Crypto Exchanges in USA: US Crypto Exchanges

Crypto Exchanges in USA: The cryptocurrency market has grown exponentially in recent years, in the United States and around the world. So finding the right cryptocurrency exchange can be a daunting task for both new and experienced traders. 

In the United States, where a long list of exchanges is available, it is even more difficult to choose the right one. First, you need to check the number of cryptocurrencies supported, trading pairs, and the exchange fees. After that, you should make sure that the company invests in high-tech security methods. And has a responsive support team before you can join the exchange.

On the bases of these factors, we have framed a list of the best crypto exchanges in USA with a review of each one.

Crypto Exchanges in USA

List of crypto exchanges in USA

Coinbase Exchange

Coinbase is our favorite cryptocurrency exchange for people in the United States. And one that caters to the needs of both novice and professional traders. Started as a wallet service in 2012, before becoming a crypto exchange. Coinbase has served over 30 million customers globally.

What makes Coinbase so reliable is that if Coinbase decides to support a new cryptocurrency that currency must first be approved by the platform’s Digital Asset Framework.

The valuation is based on parameters like market capitalization, speed, customer demand, etc. Besides, users buy cryptocurrencies supported directly by Coinbase and not by other users, which makes the platform a very liquid broker.

Being a resident of the United States means that they accept payments in USD and once you have passed the KYC verification check, you can go to Settings> Linked Accounts in your Coinbase account and choose one of the easy payment methods which are:

Debit card for small investments.

Wire transfer for large investments. 

Bank account for both.

Coinbase is exceptionally good in protecting customers’ money by having the insurance policy covering funds stored online (2%). The remaining 98% are safely stored in cold rooms.

The platform has an easy to navigate and intuitive interface for beginners and has advanced trading options.

Also Read: Lowest Fee Crypto Exchange

Kraken Exchange

Kraken is our second favorite Crypto Exchange in USA. It offers a great balance of everything from low rates, great support, and a higher-ranking trading platform. It quickly became very popular for those looking for an alternative to Coinbase.

Key to Kraken’s continuity is its extraordinary high-level security system, thanks to its founder’s experience in cybersecurity.

Here, not only do you need to pass regular two-factor authentication to access your account, but you also need a special Kraken “Master Key” for limited account actions and a global configuration lockout as the last row of defense against a change of the unknown-party.

Thanks to this effort, Kraken was never successfully attacked by hackers. The free of clutter dashboard full of colorful illustrations and a calming color palette suggests the seamless user experience at Kraken.

You are immediately asked for your experience level and based on this you will be redirected to an information page optimized for your level.

This US-based exchange is a favorite among institutional investors and experienced traders interested in margin trading (up to 5x leverage), OTC trading, futures, and automated trading.

Despite negative reviews in the past, recent improvements in handling customer inquiries have praised Kraken for the responsiveness and intuition of its support team.

Gemini Exchange

Winklevoss brothers founded the Gemini exchange in 2014. This exchange is among one of the crypto exchanges in USA. Gemini positions itself as a platform for institutional investors and private operators.

Since the exchange is designed for large players, it meets all cybersecurity and capital reserve requirements. New York State Department of Financial Services (NYDFS) also regulated the Gemini exchange, which adds additional points to the credibility of the exchange.

To create such a secure business environment, Gemini collects a lot of private information. This fact may discourage cryptocurrency newbies. There are also a limited number of trading pairs available on the exchange. 

Gemini is an international exchange and available to customers in a total of 49 states in the United States. Washington DC, Australia, Puerto Rico, Hong Kong, Canada, South Korea, Singapore, and the UK.

BTC, ETH, USD, LTC, BCH, ZEC, GUSD can be purchased in most states.

Binance Exchange

Binance quickly grew to become one of the world’s largest cryptocurrency exchanges, and for good reason! The company moved from China to Japan before settling permanently on the island of Malta.

Malta is known as the first country to offer a formal crypto regulatory framework, called the Virtual Financial Assets Act (VFA).

Binance was available to US citizens until September 2019, when it surrenders to pressure from US financial regulators and was forced to open a separate trading platform for the US under the name Binance.US.

