Finding the Best Crypto Exchange in USA 2021
As cryptocurrency surged in popularity during 2021, choosing the best crypto exchange in USA became critical for investors. With varying fees, security protocols, and coin offerings, selecting the right platform directly impacts your trading success. This comprehensive guide analyzes the top 5 exchanges operating legally in the United States during 2021, helping you make an informed decision based on security, features, and user experience.
Key Selection Criteria for Crypto Exchanges
When evaluating the best crypto exchange in USA 2021, consider these essential factors:
- Security: Regulatory compliance (FinCEN, state licenses), cold storage, 2FA, and insurance coverage
- Fees: Trading commissions, deposit/withdrawal costs, and spread margins
- Supported Assets: Variety of cryptocurrencies beyond Bitcoin and Ethereum
- User Experience: Intuitive interface for beginners and advanced charting for pros
- Payment Methods: ACH transfers, wire deposits, and debit card options
- Liquidity: Ability to execute large orders without significant price slippage
Top 5 Crypto Exchanges in USA for 2021
1. Coinbase
The most user-friendly platform for beginners, featuring FDIC-insured USD wallets and instant debit card purchases. Supported 50+ cryptocurrencies with industry-leading security. Downsides included higher fees (1.49% per trade) and limited advanced tools.
2. Kraken
Preferred by active traders for its low fees (0.16%-0.26%) and professional charting tools. Offered 60+ coins with robust security audits. Margin trading available in eligible states. Complex interface challenged some beginners.
3. Binance.US
Binance’s American subsidiary provided access to 50+ coins with the lowest fees (0.1% spot trading). Featured staking rewards and API integrations. Limited customer support and regulatory scrutiny were notable concerns.
4. Gemini
Founded by Winklevoss twins, Gemini excelled in security with SOC 2 compliance and insurance coverage. Offered 40+ coins and free ACH deposits. Higher trading fees (up to 1.49%) and fewer altcoins than competitors.
5. eToro USA
Unique social trading platform allowing copy-trades of expert investors. Supported 15 major cryptocurrencies with commission-free trading. Limited coin selection and $5 withdrawal fees were drawbacks.
Getting Started with Crypto Exchanges
Follow these steps to begin trading:
- Verify identity with government-issued ID and proof of address
- Connect payment method (bank account or debit card)
- Enable two-factor authentication (2FA)
- Start with small trades to learn platform mechanics
- Withdraw crypto to private wallet for long-term holdings
Frequently Asked Questions (FAQ)
Q: Were crypto exchanges legal in the USA during 2021?
A: Yes, platforms operating with proper state money transmitter licenses and FinCEN registration were fully legal.
Q: Which exchange had the lowest fees in 2021?
A: Binance.US offered the most competitive fees at 0.1% per spot trade, while eToro provided commission-free crypto purchases.
Q: Could I buy Bitcoin instantly?
A: Coinbase and eToro offered instant debit card purchases, while ACH transfers took 1-3 days on most platforms.
Q: Were there tax implications?
A: Yes, all trades were taxable events. Exchanges provided 1099 forms for transactions exceeding $20,000.
Q: Which exchange was best for altcoins?
A: Kraken and Binance.US offered the widest selection of altcoins beyond major cryptocurrencies.
Q: How did exchanges protect user funds?
A> Top platforms used cold storage for 95%+ of assets, SSL encryption, and mandatory 2FA. Gemini and Coinbase provided insurance coverage.
Selecting the best crypto exchange in USA 2021 required balancing security, fees, and functionality. While Coinbase excelled for beginners and Kraken for professionals, all five platforms provided legitimate pathways into the crypto market during this pivotal year. Always verify current regulations as exchange offerings evolve.
