In this article, we take a look at the 12 best cryptocurrency exchanges in the US. For more exchanges see The 5 Best Cryptocurrency Exchanges in the USA
The cryptocurrency market is one of the most popular in the world, especially among Gen Z. Its growth has been meteoric, with just a decade between the rise of the world’s largest cryptocurrency, Bitcoin, and the numerous other cryptocurrencies that exist in the market today. Cryptocurrencies have several lures that ensure everyday investors will continue to pour money into them even as global interest rate shocks cause institutional capital to flee to the safe haven of the US dollar. These factors include the promise of a non-central bank regulated currency and the chance to generate massive returns in a short period of time.
On the other hand, investing in cryptocurrency also comes with several risks. The largest of these is the volatility of the sector, as prices are driven solely by sentiment and not the value of an underlying asset. For example, while the share price of Apple, the world’s most valuable technology company, is also influenced by investor sentiment, it also represents the current and future projected value of the company, which sells gadgets to make a profit. The wild swings can leave investors who have gone “all-in” or those who have leveraged their bets with huge financial losses.
Cryptocurrency exchanges are in the news these days due to the spectacular collapse of FTX – an exchange run by Massachusetts Institute of Technology (MIT) graduate Sam Bankman-Fried. Mr. Bankman-Frieds FTX minted his own tokens and used them to offset the liabilities of his trading firm, Alameda Research. When this became known, investors balked at an exchange funding its own trading partner, which then led to a massive flood of capital exiting FTX, which was unable to produce enough capital to cover these transactions.
Aside from FTX, a research report by Spherical Insights published in the third week of November (relevant as it was published after FTX collapsed) estimates that the segment was worth $33 billion last year. From there, it will grow at a whopping 30.08% compound annual growth rate (CAGR) to an estimated $348 billion by the end of 2030. Cryptocurrencies flourished during the coronavirus pandemic, when major stock market crashes and stimulus checks led to normal, retail investors investing in cryptocurrencies in large numbers in hopes of profiting from price increases. Spherical Insights believes that mobile trading will help cryptocurrency exchanges grow and Bitcoin will continue to play a big role in the market.
The story goes on
Photo by André François McKenzie on Unsplash
Our methodology
We examined the myriad of cryptocurrency exchanges currently in operation to select the ones that allow US dollar fiat trading and meet the requirements to operate in America. They are ranked by weekly visits, a crucial factor as higher visits are an indicator of the exchange’s technical strengths and are not influenced by higher value currencies like bitcoin.
Best Cryptocurrency Exchanges in USA
12. Bitstamp USA, Inc.
Weekly visits as of November 27, 2022: 239,341
Bitstamp USA, Inc. is a British cryptocurrency exchange based in Luxembourg. The firm also has a US division headquartered in New York, New York. The American arm has a separate chief executive officer, and the company as a whole, dubbed Bitstamp, is led by a global chief executive officer.
Bitstamp USA, Inc. allows traders to trade US dollar fiat, and it is also one of the seven companies that had applied for approval from the New York State Department of Financial Services (DFS) to ensure operational compliance, which only then exchange can demonstrate that it is able to meet liquidity requirements and has adhered to money laundering and other practices aimed at preventing criminal activity on its platforms.
Bitstamp USA, Inc.’s main exchange, Bitstamp, operates in over 100 countries and has more than four million users.
11. Gemini Trust Company, LLC (Gemini)
Weekly visits as of November 27, 2022: 247,069
Gemini Trust Company, LLC (Gemini) is an American cryptocurrency exchange founded in 2015. At the time, her main goal was to allow users to buy and sell Bitcoin, but she also added other cryptocurrencies to her portfolio. Gemini Trust Company, LLC (Gemini) became the first licensed Ethereum exchange in the US in 2016 and is also regulated by the New York Department of Financial Services (DFS).
Gemini Trust Company, LLC (Gemini) offers a variety of products to its customers. These include clearing services, a mobile wallet, a credit card, a mobile application and settlement services. In addition, the company offers institutional solutions for hedge funds, fund managers, asset managers and companies, among others.
