Bitcoin Exchanges in the USA
If you are looking to buy Bitcoin online, you will need a cryptocurrency exchange. According to a recent research by Coincub, the USA leads in the number of users who trade in cryptocurrency. But which is the best exchange in the USA? This article provides you with a structured analysis of the best Bitcoin exchanges where investors can buy Bitcoin.
Here’s our list of top Bitcoin exchanges in the USA
Crypto exchanges continue to evolve at a fast pace. There are many factors to consider when seeking the right fit. Here are our top recommendations:
What should I look for in the Bitcoin exchange in the USA?
Choosing a crypto exchange mainly depends on the goals of an investor. Those buying Bitcoin for long term investment (HODL) will have different preferences to those involved in trading. Beginners will want to make the purchase process as smooth as possible. Weighing all these scenarios, here is what we found top considerations across all levels of Bitcoin investors
Fees: Fees payable form the top concern for most Americans. Some of the standard fees chargeable for purchasing or trading Bitcoin are:
Deposit fees
Withdrawal fees
Maker and taker fees
Traders love Binance, US, and BlockFi due to the low fees. Most exchanges offer free ACH bank transfers. Credit and debit cards Bitcoin purchases face high fees. Beginners should watch out for withdrawal fees. Fees are charged when converting the Bitcoin to USD. Most exchanges incentivize users by offering free deposits to their exchanges while charging hefty withdrawal fees. Fees may be in the form of USD or Bitcoins.
Security: Hackers have been on the rampage recently, with crypto exchanges experiencing a myriad of attacks.A secure exchange has to tick the following boxes:
Two-factor Authentication (2FA) for clients
Insurance on hot storage
Bug bounty programs
Cold storage – offline storage of Bitcoins
Multi-signature wallets
Multi-level verification for withdrawals
Operating with a valid SSL certificate
Bitcoin investors should read the fine print on the exchange they choose. Get direction on whether there is insurance for deposits and crypto-assets. Bug bounties are essential in discovering security loopholes on the exchange software before exploitation by malicious actors. It is prudent to store Bitcoins off the exchange, especially for investors planning to HODL.
Reputation: Gauging the reputation of a crypto exchange is something every Bitcoin investor must do. An exchange may have a good reputation for customer service but high fees. So, how do you evaluate the reputation of a crypto exchange? The best way is to check trusted consumer review sites like Google reviews and Trust Pilot that show verifiable reviews. Forums like Discord and Reddit can also be helpful.
Payment & withdrawal methods accepted: There are mainstream payments and withdrawal methods for Bitcoin investors, including wire transfers, ACH bank transfers, Paypal, digital assets, VISA/Mastercard debit and credit cards. Exchanges continue to integrate other third-party payment and withdrawal solutions such as Apple Pay, Amazon Pay, Google Pay, Payoneer, Neteller and Skrill. The choice for Bitcoin investors will mainly depend on the fees associated with a method and how fast the funding reflects onto the exchange. For instance, On Binance wire transfers may clear the same day, while ACH transfers may take two to three days. Withdrawals methods are mainly similar to deposit methods. Bank transfers, wire transfers and cryptocurrencies are the more common methods.
KYC process: Know Your Customer (KYC) is part of the Anti Money Laundering laws (AML), which helps verify client details. This involves submitting personal details such as full names, addresses, a photo and a government-issued ID.xMajor exchanges in the USA will require your KYC details. Buying Bitcoin anonymously is becoming harder, primarily through exchanges. However, users may use decentralized exchanges like Bisq, which allow you to skip KYC verification.KYC verification may be lengthy and time consuming depending on the exchange. Some exchanges like Bitfinex offer full and intermediate KYC verification depending on the user activity level. Complete verification may take 2 to 3 working days for exchanges like Kraken. Other exchanges like Bittrex and Coinbase do it for under 15 minutes.
Insurance: This is starting to become a hallmark for tier 1 exchanges. With security breaches increasing, exchanges have set apart funds to reimburse users in case of security incidents resulting from their fault. Some insure only hot “online” crypto assets stored online. We recommend inventors store their Bitcoin in a hardware wallet where the coins are stored offline and have complete control.
