11 Best Crypto Exchanges in 2023

Navigating the world of cryptocurrencies often starts with finding the best crypto exchanges.

These are platforms where you can buy and sell cryptocurrencies using real money. Crypto exchanges are top-rated nowadays, as they offer many profit opportunities.

However, choosing the right one can seem daunting with hundreds of platforms available. This guide will comprehensively review the top 11 crypto exchanges in 2023. We’ve reviewed them in this article and highlighted their advantages and disadvantages. Learn why Cash App is our top choice and other alternatives to try.

>> Cash App: Best Crypto Exchange >>

Best Crypto Exchanges: First Look

Cash App - Best Crypto Exchanges Overall
Bisq - Best for Open-Source Crypto Platform
eToro - Best for Social Trading
Coinbase - Best for Beginners
Gemini - Best for Active Traders
Crypto.com - Best for Mobile Trading
Kraken - Best for Seasoned Traders
Public.com - Best for Commission-Free Trading
Robinhood - Best User-Friendly Interface
TradeStation - Best Professional Trading Tools
KuCoin - Best for Rewards & Benefits

1. Cash App - Best Crypto Exchange Overall

Pros

Easy navigation
Offers quick withdrawals
Supports mobile payments
Fast Bitcoin transfers
Withdraw Bitcoin to external wallets

Cons

Doesn’t offer insurance coverage from the FDIC
Platform usage is mainly limited to the US and UK

Overview

Cash App is a mobile banking app that lets users send, bank, invest, and trade Bitcoin. It was launched in 2013 by Block, Inc. (formerly Square, Inc.), and it’s among the top cryptocurrency exchanges and trading platforms.

Cash App allows users to make peer-to-peer payments and invest in stocks, ETFs, and Bitcoin. It also uses the Bitcoin Lightning Network to enable fast and cheap transfers for the best Bitcoin exchanges.

Why We Chose Cash App

We chose Cash App because it makes it simple to handle group expenses. You can split bills and get reimbursed by your friends with ease. Cash App isn’t just a crypto trading platform. It also lets you invest in stocks paying no commission fees. You can manage your money without switching between cash and payment apps.

Fees

As one of the best crypto trading platforms, Cash App offers instant transfers (from 0.50% to 1.75% with a $0.25 minimum) and standard transfers that take one to three business days.

Cash App rarely charges fees for sending or receiving $100. There are exceptions for credit card transfers or instant cash withdrawals and for the best Bitcoin exchanges.

Tradable Coins

Cash App only supports Bitcoin.

Summary

Cash App is the best trading platforms for crypto with user-friendly interfaces that provide an easy way to access cryptocurrency and the best Bitcoin exchanges. Its convenience, quick price locks, and external wallet withdrawals suit beginners and casual traders.

>> Get Started with CashApp >>

2. Bisq - Best Open-Source Crypto Platform

Pros

Open source decentralized exchange
Anonymous trades with no KYC needed
Available globally
Low transaction fees
50+ payment methods

Cons

Not designed for active crypto trading
Mostly useful for low-volume trade

Overview

Bisq, previously known as Bitsquare, is a decentralized exchange that creates a peer-to-peer network for trading cryptocurrencies. Built on open-source software, Bisq enables anonymous crypto trades without requiring users to divulge their identity.

Why We Chose Bisq

Bisq is the epitome of a decentralized exchange. As an open-source platform, it ensures transparency and user control. It also enables anonymous trades, eliminating the need for traditional KYC procedures.

Fees

Bisq adopts a dynamic fee model, charging between 0.10% to 0.70% per transaction. The final fee depends on the type of transaction and the specific cryptocurrency being traded.

Tradable Coins

Bisq supports trading in four primary tokens, ensuring a decent diversity in terms of cryptocurrency options.

Summary

As a decentralized exchange, Bisq provides a secure and private space for users who prioritize these features. Its commitment to anonymity and transparency makes it a unique player in the world of crypto exchanges.

