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The Top 5 Safest Cryptocurrency Exchanges
Cryptocurrency has made brief appearances in the mainstream, but 2024 might be the year it gains full acceptance by Wall Street. After a long, hard-fought battle, the cryptocurrency community and its advocates finally got approval for Bitcoin ETFs in the United States. As a result, much of the traditional investment community has now joined the exciting journey into the world of digital assets.
The growth of the cryptocurrency sector has led to the creation of numerous cryptocurrency exchanges, each with varying assets available. Each of these exchanges offer different funding methods, trading pairs, and fee structures. If you are wondering what makes an exchange safe compared to another, and which exchanges are the safest, you have come to the right place.
We’ll outline the safest crypto exchanges and what to look for in exchange security. Let’s have a look at the best of the best in the market right now.
The Safest Crypto Exchanges Compared
As the digital asset class pushes higher in terms of market cap, it has become more important than ever to ensure that your assets are safe and that exchanges are using top-grade security measures. You want to make sure you’re using the most secure crypto exchanges. Fortunately, exchanges have become far more secure as the cryptocurrency industry has matured. Even with ETF’s, the best way to buy cryptocurrency is via cryptocurrency exchanges, each with varying assets available.
Here are our top picks for the safest crypto exchanges to buy and sell digital assets.
Crypto Exchange
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eToro — Best option for crypto and stocks
One of the biggest wants of crypto traders has been the ability to invest in stocks from the same account. After all, a one-stop-shop would be ideal instead of having one trading platform for cryptocurrencies and then one platform for stocks. eToro, which is one of the longest-standing companies in the game, has long worked to be that one, all-encompassing place and they’ve pretty much achieved that.
If you’re looking for a taste of crypto and stocks, eToro is the place to be. With more than 5000 total tradable assets (crypto and stocks), you can pretty much find whatever you need. It’s nice to have it all in one place – especially if you want to take your gains from one realm to the other.
- Great for crypto beginners
- Solid crypto/general trading platform
- Reliable company with solid trust in the community
- Fully supports credit cards for deposits and withdrawals
Coinbase – Best platform for beginners
Coinbase is one of the biggest cryptocurrency exchanges in the world and one of the best reputations for security. The exchange keeps nearly 99% of its users’ digital assets in offline cold storage. Coinbase also requires that you validate a phone number by entering a code they send you through a text message. Coinbase has mandatory two-factor authentication (2FA) on your account, to ensure that your account remains secure. Coinbase is also a publicly traded company meaning it has undergone extra financial and security examinations to reach that status.
Upon deleting your account, Coinbase gives users the ability to request the information they gave to Coinbase in the first place. You can also request that Coinbase deletes the information from their servers. Coinbase gets extra points for properly handling and discarding users’ personal information.
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
Kraken – Safest international exchange
In terms of cyber security, Kraken may be just as secure as Gemini. They comply with financial regulations for the US, Canada, Australia, UK and more. The exchange has never been hacked despite being in operation since 2011. Kraken has a dedicated security team, and their servers are under 24/7 surveillance by armed guards and video monitors.
Kraken keeps 95% of deposits in offline, air-gapped storage while keeping full reserves so they can accommodate withdrawals at any time. They conduct penetration testing, meaning they attack their own systems to find weaknesses, while also running bug bounties, meaning they encourage the community to find problems in their security with financial incentives. There is 24/7 live chat and phone support from 6 AM to 6 PM EST Monday to Friday while also offering 2FA.
One other bonus: Kraken actually has one of the best exchange rates for traditional currencies. They’ll beat almost any traditional bank if you’re trying to exchange from U.S. Dollars to Canadian, for example. They’re great for that and, of course, one of the best FIAT to crypto currency as well.
- Exceptionally secure exchange with proof of reserves
- Supports many different funding options
- Accepts users from across the globe including USA and Canada
- Very high trading volume
Gemini – Best platform for security regulations
Gemini is a New York trust company that undergoes regular bank exams and is subject to the cyber security regulations required by the New York Department of Financial Services, which are quite strict. Gemini may be the safest exchange in the world. It’s the world’s first cryptocurrency exchange and custodian to complete a SOC 1 Type 2 exam, SOC 2 Type 2 exam, and earn an ISO 27001 certification.
