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How to buy Bitcoin in America

How to buy Bitcoin in America?

  • 28 May 2022
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The US accounts for almost a quarter of the global Bitcoin trade. That fact alone should give you an idea of cryptocurrency accessibility in the US. There are currently no state regulations governing cryptocurrencies, and each state must make its own decision regarding how digital currencies will be treated, although many have yet to make that decision. Buying and exchanging cryptocurrencies is completely legal across the country. So How to buy Bitcoin in America?

While there is no federal legislation on crypto assets in the US, federal bodies have offered guidance to states. After the 2014 boom, these federal agencies had to make decisions on their cryptocurrency classifications. The SEC referred to cryptos as digital currency, the CFTC classified them as commodities, and the IRS defined them as property. So while it is perfectly legal to buy, sell and trade cryptocurrencies, they are not legal tender.

What is the best way to buy Bitcoin in America?

The best way to buy Bitcoin in America is through an exchange such as Coinbase, Kraken, Gemini, Coinmama, Binance, or Changelly. There are a plethora of options available, so it’s best to look at each exchange’s processes for deposits and withdrawals, fees, and transaction speeds to determine which one works best for you.

Is it easy to buy Bitcoin in America?

It is relatively easy to buy Bitcoin in America. The first step is choosing a hardware or software wallet, and the second is choosing an exchange to buy from. The most difficult step is to verify your identity through a Know Your Customer (KYC) process. To do this, you must provide the exchange with your full name, date of birth, and residential address. Their identity must then be verified by providing them with a copy of a passport or government-issued ID. Some exchanges offer a video calling option. Once the exchange has verified your identity, buying and selling cryptocurrency is easy. You can even use a credit card to buy Bitcoin in America, making it even more accessible.

In summary, here are the five basic steps to buying Bitcoin in America:

1. Select an exchange

The first step in getting cryptocurrency is deciding where to buy it. For most people, the most convenient (and least expensive) way to acquire crypto is through an exchange.

There are a variety of different factors to consider when choosing a crypto exchange, but we would argue that security and reputation should always be the most important considerations. Additionally, here are some other factors to consider: software or user interface, fees, number of different cryptocurrencies available for purchase.

2. Verify identity

Most cryptocurrency exchanges will conduct some form of verification (this is known in the industry as Know Your Customer or KYC). You will likely need a combination of bank account information, driver’s license or passport, proof of residence, and a recent photograph. Don’t be put off by this process, as the most regulated (and secure) crypto exchanges are required by law to collect this information.

3. Buy Bitcoin

Once you’ve funded your exchange account, you should be able to buy Bitcoin or any other cryptocurrency at the current rate right away. Buying crypto on an exchange is generally a very simple process.

4. Store Bitcoin

The various methods of storing crypto are hotly debated in the industry. Many prefer to move their crypto from exchanges to hardware wallets for increased security. However, if you are not tech-savvy, your crypto might be safer on an exchange. Also, it is easier to conduct numerous transactions from one exchange account. In the end, it is a personal decision.

5. Manage Bitcoin

You’ve finally acquired crypto! What you do from here is up to you. You can just let it sit and hopefully let it appreciate. You can also use it with a crypto lending company to earn interest. Also, you can send it to friends who want to learn more about the technology. It all depends on you.


Why Bitcoin cloud mining?

An unknown individual or group called Satoshi Nakamoto introduced the Bitcoin network in 2009. In 2021, there will be more than 10,000 different projects in cryptocurrencies. So each of them has its role in building the future of money.

The market value of cryptocurrencies reached $ 1 trillion for the first time in January 2021. It passed $ 2.5 trillion less than three months later. So it shows that this market is one of the growing markets favoring its investors.

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Popular exchanges to buy Bitcoin in America

Coinbase

How to buy Bitcoin in America?

Coinbase is probably the fastest and easiest way to buy Bitcoin in America.

If you need bitcoins fast, buying with a debit card is a good option. Coinbase charges a 3.99% fee for debit card purchases, but you can get your coins instantly.

Another payment option for US customers is to use a connected bank account. Fees are lower for this method – 1.49% – but your coins will only be delivered after five days.

Get $5 in free bitcoins after signing up to Coinbase and making your first trade.

ADVANTAGES

  • High liquidity and buy limits
  • An easy way for newbies to get bitcoins
  • “Buy It Now” option available with debit card

DISADVANTAGE

  • Bank transfer purchases can take up to 5 days
  • Coinbase can track how and where you spend your bitcoins

Coinbase Pro

Coinbase’s exchange, Coinbase Pro, is one of the largest bitcoin exchanges in the United States. Users can fund their accounts via bank transfer, SEPA, or bank transfer. Coinbase Pro offers good pricing and low fees, but the confusing interface can prove difficult at first.

