There are many exchanges you can use to buy Bitcoin, Ethereum and other cryptocurrencies, but some are better than others.
We researched some of the leading crypto exchanges to bring you what we believe to be the five best crypto exchanges for UK traders in 2022.
But first a word of caution to anyone considering investing in cryptocurrencies:
Your capital is at risk. Investments can go up and down in value, so you could get back less than you put in. Cryptoassets are highly volatile and unregulated in the UK and are not eligible for any form of regulatory consumer protection.
Gate.io - 4.8/5 stars
Tradable coins: 1,300+
Trading fees: 0.2% maker fee, 0.2% taker fee
About the exchange
Since 2017, Gate.io offers a huge number of tradable coins, competitive trading fees, discounts to holders of its native currency - GateToken - and benefits, such as early access to new coin launches.
Pros
- 1,300 tradable coins
- Low fees
Cons
- Hacked in 2019
- May be unsuitable for beginners
Kraken - 4.6/5 stars
Tradable coins: 120+
Trading fees: 0.9% for stablecoins, 1.5% for other coins
About the exchange
Founded in 2011, Kraken is one of the market’s oldest exchanges. Kraken offers a decent number of tradable coins, advanced trading tools and margin trading. Its trading fees aren’t the lowest for basic Kraken users, but Kraken Pro users get discounts.
Pros
- Advanced features
- Good customer support
Cons
- Complaints about hacked accounts
- Not the lowest trading fees
Kucoin - 4.6/5 stars
Tradable coins: 600+
Trading fees: 0.1% maker fee, 0.1% taker fee
About the exchange
With a large number of tradable coins and low fees, Kucoin has a lot to offer. The outfit is headquartered in the Seychelles, offers advanced trading features and volume discounts on fees.
Pros
- Large number of coins
- Low fees
Cons
- Hacked in 2020
- Funds are not insured
Binance - 4.4/5 stars
Tradable coins: 600+
Trading fees: 0.1% maker fee, 0.1% taker fee
About the exchange
Binance is the biggest player in the crypto exchange market by daily trading volume. It offers a large number of tradable coins with low trading fees. Binance users can trade crypto to crypto and fiat to crypto, with several payment methods accepted.
Pros
- Large number of coins
- Low fees
Cons
- Hacked in 2019
- May be unsuitable for beginners
Crypto.com - 4.4/5 stars
Tradable coins: 250+
Trading fees: 0.4% maker fee, 0.4% taker fee
About the exchange
Despite fewer tradable coins and higher fees, Crypto.com scores well for cybersecurity and offers (limited) margin trading. Its native token Cronos (CRO) can be used to pay fees and earn benefits.
Pros
- Good number of coins
- Strong security
Cons
- Higher fees for low-volume trades
Methodology
We studied 25 crypto exchanges, looking at their features, options and fees to establish a ranking of the best options.
The following is a list of key variables that were taken into account:
- Number of tradable coins
- Number of fiat currencies accepted
- Trading fees
- Exchange liquidity
- Advanced trading features
- Margin trading availability
- Customer service
- Educational resources
- Security
- Staking and rewards
- Crypto lending
We scored the exchanges for each of these variables, with some, such as number of coins and trading fees, given special weighting. Each exchange was given a total score and ranked accordingly.
Choosing an exchange
There are many things to consider when weighing up your options, but security, fees and tradable coins are worth focussing in on.
All exchanges are a target for hackers. Many have fallen victim, but have used the learnings to tighten up security. Bigger-name exchanges have more to lose by failing to secure their users’ wallets, but larger exchanges are also more lucrative for hackers.
No exchange can make itself impenetrable, so it’s a good idea to look at what kind of insurance an exchange offers, and whether you’d get your stolen coins back following a security breach.
If you have or you’re planning to have significant crypto holdings, you should consider spreading the total across multiple exchanges to minimise the risk.
As for fees, the more you have to pay, the less you have to invest. Check what fees apply and when they’re payable. For example, is there a fee to withdraw funds from your account?
The number of tradable coins an exchange offers can be important, depending on what your investment strategy looks like. If you’re interested in specific altcoins such as Luna (Terra) or ApeCoin, be sure to check whether they’re even available on your chosen exchange.
Frequently asked questions (FAQs)
What is a crypto exchange?
A crypto exchange is a website or app where people go to trade in cryptocurrencies.
How do crypto exchanges work?
Crypto exchanges provide a platform for people to buy and sell cryptocurrencies, and usually offer secure storage for the private and public keys you need in order to make trades. Users can deposit and withdraw funds, track prices and trends and manage their assets.
How do you buy crypto?
First, you need to open an account on a crypto exchange. Most exchanges offer free accounts and offer additional features for a fee.
To comply with anti money laundering regulations, many exchanges will ask you to prove your identity by sharing a picture of photo identification. Some also use biometric security features that will ask you, for example, to use your phone’s camera to establish you’re a real person present at the time of verification.
Once you have an account, you’ll need to fund your account with a fiat currency such as Pounds Sterling or US Dollars.
After you’ve made a deposit, you can navigate to the page of the currency you’re interested in and input how much you’d like to exchange. Once confirmed, you’ll see your newly-acquired assets in your account.
How do I choose a crypto exchange?
When doing your research, check what each exchange has to say about its security. And find out if it’s ever been hacked and how it responded. Look at how many tradable coins an exchange has (and whether or not it has the specific coin you’re interested in) and what it charges in fees for trades, withdrawals, etc. Generally speaking the more security and coins an exchange has, and the lower its fees, the better choice it is for new investors.
How do I open a crypto exchange account?
Signing up for an account is usually as easy as providing an email address, some basic personal information and choosing a strong password. You might also be asked to set up two-factor authentication with your mobile phone number for added security.
It’s common for exchanges to carry out identity checks on you before you can carry out any trades. This is to protect against fraud and money laundering, and can involve uploading an image or scan of ID documents and, increasingly, performing a series of actions in front of your webcam or phone camera to prove you’re a real person who’s genuinely present at the time of opening the account.
