CRYPTOCURRENCY EXCHANGES IN NEW YORK
For those who do not want to read through this post, I'll post links
below to where to buy cryptocurrencies.
Best Exchanges
Terrible Exchanges
You may have heard about cryptocurrencies in the news, online or
plastered in advertisements somewhere. You hear stories about people
become wildly rich in a few years with only a few dollars in their
pocket. Believe it or not, it is actually very possible. You
as an individual, not wanting to miss out on the opportunities to amass
great fortunes, decide to join in the craze. You see advertisements
for sellers of cryptocurrencies such as Crypto.com and
Kraken only to find out after trying to sign up, you learn they
do not provide services to New Yorkers.
BEST EXCHANGES
Gemini Exchange
Pros:
- Emphasis on Security
-
Offers Yield on Cryptocurrencies
-
Mostly Sells High Quality Cryptocurrencies
-
Large Selection of Cryptocurrencies
- Offers Trading Platform
-
Pays for transaction fees to withdraw cryptocurrencies from
exchange
-
Works and operates the same in New York as it does in any other
state
-
Servers tends to operate when a high volume of trades are being
performed
Cons:
-
Besides Bitcoin, Litecoin, Dogecoin, Filecoin and ZCash, most of the
cryptocurrencies sold are ERC-20 tokens restricted to the Ethereum
Blockchain
-
Initial account setup can be frustrating
If you are cryptocurrency investor in New York, using
Gemini should be a no brainer. The same exact services you get
in New York are exactly the same in any other state. I find the
service reasonably easy to use.
The selection of Cryptocurrencies are
largely high quality cryptocurrencies, however most of the
cryptocurrencies are ERC-20 tokens native to the Ethereum platform.
There is a reason for this. The founders of the exchange, Cameron
Winklevoss and Tyler Winklevoss, have noted three major
reasons;
-
The Ethereum Ecosystem represents 95% of the cryptocurrency
market
-
Other Cryptocurrencies are still in development for their own
ecosystems
-
ETH2.0, it's proof of stake model, is coming out very shortly which
could leave other ecosystems in the dust.
Pound for pound, if I had to choose to
buy crypto from two competing exchanges, I mainly buy them on
Gemini. I only use other exchanges because they will have
cryptocurrencies not available on Gemini.
You definitely need to keep on top of how your
account is setup. The Gemini exchange has a heavy focus on
security. If you ever decide to withdraw your cryptocurrencies
from the exchange, you will need to have a list of whitelisted addresses
on where you want to send your cryptocurrencies. So there are
"no accidental" sent cryptocurrencies from one address to another.
Another fantastic service they offer is Gemini Earn, a
crypto lending program that offers in-kind yield on your crypto. If
you are looking to get more of the cryptocurrencies you love, Gemini Earn
is a great way to gain more crypto while waiting. Think of it like a
bank that pays interest.
A problem with using other Crypto Exchanges in New York
is the differential services they provide New York Customers. This
shouldn't be too much of a deal breaker but it does require a little
extra leg work when researching crypto. Another leading exchange
in New York, coinbase, provides services in other states that is NOT
provided in New York. That means you always need to be watching
out for those pesky asterisks that say "*Not Available in New
York." Because of the Bitlicense Laws, you sometimes feel like you
are in a different country all together.
There are times when the cryptocurrencies are becoming
very active, with people either trying to dump their cryptocurrencies
or buy the dip. It isn't unusual for servers to become
overwhelmed with market orders and not be able to execute market
orders. Among the largest Exchanges, Gemini is able to
handle that volume load.
The only serious complaint I have is the double edge
security protocols. It is great the exchange puts a premium on
the security of their funds. If you are going to withdraw
cryptocurrencies from Gemini, make sure you have all your
cryptocurrency addresses in check. Gemini requires you have a
"whitelisting" of addresses before you make any withdrawals and
takes 7 days before you are allowed to withdraw your crypto to that
white listed address. It can be a bad predicament when you
consider how fast the crypto markets act.
- Emphasis on Security
- Offers Yield on Cryptocurrencies
- Mostly Sells High Quality Cryptocurrencies
- Large Selection of Cryptocurrencies
- Offers Trading Platform
- Pays for transaction fees to withdraw cryptocurrencies from exchange
- Works and operates the same in New York as it does in any other state
- Servers tends to operate when a high volume of trades are being performed
- Besides Bitcoin, Litecoin, Dogecoin, Filecoin and ZCash, most of the cryptocurrencies sold are ERC-20 tokens restricted to the Ethereum Blockchain
- Initial account setup can be frustrating
- The Ethereum Ecosystem represents 95% of the cryptocurrency market
- Other Cryptocurrencies are still in development for their own ecosystems
- ETH2.0, it's proof of stake model, is coming out very shortly which could leave other ecosystems in the dust.
