You’re interested in cryptocurrency investing and you’re wondering where to buy crypto. How do different investment platforms compare, and what’s the best place to buy crypto is there a regulated crypto exchange?
There are many options if you’re looking for a cryptocurrency exchange where you can buy, sell, convert, and even day trade crypto. There are lots of factors to consider and we’re here to help!
We understand that it can be a little overwhelming to review different crypto platforms, especially when you’re limited on time and not sure where to start. We’ve taken the time to compare multiple platforms, including information on security, regulation by FINRA and other agencies, fees and prices, the range of cryptocurrencies available, and how easy each one is to use.
Keep reading to learn which platforms we think are the best!
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is a platform that facilitates the trading of cryptocurrencies or digital currencies for other assets, including traditional fiat currencies such as the United States dollar, credit cards, or even other digital currencies. It may also be referred to as a digital currency exchange, or DCE.
Traders on cryptocurrency exchanges must go through an account set-up process to confirm their identities and link to a bank account or credit card. Funding options vary among exchanges.
Some crypto exchanges provide users with a secure crypto wallet to store digital assets, including cryptocurrencies, NFTs, and smart contracts. Every platform has its own rules about how and when users may withdraw cryptocurrency, so it’s important to understand those rules before you use any cryptocurrency exchange.
Factors to Consider When Choosing the Best Place to Buy Crypto
Before we reveal the best places to buy crypto, here are the factors you should consider as you select a crypto exchange to use.
Security First
When it comes to any type of online investing, security should always be your first consideration. After all, your money is at stake and even a cursory glance at cybersecurity headlines is enough to let you know that there are always people working on ways to steal others’ money.
You should look for these security measures from any cryptocurrency exchange you’re considering.
- Password protection
- Two-factor authentication (2FA) requiring a biometric scan or code to log in
- Cold storage, either in a crypto wallet you own or in cold storage provided by the exchange
- Regulatory compliance
- Insurance coverage
In terms of insurance coverage, you should be looking for two things. The first is insurance by the FDIC, which insures bank deposits and may also protect uninvested deposits on platforms such as Robinhood, or SIPC, which protects investment holdings.
The second type of insurance is insurance purchased by the cryptocurrency exchange, usually crime insurance. These policies provide protection to investors who lose money due to a breach in the exchange’s security. It’s important to note that they don’t protect against theft due to the user giving out their password or otherwise granting access to their own account.
Ease of Use
Next, you should think about how easy it is to use the cryptocurrency exchange. Some exchanges have put a lot of time and money into creating user-friendly and intuitive platforms.
Depending on your level of experience with both crypto and investment tools in general, you may not mind an exchange with a complex interface and steep learning curve. Beginners are more likely to want a streamlined experience with limited menu and investment options.
Ease of use also includes an evaluation of the access you’ll have to help and resources. Some platforms offer 24/7 live chat support, while others have more limited support options. You should also check out which educational resources are available. Some platforms offer articles, videos, webinars, and FAQ, all of which can help you manage your investments.
Fees to Watch Out For
Fees for cryptocurrency exchanges may be complex and for beginners, difficult to understand. Here’s a brief overview of fees you should watch out for.
- Transaction fees (often using a maker/taker structure)
- Commissions
- Regulatory fees
- Withdrawal fees
In a perfect world, all cryptocurrency exchanges would be completely transparent about fees. The reality is that it can be difficult to grasp all the charges, but any exchange you use should disclose the total fees at the time of the transaction.
Supported Coins
Finally, you’ll want to think about which coins are supported on the cryptocurrency exchange you choose. Most will offer popular and well-known cryptocurrencies, such as Bitcoin, Ethereum, and Dogecoin.
Some exchanges offer hundreds of coins, including altcoins and stable coins, while others offer only a few. You’ll need to think about which coins you’re interested in trading and choose a platform that offers the ones you want.
Pro Tip:
Ready to enhance your crypto portfolio? Sign up for Robinhood and earn up to $1500 in free stocks by referring friends, register on Coinbase and get $50 of BTC after making your first trade, or subscribe to Interactive Brokers and get a free trial with a $1M simulated trading account!
The Best Platforms to Buy Bitcoin and Other Cryptocurrencies
Now, it’s time to reveal the platforms we consider to be the best to buy Bitcoin and other cryptocurrencies and digital assets.
Robinhood
Our first pick is Robinhood, which is a well-known, mobile-first investment platform. It launched in 2015 and has 10 million active monthly users.
Why We Picked It
Although Robinhood is not just a popular cryptocurrency exchange, we chose Robinhood because it’s one of the most popular investment apps around. They opened the app up to cryptocurrency investing in 2018, at which point they had a waiting list of two million users.
