Crypto exchanges are marketplaces where users can buy, sell and trade various different cryptocurrencies. While some exchanges have lower fees, there are other platforms that offer a better user experience or more advanced trading features.
Keep on reading to see some of the different exchanges US-based investors can use to buy Bitcoin and other cryptocurrencies.
Binance.US
Binance.US is the American counterpart to Binance, the world's largest cryptocurrency exchange by volume. Binance was founded by Changpeng Zhao (also known as "CZ") in 2017 but the platform stopped accepting U.S.-based users in 2019 due to regulatory concerns. This led to Binance launching Binance U.S., a version of the exchange that is fully compliant with U.S. regulations. The exchange was created in partnership with BAM Trading Services, a trading platform that is registered with the Financial Crimes Enforcement Network (FinCEN).
Whilst Binance has over 600 cryptocurrencies on its platform, its U.S.-based counterpart Binance.US has over 80 cryptocurrencies that are available to its users.Supported cryptocurrencies include Bitcoin, Ethereum, Solana, Ape Coin, Cardano, and more popular crypto assets. The benefits of this exchange include its low fees and user-friendly buy & sell options for users who want to buy cryptocurrency without trading. Binance.US's buy & sell feature lets users buy or sell cryptocurrency for a 0.5% fee which is lower than a lot of exchanges. The interface is also simpler and intended for users who are not too familiar with cryptocurrency.
The platform also has the standard spot trading feature as well as advanced trading options.Fees for spot trading are 0.1% which again are lower than a lot of competitors. Spot trading is different from buying and selling cryptocurrency, with spot trading you are placing buy and sell orders which will be executed once another user matches your transaction request. The buy/sell feature on the other hand is a simple, fixed exchange with the broker itself.
Binance.US also has a staking feature called Binance Earn (taken from its sister exchange Binance). Here users can earn additional tokens by staking their current holdings. These rewards are given out because staking helps to support Proof-of-Stake-based blockchains. Users can earn up to 6.5% annually by staking their tokens on Binance.US and the currently supported coins for staking are QTUM, VET, XTZ, ATOM, EOS, ONE, and ALGO.
Coinbase
Coinbase is one of the most well-known and popular crypto exchanges in the world. It's also the third-largest crypto exchange in the world by volume according to coinmarketcap. Coinbase was one of the first exchanges to provide a user-friendly interface for buying and selling crypto and supported coins include Bitcoin, Ethereum, Solana, XRP, Avalanche, Chainlink, and more.
Coinbase's user-friendly user interface is one of its biggest advantages, making it quick and easy for users to buy and sell cryptocurrency for cash. Fees for buying and selling crypto vary depending on different factors and users will see the fee when placing their order.
There are over 100 cryptocurrencies on the platforms and fees are on the more expensive side (maybe the reason why the fees aren't displayed on its site).Fees for purchases via debit card are 3.99% and 1.49% for purchases via US bank transfers. It’s also one of the preferred platforms for Bitcoin purchases via credit card. Like Binance.US, there is a simple buy/sell platform for newbies and an advanced platform known as Coinbase Pro.
Maker and taker fees on Coinbase Pro start at0.50% per transaction and subsequently decrease as trading volumes increase (for example, 0.35% for volumes between $10,000 - $50,000). When making deposits or withdrawals through a wire transfer, you will be subject to extra payment costs of up to $10 and $25 respectively.
Although Coinbase's costs are acceptable for larger quantities, the platform is not the most cost-effective cryptocurrency exchange for novice investors or those purchasing modest amounts of cryptocurrency for the first time.
Currency.com
Currency.com is a Belarus-based online trading platform where users can trade cryptocurrency, fiat currency, and tokenized assets. It’s also the first tokenized assets platform, offering tokenized versions of traditional assets such as securities and commodities.
Tokenized assets on the platform include government bonds, indices, shares, currency pairs, and commodities. There are currentlyover 2,000 tokenized assets available on the platform.
