Buying Bitcoin and Altcoins in the USA
The most popular places to buy bitcoin isn’t always the best. Coinbase has proved this over and over by upsetting customers while whoring itself to wall street. As long as bitcoin and altcoin buyers store their coins in a hardware wallet, the actual exchange people purchase crypto currency from becomes almost arbitrary to most people.
Credit cards with Bank of America, Citigroup, JPMorgan, Capital One and Discover Financial Services have all blocked transactions for purchasing crypto currencies. Wiring funds from your bank account or purchasing a bank draft are the only options regulators policing the “legal” crypto currency exchanges appear to allow currently. How long that lasts is anybodies guess.
Anonymous Exchanges to Buy Bitcoin from the USA
Trusting an online crypto exchange (or US bank), to secure peoples personal information always appears to end badly for customers. There were little to no consequences for banks or employee’s at TD Bank, Citigroup or JPMorgan after customers personal information was breached. The IRS and Pentagon have also been unable to secure private data, leading many to prefer not giving any data to third parties or relying on their security methods.
Regardless of which government claims that privacy is wrong, it’s actually a right people should value.
Much like Napster brought torrenting music and movies into peoples lives, decentralized exchanges like bisq allow people to trade currency, bitcoins and altcoins anonymously, peer to peer on their platform. Payment methods accepted include Chase QuickPay, US Postal Money Order, Western Union, Interac E-transfer and bank transfers. Foreign exchange kiosks at airports should start closing once people become more aware how much lower fee’s can be through applications like bisq.
License for Virtual Currencies (BitLicense) Scandal
BitLicense is the regulatory framework all crypto currency exchanges that want to do business in New York are required to follow.
The former New York State financial superintendent who created the bitcoin laws in New York, Benjamin M Lawsky, currently offers his law firms services to bitcoin and blockchain businesses wanting to do business in New York. Being able to create the regulation and then sell services to companies who have to follow it, might make people suggest Benjamin Lawsky is a hypocrite. We would never suggest that because anyone involved with Ripple now has to be legit….right?
The aggressive stance Lawsky took when creating the BitLicense forced many exchanges to pull out of New York and America to offer their services. The current New York regulators have proposed bills to replace the BitLicense requirements as there are currently less than 10 BitLicense holders.
Many companies are also pulling out of Washington State and ShapeShift (a good exchange) said it best:
Under this interpretation of the law, we would now be required to ask permission from Washington before we buy and sell our own property for our own account. Moreover, we would be required to spend hundreds of thousands of dollars to maintain a license, only to extract our users’ personal information and store that information for hackers to steal.
This is why our belief that decentralized anonymous exchanges like bisq will only become more popular in more countries over time. We see no problem with using an anonymous exchange like ShapeShift for Americans in the other 49 states. Over time companies profiting from fee’s to sell currencies will decline if Peer to Peer Exchanges and anonymity are available.
Kraken, Poloniex, Bitfinex, LocalBitcoins, Genesis Mining, BitQuick and others removed their services from New York and other states after the regulators made doing business too expensive and bureaucratic in the state.
Popular US Crypto Exchanges
For those looking for an online exchange to wire funds or use a credit card to deposit, US residents have very few options, especially on credit cards. Since the major banks started blocking credit card transactions for crypto currency, gift card visas, amazon gift cards on peer to peer exchanges are the most common way around the credit card changes.
Our favorite new anonymous exchange, peer to peer and decentralized, the way Satoshi always intended. Deposit options using the bisq exchange range from gift cards to major bank transfers worldwide. Many American’s are already using the exchange for bitcoin and ethereum selling anonymously in the US, this is one of a few exchanges that we have high hopes seeing it grow.
Binance is everyone’s favorite exchange this year it seems. Partially due to the easy account creation allowing new sign ups to trade bitcoin for altcoins, or altcoins for bitcoin, whatever you prefer. Depositing under 2BTC will allow traders to avoid the pesky KYC process and start trading immediately. The exchange does not trade in fiat so users looking to purchase crypto currency for the first time would need a different exchange.
For those buying less than $150 of crypto currency, CoinMama has been selling crypto currency to users with no identification requirements below that amount. Visa gift cards are commonly used at this exchange for anonymous purchases.
For anonymous purchases of altcoins, you need a crypto currency to trade with at Changelly and transactions will be done within a few minutes most days. Perfect for grabbing a hot altcoin that you want to buy for bitcoin from time to time.
Check the Bitcoin ATM map and purchase your first crypto next to a Slurpee machine in style. Always best to double check what the machine type is at the location, the fee’s taken and avoid the ATM’s that ask for identification uploads.
Exchanges to (probably) Avoid
Bitfinex has stopped serving US customers as of November 9, 2017, and still has many haters after they were hacked in 2016 for $72 million worth of bitcoin. All customers affected were given a token (BFX), representing their stolen bitcoin shortly after the hack. Bitfinex purchased the BFX tokens back from all of their customers in April 2017, essentially paying back all customers affected by the security breach. This is one of the many reasons we suggest everyone own a hardware wallet to store their crypto currency and not keep it on an exchange.
This may not be a scam exchange like Mt. Gox but customers can definitely find a better exchange than Bitfinex currently.
OKEx- KYC (know your customer) process too strict
Coinbase – KYC process too strict
Kraken – KYC process too strict
Poloniex – KYC process too strict
CEX.io – KYC process too strict
LocalBitcoins- KYC process too strict
BitStamp – KYC process too strict
LibertyX – scan your ID to buy bitcoin at stores