Choosing a cryptocurrency exchange is usually the first step when buying digital assets. Cryptocurrency exchanges allow you to buy, sell, and trade coins. But choosing a cryptocurrency exchange is like picking the best toothpick from a box.
To help you narrow down your choices, our team has ranked the best cryptocurrency exchanges and apps for 2024. We researched over 20 leading platforms and evaluated their features, fees, and more. Here are the best cryptocurrency exchanges and apps we found:
Best Cryptocurrency Exchanges and Apps
Why trust our investment professionals?
Our team of experts evaluates many investment products and analyzes a variety of data points to help you find the best fit for your situation. We use a data-driven methodology to determine each rating. Advertisers have no influence on our editorial content. Learn more about our methodology below.
- We reviewed 20 cryptocurrency exchanges.
- More than 45 data points were analyzed.
- Three levels of editorial review.
- Five-step fact-checking process.
Compare the best cryptocurrency exchanges and apps
We have researched some of the largest cryptocurrency exchanges and ranked the best exchanges currently available.
Among the cryptocurrency brokers we reviewed, the companies that made the list excelled in the following categories:
- Coins are offered and fiat currency is also accepted.
- Fees are measured by a cap on taker fees for users with low trading volume.
- Trading features.
- availability.
- customer service.
- education.
- safety.
- storage.
- Staking and rewards.
Within each major category, we considered several subcategories, which were then combined to arrive at an overall score for that category.
Data points were scored on a scale of 0.00 to 1.00, with a maximum score of 0.75, giving a 5-star rating as the highest possible score.
Why other cryptocurrency exchanges and trading apps weren't chosen
There are countless other cryptocurrency exchanges and trading apps on the market. We have not included exchanges that are not well established or do not have the necessary scale.
There are many great companies out there, but unfortunately their reputations are being tarnished by bad actors. The lack of transparency and public information has led us to focus on the more prominent exchanges.
Final Verdict
Each cryptocurrency exchange offers its own strengths and weaknesses that make it suitable for certain users.
There is little reason to recommend anything other than the largest exchanges, as many have gone bust and this trend is unlikely to change in the future.
Larger exchanges can still go bankrupt, but this is less likely than smaller exchanges. Larger exchanges like Binance.US and Kraken offer more features and better customer support.
Overall, our top recommendation is Crypto.com Exchange, which offers the widest range of cryptocurrencies with some of the lowest fees in the industry.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a platform where you can buy and sell cryptocurrencies. You can exchange one cryptocurrency for another or convert fiat currencies, such as the US dollar, into cryptocurrencies and vice versa. Exchanges usually charge a fee or commission for transactions.
Think of a cryptocurrency exchange as a cryptocurrency broker. Some online brokers, such as Fidelity and Robinhood, currently operate as cryptocurrency exchanges. However, they tend to offer a limited number of cryptocurrencies. For example, Fidelity allows trading of Bitcoin and Ethereum, while Schwab allows clients to invest in cryptocurrency funds.
“Using these companies is a good option for beginners,” said Matthew Weathers, an applied educational technology administrator and adjunct professor of mathematics and computer science at Biola University in La Mirada, California.
However, one of the goals of cryptocurrencies was to allow users to hold their own assets and act as their own bank.
How to Choose the Best Cryptocurrency Exchange
With so many exchanges available, finding the best spot cryptocurrency exchange can be difficult. It may be tempting to choose the exchange that offers the most assets, but size isn't the only thing to consider.
safety
The cryptocurrency world can seem like a lawless place. Exchanges appear and disappear as frequently as cryptocurrencies. Scams and fraud are also rampant. Before you start trading, you need to find out how a company protects its customer assets.
reputation
Look for an exchange that doesn't have a history of hacks, scams, or other incidents that may limit your access to your assets. For example, an exchange may temporarily freeze withdrawals due to technical issues. This can be inconvenient. But the real issue is that regular freezes can be a sign of liquidity problems.
Registration
For the best security, look for an exchange incorporated in the United States. Also check if they are registered as a securities broker, money transmitter, or depository institution.
You can find out if an exchange is registered as a broker by looking it up on FINRA BrokerCheck.
Money transmitters must register with the Financial Crimes Enforcement Network.
Depository institutions are registered with the Federal Financial Institutions Examination Council National Clearinghouse. However, registration in the US does not guarantee the safety of an exchange, as evidenced by the fact that the now-defunct FTX exchange was registered as a money transmitter.
