- 1. Things You Need to Know Before Opening an Account with Cryptocurrency exchanges
- ２．U.S. Based Cryptocurrency Exchanges Which Accept Deposit and Withdraw of US Dollar
- 3. Smartphone App which Allow Customers to Deposit/Withdraw US dollars, and to Trade Cryptocurrencies
1. Things You Need to Know Before Opening an Account with Cryptocurrency exchanges
First of all, a cryptocurrency exchange is an exchange where you can buy and sell cryptocurrencies (virtual currencies).
Each exchange has its own rules regarding residents of which countries (or state) can open an account and make transactions. For example, in the case of exchanges in the US, they need to obtain license from each state where they desire to conduct business, and if the license cannot be obtained, residents of a such states cannot even open an account. Similarly, in the case of overseas exchanges, U.S. residents may not be able to open an account if the overseas exchanges so determined.
Which cryptocurrencies we can deposit/withdraw differ depending on which exchanges we wish to use. Also, we can send/receive fiat currencies such as US dollar or Japanese yen to some cryptocurrency exchanges, while we cannot do so to some exchanges. Below, I examined U.S. based cryptocurrency exchanges which allow users to deposit/withdraw U.S. dollars to their accounts.
Concurrency exchanges listed below are just examples and there are countless cryptocurrency exchanges. If you are interested, please check CoinMarketCap which lists 259 cryptocurrency exchanges in the order of market volume.
２．U.S. Based Cryptocurrency Exchanges Which Accept Deposit and Withdraw of US Dollar
If you are thinking about starting cryptocurrency trading and ask for an advice regarding where to start, I think 10 out of 10 people would recommend to open an account with Coinbase.
You can send cryptocurrencies to Coinbase. Coinbase also allow you to deposit US dollars from your bank account (ACH, Wire Transfer, debit card), and to exchange US dollar to cryptocurrencies. (Source: Coinbase: Payment Methods for US Customers)
For withdrawal, you can not only send US dollar to your bank account, but can send to your PayPal account (Source: Coinbase: PayPal FAQ)
When I opened an account with Coinbase (at the end of 2017), Coinbase only handled four cryptocurrencies, which were BTC (Bitcoin), BCH (Bitcoin Cash), ETH (Etherieum), and LTC (Litecoin). As of the December 18, 2019, in addition to the above 4 currencies, you can trade BAT, DAI, DASH, EOS, ETC, LINK, OXT, REP, USDC, XLM, XRP, XTZ, ZEC, and ZRX. In the case of New York residents, however, only 9 currencies (AI, ETC, LINK, XLM and XRP in addition to original 4 currencies) are the only currencies you can trade.
Click here for details. → Coinbase: Supported Cryptocurrencies
In trading, you can only use market order (limit order at current rate). However, if you use Coinbase’s smartphone app, you can set up to receive notifications on your smartphone which will notify you when it reaches a certain price.
In trading cryptocurrencies, you can either specify dollar amount (how many dollars you want to spend to buy the cryptocurrency) or in a number of cryptocurrencies (how many cryptocurrencies you intend to buy at the current price). It is an easy-to-use exchange for beginners.
2.2 Coinbase Pro
When a customer open an account with Coinbase, account for Coinbase Pro (previously called GDAX) will be automatically opened. Password for Coinbase Pro is same with that of Coinbase.
At Coinbase Pro, a customer can use not only market orders, but also limit orders and stop orders.
US base customers (excluding New York) can trade, send, and receive ALGO, CVC, DNT, GNT, LOOM and MANA in addition to cryptocurrencies which are traded at Coinbase as mentioned above. Residents in New York can trade only 10 currencies which consists of ALGO and 9 currencies mentioned in Coinbase section.
- Website: https://bittrex.com/
- Bittrex is an exchange for U.S. citizens and US residents. There is a separate exchange (Bittrex Global) for non-US based customers.
