How To Buy Cryptocurrency
in the US
Making Crypto Simple
If you are looking for a super quick breakdown on how to buy Cryptocurrency in the US you can find our step-by-step below. We highly recommend CEX since it’s very easy to use, they have the lowest fees in the US and their support team is truly excellent. There are a number of Cryptocurrency exchanges in the US, you can view our full in-depth comparison here.
How To Buy Cryptocurrency in the United States
- Register an account on Coinbase
- Verify your account
- Choose a payment method
- Deposit USD
- Click “Trade”
- Search for the Cryptocurrency you are looking to buy and click “Buy Coin”
- Enter the amount of USD you want to spend or how much of the particular Cryptocurrency
you want to buy
- Click “Buy”
- If you have any trouble with the above steps, you can reach out to their support team 🙂
If you are looking for more detailed guides, you can find them below.
Where To Buy Cryptocurrency
in the US
We’ve reviewed over 100 exchanges across the globe and have been doing this for many years. We are confident that Coinbase is the best exchange in the world for people in the US to use.
Find out more about Cryptocurrency Exchanges in the US
It doesn’t matter if you haven’t done any trading before or you’re just looking for a new place to trade, investing in and trading cryptocurrency has never been easier!
Our team has one message for you: it’s never too late to join the crypto waters!
Today, our guide focuses on the US crypto market, with details on where to buy and store digital coins. We’ll talk about different types of coins, exchanges, and wallets, including some extra tips to step up your game.
Let’s get started!
Cryptocurrency in the US
Did you know that Bitcoin, the world’s first cryptocurrency, was created almost 12 years ago? However, it hasn’t always been as popular as it happens to be today.
Cryptocurrencies were slow to gain in traction, mostly because of the newness and uncertainty of the system and its underlying technology. Today, about eight in ten Americans are familiar with at least one cryptocurrency, according to a recent YouGov research.
As expected, Bitcoin is the most well-known coin, and cryptocurrency, in general, is primarily bought by millennials. They’re the true believers in the technology, sincerely hoping that cryptos will become the future of money.
Even though it’s been more than ten years since cryptocurrencies appeared on the market, governments across the globe are still having a hard time regulating their use and trade.
In the US, both federal and state governments have had numerous discussions both on the nature of cryptocurrencies (should they be considered a commodity or a property) and their regulation. Unfortunately, there hasn’t been a unanimous decision yet, and different states treat them differently.
The US Congress has introduced a new bill called the “Crypto-Currency Act of 2020”. The bill has put regulatory bodies in charge of cryptocurrencies which makes it easier for crypto exchanges and other platforms to register their businesses and comply with all financial regulations.
Despite existing discrepancies, the majority of the States are aware of the potential of the crypto industry and are making gradual efforts to create a complete regulatory framework and invest more in crypto projects.
What Kind of Cryptocurrencies Are There?
There’s no better indicator the crypto industry is thriving than the fact that there are more than 5,000 different coins in existence, according to the leading crypto site, CoinMarketCap.
When Bitcoin was first launched, its purpose was to be used as digital money in the new peer to peer electronic payment system. It was designed as a store of value with cryptographic authorization, and apart from intangibility and decentralization, it has more or less the same features as regular fiat currencies.
Bitcoin represents the first generation of cryptocurrencies and works best as a long-term investment rather than a currency used in everyday purchases.
The second generation of cryptocurrencies, led by Ethereum (ETH) as the second most popular coin, has succeeded in finding more use cases for digital coins. Ethereum, for example, is used in building and securing programmable smart contracts and other blockchain-based applications.
Another popular crypto, Litecoin (LTC), was designed for making smaller transactions specifically, acquiring the nickname “Bitcoin’s silver”. Ripple (XRP) is used for securing the Ripple network and helping users conduct faster and cheaper cross-border payments. From a store of value, cryptocurrencies have become utility tokens as well.
However, the majority of these coins experience problems with low scalability because, at the time of their launch, cryptocurrencies weren’t as popular as they’re becoming today. The third generation of cryptocurrencies addresses these issues with various solutions like scaling and sharding to achieve greater transaction throughput for their blockchains.
