5 Best Crypto Exchanges and Platforms of 2022
If you’re getting started in crypto investing, the first (and probably one of the most important) step is to pick the cryptocurrency exchange that best suits your crypto investing and trading needs. If you want to simply buy, hold and trade some of the most popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), there are many options for you. However, if you are a trader looking to make more advanced crypto trades like futures and options trading, you may be more selective on which exchange you choose. The number one step is to determine your crypto trading or investing goal. This will help guide you on which exchange will work best for you.
What Factors to Consider when Choosing a Top Crypto Exchange
- Supported assets: Which crypto assets are you interested in buying? This is one of the first questions you need to ask yourself when determining which exchange to choose. Most crypto exchanges host Bitcoin and Ethereum, given they’re the most popular cryptos and most widely traded on the market. But there is a larger market that goes beyond the two largest cryptos, which includes the altcoin market. If you are interested in trading alternative coins like Cardano (ADA), Solana (SOL), XRP (XRP), or Terra (LUNA), for example, make sure the crypto exchange of your choosing supports these assets.
- Fees: Transaction fees are an essential component when considering which crypto exchange to choose. This is how crypto exchanges make their money. Fees can vary across different exchanges. Each time you buy, sell and trade in crypto, you will pay fees, and sometimes these fees can be high, which can eat at your returns. Some may even offer discounts. When thinking about the fee structure, ask yourself, “what is the average transaction amount I plan to have?” The transaction amount determines how much you will pay in fees in many cases. If you plan to trade on margin, the exchange may charge you more fees based on your borrowed money.
- Security: One of the most important factors that should be at the top of your requirements is the crypto exchange's security to protect your crypto. In 2021 alone, $14 billion worth of crypto was stolen worldwide. Since crypto is still a newer market, it is ripe for scammers and cybercriminals to steal digital assets from crypto exchanges.
- High trading volume: Another component to look out for is crypto exchanges with high transaction volume. This can mean that many crypto market participants on the platform are actively trading, which brings more liquidity to the platform. High-volume exchanges provide quick and easy crypto trades at more favorable prices. Similarly, exchanges that carry cryptocurrencies with high liquidity are important so you can move in and out of trades with ease.
- Ease of use: Especially for newer crypto investors, it's essential to choose a crypto exchange that is simple and intuitive to use. If you want to make a quick, time-sensitive trade, you want to be able to know how to use the exchange easily rather than trying to figure it out on the stop. If you are more of an advanced crypto trader, make sure the exchange offers you the tools and resources to make technical trade decisions.
- Reputation: Choosing an exchange with a good reputation is among the key attributes to finding an exchange that works for everyone. There have been several exchanges whose platforms have been breached due to cyber attacks. This is the number one fear any crypto investor has- getting their tokens stolen from their crypto wallets. Make sure you choose an exchange that has safeguards in place in case of such an incident.
5 Best Crypto Exchanges in the USA for 2022
- Description: ATAIX is a cryptocurrency exchange that allows users to seamlessly buy and sell some of the most popular cryptocurrencies like Bitcoin and Ethereum.
- Main Features: Apart from having an easy-to-use platform for the average crypto investor, there are many tools and resources on the ATAIX website to guide you through any questions you have as you go.
- Number of Cryptocurrencies Available for Trade: There are more than 30 cryptos available to trade.
- Transaction Fees: Fees on ATAIX go as low as 0% and depend on how much you trade.
- Minimum Deposit or Purchase: It’s simple to open an account on ATAIX. Once you open an account, you can deposit any amount and begin trading.
- Pros and Cons: The pros include the ability to trade 24/7, ATAIX offers fast and secure crypto trading, and you can conveniently trade right on the mobile app. The con is that ATAIX has a limited number of cryptocurrencies available, but the list is growing.
- Description: Coinbase is one of the world's largest, most popular, and established crypto exchanges.
- Main Features: Coinbase has a “earn while you learn” feature that allows users to earn crypto while watching videos and learning about different crypto assets.
