Table Of Contents
Best Crypto Exchanges 2024
Last Update: 2024-11-16
Despite recent setbacks, investing in cryptocurrencies has remained a popular activity among new investors. Many people wonder where to start investing and what is involved in the process of getting in on the action. One of the first things you will need as you begin a crypto investment career is access to a crypto exchange. This is an online platform where you can trade digital currencies. You can buy and sell the most popular coins, such as bitcoin and ethereum, as well as many of the lesser-known coins.
Crypto exchanges operate in a similar fashion to online brokerage platforms. If crypto is not the first asset class you have ever traded, and you have been investing for some time, you will be familiar with dealing with an online broker. When choosing a crypto exchange, some of the same fundamentals exist: you will be looking for a platform that is safe, can support many assets, has low fees, and offers multiple payment methods. That is to mention only a few of the most important criteria. We will cover the remainder in this article.
The crypto universe is vast and is growing all the time, notwithstanding the recent high-profile loss of value in the sector. To put a number on the scale of the industry is difficult, as it changes so fast. At recent count, there were more than 20,000 cryptocurrency projects worldwide, supported by some 600 crypto exchanges. Therefore, you have a lot from which to choose.
Best Crypto Exchanges in 2024
| Name of Crypto Exchange | About | Pros and Cons |
| eToro | eToro is a multi-asset investment platform that offers a comprehensive crypto trading experience. This includes a crypto exchange allowing easy transfer of coins from the eToro trading platform into the eToro wallet for seamless usability. | Pros: ● Customized risk management. ● Demo account with $100K. ● Powerful copy trading tools. Cons: ● Not available in all US states. ● Poor customer service. |
| Kraken | Kraken is one of the largest and oldest crypto exchanges in the world. It is consistently named one of the best places to buy and sell crypto online. Founded in 2011, it has been at the vanguard of the blockchain revolution ever since. Users can enjoy access to 185+ cryptos with low fees, versatile funding options, and rigorous security standards. | Pros: ● Low spreads. ● Deep liquidity. ● Versatile funding options. ● Industry-leading security standards. Cons: ● High Swift withdrawal fees. ● Limited account-funding options. ● Not available in all US states. |
| Binance | Binance has over 120 million registered users and offers traders access to 350+ cryptocurrencies. This trusted global crypto exchange is committed to user protection with strict protocols and industry-leading technical measures. | Pros: ● Strong access to NFT markets. ● Easy account opening. ● Fast and safe execution. Cons: ● Not available in seven US states. ● Local affiliates do not have the same number of crypto pairs as global platforms. |
| Crypto.com | The self-proclaimed “World’s Fastest Growing Crypto App,” Crypto.com strives to be more fair and equitable, owned by the builders, creators and users. Offering 250+ cryptocurrencies at true cost, this exchange allows users to make purchases in 20+ fiat currencies using bank transfers or credit/debit cards. | Pros: ● Deep liquidity. ● Fast execution with low latency. ● All user coins are held offline in cold storage. ● Strong sports marketing partnerships. Cons: ● High trading fees for low volume traders. ● Slow in-app support. |
| Coinbase | Founded in 2012 with the aim of building a more fair, accessible, efficient and transparent financial system enabled by crypto, Coinbase boasts a trusted and easy-to-use platform enjoyed by appproximately 103 million verified users in over 100 countries. | Pros: ● Secure storage. ● Protected by third-party insurance up to a maximum of $250,000. Cons: ● High fees. ● Confusing fee structure. |
| Robinhood | On a self-styled “mission to democratize finance for all,” Robinhood believes the financial system should be built to work for everyone. It is a safety-first company where participation is power. The company strives to create products that let users start investing at their own pace, on their own terms. | Pros: ● Enables low capital trading. ● Zero crypto purchase fees. ● Cold storage for most user coins. ● Crime insurance against theft. Cons: ● Limited regulation. ● Not all user coins are in cold storage. |
What is a Crypto Exchange?
A crypto exchange is an online platform that acts as a marketplace where you can trade digital assets. This includes major cryptocurrencies, like bitcoin and ethereum, as well as the many emerging coins that are not yet so popular. Some crypto exchanges also allow you to buy and sell Non-Fungible Tokens (NFT), which is an emerging space that is sure to see significant growth in the short- to medium-term.
Crypto exchanges work by giving users an interface on which they can deposit funds in fiat currencies, which allows them to buy digital assets. These assets show up in their crypto exchange account and can be traded with other cryptos, if you wish. When you choose to sell all or some of your crypto assets, you can sell them on the same crypto exchange and withdraw the equivalent in fiat currency.
