Best Crypto Exchanges in USA

Best Cryptocurrency Exchanges in the USA

We conducted an in-depth analysis of the 31 cryptocurrency platforms available to American traders to identify the top choices. Our evaluation considered key factors like SEC and FinCEN regulatory compliance, user interface design, fee transparency, supported cryptocurrencies, USD deposit options, and trading capabilities. Below is a summary of the five leading exchanges in the United States, based on our findings:

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1. Kraken

Kraken, headquartered in San Francisco, is the most trusted cryptocurrency exchange serving over 10 million users in the U.S. and across 180 countries. The platform handles $200 billion in quarterly trading volume, offering over 280 cryptocurrencies for spot trading and 100 futures contracts, with up to 5x leverage on select derivatives.

Kraken is committed to transparency, conducting regular external audits to verify that all user funds are held on a 1:1 basis and are accessible around the clock. Additionally, the platform offers a popular staking service, providing annual yields of up to 28% (APY) on 30 digital assets. Kraken Pro, designed for advanced traders and institutions, offers competitive spreads, robust liquidity, an OTC Desk, and high deposit limits.

• Fee Structure: Maker fees start at 0.01%, and taker fees at 0.02% for futures; spot trading fees are 0.1%.
• Available Assets: Over 280 spot markets and 100 futures contracts.
• Regulatory Compliance: Registered as a Money Services Business with FinCEN (Payward Ventures, Inc., MSB Registration No. 31000239561651).
• USD Funding Options: ACH Transfer, Debit Card, Credit Card, FedWire, Plaid, and Zelle.

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2. Uphold

Uphold, based in New York, is designed with beginner investors in mind, offering one of the most intuitive mobile trading experiences available. Our user testing highlights Uphold’s iOS and Android apps as the most user-friendly for those new to cryptocurrency investing. The platform supports over 260 digital assets, alongside four precious metals, making it a versatile option for investors.

Uphold distinguishes itself through its strong commitment to transparency and security. The platform provides audited proof-of-reserves, ensuring that all user assets are fully backed 1:1. This transparency, combined with its regulatory compliance, makes Uphold a reliable choice for American investors.

• Fee Structure: 1% trading fee and a 1% spread fee.
• Available Assets: Over 260 cryptocurrencies, 27 fiat currencies, and 4 precious metals.
• Regulatory Compliance: Regulated by FinCEN and holds multiple state-issued licenses.
• USD Funding Options: ACH, Bank Transfer, Credit Card, Debit Card, Google Pay, and Apple Pay.

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3. Robinhood

Robinhood is the top choice for investors looking to trade both cryptocurrencies and stocks on a single platform. Known for its commission-free trading, Robinhood offers over 35 crypto assets, including Bitcoin, Ethereum and Solana, alongside a wide range of stocks and ETFs. This makes it an excellent option for those who prefer managing all their investments in one place.

As an SEC-licensed company, Robinhood offers investors best-in-class security and us trusted by over 24 million users. However, users should be aware of the platform's hidden fees, particularly spreads that can reach up to 2%. Additionally, the selection of cryptocurrencies is limited to around 35, which may not satisfy more diverse crypto investors.

• Fee Structure: While trades are commission-free, spreads can be as high as 2%.
• Available Assets: 35+ cryptocurrencies, plus a comprehensive range of stocks and ETFs.
• Regulatory Compliance: Regulated by FINRA under license CRD#: 165998 & SEC#: 8-69188, and approved to operate in 53 states and territories.
• USD Funding Options: Bank Transfer, Debit Card, ACH, and more.

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4. Bybit

Bybit is the top choice for derivatives and futures contract traders in the USA, with a staggering daily trading volume exceeding $25 billion. Serving a global user base of 39 million, Bybit lists over 1,300 crypto assets, offering a vast selection for spot and futures markets with leverage options up to 100x. Its popularity among U.S. traders is due to its high liquidity, competitive fees, advanced trading tools and its speed to list new assets across multiple blockchains.

However, American investors should note that access to Bybit may require the use of a VPN due to regional restrictions. Despite this, its robust feature set, including staking, lending, and an NFT marketplace, positions Bybit as the leading platform for those focused on crypto derivatives in the U.S.

1. Fee Structure: 0.1% for spot trading, 0.02% maker or 0.055% taker fees for derivatives.
2. Available Assets: Over 1,300 crypto assets.
3. Regulatory Compliance: Accessible globally, though U.S. users may need a VPN for access.
4. USD Funding Options: Bank transfers, Google Pay, Apple Pay, Credit Card, Debit Cards and more.