COINBASE
-
Very Easy to Use
-
Get Free Crypto with the Coinbase Earn program
-
Earn Interest on some cryptocurrencies
-
Large selection of cryptocurrencies
-
Supports multiple smart contract platform
-
Provided additional market information, news and data on
cryptocurrencies, including ones not sold on Coinbase
- Very Easy to Use
- Get Free Crypto with the Coinbase Earn program
- Earn Interest on some cryptocurrencies
- Large selection of cryptocurrencies
- Supports multiple smart contract platform
- Provided additional market information, news and data on cryptocurrencies, including ones not sold on Coinbase
Cons:
-
Security isn't a default feature, you must set it up
-
Services and Cryptocurrencies provided in other states are not
provided in New York
-
Some cryptocurrencies offered are not high grade
cryptocurrencies
- Security isn't a default feature, you must set it up
- Services and Cryptocurrencies provided in other states are not provided in New York
- Some cryptocurrencies offered are not high grade cryptocurrencies
Between Gemini and Coinbase, having accounts with these two as New Yorkers is a must. This will give you the largest array of selection of cryptocurrencies to use. Nearly all other
cryptocurrency exchanges available in New York can easily be ignored.
One major caveat about Coinbase in my opinion is coin selection. Gemini tends to choose more quality projects to sell to clients. When buying cryptocurrenies from Gemini, projects are better curated. Coinbase is much more agnostic in their offerings. They’ll go as far as sell coins like Ethereum Classic which has been dead in the water for years. You definitely need to do more due diligence when buying cryptocurrencies on coinbase. Coinbase also has a service called “Coinbase Earn”, which educates the public on the cryptocurrencies they offer on their platform. It isn’t all that much, about $3 for a cryptocurrency, but it is a good way to catch some of the developments going on in crypto as a whole. And hey, free stuff is free stuff. public on the cryptocurrencies they offer on their platform. It isn’t all that much, about $3 for a cryptocurrency, but it is a good way to catch some of the developments going on in crypto as a whole. And hey, free stuff is free stuff.
Another nice feature is the information feed on coinbase. You can do research and gather data on coinbase about cryptocurrencies that aren’t even sold on coinbase. I wouldn’t call it the best place to do research but it is worth checking out. Like Gemini, you can earn yield on your cryptocurrencies. It isn’t really worth stressing on about given that Gemini’s Earn program is superior to Coinbase’s interest earning program. However, Coinbase does offer an interesting collateral loan model. You can actually borrow money against your Bitcoin as collateral.
One thing you have to be careful about coinbase is security. Gemini requires a lot of security demands for their clients to make sure funds are safe with things like 2FA and whitelisted cryptocurrency wallets. With coinbase, you need to make sure you have all the security is setup for your account. Without a proper setup, anybody with your account information can easily steal money from you.
Substitution Exchanges
The whole purpose of mentioning these additional exchanges is for two purposes:- To have alternative ways to buy and sell cryptocurrencies just in case coinbase or gemini shuts down.
- To reveal additional options in case you don't like Gemini or Coinbase for whatever reason.
BITSTAMP
Pros:
- Inexpensive Fees
-
Fairly Large Selection of Cryptocurrencies
- Easy to Use
Cons:
-
Simply Not as good as Gemini and Coinbase
-
Crypto withdrawal fees
I have nothing bad to say about Bitstamp. Most of the cryptocurrencies they sell are solid projects. However, just about everything they offer can be found on Coinbase and
Gemini. It is one of the oldest surviving cryptocurrency exchanges in the world. When you know the history of cryptocurrency exchanges, you’ll know that is quite a feat. It is better thought of as a slimmer version of Gemini or Coinbase.
