You’re from New York, and you want to buy some Bitcoin.
But, you’re not really sure where to start.
That’s where we come in.
For most readers, Coinbase will be the best option in terms of fees, ease of use, and purchasing limits.
Based out of San Francisco, California, Coinbase (review) 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.
Technically, Coinbase is a brokerage, meaning that instead of buying Bitcoin and other cryptocurrencies from other users, you are buying directly from Coinbase.
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. Debit card purchases are still supported and one of the most popular methods for Coinbase users in the United States.
For AML reasons, Coinbase (and nearly all other exchanges) require users to submit a picture of their ID and other information for verification purposes. This verification typically occurs quickly and almost always allows for same-day purchases.
All in all, Coinbase provides a fantastic starting point for beginners by having an easy to navigate interface, and quick sign up process.
As far as fees go, that’ll depend on the payment method used. Coinbase charges 1.49% on bank purchases and 3.99% on credit and debit purchases. Due to the lower fees involved, it’s recommended to use your bank account when making large purchases. The exchange features no deposit fees for moving currency onto the exchange. The only time you’ll ever pay a fee is when purchasing or selling cryptocurrency on the platform.
Purchase limits depend on your accounts verification level, with the highest tier of verification allowing $50,000 to be purchased daily.
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 40 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!
Recently, Coinmama has made it possible to sell Bitcoin back to your bank account. This feature is only available in European countries, but it’s likely it will be available to more as time goes on.
Coinmama charges a fee of around 5% for credit and debit purchases. Although its fees are higher than Coinbase, they have instant delivery and higher purchasing limits with a max of $5,000 daily, and $20,000 monthly. For minimum purchases, Coinmama has a minimum of $60 USD.
Kraken is another popular exchange based in the United States that’s been around since 2011.
In terms of trading fees, Kraken’s are very fair and scale based on your 30-day trading volume. If you’re a maker, they range from .16% all the way to 0%. Taker fees on Kraken range from .26%-.1%.
For funding options, Kraken offers deposits in USD (FedWire), EUR (SEPA), and CAD(Wire & EFT). Like most other options, if you own cryptocurrency already, they allow for several cryptocurrency assets to be deposited on the exchange.
A unique feature of Kraken is that it allows for margin trading with up to 5x leverage. When margin trading on Kraken, eligible accounts can borrow up to $500,000 to go long or short on a cryptocurrency.
Last but certainly not least, the exchange features a powerful and intuitive API for those wanting to take their investing to the next level.
Headquartered in London, UK, CEX.io offers security, high liquidity, and cross-platform trading. It has somewhat high fees, margin trading, almost 100% uptime, and more.
The exchange was affected by a small hack long back but has had no issues for a while. It has over 2.8 million accounts and a wide variety of cryptocurrencies for sale.
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.
When a user buys cryptocurrency on their exchange, they are paying more for the actual currency compared to the other exchanges prices. This doesn’t matter too much as it is basically the same thing as a service fee.
LocalBitcoins offers a highly trustworthy escrow service and peer-to-peer (P2P) exchange.
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.
Another way to buy Bitcoin in New York is to do it via Bitcoin ATMs. This is a very easy method to purchase Bitcoins because ATMs do not ask for sensitive information or private data. Instead, you need to pay higher fees than doing it via a crypto exchange.
But, to find a Bitcoin ATM that works at all times and has low fees is quite a problem. Additionally, the ATM may be located in central areas, leaving those in smaller cities without the chance of buying and purchasing virtual currencies.
New York receives a lot of attention in txhe cryptocurrency world due to the well known BitLicense. In July 2014, the state released the license making it slightly more difficult for companies to operate in the virtual currency space. While there’s no exact number out, it appears to cost around ~$100,000 for companies to get a hold of the precious license. Let alone all of the different paper and legal work that goes into it.
While the legislation makes it much more difficult for new businesses to operate with Bitcoin in New York, all of the options here are certainly able to.
Contrary to popular belief, there’s also a fair amount of Bitcoin mining that goes on within New York. Greenridge Generation, a powerplant in Upstate NY, recently sold 30% of its mining power to institutional buyers.
Now that you know where to purchase Bitcoin in New York, we’re excited for you to begin your cryptocurrency journey. If you have comments about purchasing Bitcoin in New York let us know in the comments!