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 BlockFi
Kraken is arguable the easiest platform to buy BTC in USA. Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is much more than a place just to buy Bitcoin.
BlockFi is based in New Jersey and serves all of the United States. 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 is kept 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.
To buy Bitcoin with BlockFi, simply wire some USD from your bank to your BlockFi account and your funds will automatically transfer from USD into GUSD (Gemini USD stablecoin).
Once your account is funded, simply click ‘Trade’ and then fill in the trade form with how much Bitcoin you want to buy.
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.
Earn Interest On Your Bitcoin With BlockFi
If you are buying Bitcoin to hodl it, and you store it in your BlockFi account, you will receive 6% annual interest.
There are other platforms offering interest bearing accounts with even higher rates, but we believe BlockFi is by far the most respected.
It has institutional backing from the likes of Fidelity Investments, Morgan Creek Digital, and Winklevoss Capital to name a few, and is one of only a few exchnages to have the New York BitLicence.
To afford such a lucrative interest rate, BlockFi lends out your Bitcoin to accredited borrowers, who use it for whatever reason.
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 long term.
You can receive your interest in BTC, or if you prefer GUSD you can receive it in a stablecoin. You can even receive your interest in Ethereum (ETH) or Litecoin (LTC), which are the other two cryptocurrencies, BlockFi offers.
BlockFi also offers interest bearing accounts for any cryptocurrency you hold with them. Each cryptocurrency earns different APY and the best rate BlockFi offers is a fantastic 8.6% for GUSD.
A staggering amount of interest if you compare it to the paltry amount you get from your bank.
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.
By using your Bitcoin as collateral, you can unlock up to 50% of your value in USD. If you apply for a loan, BlockFi will send you the funds the same day through a bank wire to your bank or by stablecoin, whichever you prefer.
There are many advantages to borrowing instead of selling, including tax benefits, so it’s probably better to get a loan than sell your Bitcoin
For a full review of BlockFi, click here…
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.
It’s not just national currencies that sellers will accept on Paxful. You can buy Bitcoin with a Walmart MoneyCard, or if you want to remain private, you can also buy Bitcoin anonymously. In fact, Paxful offers over 350 ways of buying BTC.
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.
What is the point of Bitcoin?
Bitcoin is a decentralized money. A money that nobody can control or manipulate, and a money that nobody can print and devalue. It’s also not necessary for any third party to verify transactions, so it makes it much faster and cheaper to send value. It’s also money built on the Internet: a society of almost 5 billion people.
What price will Bitcoin reach?
There have been many Bitcoin price predictions ranging from $0 to tens of million per Bitcoin. But the truth is, nobody knows for sure. However, it is the soundest and hardest money ever created. Many say it is digital gold, but I believe in the digital age, it is more useful than gold. So, let’s say Bitcoin reaches the market cap of gold, which is believed to be $10 trillion, each Bitcoin would be worth $500,000. Is that reachable? Absolutely! Will it be plain sailing? Absolutely not!
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
How much does it cost to mine 1 Bitcoin?
There is no exact science for the cost of mining a bitcoin, because the price will change every two weeks maximum. This is because there’s a Difficulty Adjustment that ensures it takes about 10 minutes to mine a block. And with other costs, such as your mining equipment, electricity, and other costs, it’s estimated that the average price to mine a bitcoin is around $12,500.
Pablo is a writer at Bitcoin Maximalist. Originally from Spain, Pablo grew up in the UK, and loves clubbing and gaming. Pablo is a keen Bitcoiner and loves to share his wisdom to help spread the good news of Bitcoin.