4 Best Crypto Exchanges in New York 2025
New York has unique regulations that mean many crypto exchanges that operate in the US can't serve NY investors. Learn about the best New York crypto exchanges.
What crypto exchanges are available to NY residents?
New York has specific operational requirements, including requiring what’s known as a Bitlicense, which means a lot of crypto exchanges that operate in the US generally are unable to do so in New York. There are, however, a number of reputable crypto exchanges to research that have jumped through these hoops in order to serve NY crypto investors, including:
Let’s take a look at each in depth.
Read next: Best US Crypto Exchanges
Coinbase
Coinbase is one of the most popular crypto exchanges in the U.S., known for its beginner-friendly interface and regulatory compliance, making it a top choice for New York residents. The platform allows users to buy, sell, and store a variety of cryptocurrencies, including Bitcoin and Ethereum. While Coinbase has faced some legal challenges, it continues to operate securely and reliably.
Pros:
Easy-to-use interface for beginners
Supports a large selection of cryptocurrencies
Offers educational resources to help users learn about crypto
Cons:
Higher transaction fees, especially for small trades
Control over private keys remains with Coinbase, not users
Read next: How to make money on Coinbase
Robinhood
Robinhood allows users to trade cryptocurrencies with zero commissions, making it a budget-friendly option. Initially known for stock trading, Robinhood has expanded into the crypto world. However, the platform only allows users to trade crypto but does not let them transfer assets to external wallets, which might limit flexibility.
Pros:
No commission fees
Simple, easy-to-use mobile app
Ideal for those already using Robinhood for stock trading
Cons:
Limited cryptocurrency options compared to other exchanges
Lacks advanced trading features
Read next: Best Robinhood Alternatives
eToro
eToro is known for its unique social trading features, allowing users to follow and copy the trades of experienced investors. It’s a great platform for those interested in both crypto and stock trading. Although eToro’s crypto offerings are somewhat limited compared to other platforms, its user-friendly design and educational resources make it a solid choice for beginners.
Pros:
Social trading features allow users to copy experienced traders
Intuitive interface
Offers both stocks and crypto
Cons:
Higher fees compared to other exchanges
Limited selection of altcoins
Read next: How to buy Bitcoin on eToro
Bitstamp
Bitstamp is one of the longest-standing crypto exchanges, offering New York residents a secure and reliable platform for trading cryptocurrencies. Known for its regulatory compliance, Bitstamp is a trusted option for both beginners and experienced traders. The platform supports popular cryptocurrencies like Bitcoin, Ethereum, and XRP, with competitive fees for high-volume trading.
Pros:
Strong reputation for security and reliability
Low fees for high-volume trades
Offers advanced trading tools
Cons:
Limited selection of supported cryptocurrencies
Fewer innovative features compared to newer platforms
Don’t forget the tax bill
Whatever exchange you end up using, your crypto may come with a tax bill. In the US, crypto is generally subject to Capital Gains Tax when you sell, trade, or spend crypto, or Income Tax when you earn new crypto. Fortunately, a crypto tax calculator like Koinly can help you easily manage your portfolio and calculate your tax liability. Try it free today.
FAQs
Is New York crypto friendly?
New York has a mixed reputation when it comes to being crypto-friendly. On one hand, it enforces strict regulations, such as the BitLicense, which aims to protect consumers and prevent fraud. These regulations can make it more challenging for crypto businesses to operate in the state. However, this stringent oversight also ensures that New York-based exchanges are more secure and compliant, creating a safer environment for investors. Learn more in our crypto friendly states guide.
Which crypto exchange is best in New York?
The best crypto exchange in New York depends on your needs. Coinbase is highly regarded for its ease of use, making it ideal for beginners, while Robinhood is great for those looking to trade with zero commissions, but it has limited crypto features. Each exchange has its pros and cons, so consider what features matter most to you.
Is cryptocurrency on the New York Stock Exchange?
No, cryptocurrencies themselves are not directly traded on the New York Stock Exchange (NYSE). However, there are cryptocurrency-related stocks and investment products, such as Grayscale’s Bitcoin Trust (GBTC) or Coinbase stock, that are available for trading on the NYSE. These allow investors to gain exposure to cryptocurrency markets without directly buying digital assets.
What crypto exchange is legal in NY?
Several crypto exchanges are legal and compliant in New York due to the BitLicense regulation. Coinbase, Gemini, and eToro are among the exchanges that have gone through the regulatory process to legally operate in New York. Always ensure that the exchange you choose holds a valid BitLicense before trading.
What is BitLicense?
A BitLicense is a business license issued by the New York State Department of Financial Services (NYDFS) to companies that engage in virtual currency activities. Introduced in 2015, the license requires crypto businesses to meet strict regulatory and financial requirements, including reporting, compliance, and capital reserves. It ensures that these businesses are operating securely and transparently within the state.
How hard is it to get a BitLicense?
Obtaining a BitLicense can be challenging due to the stringent requirements imposed by the NYDFS. The process is often lengthy and costly, involving thorough background checks, detailed business plans, compliance protocols, and strict financial reporting. For many smaller crypto businesses, the process can be too burdensome, which is why some exchanges opt not to serve New York residents.
How much does a BitLicense cost?
The cost of a BitLicense can vary, but the application fee alone is $5,000. Beyond that, there are ongoing costs related to compliance, legal fees, and maintaining the operational standards required by the NYDFS. These costs can add up, making it an expensive process for smaller companies looking to operate in New York.