>> Get Started with Bisq >>

3. eToro - Best for Social Trading

Pros:

Social and copy trading
Allows stock and ETF trading with no commission
30+ cryptocurrencies
Usable in many countries
Transparent information on the website

Cons

A low number of cryptocurrencies compared to other exchanges
Limited ETF options

Overview

Launched in 2007, eToro has made its mark as a multi-asset investment platform. It offers social trading features that allow users to learn and replicate the strategies of top traders.

Why We Chose eToro

eToro stands out for its innovative approach to trading. Its social investing platform allows users to learn from seasoned traders, providing a unique blend of learning and investment opportunities.

Fees

eToro's fee structure is fairly simple. It imposes a 1% fee when you buy and sell digital currencies. However, the platform doesn't charge any commissions for stocks and ETF trades.

Tradable Coins

eToro supports over 30 different digital currencies, providing a diverse range of options for investors.

Summary

eToro's social trading features, diverse cryptocurrency selection, and global presence make it an excellent choice for novice and experienced investors. Its unique approach to trading allows users to learn from and copy the strategies of successful traders.

4. Coinbase - Best for Beginners

Pros

Beginner-friendly trade interface
Options for advanced users
150+ cryptocurrencies
High liquidity
Offers FDIC-insured accounts for funds

Cons

Customer service isn’t great
No control over private keys

Overview

Coinbase is a crypto exchange that was founded in 2012. It provides a free wallet service and supports over 150 cryptocurrencies for trading. It also made history by becoming the first crypto exchange to list on the NASDAQ stock exchange in 2021.

The exchange keeps US dollars for customers in bank accounts that are insured by the FDIC to avoid the risk of fraud. Coinbase also has various options to withdraw funds (including ACH transactions).

There are options to store your funds in servers with private keys. The user rating of Coinbase is mixed, with many users complaining about its poor customer service and the occasional sudden account closures. Despite these drawbacks, Coinbase is a good option for crypto beginners.

Why We Chose Coinbase

Coinbase has a simple user interface that resembles a consumer banking app. That makes it a perfect default platform for anyone who wants to buy crypto for the first time.

However, experienced traders can choose Coinbase Pro for advanced features. The extra features of a free wallet, storage, and clearing options complete our reasons for adding Coinbase to the list.

Fees

Coinbase’s fee structure as the best Bitcoin trading platform depends on various factors, such as spreads, payment methods, order size, and market conditions. Its fee for buying and selling cryptocurrencies is around 0.5%, but it can change according to market fluctuations.

Coinbase, one of the best crypto exchanges and trading platforms, also charges fees for transactions on external blockchain networks.

Tradable Coins

Over 250 cryptocurrencies for trading.

Summary

Coinbase, the best crypto exchange platform, provides a complete solution that suits most investment objectives.

As one of the top crypto exchanges and trading platforms, it’s renowned for its rich educational resources, a large variety of supported cryptocurrencies, and a user-friendly interface.

5. Gemini - Best for Active Traders

Pros:

Regulated and secure platform
User-friendly interface
Supports over 90 coins
Offers various products
Provides educational content

Cons:

Limited payment options
High fees for some transactions

Overview

Gemini is a U.S.-based crypto exchange that offers a wide range of crypto trading and investment options. Its focus on user security and compliance makes it a trustworthy option for active traders.

Why We Chose Gemini

Gemini's commitment to security and user-friendly interface make it a reliable choice for newbies and seasoned traders alike. Its advanced trading tools and transparent fee structure make it an ideal platform for active traders.

Fees

Gemini's trading fees can reach up to 1.49% depending on the trading platform used. However, it offers a competitive fee structure for high-volume traders that favors active trading.

Tradable Coins

Gemini supports trading in over 100 cryptocurrencies, providing a vast selection for investors.

Summary

Gemini is known for its robust security measures, user-friendly interface, and transparent fee structure. Its wide range of supported cryptocurrencies and commitment to user security make it a solid choice for active traders.

