Exchange Custody — How It Works & Best Providers
Exchange custody is the most common form — you buy Bitcoin on an exchange and leave it there. The exchange controls your private keys. This is convenient for active traders but introduces counterparty risk: if the exchange is hacked, goes bankrupt, or freezes withdrawals, you may lose access to your funds. FTX, Mt. Gox, and Celsius are cautionary examples.
Trade-offs
Pros & Cons
+Pros
- ✓Easiest to use
- ✓Instant trading
- ✓Low or no custody fees
- ✓Mobile app convenience
−Cons
- ✗Counterparty risk (FTX, Mt. Gox)
- ✗Exchange controls your keys
- ✗Potential withdrawal freezes
- ✗Regulatory seizure risk
Ideal Users
Best For
Rankings
Best Exchange Custody Providers
Ranked by weighted Custody Score across 8 criteria.
Gemini is a New York-regulated cryptocurrency exchange founded by the Winklevoss twins. SOC 2 Type 2 certified. Known for regulatory compliance and security. Offers the Gemini Dollar (GUSD) stablecoin and Gemini Earn (lending).
Read full review →Coinbase is the largest US-based cryptocurrency exchange and the only publicly traded one (NASDAQ: COIN). Known for ease of use and regulatory compliance. Serves as custodian for multiple Bitcoin ETFs including BlackRock's IBIT.
Read full review →Kraken is one of the oldest and most trusted cryptocurrency exchanges, operating since 2011 with no major security breaches. Known for strong security practices, proof of reserves, and a comprehensive trading platform.
Read full review →Bitstamp is one of the oldest cryptocurrency exchanges, operating since 2011. European-based with Luxembourg banking license. Acquired by Robinhood in 2024. Known for reliability and institutional focus.
Read full review →Robinhood is a publicly traded (NASDAQ: HOOD) fintech platform offering commission-free crypto trading alongside stocks. Acquired Bitstamp in 2024. Crypto wallets now support withdrawals. Over 23 million funded accounts.
Read full review →Interactive Brokers is one of the largest and most established brokerages globally offering cryptocurrency trading alongside stocks, options, futures, and forex. SIPC member. Institutional-grade execution and lowest crypto trading fees.
Read full review →Cash App by Block (formerly Square) allows Bitcoin purchases within its popular payment app. Over 50 million monthly active users. Proof of reserves published. Auto-invest feature for DCA. Founded by Jack Dorsey.
Read full review →Swan Bitcoin is a Bitcoin-only savings platform specializing in dollar-cost averaging (DCA) and IRA accounts. Partners with Fortress Trust and BitGo for custody. Strong Bitcoin education and community focus.
Read full review →River is a Bitcoin-only financial institution focused on providing the best Bitcoin buying experience. Zero-fee recurring purchases. Known for excellent customer service, Bitcoin education, and a clean mobile app.
Read full review →Strike is a Bitcoin and Lightning Network payment app focused on fast, low-cost Bitcoin purchases and transfers. Known for near-zero fees and Lightning Network integration. Founded by Jack Mallers.
Read full review →Compare Exchange Custody Providers Side-by-Side
Use our free comparison tool to evaluate exchange custody providers across security, fees, insurance, and more.
Compare Exchange Custody providers side-by-side →Learn More
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Multi-Institution Custody Explained
Why distributing assets across multiple custodians eliminates single points of failure.
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