- SoFi Invest Crypto offers educational materials, making it suitable for beginners.
- Keep in mind that there is a 1.25% crypto fee.
- The selection of altcoins on SoFi Invest Crypto may be limited.
- Before proceeding, ensure that the chosen exchange is legal in the United States and holds the necessary licenses.
Step 2:
- Get a crypto wallet
- After finding a suitable cryptocurrency exchange in your home state, choose a compatible crypto wallet to store your digital assets.
- A crypto wallet, also known as a digital wallet or Web3 wallet, is where you store your cryptocurrencies and tokens.
- Your wallet serves as proof of ownership, as your owned digital assets are tied to your wallet’s public address.
- Selecting a digital wallet depends on your preferences and needs.
- Software wallets with browser extensions like MetaMask and WalletConnect are popular options for managing and storing assets.
- Software wallets are often free to use, widely accepted on marketplaces and crypto games, and suitable for blockchain application usage.
- Hardware wallets like Ledger plug into your computer and offer enhanced security since they are offline when not in use.
- Hardware wallets are a safer option for long-term cryptocurrency holding or cold storage.
- If you are new to crypto, a software wallet is a solid choice as they are typically free, easy to use, and can be accessed through your browser.
- Remember to choose a wallet that aligns with your usage, security requirements, and level of experience in the cryptocurrency space.
Step 3:
- Research crypto coins
- There are thousands of cryptocurrencies in circulation, with an estimated 19,000 currently available.
- Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) are well-known coins, but there are numerous other options to consider.
- Some other top market cap coins include Tether (USDT), USD Coin (USDC), BNB (BNB), XRP (XRP), Solana (SOL), Litecoin (LTC), Shiba Inu (SHIB), Cardano (ADA), Polygon (MATIC), and Binance USD (BUSD).
- Remember that profit is never guaranteed in the crypto market, even with well-known coins like Bitcoin.
- Consider the use cases of different coins. Some coins, like Cardano, are designed for specific purposes such as identity management and data collection simplification.
- Read the whitepaper of a coin. A whitepaper is an informational document issued by the coin or blockchain developers that explains the coin’s value, use cases, and workings. It can offer useful insights for making informed investment findings.
- Focus on education. Cryptocurrency is still a relatively new field, but there are reliable crypto news sources, whitepapers, and informative videos available to help you understand the concept before investing.
By considering these points and conducting thorough research, you can make more informed decisions when investing in cryptocurrencies.
Best Crypto Exchanges of 2023
Where do I buy crypto in the USA?
- Kraken: BEST FOR LOW FEES AND EXPERIENCED TRADERS
- eToro Cryptocurrency Trading: MULTI-ASSET INVESTMENT PLATFORM
- Coinbase: BEST FOR BEGINNERS
- SoFi Invest Crypto: DIVERSE RANGE OF CRYPTOCURRENCIES
- Crypto.com: BEST MOBILE APP
- Gemini: BEST FOR SECURITY
- BitMart Exchange: BEST FOR ALTCOINS
- Cash App: BEST FOR BITCOIN
Investing in cryptocurrencies, Decentralized Finance (DeFi), and participating in Initial Coin Offerings (ICOs) involve significant risks and speculative elements. The cryptocurrency markets are known for their high volatility, which can lead to substantial financial losses. It is strongly advised to seek guidance from a qualified financial professional before making any investment decisions in these areas. The information presented in this article should not be considered investment advice or a recommendation to invest in cryptocurrencies. It is important to note that the accuracy and timeliness of the information cannot be guaranteed. It is advisable to conduct thorough research and consult with a qualified financial professional before making any investment decisions.
1. Kraken (BEST FOR LOW FEES AND BEST FOR EXPERIENCED TRADERS)
Why We Chose It?
We selected Kraken as the best low-fee exchange for several reasons. Firstly, Kraken Pro, their professional-grade trading platform, is known for charging some of the lowest fees among crypto exchanges. This makes it an attractive option for cost-conscious users. Additionally, Kraken offers advanced order types and supports margin and futures trading, making it a preferred choice for experienced traders who require sophisticated trading features.
Pros
The advantages of choosing Kraken as a cryptocurrency exchange include:
- Kraken offers a wide variety of supported cryptocurrencies, giving users a broad selection of options for trading and investing in different digital assets.
