Iceland is a nation open to new technology and innovation. Cryptocurrencies have been gaining ground in the country for quite some time. The Nordic nation has also emerged as a hub for cryptocurrency mining due to its abundance of geothermal energy and low power bills.
Recognizing the potential, many cryptocurrency exchanges have started operations in Iceland. Icelandic traders, therefore, have no dearth of options when it comes to trading cryptocurrency. To help you learn more about such platforms, we have compiled this list of the best crypto exchanges in Iceland.
7 Top Cryptocurrency Exchanges in Iceland
Coinbase
Coinbase, the world’s second-largest cryptocurrency exchange, is also available in Iceland. In its home country of the USA too, it has the distinction of being the first major crypto company to go for public listing and debuting on NASDAQ.
Coinbase has a basic version that has a very simple user interface with a prominent Buy/Sell feature. This helps you in buying your preferred cryptocurrency in a few minutes with the Icelandic Krona(ISK).
Coinbase Pro has all the advanced trading features desired by experienced traders. You can easily manage multiple portfolios here and also access advanced charting and market tracking tools.
Trading on Coinbase means that you will pay fees depending on the order size, the payment method used, the market conditions at the time of the trade and other such factors. For Coinbase Commerce accounts though a flat 1% transaction fee is charged.
Features
✔️Has over 250 cryptocurrencies for trading
✔️In-built wallet for storing cryptocurrencies and NFTs
✔️Coinbase Commerce for businesses to accept crypto payments
✔️Has a brokerage platform for digital assets
Pros and Cons
✅Lots of coins available ❌Takes high commission for staking
✅User-friendly layout ❌Fees can be high on basic version
✅Crypto trading tutorials
✅Cloud services for developers
Trading Fees
Trading fees for Coinbase
Customer Reviews
Coinbase is a stable and safe crypto exchange
The verification process on Coinbase can be complex and lengthy
Why We Picked It
Coinbase is a publicly listed, stable and secure exchange for trading cryptocurrency. The platform is easy to use thanks to its intuitive and simple design. For advanced trading features and tools, you can head over to Coinbase Pro.
Kraken
Kraken has created specialized platforms to provide dedicated service to different demographics of crypto traders. The basic version caters to new and casual traders while the Pro platform is primarily used by experienced crypto traders.
On Kraken Instant Buy, users have to take note of dynamic factors such as order size, payment method, asset type and market conditions that determine the trading fees that are to be paid. Kraken Pro, meanwhile, depends on the maker-taker system to charge trading fees.
Various types of trades such as spot, margin and futures are supported on Kraken. Users also get personalized OTC services and the option to invest in crypto indices here. In addition, Kraken has very high liquidity and low spreads which makes for a flawless trading experience.
Features
✔️200+ cryptocurrencies available
✔️Two versions- basic and pro
✔️Uses KYC, 2FA and GSL for security
✔️Proof-of-reserves are available on website
Pros and Cons
✅Satisfactory crypto collection ❌Higher fees on basic platform
✅Several trading types supported
✅Comprehensive learning material
✅Less fees on Kraken Pro
Trading Fees
Trading fees for Kraken Instant Buy
Trading fees for Kraken Pro
Customer Reviews
Kraken is a fantastic platform for crypto trading
Accounts are sometimes locked on Kraken
Why We Picked It
Kraken is a great exchange with many facilities where you can conveniently trade cryptocurrency. It offers many trading types, crypto indices and OTC services to users. Plus, there is a good collection of learning material regarding cryptocurrency on Kraken.
Crypto.com
With 80 million users, Crypto.com is one of the most well-known crypto trading platforms. In the smartphone era, this exchange is proving to be particularly useful with its excellent mobile app.
Along with the Cronos(CRO) token, you can trade over 250 cryptocurrencies on Crypto.com. Even for margin trading, 500+ pairs are available with many having up to 5x leverage. In addition, you can check out perpetuals, quarterly futures and warrant contracts on Crypto.com
The platform runs a referral program that rewards users for inviting their friends to use the exchange. An ISO 27001-certified platform, Crypto.com uses cold storage and multi-factor authentication(MFA) for security.
