How To Buy Bitcoin In USA
The United States is one of the most Bitcoin friendly countries going and buying Bitcoin in the USA offers many options.
As with all countries, there are scam exchanges operating in America so knowing who and where to buy Bitcoin from is important for first time buyers.
USA has some of the most stringent licensing regulations, which means there are less exchanges based in the US. And not all exchanges operate in every state.
New York State is notoriously difficult to get an operating licence. That said, every platform we recommend in this article operates across the United States.
There are sporadic reports of some banks in America not allowing their customers to buy Bitcoin from certain exchanges, so it’s always a good idea to check with your bank.
If your bank doesn’t allow you to transfer money, you should simply open another account elsewhere. After all, why would you want a bank that tells you where you can and can’t send your money?
And not all banks allow credit card purchases. This isn’t really fair, but if a bank is offering you credit, I guess they have the right to stop a purchase of something.
That said, US banks are quickly coming around to the idea of Bitcoin, and have even been given the green light to custody Bitcoin for their clients, although this isn’t advisable.
Why Buy Bitcoin In The United States?
At 329 million, the United States is only 4.23% of the world’s population, but at $22.32 trillion the US economy is 15% of the world’s GDP.
The US is by far the biggest market for Bitcoin, yet according to statista, only 7% of Americans own Bitcoin, which is much lower than countries like Nigeria 32%, Turkey 20%, and Argentina 16%.
Of course these countries have badly performing native currencies. The way the US government is printing dollars, however, it should lead to higher inflation than usual and ultimately a weaker dollar.
The way the government is printing money is leading many leading investors to hedge into Bitcoin, and even some publicly funded companies have started to hold Bitcoin as part of their treasuries.
As with anywhere, there is a real desire to buy Bitcoin in USA. And with many larger American institutions starting to offer Bitcoin funds, and the SEC finally offering some clarity on regulations, the Bitcoin market is expected to grow in the coming years.
Where To Buy Bitcoin In USA
Buy Bitcoin With Kraken
Kraken Exchange is arguably the safest place to buy Bitcoin in USA. It is one of the most established, transparent and secure Bitcoin exchanges in the Bitcoin space.
Founded by Jesse Powell in 2011, Kraken is a regulated exchange based in the United States. By trading volume is the eighth biggest Bitcoin exchange in the world.
With Kraken exchange, its users in America can buy BTC via several payment methods. And with an average trading volume of $8 billion a month, you will always find Bitcoin at the right price.
Kraken’s fees are among the lowest in the industry, and the exchange regularly passes the Proof-of-Reserves audit. Something most other exchanges refuse to undertake.
The Proof-of-Reserves is voluntary, and to pass it an exchange has to prove it has the reserves it says it does on its books. This may seem like a simple idea, but almost every Bitcoin exchange has refused to take it.
As well as it being the most transparent exchange in the Bitcoin space, Kraken willingly undertakes a security audit, and has a comprehensive range of security features making it arguably the most secure exchange.
Buying Bitcoin with in USA with Kraken is easy. Simply sign up, create a password and your account is created.
Because Kraken is a regulated exchange, you will need to provide government approved documents to verify your account if you’re wanting to buy Bitcoin with USD.
The process takes a few minutes if you have your passport at hand. Once you have your account, verified you can send money via a bank transfer or using your credit/debit card.
Once your transfer is complete you can buy Bitcoin with the USD you have sent to your Kraken account. And once you have purchased the Bitcoin it will be stored in your Kraken Bitcoin wallet.
Even though Kraken is the most secure cryptocurrency exchange, it’s not advisable to store your Bitcoin in your exchange wallet long term. Instead a good secure hardware wallet is recommended for hodling Bitcoin long term.
As well as buying and selling Bitcoin, Kraken offers a host of trading features. For a full review of Kraken, click here…
Buy Bitcoin With Paxful
You don’t have to buy BTC at traditional crypto exchanges. You can buy Bitcoin in USA on a platform that brings buyers and sellers together.
Paxful is the world’s leading peer-to-peer Bitcoin marketplace, and it operates in almost every country including America.
Unlike Bitcoin exchanges, Paxful doesn’t have an order sheet in which you buy Bitcoin. Paxful acts more like a mediator between buyer and seller of Bitcoin.
Launched in 2015 by co-founders, CEO Ray Youssef, and COO, Artur Schaback, Paxful has headquarters in New York City, and established offices in Johannesburg, Estonia, Hong Kong, and Manila.
There are millions of buyers and sellers using the Paxful marketplace from all over the world, and you can find many people willing to accept USD.
You can buy Bitcoin with pretty much any other national currency, but you will probably get a better deal and more liquidity if you’re spending USD.
That said, if you have some Mexican Peso left over from your trip, buying Bitcoin from someone willing to accept it (or any other currency) is a great way to get rid of it.
Sign Up With Paxful And Buy BTC in USA
No matter where you live, Paxful operates in the whole of the United States.
Signing up with Paxful is easy, and you don’t even have to complete a KYC form. If this is your preferred method, your daily limit will be $1,000.
Also, if you don’t verify your account you’re likely to pay a premium as most sellers won’t do business with anyone not willing to do KYC.
If you complete the KYC registration, you will have many so more options.
To buy Bitcoin on Paxful, simply click on the ‘Buy Bitcoin’ tab, and it will search for all the local sellers in your jurisdiction.
You can enter the payment of choice and it will narrow it down to all the local sellers willing to accept your means of payment.
Once you find a seller offering a fair price, click ‘Buy’ and complete the amount of Bitcoin you wish to buy.
It will automatically put the amount of BTC in an escrow from your seller and await you to make payment.
A live chat will open up between you and the seller if you need to use it. All you have to do is complete payment, click ‘Confirm’.
Only do this once you are happy with terms and have checked the correct amount of Bitcoin is in the escrow.
Once you both confirm, the Paxful escrow will release the Bitcoin into your Paxful wallet, and send your payment onto the seller.
Again, it’s important not to keep Bitcoin on an exchange-type wallet, as these are susceptible to being hacked.
For a full review of Paxful, click here…
Buying Bitcoin In USA Is Easy
Bitcoin is growing in demand in USA and with the Federal Reserve’s Printing Press working overtime, I expect demand to keep growing.
Contrary to popular belief, USA is one of the most Bitcoin-friendly jurisdictions in the world. And as we saw with the rise of Silicon Valley, USA is likely to be the center of Bitcoin innovation.
There are many local Bitcoin exchanges in America, and many others not mentioned that are reputable. However there are some scammy exchanges, too, so be careful.
BlockFi is a relatively new platform, but is quickly becoming one of the most respected. As well as buying BTC, you can earn interest and take out loans on your Bitcoin.
Kraken has huge liquidity, and buying Bitcoin is easy. You can use bank transfers, credit and debit cards, and you can also send other cryptocurrencies to your Kraken wallet to buy Bitcoin.
Paxful is a global marketplace, and you will find a seller willing to accept pretty much anything of value, and the USD/BTC is the most liquid on there.
Whatever your choice of platform for buying BTC in USA, take a look at the full reviews for each platform, and then you’ll be equipped to make an informed decision.
Whichever platform you choose, it will be highly liquid, legal and safe for all residents of the United States.