10 Platforms to Buy and Sell Bitcoin for US Residents

Investing in Bitcoin has never been easier for Americans. With numerous exchanges and brokers now available, you have plenty of options to get started. But which platform should you choose? Here are 10 platforms to buy and sell bitcoin for US residents.

1. Kraken

Kraken is one of the oldest and most respected cryptocurrency exchanges, founded in 2011. It offers a numbers of cryptocurrencies, including Bitcoin, Bitcoin, for US users to trade.

Key features:

• Competitive trading fees starts at 0.16% and decrease for higher–volume traders.traders.
• High security standards,standards, with 95% of deposits held offline in cold storage
• Advanced trading features like margin and futures trading
• 24/7 live chat support

Kraken is best for intermediate to advanced traders looking for a secure, reputable exchange with low fees. However, the interface may be intimidating for complete beginners.

2. Coinbase

Coinbase is a platform for buying and selling Bitcoin, known for its beginner-friendly interface. It was founded in 2012 and is fully regulated and licensed to operate in the US.

Highlights:

• A simple user interface is ideal for first-time crypto buyers.
• Ability to buy Bitcoin instantly with a credit or debit card or bank transfer
• High liquidity ensures you can buy and sell without slippage.
• Cryptocurrency is insured in case Coinbase gets hacked.
• Educational resources to learn about Bitcoin and crypto

The main drawbacks are higher fees compared to other exchanges, ranging from 1.49% to 3.99% depending on the payment method. Coinbase is best for crypto novices who value ease of use and learning resources.

3. eToro

eToro is a multi-asset brokerage company that allows you to buy and sell Bitcoin and other top cryptocurrencies. It was founded in 2007 and launched crypto trading in 2018.

Key advantages:

• Extremely user-friendly interface and mobile app
• Ability to easily buy bitcoin with USD
• Unique social trading features to follow and copy top traders
• A free, secure Bitcoin wallet for storing your BTC
• $100,000 in insurance on cash balances

eToro has transparent flat fees; it charges a 1% fee to buy or sell crypto. Spreads can also be high during periods of volatility. It’s a good choice for social traders, but serious crypto traders may prefer an exchange with more advanced features.

4. Gemini

Gemini is a cryptocurrency exchange and custodian founded in 2014 by Cameron and Tyler Winklevoss. It is known for its strong focus on security and regulatory compliance.

Notable features:

• Regulated by the New York State Department of Financial Services (NYSDFS),
• Offers FDIC insurance on USD deposits up to $250,000.
• Most of the crypto is held offline in cold storage for maximum security.
• Gemini Earn allows you to earn interest on your crypto holdings.
• ActiveTrader interface for advanced traders with lower fees

Trading fees range from 0.25% to 0.35% for taker orders, depending on 30-day trading volume. Gemini is a good fit for security-conscious investors and also suits both beginners and active traders.

Related: Top Crypto Marketing Agencies of 2024

5. Binance.US

Binance. The US is the American arm of Binance, the world’s largest cryptocurrency exchange. It was launched in 2019 to provide regulated services to US residents.

Key advantages:

• Wide selection of altcoins in addition to Bitcoin
• Low trading fees, starting at 0.1% and decreasing for high-volume traders
• Advanced charting and order types for experienced traders
• Staking rewards are available for holding certain coins.
• Responsive customer support

On the downside, Binance.US has a more limited coin selection compared to the global Binance exchange. It’s a great choice for altcoin enthusiasts and traders, but not as beginner-friendly as other options.

6. Uphold

Uphold is a multi-asset digital money platform that allows you to buy, sell, and convert between Bitcoin, other cryptos, precious metals, and fiat currencies.

Notable features:

• User-friendly interface for easy Bitcoin buying and selling
• Unique “Anything-to-Anything” trading allows instant conversion between asset classes.
• A debit card lets you spend crypto, USD, and other assets instantly.
• Ability to earn up to 10% interest on fiat and stablecoin holdings
• 24/7 customer support

Uphold charges spread fees of 0.8% to 1.2% when buying Bitcoin with USD, as well as withdrawal fees. The platform is best suited for those wanting to easily convert between asset classes in one place.

7. Robinhood

Robinhood is a popular commission-free stock and crypto trading app founded in 2013. It introduced Bitcoin and other crypto trading in 2018.

Highlights:

• Buy and sell Bitcoin with zero commissions.
• Beginner-friendly, easy-to-use mobile interface
• There are no account minimums to get started.
• Instant deposits up to $1,000 with a linked bank account
• A free stock bonus for referring friends

However, you can’t deposit or withdraw cryptocurrencies from Robinhood; you can only buy and sell within the app. This makes it less than ideal for those wanting full control over their bitcoin.

