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6 Best Crypto Exchanges
By James F. Trumm MONEY RESEARCH COLLECTIVE
Commission-free and social platform to discuss strategy with other investors
25+
$0 commission fees (1-2% markup fees still apply)
$0
Yes
1.5% back in Bitcoin on every purchase with the BlockFi Rewards Visa® Signature Credit Card
6
No commission fees (spread fees still apply)
$0
Yes
#1 on the Cybersecurity Ranking and CERtification Platform
250+
0.4% - 0.036%0.4% - /0.090%
$1
Yes
Platform rewards users for consuming educational material
130+
0.40% - 0.00% / 0.60% - 0.05%
$2
Yes
Automatically invest on a scheduled basis with dollar-cost averaging
60+
0.1% - 0.0150% / 0.1% - 0.0300%
$10
Yes
Uses elevated account limits to verify a buyer's integrity, but not their identity
No set list
0.001 BTC or 8.66 BSQ / 0.007 BTC or 60.59 BSQ
0.006 BTC
No
Crypto exchanges help investors buy cryptocurrency, convert one form of crypto into another, and turn their crypto back into cash. In effect, they function like stock brokerages, but for crypto. Since there are now more than 12,000 digital currencies and dozens of exchange platforms, it can be hard to figure out not only which currency to invest in but which is the best crypto exchange to use.
We’ve studied how crypto exchanges work and how to pick the best one for your investment requirements and level of expertise. Whether you just want to buy Bitcoin (BTC) and Ethereum (ETH) or want to trade some of the lesser-known “altcoins,” the best crypto exchanges will make the whole process as easy as making any other online purchase.
Before you go on: Recent crypto market conditions have called the financial stability of cryptocurrency exchanges into question. Investors who hold crypto assets on exchanges should know that exchanges may suspend trading, leaving investors unable to move their digital assets. Assets kept on exchanges are not insured either by governmental entities or trade organizations. Further, if an exchange filed for bankruptcy, it’s possible that investors’ crypto accounts would be deemed assets of the exchange, not of the exchange’s customers.
Our Top Picks for Best Crypto Exchanges for 2022
We studied almost two dozen platforms to match different investor profiles with the most suitable exchange. Our top picks are presented below.
- Coinbase – Best for Crypto Novices
- Binance.US – Best for Active Traders
- Crypto.com – Best for Secure Transactions
- BlockFi – Best for Crypto Day Traders
- Bisq – Best for DeFi
- Public – Best for Investor Social Networking
Best Crypto Exchanges Reviews
Best for Crypto Novices: Coinbase
Why we chose it: If you’re new to the crypto world, Coinbase will help you learn the basics and start trading quickly. This platform offers a good selection of cryptocurrencies and an easy-to-use interface that allows crypto newbies to learn about the market, the terminology, and the differences among the various coins on offer.
- Ease of use
- Broad selection of educational material
- Incentivizes learning through its app
- Higher trading fees than other exchanges
- Complicated fee structure
Coinbase combines ease of use with educational materials in a way that teaches newcomers the basics and shows them how to begin to invest. Coinbase incentivizes learning by giving users small amounts (typically $2 to $5) of crypto after they watch promotional videos and complete simple quizzes.
Coinbase provides several trading features that are especially attuned to new crypto investors :
- User-friendly interface. Onboarding into this system is easy. Trades are executed promptly and transparently.
- Educational materials. The Coinbase Earn program presents the advantages and unique features of a curated collection of crypto assets and then rewards people for learning about them.
- Coinbase Wallet. For investors who want to store their crypto in a private wallet, Coinbase allows users to create their own wallets and to easily move assets in and out of them.
- Coinbase Pro. When investors gain more confidence, are prepared to navigate a more advanced user interface, or decide they want to invest more actively, Coinbase Pro offers more advanced trading metrics and lower fees than the standard account.
Unfortunately, Coinbase does have some drawbacks. This crypto app has higher trading fees than a majority of its competitors – and those fees are not prominently disclosed. The fee structure is complex, which is a deterrent to some cryptocurrency trading beginners and leaves them vulnerable to “surprise” transaction charges.