6. Crypto.com - Best for Mobile Trading

Pros:

250+ cryptocurrencies
Low fees for high volumes
Cashback rewards (with Crypto Visa Card)
Highly secure
Well-designed trading app for mobile phones

Cons

High costs for low-volume traders
Relatively poor customer support

Overview

Crypto.com is a versatile crypto trading platform with a wide range of products and features. It offers a non-custodial DeFi wallet, prepaid Visa cards for crypto spending, and margin trading options.

Why We Chose Crypto.com

Crypto.com stands out for its low fees, excellent mobile app, impressive security features, and wide range of supported cryptocurrencies. Its integrated auto-trading bots and user-friendly interface make it a top choice for automated trading.

Fees

Crypto.com's maker/taker fee schedule ranges from 0.05% to 0%, making it one of the most affordable among all the exchanges currently operating in the U.S. Users with a 30-day trading volume of under $1000 don't have to pay any trading fees at all.

Tradable Coins

Crypto.com supports trading in over 275 digital currencies, providing a diverse range of options for investors.

Summary

Crypto.com offers an extensive range of digital assets, low fees, and advanced security measures. Its comprehensive digital ecosystem and well-designed mobile app provide a seamless trading experience for crypto investors.

7. Kraken - Best for Seasoned Traders

Pros

Good reputation
Has advanced trading options with margins and futures
Has options for low trading fees
120+ cryptocurrencies
High liquidity

Cons

Not beginner-friendly
High instant buy options in the Pro version

Overview

Started in 2011, Kraken is a well-established crypto exchange known for its advanced trading options with margins and futures. Known for its reputation and security, Kraken has become a popular choice among seasoned traders.

Why We Chose Kraken

Kraken is known for its low fees, high-security standards, and a wide selection of digital assets. Its robust security tools have enabled the exchange to operate seamlessly since its inception, making it an ideal choice for security-conscious traders.

Fees

Kraken's fees start at 0.26% for takers and 0.16% for makers. These fees decrease for higher-volume traders, reaching as low as 0% for those with over $10 million in 30-day trade volume.

Tradable Coins

Kraken supports trading in over 150 digital currencies, providing a vast selection for investors.

Summary

Kraken offers a secure digital ecosystem for trading crypto. Its robust security measures, low fees, and wide selection of cryptocurrencies make it a top choice for seasoned traders.

8. Public.com - Best for Commision-free Trading

Pros:

Regulated by the SEC and FINRA
Offers volatility reminders on cryptocurrencies
Social trading
Zero commissions on stock trades

Cons:

Limited technical charts and research tools

Overview

Public.com is a beginner-friendly investment platform that combines accessible, affordable investing with a focus on financial literacy. It provides users with articles on a wide variety of investment topics, market updates, and a daily live show discussing market headlines.

Why We Chose Public.com

Public.com stands out for its commission-free trading, extensive educational content, and user-friendly platform. Its transparency in disclosing potential risks and rewards associated with investing helps users make well-informed decisions.

Fees

Public.com doesn't charge commissions for trading stocks or funds, and it has no account minimums. You only pay 0.30% on deposits and withdrawals.

Tradable Coins

Public.com offers trading options for over 25 different coins, providing a diverse range of options for investors.

Summary

Public.com is a platform that prioritizes accessible investing and financial education. Its transparency in the financial services industry and prioritization of its investor community's well-being make it an excellent choice for novice and experienced investors alike.

9. Robinhood - Best User-Friendly Interface

Pros:

Commission-free trading model
Intuitive and streamlined interface
Heavily regulated by the US SEC
Variety of investment options
Long trading hours

Cons

Lacks comprehensive educational content
No support for mutual funds

Overview

Robinhood is a popular trading app known for its user-friendly interface and commission-free trades. It offers users the ability to trade stocks, ETFs, options, and cryptocurrencies.

Why We Chose Robinhood

Robinhood's user-friendly interface and commission-free trades make it a popular choice among beginners. Its platform is straightforward and easy to navigate, making it ideal for those new to investing.

Fees

Robinhood doesn't charge commissions for trades, making it a cost-effective choice for many investors.

Tradable Coins

Robinhood allows users to trade in seven different cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin.

