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The Top 5 Safest Cryptocurrency Exchanges
The growth of the cryptocurrency sector has led to the creation of numerous cryptocurrency exchanges, each with varying assets available. Each of these exchanges also offers differing funding methods, trading pairs, and fee structures. Perhaps the most important offering any of these exchanges can focus on is security.
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. Fortunately exchanges have become far more secure as the cryptocurrency industry has matured.
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. Here we will outline the safest crypto exchanges and what to look for in exchange security. And at the end of the day the safest crypto exchange will likely be the best crypto exchange for almost everyone.
Here’s a look at the best-of-the-best.
The Safest Crypto Exchanges
Here are our top picks for the safest crypto exchanges to buy and sell digital assets.
Keep reading for more detail on why we made these picks and what exactly makes an exchange “safe”.
- 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
- 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
- The ultimate anything-to-anything exchange with support for foreign currencies, crypto, precious metals and more
- Easy sign-up process with streamlined UI
- Remarkably secure with proof of assets feature
- Available to people in over 150 different countries
- Easy sign-up process
- Lowest transaction fees of any major exchange
- 175+ different digital assets available
- Free deposits
- 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
- One of the longest-standing Bitcoin exchanges
- Serves over 3 million customers globally
- Regulated in the EU and USA
- Easy to understand for new users with iOS and Android apps
- Buy fractional stocks, ETFs, Treasury Bills, alternative assets, and crypto
- Premium gives you advanced data, unique market metrics, and analyst insights for $10 a month
- No commissions and fees for stocks and ETF purchases during market hours
- 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**
- 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
Best Option for Crypto and Stocks: eToro
eToro is the old hand in the crypto world with a history that actually pre-dates Bitcoin. eToro was launched in 2007 as one of the original online investment companies. Since then the company has grown immensely and offers exposure to stocks, commodities, ETFs and crypto.
It’s a one-stop shop for everything and it’s a great way to combine all your investing in one space. Despite the focus on equities, eToro is one of the best crypto exchanges.
Note that only real cryptocurrencies are available to US customers on eToro.
- 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 – The Safest High-Volume Exchange
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
Gemini – Another Extremely Secure Exchange
Gemini may be the safest exchange in the world. 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 is 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 Gemini’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 Gemini’s 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**
Kraken – Safest International Exchange
Kraken may be just as secure as Gemini when it comes to exchange safety. 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.
- 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
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. It is also a member of the Australian Digital Commerce Association.
CoinSpot requires a fairly strict verification process before you are able to trade on the platform. It 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
What's Going on With Crypto Right Now?
While crypto experienced a meteoric rise in the early 2020s, its safe to say 2022 was a significant correction both due to macro events and bad actors in the space.
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, which understandably shook the market to its core. It may be years before we know exactly what wrong with each entity but it’s safe to say greed, mismanagement or hubris played a significant role in some of the collapses.
Still at the protocol level, long-standing projects like Bitcoin and Ethereum are stronger than ever (although price levels have yet to return to their former highs).
There are also quality businesses and exchanges that have successfully withstood the brunt of a harsh crypto winter. With so many bad players expelled from the industry there is plenty of sentiment that it might be up-only from this point on. That remains to be seen but we do know there is still a massive amount of potential in the space and safety and security is more important than ever.
What Makes a Cryptocurrency Exchange Safe?
There are a variety of factors that make an exchange safe, such as licenses, asset storage, insurance and account security. 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 have an insurance policy, whether through the FDIC or a similar body such as private companies? It is important that any exchange you use has some form of insurance in the event of a hack, even if they have never been hacked. This ensures that if their security fails, you will be covered.
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.
What Are the Best Crypto Exchange Features?
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:
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).
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.
Low Fees
This is another factor that’s especially important for high-volume traders but 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.
Frequently Asked Questions About Crypto Exchange Security
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.
