Over time, cryptocurrencies have grown so popular worldwide with a market capitalization above $450 billion and counting as the industry is still young compared to other traditional markets. It’s safe to say that digital currency exchanges contributed immensely to the industry’s current progress since they enable the general public to purchase and trade cryptocurrencies.
Choosing the best cryptocurrency exchanges to suit your investment needs can be tiring at times. This is the reason we decided to map out the twenty reputable US-based cryptocurrency exchanges and their services. Before we delve into that, let’s look at the advantages and disadvantages of crypto exchanges in general.
Benefits of crypto exchanges
- Crypto exchanges are unarguably the most trusted mediums for buying and selling your digital currencies.
- Buying or trading cryptocurrencies from “reputable” exchanges save you from certain risks such as scams.
- With crypto exchanges, users always have active customer support available for assistance, unlike when transacting one-to-one with buyers/sellers.
- Today, many digital currency exchanges support mobile applications, which would enable you to check on your investment easily.
Disadvantages of crypto exchanges
- Transactions with crypto exchanges usually go with a cost.
- Some exchanges operate with lax security measures, thereby risking your cryptos to hacks.
- You don’t own full control of your cryptocurrencies in exchanges, as your account/funds can be frozen in cases of suspicious transactions.
This shouldn’t be a problem provided the source of your funds is legitimate.
Here’s the Best 13 US-based Cryptocurrency Exchanges You Should Know
Today, there are many US crypto exchanges in operation, compared to the early years in the crypto industry. For this same reason, it will be challenging to surf for an exchange that can serve your investment needs, which is the essence of this guide today. In addition to listing the exchanges, we will include other services they offer. So, here are they US-based cryptocurrency exchanges you can give a try:
1. Coinbase
Coinbase is known as one of the leading US-based cryptocurrency exchanges. Headquarters in San Francisco, Coinbase has prominently grown among the top-rated globally exchanges, with several other arms specializing in digital currency custody, crypto payment processing, and more.
The exchange is beginner-friendly, and everyone will find it both easy and swift to purchase popular-traded cryptocurrencies like Bitcoin, Ethereum, Litecoin, and many more. Interestingly, the exchange offers its new customers about $10 as a registration bonus. You are also provided with different payment methods for purchasing the supported cryptocurrencies on Coinbase. These include bank transfer, credit card, debit card, including SEPA transfers.
2. Bittrex
Bittrex is another digital currency based in the United States, precisely in Seattle. It was founded in 2014 and is already considered one of the leading exchanges of the world. It offers secure services, including data processing of deposits and withdrawals. There hasn’t been any record of a network breach with the crypto exchange so far, probably because all customers’ funds are stored in cold wallets (i.e., offline or hardware wallets).
Bittrex supports trading of more than 400 digital currency against the United States dollar (USD), Tether stablecoin (USDT), Bitcoin (BTC), and Ethereum (ETH). The US dollar withdrawals and deposits are processed through wire transfers. Do note that the cryptocurrency exchange charges a 0.25 percent flat commission for all crypto transactions made on the platform.
3. Poloniex
Poloniex is one other US-based cryptocurrency exchange you might want to consider. It was founded in 2014 and based in San Francisco with registration from FinCEN, the United States Financial Crimes Enforcement Network. The exchange supports more than 70 digital currencies on its platform, including Bitcoin (BTC) and Ethereum (ETH). Poloniex charges are as low as 0.20 percent for any crypto transaction.
Unlike other exchanges, Poloniex doesn’t support any payment method for fiat currency deposits. However, users can choose to deposit or fund their accounts for trading using cryptocurrencies. The exchange’s customer support service only functions via email ticket system, which many people consider an off point for the US exchange. Besides, the responses do take more time as per the users’ experience.
4. Kraken
Kraken is another popular exchange with its headquarters located in San Francisco. The company was established in 2011 and provided users with the opportunity to trade several digital currencies against the Canadian dollars (CAD), British pounds (GBP), Japanese yen (JPY), Euro (EUR), US dollars (USD), and cryptocurrency, Bitcoin (BTC). Kraken exchange has a low transaction fee and a minimum deposit fee. However, its payment methods are limited.
Kraken doesn’t support the use of cash payments, credit or debit cards, PayPal, etc., to fund accounts for fiat currencies. However, the customers can choose to use either debit or credit cards to instantly buy several digital currencies via its ‘Buy Crypto.’ Although Kraken exchange offers users a secure environment for crypto investing, it isn’t a friendly platform for newbies to begin their crypto journey because of its complicated interface. Recently, Kraken obtained a banking license from Wyoming authorities.
5. eToro
eToro is a secured crypto trading platform and a social trading and multi-asset brokerage company that facilitates the trading of commodities, stocks, including exchange-traded funds (ETFs). The exchange has one of its offices registered in New Jersey, United States, with an outstanding reputation as one of the best trading platforms for digital currencies. It supports cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Monero (XLM), and more.
Crypto trading platform supports fiat currencies and almost all the payment methods ranging from PayPal, Yandex, and bank transfers. eToro also serves as an institutional-grade platform for professional investors and corporations to invest and trade in digital currencies.
6. BitQuick
The next platform on the list of US-based cryptocurrency exchanges is BitQuick, which was founded back in 2013. BitQuick is based in Cincinnati, United States, with offices located in different states like Chicago, Saint Louis, and more. The exchange allows users to purchase and sell their bitcoins on the platform instantly. The exchange presents itself as a hybrid between BitInstant and LocalBitcoins.
BitQuick connects buyers to sellers directly through cash deposits or via SEPA transfers. The platform is flexible and has expanded its services to include customers abroad, including crypto traders in Canada, Europe, Russia, and Australia. The platform also offers public proof of reserve. Since the exchange doesn’t usually hold the private keys to customers’ assets, it’s less targeted by hackers.