Robinhood pioneered the offering of commission-free trading. Their platform is user-friendly and intuitive, meaning that it’s easy for first-time investors to jump in and make their first cryptocurrency trade as soon as their account is approved, and they now offer many popular cryptocurrencies.
Key Takeaways
- State-of-the-art security, including encryption, Two Factor Authentication, FDIC insurance for uninsured deposits, SIPC insurance for investments, and cold storage for users’ assets..
- 20 cryptocurrencies are available for trading, including Bitcoin, Ethereum, Dogecoin, Solana, and USDC.
- Mobile-first technology makes the trading experience intuitive.
- Debit card and other ease of access options
- Extremely low fees
Best For
Robinhood is best for beginner investors who want to experiment with cryptocurrency investing and aren’t necessarily interested in high-volume crypto trading with necessarily all of the advanced trading tools. Intermediate investors may also find value in Robinhood, but advanced investors will likely prefer a platform that offers more analysis tools and better options for portfolio diversification.
What You Should Know
Robinhood’s fees can be difficult to calculate up front, so keep an eye out for fees in the box that appears at the time you make a trade. There’s a spread fee and Robinhood is entitled to retain the difference between the spread and your final price.
Coinbase
Coinbase is one of the oldest cryptocurrency exchanges and the largest in the United States. Founded in 2012, it’s now a fully distributed company with all employees working remotely.
Why We Picked It
We chose crypto platform Coinbase for our list because they offer a large number of cryptocurrencies and an interface that’s easy enough for beginners with enough advanced trading tools to appeal to more serious crypto trading investors
Coinbase has launched its own blockchain and its own crypto coin, appropriately named $COIN. It also offers users a decentralized crypto wallet for digital currency.
Key Takeaways
- 360+ cryptocurrencies and 400+ trading pairs are available to users.
- In-depth knowledge base including articles, videos, and more.
- 24/7 support available via chat, phone, and email.
- End-to-end encryption, FDIC insurance, crime insurance, 2FA, and more.
Best For
Coinbase is best for experienced crypto investors who want access to advanced charting and analytics, as well as a huge selection of coins and other digital assets. It’s not ideal for people who prefer to have all their investments in one place, since it’s a crypto-only exchange.
What You Should Know
Coinbase discloses fees on their website, but it can be difficult to calculate them ahead of a trade. Make sure to check the fees before finalizing any trade. If you’re interested in high-volume or more complicated trades, you can use Coinbase Advanced Trade, which replaced Coinbase Pro, for free.
Kraken
Kraken is a cryptocurrency exchange that was founded in 2011 and is one of the oldest crypto exchanges in the world. It was also the first crypto exchange to be listed in Bloomberg Terminal.
As of 2024, Kraken and Kraken Pro are worth more than $2 billion and offers users an impressive number of crypto coins and other digital assets for trading.
Pro Tip:
Ready to enhance your crypto portfolio? Sign up for Robinhood and earn up to $1500 in free stocks by referring friends, register on Coinbase and get $50 of BTC after making your first trade, or subscribe to Interactive Brokers and get a free trial with a $1M simulated trading account!
Why We Picked It
We selected Kraken for our list because it has low transaction fees compared to some other exchanges and because it offers some advanced trading options for crypto trading that others don’t, including margin trading for digital currency.
Kraken also has a higher-than-usual daily deposit/withdrawal limit of $100,000. They offer Kraken Pro, a pro-level interface, at no additional charge.
Key Takeaways
- Buy, sell, and convert 311 cryptocurrencies.
- State-of-the-art encryption, 2FA, cold storage, and other security measures.
- Kraken deposits are held remotely at Kraken Financial, but are not FDIC-insured.
- Margin trading, future trading, and other advanced trades are available.
Best For
We feel that Kraken is best suited for advanced crypto investors who want to engage in riskier trading. There’s a good selection of cryptocurrencies available for trading and Kraken Pro is free to use once you’re approved, giving subscribers access to higher daily limits, without surmountable trading fees.
What You Should Know
Kraken exchanges offer a lot for advanced investors but isn’t really suitable to beginners who may be turned off by the steep learning curve. Kraken doesn’t offer any insurance on its deposits, so it’s important to keep that in mind and protect your digital holdings in a cold wallet that you own.
Crypto.com
Crypto.com is a cryptocurrency exchange founded in Hong Kong that’s now headquartered in Singapore. The company got its start in 2016 and reportedly has 100 million users around the world. Like Robinhood, and unlike many crypto exchanges, Crypto.com is a mobile-first company. There’s a web interface with limited features. Not all features are available in the United States or in all crypto markets.
