The Best Crypto Exchanges in USA of 2022 -2023
The Best Crypto Exchanges in USA of 2022 -2023 : Despite recent setbacks cryptocurrency is still a highly popular new asset class for investors. Bitcoin was one of the most popular Google searches in 2022. It beat Apple, TikTok and NFL and nearly topped “restaurants close to me”.
According to Debthammer there are currently around 295 million cryptocurrency users worldwide. 20% of these are located in the U.S.
You need to open a crypto exchange account if you are interested in purchasing cryptocurrency. Forbes Advisor reviewed over 500 options to find the best cryptocurrency exchanges for novice and advanced investors.
Is Binance legal in New York?
Binance is no longer available for customers in New York as of March 2021. We will update this page if this changes. Binance is not available to anyone in the United States.
Binance offers a special website to US-based customers at Binance.us Binance US has stricter KYC and AML requirements for new customers due to US regulations. This means verification might take slightly longer than on regular Binance.
Binance US is different from regular Binance in that it supports coins and has some additional features. You shouldn’t assume that Binance US will sell you any supported coins if you only look at them on Binance.
Bitcoin & Cryptocurrency Trading New York
New York is a strong claim to be the financial center of the world. The city is undisputedly the capital of American business and banking.
You might think that New York would be open for new ideas and technologies as the face of finance has changed so quickly over the past two decades.
New York was a haven for Bitcoin innovators and enthusiasts from the beginning, as was Charlie Shrem’s BitInstant startup which was established in Brooklyn in 2012.
However, New York’s aggressive approach to financial regulation makes it difficult for many New Yorkers who want to enter crypto.
BitLicense, which is a license that can only be issued to approved firms by the government, means all cryptocurrency exchanges and service providers in New York are tightly regulated. This could be seen as protecting New Yorkers against shady operators or driving them to look for other, less regulated providers.
Some sections of the crypto community applauded the introduction of BitLicense. Others, such as Gemini’s Winklevoss twins, resigned. ShapeShift and Bitfinex also praised the BitLicense, while Kraken called it “a creature of such foul and so cruel that not even Kraken has the strength or courage to face its horrible, large, pointed teeth.” There is no other U.S. government that has taken such an active approach to creating and tightening laws about cryptocurrencies and digital assets.
Other organisations within the state are getting in on this action, despite the fact that the official opinion is not favorable about the number one cryptocurrency. Greenridge Generation, a natural gas power station located in upstate New York near Dresden in The Finger Lakes Region, is called Greenridge Generation. The company announced in March 2020 that it had completed its Bitcoin mining farm. The facility can mine approximately 5.5 BTC per hour (pre-2020 halving) thanks to 7,000 mining machines. These rigs are powered by on-site energy that exceeds customer demand. This is 14 megawatts less than the plant’s maximum output of 106 megawatts.
Greenridge, which went online shortly after, announced that it had sold 30% its hash power to private investors. These were mostly family offices and hedge funds. Buyers gain exposure to profitable Bitcoin mining without the need to buy and set up their equipment. Greenridge’s benefits include locking in prices and generating an upfront income to support their operations.
Although the BitLicense restrictions may be restrictive, an exchange is the best and safest way to buy Bitcoin.
If you prefer to limit the amount personal information that you give out, you can either buy Bitcoin with cash at a Bitcoin ATM or with cash and a wide range of payment options such as PayPal or gift cards at LocalBitcoins.
You will need somewhere to store your Bitcoins, no matter where they are purchased. Exchange wallets are most notorious for hackers. There are many more secure options available that can be used to store your Bitcoin, including software wallets and top-of-the-line hardware wallets.
Are Crypto Exchanges Legal in New York because of the BitLicense?
The short answer to your question is yes.
A company can provide cryptocurrency services as long as they have a valid BitLicense. This is true regardless of whether it does business in New York. This is precisely why the BitLicense was designed.
Circle was the first crypto company to obtain a BitLicense – you might know Circle as the one responsible for the USDC stablecoin.
An additional 24 firms received approval from (NYDFS) since then. These include well-known exchanges like Gemini and Coinbase as well as Ripple’s legal entity XRP II.
However, some exchanges, including Bitfinex and Formshift, chose to close their New York-based operations instead of applying for a BitLicense.
