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The biggest hurdle with crypto in the US is that all states can vary in their regulations surrounding digital currencies. Generally, states require you to use a licensed exchange, some restrict specific coins and many allow for Bitcoin ATMs. The good news is that when you learn about your home state’s regulations and how to navigate them, you can more easily navigate the crypto investment space.
Is it legal to buy cryptocurrency in the USA?
Cryptocurrency and cryptocurrency exchanges are legal in the USA. However, there are state-specific regulations that may apply to you.
For example, New York state has some of the strictest crypto regulations, while Texas has very few restrictions. How you go about buying crypto and what exchange(s) you use depends on where you live.
Although, know your customer (KYC) requirements are universal across the country. When purchasing cryptocurrency in the states, exchanges are required to make customers complete KYC forms — which means you’re required to verify your identity with date of birth, full name, address, social security number and more. These regulations are in place to prevent money laundering and other money-related crimes.
Buying cryptocurrency in the US boils down to three basic steps.
Step 1: Choose a cryptocurrency exchange
The first step in buying cryptocurrency is choosing a licensed cryptocurrency exchange in your state.
A crypto exchange is a site or platform that allows you to buy and trade cryptocurrencies, or coins. The large majority of exchanges allow you to trade one coin for another, such as Bitcoin for Litecoin. Exchanges can support a variety of deposit methods, such as bank deposits, credit or debit card deposits and sometimes even Apple Pay.
Not every exchange does business in every state. And there are a handful of crypto exchanges — such as Gemini — that are available in multiple states and countries. Gemini is available in more than 60 countries, 49 US states, plus Puerto Rico and Washington, DC.
Some exchanges aren’t legal in the USA at all, such as KuCoin and Binance. For Binance, you must use their US site (Binance.us). While looking for an exchange, first make sure it’s legal in the United States and licensed in your state.
Step 2: Get a crypto wallet
After you’ve found an exchange you can use in your home state, choose a compatible crypto wallet to store your digital assets.
A crypto wallet — sometimes called a digital wallet or a Web3 wallet — is where you store your cryptocurrency and tokens. Your wallet also serves as proof of ownership, with your wallet’s public address tied to your owned digital assets. Having your assets in your personal crypto wallet proves that it’s yours.
Choosing a digital wallet starts with your preferences. For many, a software wallet with a browser extension is the easiest way to manage and store assets. MetaMask and WalletConnect are popular software crypto wallets that are supported on various crypto exchanges, NFT marketplaces and blockchain applications.
There are also hardware wallets, like Ledger, that plug into your computer and are only online when they’re on, making them a little more secure than software options.
The wallet you choose depends on your answer to three main questions:
Do you plan on using blockchain applications? Software wallets (hot storage) like MetaMask and Trustwallet are solid options, and are widely accepted on marketplaces and crypto games.
Are you going to hold your cryptocurrency long-term? If you plan on holding onto your cryptocurrency for the long haul as an investment, then a hardware — cold storage — wallet might be the route to go since they’re generally the safer option.
Are you new to crypto? A software wallet is a solid choice if you’re new to crypto, since software options are almost always free to use and download, and are simple to use in your browser.
Step 3: Research crypto coins
There are thousands of cryptocurrencies in the world — currently an estimated 19,000 in circulation with more in development.
Of course, there are big-name coins that you may have already heard of, such as the original Bitcoin (BTC), the widely accepted and popular ether (ETH), and the lord of memecoins Dogecoin (DOGE). But just because these are the most well-known coins doesn’t mean you have to invest in them.
Some other top market cap coins include:
Tether (USDT)
USD Coin (USDC)
BNB (BNB)
XRP (XRP)
Solana (SOL)
Litecoin (LTC)
Shiba Inu (SHIB)
Cardano (ADA)
Polygon (MATIC)
Binance USD (BUSD)
Here are four things to keep in mind while researching coins:
Profit is never guaranteed. Even if you choose to invest in Bitcoin — known as the original cryptocurrency — there’s still no guarantee that you’ll come out on top. All crypto coins are a speculative investment and can appreciate and depreciate at any moment.