Best for Low Fees: Binance.US
Why we chose it: Binance.US offers an inexpensive fee structure, which includes a maximum 0.1% maker/taker fee. And fees get lower the more you trade. So if you’re an active cryptocurrency trader looking for a higher margin, Binance.US could help ensure that your bottom line isn’t eaten away by exchange fees.
- More affordable fees when compared to other exchanges
- Charts and data visualizations
- Not available in every state
- Fewer coins than other exchanges
In addition to affordable trade and conversion fees, Binance.US offers charting and data visualization that let you keep track of your assets at a glance. Its centralized dashboard steers users toward discounts and different purchase and trading options, and order types.
As of this writing, Binance charges 0.1% maker/taker fees, which is on par with the lowest fees charged by full-service dedicated crypto trading platforms. What’s more, if you pay your trading fees with Binance’s native token (BNB), you’ll receive a 25% discount. There are some lower-priced exchanges, but they tend to be specialty platforms or parts of multipurpose investment companies (such as Robinhood) that don’t focus exclusively on crypto and offer little by way of metrics and support.
As of January 2022, Binance.US is not available in several U.S. states including Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. And though its list of different cryptocurrencies is growing, those who want to invest in less popular and newer coins may have to look elsewhere.
Best for Security: Crypto.com
Why we chose it: Together with the usual identity verification systems that other exchanges provide, Crypto.com layers on its own robust account protection protocols that offer exceptional cybersecurity. Additionally, this exchange charges low fees if you fund your account with cash transfers.
- Strong security infrastructure
- Low fees for accounts funded with cash transfers
- Expansive assortment of cryptocurrencies
- Not all services and coins are available in the U.S.
- Limited educational material
- High taker fees
Crypto.com offers a strong cybersecurity infrastructure to protect its traders from fraud and cyberattacks. Traders must use a multifactor identification system to log in. The platform includes off-line cold storage that further protects your crypto wallet from malicious hackers. Funds that have not yet been invested or are awaiting distribution are kept in a corporate-owned FDIC-insured US bank account.
Crypto.com bases its security measures on the principle of least privilege. This principle states that users of the platform are only assigned those privileges that are strictly necessary to accomplish specific trading objectives–and then only for the period of time required. This limits the harm that malicious hackers can do if they gain access to one part of the platform.
Crypto.com also offers a decentralized finance (DeFi) wallet for those who prefer the extra security that provides. The platform also allows you access to margin trading and the ability to borrow against your crypto assets.
Although Crypto.com does offer excellent security, it does have a few shortcomings. Its taker fees are 60% higher than the lowest of such fees charged by its competitors – though it does offer a stepped discount for paying those fees in CRO (its native token). Its professional-grade platform is not yet available in the United States, nor are many of its listed coins, which leaves American investors with more limited currency choices.
Best for Crypto Day Traders: BlockFi
Why we chose it: BlockFi doesn’t charge trading fees and only takes a fee when crypto is converted to fiat currency and withdrawn from the exchange. This is an ideal fee structure for crypto day traders who buy and sell prolifically and seldom make cash withdrawals.
- Can earn monthly interest on assets
- Zero trading or commission fees
- Very limited number of cryptocurrencies
- Charges withdrawal fees
BlockFi’s zero-trading-fee policy should be very attractive to a high-volume trader, whose profits would be eaten away by high trading fees.
BlockFi’s other major strength lies in the high interest rates it offers investors on their crypto assets. While the exchange’s no-trading-fee policy is attractive to crypto day traders, the high interest rates it offers on crypto that’s parked on the exchange may appeal more to buy-and-hold (“hodl”) investors. Those interest rates fluctuate, but are often as high as 8% APY.
As noted above, though BlockFi doesn’t charge trading fees, it does charge withdrawal fees. These fees can be hard to pin down, because BlockFi expresses them in crypto, not in dollars. And since the value of crypto fluctuates minute by minute, the fees in dollar terms are constantly changing.
A more significant shortcoming is that BlockFi only supports a small number of cryptocurrencies – mostly big dogs like Bitcoin, Ethereum, Litecoin, Dogecoin, and a few others. And its website doesn’t definitively list what coins it currently supports, which makes signing up a bit of a crapshoot for people who have their heart set on one particular crypto asset.
