A step by step guide to buying Bitcoin in the USA
Nearly a quarter of all global Bitcoin trading takes place in the United States. With this in mind, you should already have an idea of how widely cryptocurrency, and particularly Bitcoin, is used in the US.
There are currently no federal laws governing cryptocurrencies, and each state must decide how to handle digital currency on its own, though many have yet to do so. Cryptos are categorized in the United States as digital currency by the Securities and Exchange Commission (SEC), commodities by the Commodity Futures Trading Commission (CFTC), and property by the Internal Revenue Service (IRS).
Satoshi Nakamoto developed Bitcoin as the first decentralized digital asset in an attempt to eliminate third-party influence from institutions and banks that are present with traditional fiat currencies. The Bitcoin software was launched in 2009, in the aftermath of the global financial crisis, and is widely regarded as revolutionary. Blockchain technology is sweeping the tech and finance industries by storm.
The development of Bitcoin ever since has enabled users from across the world, and especially in the United States, to easily acquire and trade Bitcoin from the comfort of their own homes. This guide will outline the four easy steps of how to buy Bitcoin and why it is a worthwhile investment for Americans interested in buying BTC.
What Are The Steps to Buy Bitcoin in the USA?
Buying crypto in the US has never been easier. Here are four easy steps to buy Bitcoin online:
1. Find an online crypto brokerage that lists Bitcoin
There are so many exchange platforms and brokerages available online to choose from, where you will set up an account and deposit your money to buy BTC. It’s important to find an exchange that is trustworthy and reliable. eToro is one of the world’s best online crypto brokerages with a user-friendly interface and staff available 24/7 for new investors looking to buy BTC. To sign up for eToro, visit their homepage and follow the next steps.
2. Register and verify your account
To sign up on eToro, simply go to their homepage and click on “Join Now.” Once you get to this page, you’ll need to provide your basic information such as your full name and email. Here you will also pick your username and password. Once you pass this step, you’ll be asked, as part of their security protocol, to provide a POA (proof of address) and POI (proof of identity).
3. Choose a payment method to deposit your funds
Once you are registered and verified on eToro, the next step is to place your funds into your account. There are 10 different payment methods that are available for you to use, making it accessible to everyone. Some of the most common payment methods used in the US are credit/debit cards, PayPal, and Neteller.
4. Buy Bitcoin
Now is the most exciting step. In order to purchase BTC after transferring your funds into your account, go to the navigation bar and click on “Crypto” below the “Markets” option. You will then search for BTC or Bitcoin in the dropdown menu. Once you click on Bitcoin, you can adjust the settings of your trade and once you’re satisfied, click “Buy.”
Why Should You Invest in Bitcoin in the USA?
As the number one leading cryptocurrency, there is no doubt that there is a bright future set out for Bitcoin. Many price predictions from trusted sources forecast Bitcoin to reach $75,000 by the end of 2021 all the way up to $320,000 by 2025.
The idea is that if you are planning to invest in Bitcoin, the earlier you do, the better. Yahoo Finance notes that if you were to invest $100 in BTC in 2010, when the price of the coin was only at $0.06, that investment would now be worth $72,902,650. The price has since had minor fluctuations, but nonetheless grown to a value of over $50,000 USD per coin at the time of writing. The point is, it’s better to invest before it’s too late. Who knows what your $100 today will be worth in a couple of years’ time.
Is Bitcoin a Good Investment in the USA?
According to Bloomberg, Bitcoin is becoming more widely accepted as a form of investment in the US. Financial elites like Paul Tudor Jones and Stanely Druckenmiller are lining up to give their support. There are also large investments being made by big names such as Tesla Inc., who recently invested $1.5 billion in Bitcoin. Square Inc. invested $170 million more, and other firms are all following.
After seeing its Northern neighbor Canada launch the first North American Bitcoin exchange-traded fund (ETF) back in February, many are hopeful that the SEC will also implement the United States’ first nationwide Bitcoin ETF too. A Bitcoin ETF would track the price of Bitcoin and trade on traditional market exchanges, like a stock exchange, instead of crypto exchanges. It would be among the top 20 most popular ETFs in the US in terms of trading volume according to Bloomberg. Hopes are high with President Joe Biden’s nomination of Gary Genslet, a crypto enthusiast, to fill the position of SEC chairman this upcoming summer.
During Bitcoin’s 2021 rally, demand for Bitcoin-based investments skyrocketed. The Grayscale Bitcoin Trust (GSTC), which tracks Bitcoin, has increased by 272% in the last year according to Business Insider. It’s similar to an ETF, but instead, it is backed by Bitcoin. When taking into consideration the rapid worldwide adoption of Bitcoin as an investment and means of payment, especially in the United States, it may be a sign that now is the time to invest.
Takeaways
- Nearly a quarter of all global BTC trading takes place in the United States.
- BTC is categorized as a digital currency by the SEC.
- Buying Bitcoin through an exchange is as easy as four simple steps.
- Forecasts predict Bitcoin to reach $75,000 by the end of 2021.
- if you were to invest $100 in BTC in 2010, when the price of the coin was only at $0.06, that investment would now be worth $72,902,650.
- SEC may implement the first nationwide Bitcoin ETF.
- It would be among the top 20 most popular ETFs in the US in terms of trading volume according to Bloomberg.
- Grayscale Bitcoin Trust (GSTC) has increased by 272% in the last year.