Opening an account with a cryptocurrency exchange is a great place to start if you want to buy or sell cryptocurrencies. Crypto exchanges work similarly to online brokerage platforms in a way that they provide you with the resources you need to buy and sell virtual currencies and tokens such as Bitcoin, Ethereum, and Dogecoin.
The thing is — there are approximately 600 cryptocurrency exchanges around the world where investors can trade Bitcoin, Ethereum, and other digital assets. But of course, prices, quality, and safety vary a lot.
When selecting a cryptocurrency exchange, you have to consider several factors such as supported assets, fees, payment methods, and security. In this article, we’ll be listing down the best Crypto Exchanges of 2022 based on certain categories.
Before you get to the list, make sure that you have a complete understanding of what a cryptocurrency exchange is and how it works. Let’s review that for a bit.
What is a cryptocurrency exchange? What’s the deal?
A cryptocurrency exchange is a website where you can buy and sell cryptocurrency. You can use exchanges to convert one crypto to another, such as Bitcoin to Litecoin, or to buy crypto with regular currency, such as the US dollar. Exchanges display current market prices for the cryptocurrencies they provide. You can also exchange cryptocurrencies for US dollars or other currencies to keep as cash in your account (if you want to trade back into crypto later) or withdraw to your regular bank account.
According to Tyrone Ross, a financial advisor and CEO of Onramp Invest, a crypto investment platform for financial advisors, there is no one crypto exchange that is best for every user. Instead, he suggests evaluating your own crypto interests and finding an exchange that aligns with your goals.
How Can You Purchase Cryptocurrency?
To purchase cryptocurrency, most centralized exchanges accept deposits from your bank account, credit card, or debit card. The funds can then be exchanged for the cryptocurrency of your choice. While some exchanges only accept simple market orders, others allow you to set more advanced order types, such as limit and stop orders.
When you buy cryptocurrency through an exchange, it is typically held in a custodial wallet. The majority of exchanges keep assets in offline “cold storage” for safety. Most exchanges allow you to transfer cryptocurrency to your “hot” or “cold” wallet, along with the private keys for that cryptocurrency, if you want to take custody of it yourself.
2022’s Top Crypto Exchanges
- Best Overall and Best for Beginners: Coinbase
- Best Mobile App: Crypto.com
- Best for Security: Gemini
- Best for Altcoins: BitMart
- Best for Low Fees and Best for Experienced Traders: Kraken
- Best for Bitcoin: Cash App
NOTE: Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly speculative and risky, and markets can be extremely volatile. Before making any financial decisions pertaining to investing in cryptocurrency, it’s always best to seek advice from a qualified professional.
BEST IN CLASS AND FOR BEGINNERS: Coinbase
No. of Tradable Currencies: 150+
Transaction fees range from 0.00% to 0.60%.
$2 is the minimum deposit or purchase amount.
Why Did We Add It To The List?
Coinbase is our pick for the best cryptocurrency exchange overall and the best cryptocurrency exchange for beginners. It supports a large number of cryptocurrencies and has a high level of security. Coinbase, in addition to being a beginner-friendly platform, also offers an advanced trading platform—Coinbase Pro—making it a viable option for professional traders.
To be fair, let’s take a look at the advantages and disadvantages of using Coinbase:
PROs:
- A large number of cryptocurrencies and trading pairs are available.
- Provides both beginner and advanced trading platforms.
- Exchange of highly liquid currency
CONs:
- Relatively poor customer service
- Coinbase.com is a custodial account, which means you do not have access to the private keys.
Overview
For us to better understand why we picked Coinbase as the overall best crypto exchange globally, let’s take a quick look at how it started.
Coinbase was founded in 2012 to make it easier for people to buy, sell, and store Bitcoin. Today, Coinbase is a publicly-traded cryptocurrency exchange with a total market value of more than $36 billion!!
This cryptocurrency exchange, which was founded in San Francisco, is now a geographically decentralized company with no headquarters and operations in over 100 countries.
It distinguishes itself by offering a user-friendly trading experience, strong security, and a variety of advanced features for experienced traders.
Coinbase has become the go-to exchange for many first-time crypto buyers due to its large number of supported assets (150+) and simple platform. The platform has the appearance and feel of an online banking app, which most people are already familiar with, making the transition to cryptocurrency investing simple.
Coinbase also insures the digital funds it holds on behalf of users and keeps US dollar balances in FDIC-insured bank accounts to prevent user funds from being lost in the event of a security breach. Several payment methods including wire transfer and ACH transfer can be used to fund trading accounts.