- Low fees on Kraken Pro: Kraken Pro, the professional trading platform offered by Kraken, is known for its competitive and low fee structure. This can help users save on trading costs, especially for frequent traders.
- High liquidity: Kraken is recognized as a highly liquid exchange, meaning that there is a significant volume of trading activity happening on the platform. This can result in faster order execution and tighter bid-ask spreads, enhancing the overall trading experience.
These advantages make Kraken a compelling choice for individuals looking to access a wide selection of cryptocurrencies, minimize trading fees, and benefit from a liquid trading environment.
Cons
There are a few limitations to consider when using Kraken as a cryptocurrency exchange:
- Availability in the United States: Kraken is not available in all U.S. states. Some states may not have access to the Kraken platform due to regulatory restrictions or licensing requirements. It is important to verify whether Kraken operates in your specific state before attempting to use the platform.
- Limited account funding options: Kraken may have fewer options for depositing and withdrawing funds compared to other exchanges. Users may find a more limited selection of traditional banking methods or alternative payment options when it comes to funding their Kraken accounts. It is advisable to review the available funding options on Kraken’s platform to ensure they align with your preferences and requirements.
- These considerations should be taken into account when evaluating Kraken as a cryptocurrency exchange, particularly if available in your state, and account funding options are essential factors for your trading experience.
Overview
Kraken is a highly reputable cryptocurrency exchange that was established in 2011 and operates in most parts of the world. It offers a wide range of over 200 cryptocurrencies for investors to buy, sell, and store. The exchange is known for its low fees, especially on its professional trading platform called Kraken Pro.
Kraken Pro provides advanced trading features, including customizable chart analysis tools, detailed order book insights, and support for 13 different order types. It also offers margin trading and allows users to execute crypto derivatives trading strategies.
Overall, Kraken is a reputable and feature-rich cryptocurrency exchange that appeals to professional traders with its low fees and advanced trading capabilities. However, users should be aware of its limited funding options and ensure that wire transfers align with their preferences and needs.
2.eToro Cryptocurrency Trading (MULTI-ASSET INVESTMENT PLATFORM)
eToro is a popular choice for cryptocurrency trading due to its user-friendly platform, innovative social trading feature, and diverse range of cryptocurrencies. It offers advanced tools for market analysis and risk management. With a strong emphasis on security and regulatory compliance, eToro provides a reliable and trusted trading environment for cryptocurrency enthusiasts.
Pros
- eToro is a multi-asset exchange, offering trading opportunities for cryptocurrencies, stocks, and commodities.
- It provides social trading features, allowing users to interact with and learn from a community of traders.
- The platform offers a demo account option, enabling users to practice trading with virtual funds before engaging with real money.
Cons
- eToro offers fewer cryptocurrencies compared to some other exchanges, limiting the available options for traders.
- There is a $10 account minimum requirement to start trading on the platform.
- Fees on eToro vary depending on the specific asset being traded, which means that different assets may have different fee structures.
eToro is a well-established multi-asset investment platform that was founded in 2007. It stands out for its social trading feature, which enables users to copy the trades of popular investors. The exchange offers a variety of cryptocurrencies, including Polkadot (DOT) and Filecoin (FIL). Users can also utilize a demo account to practice trading strategies and familiarize themselves with the platform before engaging in real-money trades. eToro charges ’round-trip’ spreads for buying crypto assets, with the spread percentage varying depending on the specific asset, ranging from 0.75% to 2.90%.
3. Coinbase (BEST FOR BEGINNERS)
Coinbase is chosen as the best crypto exchange for beginners due to its wide range of supported cryptocurrencies, strong security measures, user-friendly interface, and advanced trading capabilities.
Pros
- Large selection of cryptocurrencies and trading pairs
- User-friendly and advanced trading platforms
- High liquidity
Cons
- Lack of high-quality customer service
- com is a custodial account, meaning users do not have direct control over their private keys.
While Coinbase provides convenience, it does come with higher trading fees ranging from 0% to 0.60%. Despite this, it compensates by offering a wide range of funding options and availability in over 100 countries. It is essential, however, to consider the negative feedback Coinbase has received in terms of customer support and occasional account closure issues. These aspects may impact the overall user experience and warrant careful consideration when choosing Coinbase as a cryptocurrency exchange.