One other aspect of BlockFi may be a drawback for some people, but not for others: BlockFi doesn’t allow direct cash purchases of its major coin offerings. Instead, it requires investors to purchase a stablecoin and convert that into the desired crypto asset. Since BlockFi doesn’t charge trading fees, this process doesn’t cost the investor anything, but it does require more effort.
Best Decentralized Exchange: Bisq
Why we chose it: Bisq maintains an open-source platform that facilitates peer-to-peer trading rather than depending on an intermediary organization to conduct transactions. This, along with its broad selection of digital currencies, makes it our pick for the best decentralized exchange.
- Supports trading for a large number of cryptocurrencies
- Easy-to-use interface
- No mobile app for trading
- More complicated trading structure
Bisq supports trades with a wide variety of both coins and traditional currencies. It accepts many payment methods and boasts a user-friendly interface. And because it doesn’t require a third party to conduct trades and transactions, it doesn’t require users to submit personal information.
Bisq also goes beyond industry norms in keeping transactions secure. It uses a multi-signature and security deposit system to keep transactions private. You and your fellow traders have complete control of your funds and personal information during each trade.
The function of decentralized exchanges such as Bisq is to bring two people together for a mutually agreeable transaction without the need for a third party.That sounds good in theory, but in practice it is more complex and takes more getting used to than a centralized exchange does. While the Bisq site has a wiki and a blog, they’re definitely on the thin side and don’t do as good a job as other sites we’ve reviewed.
People who like trading cryptocurrencies on the go will be disappointed that Bisq does not have a mobile app.
There’s one aspect of Bisq that many people view as a strength, but could be a weakness as time passes. Decentralized exchanges offer enhanced privacy to buyers and sellers, since there is no single registry of trades and because they can be used completely anonymously. Those features, however, attract people engaged in illegal activity – and that, in turn, may invite heightened governmental scrutiny, regulation, or even prohibition down the road.
Best for Investor Social Networking: Public
Why we chose it: Public provides an easy-to-use and commission-free trading platform for users to invest in cryptocurrency as well as stocks and ETFs. This exchange also features a social component that allows users to view other investors’ portfolios and share ideas.
- Supports trading stocks and ETFs, including fractional shares
- Community aspect lets users share insights and view other's portfolios
- Commission-free trading
- Fewer learning tools and data than other exchanges
- No web-based version
Pubic offers novice investors who wish to dabble in crypto, stocks, and ETFs the ability to do so on a single mobile app. Although it’s not unusual for exchanges to offer it, one appealing feature for Public users is the ability to purchase fractional shares of stock. This makes the stock market more accessible to investors with limited budgets.
The social aspect of Public’s platform encourages users to share ideas, insights and tips with each other and lets users see each other’s portfolios. The exchange also contains a learning section with hundreds of articles about investing, which is beneficial to novice traders in particular.
However, compared to other exchanges, Public doesn’t provide the robust data and charting tools that active traders utilize to track and analyze their assets.
More experienced investors might also find that Public lacks a wide variety of investment vehicles, with only crypto, stocks and ETFs as the available options.
A drawback of using Public to buy crypto is the limited selection it offers, with only 27 different coins available for trading. Further, New York residents are currently not eligible to purchase cryptocurrencies through Public.
Other Crypto Exchanges We Considered
We researched a number of crypto exchanges as we prepared this article. Although not all of them were our top picks, some are still worth checking out because of their individual standout features:
- Robinhood – an easy-to-use platform that also allows trading in stocks and other investments
- eToro – an investment community that’s ideal for social trading
- Cash.app – a cash-transfer service that also lets customers invest in stocks and trade Bitcoin
- Kraken – An advanced crypto trading platform with 24/7 customer support
Crypto Exchanges Guide
What is a crypto exchange?
A crypto exchange is a platform that supports the purchase, sale and trading of cryptocurrencies. Depending on the exchange being used, investors can use digital or fiat currencies to purchase cryptocurrencies.
Unless you have fairly advanced computer skills and a good understanding of blockchain technology, you’ll need to use an exchange to make crypto purchases and sales and to manage your digital assets. Ideally you should choose an exchange that provides inexpensive and speedy trading, access to a wide variety of cryptocurrencies, up-to-the-minute pricing, ease of use, the ability to use one cryptocurrency to purchase another, and quick and easy conversion of fiat currency into crypto and vice-versa.