Consider use cases. Some coins, such as Cardano, are invented for specific purposes like identity management, traceability and simplifying data collection. Coins and their blockchains that have a specific purpose and actual uses may be more worth the investment — but remember tip number one.
Read the coin’s whitepaper. A whitepaper is an informational document either the coin or blockchain developers issue. It mainly advocates for why the coin is valuable, outlines its use-cases and how the coin works. A whitepaper can help you make an informed decision.
Education. Crypto is still a new(ish) space, and many of the educational materials out there are catered toward crypto enthusiasts. However, reading up on reliable crypto news sources, browsing whitepapers or watching informative videos can help you better understand cryptocurrency before you invest.
To learn more about cryptocurrency, check out our guide on cryptocurrency and what it can be used for.
Where do I buy crypto in the USA?
Cryptocurrency can be bought at cryptocurrency exchanges, brokerages or Bitcoin ATMs in the US.
Cryptocurrency exchanges. Buy and own crypto assets. Tend to offer the most variety in terms of coin listings, and more flexibility with your owned assets. Examples include Coinbase, Gemini.
Crypto brokers. A broker is a middleman who can help you arrange cryptocurrency investments, such as eToro and Robinhood. These brokerages buy crypto on your behalf.
Bitcoin ATMs. Typically incurs more fees, but may be a good option for those new to buying cryptocurrency or for those only interested in buying Bitcoin with physical cash. Many states have these ATMs available where you can insert cash into the machine and have the Bitcoin transferred to the wallet address or account of your choice.
Cryptocurrency exchanges and brokerages are plentiful and can vary in fees, coin listings, deposit methods and supported wallets.
Gemini was founded in 2015 and operates as a global digital asset exchange and New York trust company. The platform is available in all 50 states and boasts a number of security features, including insurance against exchange hacks. Gemini carries over 90 cryptocurrencies. Some altcoins available are Cosmos (ATOM), Maker (MKR) and Dogecoin (DOGE).
Gemini's fees are somewhat higher than those charged on other exchanges. The platform charges as much as 1.49% on transactions over $200.
Minimum deposits
$0
Fiat currencies
7
Supported assets
81
Supported states
50
Gemini was founded in 2015 and operates as a global digital asset exchange and New York trust company. The platform is available in all 50 states and boasts a number of security features, including insurance against exchange hacks. Gemini carries over 90 cryptocurrencies. Some altcoins available are Cosmos (ATOM), Maker (MKR) and Dogecoin (DOGE).
Gemini's fees are somewhat higher than those charged on other exchanges. The platform charges as much as 1.49% on transactions over $200.
Pros
Highly regulated
All crypto held in the exchange wallet is insured
Deep liquidity
Cons
Higher fees than other exchanges
Limited trading pairs
Limited deposit options
Deposit method
Bank transfer (ACH),PayPal,Wire transfer (USD),Bank transfer (EUR and GBP),FAST transfer (SGD),Cubix,Plaid Direct Payments (UK)
Deposit Fees
ACH transfer: none Wire transfer (USD): determined by your bank +$25 PayPal: 2.50% Cubix: none
Withdrawal Fees
ACH transfer: none USD wire transfer: $25
Trading Fee
Trading: Dependant on transaction size: $10 or less: $0.99 $10–$25: $1.49 $25–$50: $1.99 $50–$200: $2.99 More than $200: 1.49% of order value
Based in the United States and founded in 2011, Kraken is a popular choice for many crypto enthusiasts Lists 87 cryptocurrencies, including BTC, ETH, DOGE and ADA. You can expect these fees:
0.9% fee for buying stablecoins with another stablecoin or USD
Processing fee of $0.25+3.75% fee for card purchases and digital wallet payments
0.5% online banking processing fee.
Using the Buy Crypto Widget incurs a 1.5% fee per transaction. Using Kraken Pro can result in lower fees.
