5 Best Exchanges to Store Your Cryptocurrency
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. The collapse of FTX in November of 2022 is an example of how even seemingly established companies can quickly become insolvent given the uneven regulatory oversight of the industry.
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.
Editor's note: NerdWallet has removed Gemini from this list following the announcement that customer withdrawals from its rewards program could be delayed amid the fallout from the collapse of FTX. The company says assets not part of its "earn" program can be withdrawn as normal.
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. The collapse of FTX in November of 2022 is an example of how even seemingly established companies can quickly become insolvent given the uneven regulatory oversight of the industry.
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.
Editor's note: NerdWallet has removed Gemini from this list following the announcement that customer withdrawals from its rewards program could be delayed amid the fallout from the collapse of FTX. The company says assets not part of its "earn" program can be withdrawn as normal.
Best Exchanges to Store Your Cryptocurrency
0.30%
or lower for larger balances
$0
Get $150 in Bitcoin
when you purchase or deposit $500 in Crypto. Offer Code: NERDAGCT.
Pros
Lower fees compared to most cryptocurrency exchanges.
Allows transfer of cryptocurrency assets to a personal crypto wallet.
Convenient if you already have a TradeStation brokerage account.
Cons
Comparatively fewer cryptocurrencies offered.
Why We Like It
TradeStation Crypto charges 0.3% or lower on crypto trades, and unlike many other brokerages enables users to transfer crypto to a personal wallet.
0% - 3.99%
varies by type of transaction; other fees may apply
$0
Get $200 in crypto
when you sign up. Terms Apply.
Pros
Offers access to more than 250 crypto assets.
Low minimum to fund account.
Quick crypto withdrawals.
Cons
Higher fees than other cryptocurrency exchanges.
Why We Like It
Coinbase is the largest U.S.-based cryptocurrency exchange, trading more than 30 cryptocurrencies. Its fees, however, can be confusing and higher than some competitors. While Coinbase offers attractive security features, cryptocurrency trading is highly volatile: Always consider the risks.
0%-4%
Varies by type of transaction; other fees may apply
$0
None
no promotion available at this time
Pros
Large selection of crypto assets.
Fees are low if you fund your account with cash transfers.
Cons
Fees for credit and debit purchases are relatively high.
Some services not offered in the U.S.
0.16%-2%
varies by type of transaction; other fees may apply
$0
None
no promotion available at this time
Pros
Large selection of digital assets.
Low fees for advanced traders.
Cons
Limited options for funding accounts.
Not available in all U.S. states.
0%-3.75%
depending on payment method
$0
None
no promotion available at this time
The U.S. arm of the world’s largest cryptocurrency exchange by trading volume, Binance.US offers trading of more than 50 cryptocurrencies.
The U.S. arm of the world’s largest cryptocurrency exchange by trading volume, Binance.US offers trading of more than 50 cryptocurrencies.
Pros
About 125 cryptocurrencies available.
Low or no trading fees.
Cons
Not available in four U.S. states.
Fewer crypto-to-crypto currency pairs than global Binance site.
Smaller selection than global Binance platform.
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.
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 currently $100 million. The platform works with a large selection of cryptocurrencies, at nearly 280. 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: 3.6 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 $100 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 relatively small selection of cryptocurrencies, with 11.
TradeStation's storage offering: 3.9 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: 3.8 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: 3.8 out of 5 stars.
Binance.US
Binance.US has strong security measures in place, such as two-factor identification confirmations at various points throughout the buy or sell process, however it doesn't disclose any information on whether it carries any form of insurance. And while Binance.US hasn't had any major public security incidents, its global parent company Binance suffered a breach in 2019, when hackers stole about $570 million worth of Binance's native token BNB.
Binance.US's storage offering: 3.5 out of 5 stars.
Last updated on January 3, 2023
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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).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