One of the many benefits of crypto exchanges is that they grant you access to the market and give you the mechanisms to become a trader. Without a crypto exchange, you can imagine that investing in cryptos would be a challenge. It is important to note that many diversified online brokers often provide the same services as a crypto exchange. So, for example, you could have a basket with your online broker that includes stocks, FOREX, exchange traded funds (ETF), and crypto. The key difference here is that crypto exchanges are dedicated to crypto. The end result is that diversified online brokerages often support fewer cryptocurrencies, yet charge higher fees than dedicated crypto exchanges.
Crypto Wallet Vs. Exchange
In the crypto world, you will often hear the terms “wallet” and “exchange” used almost interchangeably. Crypto wallets and exchanges are both important tools to manage cryptocurrencies, but they are not the same thing. As we have discussed, crypto exchanges are the platform upon which you can trade cryptos and NFTs. Wallets, on the other hand, are digital (or hardware) tools meant to keep your crypto funds safe.
Crypto exchanges are designed to facilitate trade between users. They allow you to convert fiat currencies into digital currencies at exchange rates set by the exchange. Crypto exchanges have unbroken uptime as they are required to be available 24/7. The crypto market is global, and traders want to take advantage of as much trading time as they can, from wherever they are based in the world.
Crypto wallets hold the private keys that are needed to access cryptocurrency coins or NFTs on the blockchain. Wallets can be offered by your crypto exchange as an integrated account feature, or by a third party that focuses only on developing highly secure crypto wallets. Some examples of third-party wallets include Electrum, Exodus and Mycelium. As the industry grows, more enabling technologies are being developed by independent technology firms that see a way to support the industry and make money.
As mentioned, some crypto exchanges have developed in-house wallets that they offer to new users to start trading crypto on their platforms. This makes it easier for new investors to start trading crypto as soon as their account is opened. It saves the trouble of choosing a crypto exchange and then choosing a wallet, as both require research. When you use a wallet that is offered by your crypto exchange, the exchange is responsible for developing and implementing industry-grade safety measures.
Of course, the downside of using your exchange’s wallet is that you are surrendering the safety of your entire portfolio to the exchange, and if it is hacked, you could lose everything. When you are serious enough about trading, it is recommended to invest in a backup wallet system of your own, preferably a cold wallet, which is not connected to the Internet and is thus not at a high risk of being hacked.
How Do Crypto Exchanges Work?
Crypto exchanges are not unlike online brokerages that deal in other financial asset classes. With a crypto exchange, you can deposit a fiat currency to buy a cryptocurrency of your choice, you can choose to use the crypto exchange’s integrated wallet, or you can use a different wallet to diversify your storage exposure.
How a crypto trading platform works depends on the type of exchange it is. The majority of crypto platforms are centralized exchanges. We will cover this type of exchange in later sections, but, in principle, a centralized exchange offers intermediary services between buyers and sellers, much like a brokerage.
You can deposit funds in the form of fiat money into crypto exchanges, or, you can deposit crypto from other sources into your account to carry out what is known as crypto-to-crypto spot trading. Traders can convert one crypto to another, in much the same way as they can trade FOREX and exchange one currency for another. Some exchanges will even allow you to earn interest on assets held within the exchange account.
Capitalizing your account is easy, as most exchanges accept a variety of payment methods, such as credit card payments, direct bank transfers, debit cards, money orders, and electronic payment apps. Dedicated crypto exchanges will normally allow you to withdraw your crypto funds and transfer them to another wallet of your choice. However, if you choose to invest in crypto through a diversified broker that offers many other assets besides crypto, you could find yourself limited to keeping your crypto purchases only in its wallet.
Recommended Brokers
Different Types of Crypto Exchanges
There are a few types of cryptocurrency exchanges. They differ in important ways. Here they are:
Centralized Crypto Exchanges
Centralized crypto exchanges are normally owned and run by one company. These companies allow traders to buy crypto using a fiat currency. The exchange provides intermediary services, so you must approach the exchange and ask it to source the crypto assets for which you are looking. Most crypto exchanges are centralized exchanges. One of the downsides of offering intermediary services is that centralized exchanges must play by the rules of regulators in their jurisdiction and subject their operations to more scrutiny.
However, not all crypto investors prefer this type of exchange because they are not in keeping with one of the main tenets of the crypto world – decentralization. It is considered an invasion of an investor’s privacy when they must go through Know Your Customer (KYC) processes on a crypto exchange. By now, we know that crypto is pseudo-anonymous, and many people are drawn to this arrangement because they believe that the traditional banking system is over-regulated; and consumers must part with too much of their personal information to partake in the system.
Other investors do not favor centralized exchanges because of the chances of hacking. As we have discussed, many exchanges use their own wallets, and this leaves investor coins open to be stolen through hacking. That said, crypto exchanges have tried to improve their security in recent times. They try to make their services safer by storing more customer assets offline and taking out insurance policies to cover crypto losses in the case of theft by cyber criminals.