Fiat currencies
7
Supported assets
404
Supported states
47
Based in the United States and founded in 2011, Kraken is a popular choice for many crypto enthusiasts Lists 87 cryptocurrencies, including BTC, ETH, DOGE and ADA. You can expect these fees:
0.9% fee for buying stablecoins with another stablecoin or USD
Processing fee of $0.25+3.75% fee for card purchases and digital wallet payments
0.5% online banking processing fee.
Using the Buy Crypto Widget incurs a 1.5% fee per transaction. Using Kraken Pro can result in lower fees.
Pros
Has never had a sitewide hack
Lists 80+ cryptocurrencies
Years of experience
Cons
High fees with instant buy
Texas can't buy EUR or EUR pairs
Can't use a credit card
Requires $10 account minimum
Deposit method
Bank transfer,Credit card,Cryptocurrency,Debit card,SEPA,Instant SEPA,Apple Pay,Google Pay,SWIFT,ACH online banking
Deposit Fees
ACH deposit - Fees vary ($10 minimum deposit) Credit and debit card - Fees vary ($10 minimum deposit) Apple Pay or Google Pay - Fees vary ($10 minimum deposit) Crypto - Free
Withdrawal Fees
FedWire withdrawal - $4–$35 Crypto - Fees vary depending on coin or token
Trading Fee
Trading: Maker: 0.25% - 0.00% Taker: 0.40% - 0.01% Spread: Variable spread included in the price, calculated before orders are executed
Based in Silicon Valley and founded in 2013, boasts 7M+ users and serves 150+ countries. Trade between cryptocurrencies, precious metals, US equities and national currencies. Offers 76 currencies that include BTC, BCH, ADA, ETH and DOGE. Supports account funding from banks, cards and other crypto wallets. Deposit fee only on bank transfer wires — $20 for deposits of up to $5,000.
Fiat currencies
27
Supported assets
274
Supported states
42
Based in Silicon Valley and founded in 2013, boasts 7M+ users and serves 150+ countries. Trade between cryptocurrencies, precious metals, US equities and national currencies. Offers 76 currencies that include BTC, BCH, ADA, ETH and DOGE. Supports account funding from banks, cards and other crypto wallets. Deposit fee only on bank transfer wires — $20 for deposits of up to $5,000.
Pros
$0 fee for funding with bank account
Free to open and maintain account
$0 fee commissions on trades
$0 fee withdrawal
Cons
3.99% fee for debit or credit card funding
Some coins restricted for US customers
Deposit method
Bank transfer,Credit card,Debit card,Bank transfer (SEPA),Apple Pay,Google Pay
Deposit Fees
Bank transfer: None Credit card: 3.99% Debit card: 2.49% Google Pay: None
Withdrawal Fees
Cryptocurrency: $2.99 + coin fees Bank transfer: $3.99 Google Pay: None
Started in 2012, Coinbase aims to build the crypto-economy with its beginner friendly platform. Over 70 million users from over 100 countries use Coinbase.
Coinbase has over 80 cryptocurrencies available, including Dogecoin (DOGE) and Shiba Inu (SHIB). Transaction fees are calculated using a combination of factors, including your payment method, the order size and varying market conditions, like volatility.
Fiat currencies
23
Supported assets
271
Supported states
44
Started in 2012, Coinbase aims to build the crypto-economy with its beginner friendly platform. Over 70 million users from over 100 countries use Coinbase.
Coinbase has over 80 cryptocurrencies available, including Dogecoin (DOGE) and Shiba Inu (SHIB). Transaction fees are calculated using a combination of factors, including your payment method, the order size and varying market conditions, like volatility.
Pros
Large selection of cryptocurrencies
Offline crypto storage
Strong customer reviews
Cons
Transaction fees vary
Minimum balances apply
Customer service ratings remain poor in platform reviews
Deposit method
Bank transfer (ACH),Debit card,PayPal,Wire transfer,Apple Pay,Google Pay
Deposit Fees
ACH: $0 Wire (USD): $10
Withdrawal Fees
ACH: $0 Wire: $25
Trading Fee
Trading: Maker: 0.40% - 0.00% Taker: 0.60% - 0.05% Spread: Average of 0.5%
Founded in 2013 as a traditional investment app, you can now buy up to seven cryptocurrencies through Robinhood, including BTC, ETH, LTC and DOGE. No fees to buy and sell crypto and no account minimum. But you can't withdraw crypto funds from your Robinhood account.
