Best Crypto Exchanges in Israel

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Crypto is gaining popularity in Israel. Several Israeli projects such as GoodDollar are gaining steam. Although strict regulations surrounding crypto have made it difficult for Israeli citizens to purchase crypto, many major exchanges still offer services there. Find the best crypto exchanges in Israel now.

Quick Look: Best Crypto Exchanges in Israel

• Best for Sign-up Bonus: CoinSmart
• Best for Security: Gemini
• Best for Beginners: eToro
• Best for Ease of Use: FTX
• Best for Advanced Crypto Traders: ByBit
• Best for Customer Support: Huobi Global

Best Crypto Exchanges in Israel

Though legislation has inhibited Israeli crypto purchases in the past, trading platforms are finding ways to gain access to the Israeli population. Here are some of the best exchanges available in Israel. 

Best for Sign-up Bonus: CoinSmart

The crypto industry is booming and CoinSmart is on a mission to make cryptocurrencies like Bitcoin, Ethereum, and altcoins like Doge and Solana accessible to everyone. With a crypto trading platform designed to break down the barriers of complex and confusing crypto transactions, CoinSmart offers simplicity, learning tools for all levels, as well as 24/7 omni-channel support. 

CoinSmart is a regulated, Canadian-headquartered crypto asset trading platform registered with the Ontario Securities Commission and securities regulators across Canada, allowing Canadians to buy and sell crypto in as little as five minutes. CoinSmart is also one of the first Canadian-run trading platforms to have an international presence, accepting customers across 40+ countries at a time when the digital asset industry continues to rapidly expand.

Best for Security: Gemini

Gemini, a leading exchange with industry leading security, combines measures to enhance the security of the entire platform. One of these measures is cold storage. Gemini employees monitor the security of its cold storage sites. Apart from the security, many users praise Gemini for their easy to use platform. Gemini also offers some of the lowest fees in the space. 

Best for Beginners: eToro

eToro is among the oldest centralized exchanges and offers a variety of services for beginners. It offers a paper trading platform where users can learn to trade crypto risk free. It also offers a copy trader feature that allows you to directly copy the trades of other users on the site. eToro also has a unique fee system, where you pay smaller fees on larger cryptocurrencies. This is also useful for beginners, as they are more likely to trade larger market capitalization assets. 

Best for Ease of Use: FTX

FTX is extremely easy to use. Beyond the sleek app and dynamic color scheme, you can have your account verified in minutes and begin trading. You can fund your account directly from your bank. 

Executing trades on the app is also extremely easy. Once you have located the pair you want to trade, completing the trade only takes a few seconds. With a funded and verified account, users have access to over 125 cryptocurrencies. 

Best for Advanced Crypto Traders: ByBit

ByBit offers several advanced features involving more risk, making it suitable for experienced traders. ByBit offers 100x margin trading, which means you can take out short-term loans to fund crypto trades. These advanced features can allow you to capitalize on trends you see in the market to make an even larger return. ByBit is a leader in advanced cryptocurrency trading. 

Best for Customer Support: Huobi Global

Huobi Global has a strong customer support team. It has hundreds of helpful articles to help users find answers quickly. If you can’t find an answer there, you can message or email the team. Huobi Global also offers a sleek interface for quick and affordable crypto trading. Combining powerful customer support with low fees and strong security, Huobi Global is a top crypto exchange.

Cryptocurrency Exchange Types

The exchange that is easiest to use is a brokerage. Crypto brokers allow bank deposits and offer low-fee trading. Brokers act as intermediaries, allowing you to buy and sell cryptocurrency at a set price. You can also engage in different types of crypto trading, such as futures, leveraged trades and loans. 

Decentralized exchanges (DEXs) cut out the middleman but often have much higher fees. A DEX allows users to have full custody of their funds through the use of wallets. 

However, a DEX can involve high fees, paid directly to the chain that the asset is on. For example, Ethereum gas fees can be more than $5,000 for a single transaction whereas fees on a brokerage rarely are more than 3% of a transaction. 

