How to Get Started on a U.S. Cryptocurrency Exchange: A Beginner’s Guide to Coinbase, Crypto.com, and Kraken

Nov 11, 2024

6 min read

Introduction: Navigating the Crypto Exchange Jungle in the U.S.

So, you’re ready to buy some crypto, but the whole process feels like trying to order a coffee in a language you don’t speak. With so many exchanges out there, figuring out where to start can be a little overwhelming. But don’t worry—we’ve got you covered. Think of this as your ultimate cheat sheet to setting up accounts on three of the top U.S. exchanges: Coinbase, Crypto.com, and Kraken.

Plus, for those of you ready to dive even deeper, our Dad’s DeFi Space YouTube channel has loads of videos to help you navigate the crypto world and make the most of your investments. Subscribe to Dad’s DeFi Space YouTube channel for in-depth tutorials and market insights to help you succeed in the crypto and DeFi space. Let’s get into it, shall we?

Getting Started: What You Need to Open a Crypto Exchange Account

Before we dive into the individual exchanges, here’s a quick checklist of what you’ll need to get set up:

Personal Identification: In the U.S., you’ll need to verify your identity. Have a government-issued ID handy.
Email Address: Make sure it’s one you check regularly, as most platforms use it for account security.
Phone Number: Many exchanges use 2-factor authentication (2FA) for security, which requires a phone number.

1. Coinbase: The Beginner-Friendly Exchange

Overview: Coinbase is often the go-to exchange for beginners. It’s easy to use, has a clean interface, and offers a wide range of cryptocurrencies. It’s also a U.S.-based, publicly-traded company, which provides an added layer of trust for American investors.

Key Features:

User-Friendly Interface: Coinbase is known for its intuitive design, making it easy for beginners to navigate.
Wide Range of Cryptocurrencies: With over 100 cryptocurrencies, Coinbase offers plenty of options for both beginners and more experienced investors.
Security and Insurance: Coinbase holds a large percentage of its assets offline, and the platform also provides insurance for digital assets in case of theft.

Setting Up Your Account on Coinbase:

Sign Up: Visit Coinbase.com and click on "Get Started" (SIGN UP to Coinbase - HERE).
Verify Your Identity: After entering your basic info, you’ll need to upload a government-issued ID.
Add Payment Method: You can connect a bank account, debit card, or wire transfer for deposits.

Pros and Cons of Coinbase:

Pros: Easy to use, high security, beginner-friendly
Cons: Higher fees than some competitors, fewer trading features on the basic platform

Coinbase Wallet | Smart Wallet

With their new SMART wallet, Coinbase Wallet offers users an easy way to access the realm of Web 3 and decentralized finance (DeFi). Through a user-friendly interface and secure storage options, Coinbase Wallet enables people to interact with advanced technologies and take part in the decentralized financial landscape. Additionally, they aim to introduce retail users to Web3 through their Base Layer 2 blockchain.

2. Crypto.com: The Exchange for Perks and Rewards

Overview: Crypto.com is another popular choice, especially for users interested in earning rewards and accessing unique perks. Known for its sleek mobile app and competitive fee structure, Crypto.com offers more than just trading. From staking and earning interest to a crypto debit card, this platform has something for everyone.

Key Features:

Crypto Earn and Staking: Crypto.com offers competitive interest rates on various assets through its staking program.
Crypto Visa Card: Spend your crypto with the Crypto.com Visa card and earn cashback in CRO (Crypto.com’s native token).
Low Fees: Compared to many U.S. exchanges, Crypto.com has a competitive fee structure.

Setting Up Your Account on Crypto.com:

Download the App or Visit the Website: Head to Crypto.com (Sign up for Crypto.com HERE-UP to 25$ of Free Cryptocurrencies if you use our referral link).
Complete KYC Verification: Upload your ID and verify your identity through the app or website.
Fund Your Account: Add a payment method, such as a bank transfer or debit/credit card.

Pros and Cons of Crypto.com:

Pros: Low fees, multiple earning options, Visa card with rewards
Cons: The app can be complex for beginners, some services are not available in all U.S. states

Crypto.com provides a debit card that allows you to convert and utilize cryptocurrency directly from your exchange wallet. Moreover, they offer a robust rewards system and a diverse selection of alternative coins for selection.