Users have access to tokenized versions of blue-chip stocks such as Apple, Alphabet (Google), and Amazon. Tokenized indices include S&P 500 and the FTSE 100, and tokenized commodities such as oil, gold, and natural gas are available to trade.
The platform has a user-friendly and easy-to-use trading interface as well as advanced trading tools including Bollinger bands and moving averages. With the support of real-time price charts and a variety of other tools, investors can also make better-informed selections on the exchange. In addition, there is a section dedicated to recent developments in the financial sector.
Traders with intermediate experience will be able to quickly get used to the structure of its trading interface. Even though the platform is designed for more seasoned traders, it comes with a demo mode that allows novices to practice trading with dummy money.
Users can deposit funds into their accounts using methods such as bank transfers and debit cards. Deposits via bank transfer are free but there is a minimum deposit requirement of $50. Withdrawals also require a minimum withdrawal of $50 and are subject to a withdrawal commission of 0.15% with a minimum fee of $20 and a maximum fee of $200.
Deposits via credit or debit card are subject to a 3.5% fee with a minimum deposit of $20. Withdrawals are subject to a minimum withdrawal amount of $10 and a withdrawal fee of 3.5% plus $3. As you can see, the fees aren't the best when compared to competitors but the platform does offer tokenized assets in addition to cryptocurrency which gives it a slight edge.
All-in-all, Currency.com is another exchange worth considering for US-based residents due to its advanced trading tools and demo account feature.
Kraken
Kraken is a US-based cryptocurrency exchange that was founded in 2011 by Jesse Powell as a potential replacement for Mt. Gox in the event that it ever closed down (which it did in 2014). The platform has a mobile app and supports over 160 cryptocurrencies that can be bought, sold, and traded.
The exchange has a simple buy/sell feature that allows users to buy crypto using cash, similar to Coinbase and Binance. Users can deposit funds into their accounts via bank transfer, wire transfer, debit cards, and more.
In comparison to other feature-rich platforms like Binance, the user interface is quite simple and lacks a visually pleasing layout. However, the platform is still an excellent choice for seasoned crypto investors.
Kraken also has an advanced exchange for cryptocurrency trading with spot and margin trading options available to users. Taker fees for spot trading start at 0.16% whilst Maker fees start at 0.26% and these fees decrease as the trading volume increases.
Regardless of the cryptocurrency pair, there are volume rewards based on the previous 30 days of trading activity. Trading costs for conditional and limit orders are reduced to encourage more users to participate in the market and help the exchange maintain a steady supply of liquidity (i.e. maker fees).
In general, Kraken's spot exchange is a good fit for US citizens because of the cheap trading costs it charges. Kraken's portfolio of assets is adequate and its costs are modest, but it isn't ideal for newcomers who are looking for a fully decked-out trading experience. Furthermore, margin trading is only available to specific persons in the United States who match certain conditions.
Crypto.com
Crypto.com is a cryptocurrency exchange founded in 2016. The platform initially launched as Monaco before its rebrand in 2018. The main advantages of this exchange are its user-friendly mobile app and its Visa Debit card which offers staking rewards to its users.
Around 670 cryptocurrencies are supported by the platform and users are able to buy, sell, trade, stake, loan and spend their tokens via the platform.
There are many ways for users to fund their accounts which include bank transfers and credit/debit cards which have 0% fees at the time of writing. The platform has a staking feature where users can earn up to 14.5% on their crypto annually. Over 40 coins are supported, including Bitcoin, Ethereum, Bitcoin Cash, Algorand, and more as well as stablecoins such as USDC and Tether.
Traders may also use a professional exchange to trade between different cryptocurrencies or stake their coins in order to receive incentives. When compared to those of other platforms, the costs associated with trading on Crypto.com Exchange are relatively competitive. Trading fees for spot transactions start at around 0.40% for example.
Conclusion
We’ve looked at five different exchanges where US-based users can buy Bitcoin and other cryptocurrencies. When looking for an exchange you want to take into account your level of proficiency (beginner, intermediate), the usability of the platform as well as the fees.