How Motley Fool Money Rates Cryptocurrency Exchanges

How we score cryptocurrencies

Motley Fool Money considers more than 20 factors across five categories to evaluate crypto exchanges. Ratings are based on our editorial team’s experience using each platform, as well as publicly available information from each provider’s website. Exchanges are assigned a point value for each score, out of 3, then adjusted to a 5-star scale, rounded to the nearest half point, based on scores in the following five categories.

• 3 = High
• 2 = Medium
• 1 = Low

Our scores are weighted as:

Fees and costs: 30%

Crypto exchanges charge several types of fees that can add up quickly and that aren’t always transparent. That’s why fees and other costs are most heavily weighted in our crypto exchange ratings. We consider all costs associated with buying and selling cryptocurrencies, including transaction fees, maker and taker fees, withdrawal fees, deposit fees, and spreads. Top-rated platforms generally have fees and spreads that add up to no more than 2% of a transaction. We also consider minimum trade amounts, giving top ratings to platforms with a minimum transaction of $10 or less.

• High: Average fees and spreads for advanced investors amount to less than 2% of a transaction. Fees are disclosed upfront on the exchange’s website. Top-rated exchanges in this category also have minimum transactions of $10 or less.
• Medium: The exchange’s fees and spreads add up to 2% to 3% of a transaction. An exchange may also receive a medium rating if its fee structure lacks transparency, even if the average cost of buying $500 worth of Bitcoin adds up to less than 1%. Exchanges with competitive fees may also receive a medium rating if they require more than $10 to place a trade.
• Low: The average fees and spread amount to more than 3% of a transaction. An account with lower fees may receive the lowest fee score if the fee structure is not transparent, or if it charges other fees (like inactivity fees or conversion fees) that are significantly higher than its peers.

Customer experience: 25%

We evaluate platforms based on overall customer experience based on our editorial team’s researc. Top-rated crypto exchanges have customer support available by phone and chat and highly rated mobile apps. We also give higher ratings to platforms that provide solid research and educational materials for users. Exchanges may lose points in this category if users report frequent outages or if their execution time is slow compared to its peers.

• High: The platform has an easy-to-use interface, based on our editorial team’s experience, and highly rated apps for iOS and Android users. Customer service is accessible via multiple channels, including by phone, and the platform offers helpful educational materials and trading tools. The platform doesn’t have significant problems with outages or transaction speeds.
• Medium: The platform is generally easy to use based on feedback from our editorial team and online reviews, but it may lack some features that top-rated exchanges have, like trading tools. Customer service is available, but may be limited compared to top-rated exchanges.
• Low: The platform generally gets poor feedback from users. Customer service may be difficult to reach, and users may report frequent outages or slow transaction speeds.

Security: 20%

We evaluate every crypto exchange’s security protocols and history of breaches. Top-rated platforms store most assets in cold wallets and have robust security features, including two-factor authentication and account encryption. An exchange may not receive the highest rating if it’s been involved in a major security breach or been accused of serious misconduct by the SEC (like fraud or co-mingling client funds) in the past three years.

• High: The exchange keeps at least 90% of funds stored in cold wallets and maintains third-party insurance for assets kept in hot wallets. The platform provides user-level protections, like two-factor authentication and account encryption. The exchange complies with Know Your Customer (KYC) protocols and has 24/7 surveillance to monitor security threats. Top-rated exchanges also offer optional security features, such as multi-signature wallets and IP whitelisting. The exchange publishes its proof of reserves and is regularly audited by a third party.
• Medium: The exchange complies with all major security protocols, but it may lack some optional security features, like biometric authentication or multi-signature wallets. Exchanges that otherwise have robust security features may fall into this category if they’ve experienced a major security breach in the past three years.
• Low: The exchange is missing basic security features or lacks transparency about its protocols. Exchanges that have experienced multiple security breaches in recent years will also receive a low rating.

Investment options: 20%

We consider the number of cryptos a platform offers, as well as the availability of other crypto-related investment options, like NFTs or derivatives.

• High: Top-rated platforms 100+ cryptocurrencies, OR they offer 50+ cryptocurrencies and access to other crypto-related investments, like NFTs or derivatives.
• Medium: The exchange offers 25+ cryptocurrencies, including major coins (Bitcoin and Ethereum), as well as some altcoins and stablecoins, OR it has 15+ cryptocurrencies and provides access to brokerage or banking services.
• Low: The exchange has fewer than 25 cryptocurrencies, OR fewer than 15 if it provides brokerage or banking services.

Staking and rewards: 5%

The best crypto exchanges allow users to earn rewards and are transparent about how they generate them. Many top-rated platforms also provide other ways to earn rewards, such as a crypto savings account or debit card.

• High: The platform has 10+ coins available for staking and is transparent about how they generate rewards. May offer additional ways to earn crypto rewards, such as a crypto savings account.
• Medium: The exchange allows for staking, but fewer than five coins are available for staking.
• Low: The exchange does not support staking.

Our crypto rating methodology

At Motley Fool Money, we rate cryptocurrencies on a five-star scale (1 = poor, 5 = best). Our rating criteria includes fees, customer experience, security, investment options, and staking and rewards.

The highest-rated cryptocurrency exchanges have:

• Low and transparent fees
• Robust security protocols
• User-friendly platforms
• A wide variety of coins

The relative lack of regulation in the cryptocurrency industry makes us take our responsibilities even more seriously — we want investors to access this new asset class in the safest way possible.

How our ratings translate to our Best Of lists

We combine the factors outlined above to ensure you’re getting the best recommendations on each of our pages. Our aim is to maintain a balanced best-of list featuring top-scoring cryptocurrencies from reputable brands.

Ordering within our lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Our Ratings team operates totally independently of our Partnership team.