The exchange has its native token, the Binance Token (BNB). The token is useful when paying transaction fees because Binance gives you the option to spend your BNB and cut the fees in half.

The best feature Binance has in store is its User Asset Fund (SAFU). The fund functions as a deposit of money to which Binance allocates 10% of its company commissions and saves them for future crashes. 

In May 2019 when Binance Exchange was hacked, they were able to repay the damage done to their customer from the money which was stored in Secure Asset for Users (SAFU).

CEX.io Exchange

CEX.io cryptocurrency exchange is UK based and is popular in the US. Its popularity is because of its high liquidity and is a licensed exchange. The exchange is currently available in 31 states in the US.

The platform allows you to deposit both fiat as well as cryptocurrencies, which are not offered by many exchanges.

The exchange offers cross-platform and margins trading with up to 10x leverage. However, we do not recommend these trading options for beginners as they require in-depth knowledge of the market. The main downside is that CEX.io charges high fees for the services.

CEX.io has recently started promoting staking, which means holding your coins and keeping them on the CEX.io platform. In this way, your coins do the work for you and increase in quantity with the platform’s monthly rewards.

But staking still seems untested and risky, so if you’re interested in staking certainly read a few reviews first. The CEX.io also includes a fully functional mobile app to manage your trade and orders on the go.

Coinmama Exchange

Coinmama is a bit different from other cryptocurrency exchanges in the manner that it only gives you the option to buy cryptocurrencies and not sells or trade them on the platform.This makes Coinmama an exclusive point of sale or broker.

The exchange is based in Israel and has successfully conquered the global market, including the United States. The exchange opens the way for the option of paying with credit and debit cards when purchasing cryptocurrency. 

Users buy crypto coins directly from the exchange. The platform immediately sends them to the digital wallet of the user.

However, be aware that Coinmama does not provide a wallet of its own. So we advise you to search online for a wallet that suits your needs.

There are three levels of account verification on Coinmama linked to a buy limit. If you plan to trade smaller amounts, you can use any form of ID to open an account, which gives you a daily limit of $ 5,000. This is ideal for people who take care to reveal their personal information.

Coinmama also has its drawbacks, such as brokerage fees which sometimes amount to 6%. It gets too expensive once the 5% commission is added for a credit or debit card purchase.

LocalBitcoins Exchange

LocalBitcoins works on the basis of connecting buyers and sellers as a guarantor and allows them to conduct peer-to-peer transactions.

The platform uses the user’s location to associate it with another neighbor, that is, it associates them with local trade, hence the name LocalBitcoins. 

A user can be approved based on their reputation and public history records. From these records, you can review past activities and transactions related to that account.

The platform is considering adding a compulsory KYC check, but for now, it is not necessary to do so unless the prospective buyer or seller requests it.

The exchange’s convenience lies in the flexibility of the merchants since they accept all types of payment methods. In case you cannot find an exchange where you can buy Bitcoins with whatever payment method you choose then LocalBitcoins may be the right place to do so. 

A tip, however, is always better to go with cash deposits or bank transfers, as these methods tend to have greater exchange rates.

Conclusion

Crypto exchanges in USA mentioned above are just some of the competitors in the expanding cryptocurrency market in the United States. But so far we have chosen them based on their performance and customer trust. 

Local consumer and Federal laws regulate the trade and promotion of United States Tokens. They disallow misleading information, fraud advertisement, and fake news.

If a company breaks these laws, it will be fined 2-3 times the amount of the damages. And sometimes the company executives risk even the time of imprisonment.

The rules set by each state can reduce the risk of fraud and offer investors investment protection guarantees.

In US trading and holding, Bitcoin is taxable. The Internal Revenue Service (IRS) has stated that Bitcoin should be treated as an impalpable property or asset, which means that the general tax principles applicable to real estate transactions now also apply to virtual currency transactions.

There will be a tax on Bitcoin transactions if you mine them for yourself or bought them from someone.

There is also a tax on Bitcoin if you sold it to someone else, or you use them yourself to buy food items in the supermarket.

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