The SOC 1 evaluates the design and implementation of the platform’s financial operations and reporting controls, while the SOC 2 evaluates the design and implementation of their security, availability, and confidentiality controls.
The majority of their cryptocurrency is held in an offline, air-gapped cold storage system. A small amount is stored in a hot wallet for transactions, but that amount is also insured. The site also uses every common personal security measure including two-factor authentication (2FA) and hardware security keys.
- A trusted, and secure cryptocurrency exchange
- Gemini is a New York trust company regulated by the New York State Department of Financial Services (NYSDFS).
- Gemini Derivatives offers customers a trusted venue to trade derivatives.
- The world’s first SOC 1 Type 2 and SOC 2 Type 2 certified crypto exchange and custodian
- Multiple product offerings: The Gemini Credit Card®, Gemini Staking*, Gemini ActiveTrader, Gemini Derivatives**
CoinSpot – Safest Australian exchange
CoinSpot is one of the safest cryptocurrency exchanges available in Australia. It complies with Australia’s Anti-Money Laundering (AML) laws enforced by AUSTRAC. The platform is also a member of the Australian Digital Commerce Association.
They require a fairly strict verification process before you are able to trade on the platform. The site uses a multi cryptocurrency wallet system meaning they provide a wallet for each and every crypto asset they offer and use bank-level security to reduce the risk of a hack. CoinSpot also offers 2FA which requires users to sign off on transactions using their phone as an extra layer of security.
- Premier Australian cryptocurrency exchange
- Over 150 different cryptocurrencies available
- Very safe and complies with several different Australian financial law agencies
- Supports POLi for buying cryptocurrency
Exclusive Insights: The State of the Crypto Industry Right Now
While crypto experienced a meteoric rise in the early 2020s followed by a bear market that lasted until late 2023, it’s safe to say 2024 has delivered quite the turnaround.
Remember that in the last bear market, major crypto companies like FTX, Celsius Network, BlockFi, Voyager Invest, 3 Arrows Capital were all found to be insolvent over the course of 12 months. As a lot of the leverage, empty projects and meme coins were flushed out, the strongest projects survived and have thrived.
Of course, Bitcoin leads the market and has for quite some time now. During the bear market drop, Bitcoin dropped less than almost every other coin. And as the market has turned around, Bitcoin has outperformed almost every other coin. While Bitcoin has broken through to new all-time highs in 2024, almost every other coin that was in the Top 100 has failed to do so.
Bitcoin’s rise from the depths of the sub-$20,000 was supercharged by the launch of the ETF in the United States. That has unlocked hundreds of billions of investment. Not only that, it has given Bitcoin a stamp of approval, delivering the credibility and trust it’s been desperately craving from Wall Street.
Ethereum is the second biggest cryptocurrency by Marketcap and it’s also on the cusp of an ETF approval. The U.S. Securities and Exchange has already given the Ethereum ETF’s the greenlight and it’s now just a matter of time before they are cleared for launch. We’ll have to wait and see if Ethereum’s price reaches new all-time highs just as Bitcoin’s has.
Get Ahead of the Game: Where to Secure Your Memecoins
Where can you buy memecoins? That’s the question on everyone’s mind, right? No matter how many times people advise against it, the masses still want to get their hands on some $DOGE or $PEPE. As always, we recommend you do your own research before you invest in anything. That goes for everything from cryptocurrency to memecoins, to traditional stocks, to whatever your neighbor is pitching you.
With memecoins, many of them are readily available on the exchanges we recommend. Places like Binance or exchanges with the most cryptocurrencies available are more likely to have them on the menu. Many of these memecoins can be pointless, unvetted projects, so some exchanges will shy away from them. Nonetheless, where available, you can buy, hold, trade and sell them just as you would Bitcoin or Ethereum.
How We Rate The Most Secure Crypto Exchanges
There are a variety of factors that make an exchange safe, such as licenses, asset storage, insurance and account security. The last thing we want is to have another FTX on our hands. The best crypto exchanges include a mixture of industry-leading security in combination with stringent licensing and auditing.
Below are some of the most important things to consider when looking at an exchange’s security and what they entail.
Licenses
Is the exchange licensed with the country it operates from? This can be FINTRAC for Canada, AUSTRAC for Australia, FINCEN or state licenses for US exchanges, or the FCA for UK exchanges, to name a few. If you are looking at an exchange and they do not have any licenses, then steer clear.
