The United States (USA) is the most progressive country when it comes to the development of infrastructure around Bitcoin and digital assets more broadly. Since the booming of the industry in 2017, there are now many safe and regulated cryptocurrency exchanges in the USA for customers to select from.
This article is intended to be a guide for new users looking to compare key features of the top cryptocurrency exchanges in the United States.
Buying Crypto became legal in the USA in 2013 when the US Treasury listed Bitcoin as an asset class. Shortly after this, the Commodity Futures Trading Commission (CFTC) then clarified the classification of Bitcoin as a commodity.
This ultimately means that Crypto gets taxed the same way as stocks like Tesla or Facebook by the IRS.
The table below provides a quick high level overview of the three best crypto exchanges in the USA.
Coinbase is the largest cryptocurrency exchange around the world with the best web app and iOS/Android application to buy Bitcoin and other cryptocurrencies with.
Based in San Francisco, Coinbase have had a long standing reputation amongst the community due to their high regulatory standards.
The Coinbase and Coinbase Pro platforms are both developed by the same company, however are built for different user types.
The familiar Coinbase user interface you see above was developed for normal everyday traders and investors who are looking for an easy way to trade crypto. The Coinbase Pro app on the other hand is built for more high-net worth and institutional investors looking to trade millions of dollars.
Read our eToro vs Coinbase review if you want to compare Coinbase against another leading exchange.
The fees to trade on the Coinbase app are 0.5% per buy or sell if you deposit US Dollars via Bank Transfer. If you trade directly with Coinbase using a Debit Card or Credit Card, you will be charges fees as high as 4%.
Fees on Coinbase Pro are 0.1% per transaction, which becomes cheaper depending on your volume over 30 days. You can see more about Coinbase Pro's fee schedule here.
Read our full Coinbase Fees Review to get more information about all of their charges.
Coinbase is without doubt the safest and most trusted exchange in the USA. They are the only cryptocurrency exchange that are publicly listed on the US Stock Market, which means they adhere to the highest of Securities Laws standards.
The Coinbase ecosystem is the best and easiest to use for both retail and sophisticated investors in the USA. They are the gold standard in terms of crypto exchange features and are the best-in-class when it comes to customer funds security.
Coinbase also offer a wide variety of deposit methods which include Bank Transfers and PayPal. You can sign up with this link and get $10 free Bitcoin when you deposit and trade $100.
FTX US is the licensed US exchange derivative of popular global cryptocurrency exchange FTX.com. Their platform is an institutional-grade crypto exchange for US investors to trade with fees as low as 0.02%.
Yes, FTX US is a regulated crypto trading platform that is based in Miami, United States. Traders in the United States must visit the ftx.us website and not the ftx.com website, because the international exchange is not legal to use for US citizens.
Buying cryptocurrency on the FTX US exchange is easy and can be done in the following 5 steps.
The FTX US trading fees are the most competitive in the industry and start at 0.02%. You can get further discounted trading fees if you hold the FTT token (exchange token).
Read our extended FTX Fees Review for more information.
Founded in 2011, Kraken Crypto is one of the oldest and most trusted exchanges based in San Francisco , United States. Kraken holds one of the highest regulatory standards in the country and is generally a good alternative option to Coinbase for sophisticated traders and institutional crypto investors.
One of the key reasons why Kraken vs Coinbase is a viable alternative is due to their lower trading fees. As at time of writing, the fee schedule for a trade on Kraken starts at 0.25% - making it a cheaper alternative to both Coinbase and Coinbase Pro.
The Robinhood Crypto app allows investors to buy and sell Bitcoin, Ethereum, Dogecoin and 10 other digital assets with their user friendly platform. There are also no trading fees on the Robinhood Crypto platform, which means all of your trades are commission-free.
The big problem with Robinhood Crypto is that they do not let investors withdraw their cryptocurrency from their platform onto another like Coinbase.
This means that when you are buying Bitcoin on Robinhood Crypto, you are actually buying a contract that represents the price of Bitcoin, not real Bitcoin.
Although the fees on the Robinhood Crypto trading application are 'free', there are some hidden costs. The first is that the spreads to buy Crypto on their platform are very wide. This means that buying Bitcoin or Ethereum on their exchange may be more expensive that Coinbase or Gemini.
The second major fee, or detriment to the user is the fact that Robinhood monetizes their platform by selling retail investor data to hedge funds.
For more information, be sure to check out our full Robinhood Crypto Review.
The latest Bitcoin and cryptocurrency news from around the world.