Design, user experience, and ease of use: The complexity of using an exchange has been cited by many Americans as a reason they have avoided investing in cryptocurrencies. Exchanges like Coinbase have a simple user interface which has seen it being touted as the best exchange for beginners. Other platforms like Kraken allow users to manage their user settings which aims to enhance the user experience.
Withdrawal limits: Bitcoin investors may be subjected to different withdrawal limits depending on several factors, such as account verification status. Fully verified accounts will have better limits. Institutional accounts will have more significant limits. Withdrawal limits are usually a concern for clients who buy and withdraw large numbers of Bitcoins. All exchanges have a withdrawal limit, with daily and weekly limits in place. For instance, Coinbase Pro users have a withdrawal limit of $50,000, while Gemini offers a daily limit of $5,000.
Customer service: Many investors have complained about the poor level of customer service offered by Crypto exchanges. A majority of exchanges lack live support, and email response may take weeks. This is primarily a serious issue for those who wish to trade in Bitcoins to make margins quickly in volatile markets. A delay in response from customer support may see the investor lose money. Exchanges like Kraken and BitStamp have commendable customer support.
Trading engine: How the core trading infrastructure holds up during highly volatile periods is a critical consideration for Bitcoin traders. Users do not want a trading engine that freezes when they are in the middle of buying or selling their Bitcoins. An incident where Binance froze for about an hour comes to sharp focus because many Bitcoin investors who had leveraged their assets experienced heavy losses.
What exchanges are available to trade Bitcoin in the USA?
There are a myriad of exchanges available for US residents. Picking one that suits your needs can be confusing and challenging. Our analysis shows exchanges based on trading volume, customer service, security and customer satisfaction.
Coinbase
It is a leading crypto exchange in the USA with over 50+ tradeable digital assets. Bitcoin investors seem to be really attracted to the simple user interface.
Fees
Coinbase has a complex fee structure. See below:
Deposit/Payment MethodFeesBank Account1.49%Debit/Credit card3.99%ACH transferFreeWire transfer$10Crypto conversion2%
Trading Amount(USD)
Fees (USD)
Less than $10
$0.99
$10 – $25
$1.49
$25 – $50
$1.99
$50 – $200
$2.99
Trades and purchases are also subject to variable spreads. For sale below $10,000, Coinbase charges a spread variable of 0.5%. The fee reduces with higher tiers.
There is also a convenience fee called the “Coinbase fee” dependent on the payment method utilized, region and purchase value.
Coinbase Pro offers significantly lower fees. ACH and crypto-assets transfers are free. Here are the maker-taker fees
Pricing Range (USD)
Maker Fees (USD)
Taker Fees (USD)
Less than 10K
0.5%
0.5%
10K-50K
0.35%
0.35%
50K-100K
0.15%
0.25%
100K-1M
0.1%
0.2%
1M-10M
0.08%
0.18%
10 -50M
0.05%
0.15%
50M-100M
0.00%
0.1%
$100 – 300M
0.00%
0.07%
300M-500M
0.00%
0.06%
500M-1B
0.00%
0.05%
1B+
0.00%
0.04%
Key features
High daily trading volume
A hot wallet to store Bitcoins
Versatile for both expert and beginners
Crypto to crypto trading
Offers institutional investor accounts
Pros:
A wide selection of cryptocurrencies are available
Simple, intuitive user interface that is beginner-friendly
High liquidity
Provides a crypto learning and educational platform
Digital assets are insured to prevent losses in the event of a security breach.
Cons:
Higher fees compared to other exchanges, unless using Coinbase Pro
Limited customer support (email option only)
Kucoin
Although based in Singapore, Kucoin is a well-established exchange in the USA, with many cryptocurrencies available. The platform receives over 2.2 million visits weekly, with a trading volume surpassing 1 billion dollars within 24h.
Fees
Maker and taker fees 0.1%
Deposit is free
The withdrawal fee for Bitcoin is 0.0005 BTC
The platform recently launched a tiered trading fee discount program for Bitcoin trading. The tiers depend on a 30-day trading volume and the KCS (Kucoin native token) you own.