Summary

Robinhood offers a user-friendly platform for investing in stocks, ETFs, and cryptocurrencies. Its commission-free trades and easy-to-use interface make it a popular choice among beginners in the investing world.

10. TradeStation - Best Professional Trading Tools

Pros:

Offers a wealth of research resources
Commission-free trades
Advanced trading tools and features
Active trader community

Cons:

Confusing pricing pans
No transaction-fee-free mutual funds

Overview

TradeStation is a leading online brokerage offering a robust trading platform for active traders and investors. It provides professional-grade tools and technology, including advanced charting, market monitoring, and analysis tools.

Why We Chose TradeStation

TradeStation's advanced trading tools and technology make it an excellent choice for active traders and investors. Its platform provides the tools and resources to help traders make informed investment decisions.

Fees

TradeStation's fee structure varies depending on the type of trade and the trader's level of activity. It offers competitive pricing for active traders.

Tradable Coins

TradeStation supports trading in multiple cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

Summary

TradeStation offers a robust trading platform for active traders and investors. Its advanced trading tools and technology make it an excellent choice for those looking to take their trading to the next level.

11. KuCoin - Best for Rewards and Benefits

Pros:

Low trading fees
Wide selection of cryptocurrencies
Rewards Hub for earning crypto
Availability of trading bots
VIP program and discounts

Cons:

Limited fiat currency support
Regulatory uncertainty

Overview

KuCoin is a popular cryptocurrency exchange that offers a wide range of trading options. It stands out for its margin trading, futures trading, and peer-to-peer trading options.

Why We Chose KuCoin

KuCoin offers a diverse range of trading options, an array of coins, and competitive fees. Its standout features include earning interest in crypto holdings and engaging in margin and futures trading.

Fees

KuCoin's fee structure is highly competitive, with minimal trading fees and free cryptocurrency deposits.

Tradable Coins

KuCoin supports trading in over 700 cryptocurrencies, providing a vast selection for investors.

Summary

KuCoin offers diverse trading options, a wide array of coins, and competitive fees. Its standout features include earning interest in crypto holdings and engaging in margin and futures trading.

What Is a Crypto Exchange?

A crypto exchange is a platform that allows users to buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, and more. Crypto exchanges can also offer other services such as lending, staking, and earning rewards on idle tokens.

There are many types of crypto exchanges, such as centralized exchanges, decentralized exchanges, peer-to-peer exchanges, and hybrid exchanges. Each type has its own advantages and disadvantages in terms of security, liquidity, fees, and user experience.

How Do the Best Crypto Exchanges Work?

Crypto exchanges work by matching buyers and sellers of crypto assets, and facilitating the exchange of fiat currency (such as US dollars) or other cryptocurrencies for the desired crypto asset.

Crypto exchanges also provide other services such as storing your crypto in a wallet, earning rewards on your crypto, and accessing decentralized applications.

How to Open a Crypto Exchange Account?

To open a crypto exchange account, you need to follow these steps:

Choose a crypto exchange that suits your needs and preferences: You can compare different crypto exchanges based on their features, fees, security, and reputation.
Register for an account on the crypto exchange website or app: You will need to provide some personal information such as your name, email address, phone number, and password.
Verify your identity and address: You will need to upload some documents such as your ID card, passport, or driver’s license, and a proof of address such as a bank statement or utility bill. This is to comply with the anti-money laundering (AML) and know your customer (KYC) regulations.
Fund your account: You can deposit fiat currency or crypto to your account using various methods such as bank transfer, credit card, debit card, or PayPal.
Start trading: You can buy or sell crypto on the exchange platform using different order types such as market order, limit order, or stop order. You can also use advanced tools such as margin trading, futures trading, or trading bots.

Who Uses Cryptocurrency Exchange Software?

Cryptocurrency exchange software can be used by various types of users, such as:

Individuals

Individuals who want to invest in cryptocurrencies, diversify their portfolio, or earn rewards can use cryptocurrency exchange software to buy and sell digital assets.

