SideBySide Compare All
Buyer's Guide Updated December 2025

How to Choose a Crypto Exchange: Complete Guide

With dozens of crypto exchanges competing for your business, picking the right one matters. Wrong choice = higher fees, security risk, or missing features. Here's how to choose wisely.

📋 Quick Selection Checklist

Must-Haves

  • ☐ Available in your state/country
  • ☐ Never been hacked (or handled it well)
  • ☐ Has the coins you want to buy
  • ☐ Supports your payment method

Nice-to-Haves

  • ☐ Low trading fees (<0.5%)
  • ☐ Staking rewards
  • ☐ Good mobile app
  • ☐ Crypto debit card

1. Security: The Non-Negotiable

Over $3.4 billion was stolen from crypto platforms in 2025. Security isn't a feature—it's the foundation. Here's what to look for:

✅ Green Flags

  • • Never been hacked
  • • Proof-of-reserves audits
  • • 95%+ cold storage
  • • Insurance on assets
  • • SOC 2 certification
  • • Publicly traded (more transparency)

🚩 Red Flags

  • • Recent hack without reimbursement
  • • No proof-of-reserves
  • • Unregulated/offshore
  • • Anonymous founders
  • • Negative reviews about withdrawals
  • • "Too good to be true" rates

Security Track Records (US Exchanges)

✓

Never Hacked

Coinbase, Kraken, Gemini

!

Hacked, Reimbursed

Crypto.com, Bitstamp

✗

Major Issues

FTX (collapsed), Mt. Gox

2. Fees: The Hidden Wealth Drain

Fees seem small but compound over time. A 0.5% difference on $10,000 traded monthly = $600/year lost.

Types of Fees to Compare

1

Trading Fees (Most Important)

Charged per trade. Range from 0% to 1.5%. Maker fees (limit orders) are usually lower than taker fees (market orders).

2

Spread (Hidden Fee)

The difference between buy and sell price. "Commission-free" apps often have wide spreads (0.5-1%+).

3

Deposit/Withdrawal Fees

ACH deposits are usually free. Crypto withdrawals depend on network (ETH expensive, SOL cheap).

Exchange Trading Fee Cost on $10K Best For
Kraken Pro 0.16-0.26% $16-26 Value seekers
Coinbase Advanced 0.40-0.60% $40-60 Beginners
Gemini ActiveTrader 0.20-0.40% $20-40 NY residents

3. Coin Selection: Does It Have What You Want?

All major exchanges have Bitcoin and Ethereum. Differences appear with altcoins.

250+

Coinbase

350+

Crypto.com

~20

Robinhood

💡 Pro Tip

Before signing up, check if the exchange lists the specific coins you want. All have BTC, ETH, SOL, ADA, DOGE. Newer or smaller coins vary significantly.

4. Features: What Do You Actually Need?

For Beginners

  • ✅ Simple buy/sell interface
  • ✅ Good mobile app
  • ✅ Learn & earn programs
  • ✅ Recurring buys (DCA)
  • ○ Advanced charts (not needed)
  • ○ Margin trading (risky)

→ Best: Coinbase

For Active Traders

  • ✅ Low fees (<0.2%)
  • ✅ Advanced order types
  • ✅ TradingView charts
  • ✅ API access
  • ✅ Margin/futures (optional)
  • ✅ High liquidity

→ Best: Kraken

For Passive Income

  • ✅ Staking rewards
  • ✅ Crypto debit card
  • ✅ Interest on holdings
  • ✅ Rewards ecosystem
  • ○ Trading features (less important)

→ Best: Crypto.com

For Maximum Security

  • ✅ Never hacked
  • ✅ SOC 2 certification
  • ✅ Proof of reserves
  • ✅ Insurance
  • ✅ Regulatory compliance

→ Best: Gemini or Kraken

5. Regulation: Your Legal Protection

Regulated exchanges follow rules that protect you. Unregulated exchanges can disappear with your money (see: FTX).

✅ Well-Regulated (US)

  • Coinbase — NASDAQ listed, SEC reporting
  • Gemini — NY Trust Company, SOC 2
  • Kraken — FinCEN registered, state licenses
  • Binance.US — US entity, but regulatory challenges

⚠️ Offshore/Unregulated

  • Binance (Global) — Not for US users
  • KuCoin — Prohibits US users
  • MEXC — Prohibits US users
  • Any "no KYC" exchange — Higher risk

Quick Decision Framework

🆕

"I'm new to crypto"

→ Coinbase — Easiest interface, learn & earn, $10 bonus

💰

"I want the lowest fees"

→ Kraken — 0.16% maker fee, never hacked

🔒

"Security is my top priority"

→ Gemini — SOC 2 certified, never hacked, NY regulated

💳

"I want crypto rewards and a card"

→ Crypto.com — Up to 5% cashback, staking rewards

🗽

"I live in New York"

→ Gemini or Coinbase — Fully licensed in NY

Common Mistakes to Avoid

❌ Chasing Lowest Fees Without Checking Security

Some ultra-low-fee exchanges are offshore and unregulated. Saving 0.1% means nothing if the exchange exit-scams. Prioritize security, then optimize fees.

❌ Using "Simple" Mode Without Realizing the Fee

Coinbase's simple trade mode charges ~1.5% + spread. Advanced Trade is 0.40-0.60%. Same app, same account—always use Advanced for lower fees.

❌ Keeping All Crypto on the Exchange

Exchanges can get hacked or freeze withdrawals. For significant holdings ($1,000+), consider moving to a hardware wallet. Keep only trading amounts on exchanges.

The Bottom Line

For most people starting out, Coinbase is the best choice—easiest to use, strong security, and good enough fees on Advanced Trade.

As you get more serious, consider Kraken for lower fees or Gemini for maximum security and free withdrawals.

The "best" exchange depends on your priorities. Use this guide to match features to your needs, not marketing hype.

Compare All Exchanges

Last updated: December 18, 2025