Features
✔️Over 250 cryptocurrencies available
✔️Native coin is known as Cronos(CRO)
✔️Crypto lending is supported
✔️Native crypto wallet
Pros and Cons
✅Great coin selection ❌Sparse educational resources
✅Over 20 assets for staking ❌Not a very good choice for beginners
✅Uses cold storage for assets
✅Referral program for users
Trading Fees
Trading fees for Crypto.com
Customer Reviews
Crypto.com provides good opportunities for trading cryptocurrency
Withdrawals are a problem on Crypto.com
Why We Picked It
Crypto.com has interesting features and many opportunities to make a profit. The trading fees here are certainly competitive if not the lowest and it gives discounts for staking CRO. Crypto.com also rewards users for inviting friends to the platform and offers many lucrative staking opportunities.
Bybit
Bybit has managed to retain its reputation as one of the top cryptocurrency exchanges by constantly innovating and introducing lucrative offers. Though it is significantly known for derivatives trading, Bybit supports options for spot and margin trading as well.
USDC and USDT are supported as collateral for perpetual contracts. USDC is additionally used as collateral for options and inverse contracts. Apart from that, Bybit features over 280 spot pairs and also supports copy trading where you can imitate and learn from the strategies of top traders.
For experienced traders, there are advanced charting and market tracking tools available.
Features
✔️280+ pairs available for spot trading
✔️Largest USDC Options marketplace in the world
✔️Copy trading is supported
✔️Native Bybit Web3 wallet available
Pros and Cons
✅Many types of trades are supported ❌Poorly communicates risks of
✅Advanced investment tools available derivatives trading
✅Trading bots for automating trades
✅NFT collections available
Trading Fees
Bybit cryptocurrency exchange fees
Customer Reviews
Bybit is a convenient platform to trade cryptocurrency
Reports of locked accounts on Bybit
Why We Picked It
Bybit fulfills the needs of both beginner and advanced traders. It supports spot and derivatives trading and copy trading feature is also available here. At the same time, it caters to expert traders with its advanced investment tools. Further, Bybit has an NFT marketplace where you can explore interesting collections.
OKX
Seychelles-based OKX differentiates itself from other cryptocurrency exchanges by developing its own crypto ecosystem. This system is powered by its native OKX Chain and OKB token and features a native OKX wallet as well. This exchange gives you a healthy choice of 400+ cryptocurrencies for spot, margin and derivatives trading.
OKX TradingView enables you to chart and trade without any limitations. With its advanced charting tools, you can execute all your trades in one place. You can also interact with OKX’s crypto trading community to learn new things and up your skills.
OKX Earn has multiple investment products for you to choose from. You can pick either fixed or flexible-term products or a combination of them to grow your assets and earn some passive income.
Features
✔️Over 400 cryptocurrencies available for trading
✔️Native blockchain known as OKX Chain
✔️Native token is called OKB
✔️OKX Wallet can be used with 40+ networks
Pros and Cons
✅Great crypto collection ❌Fee structure is complex
✅Supports many payments
options
✅Low trading fees
✅Option to grow crypto holdings
Trading Fees
Trading fees for OKX cryptocurrency exchange
Customer Reviews
Sub-accounts can be created on OKX
OKX does not have good customer service
Why We Picked It
OKX supports everything from simple spot trading to margin and derivatives trading. The fee structure is slightly convoluted though the rates themselves are rather low. You can get good APYs on your assets here and can use the advanced market tracking tools available on OKX without any limits.
KuCoin
If you want a place to check out relatively obscure and underrated crypto coins, KuCoin should be the platform of your choice. This exchange boasts of a collection of 700+ cryptocurrencies and as a bonus, it lets you convert one cryptocurrency to another at zero fees.
KuCoin is available in over 20 languages and hosts users from 200+ countries which has helped it nurture a global crypto community. Therefore, with KuCoin, you can interact with a global crypto trading community. Spot grids, dollar cost averaging, futures grid, infinity grid and smart rebalance can be automated here with the help of trading bots.
Additionally, you can make multi-chain swaps at the best possible price with KuCoin’s Halo wallet. You can also explore Web3 with this wallet, discover the latest market trends and follow the on-chain activities of other wallets.
Features
✔️Over cryptocurrencies available for trading
✔️Supports 20+ languages
✔️Native coin is called KuCoin Token(KCS)
✔️Supports crypto lending
Pros and Cons
✅Wide range of cryptocurrencies ❌Fee system is complex
✅Crypto-to-crypto conversion is free ❌Trading bots can glitch
✅Trading bots to automate trades
✅Explore Web3 with Halo wallet
Trading Fees
KuCoin cryptocurrency exchange fees
Customer Reviews
Obscure coins can be found on KuCoin
KuCoin’s customer service can be poor
Why We Picked It
KuCoin has a huge crypto selection that is worth checking out. You will definitely find something of interest here on this exchange. It is a multi-lingual platform and you can interact with crypto traders across the world. With the Halo Web3 wallet, you can keep track of other wallets and stay updated on market trends.