Key features
KCS tokens that reduce trading fees
Earning cryptocurrency by lending crypto or staking.
Core trading engine capable of handling a large number of transactions
High liquidity for Bitcoin
Asset management system to secure clients’ portfolio
Futures and margins trading
Institutional investor accounts
Pros:
Free deposit, minimal trading and withdrawal fees
Diversity in cryptocurrency with over 200 options available
A simple and easy to use interface friendly to beginners
High level security with industry level encryption of data, multiple authentication levels
Non-custodial trading facilitated by Arwen.
Cons:
Lower liquidity for smaller altcoins
Kucoin provides advanced trading with options for passive earning. Investors can stake their Bitcoin or lend it out to earn interest. Kucoin outcompetes Coinbase and Coinbase Pro in terms of deposit and trading fees, as well as the number of digital assets available. Both platforms offer advanced Bitcoin trading features and high-level security.
Kraken
Kraken is a high profile exchange based in San Francisco. The exchange experiences just under a billion dollars trading volume in 24 hours with about 2.4 million visitors weekly.
Fees
Instant buy fees
Instant buy fees (USD)
Fees
Kraken fee
1.5%
Credit and debit cards
3.75%+€0.25
Online banking/ACH transfers
0.5%
Digital Payment wallet
3.75%+€0.25
30- Day Volume (USD)
Maker
Taker
$0 – $50,000
0.16%
0.26%
$50,001 – $100,000
0.14%
0.24%
$100,001 – $250,000
0.12%
0.22%
$250,001 – $500,000
0.10%
0.20%
$500,001 – $1,000,000
0.08%
0.18%
$1,000,001 – $2,500,000
0.06%
0.16%
$2,500,001 – $5,000,000
0.04%
0.14%
Key Features
Bitcoin future trading
Earn rewards by staking Bitcoins
Margin trading
Crypto to crypto trading
Crypto watch, indices and dark pool
High-level platform security
Pros:
A secure and reliable trading platform featuring 2FA, air-gapped cold storage, SSL encryption, and a bug bounty program.
A wide range of funding options, including Etana custody.
Personalized over the counter transactions for larger transactions.
High trading and withdrawal limits
Cons:
Intermediate and pro-level accounts take considerable time before approval.
Credit and debit card deposits are not available.
Customer service is limited to live chat and email. There are no direct phone calls available to customer support.
Does not have a crypto wallet
Kraken offers considerably lower fees when compared to Coinbase. The platform offers high-level asset management and security like Kucoin and Coinbase.
Gemini
This is an exchange that offers a solid option for both novice and expert Bitcoin traders. It is available in all states.
Fees
Gemini offers a complex fee schedule depending on the product and usage level. This includes mobile fees, API fees, web, custody, transfer, connectivity, market data and Gemini earn fees.
Mobile and web fees consist of trading and convenience fees.
Order Amount (USD)
Fees (USD)
Less than $10
$0.99
$10-$25
$1.49
$25 – $50
$1.99
$50 – $200
$2.99
Above $200
1.49%
Key Features
Advanced order types and charting options
Advanced tools and products such as Gemini clearing and Gemini custody for security
Gemini wallet
Gemini dollar backed by the USD.
Crypto to crypto trading
Pros:
An advanced trading platform called The Gemini ActiveTrader for professional trading.
Earn interests on the Bitcoin held in the exchange
A wide range of selections of cryptocurrencies, including Bitcoin.
The exchange allows Bitcoin investors extremely low-value purchases – 0.00001BTC
A learning hub that offers a wide range of fundamental to advanced crypto subjects
Available across all states
Cons:
Higher fees compared to exchanges like Kucoin
The exchange may be complicated for complete beginners
Like Coinbase, Gemini has been around for some time. Gemini trading engine is comparable to Kucoin. The fee structure is complex, just like Coinbase.
Bittrex
Bittrex markets itself as a global exchange with next-level security. The exchange provides investors with the option to buy, sell and trade over 500 markets. Users get instant buy and sell options.
Fees
There are no deposit fees
There are minimal withdrawal fees
Maker and taker fees depend on a 30-day trading volume.
