Best Cryptocurrency Investment Options For Us Investors

There are many different cryptocurrencies available to invest in, and the market can be extremely volatile, so it's important to do your research before deciding which one to invest in. Some of the most well-known cryptocurrencies include Bitcoin, Ethereum, Binance Coin, and Dogecoin. Each of these currencies has its own unique features and advantages, so it's worth considering what you're looking for in a cryptocurrency before investing. For example, Bitcoin is the most popular and valuable cryptocurrency, while Ethereum is known for its smart contract capabilities and decentralised applications. It's also important to consider the risks involved in investing in cryptocurrencies, as the market can be unpredictable.

Crypto wallets

There are two main types of crypto wallets: hot wallets and cold wallets. Hot wallets are connected to the internet and are often available as a standalone product or as an add-on through popular crypto exchanges. They are highly convenient and can be accessed from anywhere with an internet connection. Examples of hot wallets include Coinbase Wallet, MetaMask, and Crypto.com DeFi Wallet.

Cold wallets, on the other hand, are not connected to the internet and are designed to store your digital keys offline, either on a hardware device or a sheet of paper. They provide a higher level of security compared to hot wallets, as they are not susceptible to cyberattacks. However, they are more prone to loss or damage, and recovering access to your crypto can be challenging in the event of loss or damage. Examples of cold wallets include Ledger, Ellipal Titan, and SafePal.

When choosing a crypto wallet, it is important to consider factors such as security, functionality, cost, and the types of cryptocurrencies supported. Additionally, you may want to consider whether you prefer a custodial wallet, where a third party controls and manages the wallet on your behalf, or a non-custodial wallet, where you are responsible for storing and protecting your private keys.

Crypto exchanges

There are two main types of crypto exchanges: centralized and decentralized. Centralized exchanges are run by a single authority, like a brokerage company, and are more beginner-friendly. Decentralized exchanges distribute responsibility for facilitating and verifying crypto trades to anyone willing to join a network and certify transactions. While decentralized exchanges may help increase accountability and transparency, they are less user-friendly and don't always allow users to deposit dollars and exchange them for crypto.

There are hundreds of crypto exchanges to choose from, but some of the most popular include:

• Kraken: One of the oldest crypto exchanges, founded in 2011. Offers a solid range of coins with competitive trading fees. Also offers margin trading and other advanced trading tools.
• Gemini: Available in all 50 US states and packed with features, like its Gemini Earn program for earning interest on crypto holdings and the Gemini Credit Card.
• Crypto.com: Provides a very good selection of over 250 cryptocurrencies and unique perks and crypto rewards for Crypto.com Visa Card users.
• KuCoin: Provides access to a wide library of altcoins at low fees. Accepts credit and debit cards. However, it is not licensed in the US and funds kept on the platform are not insured.
• Coinbase: Offers more than 200 tradable cryptocurrencies and a user-friendly interface. Allows users to stake several popular cryptocurrencies.
• BYDFi: An ambitious newcomer providing trading services in more than 150 countries. Complies with financial industry regulations and holds licenses in Australia, Singapore and the US.
• Binance US: An affiliate of the Binance exchange, launched in 2019 as a dedicated US platform. Offers more than 150 cryptocurrencies to buy, sell and trade, as well as OTC trading and staking.
• EToro: A renowned global trading platform that offers a diverse range of financial investments, including stocks, indices, commodities, currencies, ETFs and crypto. Regulated by top-tier authorities like the FCA, CySEC, and ASIC.
• Robinhood: A popular stock trading app that expanded its services to include cryptocurrency trading in early 2018. Offers commission-free trading for crypto.

Traditional brokers

Fidelity Investments

Fidelity Investments has been at the forefront of digital asset adoption on Wall Street. It offers a broad selection of crypto ETFs, provides educational material, and supports commission-free Fidelity crypto ETFs. However, it has comparatively high trading fees and only supports two cryptocurrencies for spot trading.

Robinhood

Robinhood is a popular commission-free trading app that offers an incredibly easy stock user interface for crypto markets. It currently offers 15 cryptocurrencies and provides 24/7 customer support. However, crypto trading is not available in Hawaii, and there are some restrictions on available coins in New York and Texas.

Interactive Brokers

Interactive Brokers is a well-established online brokerage platform that provides comprehensive access to the global financial markets. It introduced crypto trading in 2021, offering four leading cryptocurrencies, including Bitcoin and Ethereum. The platform stands out for its advanced trading tools, such as technical analysis indicators and charting tools, making it a good choice for experienced traders.

Charles Schwab

Charles Schwab is a well-known investor-friendly company that offers trading in Bitcoin futures. While there is no account minimum, any futures contracts traded will require a minimum margin to hold them open. Schwab offers competitive commissions of $2.25 per contract and provides welcome bonuses for large deposits.