They can also use cryptocurrency exchange software to store their crypto in a secure wallet, explore decentralized finance (DeFi), and buy and sell non-fungible tokens (NFTs).

Professional Traders

Professional traders who want to trade cryptocurrencies across multiple exchanges, use advanced tools and strategies, or automate their trading can use cryptocurrency exchange software to execute their orders.

They can also use cryptocurrency exchange software to access sophisticated charting capabilities, real-time order books, and deep liquidity across hundreds of markets.

Businesses

Businesses who want to accept cryptocurrencies as a payment method, offer crypto services to their customers, or integrate crypto into their existing systems can use cryptocurrency exchange software to manage their transactions.

They can also use cryptocurrency exchange software to provide crypto funding, staking, lending, borrowing, and other financial solutions.

Types of the Best Crypto Exchanges

The three different types of the best crypto exchanges are:

Decentralized Exchanges (DEX)

These are exchanges that don’t rely on a central authority to facilitate trades between users. Instead, they use smart contracts and peer-to-peer networks to execute transactions directly on the blockchain.

DEXs offer advantages such as anonymity, security, and lower fees, as they don’t store users’ funds or personal information. They also have drawbacks such as lower liquidity, slower speed, and limited functionality.

Hybrid Exchanges

These are exchanges that combine the features of both CEXs and DEXs. They aim to provide the best of both worlds by offering high liquidity, fast speed, and advanced tools from CEXs, as well as the security, privacy, and autonomy from DEXs.

They usually operate on a dual-layer architecture, where one layer handles the order matching and the other layer executes the transactions on the blockchain.

Centralized Exchanges (CEX)

These are exchanges that are controlled by a single entity that acts as an intermediary between buyers and sellers. They provide a platform where users can trade cryptocurrencies for fiat currencies or other cryptocurrencies.

CEXs offer benefits such as high liquidity, fast speed, and user-friendly interfaces. They also pose risks such as hacking, fraud, and regulation, as they store users’ funds and personal information on their servers.

The Best Crypto Exchanges Common Features

Here are some features that most crypto exchanges offer:

Fiat Support

This feature enables users to deposit and withdraw fiat currencies, such as US dollars, euros, or yen, to and from their crypto exchange accounts. Fiat support can make it easier for users to enter and exit the crypto market, as well as to diversify their portfolio.

However, not all crypto exchanges support fiat currencies, and some may have limited options or higher fees for fiat transactions.

Available Coins

This feature refers to the number and variety of cryptocurrencies and other digital assets that users can trade on a crypto exchange. Some crypto exchanges offer hundreds of coins, while others focus on a few popular ones.

The coins can affect a user's portfolio's liquidity, diversity, and potential returns. Users should look for crypto exchanges that support the coins they’re interested in trading.

Cold Storage

This feature refers to storing cryptocurrencies offline, in devices or locations that aren’t connected to the internet. Cold storage can enhance the security and safety of a user’s funds, reducing the risk of hacking, theft, or loss.

Cold storage can also make it harder or slower to access or transfer funds when needed. Some crypto exchanges offer cold storage services for their users, while others require users to manage their wallets.

Security

This feature refers to the measures and protocols a crypto exchange implements to protect its platform and its users’ funds and data from cyberattacks, fraud, or other threats. Security can include encryption, authentication, verification, backup, audit, compliance, and insurance.

Users should look for crypto exchanges with a good reputation and track record of security, as well as transparent and responsive customer support.

Trading Volume

This feature refers to the amount and frequency of transactions on a crypto exchange. Trading volume can indicate the liquidity, popularity, and stability of a crypto exchange and the demand and supply of certain coins.

Users should look for crypto exchanges with high trading volumes, offering better prices, faster execution, and lower slippage.

Educational Resources

This feature refers to the information and guidance that a crypto exchange provides to its users to help them learn about the crypto market, the platform features, and the best practices for trading. Educational resources include articles, videos, podcasts, webinars, courses, newsletters, blogs, forums, and social media.

