Centralised exchanges are the easiest way to buy and trade crypto — but they also hold your assets. The collapse of FTX in 2022 showed how quickly things can go wrong. Use these eight checks before choosing an exchange.
1. Licensing and regulation
Prefer exchanges licensed in strong jurisdictions: MiCA (EU), NYDFS (US), FCA registration (UK), VARA (Dubai) or MAS (Singapore). Regulation is not a guarantee, but it raises the bar.
2. Proof of Reserves
Leading exchanges publish Proof of Reserves (PoR) — cryptographic evidence that customer assets are fully backed. Look for regular, independently verified reports.
3. Security track record
Has the exchange been hacked? If so, did it make users whole? A transparent response is a good sign.
4. Account security features
Enable 2FA, anti-phishing codes and withdrawal address whitelisting. Avoid exchanges that do not offer them.
5. Fees
Compare maker/taker fees, deposit and withdrawal fees and spreads on instant-buy features. Our crypto exchange rankings show fees for every platform.
6. Liquidity
High liquidity means tighter spreads and less slippage. Large exchanges such as Binance, OKX and Bybit dominate here.
7. Supported coins and products
Do you need futures, staking or copy trading? Check availability in your country.
8. Self-custody for long-term holdings
Not your keys, not your coins. Keep long-term holdings in a hardware or self-custody wallet and use exchanges for trading.
See our picks for the best low-fee exchanges and exchanges with Proof of Reserves.