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Buying cryptocurrencies can be made simple if done correctly. With several ways of starting in the crypto trading industry, it is important that you start it off with the correct methods for a smoother and more successful start. So if you’re a US citizen looking for how to get started in crypto, you’re at the right guide.
Here are a few basic principles to consider before buying any crypto:
- Have a Stable Financial Foundation
- Find a suitable Crypto Exchange for your needs
- Know the Legality of Cryptocurrency in your Country
With that in mind, here are instructions for buying cryptocurrency, like Bitcoin, in the United States of America.
The United States of America (USA) is at the height of the cryptocurrency industry- this has been a fact as the USA currently has the highest concentration of traders on international crypto exchanges. However, despite the prevalent fame of cryptocurrency in the USA, the legality of cryptocurrency remains vague, especially in certain states.
The Finance Crimes Enforcement Network (FinCen) continues to develop the legislation and regulations in accordance with the growth of usage and economic influence of the crypto market in the country. As such, cryptocurrency is still treated as a “digital representation of value as a medium of exchange” but is not recognized as legal tender (a means of payment- like US dollars).
With that in mind, starting out in cryptocurrency in the USA is really easy since millions of US-based traders are currently active in the crypto market. As a beginner, it is best to know how to get started in the right place at the right time, for you to be a successful crypto investor.
Crypto Exchanges Recommended for American Investors
Is it Legal to Buy Cryptocurrencies in the US?
Cryptocurrency is legal in the USA. It is operated and regulated under the regulations provided by these authorities:
- The FinCen
- Securities and Exchange Commission (SEC),
- Commodity Futures Trading Commission (CFTC)
- and other authorities.
However, as previously stated, different states have different regulations, with some being stricter than others.
Texas and Wyoming, for example, have crypto-friendly laws that allow crypto businesses and traders to operate under less stringent regulations. New York, on the other hand, is notorious for having stricter crypto regulations and only allowing a small number of crypto exchanges and services to operate in the state.
In summary, cryptocurrency is not illegal in the USA. It is safe to buy; however, there are only certain crypto services and exchanges that are legally available in the state you’re in. To put it another way, before you open an account, you should confirm which exchanges are permitted in your state.
Are You Prohibited to Buy Cryptocurrency in Any State?
Fortunately, there are no states in the United States where cryptocurrency is either unavailable or prohibited. Your only limitation when it comes to crypto in the USA is the operation of exchanges in your area.
Is it Possible to Sell Bitcoin in the US
You can sell Bitcoin, and any cryptocurrency, in the USA. You can either convert Bitcoin into cash or sell your token in a peer-to-peer transaction. This method is highly dependent on the exchange you’re using, but most allow you to sell your Bitcoin directly to the market.
Here are ways to easily sell your Bitcoin tokens.
- Cryptocurrency exchanges. Exchanges act as a broker, holding the seller’s and buyer’s funds. By going to the market, you can simply sell your Bitcoin, state the amount of currency you wish to trade, and the exchange will automatically complete the transaction. The money you’ll get from selling your Bitcoin can go to a connected e-wallet or bank account or simply stay in your crypto wallet.
- Direct Trades (per-to-peer). You can sell your Bitcoin in direct trade with another trader. You can either set up a direct meeting with your buyer or perform the transaction online with a specialized exchange that allows P2P transactions (like Binance.US)
- Bitcoin ATM. Bitcoin ATMs allow you to sell specific amounts of Bitcoin for cash by scanning your crypto wallet QR code. However, Bitcoin ATMs tend to have higher transaction fees.
How easy is it to buy Crypto in the US?In the United States, purchasing cryptocurrency is relatively simple. However, some states, such as New York, only allow certain crypto exchanges to operate in their state. Once you’ve decided which cryptocurrency exchange to use, simply follow these simple steps:
Register/Login to an account on the crypto exchange you want to start on.
Deposit cash into your exchange account or Connect your bank account, e-wallet or debit/credit card.