4.SoFi Invest Crypto (DIVERSE RANGE OF CRYPTOCURRENCIES)
We choose SoFi Invest for cryptocurrency trading due to its diverse range of cryptocurrencies, no account minimum requirement, and free financial counseling services. The platform charges a reasonable 1.25% markup on crypto transactions and supports purchases ranging from $10 to $50,000. However, it has limitations on select coins and does not allow for transferring crypto to external wallets or accounts.
Pros
- $10 Bitcoin bonus for the first trade
- No account minimum requirement
- 20+ cryptocurrencies available for trading
- Convenient mobile app for managing investments on the go
Cons
- Inability to transfer cryptocurrencies out of the SoFi platform.
- The platform charges a 1.25% markup fee on crypto transactions.
SoFi Invest, a fintech company established in 2011, provides a range of investment options, including cryptocurrency. Their platform supports 28 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Litecoin (LTC), Solana (SOL), and Cardano (ADA). One of the advantages of using SoFi Invest is that they do not have an account minimum requirement, making it accessible to a wide range of investors. They also offer free financial counseling services to assist users with their investment decisions.
SoFi Invest provides a convenient and accessible platform for investing in cryptocurrencies, with a diverse selection of coins and no minimum account requirement. However, users should be aware of the 1.25% markup fee and the limitation on transferring crypto to external wallets or accounts.
5.Crypto.com (BEST MOBILE APP)
We selected Crypto.com as the top choice for a mobile crypto exchange app due to its comprehensive ecosystem for trading and investing in digital assets, all conveniently accessible through a smartphone.
Pros
- Supports 250+ cryptocurrencies, offering a wide range of options for investments.
- Provides diverse cryptocurrency products for users to engage in different aspects of the crypto market.
- Accessible through the Crypto.com mobile app, making it convenient for users to trade and invest from their smartphones.
- Enables exploration and investment in both established and emerging digital assets.
- Offers additional opportunities for users, including staking, lending, and earning rewards within the Crypto.com ecosystem.
Cons
- com has received criticism for its poor customer support.
- Users have reported difficulties in receiving timely and satisfactory assistance from the platform’s customer service.
- Issues related to account management, transaction disputes, and general inquiries may not be resolved promptly.
- Limited or delayed customer support can negatively impact the user experience and hinder problem resolution.
Crypto.com is a prominent global crypto exchange available in 90 countries, supporting over 250 cryptocurrencies. The platform offers an extensive digital asset ecosystem, including its blockchain, native token (CRO), crypto visa card, and yield-generating products. For a top-notch mobile crypto trading experience with a wide range of features and supported assets, Crypto.com is a compelling choice.
6. Gemini (BEST FOR SECURITY)
Gemini was selected as the top crypto exchange for its exceptional security measures, including strong security protocols, insurance coverage for user funds, and SOC 2 certification.
Pros
- Gemini is available to users in all 50 U.S. states, providing widespread access to its services.
- The exchange is highly liquid, offering a seamless trading experience with ample liquidity for various cryptocurrencies.
- Gemini ensures the funds are held in its hot wallet, providing an additional layer of protection for user funds.
- The platform has a robust security framework in place, prioritizing the safety and protection of user assets.
Cons
- Gemini charges high fees on many trades, which can impact the overall cost of trading for users.
- The exchange supports fewer cryptocurrencies compared to many of its competitor exchanges, limiting the range of digital assets available for trading on the platform.
Gemini, launched in 2014, is a New York-based cryptocurrency exchange known for its strong emphasis on security and compliance. The exchange offers hot wallet insurance, requires identity verification, and promotes two-factor authentication for enhanced account security. Gemini is SOC 2-certified, validating its security and compliance frameworks. With a professional-grade trading dashboard, it supports over 100 digital currencies and tokens, including altcoins like Cosmos (ATOM), Maker (MKR), and Dogecoin (DOGE). While Gemini’s fees are relatively higher, reaching 1.49% on transactions over $200, its robust security measures make it an appealing choice for traders and investors.