Fee
When investing, you want low fees. The same goes for cryptocurrency exchanges. Ideally, your chosen exchange will have minimal fees. However, if the exchange offers greater security, slightly higher fees might be worth it.
Most importantly, the exchange's fees are transparent.
customer service
See how easy it is to get in touch with the exchange's customer service department. If you're still looking for contact information, take your assets elsewhere. A reputable exchange should be easy to access and respond quickly to any concerns you may have.
How to open a cryptocurrency exchange account
To open a cryptocurrency exchange account, you need to register with the exchange's platform. Each platform has its own steps, but no matter where you go, there are likely some commonalities.
Most exchanges, especially reputable ones, will ask you to provide some personal information like your name, contact details, employment status, proof of identity, etc. This is because many exchanges adhere to Know Your Customer standards. To register, you may also need to be over 18 and live in a supported country.
Once you have verified your personal information, you will need to specify your payment method. The options available will vary depending on the exchange, but many exchanges allow payments via bank transfer, debit card, and credit card. Whatever funding method you choose, be sure to keep an eye on the fees; for example, credit card payments often come with high transaction fees. Once you have provided the required information and verified your identity, you can make your first trade.
Tips: Before making your first trade, be sure to set up a wallet account to store your cryptocurrency. The exchange will likely offer a hot wallet option to store your coins online, although a cold wallet may be a more secure option.
Cryptocurrency market outlook for 2024
Crypto enthusiasts are optimistic that the Federal Reserve is nearing its final interest rate target for the current cycle, which could lead the central bank to cut rates by mid-2024, easing pressure on cryptocurrencies and other risky assets.
As of Jan. 10, the U.S. Securities and Exchange Commission has approved spot bitcoin ETFs from a variety of providers, including VanEck, WisdomTree, and BlackRock.
Bitcoin bulls have long believed that an SEC-approved spot Bitcoin ETF would make bitcoin more accessible to institutional and retail investors, which could open the door for the cryptocurrency to become a mainstream asset class.
Frequently Asked Questions (FAQ)
While the majority of cryptocurrency exchanges may be operating fairly (and we hope they are), the reality is there is no way to know. Proof-of-reserve reports help increase transparency, but better audits are needed.
The exception is Coinbase, which is publicly listed and therefore required to make public disclosures that private exchanges are not required to make.
Tips: If you don't store your assets on an exchange and only use them for trading before withdrawing them, your risk should be reduced.
Trading cryptocurrencies is different from trading stocks because the regulatory rules are different. Because cryptocurrencies are a relatively new industry, the laws are not yet in place, which means it can be more difficult to trade in some jurisdictions.
Cryptocurrency is still in the experimental stage and is more of a gamble than an investment. While stock trading is very risky, cryptocurrency trading is even riskier.
Binance.US is the best cryptocurrency exchange with low fees. It is free to trade Bitcoin and has no fees on Tier 0 pairs.
Paying your trading fees with BNB tokens will give you a 5% discount on all maker and taker fees. Traders with high trading volumes may be able to get even higher fee discounts. However, to get the best prices, you will need to trade a lot.
No one can predict the future, especially not of a new and volatile asset like cryptocurrency.
The issuance of more cryptocurrency ETFs and mutual funds could spur demand. Bitcoin hit new highs after investors poured money into the United States. Bitcoin Spot ETFIf this demand continues, investors can expect to see further increases in cryptocurrency prices in the future.
Some of the most stable cryptocurrency exchanges include Coinbase, Binance, and Kraken, which are in the top 10 exchanges by trading volume. The higher the trading volume, the more stable the market price will be.
That said, stability depends heavily on the asset. Even large cryptocurrency exchanges can experience high volatility with cryptocurrencies that have low trading volumes. If you are concerned about stability, cryptocurrencies may not be the best investment for you.
Cryptocurrency can be purchased through cryptocurrency exchanges, online brokers, trading apps like Robinhood, and money transfer apps like PayPal. Bitcoin ATMs also allow you to buy Bitcoin with your debit card, just like you would withdraw cash from a regular ATM.
To make a purchase, you'll need to set up an account and will usually need to verify your identity, so be prepared to show documentation or a phone number if you use a Bitcoin ATM.
Once your account is verified, you can purchase cryptocurrency via bank transfer or credit card – be aware of fees if you choose the latter option.