Not only that, Coinbase also provides options for storing cryptocurrency:
The first option for new investors is to store their coins on the Coinbase.com exchange. When you store your cryptocurrency on Coinbase.com, Coinbase holds the private keys and effectively stores funds on your behalf.
The second option is a non-custodial wallet (Coinbase Wallet) for advanced cryptocurrency users. Here, the user has complete control over their funds with Coinbase Wallet because they hold the wallet’s private keys.
While Coinbase can be a good exchange for both new and experienced crypto investors, trading fees can be high, ranging from 0% to 0.60 percent depending on trade volume.
Despite these disadvantages, Coinbase is still worth considering due to its many benefits.
BEST MOBILE APP: Crypto.com
No. of available currencies for trade: 250+
Transaction fees range from 0.04 percent to 0.4 percent.
$1 is the minimum deposit or purchase amount.
Why Did We Pick It?
We chose Crypto.com as the best mobile crypto exchange app because it offers a comprehensive digital asset trading and investing ecosystem that is easily accessible from your smartphone.
Let’s take a look at the PROs and CONs of using Crypto.com.
PROs
There are a few notable things that you need to know about using Crypto.com including the following:
- Over 250 cryptocurrencies are supported.
- Offers a variety of cryptocurrency products.
How about the possible disadvantages?
CONs
- Fees are relatively high.
- Poor customer service
Overview
Crypto.com, which was founded in 2016, has established itself as one of the world’s leading cryptocurrency exchanges. It is now available in 90 countries and accepts over 250 cryptocurrencies.
In addition to a large number of supported assets, Crypto.com offers a vast digital asset ecosystem that includes its own blockchain, Crypto.org Chain; a native token called CRO; a crypto visa card; yield-generating crypto products, and more.
What particularly caught our attention the most is the Crypto.com mobile app. While many crypto exchange mobile apps offer a watered-down version of the exchange’s web-based platform, Crypto.com placed a strong emphasis on developing an app that offers a diverse range of products and features, allowing users to benefit from the exchange’s ecosystem while on the go. Users of the mobile app can buy, sell, trade, and earn interest on their cryptocurrency, as well as pay with it.
Because of its wide range of products and features, as well as its large number of supported assets, Crypto.com is arguably the best option for an excellent mobile crypto trading experience.
BEST FOR SECURITY: Gemini
75+ currencies are available for trade.
Transaction fees range from $0.99 to $2.99 for small purchases and 1.49 percent for orders over $200.
Minimum Purchase or Deposit: Depending on the asset
Why Did We Pick It?
We chose Gemini as the most secure cryptocurrency exchange because it has strong security protocols, insures user funds, and is SOC 2-certified.
Let’s review the PROs and CONs of using Gemini.
PROs
- Users in all 50 U.S. states can access it.
- Exchange of highly liquid currency
- Protects funds kept in a hot wallet
- Strong security framework
CONs
- Many trades have high fees.
- Fewer cryptocurrencies are supported than on many competitor exchanges.
Overview
Gemini was established in 2014 by Tyler and Cameron Winklevoss and it stands out for emphasizing security and compliance. The New York-based exchange offers hot wallet insurance to ensure that user funds are protected in the event of a security breach. It also requires users to go through an identity verification process to reduce the possibility of fraud.
Gemini also encourages users to use two-factor authentication to secure their accounts and gives them the option to review and approve the devices they use to access their trading accounts. Gemini also has SOC 2-certified security, which means that third-party auditors have verified the company’s security and compliance frameworks.
Gemini, which is designed for advanced traders, offers a professional-grade trading dashboard and supports over 75 digital currencies and tokens. Gemini also provides a cryptocurrency reward card and the ability to pay for goods and services with cryptocurrency.
BEST FOR ALTCOINS: BitMart
No. of Currencies Available for Trade: 1,000+
Transaction Fees: Ranging between 0.045% to 0.25%
When buying from Bitmart, the minimum deposit or purchase is $30; for spot trading, the minimum deposit or purchase is unspecified.
Why Did We Pick It?
BitMart is our top choice in the best for altcoins category because it allows users in more than 180 countries to buy and sell over 1,000 cryptocurrencies.
Let’s review the PROs and CONs of using BitMart.
PROs
- It accepts a large number of cryptocurrencies.
- Offers cryptocurrency earning opportunities
- Provides a simple cryptocurrency buy/sell feature.
CONs
- There was a large-scale hack last year (2021)
Overview
BitMart is a global cryptocurrency exchange founded in 2017, which operates in over 180 countries. It enables users to purchase, sell, and store more than 1,000 digital currencies and tokens.