7.BitMart Exchange (BEST FOR ALTCOINS)
We chose BitMart as our top pick in the “best for altcoins” category due to its global accessibility, allowing users from 180+ countries to engage in buying and selling over 1,000 cryptocurrencies.
Pros
- BitMart supports an extensive selection of cryptocurrencies, providing users with a wide range of options for their digital asset investments.
- The platform offers crypto-earning opportunities, allowing users to participate in various programs and initiatives to earn rewards or passive income with their cryptocurrencies.
- BitMart provides a simple buy/sell cryptocurrency feature, making it convenient for users to engage in trading activities and easily convert between different digital assets.
Cons
- BitMart experienced a significant hack in 2021, which may raise concerns about the security of user funds and personal information.
- The exchange has received poor feedback from customers, indicating potential issues with customer support, platform performance, or other aspects of the user experience.
BitMart is a global cryptocurrency exchange founded in 2017, offering access to over 1,000 digital currencies and tokens in more than 180 countries. The exchange stands out for its extensive selection of assets and trading pairs, particularly for small and mid-cap cryptocurrencies. BitMart provides users with the opportunity to earn interest on their crypto assets through its Earn feature and offers trading fee discounts for holding its native token, BMX. However, BitMart has faced challenges, including poor customer feedback citing withdrawal issues, inadequate customer support, and a lack of transparency. The exchange also suffered a significant security breach in 2021, resulting in the loss of $196 million in user funds, which has affected its reputation. Despite these concerns, BitMart remains a preferred choice for crypto traders interested in exploring a diverse range of lesser-known cryptocurrencies.
8.Cash App (BEST FOR BITCOIN)
We selected Cash App as the best Bitcoin-only exchange because it offers a convenient and secure mobile platform for buying, selling, and storing Bitcoin directly from your smartphone.
Pros
- Cash App provides an easy-to-use interface, making it accessible and user-friendly for both beginners and experienced users.
- Users have the option to withdraw their Bitcoin to external wallets, giving them more control and flexibility over their cryptocurrency.
- Cash App supports the Bitcoin Lightning Network, allowing for faster and more scalable Bitcoin transactions.
Cons
- Cash App only supports Bitcoin, limiting the variety of cryptocurrencies available for trading and investment.
- The wallet provided by Cash App is custodial, meaning that users do not have direct control over their private keys and must rely on the platform’s security measures.
- Cash App imposes various limits on deposits, sales, and other transactions, which may restrict the trading volume and flexibility for users.
Cash App, launched in 2013, offers a mobile banking app that allows users in the US and UK to send, spend, bank, and invest. It stands out for its support of Bitcoin and the ability to withdraw Bitcoin to third-party wallets. Cash App has also begun rolling out support for the Bitcoin Lightning Network, enabling faster and low-cost Bitcoin transfers. However, the main drawback is that Cash App’s in-app wallet is custodial, meaning the company holds the user’s Bitcoin on their behalf. Trading fees vary and are shown during the transaction confirmation process.
9.Bisq (BEST DECENTRALIZED EXCHANGE)
We chose Bisq as the best-decentralized exchange because it offers users worldwide a secure and private platform for buying and selling cryptocurrencies.
Pros:
- Global availability, allows users from around the world to access the platform.
- Emphasis on privacy, as Bisq does not require users to undergo ID verification, ensuring a high level of anonymity.
- Wide range of payment options, with over 50 different methods available for users to choose from when conducting transactions.
Cons
- Transaction speed can be slow due to the decentralized nature of the platform, which relies on peer-to-peer trading.
- Trading volumes on Bisq can be low compared to centralized exchanges, potentially resulting in limited liquidity for certain cryptocurrencies.
- The platform is not specifically designed for active trading, as it prioritizes privacy and security over high-frequency trading features.
Bisq, launched in 2014, is an open-source decentralized cryptocurrency trading software that allows global users to trade various digital assets peer-to-peer without requiring KYC verification. The platform supports over 120 cryptocurrencies and offers multiple payment options, including bank transfers and cash deposits. While Bisq aligns with the principles of decentralization, privacy, and user sovereignty, it may not be beginner-friendly and has comparatively slower trade execution. Trading volumes on Bisq are typically lower than on centralized exchanges, making it more suitable for smaller trades. Experienced investors seeking a decentralized and KYC-free trading experience may find Bisq appealing. It’s important to note that, unlike traditional brokerages, cryptocurrency exchanges are not covered by SIPC, so users should be cautious about commingling funds on custodial exchanges.