BITFLYER
Pros:
- Fee Free Trading
Cons:
-
Small Selection of Cryptocurrencies to Buy
-
Crypto Withdrawal fees
This exchange is ideal for people looking to do day trades. Some people have ZERO interest in acquiring more cryptocurrencies and have an interest in acquiring more Dollars. I have the goal of actually acquiring more Cryptocurrencies. So why is this exchange great for day traders? Their standard exchange allows you to buy cryptocurrencies for free. There might be a spread on which they make their money on but nonetheless, there is no fee. There is an instantaneous spot trade cost which is significantly lower than any other exchange.
itBit (paxos)
Pros:
-
Best OTC Market in Crypto
Cons:
-
Extremely Sparse Selection of Cryptocurrencies
The itBit exchange itself isn’t all that great for retail customers. Most of their business is related to their OTC offerings. I think what the company does is great. They created a synthetic digital gold asset that can be used on the blockchain and be redeemed from the London Metal Exchange. The Stablecoin they created is top notch as well. But as an
exchange, it doesn’t have much to offer. itBit is mainly used to offer other companies an API to buy and sell cryptocurrencies, such as paypal.
ErisX
Pros:
-
Service includes integrated algo trading service
Cons:
-
Scarce selection of Cryptocurrencies
This is another trader platform for cryptocurrency. You’re better off using Bitflyer instead of ErisX for trading. However, the one advantage of this platform is it’s algo trading platform. But if you are interested in an Algo service, you ought look into the Cultivate Crypto Algo Service by Charlie.
Bitcoin only vendors
There are places to buy only Bitcoin. As an exchange, it really isn’t worth it. However, let us assume you need some cash immediately. Under other exchanges, you first need to sell your crypto, then wait 5 to 7 days to go through an ACH, then you get the money in your bank account. In this system, you can get it immediately.
The cash app is an interesting place. You can use it to buy stocks, Bitcoin, use it as a bank account. The only reason to use the Cash App is as another way to get money in and out of crypto. Maybe you want a seamless way of taking dividends from stocks to buy more crypto.
LibertyX and Coinsource
Substitution Exchanges
- To have alternative ways to buy and sell cryptocurrencies just in case coinbase or gemini shuts down.
- To reveal additional options in case you don't like Gemini or Coinbase for whatever reason.
BITSTAMP
Pros:
- Inexpensive Fees
- Fairly Large Selection of Cryptocurrencies
- Easy to Use
Cons:
- Simply Not as good as Gemini and Coinbase
- Crypto withdrawal fees
BITFLYER
Pros:
- Fee Free Trading
Cons:
- Small Selection of Cryptocurrencies to Buy
- Crypto Withdrawal fees
itBit (paxos)
Pros:
- Best OTC Market in Crypto
Cons:
- Extremely Sparse Selection of Cryptocurrencies
ErisX
Pros:
- Service includes integrated algo trading service
Cons:
- Scarce selection of Cryptocurrencies
This is another trader platform for cryptocurrency. You’re better off using Bitflyer instead of ErisX for trading. However, the one advantage of this platform is it’s algo trading platform. But if you are interested in an Algo service, you ought look into the Cultivate Crypto Algo Service by Charlie.
There are places to buy only Bitcoin. As an exchange, it really isn’t worth it. However, let us assume you need some cash immediately. Under other exchanges, you first need to sell your crypto, then wait 5 to 7 days to go through an ACH, then you get the money in your bank account. In this system, you can get it immediately.
LibertyX and Coinsource
They are basically Bitcoin vending machines. You can turn your physical cash into Bitcoin or turn your Bitcoin into cash immediately. Great Idea to own a Bitcoin Vending machine if you own a strip club and have clients who need to chuck dollars at dancers.
Terrible Exchanges
These places are terrible places to purchase cryptocurrencies. Why? As it stands of writing this, you can’t gain personal custody or control of it. Likewise, there are already better alternatives available. None the less, I’ll list them.
I’ll admit, I actually used Robinhood to buy my first Ethereum and Litecoin. I actually regret it. There are apparently plans to offer ways to take crypto off of Robinhood but there are conditions being tied to it.
The reality about cryptocurrencies on paypal is the fact that it ties itself to the itBit (Paxos) exchange. You’re basically using the itBit exchange without being able to make a withdrawal from it. Just use itBit.
Believe it or not, they offer a fairly good selection of cryptocurrencies. It just happens to be a poor place to buy them because You cannot withdraw them from the exchange.
At this point, what did you expect?
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Believe it or not, they offer a fairly good selection of cryptocurrencies. It just happens to be a poor place to buy them because You cannot withdraw them from the exchange.
At this point, what did you expect?
Did you find this article to be informative and helpful? Please take the time to visit our donation page to show your support this blog.