In this guide, we provide an answer to what crypto trading platform accepts U.S. customers. We also provide brief regulation analysis of the U.S.A in terms of cryptocurrency accounting status, taxes, and responsible bodies. In terms of companies that provide the trading marketplace, the article offers a brief take on Coinbase, Robinhood, CEX.IO, and Kraken.
U.S. Crypto Regulation
Currently, authorities in the U.S. see cryptos as online assets, rather than legal tender. The main reason for the government’s commodity standpoint towards digital coins revolves around the lack of control. Thus, income and capital gains taxes apply for U.S. traders, no matter if trade uses fiats or not. The main body that overlooks the tax implementation within the crypto sector is the Internal Revenue Service (IRS). For more information, we prepared a separate article to help you choose a platform for crypto tax reporting.
As for the responsible bodies, SEC plays important role in securities and instruments. In September 2018, the agency declined rights for 9 bitcoin ETFs, signifying tighter control of the crypto market. All platforms need to acquire financial licenses from all states. The Commodity Futures Trading Commission (CFTC) and Financial Crimes Enforcement Network overlook the crypto industry in terms of business conduction.
Crypto Trading Platform that Accepts U.S. Customers
In this section, we go over platforms that allow U.S. clients to trade cryptocurrencies. Read on about Coinbase Pro, Robinhood, and CEX.IO.
Based in San Francisco, Coinbase is a U.S. crypto trading platform specialized solely on digital coins. Launched in 2018, Coinbase Pro platform is an extension of a previous trading platform called GDAX. In it, the company offers limit and market trading functions for 32 countries, U.S. included. So far, only Hawaii traders cannot use the platform’s services.
It is possible to fund account using bank transfers and credit cards. There is no margin trading at the Pro marketplace, while accepted coins are BTC, BCH, ETH, ETC, and LTC. Read our Coinbase review.
Robinhood is yet another U.S. business that works with cryptos. Located in California, the startup raised to hold almost $1 billion worth of trade valuations, including cryptocurrencies. It is possible to transfer funds using ACH bank transaction, credit cards, and PayPal. Verification, much like with Coinbase, is a must. The crypto trading platform acquired rights for the following states:
– New Mexico
What makes this platform unique is the fact that no fees are charged for coin trading. Business hopes to attract large liquidity and use funds for its own investments. Available functions are limit and market, in addition to Good ‘Til Cancelled, Fill or Kill and others. Accepted cryptocurrencies are BTC, ETH, BCH, LTC, and DOGE. Read our Robinhood review.
The major advantage that CEX.IO has over Robinhood and Coinbase is its margin trading. It is possible to trade using leverage rates of 2x and 3x for BTC/USD, BTC/EUR, ETH/BTC, and ETH/USD pairs. You also have negative balance protection (NBP) if you happen to live in one of the 24 States.
You can fund an account through bank transfers or bank account while verification, due to tight regulation, comes as a non-escapable reality. The 26 States that crypto trading platform does not support are:
– New Hampshire
– New Jersey
– North Carolina
– North Dakota
– U.S. Virgin Islands
Read our CEX.io review. Other platforms that accept American customers that you should check out
In this guide, we went over what crypto trading platform accepts U.S. customers. The government employs strict AML and KYC policies. Thus, most platforms insist on complete verification of the identity from its clients. Additionally, licenses restrict the States that these trading platforms work with. However, these also serve as insurance against hacking attempts, scams and other cybercriminal activities.