FDIC Insurance/Insurance Policies
Does the exchange offer customer support in the form of a live chat or phone support? An exchange needs to have some sort of customer support that is easily accessible if you run into an issue. Be wary of any exchange that has poor customer support or none.
Customer Support
Does the exchange offer customer support in the form of a live chat or phone support? An exchange needs to have some sort of customer support that is easily accessible if you run into an issue. Be wary of any exchange that has poor customer support or none.
Storage of Assets (Hot vs Cold Storage)
Does the exchange keep the majority of their assets in hot or cold storage? It is important for an exchange to keep most user assets in cold storage because this means they are inaccessible if the exchange is hacked. Make sure the exchange you are using keeps at least 90% of funds in cold storage, air-gapped if possible.
Publicly Traded Company
Is the exchange a publicly traded company? If they are, like Coinbase, then it means that they have undergone audits and other regulatory checks to reach that listing. While an exchange does not need to be publicly traded to ensure security, it helps because it means that the exchange has undergone thorough examination.
Two Factor-Authentication (2FA) and IP Tracking/Whitelisting
Does the exchange require users to enable 2FA or other IP tracking or whitelisting options? These security features help ensure that only the user whose account it is can perform transactions. It is better security if the exchange forces the use of 2FA, as this means they want users to play a role in their own account security.
Bug Bounties
Does the exchange offer bug bounties? An exchange that offers bug bounties is encouraging users to find fault with their programming so that they can improve their security.
It is a good thing if an exchange offers this type of bounty because it means that are confident in their security and that they are intent on continuously improving it. The same can be said of penetration tests.
Investment Tips: The Best Crypto Exchange Features You Need
We’d argue that safety should always be the #1 feature of a cryptocurrency exchange but here are some other factors that are important to crypto users:
1. Good Software
A well-designed crypto exchange website will generally be fast, powerful and easy-to-use. A good interface might even save you money in the long-run if you can avoid making errors (such as sending crypto to the wrong wallet).
2. Diversity of Cryptocurrencies
This especially important for high-volume traders who like to swap between a large number of coins. It’s not as important to crypto users that like to stick the major cryptos like Bitcoin or Ethereum. Keep in mind that some exchanges will offer certain coins for purchase but not for trading. So make sure the crypto exchange you’re interested in has the cryptos you’re looking for.
3. Low Fees
This is another factor that’s especially important for high-volume traders that want to buy cryptocurrencies. No one likes paying outrageous fees for buying crypto. You’ll want pay close to attention to deposit fees (which should be low, or free for certain methods) and withdrawal fees. If you’re a high-volume trader you’ll also want to pay attention to the maker and taker fees on each trade. Note that “instant-buy” purchases with credit or debit cards almost always feature the highest fees.
FAQ
Unfortunately, nothing in life is 100% safe and that goes for crypto exchanges as well.
While we’ve compiled a list of the most secure crypto exchanges on that planet there are no guarantees and there is a history of exchanges going rogue.
That’s why it’s important to at least consider taking a portion of your cryptocurrency to a private wallet. It’s especially important if you build a considerable stockpile of crypto.
As we said above, nothing is 100% secure and that goes for crypto wallets too.
Generally with crypto wallets (especially the hardware versions) the likelihood of getting your funds stolen is relatively low but user error is more prevalent. That said, if you take the time to learn a little about securing your own crypto you should be fine.
Many crypto users like to have their coins spread across several wallets/exchanges to avoid losing everything in one fell swoop.
Usually it’s because they are mismanaged but several have also fallen prey to hacks or technical errors. Modern crypto exchanges are technologically more superior to ones in the past but, at the end of the day, you’ve got to trust the people running the exchange.
Proof-of-reserves is a system so that users can actually see that an exchanges assets are backed 1:1. There have been some criticisms of proof-of-reserves (it doesn’t show liabilities) but it’s definitely a good start.
Crypto exchanges make the majority of their money through transaction fees on crypto trading but other verticals are expanding rapidly including custody services, NFT market places and more.
We recommend centralized crypto exchanges over decentralized. Decentralized are unregulated and unlicensed, so it’s a bit of the Wild West. Centralized exchanges offer far greater safety and security.
