American cryptocurrency exchanges were among the first to fall under legislative regulation. Therefore, all the nuances related to the protection of crypto-investors’ rights on American websites are checked thoroughly, making them more reliable than other trading platforms.
Changelly strives to provide you with comprehensive educational materials regarding the crypto and blockchain industries. We’ve prepared a list of top 7 crypto platforms that are available for U.S. citizens.
Crypto Legislation in the USA
In 2009, Satoshi Nakamoto introduced a new decentralized payment system and a digital currency, Bitcoin. Since then, talks about cryptocurrencies have constantly been circulating in government studies. Being the global financial center, the United States was one of the first countries to decide on the status of cryptocurrencies. Different governmental structures like the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) consider virtual currencies as property, cash, exchange commodities, and securities.
In addition to that, cryptocurrency transactions are simultaneously regulated by federal and state laws, which often do not match. In some states, registration is required for crypto exchanges, in others, it is not. According to federal laws, a token may not be a security, but according to the laws of individual states, it must be considered a security and be registered.
In March 2020, the U.S. congressman, Paul Gosar, introduced the ‘Crypto-currency Act of 2020’ to ‘clarify which Federal agencies regulate digital assets, to require those agencies to notify the public of any Federal licences, certifications, or registrations required to create or trade in such assets, and for other purposes.’
Gosar proposed to divide cryptocurrencies into three categories: crypto-commodity, crypto-currency, and crypto-security. Each of these categories would be regulated accordingly by the CFTC, the Secretary of the Treasury via the Financial Crimes Enforcement Network (FinCEN), and the SEC.
The U.S. President, Donald Trump, has changed tax legislation: now, any exchange of cryptocurrencies, even to another cryptocurrency, must be taxed. This does not prohibit cryptocurrency transactions, but significantly limits the possibility of their widespread implementation.
Top 7 Best Crypto Exchanges for the USA
Federal and local consumer laws govern U.S. token trading and promotion. They prohibit fraud, fake advertising, and fake news. If a company violates these laws it will have to pay a fine 2-3 times the amount of damage, and sometimes the leaders of the company may even face imprisonment.
The rules formulated by each state can reduce the risk of fraud and give investors guarantees for the protection of investments.
Coinbase is probably the most well known American crypto exchange in the world. Being operated since 2012, Coinbase is headquartered in San Francisco. This crypto exchange is included in the top-10 of the largest exchanges in terms of the trading volume.
In general, Coinbase takes good care of its customers and savings safety, since not a single cent has been stolen from the platform over the entire duration of its operation. In addition to that, the crypto exchange insures all users’ funds. In simplicity in its core, Coinbase is the best exchange for new and experienced crypto traders alike.
The exchange has recently announced its plans for a U.S stock market listing, which is a great achievement on the way of crypto mass adoption.
Kraken is one of the most popular crypto trading spots in the USA. The platform has been on the market for almost a decade and continues to provide a high-quality service. With multiple trading features in mind (OTC, margin trading, dark pool, and much more), Kraken strives to enhance the trading experience for both crypto newcomers and professionals. The exchange is client-focused and provides international customer support 24/7.
In terms of security, Kraken stores the bulk of client savings in cold storage and uses PGP encryption to send messages, which protects information from the hands of hackers. There are currently 34 digital assets to purchase or sell at Kraken, but be sure you can find BTC on the list.
Binance launched its U.S. branch in September 2019. Being the leading cryptocurrency exchange in the world, Binance offers a wide range of trading instruments, comprehensive trading terminal, and many other significant features. Binance.US offers unwavering performance with a trusted world-class matching engine, supporting up to 1,400,000 orders per second.
Based in San Francisco, California, operated by BAM Trading Services, Binance.US provides a fast, secure, and reliable platform to buy and sell cryptocurrencies in the United States. Please note that Binance.US does not operate in the following states: Alabama, Alaska, Connecticut, Florida, Georgia, Hawaii, Idaho, Louisiana, New York, North Carolina, Texas, Vermont, and Washington.
The crypto exchange was founded by the Winklevoss brothers in 2014. Gemini is positioned as a platform for institutional investors and private traders. Since the exchange is designed for large players, it meets all the requirements of cybersecurity and capital reserves. Gemini is also regulated by the New York State Department of Financial Services (NYDFS), which adds extra points to the exchange’s credibility.
To gain such a secure trading environment, Gemini collects lots of private information. This fact might discourage crypto novices. The platform also provides a limited number of trading pairs.
The exchange is international and available to customers in a total of 49 U.S. states, Washington D.C., Puerto Rico, Australia, Canada, Hong Kong, Singapore, South Korea, and the United Kingdom. You can buy USD, BTC, ETH, LTC, BCH, ZEC, GUSD in most states,.
Coinmama is a platform that allows you to buy BTC with ease. Since 2013, Coinmama has been keeping its promises of simplicity in cryptocurrency purchase. The cryptocurrency exchange is considered one of the most reliable services in the field of working with digital coins, and its established positive reputation is not in doubt among experienced traders.
The platform operates in 226 countries, and in most U.S. states, it adheres to the country’s laws of registration. To provide maximum transparency and trust, Coinmama doesn’t store users’ funds. There are currently ten cryptocurrencies available for purchase at Coinmama – BTC, ETH, Bitcoin Cash (BCH), Ethereum Classic (ETC), Cardano (ADA), and others.
Wondering how to buy Bitcoin (BTC) in the USA in 2020? LocalBitcoins might help you with it. It is a peer-to-peer (P2P) platform to buy and sell BTC in a simple manner. LocalBitcoins was launched in 2012 in Finland. As of July 2020, the platform is operated in 248 countries, including the United States (although it is not available in the state of New York), and connects people worldwide for decentralized crypto purchases.
LocalBitcoins offers over 60 payment methods and does not charge any fees for BTC acquisition. However, every user who places an advertisement on LocalBitcoins has to pay a 1% fee for every completed trade.
Another global cryptocurrency exchange, CEX.io, offers a variety of trading tools so you can enjoy crypto trading to the fullest. Pursuing the goal of providing a gateway for open financial systems, CEX.io has been operating on the market since 2013. The exchange offers top-notch security features and a mobile application for trading on the go.
CEX.io legally operates in the USA enables multiple payment options, including bank transfers (SWIFT, SEPA, ACH, Faster Payments), bank cards, etc. Native UX and UI help crypto newcomers to get used to the world of FinTech. In case there are some issues, a dedicated 24/7 customer support is always ready to provide fast solutions.
We hope the article was useful for those U.S. citizens looking for an opportunity to buy BTC. We kindly remind you to do your own research before putting your savings into a crypto exchange. Despite advanced security features, most of the exchanges store users’ savings on their servers. Changelly is a non-custodial service that allows you to buy, sell, and exchange over 160 digital assets instantly. Buy BTC and other cryptocurrencies seamlessly with a credit card (Visa, Mastercard), bank transfer, or Apple Pay.
Changelly is a secure instant crypto exchange that has 160+ cryptocurrencies available to be swapped and bought at market-best rates. Operating since 2015, the platform and its mobile application attract over a million visitors monthly, who all enjoy quick and simple exchanges, low transparent fees, and 24/7 live support.