When choosing the sort of exchange you wish to use, remember that crypto values are extremely volatile. At some point, you must determine if the assets you’re investing in are worth your time and attention. The exchange is merely a venue that you use make your investments—and its fees are only one part of your investment plan.

Current Crypto Prices

After hitting all-time highs in early November of 2021, crypto markets seem to be cooling down, culminating int he crypto crash of the summer of 2022. Some see the drop as just a minor setback while others fear a full-blown bear market. If you want to see where the crypto market is right now, make sure to check out Benzinga’s up to date price table. 

What To Look for in a Cryptocurrency Exchange

Perhaps the most important thing that you should look at before choosing a crypto exchange is the security. If an exchange has poor security, you may be at risk of losing your funds. 

Security

Exchanges can be vulnerable to hacks. In these attacks, hackers can steal funds from the broker. Since the broker holds all of its users’ funds, these attacks can result in the loss of your investments. This scenario has happened in the past to exchanges and will almost certainly continue in the future. 

Fees

Another aspect to consider when deciding between exchanges is the fees charged. Fees on exchanges differ. Exchanges charge a set fee based on the size of the transaction (such as $1 fee for all transactions between $0 to $200) or in the form of a percentage (like a 2% fee on all transactions). You should consider the size and amount of transactions you will make when looking at fees. 

Exchange Rates

Exchange rates are extremely important to consider when deciding on an exchange. Exchange rates can vary drastically based on the underlying assets. 

It is important that you take a look at the exchange rates between cryptos and fiat (ILS) to see if you will end up paying a fair price for your trades.  Prices depend in part on the bid/ask spread for the underlying currencies. Plus, you should remember that many people are investing in assets without consideration of the exchange rates. Plus, you may find that exchange rates are stable, and it’s possible that you could get in and out of these investments quickly and avoid exchange rate issues.

Reputation

It is also important to consider an exchange's reputation when making decisions. A business reputation is often based on real user experiences, so a poor reputation may be indicative of underlying issues with an exchange. Research each exchange you are considering by reading reviews and looking at the crypto community’s views of the exchange. 

Crypto Regulation in Israel

Crypto regulation has been a hot topic in Israel. In 2017, the government warned financial institutions against using cryptocurrency. It also applied large taxes of up to 50% on crypto transactions. 

As of November 2021, crypto is legal in Israel but still under scrutiny from the government, which unveiled a new set of anti-money laundering (AML) laws. The main purpose of the legislation was to crack down on fraudulent use of crypto, but it included several other provisions. These laws also required financial technology companies to obtain an operating license before doing business in Israel. 

The Israeli government has been opposed to crypto for nearly 5 years with little sign of sentiment changing. However, it is still possible to trade crypto in Israel.

What You Need to Open a Crypto Account in Israel

Because of the relationship between the Israeli government and crypto, you need to adhere to strict Know Your Customer (KYC) laws including background and criminal record checks, real estate records and business reports. Be prepared to provide proof of citizenship and other supporting documents. 

Best Crypto Wallets in Israel

If you are looking for a safer way to store crypto that allows for access to decentralized finance (DeFi) features, a wallet may be a great choice. The 2 types of cryptocurrency wallets are hardware and software. Hardware wallets are arguably the safest way to store crypto as a physical device is required to send crypto. Software wallets exist entirely online but are still very safe.

The best hardware wallet available in Israel is Ledger. Ledger offers a Nano S model for beginners with basic features. Alternatively, the Nano X is for more experienced crypto users and offers much more advanced features.

MetaMask is the best software wallet to use in Israel. It is easily attained through a chrome extension, and you can begin using it within minutes. MetaMask is well known for its versatility and safety. 

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Buy Crypto in Israel

Israel has had a long and complicated relationship with crypto. While the government is opposed to it, many members of the younger generation are supportive of it. Only time will tell what will happen with crypto regulation in Israel.

If you are looking to get into crypto and want to conduct more research, make sure to check out Benzinga’s reviews of crypto exchanges and brokerages. 

Frequently Asked Questions