The Top 5 Safest Cryptocurrency Exchanges - CryptoVantage (2024)

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.

Reviewed by Arthur Crowson

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”.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Your capital is at risk. This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal. Only real cryptocurrencies are available to US customers.

Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong

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.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Your capital is at risk. This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal. Only real cryptocurrencies are available to US customers.

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.

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.

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.

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.

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.

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