Summary
Cryptocurrency is legal in Israel, with the Israel Securities Authority (ISA) overseeing regulations. Popular payment methods include bank transfers and credit cards. The local currency, Israeli New Shekel (ILS), is supported by some exchanges. Key regulatory bodies include the ISA and the Bank of Israel. The Virtual Currency Service Providers Law governs crypto businesses. Here are the best crypto exchanges in Israel:
Best Crypto Exchanges in Israel
This article examines the top cryptocurrency exchanges available to Israeli investors. We’ll explore platforms that support the Israeli New Shekel (ILS) and offer preferred payment methods such as bank transfers and credit cards. The following table provides a concise overview of the leading exchanges in Israel:
1. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
2. Bits of Gold
Users:
200K
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
6+
Leverage:
Not Supported
Spot Fees:
1.20%/1.20%
Futures Fees:
Not Supported
Pros
- User Friendly Interface
- Regulated and authorized by Israeli authorities
- Offers conventional, digital, and physical methods for buying and selling crypto
Cons
- Limited selection of cryptocurrencies
- High VAT on digital assets in Israel can increase fees beyond the listed rates
- Issues with customer service
Bits of Gold Overview
Bits of Gold, operating for 11 years, is a regulated cryptocurrency exchange serving the Israeli market. The platform supports 6 cryptocurrencies and boasts a user base of 200,000. Spot trading fees are set at 1.95% for both buying and selling, with potential discounts of 5% to 38.5% based on 3-month trading volume, potentially lowering fees to 1.20%+VAT.
The exchange offers a user-friendly interface and multiple purchase methods, including conventional, digital, and physical options. Bits of Gold maintains Bitcoin ATMs within Israel, facilitating account funding. The platform is authorized by Israeli authorities, ensuring regulatory compliance.
Despite its strengths, Bits of Gold has limitations. The cryptocurrency selection is narrow, and high VAT on digital assets in Israel can inflate fees. Customer service has reported issues. The exchange lacks futures trading and a demo account, potentially deterring advanced traders.
Bits of Gold provides educational resources for new investors, aiming to promote safe investments in the volatile cryptocurrency space. While the platform caters primarily to the Israeli market, its regulatory compliance and varied purchase options make it a notable player in the region’s cryptocurrency ecosystem.
3. Coinbase
Users:
100m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
250+
Leverage:
5x
Spot Fees:
0.4%/0.6%
Futures Fees:
0.02%/0.05%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
- Great wallet for on-chain access
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
Coinbase Overview
Coinbase is one of the largest and most well-known cryptocurrency exchanges for buying cryptos.The platform currently has a user community of over 100 million users worldwide. What makes Coinbase special is its user-friendly interface. The platform is designed to be easy to use, making it accessible for beginners. Coinbase offers a clean and intuitive interface for buying, selling, and managing cryptocurrencies.
Crypto traders have access to over 250 cryptos for active trading. One downside of Coinbase is the fee structure. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee of 0.60%, which is very expensive.
Another thing about Coinbase is that it offers a wide range of crypto services. These include wallets, NFT, crypto staking, Coinbase cards, and many more to help improve the overall trading experience on the platform. One of our favorite features is the Coinbase wallet.
It is suitable for beginners but also offers advanced trading tools including real-time charts, technical indicators, and many more for advanced traders.
4. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
5. Kraken
Users:
10m
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
220+
Leverage:
100x
Spot Fees:
0.25%/0.4%
Futures Fees:
0.02%/0.05%
Pros
- Very beginner-friendly
- Low futures trading fees
- Free demo trading
- Fiat supported
- 24/7 customer support
- Fully regulated
Cons
- High spot trading fees
- Lacks advanced features
- Poor liquidity for futures trading
- Complicated Demo trading
Kraken Overview
Kraken stands out as one of the most beginner-friendly crypto exchanges. With an easy to understand UI, simple features, and a straightforward approach, Kraken has onboarded over 10 million users to its platform from all around the world.
Spot traders can access over 220 cryptocurrencies for buying and selling. For traders seeking more buying power, Kraken offers a leverage trading platform with up to 50x leverage on selected assets such as BTC.
In terms of fees, Kraken has a different approach for spot and futures trading. While spot trading fees are relatively high (0.25% maker and 0.4% taker), the futures fees are very low (0.02% maker and 0.05% taker). Based on your 30-day trading volume, you can obtain additional fee discounts.
What we love about Kraken is its comprehensive fiat support. You can deposit funds using your credit card or bank transfer. Once you are done trading, you can withdraw fiat currencies such as EUR or USD back to your personal bank account to lock in your profits.
Is Crypto Legal and Regulated in Israel?