Fiat currencies
1
Supported assets
20
Supported states
49
Founded in 2013 as a traditional investment app, you can now buy up to seven cryptocurrencies through Robinhood, including BTC, ETH, LTC and DOGE. No fees to buy and sell crypto and no account minimum. But you can't withdraw crypto funds from your Robinhood account.
Paybis is a global cryptocurrency broker based out of the UK, founded in 2014. It's supported in over 180 countries, supports 42 fiat currencies and lists over 30 cryptocurrencies. While you have hundreds of buying options, you can only sell BTC on the platform. For payment, the fees vary, and there are high fees for fiat transactions. Paybis is known for its responsive customer service and supports nine different languages. It may be best suited for beginner traders looking to buy crypto with fiat currency, but it's not supported in all U.S. states.
Fiat currencies
42
Supported assets
55
Supported states
48
Paybis is a global cryptocurrency broker based out of the UK, founded in 2014. It's supported in over 180 countries, supports 42 fiat currencies and lists over 30 cryptocurrencies. While you have hundreds of buying options, you can only sell BTC on the platform. For payment, the fees vary, and there are high fees for fiat transactions. Paybis is known for its responsive customer service and supports nine different languages. It may be best suited for beginner traders looking to buy crypto with fiat currency, but it's not supported in all U.S. states.
eToro is a multi-asset investment platform. Started in 2007, the platform is built on social collaboration and lets customers copy the trades of popular investors. The exchange offers a range of cryptocurrencies, including Polkadot (DOT) and Filecoin (FIL). Users can also trade with a demo account, allowing them to learn the platform and practice crypto-trading strategies without risking real money.
The eToro exchange charges 'round-trip' spreads when buying crypto assets. The spread covers the buy-and-sell side of the transaction and varies based on the asset being purchased. Current spreads vary between .75% and 2.90%
Fiat currencies
3
Supported assets
3
Supported states
48
eToro is a multi-asset investment platform. Started in 2007, the platform is built on social collaboration and lets customers copy the trades of popular investors. The exchange offers a range of cryptocurrencies, including Polkadot (DOT) and Filecoin (FIL). Users can also trade with a demo account, allowing them to learn the platform and practice crypto-trading strategies without risking real money.
The eToro exchange charges 'round-trip' spreads when buying crypto assets. The spread covers the buy-and-sell side of the transaction and varies based on the asset being purchased. Current spreads vary between .75% and 2.90%
Pros
Multi-asset exchange
Social trading features
Demo account available
Cons
Fewer cryptocurrencies available than some exchanges
Crypto.com bills itself as the world's fastest-growing app and includes a large selection of cryptocurrencies. The exchange launched under the name Monaco in 2016 and changed to crypto.com in 2018. Its native token, Crypto.com Coin (CRO), can be used to lower fees on the exchange.
Crypto.com charges maker and taker fees for cryptocurrency trades. The fees vary depending on customer tier levels. Tiers are adjusted daily and are based on a customer's individual trading volumes incurred over the past 30 days.
Fiat currencies
31
Supported assets
266
Supported states
No supported
Crypto.com bills itself as the world's fastest-growing app and includes a large selection of cryptocurrencies. The exchange launched under the name Monaco in 2016 and changed to crypto.com in 2018. Its native token, Crypto.com Coin (CRO), can be used to lower fees on the exchange.
Crypto.com charges maker and taker fees for cryptocurrency trades. The fees vary depending on customer tier levels. Tiers are adjusted daily and are based on a customer's individual trading volumes incurred over the past 30 days.