Crypto wallets vs. crypto exchanges
The most significant difference between crypto exchanges and crypto wallets is that while exchanges are meant to enable and support the trading of crypto, wallets are meant to hold and keep crypto coins. Most of the top crypto exchanges provide their own wallets to simplify the process for newcomers.
Crypto traders intent on holding their investments for a while should consider keeping their coins in a wallet to avoid losing them to an exchange security breach. The best crypto wallets offer cold storage to hold the currency offline and keep it safe.
How do crypto exchanges work
Crypto exchanges work much the same way as online stock exchanges. Users can deposit either fiat or digital currencies into an exchange to be able to purchase assets. How the process works depends on the type of crypto exchange being used and the transaction being established.
Types of crypto exchanges
Centralized exchanges
Centralized exchanges (CEX) are essentially brokers that facilitate the trade of cryptocurrencies. They are the most common type of exchange and include Coinbase, Gemini, Binance, and FTX. CEXs offer various advantages:
- Simple interfaces that can accommodate new users or experienced investors involved in high-volume trading
- Customer support to assist with technical issues
- High liquidity
The main drawback to CEXs is that they’re vulnerable to security breaches. If you’ve ever asked “Is Bitcoin safe?” in regard to crypto’s volatility, you should also consider asking it relating to potential hacks.
Decentralized exchanges
A decentralized exchange (DEX) allows cryptocurrency traders to deal directly with each other rather than going through a third party. There are several benefits to DEXs:
- Traders pay less in transaction fees
- Decentralized exchanges are more difficult to hack than centralized exchanges
- Without a single location, a decentralized crypto exchange is freer from governmental regulations than its centralized counterparts
DEX has its disadvantages as well. It’s usually more complicated to navigate the trading process in a decentralized exchange because it lacks easy-to-use interface CEX offers. It also doesn’t have the same high level of trading volume or liquidity that a centralized exchange provides.
Hybrid exchanges
Much less common are hybrid crypto exchanges. These attempt to combine the best parts of CEX (mainly its ease of use and liquidity) with the best that DEX offers (security) while avoiding each one’s limitations.
Crypto exchange fees
The fees charged by crypto exchanges – even the best ones – are often difficult to ascertain in advance. And they change from time to time.
Exchange fees
Generally speaking, these types of fees are what the exchange charges for its services. The main exchange fees are trading fees (what the exchange charges you for completing transactions, often called maker or taker fees), withdrawal fees (charges for taking your money out of the exchange), and account fees (similar to monthly bank account fees).
Network fees
Network fees don’t go to the exchange but instead are directed to the miners who process transactions. CEXs usually absorb these types of fees since they are the intermediary between user and miner. However, investors who use DEX typically have to pay these fees themselves.
How to choose a crypto exchange
If you’re a new or casual crypto investor, you’ll probably want to start with an exchange that’s user-friendly, offers a number of different coins, includes educational materials, and provides basic information about your portfolio’s performance. You’ll also find it’s more convenient to sign up with an exchange that accepts bank-issued debit cards as well as the more customary bank transfers. There are a few exchanges that accept credit cards, but usually with additional fees and restrictions. If you want to trade on the go, you’ll also want an exchange that features a solid app that functions well on both Android and iOS.
More experienced and active crypto traders will likely seek out the lowest trade costs and the most sophisticated analytical graphing of the crypto market. Some exchanges also facilitate staking your crypto, which allows you to earn interest on it. Investors looking to the future of crypto will want to make sure that their platform supports the latest DeFi tokens.
Not all crypto exchanges are created equal, so knowing yourself and your goals and limitations as an investor will help you make a smart selection. No matter what your goals are, it’s a good idea to seek out an exchange that provides robust security. At a minimum, your exchange should require two-factor identification and adhere to the principle of least privilege. Your exchange should also initially deposit funds it receives from investors into an FDIC-insured bank account.
Cryptocurrency Exchanges FAQ
What's the best crypto exchange for me?
There is no single answer to this question. Though cryptocurrency has been around since 2009, it's still a "young" investment vehicle when compared to stocks, bonds, real estate, and mutual funds. And it's evolving rapidly.
