Best Places to Buy Bitcoin in the USA
Bitcoin is going from strength to strength. Since its release in 2013, the pioneering coin has grown by over 57,500%. It is still the leading asset by market cap and the epitome of crypto for millions of people around the world. As institutional adoption grows and more governments welcome virtual transactions, Bitcoin is bound to grow. Discover the best places to buy cryptocurrency in 2022.
Where to buy it?
You can buy cryptocurrency in USA on dozens of platforms. They are divided into several groups:
1. Crypto exchanges
These platforms facilitate trading and storing of crypto, from Bitcoin to stablecoins like Tether. The biggest names in the US are Coinbase and Gemini. Binance is the largest exchange in the world, but Americans can only trade through its US branch. In recent years, the parent company has been connected to regulatory concerns.
Exchanges like Changelly typically have the best selection of cryptocurrencies and advanced tools. Many of them feature a wealth of educational resources.
You can exchange cryptocurrency through stockbrokers and apps like Robinhood. You can invest in BTC indirectly through stocks, mutual funds, bonds, and other types of assets.
The range of assets is typically smaller than on exchanges, and educational resources are scarce. On the upside, you may be able to access no-commission trading. Brokerages will let you create a diverse portfolio with stocks and other investments.
Some USA/EN mobile apps are compact versions of famous crypto exchanges. Others are independent — for example, Cash App and Venmo.
Note that the selection of crypto assets may be unimpressive. You may or may not be able to buy stocks and other instruments, and trading may involve a commission. Like brokerages, apps do not include advanced crypto tools or educational resources.
How much does it cost to buy Bitcoin?
You can monitor the Bitcoin price via cryptocurrency overview sites like CoinGecko. However, the price you will pay will also depend on the platform. Nearly all crypto facilitators make money from spreads — the difference between the prices for sellers and buyers. This model is known as ‘market maker’.
Some platforms charge buyers 0.5% of the quoted price. Sellers, on the other hand, get 0.5% less. An additional transaction fee may also apply. It depends on the quote price, payment method, and your location. Finally, read the withdrawal conditions carefully, as transferring crypto is not always free.
Where is the safest place to buy Bitcoin?
In terms of security, well-established exchanges are preferable. The first reason is the use of “cold storage”. It means that the bulk of your assets will be kept on servers disconnected from the internet. The rest will stay in a “hot wallet” — i.e., online servers.
An exchange needs a hot storage to maintain liquidity, process withdrawals, and facilitate transfers. However, this does not mean that this small share of assets is exposed. Big platforms have insurance policies protecting them against theft, and they keep their cash balances in banks. The standard FDIC insurance is up to $250,000 per customer.
Unauthorized Account Access
Keep your logins and passwords secure. Please note that the majority of exchanges have no protection against unauthorized access in case your credentials get stolen.
What to look for when buying Bitcoin
The trading costs matter, but they are not a deciding factor. When comparing exchanges, brokerages, and apps, pay attention to the following conditions.
- Fees: The costs can vary dramatically.
- Investment selection: You can buy BTC anywhere, but access to other instruments and coins could be limited.
- Educational resources: The largest exchanges have rich libraries with videos, articles, and other media.
- Bonuses: You may be eligible for an attractive welcome bonus, and the initial spending requirements are often low.
- User-friendliness: Beginners want a simple interface, while experienced traders look for advanced features.
Where to keep your Bitcoin
You can leave your bitcoins on the exchange or move them to a wallet. This digital wallet can be web-based or cold (hardware-based). You can install it on your mobile device or desktop computer.
Security-conscious traders use external wallets. The downside is that if you lose the passwords to your account, you may never see your coins again. Therefore, print the private keys and addresses and keep them in a safe place.