Why We Picked It
We picked Crypto.com for its low fees compared to other crypto exchanges and its state-of-the-art security through its “Zero Trust, Defense in Depth” strategy. We think it’s a good choice for advanced investors who want access to its suite of investment tools.
Key Takeaways
- Over 300 cryptocurrencies are available for trading.
- Fees are low compared to other exchanges.
- USD assets are held at FDIC-insured banks.
- Advantageous for long-term crypto investors.
Best For
We think Crypto.com is best suited for long-term crypto investors who can take advantage of its unique fee structure. Cautious investors may prefer a platform that has purchased crime insurance or is part of the SIPC.
What You Should Know
Crypto.com doesn’t charge a spread on crypto trades and their fees are lower than most. Keep in mind that FDIC insurance only protects your assets if the bank holding them fails, not if Crypto.com fails.
Interactive Brokers
Interactive Brokers, or IBKR, is a licensed broker-dealer and a member of FINRA. It’s been around since 1993 and offers a full array of assets in addition to cryptocurrencies, including stocks, digital currencies, ETFs, bonds, mutual funds, Forex, advanced trading options, and commodities such as gold.
Pro Tip:
Ready to enhance your crypto portfolio? Sign up for Robinhood and earn up to $1500 in free stocks by referring friends, register on Coinbase and get $50 of BTC after making your first trade, or subscribe to Interactive Brokers and get a free trial with a $1M simulated trading account!
Why We Picked It
We selected Interactive Brokers for our list because it’s one of the only crypto exchanges that offers enough assets for a truly balanced portfolio outside of digital currencies.
It also provides users with an impressive set of investment analysis and tracking tools, making it a good choice for beginning and advanced investors, alike.
Key Takeaways
- Offers limited cryptocurrencies for trading, including Bitcoin, Ethereum, Bitcoin Lite, and Litecoin.
- Advanced investment tools and advanced charting options.
- Higher trading fees than other platforms.
- 2FA, SSL encryption, and around-the-clock monitoring.
Best For
Interactive Brokers is ideally suited for advanced and serious investors looking to deposit fiat currency. It’s an all-in-one platform for research, investing, and managing your investments. Its complex interface will likely be too much for beginners. It’s not known for its low fees.
What You Should Know
Interactive Brokers stands out for its balanced selection of asset classes along with its crypto trading. Using a crypto-only exchange means you’ll need a secondary investment platform for other assets. IBKR is the only option on our list to offer virtually every asset class, including a wide selection of cryptocurrencies.
Tips and Recommendations to Buy Cryptocurrency
Here are our best tips to buy cryptocurrency safely.
How to Avoid Scams
Crypto trading scams are everywhere. Here are a few tips to help you spot and avoid them.
- Beware of any crypto offer that seems too good to be true or offers guaranteed returns.
- Buy only from regulated platforms that offer more protection.
- Never send cryptocurrency in advance for a product or service that hasn’t yet been delivered.
- Don’t buy or trade crypto with someone who contacts you out of the blue.
- Never share the login details for your crypto wallet or crypto account. If someone emails or texts you with a link, don’t click it. Instead, navigate to the platform and log in as usual.
Regulated Platforms in the US
There are some gray areas in cryptocurrency regulation. A lot of companies have run afoul of the Securities and Exchange Commission because of those gray areas. Regulated platforms include Kraken, Coinbase, Interactive Brokers, and Robinhood. Foreign-owned companies, such as Crypto.com, offer less protection for users’ crypto assets. Many crypto exchanges offer some protections in the U.S.
General Investing Tips
Let’s close with a few general tips.
- Never invest more in cryptocurrency than you can afford to lose.
- Balance cryptocurrency risk by adding stocks, ETFs, bonds, and mutual funds to your portfolio.
- The ideal storage method for cryptocurrencies and other digital assets is a cold wallet, meaning a wallet that is never connected to the web.
- Never share your password for any crypto exchange or crypto wallet with another person.
Conclusion
Before you buy Bitcoin or any other cryptocurrency for crypto trading , make sure to educate yourself about the various platforms that are available and what they offer. Key considerations include security, low trading fees, and supported coins. We also recommend, and several crypto exchanges offer, insurance to protect users’ crypto assets, even for advanced traders.
FAQs
The safest place to buy Bitcoin is in a US-based and regulated exchange such as Coinbase, Robinhood, or Interactive Brokers.
Yes, some exchanges will allow you to use a credit card or debit card to buy crypto. Keep in mind that there may be additional transaction fees, so read the fine print and make sure you understand what you’re paying.
We recommend using a cold wallet for your cryptocurrency, meaning a wallet that is never connected to the web and also password protected. Second choice would be a hot wallet that is accessible online but encrypted and protected with a strong password and 2FA.
