Key Takeaways

• Crypto exchanges are platforms that allow you to buy, sell, and trade cryptocurrencies.
• US crypto exchanges comply with regulations set by agencies like the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC). This can mean stricter ID verification and reporting requirements compared to non-US exchanges.
• When choosing a regulated crypto exchange, consider the features that are important to you, such as a beginner-friendly interface, advanced trading tools, or specific cryptocurrencies offered.

2024 and 2025 are expected to be pivotal years for the cryptocurrency market. Popular estimation models and large financial institutions expect Bitcoin’s price to reach $200,000 – $300,000 this cycle.

As Bitcoin and the crypto markets continue to become popular, many newcomers will enter the space wondering where to start.

In this article, we will be discussing some of the top American-based crypto exchanges in the United States for 2024.

What Are Crypto Exchanges?

A crypto exchange is an online marketplace where you can buy, sell, and trade cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and XRP. It is very similar to a traditional stock exchange but for digital assets.

Crypto Regulations In The United States

Crypto regulations can vary depending on your location. In the US, there are stricter regulations on crypto exchanges compared to some other countries. For example, US-based exchanges may have limitations on features like margin and futures trading.

Additionally, crypto exchanges in the US typically need to register with different regulatory bodies depending on the services they offer.

Regulatory Uncertainty

The main issue with US-based crypto exchanges right now is the ongoing uncertainty around regulations.

As of this writing, the US does not have a single federal authority overseeing crypto. Different agencies regulate various aspects, making it difficult for these exchanges to comply.

Additionally, the Securities and Exchange Commission (SEC) has been cracking down on crypto exchanges such as Coinbase, a publicly traded company, and Kraken, accusing them of offering unregistered securities on their platforms.

The securities regulator claims that these regulations are meant to protect investors, but it is also worth noting that they can stifle innovation and make the US a less attractive market for crypto-related businesses.

Top 5 Cryptocurrency Exchanges In The US For 2024

In no particular order, here are the top five most regulated crypto exchanges in the United States for 2024:

Coinbase

Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam and is currently the largest exchange by trading volume in the US. The company is also US-based, regulated by the SEC, and publicly traded on the NASDAQ.

Coinbase’s name and brand recognition allow it to charge high fees on crypto transactions. However, in terms of securing cryptocurrencies, Coinbase says it stores 97% of its Bitcoins in offline hardware wallets.

They also go on to say that they have crime insurance that protects you from theft, including cyber security breaches or hacks. However, this insurance does not cover someone gaining access to your account; it only covers the exchange itself if it gets hacked.

Lastly, customer cash balances are insured at $250,000 per person and they have a dedicated fund totaling $225 million for covering customer losses due to hacks.

Kraken

Kraken is a US-based exchange founded in 2011 by Jesse Powell. It officially launched trading operations in 2013 and is now among the best exchanges available in the US.

The exchange places a huge emphasis on its security, stating that safeguarding customer funds and privacy is its number one objective. Kraken stores consumer funds in a combination of hardware wallets and hot wallets. They also keep their devices in cages which are kept under 24/7 surveillance by armed guards, alarm systems, and security cameras.

Uphold

Uphold is a multi-asset digital trading platform launched in 2013 that makes crypto investing easy. The platform offers more than 260 cryptocurrencies and allows you to trade precious metals such as gold, silver, palladium, and platinum.

Uphold is also fully reserved; it has transparency reports and audits that you can review. Additionally, it does not commingle or lend out your funds. It is also the only platform that publishes its assets and liabilities in real-time.

Uphold also has a system called Vault, which allows you to back up your private keys to give yourself some peace of mind.

Gemini

Gemini was founded by Cameron and Tyler Winklevoss, more commonly known as the Winklevoss twins. Based in the US, Gemini was founded in 2014 and launched in 2015.

The exchange stores customer cash funds in FDIC-insured bank accounts. For cryptocurrencies, Gemini keeps them in off-site, and in a guarded cold storage. Only a small portion of cryptocurrencies are kept online to provide liquidity to the exchange.

Additionally, Gemini’s insurance policy, Gemini Custody, maintains a fund totaling $100 million to be paid to customers in the event of a hack. $25 million of it is allocated to hacks to funds stored in their hot wallets, and $75 million is allocated to hacks to funds into their cold wallets.

However, Gemini charges $30 per asset per month to be insured under Gemini Custody. If you want to hold many different coins, this can ramp up and become very pricey.

Robinhood Crypto

Robinhood Crypto is a service offered by Robinhood in 2018 that allows users to buy and sell cryptocurrencies commission-free. They offer over 30 different cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Dogecoin.

The platform is a really great option for beginners who want to invest in cryptocurrency with a user-friendly platform without worrying about commission fees. However, it is important to be aware of the limitations, such as the lack of advanced features.

Final Thoughts

We hope that we have provided the best choices for top cryptocurrency exchanges based in the US, catering to individuals residing in the country who are eager to embark on their crypto investment journey.

But always remember that no matter how secure an exchange seems, it is important to practice self-custody. So, keep your coins and tokens, preferably in a hardware wallet.