Picking a crypto exchange isn’t something to rush. It’s where your first trades happen, where your funds sit, and often, where your confidence starts to build. With so many platforms promoting low fees or flashy features, it can be difficult to tell marketing claims apart from real substance.
Rather than comparing exchanges on marketing claims, it’s more useful to understand the fundamentals that determine how they actually operate. Keep reading as we walk you through the main factors that now separate dependable platforms from the rest.
Security and regulation
As crypto has moved closer to mainstream finance, exchanges are increasingly expected to meet standards comparable to those of other financial intermediaries.
Regulatory status is one of the clearest signals. Regulators oversee exchanges that register or obtain licenses in their operating regions and enforce know-your-customer (KYC) and anti-money-laundering (AML) rules, which help limit certain risks, though they don’t eliminate them entirely. For example, U.S. regulators oversee Binance US and require it to meet strict reporting and custody standards.
Custody practices matter just as much. Established exchanges keep most customer funds in cold storage, reducing exposure to online attacks. Many now publish proof-of-reserves reports or third-party audits to show that customer balances are fully backed, which has become an important trust mechanism since several high-profile failures earlier in the decade.
On the user side, features like two-factor authentication, withdrawal whitelists, and device verification are no longer optional. Some platforms also maintain insurance pools or emergency funds designed to cover losses in the event of a security incident. Individually, these measures may seem routine, but together they form the baseline for a secure trading environment.
Fees, liquidity, and assets
Once you’ve checked an exchange’s security, it’s time to look at how trading actually works, and what it costs.
Most exchanges use a maker-taker fee model that changes depending on how much you trade each month. Makers, the ones who place limit orders and add liquidity, usually pay slightly lower fees than takers, who fill existing orders.
You’ll also want to check deposit and withdrawal fees. These can include small costs for bank transfers, network fees when moving crypto, or spot trading fees if you’re buying directly from the platform. Over time, these charges can add up, especially if you move funds often.
Liquidity is another key factor. Platforms with lots of active traders usually offer smoother transactions and smaller gaps between buy and sell prices. That means you’re more likely to get the price you expect.
It’s also important you look at the range of supported assets. Some exchanges only offer major coins like Bitcoin (BTC) and Ethereum (ETH), while others list hundreds of tokens. What’s available can depend on where you live and how strictly the exchange is regulated.
User experience
How an exchange feels to use makes a big difference, especially when you’re just getting started. A clean layout, simple order forms, and clear account details help you understand what’s happening as you trade and lower the chances of making mistakes.
Good exchanges also go beyond design. The ones that include tutorials, beginner guides, or built-in education tools make it easier to learn as you go.
Advanced features and tools
Once you’ve been trading for a while and start feeling more confident, you may want to look for tools that give you a bit more control. And nowadays, many exchanges offer advanced features for users who want to go beyond simple buying and selling.
Some platforms let you trade with leverage through futures, options, or margin trading, though these carry higher risks and are best suited for experienced traders. If you’re more interested in automation, exchanges with API access allow you to connect external tools or bots that can execute trades and manage portfolios for you.
Charting tools are another useful upgrade. Integrations with services like TradingView give you access to detailed graphs, price depth data, and profit-and-loss calculators that help make sense of market movements. Exchanges also often include more sophisticated order types, such as stop-loss or trailing stop orders, which automatically trigger trades to manage risk.
Many platforms now offer copy trading, which lets you follow experienced traders and automatically mirror their moves. It’s a good way to learn different strategies while still keeping control over your own account.
Customer support
Good exchanges make it easy to get help when you need it. Most now have live chat that runs around the clock, along with email or phone support if you prefer to talk to someone directly. A solid help center or FAQ page is also worth checking, it shows the exchange takes common user problems seriously and wants to solve them before they turn into tickets.
For traders outside an exchange’s main market, multilingual support and regional teams can also be key. When problems involve compliance or account access, having someone who understands your local regulations or language can make the resolution process much smoother.
How to open an account with a crypto exchange: Step-by-step
Once you’ve chosen an exchange, the next step is setting up an account.
The process is usually straightforward and will follow a variation of these steps across most platforms:
- Step 1: After picking an exchange, you’ll sign up using an email address and choose a password. Many platforms now add extra security checks during sign-up as a standard precaution;
- Step 2: A regulated exchange will ask you to verify your identity. This typically means uploading a government-issued ID and is part of standard anti-money-laundering rules;
- Step 3: Once you have verified yourself, add funds through a bank transfer, card payment, or cryptocurrency;
- Step 4: Now that your account is set up and funded, you can start trading crypto.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs
Can you trust crypto exchanges?
In general, exchanges that are licensed and well-established tend to be more trustworthy. They operate under clear financial rules, such as identity verification (KYC), anti–money laundering checks (AML), and proof-of-reserves audits, and are supervised by regulators such as FinCEN in the U.S. or the FCA in the U.K.
What are the fees for crypto exchange?
Most exchanges take a small fee on each trade and may also charge for deposits or withdrawals. There’s often a less obvious cost too, like the spread, i.e., the difference between the price you buy at and the price you can sell for. These costs aren’t the same everywhere and can vary depending on the asset or network you’re using.
Can I trade crypto with less than $100?
Most exchanges let you start small, often with as little as $10, and you can even buy fractions of a cryptocurrency instead of a whole coin.
Is KYC mandatory for crypto exchanges?
Regulated exchanges operate under KYC and AML rules and therefore require users to verify their identity before allowing trading or withdrawals.
Should I keep my crypto on exchange or wallet?
It is recommended that you move larger balances from the exchange to a wallet.
