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  • How To Buy Bitcoin In USA

    How to buy Bitcoin in USA

    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 the USA 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. An not all exchanges operate in every US state.

    New York State is notoriously difficult to get an operating licence. That said, every platform we recommend in this article operates in every US state.

    There are sporadic reports of some American banks not allowing its 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. Why would you want a bank that tells you where you can and can’t send your money?

    How to buy Bitcoin in USA

    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 USA?

    At 329 million, USA is only 4.23% of the world’s population, but at $22.32 trillion theUS 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, but the way the US government is printing dollars, it will lead to higher inflation than usually and ultimately a weaker dollar.

    buy bitcoin

    This fact is undeniable, and we’re seeing large amounts of corporate money being invested in Bitcoin as a hedge against inflation, and even Wall Street legends saying they were investing in Bitcoin.

    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 regulations being more friendly, the growth of the Bitcoin market is expected to grow in the coming years.

    Buy Bitcoin in USA With Blockfi

    Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is more than a place you can buy Bitcoin.

    BlockFi is based in New Jersey and serves all of the US. And as well as a platform to buy Bitcoin, Blockfi also offers an interest bearing account and cash loans backed by Bitcoin collateral.

    Any Bitcoin stored with BlockFi’s is custodied with Bitcoin firm Gemini. Gemini is owned by the Winklevoss twins, and it is one of the safest places to store Bitcoin as they always keep 95% of their holdings in an underground vault.

    Blockfi also has institutional backing from the likes of Fidelity Investments, Morgan Creek Digital, and Winklevoss Capital to name a few.

    To buy Bitcoin with Blockfi, simply wire some USD from your bank to your Blockfi account and Blockfi will automatically transfer the USD into GUSD (Gemini USD stablecoin).

    It’s a 1:1 parity so however much you send in dollars you will receive in GUSD.

    And then to buy Bitcoin, simply click ‘Trade’ and then fill in the trade form for how much Bitcoin you want to buy. The Blockfi interface is so easy to use and buying Bitcoin takes seconds.

    You can set a target price if you like, and it will only execute once your price has been met, but there is really no easier platform to buy Bitcoin with than Blockfi.

    What stands out about Blockfi, however, is that it offers its users an interest bearing account.

    Bitcoin is a hedge against the Government Printing Press

    So, if you are buying Bitcoin to hodl it, and you store it in your Blockfi account, you will receive 6% annual interest.

    Blcofi lends out your Bitcoin to accredited borrowers, who use it for whatever reason, and this is how Blockfi can afford to pay interest.

    You will start earning interest from the day you deposit Bitcoin into your account, and you’re paid monthly, which works out at just under 0.5% a month.

    The interest is compounded, so whatever interest you earn on a monthly basis earns you even more interest the following month, and the compound effect really starts to pay dividends if you keep it in there.

    You can receive your interest in BTC, or if you prefer GUSD you can receive it in a stablecoin, or you can even receive your interest in Ethereum (ETH) or Litecoin (LTC), which are the other two cryptocurrencies, Blockfi offer.

    Blockfi also offers interest bearing accounts for any cryptocurrency you hold with them and the best rate Blockfi offers is a fantastic 8.6% for GUSD.

    This is a staggering amount of interest if you compare it to the paltry amount you get from your bank.

    Buy Bitcoin with Blockfi

    Blockfi offers loans for its Bitcoin hodlers, too. If you’re a long-term hodler and you need cash for whatever reason, you can apply for a collateralised loan with Blockfi.

    By using your Bitcoin as collateral, you can unlock up to 50% of your value in USD, and Blockfi will send you the funds the same day through a bank wire or stablecoin, whichever you prefer.

    Whatever your need for cash, it’s better to get a loan than have to sell your Bitcoin. There are many advantages to borrowing instead of selling, including tax benefits.

    Buy Bitcoin In USA With Kraken

    Kraken Exchange is one of the most established, transparent and secure Bitcoin exchanges in the Bitcoin space, and is based in the US and operates throughout most of the world.

    Founded by Jesse Powell in 2011, Kraken is a regulated exchange based in the U.S. and by trading volume is the eighth biggest Bitcoin exchange in the world.

    With Kraken exchange its US users can buy Bitcoin 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, which many other exchanges refuse to undertake.

    The Proof-of-Reserves is voluntary, and to pass it Kraken had to prove it had 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 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 using 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.

    Open an account with Kraken

    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 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, and instead a good secure hardware wallet is best 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 In USA With Paxful

    Paxful is the world’s leading peer-to-peer Bitcoin marketplace, and it operates in almost every country.

    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.

    buy bitcoin with Paxful

    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 buying Bitcoin with 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.

    It’s not just national currencies that sellers will accept on Paxful. You will be able to find a seller that will accept gift cards, air miles, or whatever the seller is willing to accept.

    Buy Bitcoin

    You will probably pay a higher rate for your Bitcoin if you want to trade it for a gift card, but again, it’s better than buying something you don’t need.

    Signing up with Paxful is easy, and you don’t even have to complete a KYC form, but your limit will be $1,000.

    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, however, will have many more options to buy Bitcoin.

    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.

    Buy Bitcoin at Paxful

    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.

    If buying Bitcoin to hodl long term, a secure hardware wallet such as a Ledger Nano or Trezor are the best selling hardware wallets for good reason.

    For a full review of Paxful, click here…

    How to buy Bitcoin in USA

    Buying Bitcoin In USA Is Easy

    Bitcoin is very popular in USA and with the state of the world economy and all governments printing money like never before, I expect the popularity of Bitcoin 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.

    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 Bitcoin in USA is, take a look at the full reviews for each platform, and then you’ll be equipped to make an informed decision.

    Whichever platform you do buy Bitcoin from, it will be highly liquid, legal and safe. Welcome to the world of Bitcoin.

    Author: Pablo Clarke

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    How To Buy Bitcoin