- Number of Cryptocurrencies Available for Trade: Coinbase offers more than 90 cryptocurrencies on its platform for users to trade.
- Transaction Fees: Coinbase will charge a fee based on estimates of network fees. These fees are disclosed at the time of transaction and can vary. Coinbase does not charge fees for transferring crypto from one Coinbase wallet to another.
- Minimum Deposit or Purchase: The minimum amount of cryptocurrency users can purchase is as little as $2.
- Pros and Cons: Pros for Coinbase are it offers a wide range of cryptocurrencies, a low minimum is required to start crypto trading, and your crypto is insured if there is a cyber attack. A con is that you may incur higher fees using Coinbase than other exchanges.
- Description: Binance is another popular crypto exchange on the list. It’s one that more advanced traders use.
- Main Features: Allows users to trade crypto derivatives and trade on margin with charting options.
- Number of Cryptocurrencies Available for Trade: There are more than 500 cryptocurrencies on Binance.
- Transaction Fees: Fees on Binance are low. They range based on transaction volume, but generally, spot trading fees are 0.10%.
- Minimum Deposit or Purchase: No minimum deposit is required.
- Pros and Cons: Pros for Binance include various crypto options, low fees, and an active user base. Cons are that U.S. users would have to use a different platform with limited options.
- Description: FTX is a popular crypto exchange among advanced crypto traders, and the exchange is known for its sophisticated crypto products.
- Main Features: FTX offers a variety of cryptocurrencies with built-out features than any other U.S. platform, according to the company’s website.
- Number of Cryptocurrencies Available for Trade: FTX offers hundreds of cryptocurrencies for spot trading.
- Transaction Fees: Transaction fees can range from 0% to 4%.
- Minimum Deposit or Purchase: There is a $0 minimum account balance required.
- Pros and Cons: The great thing about FTX is that it caters to more advanced crypto traders; however, it doesn’t have many customer support options, and there is a smaller selection of cryptocurrencies.
- Description: Kraken is a U.S.-based crypto exchange founded in 2011 and suited for beginner crypto investors looking for low fees.
- Main Features: Kraken offers strong security, staking, margin, and futures trading, as well as a glossary of definitions for different cryptocurrencies on its website.
- Number of Cryptocurrencies Available for Trade: There are more than 100 cryptocurrencies available on Kraken.
- Transaction Fees: Transaction fees on Kraken range from 0% to 0.26% of the total value of your order and depend on several factors.
- Minimum Deposit or Purchase: Minimum deposit amounts depend on the cryptocurrency you’re interested in purchasing.
- Pros and Cons: Kraken provides a wide variety of tokens to choose from, and there is a lot of liquidity on the platform. However, in the past, Kraken has been vulnerable to cyber hacks.
Everything you should Know about Crypto Exchanges
What are crypto exchanges?
Crypto exchanges are platforms where you buy and sell cryptocurrencies.
How do crypto exchanges work?
Users deposit money into the crypto exchange of choice, and they can buy and sell the cryptocurrencies of their liking.
How to open a crypto exchange account?
Once you choose a crypto exchange, you sign up through their website or the mobile app, link your bank account to fund it, and begin trading crypto.
What are the different types of crypto exchanges?
There are a variety of crypto exchanges on the market, including centralized, decentralized, hybrid, peer-to-peer, and derivatives exchanges, among many others.
How many crypto exchanges are there?
There are more than 300 exchanges on the market.
Which crypto exchange has the lowest fees?
ATAIX, Binance.US, Coinbase, and Kraken are among the exchanges with the lowest fees.
What is the most secure crypto exchange?
Many crypto exchanges today offer strong security and insurance in case of a cyber hack, like ATAIX, Binance.US, Coinbase, and Kraken.
What fees can you expect with cryptocurrency exchanges?
Some of the fees you can expect to incur are from trading, deposits, and withdrawal. Fees vary among exchanges.