EToro

EToro is a beginner-friendly, multi-asset brokerage platform that enables users to trade a variety of cryptocurrencies and copy the trades of other successful traders. It offers access to the largest crypto coin selection and has a user-friendly platform. However, it has relatively high commissions and is only available in 47 US states.

Money transfer apps

Venmo is one of the most popular payment apps due to its ease of use and quick account setup. In addition to sending and receiving money, Venmo allows you to buy, sell, or hold Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). The app charges a minimum fee of 49 cents for cryptocurrency transactions.

PayPal, with over 400 million users, is another well-known payment app. It offers similar features to Venmo, including the ability to buy, sell, and hold Bitcoin, Ether, Litecoin, and Bitcoin Cash. PayPal's fees include a minimum 49-cent fee for small transactions, plus a small percentage fee for transactions of $25 or more.

Cash App is a simple yet feature-rich app that allows you to send, receive, and invest money. In addition to stocks, Cash App supports buying and selling Bitcoin. Any fees associated with transactions will be listed in a trade confirmation before completion.

Zelle is a free payment app offered by many banks that enables users to send and receive money. While Zelle doesn't directly support cryptocurrency trading, it can be used to buy cryptocurrencies, such as Bitcoin, on peer-to-peer (P2P) crypto trading sites.

Google Pay is a digital wallet and payment app provided by Google. It doesn't offer crypto-related features directly but can be used to purchase cryptocurrencies on some P2P sites. Google Pay also partners with crypto companies like BitPay and Bakkt to facilitate cryptocurrency transactions.

BitPay is a crypto-focused payment app that allows you to buy, store, swap, and spend cryptocurrency. It offers a crypto debit card that lets you use your existing crypto to pay for purchases. While BitPay doesn't offer direct crypto buying or selling options, it integrates with the Simplex brokerage platform for coin purchases.

Robinhood is an investing app that supports stocks, funds, and cryptocurrencies. It offers commission-free investing and provides access to over 75,000 free ATMs. Robinhood currently supports seven cryptocurrencies, including Dogecoin, Bitcoin, and Ethereum.

When choosing a money transfer app for cryptocurrency investing, consider factors such as fees, the range of cryptocurrencies supported, security, and user-friendliness. Be sure to review the features and capabilities of each app to determine which one best aligns with your investment goals and preferences.

Bitcoin ATMs

The process of buying bitcoins from a Bitcoin ATM is as follows:

• Enter the amount to purchase. Depending on local regulations and the amount being purchased, identity verification may be required.
• Provide your Bitcoin wallet address. This can be done by using the Bitcoin ATM's camera to scan the QR code of your Bitcoin wallet address, which is displayed in your Bitcoin wallet app.
• Pay using cash, credit card, or payment app.
• Receive the bitcoins in your Bitcoin wallet. This generally takes a few minutes. The Bitcoin ATM will provide a transaction ID to monitor the status of the purchase. A confirmation will appear in the Bitcoin wallet app once the bitcoins have been received.

Selling bitcoins from a Bitcoin ATM follows a similar process:

• Enter the amount to sell. Depending on local regulations and the amount, identity verification may be required.
• Send bitcoins to the provided address. The Bitcoin ATM will generate a Bitcoin address for the transaction. The bitcoins can be sent to this address by scanning the QR code using the Bitcoin wallet app.
• Take the cash. Once the Bitcoin ATM receives the bitcoins, it will dispense the cash. This generally takes a few minutes, and the transaction status can be monitored using the Bitcoin wallet app.

There are thousands of Bitcoin ATM locations worldwide, with most of them being in the United States. Some of the major Bitcoin ATM providers in the US include:

• Coinhub: Over 2,000 machine locations nationwide with daily cash limits of $25,000.
• Lowest Fee Bitcoin ATMs: Daily cash limits of $50,000 per day and instant approval for registration.
• Byte Federal: Offers Bitcoin ATMs, POS systems, and a secure, non-custodial wallet.
• Coinme: Powers thousands of locations around the country to buy and sell crypto with cash.
• CoinFlip: Over 5,000 kiosks across the globe with a focus on building accessible and inclusive financial services solutions.
• Cash2Bitcoin: Bitcoin ATM locations are mostly open 24/7.
• Bitstop: One of the oldest and largest Bitcoin ATM networks with over 2,500+ locations across the United States.
• Just Digital Coin: Hundreds of locations across 26 states for buying Bitcoin, Litecoin, and Ethereum with cash.
• HODL Digital Services: Crypto ATMs for buying and selling Bitcoin, Litecoin, and Ethereum, with high limits for registered customers and quick delivery of coins.
• BudgetCoinz: Offers instant verification and low fees, with transactions completed in as little as 2 minutes.

Frequently asked questions