BitMart has established itself as a leading trading platform for small and mid-cap cryptocurrencies. BitMart provides more assets and trading pairs than its market-leading peers, so investors looking to add newly launched or obscure crypto assets to their portfolios will most likely find what they need on this exchange.
Additionally, BitMart customers can use the Earn feature of the exchange to earn interest on crypto assets held with the exchange. When holding the exchange’s native token, BMX, users can also get trading fee discounts.
In December 2021, BitMart experienced a security breach that resulted in the loss of $196 million in user funds. While BitMart has promised to reimburse users, the hack has severely harmed the exchange’s reputation.
Despite these disadvantages, crypto enthusiasts seeking to trade a diverse range of lesser-known cryptocurrencies can still find what they’re looking for by using BitMart.
BEST FOR EXPERIENCED TRADERS AND LOW FEES: Kraken
No. of available currencies for trade: 120+
Transaction fees range from 0.00% to 0.260%.
The minimum deposit or purchase is $1, but this may vary depending on the method used.
Why Did We Pick It?
Kraken Pro, Kraken’s professional-grade trading platform, is our pick for the best low-fee exchange because it has some of the lowest fees in the crypto exchange landscape. It’s also our top pick for experienced traders, as it supports margin and futures trading and offers advanced order types.
Let’s review the PROs and CONs of using Kraken.
PROs
- A large number of cryptocurrencies are supported.
- Very affordable fees
- Exchange of highly liquid currency
CONs
- Not available in all states in the United States.
- Account funding options are limited.
Overview
Kraken is one of the most reputable cryptocurrency exchanges in the world, having been founded in 2011 and being available in the majority of the world. On its professional-grade trading platform, Kraken Pro, the San Francisco-based exchange allows investors to buy, sell, and store over 120 cryptocurrencies while charging low fees.
In the early days of the crypto market, this feature-rich crypto exchange established itself as the go-to platform for professional investors, and it has maintained its reputation as a dependable and professional trading venue.
Kraken has two platforms: its main trading platform and Kraken Pro, its professional platform. The Pro dashboard on the exchange offers highly customizable chart analysis tools, detailed insight into order books, 13 order types, and high-speed execution. Kraken users can trade cryptocurrency on margin and execute crypto derivatives trading strategies in addition to spot trading.
While instant buy fees on Kraken’s main platform can reach 1.5 percent, fees on Kraken Pro are extremely low. Kraken Pro has a tiered fee structure, which allows high-volume traders to save money on trading fees. Kraken Pro’s maker fees begin at 0.16 percent and taker fees begin at 0.26 percent for traders with 30-day volumes of less than $50,000.
Maker fees, on the other hand, can be as low as 0%, and taker fees as low as 0.10 percent (for traders with 30-day rolling volumes of more than $10 million).
BEST FOR BITCOIN: Cash App
No. of currency available for trade: Just one, Bitcoin
Transaction Costs: Varies
Minimum deposit or purchase amount: $1
Why Did We Pick It?
We chose Cash App as our top pick among Bitcoin-only exchanges because it allows you to buy, sell, and store Bitcoin from your smartphone in a seamless and secure manner.
Let’s review the PROs and CONs of using Kraken.
PROs
- Simple to use interface
- Withdraw to your wallet
- Bitcoin Lightning Network is supported.
CONs
- Only Bitcoin Custodial wallets are supported.
- Limits on deposits, sales, and so on.
Overview
Cash App, launched in 2013 by Block, Inc. (formerly Square, Inc.), allows people in the United States and the United Kingdom to send, spend, bank, and invest money. It’s essentially a mobile banking app focused on peer-to-peer payments, but it also includes an investment component.
Through the Cash App, users can invest in stocks, ETFs, and Bitcoin. Unlike its competitors, such as Robinhood and Venmo, Cash App allows users to withdraw Bitcoin to third-party wallets, which sets it apart from the competition.
Cash App CEO Jack Dorsey announced in early 2022 that the company has begun to roll out support for the Bitcoin Lightning Network, enabling near-instant Bitcoin transfers at almost no cost.
The Bitcoin trading fees on Cash App vary and are only displayed when you are asked to confirm your buy or sell transaction. When you trade bitcoin with Cash App, the mid-price is used and a spread fee is added.
The Bottomline
Choosing the best exchange for your specific needs is critical if you want to get started with cryptocurrency trading or investing. There is a good option for you whether you want a large number of digital assets to trade, the lowest possible fees, or the most user-friendly user experience.
If you’re looking for a user-friendly platform that supports a large number of cryptocurrencies, Coinbase, our top overall pick, could be the right exchange for you. If you value low fees, Kraken Pro could be a good option. Consider your objectives and priorities, and then select the exchange that best meets your requirements.