Users should look for crypto exchanges that have rich and updated educational resources, as they can help them improve their knowledge and skills.

Accessibility

This feature refers to the ease and convenience of using a crypto exchange from different devices, locations, and languages. Accessibility can include web-based platforms, desktop applications, mobile apps, on-premise solutions, APIs, SDKs, plugins, widgets, and integrations.

Users should look for crypto exchanges that have high accessibility, as they can offer more flexibility and functionality.

Coin Tracking

This feature refers to the ability of a crypto exchange to monitor and report the performance and activity of a user’s portfolio. Coin tracking can include portfolio management tools such as charts, graphs, statistics, indicators, alerts, notifications, and reports.

Users should look for crypto exchanges that have comprehensive coin tracking features, as they can help them analyze their trades and optimize their strategies.

Payment Methods

This feature refers to the options and methods that a user can use to fund their crypto exchange account or withdraw their funds. Payment methods include bank transfers, credit cards, debit cards, PayPal, Skrill, Neteller, and other online payment services.

Users should look for crypto exchanges that have multiple payment methods, as they can offer more convenience and lower fees.

The Best Crypto Exchange Fees

Here are some fees that you may encounter when using crypto exchanges:

Conversion Fees

These are fees that are charged when you convert one currency to another, such as fiat to crypto or crypto to crypto. Conversion fees can vary depending on the exchange, the currency pair, the market conditions, and the type of order.

Deposit and Withdrawal Fees

These are fees that are charged when you deposit or withdraw funds to or from your crypto exchange account. Deposit and withdrawal fees can depend on the type of currency, the payment method, the network congestion, and the exchange policy.

Trading Fees

These are fees that are charged when you execute a trade on a crypto exchange. Trading fees can differ based on the type of order, the trading volume, the exchange token, and the exchange tier.

Some exchanges may offer lower trading fees to market makers (who place limit orders) or high-volume traders (who trade more than a certain amount in a given period). Some may also offer discounts for using their exchange tokens (such as Binance Coin or Bibox Token) to pay for trading fees.

Factors to Consider When Choosing the Best Crypto Exchanges

The best Crypto exchanges can vary in terms of their features, services, and quality, so it’s important to do some research before choosing one. Here are some factors that you may want to consider when choosing a crypto exchange:

Reputation

This factor refers to the trustworthiness, reliability, and popularity of a crypto exchange among its users and the crypto community. Reputation can be influenced by several factors such as user reviews, ratings, feedback, media coverage, awards, partnerships, and regulatory compliance.

Choose a crypto exchange that has an excellent reputation and a proven track record of providing satisfactory service and security.

Fees

This factor refers to the amount of money that a crypto exchange charges for its transactions and services. Fees can include conversion fees, deposit and withdrawal fees, trading fees, and other hidden fees.

Fees can vary depending on the exchange, the currency pair, the payment method, the trading volume, and the type of order. Choose a crypto exchange that has transparent and reasonable fees that suit your budget and trading style.

Payment Methods

This factor refers to the options and methods that you can use to fund your crypto exchange account or withdraw your funds.

Payment methods can include bank transfers, credit cards, debit cards, PayPal, Skrill, Neteller, and other online payment services. Payment methods can affect the speed, convenience, and cost of your transactions.

Choose a crypto exchange that supports multiple payment methods accessible in your region.

Security

This factor refers to the measures and protocols a crypto exchange implements to protect its platform and its users’ funds and data from cyberattacks, fraud, or other threats. Security can include encryption, authentication, verification, backup, audit, compliance, and insurance.

Security is one of the most important factors to consider when choosing a crypto exchange, as you don’t want to lose your money or personal information because of hacking or theft.

Choose a crypto exchange that has a high level of security and offers features such as cold storage (offline storage), two-factor authentication (2FA), anti-phishing codes (codes sent via email or SMS), and multi-signature wallets (wallets that require multiple keys to access).

Supported Currencies

This factor refers to the number and variety of cryptocurrencies and other digital assets you can trade on a crypto exchange. Some crypto exchanges offer hundreds of coins, while others focus on a few popular ones.