Decentralized Crypto Exchanges
Decentralized crypto exchanges work somewhat differently in that users of the system are asked to share the responsibility for verifying crypto trades. You can choose to join a decentralized network and verify the transactions of other users, in the same way that blockchain works. The idea is to democratize the payment system so that you can participate in it as a user who both invests in cryptos and also has a vested interest in the good health and integrity of the system by volunteering your services to perform transaction verifications.
Of course, this seems like a lot of work, and so it puts off some investors. Another big drawback of decentralized exchanges is that they are difficult with which to work. The interface is not as slick as a commercially-produced exchange interface, while converting cryptos among each other is complicated by the fact that decentralized exchanges do not always allow users to deposit fiat money and exchange it for crypto. So, you must either own some of your own crypto, or you must first patronize a centralized exchange to buy crypto before you can transfer it to a decentralized exchange. As you can see, the double-work is not ideal.
Also, as decentralized exchanges offer peer-to-peer exchange, this means the exchange is not acting as an intermediary that sources crypto on your behalf... rather you must find a fellow investor somewhere in the world who is willing to buy what you are selling. As you can imagine, in times of low liquidity, you often must accept trades that do not suit you.
Hybrid Crypto Exchanges
Hybrid exchanges are a new type of exchange that tries to provide you with the best of both worlds. In an effort to improve on what is provided by older exchanges, they provide the improved functionality and liquidity of centralized exchanges, as well as the increased anonymity of decentralized exchanges.
What you get with hybrid exchanges is faster transaction speeds where your privacy is still paramount. These new additions to the crypto universe can be expensive to use as it takes money to develop new hybrid products of this nature. There are also concerns about whether they can be scaled up and if they will ever carry a wide enough range of cryptos to rival other types of exchanges.
Crypto Exchange Fees
Crypto exchange fees can broadly be split into two types: exchange fees and network fees. Fees in the crypto world have a complicated reputation. One of the biggest reasons why the idea of a decentralized financial system is gaining steam is because it is different from the traditional system in which most people have no alternatives and must accept all elements of it without question. With fiat money, you are a small part of the payment ecosystem, and you are forced to use it. Quite simply, the crypto world was meant to offer a payment system where people paid fewer fees because there were fewer intermediaries.
So, the fact that there are, indeed, many fees with which to grapple in the crypto system is a source of disappointment for some. Here we should differentiate that many of these fees are investment fees, which can be understood and accepted. Many traders also understand that with emergent technologies, there will always be a price to pay to improve the safety and innovation of the tools in use. What follows is more detail on the types of fees you can expect to pay:
Trading Fees
Trading fees can be charged as a flat percentage of the amount of crypto you buy or sell, or an exchange may have slightly different fees for orders that are makers and those that are takers, charging a different percentage accordingly. These “maker/taker” fees are related to whether the crypto order gives liquidity to the market or not.
Withdrawal Fees
Many crypto exchanges charge fees to withdraw coins from their platform. In the traditional world, withdrawal fees are something many consumers understand and accept. For a crypto trader, if you want to move your crypto to a more secure third-party wallet or onto another exchange, it could be a source of contention to have to pay withdrawal fees. Withdrawal fees typically vary by cryptocurrency and by exchange, so you are advised to choose wisely.
Deposit Fees
These fees become payable when investors add money to their account, usually via debit card, credit card or online payment wallet.
Account Fees
This fee is charged on a regular basis, usually monthly, as a way for the crypto exchange to maintain your account and keep it in good order.
Network Fees
These fees are paid to cryptocurrency miners, also known as “gas fees,” for the service of processing and securing crypto transactions on the blockchain. Crypto miners are an important part of the ecosystem and exist to process and validate transactions on the blockchain.
Other Fees
If you are an advanced trader who deploys more advanced trading strategies, like margin trading, there are additional fees associated with using your crypto exchange’s money. These fees normally come in the form of facility fees for the use of your exchange’s liquidity.
How to Choose a Crypto Exchange
When choosing a cryptocurrency exchange, there are several elements for which to account. Does the crypto exchange offer social investing? What is the size of its crypto asset range? Does it enable peer-to-peer transactions? What is the quality of the mobile app? All these elements must be considered beyond the usual items that set online brokers apart from each other, like fees, trading platform strength, security, speed of trade execution, as well as the quality of its educational resources.
Trading cryptos safely and reliably depends on the platform you use. Make sure that your partner has all the functions for which you are looking. Even now, as the industry emerges, there is a lot of difference in quality among the best exchanges and the worst.
One important thing to note is where and how your cryptos are being stored. Unlike trading stocks or FOREX with an online broker, there is no way hackers can steal your stocks or your FOREX reserves unless they figure out a way to socially engineer your identity and break into your account. In the age of multi-factor authentication, this is very difficult to pull off. Stealing cryptos, however, is an entirely achievable aim, as has been proven many times in the recent past. So, be sure to take control of where your crypto is being stored. Understand the differences among the types of wallets you use and their respective safety features.