Pros:
Advanced asset management with cold asset storage available.
Supports a wide variety of fiat and cryptocurrencies.
High-level security with personnel specifically tasked with user and asset security
Cons:
Limited customer support options
Lack of passive investment options
Bittrex makes this list because of its high-level security. A large percentage of its currency is stored offline in cold storage. The exchange competes favorably in security but lags in passive investment options, which Gemini and Kucoin offer.
Bisq
This is a popular decentralized exchange (DEX) where investors can buy and sell Bitcoins. The trading protocol enables traders to exchange Bitcoin directly, eliminating the need for a custodial exchange.
Fees
Type
BTC
Maker
0.001
Taker
0.007
Key features
Easy to use interface.
No ID verification
Works on a P2P network
Pros:
Provides a wide variety of funding option
Absolute control of your Bitcoins
No KYC requirements; therefore, high level of privacy.
Supports multiple digital assets
No geographical limitations and works in all states.
Cons:
Bisq works on a P2P network which comes with a risk.
Functionality is basic and not suited for professional traders
Bisq allows investors to buy Bitcoins anonymously without ID verification. Unlike the other exchanges we have analyzed, Bisq is a software that acts as a medium between buyers and sellers.
Other notable exchanges operating in the USA include Binance US and CashApp. Binance US is associated with Binance, which is the largest exchange globally. CashApp is a mobile application where beginners can buy Bitcoins easily.
How to get started with Bitcoin exchange in the USA
These are things you will need before getting started:
A phone or computer connected to the internet
A phone number or Google authenticator app for 2FA authentication
An updated browser
Here are the steps to opening an account and buying Bitcoins:
Opening an account on a suitable exchange: Requires you to enter your email/mobile number and your password.
Verification via email or mobile phone: Follow the instructions sent by email or use the SMS code provided for account confirmation.
KYC information and verification: Investors will have to enter their legal names, occupations, source of funds, and upload their identity documents, etc. The exchange will perform identity verification and approve the account.
Link a payment option: Connect your account with a way to deposit funds. This can be via ACH bank transfer, cards, PayPal or cryptocurrency.
The first transaction: On the exchange tradeview, select Bitcoin and enter the amount you wish to spend. The transaction details will be displayed.
Finalize the purchase: Finalize the trade by sanctioning the transaction. We recommend transferring your Bitcoin to a Bitcoin wallet for safe custody.
Congratulations on your investment. We recommend setting up 2FA to secure your account further.
What are the options I have to buy and sell Bitcoin in the USA?
There are a variety of trading instruments, but Investors can use crypto exchanges, brokerage firms, and Contract for Differences (CFDs) trading platforms. Brokerages typically manage the buying and selling of Bitcoin on your behalf. They act as intermediaries between the selling party (a market such as an exchange) and the buying party(investors). They also allow users to trade in a wide range of assets, EFTs, and CFDs. Top brokers in the USA include eToro and Robinhood.
CFD trading platforms allow Bitcoin investors to speculate on the future value of Bitcoin without owning it. Investors can go “long” when they believe Bitcoin will rise in value or go “short” when they speculate that the prices will fall. CFDs can be leveraged such that your stake’s value is multiplied, which magnifies your profits or losses. CFD trading platforms are popular in the USA, with eToro again leading the way. The platform provides social and copy trading and is well regulated.
Do I have to pay tax when selling Bitcoin for profit in the USA?
The IRS (Internal Revenue Service) recognizes Bitcoin as an asset. Profits arising from the sale of Bitcoins are taxable.
Conclusion
US residents have many options when it comes to cryptocurrency exchanges. The best exchanges in the USA are the tier 1 exchanges that experience massive volumes daily. Picking the best Bitcoin exchange depends on your investment goals. For those concerned with low fees and high security, Kucoin is your best bet. Beginners should probably start with Coinbase, while those looking to buy Bitcoin anonymously can check out Bisq.
FAQs
What is an exchange?
Can I buy and sell Bitcoin with ID on exchange?
Are exchanges legal in the USA?
What is the difference between an exchange and a broker?Bitcoin Exchanges in the USA