As of November 27, 2022, an average of 247,069 weekly users had visited Gemini Trust Company, LLC (Gemini).
10. bitFlyer
Weekly visits as of November 27, 2022: 402,066
bitFlyer is a Japanese company headquartered in Tokyo, founded in 2014. The company is one of the most stable exchanges in the world, having yet to experience an outage or disruption to its trading platform. In addition, bitFlyer also stores all of its cryptos in cold storage, which gives it some security.
bitFlyer’s cryptocurrency exchange allows users to trade either with each other or with bitFlyer. The majority of its transactions are in derivatives. These are financial instruments that allow investors to bet on whether the price of a commodity will go up or down. The company also allows users to buy cryptocurrency through credit cards or even loyalty programs similar to those offered by retailers. bitFlyer transaction volume was a massive $180 billion in 2021 and the average weekly user count is 402,066.
9. Binance.US
Weekly visits as of November 27, 2022: 433,833
Binance.US is the American arm of Binance, the world’s largest cryptocurrency exchange. The company was founded in 2017 after the US government decided to ban its parent company. The new company aims to comply with all regulations required to operate a cryptocurrency exchange in America.
Binance.US is also part of a cryptocurrency movement referred to as “stablecoins”. These aim to prop up the value of a digital currency by having a US dollar or other asset as a backup reserve. Binance.US stablecoin is called BUSD and as of January 2022 is the third largest stablecoin in the world in terms of market cap.
Binance.US is an active participant in the US cryptocurrency industry. It announced in November 2022 that it would be joining the Texas Blockchain Council and also tried to buy FTX but then withdrew the offer. The company has also formed a Political Action Committee (PAC).
8. Bittrue
Weekly visits as of November 27, 2022: 439,247
Bitrue is a cryptocurrency financial service and exchange founded in 2018 and based in Singapore. The company offers more than 200 cryptocurrencies to its users, and its other products include high-yield yield farming, staking, and a futures trading platform.
Bitrue’s most traded currencies are Bitcoin, XRP, Ethereum, Cardano, Solana and TRON. It allows users to buy and sell cryptocurrencies using a bank account. The company uses cold wallet storage for customer assets and a dedicated insurance fund of 38 million XRP and 40 million BTR to compensate customers if its platform is hacked due to Bitrue’s negligence.
7. Crypto.com Exchange
Weekly visits as of November 27, 2022: 913,020
Crypto.com Exchange is Crypto.com’s cryptocurrency exchange. Crypto.com is based in Singapore and was founded in 2016. In addition to an exchange, Crypto.com also offers a wallet, a smartphone application, and a non-fungible token (NFT) marketplace.
Crypto.com has partnered with several companies to allow them to use cryptocurrency for their products. For example, it has partnered with Time Magazine to allow its subscribers to make payments in cryptocurrency, and with Shopify in 2022 to enable e-commerce payments in digital currency as well. Crypto.com Exchange allows users to trade more than 40 different derivatives and more than two hundred pairs. The company’s Cronos token lost market value in November 2022 following the collapse of FTX, with its CEO reassuring users that FTX and Crypto.com Exchange are different.
6. Coinbase Global, Inc. (NASDAQ:COIN)
Weekly visits as of November 27, 2022: 959,236
Coinbase Global, Inc. (NASDAQ:COIN) is an American company headquartered in San Francisco, California. The company was founded in 2012 and offers various products and services.
Coinbase Global, Inc. (NASDAQ:COIN) enables its customers to use a wallet, NFT marketplace, asset trading platform, smartphone application and API for traders to accept cryptocurrency payments.
Of the 920 hedge funds surveyed by Insider Monkey in Q3 2022, 28 had purchased Coinbase Global, Inc. (NASDAQ:COIN) shares.
The largest investor in Coinbase Global, Inc. (NASDAQ:COIN) is Catherine D. Wood’s ARK Investment Management, which owns 7.7 million shares worth $497 million.
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Disclosure: None. The 12 Best Cryptocurrency Exchanges in the USA was originally published on Insider Monkey.
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