How to Choose The Right Crypto Exchange

Exchanges may send out press releases when they complete SOC 1 and 2 examinations, as Coinbase did with auditor Grant Thornton in 2020 and Gemini did with Deloitte in 2021. But if you can’t find evidence of these reports online, it’s worth calling the customer service department. Until the dust settles in Washington, it’s best to look for an exchange that already has security controls and financial audits in place.

how to choose a crypto exchange

We chose as the best mobile crypto exchange app because it provides an extensive digital asset trading and investing ecosystem you can access easily from your smartphone. Coinbase is our pick for best crypto exchange for beginners because it offers a large number of supported cryptocurrencies, strong security, and advanced trading capabilities, all on an easy-to-use platform. Some crypto enthusiasts object to centralized exchanges because they go against the decentralized ethos of cryptocurrency. Even worse in the eyes of some crypto users, the company or organization may require users to follow Know Your Customer (KYC) rules. These require each user to divulge their identity, much as you would when you apply for a bank account, to combat money laundering and fraud.

Which crypto exchange has the lowest fees?

It’s crucial to select a cryptocurrency exchange with a solid reputation and no history of hacks or scams. You want an exchange with robust security measures in place, such as two-factor authentication, cold storage for digital assets, and regular security audits. Kraken, Coinbase, and Bybit are some of exchanges with strong security measures. However, for experienced crypto investors who prefer to trade on a decentralized, KYC-free platform, Bisq offers everything you need to buy and sell cryptocurrency. Founded in 2017, BitMart is a global cryptocurrency exchange that’s available in over 180 countries.

Consider if the exchange follows know-your-customer (KYC) regulations, which require users to provide identification documents for verification purposes. By choosing a regulated exchange, you can trade cryptocurrencies with peace to choose a crypto exchange of mind knowing that your funds are protected and the platform operates ethically in accordance with legal guidelines. In terms of trading volume, it indicates the amount of buying and selling activity happening on the exchange.

Start slowly, build your knowledge and confidence, and as you become more comfortable, move on to the more sophisticated ways to build your crypto portfolio. Offering them under one website there is a danger that a newbie struggles to find the simple Convert view among all the other confusing options. Conversely, having the two options within one navigation makes it easier to move to trading, as and when you feel ready. Though the example of Coinbase has two experiences across two distinct websites, some exchanges offer them under one roof, but labelled as separate views.

  • Ensure that you choose a platform that doesn’t have hidden transaction fees.
  • After launching in 2016, has established itself as one of the leading global crypto exchanges.
  • To paint a vivid picture, CEXs are like a dazzling treasure chest filled with perks, such as fiat support, abundant liquidity, a diverse array of assets, and a seamless user experience.
  • Of the world’s largest crypto exchanges, it has been reported that KuCoin does not report information directly to any U.S. governmental organizations, including the IRS.
  • Alternatively, make it a habit to move your crypto holdings out of an exchange’s default wallet to your own secure “cold” wallet.
  • Digital security that will prevent hackers from stealing customer assets should always be priority No. 1 for a crypto exchange.

Doing so is similar to the process of buying traditional assets like stocks on through a brokerage. The transaction fee structure differs across various crypto exchanges. Understanding the fee structure of a crypto exchange is crucial as it allows you to know what you are dealing with when conducting several activities.

Exchange Specific Criteria

Before you hand over your cash, ensure you know what the exchange will charge you for crypto transactions. Depending on the type of cryptocurrency exchange, they work in diverse ways. You can either buy crypto using fiat currency, such as the U.S. dollar, or trade crypto-to-crypto, depending on which exchange you choose. Always consider fee structures, available cryptos and crypto pairs, ease of use, reputation, security, and customer support offerings.

Coinbase’s more than 200 tradable coins should satisfy most looking to break into the crypto space.  provides a very good selection of cryptocurrencies, with more than 250 available. The platform offers unique perks and crypto rewards for Visa Card  users. They can be based on the size of the transaction or your level of trading activity. It’s important to research and be aware of exchange fees when you are ready to buy and sell crypto in this way.

Bitcoin USD

It also allows for faster transactions since you don’t have to transfer funds between different platforms. Some popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC). However, there are thousands of other altcoins available, each with its own unique features and potential for growth.

how to choose a crypto exchange

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Trading crypto across multiple exchanges can be an interstellar hassle — but not anymore! Bitsgap is your command module to control more than 15 connected exchange accounts from one single interface. Early exchange Mt. Gox collapsed in 2014 after losing $460 million in customer funds. To help you find an exchange that won’t let you down, we’ve put together this handy guide to navigating the good, the bad, and the ugly of the crypto exchange world.

Cryptocurrency exchanges are online platforms hosted by companies or other entities that make it convenient for users to purchase and sell cryptocurrency. When cryptocurrency was first introduced, you had to manually enter a command in a terminal to send a coin to someone. Eventually, user interfaces were designed that made it easier to access cryptocurrency. Before jumping into any random exchange someone recommended, you should consider many factors.

Bottom Line: Exchange Your Way Up

An exchange with an intuitive interface and good user experience makes it easier to trade the cryptocurrencies available. However, user experience is subjective, and people enjoy various interfaces. Furthermore, ensure to check the customer service and other customer-related functionalities offered by a crypto exchange. Retail investors may find a suitable alternative for crypto exchange by using an online broker that enables indirect trading by moderating between customers and the market.

Some exchanges offer some types of insurance policies that protect cryptocurrency users from fraud and hacking. It is estimated that about $2.72 billion has been stolen from crypto exchanges since 2012. When comparing cryptocurrency exchanges with online brokers, traders must understand the core differences between the two types of services. To start using a crypto exchange, you’ll first need to set up an account, complete the KYC (Know Your Customer) verification process and provide identification documents (ID and proof of address). After your account gets verified, you can use the crypto exchange to buy or sell cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Polkadot (DOT), Dogecoin (DOGE), and others. When choosing a cryptocurrency exchange, it is important to look at factors such as supported assets, fees, payment methods, and security.

The crypto universe is vast — home to more than 10,000 digital assets and counting. No two exchanges are alike in their galactic selection, so choose one that lets you chart a course to your coins of choice. Before you start trading in cryptocurrency, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. After many of these exchanges collapsed, it’s been proven that their founders have not been fully honest about the traders’ funds. A recent case is the FTX crypto exchange, which collapsed in under three days at the beginning of November 2022. The FTX collapse caused at least $1 billion of customer funds in losses.

Additionally, the exchange is more targeted at making smaller trades as trading volumes are lower than on centralized global exchanges. This decentralized exchange does not require users to complete a Know Your Customer (KYC) identity verification process, nor is the trading software limited to users in specific jurisdictions. On Bisq, users can buy and sell Bitcoin and other cryptocurrencies using various payment methods, including bank wire transfers, ACH transfers, and cash deposits. We performed an in-depth assessment of the features and options offered by nearly 25 cryptocurrency exchanges, crypto trading apps and brokerage platforms that offer crypto trading options. It offers a crypto exchange with trading in 27 cryptocurrencies, as well as an online brokerage platform with access to a limited selection of stocks and exchange traded funds (ETFs). One important factor to consider when choosing a crypto exchange platform is the fee structure and transparency.