Trading Crypto In The US; Don't Get Trumped Out Of The Crypto Pump
Trading crypto in the US has never been easy with all the regulations that we need to comply with. US based traders were left in a "gray" area for so long that many end up just confused as to where they can trade while still being compliant. While you do have to KYC for every US based crypto exchange now, there are some great options for trading cryptocurrency in the US in 2020.
Let's take a closer look at some of the options:
Binance.US
Binance.us offers the same great interface and trading platform that you are used to and they are fully compliant with US regulations. Their mobile app makes it super simple to trade on the go as well.
The selection of coins offered is smaller than its global counterpart due to more strict listing requirements, however, most of the popular coins are still available for trading with USD, BTC pairs. They seem to add coins pretty regularly too so the following list is ALWAYS growing based on user feedback. A full list of coins offered can be seen here.
Regarding fees, general: 0.1% trading fee still applies with a 25% reduction if the fee is paid in BNB. Further reduction in trading fees is applicable once the 30 day trading volume in USD exceeds 50k USD. The full fee schedule can be seen here.
Deposits can be made using Bank Transfer, Crypto Deposits, Credit Cards
Withdrawal Limit can be seen as follows:
- Complete Basic Verification: 5,000 USD equivalent in crypto each day.
- Complete Advanced Verification: 1,000,000 USD equivalent in crypto each day.
- Complete Fiat Account Verification: withdraw up to 5,000 USD with ACH or 1,000,000 USD with wire each time.
Just like the original Binance, Binance.us continues being a very good place to trade crypto. It is fully regulated and offers great terms for traders. The only real downside for Binance.us is that they do not offer margin trading as of now and you may not find some of the mid-cap assets on the exchange just yet.
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Invest Voyager
Currently available to all U.S. residents, excluding New York, however, with promises to obtain BitLicense soon, Invest Voyager is something new in the Crypto space.
Invest Voyager is not a crypto exchange in the way as previously mentioned exchanges. Instead, it`s an app that automatically searches for the best exchange rate on the largest exchanges and executes the trade without the need for you to have an account anywhere else. According to their website, this allows achieving price improvement on over 90% of customer orders. Additionally, Voyager offers commission-free trading due to being able to shop around for the best price on multiple exchanges.
By using the Voyager app on iOS and Android customers are available to deposit and withdraw most popular tokens such as for Bitcoin, Ethereum, Ethereum Classic, Bitcoin Cash, Litecoin, Dash, and their own native token Voyager Token(VGX). The team also promises to keep expanding in 2020 in order to allow more coins to be transferred. A full list of supported coins can be seen here.
Another interesting feature is the Voyager Interest Program which allows to trade and earn interest at the same time without any lockups needed. Currently, interest is offered on Bitcoin (BTC), the Voyager Token (VGX), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). when you hold a minimum monthly balance. Minimum monthly balance, however, is required to be able to earn interest on your holdings. Further explanation of how this works can be read here.
Overall, Invest Voyager seems like a great idea for the average investor who wants to keep things easy and mobile. They continue to expand in the market with an acquisition of Circle Invest and are set on the way to be among the largest digital asset brokers in the US.
Kraken
Operating since 2011, San Francisco-based Kraken is one of the oldest exchanges in the market. It has been constant among the list of top 10 exchanges for volume traded for the past years and has not had any major issues like hacks.
Currently, Kraken does not offer service to residents of Washington State and New York due to regulations, however, the rest of the US is free to use the platform once.
Most popular crypto`s such as BTC, ETH, BAT, ADA, LINK, EOS, DASH, and ETH are available to trade, however, you will not find less common mid-caps and small caps. See the full list here. Leverage trading both against USD and EUR as well as BTC is also available with up to 5x maximum. BTC/USD as one of the most liquid pairs has a 5x leverage as of now and should be enough for most of traders since the market volatility is high enough anyway. A further list of pairs available for margin trading and their maximum leverage can be seen here.
Several account types are offered with increasingly stricter verification requirements. Fiat deposits are available only once an Intermediate account is verified and requires ID, proof of residence, ID confirmation photo as well as information about your occupation. Starter account, however, allows unlimited crypto deposits and up to 5k USD daily withdrawal.
Both Android and iOS apps are available as of October 2019 for both Kraken Pro and Kraken Futures trading.
Regarding fees, Kraken uses a maker-taker fee schedule with volume incentives based on your activity in the past 30 days. The first level of fees are as follows:
$0 - $50,000 maker: 0.16% taker: 0.26%
Discount is further applied as the trading volume increases as with most exchanges. The full fee schedule can be seen here.
USD Bank Wire Deposit and Withdrawals have a fee of 5 USD and as of now, Debit and credit cards are not accepted.
Overall, Kraken has been one of the top exchanges internationally for some time now and has a great reputation. Some complaints about the level of customer support have been heard, however, it is a great option for those who only want to deposit and withdraw using only crypto.
Gemini
Based in New York and founded by the Winklevoss twins back in 2015, Gemini is currently available for US customers in a total of 49 states as well as several other countries. As have the status of New York State limited liability Trust rather than a Bitlicence, they offer services for both individual and institutional clients. Therefore, they require a lot of information to register to make their exchange as compliant as possible.
Gemini fees depend on your 30-day trade volume. There are six tiers of fees as seen below on their Active trader platform. Mobile orders and Web fee transaction fees are subject to a different fee schedule and are substantially higher with orders above 200 USD having a fee of 1.49% and even higher fixed amount for orders below this limit. Therefore, make sure to use the Active trading platform. More on this here
Cryptocurrency, bank, and wire deposits are also free of charge. Crypto depsoits/withdrawals are also accepted. First 10 withdrawals per month are free for cryptos and always free for the bank, and wire withdrawals.
Overall, Gemini is a great exchange for those who value security above all else and offer a great platform for trading crypto. It is easy to use as it offers great interface and is a great choice for New York based traders.
Coinbase 
Headquartered in San Francisco, Coinbase continues to be one of the most well-know, safest and respected exchanges with over 20 million customers worldwide. Popular especially for beginners as they also offer an easy to use app for both Android and iOS users. While I have really stopped recommending Coinbase as my "go-to" place for beginners to trade, no top US Crypto exchanges list would be complete without mentioning them.
They have also been the industry leaders in regard to complying with regulations and require a full KYC process in order to comply with all AML and KYC laws.
Coinbase keeps only keeping 2% of all cryptocurrency on the exchange online. The rest is all kept in cold storage, therefore, client funds are safe. Additionally, they are privately insured by Lloyds of London. Accounts holding $250,000 and under are also FDIC insured.
Coinbase offers an easy to use interface with the ability to buy most of the popular cryptos with just a few clicks. Through Coinbase, deposits can be made with a credit card(with restrictions), bank transfer, SEPA transfer, debit card, and others.
Regarding fees, Coinbase charges a Spread of about 0.50% in addition to a transaction fee based on volume as follows:
If the total transaction amount is less than $10, the fee is $0.99
If the total transaction amount is $10 - $25, the fee is $1.49
If the total transaction amount is $25 - $50, the fee is $1.99
If the total transaction amount is $50 - $200, the fee is $2.99
This, however, is subject to change and varies for different countries, therefore, read further on the fees here to see what the current situation is based on your location.
Overall, a great option for beginners, however, fees can be a bit high when compared to the competition. Their more advanced exchange – Coinbase Pro, is something to check out as the trading fees are a bit lower.
Posted from my blog: https://www.cryptostache.com/2020/03/20/trading-crypto-in-the-us-dont-get-trumped-out-of-the-crypto-pump/