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5. Coinbase

Coinbase is based in Delaware, and has become the largest American cryptocurrency exchange in the country, with over 110 million users. As a publicly traded company on NASDAQ, it offers a level of transparency and accountability that is rare in the crypto industry. Coinbase provides access to a wide range of cryptocurrencies, including Bitcoin, Ethereum, Solana, and more than 200 other assets, making it a go-to platform for many U.S. investors.

However, Coinbase is notorious for its egregious fee structure. Users face a 2% fee for deposits and withdrawals, a 1.49% trading fee, and an additional 1% spread, making it one of the most expensive options in the market. While the platform’s security, regulatory compliance, and extensive offerings are unmatched, these high fees are a significant drawback.

• Fee Structure: 2% for deposits and withdrawals, 1.49% trading fee, plus 1% spread.
• Available Assets: Over 200 cryptocurrencies.
• Regulatory Compliance: Fully regulated by FinCEN and the SEC as a NASDAQ-listed entity.
• USD Funding Options: Bank Transfer, Debit, and Credit Cards.

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Is Crypto Regulated in the USA?

Cryptocurrency regulation in the USA involves a mix of federal oversight and varied state laws. Federal agencies like the SEC, CFTC, IRS, OCC, and FinCEN regulate different aspects of digital assets, but a comprehensive national framework is still in development. Recent legislative efforts, such as the Responsible Financial Innovation Act and the Toomey Stablecoin Bill, aim to integrate digital assets more effectively into the financial system.

State-level regulations vary widely. States like Wyoming and Utah have enacted progressive laws to foster blockchain innovation, recognizing decentralized autonomous organizations (DAOs) and creating specialized financial institutions for digital assets. Conversely, some states have imposed stricter regulations, requiring money transmitter licenses and enforcing securities laws, as seen in actions against several blockchain companies.

As the 2024 election nears, crypto regulation has become central to the Kamala Harris vs. Trump campaign with over 40% of the population holding cryptocurrencies. Trump is generally seen as more pro-crypto, but the Democratic party, led by Harris and the Crypto for Harris campaign, has recently indicated a shift toward a more progressive approach to the industry. This change in stance offers some promise for the future of crypto regulation in the U.S.

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How Is Crypto Taxed in the United States? 

In the United States, the IRS classifies cryptocurrencies as property for tax purposes. Under IRS Notice 2014-21, any gains from crypto transactions are taxable. Taxpayers must report these gains or losses on their tax returns, with the tax rate dependent on the holding period: cryptocurrencies held for over a year are subject to capital gains tax, while those held for less than a year are taxed as ordinary income.

The IRS requires meticulous record-keeping for all crypto transactions, including details such as transaction dates, amounts, and the fair market value of the cryptocurrency at the time of each transaction. Since the 2017 tax reform, like-kind exchanges no longer apply to cryptocurrencies, making all such transactions taxable events.

As of January 2024, the Infrastructure Investment and Jobs Act mandates that digital asset brokers report transactions exceeding $10,000 to the IRS, underscoring the increased regulatory focus on cryptocurrency transactions and the critical need for compliance in the U.S. crypto market.

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How to Buy Bitcoin in the USA

For those new to cryptocurrency investment in the USA, buying Bitcoin is straightforward. Follow these steps to start your journey:

1. Choose an Exchange: Select a reputable American exchange like Coinbase or Kraken. Sign up and complete verification with your ID.
2. Deposit USD: Go to the deposit section, select USD, and fund your account via bank transfer, ACH, debit, or credit card.
3. Select Bitcoin: Find Bitcoin (BTC) in the trading section, and choose the USD/BTC trading pair. Decide between a market order or a limit order.
4. Make the Purchase: Enter the amount of Bitcoin or USD you wish to use. Review the order and execute the trade.

These steps guide you through the process of purchasing Bitcoin in the U.S., from setting up your account to completing your first trade.

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Bottom Line

In summary, choosing the right U.S. cryptocurrency exchange depends on your specific needs, whether you want low fees, a wide asset selection, or strong regulatory compliance. Platforms like Kraken, Uphold, Robinhood, Bybit, and Coinbase each offer strengths and weaknesses, giving investors the choice to find an exchange that suits their requirements.

As regulations evolve, especially with the 2024 Harris vs Trump election on the horizon, staying updated is essential for effectively navigating the U.S. crypto market.