As cryptocurrency surged in popularity throughout 2021, selecting the best crypto exchange in the USA became crucial for investors navigating this dynamic market. With regulatory compliance, security threats, and evolving features, American traders needed platforms that balanced accessibility with robust functionality. This comprehensive guide reviews the top exchanges available to US users in 2021, analyzing key factors like fees, security, and supported assets to help you make an informed decision.
Critical Factors When Choosing a Crypto Exchange
Before diving into our top picks, consider these essential criteria for evaluating any platform:
- Regulatory Compliance: Must adhere to US regulations like KYC/AML requirements
- Security Protocols: Look for cold storage, 2FA, and insurance coverage
- Fee Structure: Compare trading fees, deposit/withdrawal costs, and hidden charges
- Supported Cryptocurrencies: Availability of major coins (BTC, ETH) plus altcoins
- User Experience: Intuitive interface for beginners and advanced tools for pros
- Customer Support: Responsive service via live chat, email, or phone
Top 5 Crypto Exchanges for US Traders in 2021
Based on rigorous testing and user feedback, these platforms stood out in 2021:
- Coinbase
Ideal for beginners with its user-friendly app and educational resources.
Pros: FDIC-insured USD balances, 50+ cryptocurrencies, instant purchases
Cons: Higher fees (up to 0.50% per trade), limited advanced features - Kraken
A veteran exchange favored for low fees and robust security.
Pros: 0.16% maker fees, 120+ coins, advanced charting tools
Cons: Complex interface for new users, slower verification times - Gemini
Regulatory-focused platform with strong institutional backing.
Pros: SOC 2 certified, free ACH transfers, Gemini Earn program
Cons: Limited altcoin selection, higher withdrawal fees - Binance.US
Streamlined US version of the global exchange giant.
Pros: Ultra-low 0.1% spot fees, 60+ cryptocurrencies, high liquidity
Cons: Reduced features compared to international Binance, state restrictions - eToro
Unique social trading platform with copy-trading features.
Pros: Commission-free stock/crypto trades, demo account, community tools
Cons: $5 withdrawal fee, spread markups on crypto
Getting Started with Your Chosen Exchange
Follow these steps to begin trading securely:
- Complete identity verification (ID + proof of address)
- Link a bank account or debit card for deposits
- Enable two-factor authentication (2FA)
- Start with small trades to test platform functionality
- Withdraw a portion of crypto to a private wallet for long-term holdings
Frequently Asked Questions (FAQ)
Q: What was the most secure US crypto exchange in 2021?
A: Gemini led in security with SOC 2 compliance and cold storage insurance, followed closely by Coinbase and Kraken.
Q: Which platform offered the lowest fees?
A: Binance.US had the most competitive fee structure at 0.1% per trade, while Kraken and eToro also offered low-cost options.
Q: Could US residents use international exchanges?
A: Most global platforms restricted US users due to regulations. Exceptions included specially licensed versions like Binance.US and FTX US (before its 2022 collapse).
Q: Were there tax implications for US traders?
A: Yes. All exchanges provided IRS Form 1099-K for transactions over $20,000, requiring users to report capital gains.
Choosing the best crypto exchange in the USA for 2021 depended on individual needs: Coinbase for simplicity, Kraken for cost-efficiency, or Gemini for ironclad security. While market conditions have evolved, these platforms set industry standards that continue influencing today’s trading landscape. Always verify current regulations and conduct independent research before investing.