Navigate to the crypto market, find a crypto token (e.g. Bitcoin (BTC)) and select Buy.
Fill in the necessary information, such as the purchase amount and payment method.
Finally, review and confirm your transaction.
It’s as easy as that! Keep in mind that each crypto exchange may differ or require additional processes before you can purchase cryptocurrency, such as KYC (Know-Your-Customer) verification. You can still easily follow this because every major cryptocurrency exchange has guides that work in a similar manner on how to complete each step.
The Quickest Way to Buy Cryptocurrency in the US
The best possible way to get cryptocurrency in the United States of America is to buy it through a crypto exchange. Crypto exchanges are online platforms that provide crypto-related services that allow you to buy, sell, and trade your crypto assets. There are several popular exchanges that are perfect for novice traders, like:
When selecting a crypto exchange, there are several factors you want to consider:
- First, you need to consider what you want to invest in, for example, Bitcoin, and if it is available on the exchange.
- Next, fees you should be aware of. There are crypto exchanges that have lower fees and some have higher fees that might badly affect your investment.
- And finally, it is a must to consider the security of the crypto exchange and its reputation among its clientele.
Best Crypto Wallets for US Investors
Crypto Wallets are specialized hardware (cold) or software (hot) wallets that allow you to securely store your crypto assets while also protecting them from hackers. Wallets can operate in any state or country, but here are some crypto wallets that Bitcoin traders consider to be the best in the United States.
- Ledger Nano X. This is a hardware wallet that is the best and simplest way to keep your Bitcoin and other crypto assets safe and secure offline. This enables you to keep your crypto assets safe from malicious online threats. Setting this up is extremely simple, even for a novice. However, some small-time investors find $150 a bit too expensive to start up with.
- Trezor T. This is another popular cryptocurrency hardware wallet that supports an astonishing 1,800 coins and tokens. Trezor T provides superior security, additional protection, and access verification. However, the model’s cost of $300 might be steeper for most beginner investors.
- Electrum. Electrum is a software wallet that remains one of the best Bitcoin wallets because of its versatility and extensive security features. Electrum’s wallet is dedicated solely to Bitcoin assets and has the best security of any software-based crypto wallet.
- Coinbase. Coinbase is a hot wallet that is the best wallet for novice traders. It is the easiest wallet to start with if you still don’t know anything about crypto wallets and have a small budget. It can support Bitcoin and 197 more cryptocurrencies and has very low exchange fees. Its security is above average at most, but this is the most affordable and flexible crypto wallet.
Frequently Asked Questions
Yes, Bitcoin can be purchased at Walmart. Walmart customers can purchase Bitcoin in 200 of their stores across the United States. Each transaction is charged at 4%, and there is a cash exchange fee of 7%.
To purchase Bitcoin at your local Walmart, you can follow three simple steps:
- Go to your crypto exchange’s P2P Exchange and find a seller who is willing to work with Walmart2Walmart money transfer. Choose the number of Bitcoin you want to purchase, then select the cash deposit > Walmart2Walmart option
- The next step is to head to the nearest Walmart and go to the Walmart Money Center or Customer Service counter. Give them the transaction details as well as any valid government-issued identification card. Then send your payment to your seller.
- Notify your seller that you sent your payment with the receipt as proof and wait for your Bitcoin to be received in your wallet.
To buy Bitcoin with a debit card, you need to find a crypto exchange that supports debit card transactions like Coinbase. Each cryptocurrency exchange usually has debit card purchase limits and flat transaction fees, so you should double-check those before using that exchange.
To buy Bitcoin using a debit card:
Step 1. Create an account in the crypto exchange that supports debit card transactions.
Step 2. Connect your debit card to your crypto exchange account
Step 3. Verify your account or finish the Know-your-Customer process.
Step 4. Go to the market and find Bitcoin (BTC). Select it and click Buy. Choose a debit card as a payment method and confirm the transaction.