This work has provided useful insights for all crypto traders in the United States of America seeking to know where to buy their cryptos and how to go about their crypto transactions without obstructions.
We have further exposed the status of Cryptocurrency trading in the US and how citizens and other residents can go about their trading without breaking the law.
With the massive growth in the number of Crypto users in the United States today, many investors now pause to ask if Cryptocurrency has been legalized in the US. Others who wouldn’t want to be left out in the rapid embrace of this digital currency, which many foresee as the future of exchange, are all the more eager to learn how to join the moving wagon.
For the rest, especially the law-abiding citizens and residents of the US, their major concern has been to find out if crypto trading has been legalized in the US.
Well, this work has answered all these questions above and further provided useful guides on how one can go about his crypto trading in the US without any infringement. You will also find in this work the best crypto exchanges for buying and selling crypto in the US today.
What is Cryptocurrency?
Cryptocurrencies are virtual assets used as a digital means of payment. It is a decentralized means of exchange built on blockchain. This type of currency is secured by the cryptography generated via mining. Often, the founders of these digital assets are unknown which makes it difficult to control their users or regulate them.
Can I buy crypto in the USA?
There is currently no law prohibiting one from buying and selling crypto in the United States. One can freely buy and sell any desired crypto in the US as long as he/she abides by the existing regulations guiding cryptocurrency trading which involves paying taxes on sold digital assets.
We have discussed this in detail in the succeeding paragraph on Cryptocurrency taxations in the USA.
What are the easiest means of buying crypto in the USA?
The easiest means of buying Cryptocurrency in the USA is through the registered crypto exchanges operating in the country. Here one needs to register with a preferred exchange functioning in the country, and next proceed to buy crypto from their platforms using fiat currency.
The most popular methods of buying crypto through an exchange using fiat currency are Wire transfers, Credit cards, Debit cards, Skrill, Neteller, and PayPal.
A simple guide on how to buy Crypto in USA
There are five major steps involved in buying crypto from any exchange in the United States. We have discussed these relevant procedures below:
- Choose a registered Crypto exchange: The first step anyone seeking to buy cryptocurrency in the United States must follow; is to select the exchange to buy the desired crypto. We have provided in a different subheading in this work the list of the ten best crypto exchanges operating in the US to make it easy for the trader to make his decisions.
- Register an account with the exchange: The second step after selecting the exchange to buy crypto from; is to register an account with the chosen exchange. Here the trader needs to fill in his personal information on the options provided by the exchange such as his name, phone number, address, email, age, country, etc.
- Complete your identity verification process: The next step after filling in one’s details is to upload one’s identity documents such as a Passport and Proof of address. Often this is used to safeguard a user’s account from hackers and violations from fraudsters.
- Fund your account: The immediate task after one’s account has been verified is funding. Here, the trader is to choose his most preferred method of funding from the multiple options provided by the exchange. We have listed these methods earlier in this work. Often the funding is completed within a few hours after deposits. It is a bad sign for any exchange to delay funding after deposits for more than two days.
- Place your order for the desired crypto: The final step after funding is to place one’s buy order for the desired crypto on the exchange he had registered and funded his account. Here one simply needs to proceed to the spot position and place a buy order by clicking on the desired cryptocurrency.
What are the best Crypto exchanges for buying and selling crypto in the USA?
To assist the trader in making decisions on where to buy and sell cryptos in the United States, we have provided below the list of the ten most popular crypto exchanges to buy crypto in USA. They are:
Is Crypto trading legal in the USA?
Well, the truth is that Cryptocurrency is not yet considered a legal tender in the United States. However, this has never deterred the citizens from participating in crypto trading. The government on its part has permitted a favorable atmosphere that has given rise to the massive embrace of Cryptocurrency in the US.
While crypto is yet to be legalized in the US, the government has not in any way prohibited the citizens from dealing with various crypto exchanges. A large number of crypto exchanges have obtained licenses to operate in the US today. This means it is legal to deal with such exchanges.
The US Financial Crimes Enforcement Network (FinCEN) today recognizes cryptocurrency exchanges as money transmitters and considers crypto as other stores of values that substitute for currency.
What are the most traded Crypto in the USA?
There are ten most traded cryptocurrencies in the US today. They include:
- BinanceCoin (BNB)
- Shiba Inu
- Ripple (XRP)
- Cardan (ADA)
Is Crypto trading taxable in US?
Obviously crypto traders are expected to pay taxes whenever they sell their crypto assets with any gain in the US. Here, traders are required to pay taxes on each gain made from trading Crypto after subtracting the initial capital invested.
For instance, if you bought Crypto worth $6000 and sold it when the value rose to $10,000, you will be required to pay tax for the gain of $4000 realized. However, there is no tax levied for holding crypto without selling or when it is sold at a loss.
The major reason for placing taxes on crypto is because the US Internal Revenue Service (IRS) recognizes it as a digital store of value. This body (IRS) defined Cryptocurrency as “a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value”.
Based on this premise they considered crypto trading as taxable and further gave the procedures for taxations on all crypto transactions.
Above all, Cryptocurrency trading in the US falls under the regulatory scope of the Bank Secrecy Act (BSA). This requires all cryptocurrency exchanges to register with FinCEN and submit reports to the authorities. Of course, they are to pay taxes to the government too.
Is Crypto trading a safe investment for US citizens?
The crypto industry is largely unregulated and bears high risk due to its volatility. Hence, crypto traders are always advised to invest only the amount they could afford to lose while buying crypto in the United States.
Similarly, the US Federal Reserve Chairman – Jerome Powell in one of his speeches had warned all crypto traders to be cautious of the risks involved in buying and selling Cryptocurrencies.