Exchange and Card Guides
What to Check Before Choosing an Exchange
| Check | Why it matters |
|---|---|
| Available in your state | Some exchanges don't serve every state. Kraken, for example, doesn't serve New York or Maine. |
| Advanced-trading fees | Entry-tier fees are typically well under 1%, while instant buys and card purchases cost much more |
| Staking in your state | Several states restrict exchange staking |
| Security options | Look for an authenticator app or hardware security key support |
| Tax documents | US brokers send Form 1099-DA. Keep your own records for coins you move between platforms |
Whatever you buy, your sales are taxable. See US crypto taxes for beginners and our Form 1099-DA guide.
Choosing Where to Buy Crypto in the US
A crypto exchange is where most Americans first buy Bitcoin. It's also where most beginners overpay. The same $500 purchase can cost a few dollars or more than $20 depending on which screen you use and how you pay. Your choice also decides which coins you can stake in your state, what security tools protect your account, and how your sales are reported to the IRS.
The guides above compare the two largest US exchanges, walk through a first purchase step by step, and explain crypto debit and credit cards, including the tax catch of paying with crypto.
How Exchange Fees Work
- Simple or instant buy: the easiest button, but it combines a spread (a markup on the price) with a transaction fee. It's the most expensive way to buy regularly.
- Advanced trading screen: charges a percentage maker or taker fee. As of September 2026, the entry-tier fees are 0.40% / 0.80% on Kraken Pro and 0.50% / 0.90% on Coinbase Advanced for US users. Limit orders usually pay the lower maker fee.
- Payment method: bank (ACH) transfers are usually cheapest. Debit cards and PayPal are faster but cost more.
- Withdrawals: sending crypto to your own wallet costs a network fee, which varies by coin and how busy the network is.
Getting Started in Four Steps
- Pick an exchange available in your state. Kraken doesn't serve New York or Maine, and staking is restricted in several states.
- Verify your identity and secure the account with an authenticator app or security key before depositing.
- Fund it by bank transfer and make your first purchase. Our Coinbase walkthrough shows each screen.
- Keep records from day one. Export your history each January. Sales are reported on Form 1099-DA, and coins you move between platforms may arrive without a cost basis.
Exchanges and Cards FAQ
Which US crypto exchange has the lowest fees?
On the advanced trading screens, Kraken Pro's entry tier (0.40% maker, 0.80% taker) is slightly cheaper than Coinbase Advanced for US users (0.50% maker, 0.90% taker) as of September 2026. Both are far cheaper than instant buys or card purchases.
Is Coinbase or Kraken better for beginners?
Coinbase is usually easier for a first purchase and is available in almost every state. Kraken suits regular buyers who want lower fees, but it isn't available to residents of New York or Maine.
Are crypto debit cards worth it?
They can be if you spend dollars or a stablecoin and collect crypto rewards. Spending crypto that has risen in value creates a taxable sale at every purchase, so many people prefer a crypto rewards credit card paid in full each month.
Do crypto exchanges report to the IRS?
Yes. US exchanges send Form 1099-DA to customers and the IRS for sales made from 2025 onward, and from 2026 they include cost basis for coins bought on the platform.