8. Bitfinex

Bitfinex is a long-standing crypto exchange founded in 2012, offering Bitcoin margin trading and lending.

Key features:

• Margin trading up to 5x leverage
• Bitcoin lending allows you to earn interest on BTC holdings.
• Deep liquidity for large-value traders
• Advanced tools like over-the-counter (OTC) trading

While Bitfinex had some issues with hacks and financial irregularities in the past, it has worked to improve security and transparency. Trading fees start at 0.1% and go lower for larger volume traders.

9. Bitstamp

Bitstamp is one of the oldest Bitcoin exchanges, founded in 2011. It’s based in Luxembourg but serves many US customers.

Advantages:

• Simple and intuitive buy/sell interface
• Long-track record of reliability and security
• High liquidity for large BTC trades
• Transparent fees starting at 0.5% and decreasing for takers
• Solid mobile app for trading on the go

Bitstamp is known for reliable customer service but may have slower account verification times compared to other exchanges. It’s a trustworthy exchange for large volumes.

10. Interactive Brokers (IBKR)

Interactive Brokers is a well-established brokerage that introduced Bitcoin futures trading for select US clients in 2021.

Key features:

• Trade Bitcoin futures contracts on a regulated exchange.
• Sophisticated trading platform with advanced order types
• Low commissions and margin rates
• Ability to hedge Bitcoin exposure
• Access to global markets and asset classes

Interactive Brokers is geared toward financial professionals and sophisticated traders. You must be approved for futures trading and meet certain net-worth requirements. It’s not an option for buying and owning actual Bitcoin.

Key Takeaway

1. There are numerous reputable exchanges and brokers available for buying and selling Bitcoin in the US, each with its own strengths and weaknesses.

2. Coinbase and eToro are good choices for beginners, offering user-friendly interfaces and educational resources. However, they may have higher fees than other options.

3. Kraken and Gemini are known for their strong security measures, with most assets held offline in cold storage. They are good fits for security-conscious investors.

4. Binance.US and Bitfinex offer advanced trading features and deep liquidity for more experienced traders, as well as the ability to trade altcoins.

5. Robinhood allows for commission-free Bitcoin buying and selling but does not let you deposit or withdraw crypto from the platform.

6. Bitstamp is one of the oldest exchanges and offers reliable service for large BTC trades, while Uphold allows for instant conversion between Bitcoin, other assets, and fiat currencies.

7. Interactive Brokers offers Bitcoin futures trading for approved clients but is not an option for buying and owning actual Bitcoin. It is geared toward sophisticated traders.

Frequently Asked Questions

1: What do I need to sign up for a Bitcoin exchange?

To register for a Bitcoin exchange, you need to provide your full name, email address, phone number, and proof of identity, such as a government-issued ID. Some exchanges may also require proof of address.

2. How do I deposit money into a Bitcoin exchange?

Most exchanges allow you to fund your account via bank transfer (ACH), wire transfer, or credit or debit card. Some also support PayPal, Apple Pay, or other payment methods. Deposit methods vary by exchange, so check for supported options.

3. What fees do Bitcoin exchanges charge?

Exchanges make money by charging fees on transactions. These include:

• Trading fees are a percentage of each buy/sell order, usually lower for high-volume traders.
• Deposit/withdrawal fees: flat fees for moving money in and out of your account
• Spread fees: a markup on the Bitcoin price when buying or selling Be sure to compare fee structures before choosing an exchange.

4. How do I withdraw Bitcoin from an exchange?

To withdraw Bitcoin, you’ll need to provide the exchange with a Bitcoin address to send the funds to. This can be an address from your personal Bitcoin wallet or another exchange. Exchanges may have minimum withdrawal amounts and charge withdrawal fees.

5. Are Bitcoin exchanges safe?

Reputable Bitcoin exchanges use advanced security measures to protect client funds, such as storing most assets offline in cold storage and requiring two-factor authentication for account logins. However, exchanges can still be hacked, so it’s important to withdraw your Bitcoin to a personal wallet if you’re not actively trading.

6. How do I choose the right Bitcoin exchange?

Consider factors such as fees, security measures, supported payment methods, trading features, and the user interface when choosing an exchange. If you’re a beginner, you may prioritize an easy-to-use platform with educational resources. More advanced traders may look for exchanges with lower fees, higher liquidity, and advanced order types.

7. Do I have to verify my identity to buy Bitcoin?

Yes, regulated US Bitcoin exchanges are required by law to verify customer identities in order to prevent money laundering and fraud. You will need to submit proof of identity and address to buy, sell, or trade Bitcoin on a compliant exchange.