The supported currencies can affect the liquidity (availability of buyers and sellers), diversity (range of options), and potential returns (profitability) of your portfolio. Choose a crypto exchange that supports the coins that you’re interested in trading or investing in.

Customer Service

This factor refers to the quality and availability of support that a crypto exchange provides to its users in case of any issues or inquiries. Customer service can include live chat, email, phone, social media, FAQs, and help center.

Customer service can affect your satisfaction, trust, and loyalty towards a crypto exchange. Choose a crypto exchange that has responsive, friendly, and helpful customer service.

Insurance

This factor refers to the coverage that a crypto exchange offers its users in case of losses or damages due to unforeseen events or circumstances. Insurance can include FDIC insurance (insurance for fiat deposits up to $250,000), SAFU fund (secure asset fund for users), or private insurance (insurance from third-party providers).

Insurance can provide peace of mind, security, and protection when using a crypto exchange. Choose a crypto exchange that has adequate insurance for your funds.

Crypto Wallet vs Exchange

A crypto wallet is a software program that allows you to store, receive, and send crypto assets, such as Bitcoin, Ethereum, or Dogecoin. A crypto wallet gives you full control over your private keys, which are the secret codes that prove your ownership of your crypto assets. A crypto wallet can be a mobile app, a desktop program, a web browser extension, or a hardware device.

An exchange is a platform that allows you to buy, sell, and trade crypto assets with other users or with fiat currencies, such as US dollars or euros. An exchange can be centralized or decentralized. A centralized exchange is a company that acts as a middleman between buyers and sellers and usually provides custodial services for your crypto assets.

This means that the exchange holds your private keys and manages your account for you. A decentralized exchange is a peer-to-peer network that connects buyers and sellers directly, with no intermediaries or custodians.

The main difference between a crypto wallet and an exchange is that the wallet’s main purpose is to safely keep your crypto assets, while the exchange’s main purpose is to facilitate trading and exchanging your crypto assets. When you use a crypto wallet, you’re responsible for your own security and privacy. When you use an exchange, you’re trusting the exchange to protect your funds and data.

Pros and Cons of Using a Crypto Wallet

Pros:

You have full ownership and access to your crypto assets anytime
You can choose from various wallets that suit your needs and preferences
You can enhance your security by using encryption, backup, recovery phrases, and multi-signature features
You can enjoy more privacy by using anonymous or pseudonymous wallets

Cons:

You must take care of your private keys and recovery phrases, and avoid losing them or exposing them to hackers or scammers
You must update your wallet software regularly and follow best practices to avoid malware or phishing attacks
Pros and Cons of Using a Crypto Exchange

Pros:

You can easily buy, sell, and trade crypto assets with other users or with fiat currencies
You can benefit from the exchange market's liquidity, volume, and price discovery
You can access customer support and dispute resolution services from the exchange
You can use advanced trading tools and features, such as margin trading, futures contracts, or options

Cons:

Trust the exchange with your private keys and personal information, and hope that they don’t get hacked, go bankrupt, or run away with your funds
Comply with the exchange’s rules and regulations, which may limit your freedom and privacy

Best Crypto Exchanges: FAQs

Here, we answer a few frequently asked questions about the best crypto exchanges.

Which Exchange Is Best for Buying Cryptocurrency?

The best exchange for buying cryptocurrency is Cash App, which is a mobile payment service that allows users to buy and sell Bitcoin with US dollars. Cash App has some advantages, such as:

Easy and fast transactions with a linked debit card or bank account
No fees for buying or selling Bitcoin
Ability to withdraw Bitcoin to a personal wallet
Access to educational content and market insights on Bitcoin

How Do I Open a Crypto Exchange Account?

The process of opening a crypto exchange account may vary depending on the platform you choose, but it involves the following steps:

Register with your email address and create a password.
Verify your identity by providing personal information and documents, such as your name, date of birth, address, and ID card or passport.
Deposit funds into your account using your preferred payment method, such as a bank transfer, credit card, or crypto wallet.
Start trading by selecting the crypto assets you want to buy or sell and placing your orders.

