How to Choose a Crypto Exchange: Licences, Fees, Reserves, Support

For most people, an exchange is where crypto starts. It is also where many people have lost it. When FTX collapsed in November 2022, customers discovered that a famous brand, celebrity ads and a slick app said nothing about where their money actually was. Choosing an exchange is less about which coins it lists and more about who holds your assets, under which rules, and how easily you can leave.

Five checks before you open an account

• Licence where you live. In the EU, look the firm up on ESMA's MiCA register; in the UK, on the FCA register; in New York, with the NYDFS; in Brazil, with the Banco Central, whose authorization rules took effect on 2 February 2026. A global brand does not mean the local entity serving you is licensed.
• Total cost. Compare maker and taker fees at the base tier, the spread on the simple buy button, and deposit and withdrawal charges. Published base-tier spot fees range from zero at Bitfinex to 0.60% maker and 1.20% taker on Coinbase Advanced and Gemini ActiveTrader.
• Proof of reserves. Binance, OKX, Bybit, Bitget and Kraken publish Merkle-tree reports; Coinbase relies instead on audited financial statements filed as a listed company.
• Custody and security. Look for segregated client assets, cold storage, hardware-key two-factor login and withdrawal address allow-lists.

The best exchange for you is the one you can leave quickly, with all your money, on a bad day.

Support, exits and red flags

The fifth check is the exit. Find out how withdrawals to your own bank account work, how long they take and whether support is reachable by a human. Past enforcement matters too: Binance pleaded guilty in the US in 2023 and agreed to pay about $4.3 billion, OKX agreed to pay more than $500 million in 2025 and KuCoin about $300 million the same year. In Brazil, the CVM issued stop orders against Binance in 2020 and Bybit in 2022 over derivatives offered without authorization. Walk away from guaranteed yields, pressure to deposit, terms that do not name a legal entity, or any request to pay a fee before you can withdraw.

A simple process

• Shortlist two or three platforms authorized, or formally in the authorization process, where you live.
• Read the fee schedule and the terms of service, including what happens to your assets if the company fails.
• Open the account, enable app-based or hardware-key two-factor login and turn on a withdrawal allow-list.
• Deposit a small amount, then withdraw it to your bank and to your own wallet before you commit more.

Risk note: this is general information, not investment advice or a recommendation of any platform. Cryptoassets are highly volatile, can lose most of their value and, held on an exchange, are generally not covered by deposit insurance. Licences and fees change, so check each regulator's register and each exchange's official pages before acting.