7. Gemini
Gemini is among the most reputable and regulated US-based cryptocurrency exchanges. It was founded by the Winklevoss brothers in 2014, allowing its customers to purchase, sell, and hold their digital currencies. The exchange is also regulated by the NYSDFS, New York State Department of Financial Services, meaning it can serve crypto investors in New York. The company has grown to include custody services and a country-specific exchange in the United Kingdom (UK).
The exchange supports fiat and cryptocurrency trading pairs. However, Gemini doesn’t support deposits through credit cards. It only allows users to fund their trading accounts through wire transfers and would charge about 0.001 BTC for one Bitcoin withdrawal.
8. Paxful
Paxful is a peer-to-peer (P2P) cryptocurrency exchange that has an office located in the United States, precisely in New York. It was founded in 2015 and enables both buyers and sellers to communicate via posting trade offers. The exchange is similar to LocalBitcoins, which operate as an online marketplace for Bitcoin buyers and sellers. Since there’s are between the users, they can choose to use any convenient payment method, including MoneyGram, PayPal, etc.
The P2P exchange doesn’t hold its customers’ assets like other exchanges like Coinbase, Poloniex, and others. It facilitates transactions through its escrow platform to protect both the buyer and seller from frauds and disputes. The exchange supports other traders from other countries aside from the United States. Amongst other benefits, Paxful has a responsive support forum and will recommend sellers with better reputations to help prevent disputes.
9. Wall of Coins
Wall of Coins is another P2P Us-based cryptocurrency exchange, which offers crypto investors an accessible medium for buying and selling Bitcoin. Based in Florida, the Bitcoin marketplace is operated by Genitrust, Inc., which builds applications for several businesses in the financial technology industry. Although Wall of Coins provides its Bitcoin service to several locations in the country, it is still not working outside the United States.
The P2P exchange boasts of being a secured platform for buying and selling Bitcoin and Dash. It operates through a cash-based system to protect its sellers, meaning that all customers process transactions on the exchange via bank transfers. Wall of Coins supports a minimum deposit of $5 for buying Bitcoin, which will be sent directly to users’ specified wallet address after the bank transfer is confirmed. This entails that the exchange doesn’t custody users’ assets like other regular platforms, making it less vulnerable to security attacks.
10. itBit
Established in 2013, itBit is a cryptocurrency trading platform based in the United States. This exchange supports only cryptocurrencies. itBit claims to be a universal network for both the institutional and individual traders. itBit also offers over-the-counter (OTC) trading in its line of cryptocurrency services. The crypto exchange supports the trading of Bitcoin against several fiat currencies, including the US dollar (USD), Euro (EUR), and Singapore Dollars (SGD).
The exchange supports different payment methods, such as wire transfers, SWIFT Deposits, and SERP for EUR, all of which come with their respective deposit fees. However, itBit doesn’t charge users for Singaporean dollars and Bitcoin deposits and withdrawal. In addition to featuring a comprehensive FAQ section, the crypto exchange also supports 24/7 customer service via email messaging.
11. Gate.io
Gate.io was initially founded under the name “Bter.com” by Lin Han in 2013. The US crypto exchange is based in Virginia, allowing crypto investors in the country another medium to purchase and sell their digital currencies. The exchange supports Bitcoin, Ethereum, Litecoin, Qtum, and other digital currencies. Its services are available in both Chinese and English. Gate.io doesn’t support fiat currency deposits. However, users were provided a vast number of crypto trading pairs.
The exchanges charge a relatively lower fee, about 0.2 percent for any transaction in the platform. Gate.io also supports 24/7 customer service. However, it’s worth noting that the exchange operates as an unregulated platform. Sometime in 2015, Gate.io lost a huge amount of Bitcoin to hackers.
12. BitMEX
BitMEX is among the leading and reputable US crypto exchanges that also support derivatives trading. The exchange is based in Seychelles and operated by HDR Global Trading Limited. It is ideal for advanced traders to trade Bitcoin futures contracts and other derivatives products. However, BitMEX doesn’t support fiat currency deposits for trading: users are only provided an option to deposit Bitcoin, which can then be used to purchase other cryptos or trade against fiat currencies.
The US crypto exchange supports popular cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Dash, Monero, Ethereum Classic, Zcash, Tezos, and more. BitMEX trading interface is straightforward and user-friendly, yet the exchange still provides new users with a demo account for learning cryptocurrency trading without being exposed to associated risks. One drawback for BitMEX is that the Bitcoin withdrawals require more time to be processed, given that the cryptos are stored in cold wallets.
13. Binance.US
Binance.US is the cryptocurrency exchange launched in September 2019 specifically for the crypto users in the United States. The US crypto exchange is based in San Francisco and allows customers an easy and fast option for buying and selling digital currencies. Binance.US supports the trading of over 100 cryptocurrencies on its platform. With more concern for users’ asset security, the exchange also allows two-factor authentication, amongst other security features.
At the moment, the crypto exchange is not available to all the 50 states in the United States due to local regulations in the states. However, more states have been included since the platform launched. New users might find its challenging to use the exchange as it doesn’t support fiat currency deposit. They need to purchase and transfer cryptos like Bitcoin to the platform, which they can use to buy other cryptos.
Wrapping It Up
On a general note, cryptocurrency traders and investors have diverse choices to make when seeking the best US-based cryptocurrency exchange to use. All the exchanges mentioned above provide traders with a means of buying, selling, and trading cryptocurrencies, mostly Bitcoin. While you can quickly skim through our list to choose what US crypto exchange can best serve your investment need, it’s advisable to select a secured platform because assets’ security is an essential factor in the industry.