Centralized exchanges must comply with the financial regulations from governmental authorities in the jurisdictions they operate. This is why some will ask you to fulfill KYC obligations. Decentralized exchanges are unregulated online exchanges that are user-owned (hence the poor interfaces). These exchanges have their advantages, but face a major disadvantage in that they are not governed by a central authority, contributing to their vulnerability to attack. Here is more information on the main elements you need to consider when choosing a crypto exchange:
Security
This goes without saying. According to blockchain analytics company Chainanalysis, crypto scammers made off with $14 billion in 2021. A large chunk of this can be blamed on abuse of smart contracts on the decentralized finance system. It is best to concentrate your efforts on making sure you get this part right.
Available Crypto Assets
The number of coins is growing all the time. You may never trade the thousands of coins out there, but having a high number of investable coins says something about an exchange’s commitment to being a leading provider in the market.
Trading Volume
Can you get the right levels of liquidity based on your chosen crypto? Some of the most obscure coins will never have the right levels of liquidity to make a bankable investment. That is a simple fact. You would ideally want to engage with a crypto exchange that concentrates on the main cryptos like bitcoin and ethereum, but also leaves room for emerging coins.
Educational Resources
Let’s face it, the world of crypto is murky at the best of times. By some estimates, as many as 60% of millennials living in major financial centers have invested in cryptocurrencies. That number reduces rapidly as the respondents get older. One of the main reasons is that people find crypto confusing and hard to grasp. This makes finding a crypto exchange with a strong educational resource center a very important thing.
Accessibility
Not all crypto exchanges are available everywhere. With no legislation or barriers to entry, some exchanges sprout up in the furthest reaches of the world, but you may not be able to trade with them, so don’t assume you can trade with simply any crypto exchange. The US, for example, bars its citizens from trading with many crypto exchanges in overseas markets. There are many reasons for this, ranging from taxation issues to firms requiring licensing in the US, and of course, there is always the state-by-state legislation to consider. This is why many overseas crypto exchanges, even some of the most well-known and established, will preemptively declare that they do not accept US clientele.
Security
This goes without saying. According to blockchain analytics company Chainanalysis, crypto scammers made off with $14 billion in 2021. A large chunk of this can be blamed on abuse of smart contracts on the decentralized finance system. It is best to concentrate your efforts on making sure you get this part right.
Available Crypto Assets
The number of coins is growing all the time. You may never trade the thousands of coins out there, but having a high number of investable coins says something about an exchange’s commitment to being a leading provider in the market.
Trading Volume
Can you get the right levels of liquidity based on your chosen crypto? Some of the most obscure coins will never have the right levels of liquidity to make a bankable investment. That is a simple fact. You would ideally want to engage with a crypto exchange that concentrates on the main cryptos like bitcoin and ethereum, but also leaves room for emerging coins.
Educational Resources
Let’s face it, the world of crypto is murky at the best of times. By some estimates, as many as 60% of millennials living in major financial centers have invested in cryptocurrencies. That number reduces rapidly as the respondents get older. One of the main reasons is that people find crypto confusing and hard to grasp. This makes finding a crypto exchange with a strong educational resource center a very important thing.
Accessibility
Not all crypto exchanges are available everywhere. With no legislation or barriers to entry, some exchanges sprout up in the furthest reaches of the world, but you may not be able to trade with them, so don’t assume you can trade with simply any crypto exchange. The US, for example, bars its citizens from trading with many crypto exchanges in overseas markets. There are many reasons for this, ranging from taxation issues to firms requiring licensing in the US, and of course, there is always the state-by-state legislation to consider. This is why many overseas crypto exchanges, even some of the most well-known and established, will preemptively declare that they do not accept US clientele.
Conclusion
Finding the right crypto exchange is a process you must work hard at to get right. The benefits of doing so include partnering with an entity that will serve you well as you grow in your crypto career. Many crypto investors have lost their valuable investments to hacking and the loss of wallets. Make sure you know what you are signing up for so you can get the best deal for yourself.
Arincen’s Review Methodology
The team at Arincen collected more than 120 pieces of data covering in excess of 100 crypto exchange companies. Data collection was conducted in three ways:
1. Companies’ Websites.
2.Other Websites that have ranked crypto exchange companies.
3.A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.
2.Other Websites that have ranked crypto exchange companies.
3.A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets, etc.
Afterward, we validated the data by:
1. Registering with the crypto exchange as a secret shopper and/or as Arincen.
2. Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
2. Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung, etc.
To add credibility to our research project, we sent a third and final/survey (referred to here as Survey “3”) to enable participating crypto exchange companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.
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