ADVANTAGES

  • Some of the lowest fees for US and EU customers
  • It is possible to buy bitcoins for 0% fees

DISADVANTAGE

  • The user interface is confusing for first-time buyers

Gemini

Gemini is a New York-based bitcoin exchange open to residents of the United States, United Kingdom, Canada, Hong Kong, Japan, Singapore, and South Korea. Deposits can be made via bank transfer, SEPA, or ACH transfer.

ADVANTAGES

  • Trusted and regulated exchange
  • The instant deposit allows you to buy coins quickly (but not withdraw them)
  • Some of the lowest fees in the US and Canada

DISADVANTAGE

  • A bit confusing for new buyers
  • Not yet available in all US states

Bitcoin IRA

Bitcoin IRA offers a tax-deferred way to invest in Bitcoin and Ethereum with your 401,000 or other retirement savings. The Bitcoin IRA is a US licensed IRA custodian so you know your crypto or Bitcoin IRA is fully compliant with federal government regulations.

ADVANTAGES

  • Tax-deferred bitcoin savings
  • Easy to set up an account

DISADVANTAGE

  • Cannot keep the bitcoin myself

Swan Bitcoin

Swan Bitcoin is an average dollar cost bitcoin exchange that allows users to set up recurring bitcoin purchases that are debited from their bank account or credit card each month or week.

ADVANTAGES

  • Easy to set up
  • Automated dollar-cost averaging
  • Very low fees

DISADVANTAGE

  • The first purchase takes a while
  • No ability to sell on the platform

LibertyX

LibertyX is an American service that makes buying bitcoins with cash easy. First, use the LibertyX app to find a store near you that sells LibertyX codes. Next, enter your LibertyX code into the app along with your bitcoin address and you will receive your bitcoins very soon after.

When you connect a Facebook account to your LibertyX app, your first $1,000 of purchases are fee-free. Otherwise, all purchases are 1.5% + $3 in fees.

ADVANTAGES

  • Easy and fast way to buy bitcoins with cash
  • Low rate of 1.5% (plus store fee) for cash purchase method
  • The $1000 daily limit is quite high for a convenience service

DISADVANTAGE

  • Participating stores add their variable fee
  • Some verification is required, which lowers the expected level of privacy when buying cash
  • Attaching your Facebook account further compromises privacy

Bitcoin ATMs

You can use our bitcoin ATM card to buy bitcoins with cash. Bitcoin ATMs can be a quick and easy way to buy bitcoins, and they’re private too. However, this convenience and privacy come at a price; Most ATMs have fees of 5-10%.

ADVANTAGES

  • Our map makes it super easy to find a bitcoin ATM near you

DISADVANTAGE

  • Bitcoin ATMs often have 5-10% fees per purchase

Is it legal to buy Bitcoin in America?

It is legal to buy cryptocurrencies in the US. US regulators have classified cryptocurrencies as commodities, securities, and property, which means that while you can buy, trade, mine, or interact with cryptocurrencies, they are not eligible as a registered investment and transactions are subject to gains and losses at your taxes.

It is best to think of cryptocurrency in the same way as gold or silver, classic examples of commodities.

Can I buy Bitcoin in America?

Yes! You can buy Bitcoin in America through an online exchange or Bitcoin ATM. Online exchanges like Coinbase make it easy to buy bitcoin with a credit card, debit card, wire transfer, or wire transfer. Buying bitcoin with a credit or debit card has higher fees compared to a bank transfer, which is something to consider when deciding where and how to buy your bitcoin.

But what is the best way to buy crypto in the US?

This is up for debate, but most people would agree that exchanges are certainly the easiest way to buy cryptocurrency. After signing up for an exchange, you can buy and sell crypto from the comfort of your own home. The process is similar to popular stock brokerage websites like TD Ameritrade or E-Trade.

However, the important part is making sure you sign up for reputable cryptocurrency exchanges. There have been a few examples of shady exchanges going bankrupt and abandoning their customers. Luckily, the reliability of cryptocurrency exchanges has improved tremendously over the past few years, and we list some of the best and safest cryptocurrency exchanges right here on CryptoVantage.

Conversely, some people prefer peer-to-peer cryptocurrency exchanges, where clients in specific regions trade coins directly with each other. However, these types of exchanges come with some downsides as it can be much harder to facilitate trading.

Are there any states where cryptocurrency is not available?

There are no states where cryptocurrency is not available for purchase. However, since the regulations are at the state rather than the federal level, there are some states where you may want to avoid cryptocurrency deals. Four states you might want to avoid are New York, Rhode Island, Arizona, and Hawaii. Texas also has some unique laws related to crypto.

New York instituted a policy requiring any company dealing with cryptocurrency to apply for a BitLicense, which charges a $5000 application fee and contains 44 pages of compliance requirements. Since its implementation, most crypto firms have moved out of New York State.

Rhode Island collects sales tax on all cryptocurrency transactions and developments, which means that you as a company are taxed for adopting cryptos, but also for developing or researching cryptos. Like NY, most companies have disembarked.

Arizona has adopted the same policy as Rhode Island, taxing companies even just doing software development and imposing a sales tax on all transactions made with cryptocurrencies.