Bitstamp
Bitstamp is one of the oldest cryptocurrency exchanges and is still running successfully. It is one of the most trusted crypto trading platforms as it has a whopping 50 licenses and registrations across the world.
There might not be a lot of cryptocurrencies available on Bitstamp but it gives you the assurance of trading on a reliable platform with a simple and transparent fee structure.
Bitstamp is a minimalist no-frills platform that flawlessly delivers what it promises- a simple and reliable crypto trading experience. With the launch of its mobile app, you can keep track of the market and your funds from anywhere.
For security reasons, 95% of the funds on Bitstamp are stored in cold wallets and it also uses encryption technology for all personal data. You can also enable transaction confirmations for more safety while trading on Bitstamp.
Features
✔️More than 80 cryptocurrencies for trading
✔️One of the oldest platforms for crypto trading
✔️Funds kept in cold storage
Pros and Cons
✅Trading fees are adequate ❌Fewer crypto coins available
✅Easily navigable platform ❌Margin trading not supported
✅Excellent mobile app
Trading Fees
Fees for Bitstamp exchange explained
Customer Reviews
Bitstamp is a trusted crypto trading platform
Withdrawals can become a problem on Bitstamp
Why We Picked It
Bitstamp has a reputation of being a secure and reliable crypto exchange which has helped it remain in the business for a long time. It does not have a lot of products to offer but it ensures an accessible and simple trading experience which makes it perfect for beginners.
4 Top Decentralized Exchanges in Iceland
UniSwap
Whenever we mention decentralized exchanges for trading cryptocurrency, UniSwap is almost always mentioned. And for good reason. It is the DeFi project of all DeFi projects. It is the platform that launched the craze for similar ‘swap’ platforms.
On UniSwap, you can access tons of ERC-20 tokens to swap without ever sacrificing your privacy. Yes, unlike centralized exchanges, you don’t need to share your private information to trade on UniSwap. All that is required here is a crypto wallet and some balance.
Everything is automated on UniSwap with the help of Automated Market Maker(AMM) protocol and you can create permissionless pools for any ERC-20 token. You can provide liquidity to the platform by depositing tokens in these pools. In return, you are given a portion of the trading fees as compensation.
Features
✔️Project developed on the Ethereum blockchain
✔️Uses Automated Market Maker system
✔️Native coin is known as UNI
✔️Compatible with wallets like Metamask, Trust wallet etc.
Pros and Cons
✅ERC-20 token swapping ❌Does not vet coins
✅Easy to use platform ❌Does not have customer support
✅Non-custodial exchange
✅No registration needed
Trading Fees
UniSwap trading fees
Customer Reviews
UniSwap is a good decentralized exchange
There is no system for complaints on UniSwap
Why We Picked It
UniSwap is a very popular decentralized exchange largely because it is easy to use with reasonable pool fees and high liquidity. The fees paid on UniSwap are proportional to the risk of the pair being swapped. Further, you only need a crypto wallet to trade on UniSwap.
PancakeSwap
PancakeSwap was launched in 2020 along with many other similar ‘swap’ projects. While it is quite similar to UniSwap, it also addresses the limitations of the latter in some ways. Ethereum-based platforms are often plagued by network congestion issues and as a result, have high gas fees. Hence, PancakeSwap runs on the BNB Chain and not Ethereum.
PancakeSwap’s food-based theme and attractive design make trading fun and accessible. For instance, its native token is called ‘CAKE’ and CAKE can be staked in ‘syrup’ pools. CAKE Bridging is also possible here between Ethereum, Aptos and BNB Chain.
With PancakeSwap’s v3 upgrade, its single fee rate of 0.25% has been replaced by four fee tiers of 0.01%, 0.05%, 0.25% and 1%. You can now also set custom price ranges when providing liquidity to the platform for better efficiency.