Pros
Large selection of crypto
Low fees
Staking for rewards available
Cons
Can be difficult to navigate
Customer service could be more responsive
Expensive withdrawal fees
Fiat currencies
31
Supported assets
266
Supported states
No supported
Okcoin Cryptocurrency Exchange
Based out of China and launched in 2013, OKcoin is known as one of the largest crypto exchanges — it's available in over 190 countries to date. Its claim to fame is its low fee structure, charging less in trading fees than many other exchanges. OKcoin lists over 50 cryptocurrencies, has a convenient mobile app and bank transfer deposits are free. It's a good choice for beginners and experts. However, it's not available in all U.S. states.
Minimum deposits
No minimum
Fiat currencies
3
Supported assets
104
Supported states
No supported
Based out of China and launched in 2013, OKcoin is known as one of the largest crypto exchanges — it's available in over 190 countries to date. Its claim to fame is its low fee structure, charging less in trading fees than many other exchanges. OKcoin lists over 50 cryptocurrencies, has a convenient mobile app and bank transfer deposits are free. It's a good choice for beginners and experts. However, it's not available in all U.S. states.
Pros
Over 50+ cryptocurrencies
Low trading fees
Bank and debit card transfers supported
Beginner interface and advanced interface
Cons
Unavailable in five states
3.99% fee for debit card deposits
Deposit method
Bank transfer (ACH),Epay,Credit or Debit Card,SEPA,Apple Pay,Prime X
Deposit Fees
Bank transfer: Free EPAY: 1%
Withdrawal Fees
Prime Trust (bank transfer): $35 Silvergate Bank (bank transfer): Free EPAY: Free
Trading Fee
Maker: 0.0-0.10% Taker: 0.02-0.20%
Minimum deposits
No minimum
Fiat currencies
3
Supported assets
104
Supported states
No supported
Paxful
Paxful is a peer-to-peer crypto marketplace, founded in 2015 and based out of New York. Paxful is a smaller exchange, only listing three cryptocurrencies: BTC, ETH and USDT. However, it supports well over 140 fiat currencies and a huge variety of payment methods, including gift cards, debit and credit cards, crypto wallets and even Apple Pay. Paxful is available in over 100 countries, including the U.S., but excludes a few states.
Fiat currencies
158
Supported assets
4
Supported states
No supported
Paxful is a peer-to-peer crypto marketplace, founded in 2015 and based out of New York. Paxful is a smaller exchange, only listing three cryptocurrencies: BTC, ETH and USDT. However, it supports well over 140 fiat currencies and a huge variety of payment methods, including gift cards, debit and credit cards, crypto wallets and even Apple Pay. Paxful is available in over 100 countries, including the U.S., but excludes a few states.
Pros
Multiple deposit and payment methods
No buyer transfer fee
Speedy transactions
Cons
Only three cryptocurrencies listed
Sellers can chose their exchange rates
Deposit method
Bank transfer,Cash,Credit card,Cryptocurrency,Debit card,PayPal
Marketplace founded in 2013, extending from London to the US in 2019. Cex.io allows you to fund an account with ACH, credit cards, wire deposits. It lists 18 cryptocurrencies that include BTC, BCH, ETH and DOGE.
Fiat currencies
4
Supported assets
30
Supported states
32
Marketplace founded in 2013, extending from London to the US in 2019. Cex.io allows you to fund an account with ACH, credit cards, wire deposits. It lists 18 cryptocurrencies that include BTC, BCH, ETH and DOGE.
Pros
Accepts credit cards
18 coins available
No reported sitewide hacks
Cons
Customers report poor customer service
Verification process may take days or weeks
Deposit method
Bank transfer,Credit card,Cryptocurrency,SEPA,Faster Payments (FPS),SWIFT
Sell your cryptocurrency in the US in two ways: through peer-to-peer transactions, or more commonly, at licensed cryptocurrency exchanges.
Crypto exchanges can also allow you to trade your owned crypto for another, called pairs. On an exchange, trading pairs look like this: USDT/ETH or BNB/WBNB.
