Preheat your oven to 350F and line a baking sheet with parchment paper.
In a food processor, combine the shredded sharp cheddar cheese, almond flour, softened butter, garlic powder, onion powder, smoked paprika, and salt. Pulse until a smooth dough forms and pulls together into a ball.
Place the dough between two sheets of parchment paper and roll it out to about 1/8 inch thickness. The thinner you roll, the crispier the crackers will be.
Use a small fish-shaped cookie cutter or simply slice the dough into 1-inch squares with a pastry wheel. Transfer the cut shapes to the prepared baking sheet, spacing them about 1/2 inch apart.
Bake for 10 to 13 minutes, rotating the pan halfway through, until the edges are golden and the crackers look dry on top. They will still feel slightly soft but will crisp up as they cool.
Let the crackers cool completely on the baking sheet for at least 15 minutes. They firm up significantly as they cool. Store in an airtight container at room temperature for up to 5 days.