Which Exchange Offers the Most Crypto?

One exchange that offers a wide range of crypto assets is Bisq, which is a decentralized peer-to-peer exchange that allows users to trade Bitcoin and other cryptocurrencies with no intermediaries. Some features of Bisq are:

Supports over 90 coins, including Bitcoin, Ethereum, Litecoin, Monero, and more
No identity verification or registration is required
Open-source and transparent code and project strategy
Easy to use interface with a simple trading process

Should I Use Coinbase or Binance?

Coinbase and Binance are two of the most popular and well-known crypto exchanges in the world, but they have some differences that may affect your decision. Here are some pros and cons of each platform:

Coinbase:

Pros:

Regulated and licensed in the US and other countries
User-friendly and beginner-friendly platform with a simple design and intuitive features
Offers various products such as Coinbase Pro, Coinbase Earn, Coinbase Card, and Coinbase Wallet
Provides educational content and market insights to help users learn about crypto

Cons:

High fees for some transactions such as debit card purchases or withdrawals
Doesn’t support all coins or regions

Binance:

Pros:

Supports hundreds of coins including Bitcoin, Ethereum, Binance Coin, and many more
Low fees for trading, depositing, and withdrawing
Offers various products such as Binance Futures, Binance Earn, Binance Card, and Binance Smart Chain
Has a high liquidity and trading volume

Cons:

Not regulated or licensed in the US and some other countries
Complex and advanced platform that may be overwhelming for beginners

Which Crypto Exchange Does Not Report to the IRS?

The IRS requires US taxpayers to report their income from cryptocurrency transactions on their tax returns. However, not all crypto exchanges provide tax forms or information to their users or the IRS. One example of such an exchange is Bisq, a decentralized peer-to-peer exchange that doesn't collect any personal data or verify any identity from its users.

Therefore, Bisq doesn't report any transactions or activities to the IRS or any other authority.

How Do Cryptocurrency Exchanges Make Money?

Cryptocurrency exchanges make money by charging fees for their services, such as trading, depositing, withdrawing, and storing crypto assets. The fees may vary depending on the platform, the type of transaction, the payment method, the amount of trade, and the user's location.

Some exchanges may make money by offering other products or services, such as lending, staking, derivatives, cards, wallets, or education.

How Much Money Do You Need to Buy Crypto?

The amount of money you need to buy crypto depends on the price of the crypto asset you want to buy, the minimum order size of the exchange you use, and the fees charged by the exchange.

For example, if you want to buy Bitcoin on eToro, you need at least $10 to place an order, plus a 1% fee for the transaction. Therefore, you need at least $10.10 to buy Bitcoin on eToro.

However, if you want to buy Bitcoin on Coinbase, you need at least $2 to place an order, plus a variable fee depending on your payment method. Therefore, you need at least $2 plus the fee to buy Bitcoin on Coinbase.

What Is the Safest and Best Crypto Exchange?

The safest Crypto exchange is eToro, a regulated and licensed platform that offers trading in 30+ cryptocurrencies, as well as stocks and ETFs. Some benefits of eToro are:

Regulated and licensed by the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission (ASIC) in Australia.
User-friendly with streamlined trading view and portfolio management.
Social investing features that allow users to copy the trades of popular traders or be copied by others for rewards.
Provides educational content and market insights to help users understand the crypto market.

How Many Cryptocurrency Exchanges Are There?

There’s no exact number of cryptocurrency exchanges worldwide, as new ones may emerge or close. A website that tracks crypto market data has over 400 active crypto exchanges.

Final Word on Best Crypto Exchanges

Choosing the best crypto exchanges can be challenging. While our top choice is Cash App, choosing the best crypto exchange largely depends on your specific requirements, trading style, and investment goals.

Whether you’re a beginner or a seasoned trader, this guide summarizes the top crypto exchanges in 2023 to help you make an informed decision. Conducting thorough research and considering multiple factors is critical before choosing a crypto exchange.

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.