Conclusion:
When venturing into cryptocurrency trading or investing, it is crucial to select the right exchange that suits your requirements. Whether you prioritize a wide selection of digital assets, low transaction fees, or a seamless mobile trading experience, there are excellent options available. After thorough research, we have identified the following recommendations based on specific strengths:
To make the best decision, carefully consider your goals and priorities. Evaluate factors such as the number of supported assets, security features, transaction fees, and mobile accessibility. By selecting an exchange that aligns with your needs, you can embark on your cryptocurrency trading or investment journey with confidence.
Frequently Asked Questions
Ans: A cryptocurrency exchange enables users to buy, sell, and trade cryptocurrencies through an online platform. Users place orders specifying the cryptocurrency, quantity, and price. The exchange matches these orders and executes transactions by transferring cryptocurrencies between buyers and sellers. Users can deposit and withdraw funds or cryptocurrencies from their exchange accounts. Exchanges provide market data, tools, and security measures to protect users’ funds and information. Fees are charged for the services provided. Users need to understand their chosen exchange’s functionalities and policies for a seamless trading experience.
Ans: When choosing a cryptocurrency exchange, there are key factors to consider. First, prioritize security and opt for exchanges with strong security measures like encryption, two-factor authentication, and cold storage for funds. Next, compare fee structures, including transaction fees, deposit/withdrawal fees, and trading fees, to find the most cost-effective option. Check if the exchange supports a wide range of cryptocurrencies or specific ones you’re interested in trading. Additionally, understand the custody options available, such as whether you can transfer your cryptocurrency to your digital wallet for added control. Lastly, decide between a centralized exchange that adheres to regulations or a decentralized exchange offering transparent peer-to-peer transactions. By considering these factors, you can choose a cryptocurrency exchange that aligns with your security, financial, and trading preferences.
Ans: To buy cryptocurrency, choose a reputable centralized exchange that supports your desired cryptocurrencies. Create an account, complete the required identity verification, and deposit funds using various payment methods. Place an order specifying the cryptocurrency and quantity you want to buy. The exchange will match your order with a seller and execute the transaction, crediting the purchased cryptocurrency to your account. You can choose to keep the cryptocurrency in the exchange’s custodial wallet or transfer it to your digital wallet for added control. Follow the exchange’s instructions and understand their policies for a smooth and secure buying experience.
Ans: When it comes to choosing the safest cryptocurrency exchange, several factors should be considered. Along with standard safety features like two-factor authentication, exchanges that prioritize enhanced security measures such as identity verification, SOC-2 certification, and user insurance provide additional protection against theft and fraud. Among the exchanges known for their focus on safety and security, Gemini is often recommended as a reliable option. Its commitment to robust security measures makes it a popular choice for users looking for a safer cryptocurrency exchange experience.
Ans: The number of cryptocurrency exchanges is vast, with hundreds of platforms available to users. These exchanges differ in terms of their size, user traffic, and liquidity. CoinMarketCap, a well-known platform for tracking cryptocurrency prices and market data, identifies approximately 570 crypto exchanges. However, it actively tracks and monitors the activity of around 238 exchanges. This indicates that there may be even more exchanges operating in the crypto market that are not captured by CoinMarketCap’s tracking. The diverse range of exchanges offers users a variety of options to choose from based on their specific trading needs and preferences.
Ans: In the USA, it is legal to buy and trade cryptocurrencies. However, regulations may vary by state. Some states have stricter regulations, while others have fewer restrictions. When purchasing cryptocurrency, exchanges follow Know Your Customer (KYC) requirements to verify customer information and prevent financial crimes. Compliance with KYC regulations is essential when engaging in cryptocurrency transactions.
Important:
Investing in cryptocurrencies, DeFi, and ICOs carries significant risk and is highly speculative due to the volatile nature of these markets. It is strongly advised to seek guidance from a qualified financial professional before making any investment decisions. The information provided in this article is not intended as a recommendation to invest in cryptocurrencies, and both Investopedia and the writer cannot guarantee the accuracy or timeliness of the information presented.
