Best Crypto Exchanges of February 2025

Guide to Understanding What is a Crypto Exchange

Cryptocurrency exchanges are similar to the ones available for traditional fiat currencies like USD, EUR or CAD. You simply add funds to your exchange account, and then you can swap that currency for a different one. Many people make their first deposits on cryptocurrency exchanges with a fiat currency and then trade it for a cryptocurrency like Bitcoin.

Once you’ve acquired a cryptocurrency, you can also trade it for a different cryptocurrency. So you can trade your Bitcoin for Ethereum or your Ethereum for Litecoin or Polkadot. There are literally thousands of different trading pairs available on different cryptocurrency exchanges around the world.

Your cryptocurrency account can be funded through your bank using ACH in the USA or SEPA in Europe. Most of the better crypto exchanges also offer you the ability to buy the top cryptocurrencies directly with your credit or debit card.

Once you purchase a cryptocurrency on the exchange, you may want to transfer it to the best crypto wallet that you control. If you decide to leave your digital currency on the trading platform, then you are free to engage in cryptocurrency trading. Top cryptocurrency exchanges offer competitive trading fees, have high trading volumes, easy to use trading platforms and top-quality customer support.

Most people use cryptocurrency exchanges for three distinct reasons:

➡️ To buy cryptocurrency like Bitcoin or Ethereum

➡️ To sell cryptocurrency for fiat currency like USD or EUR

➡️ To trade one cryptocurrency for a different one

How to Choose the Best Crypto Exchange

We’d argue that security is easily the most important factor for a crypto exchange because if you can’t trust an exchange with your coins, then every other feature of the service is essentially pointless.

Other than security, there are some features that you should look for in a good crypto exchange. Use handy checklist before choosing:

✔️ Security Features

Cold Storage and Management of Customer Funds

The best exchanges will store over 90% of customer assets in cold storage, where they can’t be accessed in the case of a security breach. Likewise, the best crypto exchanges never lend out customer funds and shouldn’t even consider doing so.

Proof of Reserves

The best exchanges provide a clear proof of reserves page where users can verify the assets held for themselves and by the exchange. They should be audited as well.

Licenses

Perhaps the most obvious security feature of an exchange is having the proper regulatory licenses. Make sure an exchange is licensed for operation in your jurisdiction.

Extra Security Layers

Top crypto exchanges offer extra layers of security for your account such as two-factor authentication (2FA) or SMS code requirements for withdrawals.

✔️  Customer Support

It’s especially important to have good customer service and support when you’re just getting started with crypto. Good customer support will help you with your crypto questions and issues.

✔️ Available Cryptocurrencies

Bitcoin and Ethereum are available on nearly every exchange, but there are thousands of different coins that might be of interest to you. Make sure the exchange you’re interested in offers the digital assets that you’d like to trade.

✔️ Fees

Crypto exchange fees are extremely important to high-volume traders because it cuts into their bottom line. If you’re new to crypto, then paying a 2% fee on your initial purchase isn’t the end of the world. But if you intend to make lots of trades, you should probably find a low-fee exchange.

✔️ Payment Methods

You’ll likely want to use a debit card, bank transfer, wire transfer, or credit card to fund your account. Some exchanges offer limited payment methods, however. Make sure the crypto exchange you’re signing up for offers the payment method of your choice. The best crypto exchange might not be the best for you if you can’t make a deposit.

Kraken is renowned for providing Proof of Reserves. Credit: Kraken

Expert Tips To Why Using Crypto Exchange is Beneficial

Why Store Crypto on an Exchange?

While self-custody is ideal for security, some users prefer the convenience of storing assets on an exchange. Here’s why:

• Staking: Many exchanges provide both liquid and locked staking options, allowing you to earn interest on assets. Liquid staking offers flexibility, while locked staking provides higher rewards but restricts access during the staking period.
• Events and Rewards: Top exchanges host trading competitions with prizes, including cryptocurrency, gadgets, and even cars. These events provide an opportunity to earn while trading.
• Convenience and Cost Efficiency: Keeping assets on an exchange allows for quick trades without the hassle of network fees involved in transfers. This convenience is especially beneficial for active traders.

While cryptocurrency promotes self-sovereignty, using a reputable exchange for storage is not inherently wrong. The best program should align with your trading needs, security preferences, and financial goals.

Can Exchanges Accept All Card Types?

Short answer: no. Not all cryptocurrency exchanges accept credit card and bank transfer deposits, and some only support these methods through specific financial institutions, such as SEPA. Some cryptocurrency exchanges exist only for trading cryptocurrency, and therefore only accept deposits and withdrawals in cryptocurrency.

We would advise you choose a crypto exchange from our selection and checkout our reviews of them. Choose an exchange where you’ll be able to buy and sell cryptocurrency with fiat currencies such as USD, EUR, GBP, or CAD. Each cryptocurrency exchange will offer different fees for the varying deposit and withdrawal methods that they accept. So think about how you want to fund your account and whether you’re planning on trading or holding your digital currency. Once you have determined that, you can look through our crypto exchange reviews for the one that will make your funds go the farthest.

An example of a crypto exchange dashboard. Credit: Coinbase.

What To Do After Processing a Crypto Exchange

The crypto you bought is now on the cryptocurrency exchange and is stored in your exchange wallet. This is considered a noncustodial wallet, meaning you do not have complete control over your crypto assets stored in your wallet, the exchange does. Since exchanges deal with massive volumes of money and store large quantities of assets at many wallet addresses, they are extremely tempting targets for hackers. The best crypto exchanges cycle assets to cold storage to reduce their exposure in the rare event of a hack.

Here are the safest crypto exchange platforms we recommend.

💡 Top tip from us: The safest thing you can do with your cryptocurrency is to store it in a software or hardware wallet to which you hold the private keys.

• Software wallets are often free and are certainly a step-up in security compared to keeping them on the exchange.
• Hardware wallets such as the Ledger Nano Xor Trezor Model T are some of the best ways to store your assets in cold storage, meaning your crypto assets are offline with no connection to the internet, making it extremely low risk of being hacked.

Take a look at some of the best crypto wallets on the market today.

Once you’ve secured your crypto, there are loads of different things you can do with it, including the following:

👉 Send it to friends and family or clients

👉 Stake it to earn a passive yield

👉 Use it to buy NFTs

👉 Play around with DeFi

👉 Trade crypto with the goal of earning a profit

👉 Simply hold it until it’s (hopefully) worth more

An example of a cryptocurrency hardware wallet.