3. Kraken: A Robust Platform for Advanced and Beginner Trade

Overview: Kraken is one of the most established exchanges in the crypto space, known for its robust security features and extensive options for both spot trading and more advanced activities like margin trading. Kraken has a reputation for reliability, making it a solid choice for both beginners and experienced traders alike.

Key Features:

Advanced Trading Options: Kraken offers margin trading and futures, which are rare among U.S.-based exchanges.
Top-Notch Security: Kraken is one of the few exchanges that has never been hacked. It’s considered one of the most secure crypto exchanges.
Wide Selection of Cryptocurrencies: With over 200 cryptocurrencies, Kraken offers a diverse selection for investors.

Setting Up Your Account on Kraken:

Sign Up: Go to Kraken.com and click on “Create Account” (Kraken Exchange Sign up).
Verify Your Account: You’ll need to provide identity verification based on your account level (Starter, Intermediate, or Pro).
Add Funds: Deposit funds through a bank transfer or, for U.S. residents, ACH.

Pros and Cons of Kraken:

Pros: Strong security, advanced trading features, wide crypto selection
Cons: More complex interface, fewer beginner resources, some features require higher account verification

4. Gemini: A Secure, User-Friendly Exchange with Advanced Features

Overview: Gemini is a well-known cryptocurrency exchange founded by the Winklevoss twins. Designed with a focus on regulatory compliance and security, Gemini is a popular choice for investors who value a highly secure and regulated environment. The platform offers a variety of features suited for both beginners and advanced traders, including a straightforward mobile app, advanced trading options, and a unique rewards program.

Key Features:

High Security and Compliance: Gemini is one of the most regulated exchanges in the U.S., with a strong focus on compliance and a SOC 2 Type 2 certification, which sets it apart for security-conscious users.
Gemini Earn: Users can earn interest on their cryptocurrency holdings through Gemini Earn, a program that allows you to lend out assets and earn up to 8% APY.
ActiveTrader Platform: For more experienced users, Gemini offers ActiveTrader, an advanced interface with charting tools, multiple order types, and lower trading fees than the standard platform.

Setting Up Your Account on Gemini:

Visit Gemini.com: Click on “Get Started” (SIGN UP FOR GEMINI Exchange HERE).
Complete Verification: You’ll need to provide government-issued ID and undergo identity verification to comply with U.S. regulations.
Add Payment Method: Gemini allows funding through ACH bank transfer, debit card, or wire transfer.

Pros and Cons of Gemini:

Pros: Highly secure, offers interest-earning options, suitable for both beginners and advanced traders, regulated in the U.S.
Cons: Fees can be higher on the basic platform, especially for small transactions; the exchange has fewer listed assets than some competitors

Gemini offers a unique balance of high-level security with user-friendly features, making it a solid choice if you prioritize regulatory oversight and security.

Conclusion: Choosing the Right Exchange for You

When selecting a cryptocurrency exchange in the United States, it is crucial to consider a platform that aligns with your specific requirements and preferences. Coinbase stands out as an excellent choice for individuals who are new to the world of cryptocurrencies due to its user-friendly interface and simplicity in navigating the trading process. It provides a seamless experience for beginners, offering a smooth entry point into the digital asset market.

On the other hand, Crypto.com caters to users who are interested in exploring rewards and earning opportunities within the cryptocurrency space. This platform not only facilitates trading but also offers various incentives and programs that allow users to earn rewards through their activities on the exchange. For those who are seeking additional benefits beyond trading, Crypto.com presents a compelling option to consider.

For more experienced traders or individuals looking for advanced features, Kraken emerges as a top choice. With a focus on providing a robust trading environment, Kraken offers a wide range of tools and functionalities that cater to the needs of seasoned investors. From advanced charting tools to various order types, Kraken provides a comprehensive platform for users who are looking to engage in more sophisticated trading strategies.

The key to selecting the right cryptocurrency exchange in the U.S. lies in understanding your own requirements and choosing a platform that best suits your needs. Whether you are a beginner seeking simplicity, a user looking for rewards, or an experienced trader in search of advanced features, Coinbase, Crypto.com, and Kraken each offer unique benefits tailored to different preferences within the cryptocurrency market.

Whatever your choice, make sure to check out our Dad’s DeFi Space YouTube channel for in-depth tutorials and market insights to help you succeed in the crypto and DeFi space. And don’t forget to use our affiliate links to get started on each exchange!