How to Invest in Crypto in the US
Some traders get discouraged from getting involved in crypto because they think the crypto market is more demanding than others. To be honest, although there’s a slight learning curve to it, crypto trading is just as easy as any other type of trading once you get to know the basics.
Guides like this one help you get the bigger picture and plan your investment strategy. The Internet is full of resources and video material, and some platforms even offer demo accounts with fake cash that might be a less intimidating option for beginners.
Once you feel comfortable enough and have a couple of target cryptocurrencies in mind, you should spend some time finding a trustworthy exchange.
The support section on their official website should contain general information such as supported cryptocurrencies and payment methods, deposit and withdrawal limits, identity verification requirements, security measures, etc. If you can’t find all the information you need, there are numerous online reviews to help you with that.
If you ask anyone with at least some experience in crypto trading, they would recommend joining a fiat to crypto exchange if you’re a beginner. These types of exchanges support fiat deposits for novices who own zero cryptocurrencies.
Moreover, based on your trading preferences and appetite for risk, you can choose between a trading platform, a broker, or a peer to peer exchange.
Trading platforms link buyers to sellers who exchange currencies at the current market rate and charge small transaction fees for their middleman role. Brokers, on the other hand, are reliable centralized platforms who buy high-liquidity cryptocurrencies and sell them to customers with an added margin.
The third type of exchanges, the peer to peer decentralized ones, list various buying and selling offers and let traders agree on the terms among themselves.
Should You Invest in Cryptocurrency?
Are you still having second thoughts about investing in cryptocurrency? To help you decide, we’ll take a look at both the perks and downsides of the industry.
Research published by Statista has found that in 2019 alone, the cumulative market capitalization of cryptocurrency exceeded $230 billion! This just goes to show how profitable the industry is and that we should expect this trend to grow in the following years.
The main reason for this is that blockchain technology has extended its applications in a range of spheres like for instance healthcare for keeping medical records, or supply chains to keep track of the goods’ location and condition. Both large-scale and small-scale businesses have digitalized their partnerships using smart contracts, as we enter the era of “smart economy”.
Investing in cryptocurrency doesn’t always have to be taken seriously. There are many retail traders who trade cryptos as a hobby because they like the thrill of speculating on their prices and predicting the next trend. If you think this hobby might be for you, be careful not to risk more money than you’re ready to lose.
After all, cryptocurrencies are notorious for frequent price swings and changes. Only experienced traders are able to profit from both bearish and bullish markets.
Moreover, the crypto market isn’t spared from scams and tricks such as impostor websites, fake apps, scam emails announcing fake ICOs and promotions, or tricks like the pump and dump scheme. According to a report by the Better Business Bureau (BBB), in 2019, cryptocurrency scams rose to the second riskiest scam in the States.
That’s why it’s important to always check your sources and verify the legitimacy of any platform you’re using.
How to Store Cryptocurrencies
Finally, you mustn’t neglect the importance of storing your cryptocurrencies somewhere safe. Similar to crypto exchanges, there are various types of cryptocurrency wallets whose job is to protect the private key that lets you access the balance on your cryptocurrency address or public key.
In order to make up your mind on what kind of wallet you need, you have to decide whether you want to store your coins temporarily or long-term. If you’re planning to withdraw your funds soon after purchasing them, you can register for one of the software or online wallets.
A software wallet is one you can download and install on your personal computer. It doesn’t have to be connected to the Internet except when you make a transaction. Your private key is safe as long as you protect your computer from malware.
Most of the online cloud-based wallets have both a desktop and a mobile version, making them convenient for trading on the go. Apart from third-party providers, these wallets are typically available on cryptocurrency exchanges. The only drawback is that you have to rely on the platform’s security measures and hope it doesn’t get hacked.
If you plan to hold onto a certain cryptocurrency as a long-term investment, we recommend purchasing a hardware wallet instead. These devices look like USB sticks which makes them easily portable and store your private key offline in cold storage.