- Funding/Withdrawal: Not all, but customers of most states can deposit or withdraw in US dollar. Those states which cannot use US dollar should obtain USDT, BTC or ETH first, then deposit those currencies. (Source: Bittrex: Fiat (US Dollar) Trading, Deposits and Withdrawals)
- Cryptocurrencies available for trade: Listing extensive number of cryptocurrencies. For details see https://bittrex.com/home/markets.
- US based customers became unable to trade 32 cryptocurrencies from June 21, 2019. Also additional 42 cryptocurrencies will become unable to trade from June 28, 2019. These 74 cryptocurrencies will continue to be available at Bittrex International. (Source: Bittrex: Market Availability Changes for U.S. Customers)
- Residents of New York cannot be a customer of Bittrex. (See Bittrex: State-Specific Disclosures). Bittrex used to allow New York residents to trade, but starting from April 11, 2019 the rule has been changed.
＜Email from Bittrex＞
2.4 Bitflyer USA
- Website: https://bitflyer.com/en-us/
- Bitflyer has separate exchange for Japanese residents, and Bitflyer USA is designed for US residents.
- Cryptocurrencies available for trade: Bitcoin is the only cryptocurrency offered to trade.
- Funding: Customers can deposit/withdraw US dollars to/from bank accounts. (See https://bitflyer.com/en-us/FAQ/deposit_us)
- Bitflyer USA does not offer services to residents of 5 states (Connecticut, Hawaii, Minnesota, Nevada and West Virginia) at this point, but noted “coming soon” to those 5 states. (See https://bitflyer.com/en-us/States)
- Website: https://gemini.com/
- Currencies available for trade: Depending on the states where customers resides, there are some differences, but basically, customers can trade BTC, ETH, KTC, BCH, ZEC and GUSD.
- Funding: Customers can deposit/withdraw in US dollars. (See Fiat (USD) Transfers)
- Gemni does not offer services for the residents of Hawaii at this point, but noted “Coming Soon” to Hawaii. (See https://gemini.com/areas-of-operation/)
- Website: https://www.kraken.com/
- Cryptocurrencies available for trade: Customers can trade 20 cryptocurrencies.
- Funding: Kraken accept deposits and withdrawal in US dollars.
(See https://support.kraken.com/hc/en-us/articles/360000381846-Fiat-currency-deposit-options-fees-minimums-and-processing-times- and https://support.kraken.com/hc/en-us/articles/360000767986-Cryptocurrency-withdrawal-fees-and-minimums）
- Kraken does not offer services to the State of New York as well as State of Washington in the US.
3. Smartphone App which Allow Customers to Deposit/Withdraw US dollars, and to Trade Cryptocurrencies
It is not a cryptocurrency exchange, but using the investment app “Robinhood” might be the easiest way to trade cryptocurrencies . This app is popular for stock traders (mainly millenniums) because it allows customers to trade stocks for free.
Trading cryptocurrencies is also free. However, since the app does not allow customers to send and receive cryptocurrencies from outside, it is for people who want to enjoy purely trading cryptocurrency.
- Site: https://robinhood.com/
- Cryptocurrencies available for trade: Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC) and Litecoin (LTC) are available for trading (Source: Robinhood : Available Cryptocurrencies)
- Deposits and withdrawals: You can deposit and withdraw in US dollars. You need to link your Robinhood account to a bank account (Source: Robinhood: Bank Transfers & Linking)
- Sending and receiving of cryptocurrencies is not currently allowed. (Source: Robinhood: Cryptocurrency Transfers and Deposits)
- Crypto trading is possible in 47 states, including New York. (Source: Robinhood: Available States)
I personally give high credits to Robinhood because it has already obtained Bitcoin license from New York State Department of Financial Service. Among the exchanges listed in section 2 above, Coinbase/Coinbase Pro, Bitflyer USA and Gemni are the ones who have acquired Bitcoin licenses.
I am a Japanese, residing in the US. I am trying to find a way to earn stable income at home through investments in stocks or other products as well as some sort of internet business. ▶ More detailed profile can be viewed from here.
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