The Ultimate Guide to Buying Bitcoins USA | Coinlist.me

Buy Bitcoin in the USA

So why should you invest in Bitcoins your hard-earned money?

Well, the inflation in value alone is more than enough reason. As a quick example, if you had purchased an amount of up to $1,000 in Bitcoins in 2012, that amount now would be worth well over $1,200,000. That’s an increase of 100,000% in product value in a very short space of time.

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The best way to make the most money from your investment is via one of the regulated broker platforms we’ve highlighted in our table below. Because they’re regulated, there are safeguards in place to protect your money, and they’re completely accountable for what happens to your cash.

What is Bitcoin?

The first thing you need to know before you invest in Bitcoin in the USA is what is actually is. By definition, it’s a digital currency that has a set value assigned to it at any given time.

It was formulated originally in 2008 by an unknown programmer as a method of payment that would take away power from institutions like banks and the government to provide a safe, fast and cheap method of payment.

The US Bitcoin Market

If you’re still unsure about investing, here’s a few interesting facts about the current US cryptocurrency market that are worth knowing:

A US survey found that only 14% of people have ever owned Bitcoins, while 40% of Americans said they were open to the idea, which shows an overwhelmingly-positive interest in the use of the online currency. There was also a notable gap in age trends; as US citizens get older, they are less likely to own or use Bitcoins, while younger generations were open to its possibilities.

Bitcoin USA

What this means is that there’s currently huge, long-overdue growth in the market as more young people are interested in investing in BTC. So, a small purchase now before the market explodes in popularity could potentially pay off in just a few short years for Bitcoin sellers in the USA as more people drive an increase in demand for this popular financial product.

Although currently there’s not many options for Bitcoin CFD trading in the US, there’s an ongoing push by US bank regulators to legitimise Bitcoins by giving it and firms that trade in it a national licence. Avatrade and Admiral Markets for example have started to introduce Bitcoin Cash CFD trading.

If this performs well perhaps in the future we could see Bitcoins being used to pay for everything, from your groceries to car repairs, and even banks that buy and trade solely in online currency.

However outside of those two options, for now most Bitcoin USA traders will have to stick with setting up a crypto currency wallet. For those that aren’t familiar, crypto currency wallets are software programs that store a number of private and public keys that interact with blockchains to allow users to send or receive various types of digital currency across a secure network.

CFDs USA

However outside of those two options, for now most Bitcoin USA traders will have to stick with setting up a crypto currency wallet. For those that aren’t familiar, crypto currency wallets are software programs that store a number of private and public keys that interact with blockchains to allow users to send or receive various types of digital currency across a secure network.

For example, if someone sends a digital currency it goes to a set address, usually another wallet, once it arrives in order for someone to unlock the funds the private key that’s stored in their wallet must match the public address that the currency has been assigned to. That way you can’t incorrectly send Bitcoins to the wrong account accidently. If the two keys match then the exchange is complete and the balances of both parties is adjusted accordingly. Below is a chart of popular bitcoin exchange, Blockchain, and its wallet count.

blockchain wallet count

Blockchain.com

It’s a simple and secure system that can guarantee your money is kept safe during the transaction. And when large amounts of up to thousands of dollars are being transferred regularly, it’s ease of use and security become obvious.

The future of Bitcoin Trading in the US

As we’ve highlighted it is difficult to trade bitcoin as a CFD however the general acceptance of bitcoin as an investment vehicle is growing among mainstream investors.

Major US exchanges were given the go ahead by the regulator to trade financial investments directly associated to the value of the bitcoin. This essentially has given large commercial investors the chance to trade bitcoin futures contracts.

bitcoin futures cme

As of December, the 18th, the first bitcoin future will begin trading.

Having some of America’s biggest exchanges allowing bitcoin investments to be traded on their platforms must only be a good thing for long term bitcoin investors. This signals continued acceptance and takes a considerably larger step towards being a genuine store of value.

The birth of a futures contract also allows investors to bet against bitcoin. This means that this ‘bubble’ we are experiencing may come to an end because it becomes easier to exert downward pressure on the market.