Meanwhile, Hawaii has no laws against cryptocurrencies, but it does require all exchanges to back their entire cryptocurrency balance with traditional currencies. As a result, most major US-based cryptocurrency exchanges have chosen not to offer any service to residents of the state of Aloha.

What is the cheapest way to buy cryptocurrency?

The cheapest way to buy Bitcoin in the US is through an online cryptocurrency exchange. Which exchange is the cheapest depends on their fees, be it for deposits, withdrawals or trading?

Your preferred funding method is a big factor in which exchange is best for you. Very often, credit and debit cards are among the more expensive ways to buy cryptocurrency, but people still do it for convenience. You can also opt for lower-fee methods like wire transfers, but these take significantly longer.

It should also be noted that you don’t have to use an American exchange (like American exchange) as exchanges like Binance accept American clients and have lower fees than some American exchanges.

Can I sell my bitcoin in the US?

Yes! You can sell your bitcoin (or any other crypto) in the US through an exchange.

Simply deposit your bitcoin (assuming it’s stored in your wallet and not already on the exchange) on the exchange. Once it’s on the exchange you can sell it at market value and once it’s sold you can withdraw the funds to the bank account you have linked to the exchange. Remember that you will be taxed on any gains from the sale of cryptocurrency in the US, similar to any situation where there is a capital gain. It’s similar to how the government views the stock market.

Is it possible to buy other cryptocurrencies with bitcoin?

Absolutely. Exchanging different cryptocurrencies is much easier than buying cryptocurrencies with fiat (such as USD, CAD, or EUR).

There are some more regulations regarding traditional currencies (which can be good or bad), but once you’ve acquired cryptocurrency things become much more fluid. It is very easy to exchange for other cryptocurrencies, e.g. B. Convert Bitcoin to Ethereum or vice versa. It’s relatively easy to open an account on multiple exchanges – provided you already have cryptocurrency. That’s because exchanges require significantly fewer identity checks if you’re only trading cryptocurrency. Sometimes an email address is enough.

Buying cryptocurrency with traditional currency will often be the hardest part of getting involved in the cryptocurrency market.

Bitcoin hacks and scams in the US

Fake Apps

In August 2021, based on a report by Trend Micro, Google had to remove 8 fake Android apps from its Play Store that looked like crypto-related websites that were nothing but scams.

This type of scam has become more common as bitcoin and other cryptocurrencies become more accepted. Cybercriminals take advantage of this and re-create cryptocurrency apps that look similar to legitimate apps or sound like they might be legitimate.

It has been reported that over 10,000 people have downloaded fake apps. Before entering any information into the app, make sure the app name, logo, and description match the creator’s website.

Another tip is to be suspicious of misspelled words or apps that try to inflate fees for extended benefits. Or, even better, download the app directly from the links on the wallet or exchange website.

Twitter hack

In 2020, the social media platform Twitter was the subject of a major hack that allowed a single entity to take control of tweets from any account on the platform.

The attacker ended up sending out tweets from 130 different high-profile Twitter accounts to acquire bitcoin. The tweets included a bitcoin address and told followers that any bitcoins sent to the address would be double returned and given to a charity.

Bitcoin mining is one of the best ways to buy Bitcoin in America

Although most Bitcoin holders turn to crypto exchanges to obtain digital currency, tech-savvy holders prefer to mine it. All bitcoins generated so far have been mined using special software. Miners need powerful computers and other associated hardware to facilitate mining. For those who lack the resources or know-how, many startups offer community mining services for a fee, although almost all of these are scams.

Bitcoin mining in the US is legal and convenient, but it can also be expensive. This is because the mining process requires a lot of electricity. Although anyone can mine bitcoin from anywhere in the country, certain states have been identified as preferred due to their affordable energy prices. Miners and researchers have recommended five states for their affordable energy rates: Louisiana, Idaho, Washington, Tennessee, Georgia, Texas, and Arkansas. On the other hand, the five most expensive states to mine Bitcoin in the US are Hawaii, Alaska, Connecticut, Massachusetts, and New Hampshire.

Developers are optimistic that over time it will become easier and cheaper to mine Bitcoin in the US. The largest mining farm ever built was a $500 million Bitmain 300 MW facility in Rockdale, Texas.

8 responses to “How to buy Bitcoin in America?”

  1. Herve Fodouop says:

    Good to know

  2. Isaac ihaza says:

    It is wonderful to be part of cryptocurrency

  3. Christian Jara says:

    Good info….

  4. Salman says:

    it’s interesting. This plan can be useful. Thankful.

  5. Agbor says:

    An interesting article, great platform

  6. Joel Nando Bertorelli says:

    Consider coinbase as a major player in the purchasing of crypto in America. It is number one in the country.

  7. Angela says:

    Very useful article for the blockchain fans & beginners who are interested in buying Bitcoin cryptocurrency.

  8. Isaac ihaza says:

    Very useful information

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