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Austin Jacob • May 18th, 2020

Buy Bitcoin in California

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Buying Bitcoin in California is a pretty easy thing to do.

For the most part, any exchange available in California is available in the rest of the United States.

That being said, Coinbase is likely the best option for California residents.

Want to learn about some other options for purchasing Bitcoin in California?

Keep reading!

Coinbase Home

Based out of San Francisco, California, Coinbase is considered by many to be the most reputable beginner-friendly exchange. Since 2012, they’ve made it simple for any crypto newbie to buy and sell Bitcoin through their gorgeous user interface. Just make an account, link your preferred payment method, and start purchasing.

Please note that if you are based in the United States, most credit card purchases are disabled. For AML reasons, Coinbase, like most exchanges, requires users to submit a picture of their ID and other information for verification purposes.

When it comes to fees, this will depend on the payment method used. Bank purchases charge 1.49% and on credit and debit purchases expect 3.99%. Purchase limits depend on your accounts verification level, with the highest tier of verification allowing $50,000 to be purchased daily.

Visit Coinbase Read Review

 

Coinmama is another beginner-friendly cryptocurrency brokerage that focuses on credit and debit card purchases. They offer instant delivery and sell Bitcoin, Ethereum, Ripple, Litecoin, and more to 46 US States, and most countries.

Coinmama doesn’t provide its users with a wallet on the exchange. Instead, users are asked to provide a wallet address to send the purchased cryptocurrency to. As long as you have your own wallet, this shouldn’t be an issue!

Coinmama charges a fee of around 5% for credit and debit purchases with instant delivery and high purchasing limits of a max of $5,000 daily, and $20,000 monthly. 

Visit Coinmama Read Review

 

Headquartered in London, UK, CEX.io offers security, high liquidity, and cross-platform trading. They support an extremely wide array of countries making them available to most people.

CEX.io appears to have little no fees at first glance. They are able to do this by charging a premium on the Bitcoin price. We estimate this comes in around a 7% premium on average.

When it comes to purchasing limits, it really depends on your accounts verification tier. The first level has daily deposits of $500 and $100 withdrawals while the highest tier has unlimited in each category. Payment methods include cards, bank transfers, and more.

Visit CEX.io Read Review

 

eToro USA is an investing platform that allows its users to purchase CFDs for Bitcoin, cryptocurrency, and even stocks.

One of eToro's most notable feature is their support for copy trading. Also known as social trading, this will allow users to view the top trader's exact moves, letting them replicate as little or as much of their strategies as they'd like.

At press time, the service supports 40 US states and several other US territories. 

eToro has a few different fees that you should be aware of. When trading any crypto to crypto, you'll pay a .1% fee. If fiat is converted to the cryptocurrencies below, you'll also pay the spread mentioned below.

Visit eToro USA Read Review

 

LocalBitcoins offers a highly trustworthy escrow service and peer-to-peer (P2P) exchange. Due to the nature of the exchange, it's available in pretty much every country.

On the exchange, users to trade among themselves. Due to the nature of the transactions on the exchange, there is a resolution and feedback system.

It also allows users to post a quick buy or quick sell ad on the exchange platform. It is one of the best cryptocurrency exchanges for peer to peer trading.

LocalBitcoins is one of the better exchanges for users concerned with their privacy. Bitcoin can be purchased in person without linking an identity to an exchange.

Visit LocalBitcoins Read Review

 

Bitcoin Exchanges in California

California is host to a very large number of Bitcoin ATMs. As of May 2020, there are 882 Bitcoin ATMs in California.

The Bay Area is known as a national hub for high tech business, but the bulk of Bitcoin ATMs are located in Los Angeles.

California residents can also find physical exchange businesses through major metropolitan areas in the state.

Bitcoin Regulations in California

Assembly Bill 2658 was introduced in 2020 to regulate cryptocurrency business across civil, government, corporate, and insurance sectors.

This law makes the electronic blockchain equivalent to paper transaction records in the eyes of California’s state laws.

In short, cryptocurrency businesses can use the public ledger of the blockchain to meet legal record keeping requirements.

This bill makes it easier for entrepreneurs to open a cryptocurrency business in California.

Bitcoin Mining in California

The average residential cost of electricity in California is $0.167/kWh, making it the seventh highest in the nation.

This makes cryptocurrency mining in California less likely to be profitable, but the Mojave desert presents a unique opportunity for mining operations.
Plouton is seeking to exploit the sunny climate of the Mojave for what will be the largest solar mining farm in North America.

While Plouton is a large commercial enterprise, using residential solar power systems for cryptocurrency mining can be far more profitable than selling power back to the grid.

California and other states throughout the Southwest and Southeast have sunny climates that are well suited for solar-powered cryptocurrency mining operations.

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