How to Buy Bitcoin in the USA

It’s incredibly simple to buy Bitcoins, but for those that are still unsure on how to get started, we’ve provided a helpful step-by-step guide to get you through the process, so you can start trading and selling as soon as possible.

Step 1) Choose Your Wallet

Before you start buying Bitcoins you need to choose what kind of wallet you want to store it in.

There are many different kinds of wallets to choose but for this guide we’re going to stick to the two main types, the software and the web wallets. The software wallet is installed on your PC or mobile and is perfect for those who want to use their Bitcoins on-the-go.

The other option is a web wallet which is hosted by a third party website commonly referred to as an ‘exchange’. There are plenty of exchanges to choose from like Coinbase, LocalBitcoins or GateHub and each one comes with their own features and benefits that will allow you to make the most of your money.

Step 2) Create Your Account

This is the easiest part of the process all you need is your name, email address and a password of your choice. You’ll then be sent an email that will prompt you to provide a cellphone number to verify your account.

Coinbase Sign Up

Step 3) Add Payment Options

Once your account has been validated you will then need to link your payment type to your Bitcoin Wallet. You can use a range of payment options as most exchanges accept everything from credit/debit cards to PayPal and Neteller. The example below is Coinbase, who offer bank transfer, credit & debit card and for US citizens only, Paypal.

Once you have registered your payment options you can then start to buy Bitcoin instantly in the USA. It’s really that simple for Bitcoin USA users to get started with this crypto currency.

Step 4) Identity Validation

One thing worth noting is that most Bitcoin Wallets normally have a limit in place to the amount you can spend; this is usually to prevent fraudulent activity on accounts.

For most it’s capped at $2,000. But to go over this amount you will need to validate your identity before you can start going for a larger Bitcoin price.

But, this step is fairly simple as all that’s required is you send proof of identification to the website. This can be anything from a passport to a bank statement. Most US Bitcoin wallets can take anywhere from a few days to a couple of weeks to validate your account, so it helps to check in advance which exchange works best for you before you sign up.

Below is the Coinbase example.

coinbase verification

Bitcoin Facts worth Knowing

Bitcoin USA Commissions

Once you’re up and running in the Bitcoin USA market, there are a few things you might want to learn first to make your digital currency work for you as best it can.

First, the most important thing is that, when you invest in Bitcoin in the USA, most websites will charge you a commission for the exchange and the amount you pay will vary from each site.

Coinbase, for example, will usually charge 1.49% on both the purchase and sale of Bitcoins across their site. However, LocalBitcoins USA users will find that there’s no commission to pay to use their platform, although they have introduced a deposit fee of 0.00066 BTC per transaction to cover the rising network fees they need to pay.

Bitcoin USA: Verification

Other than the Bitcoin price USA users will also find that the verification process for each website can also drastically differ, with some sites taking a lot longer than others.

Coinbase for example, can take up to several weeks to verify your account. By comparison, eToro only takes a few days to get you up and running, making it the fastest way to buy this crypto currency, although unfortunately it’s not available to Bitcoin USA users at the moment.

When you’re starting with cryptocurrency, we recommend being aware that if you plan to buy Bitcoin in the USA, you will need to check which website will give you the best return on your investment.

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Coinlist’s Recommendation

As you can see, buying Bitcoin is incredibly simple and easy. There are numerous ways to get started, and each one will guide you through the process, making it as painless as possible. Plus, you can do plenty with your digital dollars. There are also the most bitcoin ATMs in the USA than any other country.

usd bitcoin atm

If you’re starting out, our recommendation for the best way to buy Bitcoin in the USA is to go through one of the many strictly-controlled and regulated brokers we’ve mentioned as they can guarantee your cash is kept safe. You can use a cryptocurrency exchange, but these might be more difficult to comprehend for first-time users, and there’s not always someone to speak to if you run into any problems.

If you feel like you understand the market, we recommend buying Bitcoins directly from an exchange, but for beginners, it’s best to stick to a safer option that requires less financial risk. After all, in the long run, it’s all about making the most of your investment.

Buy Bitcoin in the USA
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