5 Best Exchanges to Store Your Cryptocurrency of May 2022
NerdWallet did an in-depth examination of the storage options available on the best cryptocurrency exchanges we have reviewed.
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One of the most important decisions you'll make about your digital assets is how you want to store them. Keeping track of the private keys that prove your ownership of cryptocurrencies is essential; if you lose them, you may never be able to recover your holdings.
A relatively simple way to hold onto your cryptocurrency is to outsource the storage to the exchange where you bought it or where you plan to trade it. Many leading platforms offer storage services, often enticing customers to do so with rewards and "staking" programs that allow them to earn more cryptocurrency.
Entrusting your cryptocurrency to a third party involves some risk. Exchanges can be victimized by hackers or subject to technical failures, and some have suffered costly losses. Remember that cryptocurrencies are not generally subject to the Federal Deposit Insurance Corporation coverage that protects your bank balance, nor are they eligible for Securities Investor Protection Corporation coverage like that held by traditional brokers. Some, but not all, exchanges have private insurance.
If you want maximum control over your assets and their security, you might want to consider "cold storage," in which you use a digital wallet that is not connected to the internet. But if you’re only holding relatively small amounts, or you’re not ready to dive into cold storage, exchanges have taken a variety of steps to make their customers feel comfortable.
NerdWallet did an in-depth examination of the storage options available on the best cryptocurrency exchanges we have reviewed. Among the factors we considered were insurance against the loss of crypto assets, the costs of using a platform, prior data security incidents and rewards offered by the different platforms.
One of the most important decisions you'll make about your digital assets is how you want to store them. Keeping track of the private keys that prove your ownership of cryptocurrencies is essential; if you lose them, you may never be able to recover your holdings.
A relatively simple way to hold onto your cryptocurrency is to outsource the storage to the exchange where you bought it or where you plan to trade it. Many leading platforms offer storage services, often enticing customers to do so with rewards and "staking" programs that allow them to earn more cryptocurrency.
Entrusting your cryptocurrency to a third party involves some risk. Exchanges can be victimized by hackers or subject to technical failures, and some have suffered costly losses. Remember that cryptocurrencies are not generally subject to the Federal Deposit Insurance Corporation coverage that protects your bank balance, nor are they eligible for Securities Investor Protection Corporation coverage like that held by traditional brokers. Some, but not all, exchanges have private insurance.
If you want maximum control over your assets and their security, you might want to consider "cold storage," in which you use a digital wallet that is not connected to the internet. But if you’re only holding relatively small amounts, or you’re not ready to dive into cold storage, exchanges have taken a variety of steps to make their customers feel comfortable.
NerdWallet did an in-depth examination of the storage options available on the best cryptocurrency exchanges we have reviewed. Among the factors we considered were insurance against the loss of crypto assets, the costs of using a platform, prior data security incidents and rewards offered by the different platforms.
Best Exchanges to Store Your Cryptocurrency
on Gemini's website
Gemini
Fees
0.5% -depending on payment method and platform
Account minimum
$0Promotion
$20 of BTCfor new users after trading $100 or more within 30 days
on Gemini's website
on Coinbase's website
Coinbase
Fees
0.5% -varies by type of transaction; other fees may apply
Account minimum
$2Promotion
Get $5 in Bitcoinwhen you make your first trade. Terms Apply.
on Coinbase's website
on TradeStation's website
TradeStation Crypto
Fees
0.30%or lower for larger balances
Account minimum
$0Promotion
Get $10 in FREE Bitcoinon all newly approved accounts.
on TradeStation's website
Crypto.com
Fees
0%-Varies by type of transaction; other fees may apply
Account minimum
$0Promotion
Noneno promotion available at this time
Kraken
Fees
0.9%-varies by type of transaction; other fees may apply
Account minimum
$0Promotion
Noneno promotion available at this time
The star ratings above represent the provider's overall score across a variety of categories. Below, we've included more detail about how we rated these providers specifically for the quality of the experience for customers holding cryptocurrency on their platforms.
Gemini
Gemini has not been the victim of a publicly disclosed cyberattack, and it has secured $200 million in insurance against customer losses of cryptocurrencies due to security breaches. The company also says it keeps U.S. dollars deposited onto its platforms in FDIC-insured banks. Gemini also offers customers a few reasons beyond security to store cryptocurrency on its platform: It supports 52 crypto assets, its website is relatively easy to navigate, and it has some of the lower withdrawal fees we've seen. Gemini also has a highly rated offering for people who are looking to earn rewards on their crypto, though it’s important to note that its insurance doesn't cover assets being used in that program.
Gemini's storage offering: 5 out of 5 stars.
Crypto.com
Crypto.com's rating suffered because of an incident in January 2022 in which it put in place a 14-hour withdrawal outage after reports of unauthorized activity on what it described as a small number of accounts. The service is not the first to be hit with such an incident, however, and it still does have some attractive features for those who choose to hold their crypto on an exchange. Crypto.com’s insurance coverage is the highest among the platforms we've reviewed, at $750 million. The platform works with a large selection of cryptocurrencies, at 180. Crypto.com also offers a wallet service that allows customers to keep assets in their own custody, and there are some rewards offerings associated with that program. Withdrawal fees are middle-of-the-road.
Crypto.com's storage offering: 4.5 out of 5 stars
TradeStation
TradeStation has been branching out from its main business as a stock trading platform to become a player in the crypto space. It has not been hit by a publicly disclosed security breach, and it has a $150 million insurance policy for crypto held on the platform. There are no withdrawal fees for cryptocurrency, though customers can't use their own digital wallets to manage their holdings. TradeStation has a small selection of cryptocurrencies, with five, though it does have a rewards program for assets held on the platform.
TradeStation's storage offering: 4.5 out of 5 stars.
Kraken
Kraken actively dissuades customers from holding crypto on its platform if they're not getting ready to trade it, urging them instead to use wallet services developed specifically for storage. Nonetheless, there are some benefits for those not ready to move their holdings off of Kraken's platform. Its strong security record, its solid staking and rewards program, its large selection of cryptocurrencies and its decent fee structure give Kraken a relatively high score for storage. Note, however, that Kraken says it is not eligible for insurance on the assets held on its platform.
Kraken's storage offering: 4.5 out of 5 stars.
Coinbase
Coinbase says it has insurance, though public documents describing its program do not specify how much. The company's storage offering has its strengths, including an in-house wallet service. Its fees are relatively low, and it offers a large selection of cryptocurrencies. Coinbase had about 6,000 customers' holdings hit by a data breach in 2021. The company said it repaid the customers’ losses in full.
Coinbase's storage offering: 4 out of 5 stars.
Last updated on March 16, 2022
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Methodology
How do we review cryptocurrency platforms?
NerdWallet’s comprehensive review process evaluates and ranks platforms and companies that allow U.S. customers to buy and/or sell cryptocurrency. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgments on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
