The 7 Best Cryptocurrency Exchanges in 2024
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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 500,000+ as well as the unique features that each exchange provides.
However, Coinbase has faced criticism for high fees on certain transactions (such as those under $200). In addition, customer support is limited for most users, although Coinbase One offers priority support for those who pay $30 a month.
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 and has faced criticism for a lack of customer support.
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Designed for cryptocurrency investors of all experience levels, Gemini offers a basic version for beginner investors and an ActiveTrader platform for more advanced traders.
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!
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%.
Uphold’s trading fees are higher than other exchanges, with a 1.6% fee on BTC and ETH transactions.
CashApp allows you to buy, sell, and transfer BTC in just a few clicks. Its user-friendly mobile app makes Bitcoin transactions simple and easy.
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 500,000 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.
Frequently asked questions
- How do cryptocurrency exchanges work?
- What are the top cryptocurrency exchanges by volume?
- What is the safest cryptocurrency exchange?
- Which cryptocurrency exchange has the lowest fees?
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