It's best to understand your investment goals, your knowledge of and experience with crypto assets, your tolerance for risk, and your comfort with technology. That understanding will steer you toward the exchange that's best for you.
One way to narrow down your choices is to make a list of the cryptocurrencies you want to invest in and eliminate exchanges that don't offer the coins you want to buy. Also pay attention to what trading pairs (e.g., Bitcoin-to-Litecoin, Ethereum-to-Dogecoin, etc.) are supported. Different platforms offer different currencies and trading pairs.
How many crypto exchanges are there?
Crypto exchanges don't necessarily register with a central governmental authority and frequently operate transnationally, so it's difficult to know how many exchanges are operating. Smaller platforms come and go, so the actual number changes all the time. As of February 8, 2022, CoinMarketCap lists 313 different exchanges.
What are the limitations of trading platforms that aren't dedicated crypto exchanges?
Trading platforms that aren't dedicated crypto exchanges generally don't have all the resources or bells and whistles that advanced traders want and need. Their dashboards aren't optimized for the rapid fluctuations of cryptocurrency prices, and they often don't have the educational materials to help investors make good decisions. What's more, they mix both regulated securities (stocks, bonds, mutual funds, REITs, etc.) with unregulated crypto assets, which may cause some investors to incorrectly believe that their crypto investments are subject to the same rules that govern traditional asset classes.
Is cryptocurrency a Ponzi scheme?
In the last year, several high-profile articles have been published suggesting that cryptocurrency is nothing more than a Ponzi scheme, a scam in which existing investors take their "profits'' from the funds deposited by new investors. Central to this suggestion is the notion that, as Gertrude Stein might have put it, when it comes to cryptocurrency, there's no there there. Crypto doesn't give investors partial ownership of a company and its assets the way stocks do. It doesn't create an enforceable obligation to repay investors a certain amount of money plus interest the way bonds do. And it certainly isn't a tangible asset like gold or real estate is. The only thing that gives crypto its value is people's belief that it's valuable.
There's something to this criticism, but its weaknesses become more apparent when we look at other asset classes that are solely based on popular confidence. The most obvious example of this is the U.S. dollar which is no longer "backed" by gold, silver, or other precious commodities. The Ponzi scheme claim also overlooks crypto's undeniable utility. Crypto can be sent from person to person instantly anywhere in the world without an institution such as a bank or a wire service company mediating the transaction. That efficiency alone, crypto advocates argue, is enough to give cryptocurrency intrinsic value.
That said, there's no denying that cryptocurrency is a highly volatile and risky investment. And because the crypto world is lightly and inconsistently regulated, it's easy for investors to fall prey to common scams. The best way to mitigate risk is to remember the 5% rule: you shouldn't allocate more than 5% of your portfolio funds to risky investments or put more than 5% of your portfolio into any one investment.
How We Chose the Best Cryptocurrency Exchanges
Our key criteria in compiling this list were related directly to the user experience and customer support. To evaluate each company, we analyzed the following key metrics:
- Security – We looked for companies that follow established security protocols, maintain a strong cybersecurity infrastructure, and offer identification measures such as two-factor authentication to prevent fraud and possible hacks.
- Usability – We favored exchanges that present easy-to-use interfaces so that users can focus on trading and not on learning how to use a complicated platform.
- Available cryptocurrencies – With the abundance of cryptocurrencies in the market, we compared exchanges that offer a wide variety of coins to those that offer the most popular major ones.
- Fees and Costs – While some exchanges offer commission-free trading, we looked at other costs associated with this type of investment, such as taker fees, trading fees, and withdrawal fees.
- Educational Material and Tools – Since trading in cryptocurrencies is still a relatively new process, exchanges that provide educational articles and data tools are preferred over those that limit the learning experience.
Summary of Miami Herald’s Best Crypto Exchanges for 2022
Though there’s no one-size-fits-all exchange for cryptocurrency investors, we believe these are the best exchanges for different types of investors:
- Coinbase – Best for Crypto Novices
- Binance.US – Best for Active Traders
- Crypto.com – Best for Secure Transactions
- BlockFi – Best for Crypto Day Traders
- Bisq – Best for DeFi
- Public – Best for Investor Social Networking