Cryptocurrency is legal in Israel, with the government taking steps to regulate the industry. The primary regulatory body overseeing crypto activities is the Israel Securities Authority (ISA). In 2022, Israel implemented the Virtual Currency Service Providers Law, which requires crypto businesses to obtain licenses from the Bank of Israel.
The ISA has classified cryptocurrencies as securities, subjecting them to existing financial regulations. This classification impacts how crypto assets are treated for tax purposes and affects the operations of exchanges and other crypto service providers in the country.
Israel’s Money Laundering and Terror Financing Prohibition Authority has also issued guidelines for financial institutions dealing with cryptocurrencies, aiming to prevent illicit activities. These regulations align with international standards set by the Financial Action Task Force (FATF).
While the regulatory framework continues to evolve, Israel maintains a generally positive stance towards blockchain technology and cryptocurrency innovation, balancing the need for investor protection with the desire to foster technological advancement in the financial sector.
Is Crypto Taxable in Israel?
Cryptocurrency is indeed taxable in Israel, with the Israel Tax Authority (ITA) treating it as a taxable asset. The tax implications vary depending on whether the crypto activity is classified as a business or a capital asset.
For individuals, capital gains tax rates apply to profits from cryptocurrency transactions. As of 2024, these rates range from 25% to 33%, depending on the individual’s income level. Businesses engaged in cryptocurrency trading or mining may be subject to corporate tax rates, which currently stand at 23%.
The ITA requires taxpayers to report all cryptocurrency transactions, including purchases, sales, and exchanges. Notably, the authority has implemented specific reporting requirements for crypto holders with assets exceeding 200,000 New Israeli Shekels (approximately $55,000 USD).
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Israel.
How to Buy Crypto in Israel
Purchasing cryptocurrency in Israel has become increasingly accessible. For Israeli investors, we recommend using Binance due to its robust security measures, competitive fees, and support for Israeli Shekels (ILS). Whether you’re interested in buying Bitcoin, Ethereum, or other altcoins, the process is straightforward.
Here’s a step-by-step guide to buying cryptocurrencies in Israel:
- Choose a Crypto Exchange: Start by selecting a reliable exchange that supports ILS and offers your preferred payment methods. Ensure the platform meets KYC requirements for compliance with Israeli regulations.
- Create an Account and Verify: Sign up on your chosen exchange and complete the KYC process by submitting required documents, such as a government-issued ID and proof of address.
- Deposit Funds: Add ILS to your exchange account. Common payment options in Israel include bank transfers, credit cards, and debit cards. Some exchanges may also facilitate local payment processors for quicker transactions.
- Select a Cryptocurrency: Determine which digital asset you want to buy. Popular options include Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT). Take the time to research market trends and align your choice with your investment goals.
- Place Your Order: Execute your trade by placing an order for the cryptocurrency you’ve selected. You can choose a market order for immediate execution at the current price or a limit order to specify your desired purchase price.
- Secure Your Holdings: After the purchase, move your cryptocurrencies to a secure wallet. For long-term storage, consider using a hardware wallet to ensure enhanced security.
By following these steps, Israeli investors can safely enter the cryptocurrency market while adhering to local regulations and best practices for digital asset management.
Best Crypto Wallets in Israel
Selecting a secure crypto wallet is crucial for Israeli investors to safeguard their digital assets. Several wallet options cater to different needs, from everyday transactions to long-term storage.
For optimal security, hardware wallets like Ledger and Trezor are strongly recommended. These physical devices keep private keys offline, offering excellent protection against online threats. They support a broad range of cryptocurrencies, making them ideal for large amounts or long-term investments.
For everyday transactions, mobile wallets provide great convenience. Trust Wallet is a well-regarded option, compatible with multiple blockchains and featuring an intuitive interface. Desktop users may prefer Exodus, which offers a stylish multi-currency wallet along with built-in exchange capabilities.
Web-based wallets, like MetaMask, are crucial for engaging with decentralized applications (dApps) and DeFi platforms. MetaMask is particularly advantageous for managing Ethereum-based tokens and can be paired with hardware wallets for enhanced security.
Israeli users should consider factors like supported currencies, security features, backup options, and compatibility with local exchanges when selecting a wallet. It’s wise to use a combination of wallet types—hardware for secure long-term storage and software wallets for routine transactions—to strike a balance between security and accessibility.
Bottom Line
For Israeli crypto enthusiasts seeking the best crypto exchanges in Israel, Binance stands out as our top recommendation. Its extensive coin selection, competitive fees, and robust security measures make it an excellent choice for both novice and experienced traders. For those preferring a local option, Bits of Gold offers a reliable platform with strong regulatory compliance and support for Israeli Shekels. Both exchanges provide a secure gateway to the cryptocurrency market, catering to the diverse needs of Israeli investors.