Features
✔️Project developed on the BNB Chain
✔️Four-tiered pool fee system
✔️Utilizes Automated Market Maker protocol
✔️Native coin is known as CAKE
Pros and Cons
✅BEP-20 token swapping ❌Issue of scams and phishing attempts
✅Has permissionless pools ❌Coins are not vetted
✅User control over private keys
✅Capital efficient exchange
Trading Fees
Trading fees for PancakeSwap
Customer Reviews
PancakeSwap’s CAKE pools are liked by users
There is no quality check for tokens on PancakeSwap
Why We Picked It
PancakeSwap is an innovative and fun platform for trading cryptocurrency. With its v3, the platform now provides more ranges for trading fees and overall more capital efficiency and lower slippage. The token CAKE can be staked in syrup pools to earn passive income on idle assets.
Curve Finance
Curve Finance is an Ethereum-run platform that majorly provides liquidity for stablecoins or wrapped versions of assets. It is, hence, far more stable than other similar DeFi platforms that can often be unpredictable.
Curve Finance’s strength lies in the fact that it works on multiple chains including Ethereum, Avalanche, Polygon, and Arbitrum. It has a native token called CRV and users holding this token are allowed to vote on governance proposals for the platform. This has helped in establishing a culture of community governance on Curve Finance.
All Curve Finance pools have a minimum 0.04% fees.
Features
✔️Primarily for stablecoin swapping
✔️Highly liquid platform
✔️Uses Automated Market maker model
Pros and Cons
✅Pools are customizable ❌Not very beginner-friendly
✅Supported on multiple chains ❌Does not have a mobile app
✅Low transaction fee
Trading Fees
Curve Finance fee details
Why We Picked It
Curve Finance is the perfect choice for you if you want a completely decentralized exchange for trading. It has stability, and efficiency and promises high liquidity for a convenient trading experience.
DODO
DODO is another decentralized exchange developed on Ethereum but it does not use AMM for creating liquidity. Instead, what it has is a protocol called Proactive Market Maker(PMM). Adopting this system in place of AMM has enabled DODO to ensure more capital efficiency and price stability.
The platform has some interesting features such as the DODO Vending Machine with which anyone can create a liquidity market. There is also an NFT Vault available for price discovery of non-standard assets. Once the vault is created, liquidity pools can also be established for NFTs.
DODO has a 0.3% fee per trade which ultimately comes to be around 0.6% per trade as stated by its co-founder.
Features
✔️Developed on Ethereum and uses PMM model
✔️Facilitates easy listing of coins
✔️Native DODO Coin is an ERC-20 token
Pros and Cons
✅Better fund utilization ❌No support for fiat currencies
✅Lower slippage
✅No impermanent loss
Trading Fees
Trading fee for DODO
Why We Picked It
DODO has more stability and better price discovery as compared to AMM-based trading platforms. There are some quite innovative products here such as the DODO Vending Machine and NFT Vault that you should check out once.
Is Crypto Legal in Iceland?
To understand cryptocurrency regulation in Iceland, we need to go back to 2008 when there was a severe financial crisis in the country. In late 2008, all three major private commercial banks in Iceland defaulted. Compared to the size of the Icelandic economy at the time, this event was termed the largest systemic banking collapse in economic history.
The banking collapse led to a significant economic slump and political unrest in 2008-10 in Iceland. This incident led to the government imposing restrictions on the citizens to prevent them from taking foreign currency out of the country.
In essence, this regulation also acted as an indirect ban on cryptocurrencies as crypto trading involves capital movements out of the country.
The Icelandic Central Bank amended rules in 2017 allowing cross-border transactions with the ISK. This essentially lifted the indirect ban on crypto trading in Iceland.
In 2018, the government introduced a law requiring cryptocurrency exchanges and other digital currency businesses to register with Iceland’s financial regulator. They are further mandated to comply with the country’s KYC/AML regulations.
Iceland, like other Nordic countries, is known for its high tax rates. Therefore, capital gains up to $7,000 from crypto trading are subject to a 40% tax while gains higher than that incur a 46% tax.
Conclusion
Iceland has always been open to new technology and innovation. Cryptocurrencies started gaining ground in the country as far back as 2013 and Iceland is often seen as a go-to destination for crypto miners due to its abundance of geothermal energy.
Cryptocurrencies were never explicitly banned in Iceland and there are now a plethora of exchanges operating in the country. The high tax rates too have not dampened the enthusiasm of Icelandic traders.
Still, it should be kept in mind that cryptocurrencies are volatile assets and you can very easily lose money in them. Therefore, any investments that you make should be made only after thorough research.