There were criticisms directed at the NYDFS’s heavy-handed approach and the long application process for a BitLicense. These two factors, together, were feared by many to kill the grassroots growth that made Bitcoin truly decentralized.
The NYDFS indicated that it might be open to easing the BitLicense terms in order to attract talent and capital to the state. However, regulations remain in full force at the moment.
Bitcoin Mining in New York
Christopher Naples, an IT supervisor at Suffolk County Center was charged in September 2021 with theft and misconduct after setting up 46 mining machines at the facility. It is estimated that the machines were hidden beneath floorboards, and approximately $6,000 worth of electricity was stolen. For the mining operation, Naples could spend up to 15 years behind bars. It is not known how much crypto was mined at the time that the machines were in operation.
Stealing electricity to mine cryptocurrency is a bad idea. It is safer to buy electricity through an exchange like the ones outlined above.
Exchange Scams and Hacks in New York
Despite the fact that the New York Attorney General has been aggressive in his approach to crypto regulation, and prosecution, there are still some unscrupulous people who have tried to make quick money off of naive investors.
The most well-known stablecoin, Tether (USDT), is the largest (or alleged) cryptocurrency scam in New York. Letitia James, New York’s Attorney General, filed a lawsuit against iFinex Inc., a Hong Kong-based company that operates Bitfinex and owns Tether. She claims that Tether was printed by the company up to $850,000,000 in unbacked Tether , to cover unreported losses.
This could have been Bitfinex hacking, which would then have decided to cover up the intrusion by paying customer withdrawals with new Tether.
Tether claims that it is not backed 1:1 by U.S. Dollars, but Tether denies these allegations and is contesting them in court.
A smaller number of people were charged in New York with Bitcoin scams.
On his return from Ukraine, a man was stopped at JFK Airport. Police found him with thousands of fraudulent credit card numbers. The DoJ claims Vitalii Antonenko made more than $140,000 from the sale of these card numbers for six years.
Antonenko used SQL injection attacks on the internet to search for sites that could expose sensitive information. From these websites, he was able to obtain the credit card numbers. After seeing large amounts of BTC being exchanged on a third-party site, police were alerted.
A man was indicted by the Department of Homeland Security, and the Southern District of New York prosecutors for wire fraud. He ran a scam to defraud investors of their money using false pretences. This charge carries a maximum of twenty years imprisonment. Asa Saint Clair allegedly enticed investors to invest in IGOBIT, an intergovernmental organisation that promotes international development through sport. Problem is, none of the money went to IGOBIT. It went instead to international flights, dining at New York restaurants and personal online shopping.
Where can I find a Bitcoin ATM in New York City?
Our Bitcoin ATM Locator tool is the best way to locate a Bitcoin ATM in New York.
You can filter this list by any of the most common cryptocurrencies to find ATMs that allow you to buy, sell, or both.
What can I buy with Bitcoin in New York City?
CoinMap lists hundreds upon hundreds of brick-and-mortar businesses in New York that accept Bitcoin for payment. These include clothing retailers, bars, restaurants and nightclubs.
There are many online shops that accept Bitcoin, so you should have no trouble finding somewhere to spend your BTC.
With Coinbase, you can purchase Xbox games and Windows Phone apps on the Microsoft Store with Bitcoin. You can also shop for all Overstock products knowing that you will be able to check out with Bitcoin.
What is the New York Bitlicense exactly? Who created it?
The BitLicense, which is basically a seal of approval by the New York Department of Financial Services NYDFS, certifies that the recipient has the authority to provide cryptocurrency services within the state of New York.
What is New York’s Capital Gains Tax?
You should be aware of capital gains tax, whether you are a daytrader and a long-term investor. If your Bitcoin’s value has increased since you purchased it, cashing out will result in capital gains tax.
Despite this, the tax code can be complicated and it can be difficult to determine which capital gains tax rate is applicable to your particular situation. It can also seem difficult to understand cryptocurrency trading because many accountants don’t know the details.
There are many software programs that can help you solve this problem. With a little effort (mostly exporting your trade history, then importing it into the program), you can calculate your crypto taxes.
Our guide to the best cryptocurrency tax calculators is available.