Coins in the USA
There are many coins available to US residents, each carrying different uses and availability. The coins available to you depend on your home state and what exchanges are licensed.
For example, New York has hefty restrictions on what exchanges you can use, therefore restricting the coins available to you.
Where can I buy Bitcoin (BTC) in the USA?
You can buy Bitcoin (BTC) in the US on multiple exchanges. BTC is often called the original cryptocurrency. It’s one of the most widely available coins and is listed on nearly every cryptocurrency exchange. Popular exchanges include Crypto.com, Binance.US, Gemini and Coinbase. However, Binance.US is not available in a few states like California and Hawaii.
You can buy the open-source memecoin Dogecoin (DOGE) in the US on multiple exchanges, such as Binance.us, Coinbase and Gemini. DOGE originally started as a joke and is based on the popular meme featuring a Shiba Inu dog — and the coin has an unlimited supply.
Ether (ETH), Etheruem’s native asset, is available on most exchanges licensed in the US. Ethereum is one of the most popular blockchains currently with multiple blockchain applications being built on it, including NFT marketplaces like OpenSea, Rarible and dozens of blockchain games. You can buy ETH on most exchanges and brokerages including eToro, Gemini, Crypto.com and Kraken. Know that the exchange Kraken isn’t licensed in New York state.
You can buy Ripple (XRP) on a handful of US-licensed exchanges. XRP is the native currency of the Ripple network. You can buy XRP on Bitstamp and Crypto.com. XRP is a little harder to find on popular exchanges (compared to ETH and BTC), and even Gemini doesn’t list XRP at the time of writing. Additionally, Crypto.com is not licensed in the state of New York.
Uniswap (UNI) can be bought in the US. Uniswap is a cryptocurrency exchange, and UNI is the platform’s native governance token. US residents can buy it from exchanges such as Uniswap, Kraken and Gemini.
US residents are required to verify their identity through KYC requirements, and cryptocurrency exchanges must get their state-level money transmitter licensing, also known as MTL.
For an exchange to get its MTL, it must have a minimum net worth and surety bond — a contract that ensures the exchange can meet its obligations. Essentially, crypto exchanges must prove they have enough net worth and be able to meet client obligations before they can get their MTL and allow customers to buy and sell crypto in the state.
Other states or territories, such as New York and Puerto Rico, have additional requirements for crypto businesses. For example, New York requires cryptocurrency exchanges and some crypto businesses to get a BitLicense, instated in 2015.
The good news is as a consumer, if you visit a cryptocurrency exchange that’s not licensed in the USA or your state, the platform is likely to notify you of that based on your IP address, usually in the form of a pop-up window. For example, if you were to visit Binance on its main site, the platform would offer to redirect you to the US-licensed platform.
USA cryptocurrency taxes
Cryptocurrency is considered property and is taxed as such. The IRS issued Notice 2014-21, 2014-16 I.R.B. 938 which states that cryptocurrency (referred to as virtual currency) is treated as property.
When you sell your crypto, you must “recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses,” according to the IRS.
When you file your taxes, you have to report your crypto with Form 1099-NEC.
What to know before you buy crypto in the USA
If you’re unsure that a cryptocurrency exchange is legal in your home state, or if you’re feeling iffy around crypto in general, here are some quick tips:
KYC is a must. A legitimate cryptocurrency exchange should require you to complete KYC requirements. If an exchange allows you to buy and sell crypto without completing any KYC steps, the exchange may not be authorized in the country or state you live in.
Crypto is a speculative investment. Any exchange or crypto business that reports “guaranteed” earnings or something similar may be a scam. Any given coin’s value can fluctuate by the second; even the most quote-unquote stable ones, like ETH or BTC.
Never give out your crypto wallet’s info. Phishing scams are rampant in the crypto space, and scammers may try to get your crypto wallet’s private keys to take your held digital assets. Never give out your wallet’s private key or passphrase to anyone.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 449 Finder guides across topics including:
Bitcoin adoption in Texas could hit 14% by the end of the year, with 8% of Texan adults already owning Bitcoin.
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