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Being guided on how to buy your first cryptocurrency is essential. But it can be overwhelming to know where to begin with so many options and rules available. However, if you’re an investor from Hawaii, here are your options for purchasing cryptocurrencies as well as Hawaii’s laws you must abide by.
In Hawaii, purchasing cryptocurrencies is simple if you know where to look. The state of Hawaii currently has strict cryptocurrency regulations, making it challenging for the majority of exchanges to obtain a license to operate there.
Additionally, the exchanges that are permitted to run are not as varied as the well-known exchanges that run in other parts of the world. The good news is that you can get everything you need from the authorized exchanges if all you want to do is invest in well-known coins like Bitcoin (BTC).
With these limitations in mind, let’s navigate how to buy cryptocurrency, like Bitcoin (BTC), in the state of Hawaii.
Hawaiian Customers Preferred Crypto Exchanges
- A large number of cryptocurrencies and trading pairs
- Beginner-friendly interface and easy purchase process
- Supports over 100 cryptocurrencies and crypto pairs
- Also offers advanced trading platforms in addition to its beginner-friendly platform
- Lower fees with Coinbase Pro
FUNDING METHODS
CRYPTOCURRENCIES
40+
COUNTRIES
100+
- Relatively lower fees in comparison to other exchanges
- Wide range of cryptocurrencies with over 300 different assets to choose on
- Advanced trading tools for advanced traders
- Crypto-to-crypto or fiat-to-crypto trading
FUNDING METHODS
CRYPTOCURRENCIES
175+
COUNTRIES
100+
- Supports over 250 crypto coins
- Wide variety of payment methods
- A Short verification process for fast trading
- Relatively low fees
FUNDING METHODS
Crypto, Credit Card, Bank Transfer, Debit Card
CRYPTOCURRENCIES
200+
COUNTRIES
80+
- In all operating jurisdictions, Kraken is fully licensed and able to operate legally, including the US and UK
- Industry-leading security
- All personal information, such as Know Your Customer protocol information is securely encrypted and stored
- A large range of cryptocurrencies to choose from
FUNDING METHODS
CRYPTOCURRENCIES
20+
COUNTRIES
300+
- It offers lower fees, maximum leverage, competitive trading conditions, and competitive trading fees
- Offers 100x leverage of up to 1:100
- Robust technical analysis tools and charting
- Trades can be executed instantly since the platform uses the latest liquidity resources
- Novel covesting feature and turbo trade
FUNDING METHODS
Crypto, Credit Card
CRYPTOCURRENCIES
7
- Relatively low trading fees which can reach a low of 0.075 per cent to a high of 0.195 per cent
- Offers 100x leverage of up to 1:100
- Offers a free trial for verified users
- Does not require users to verify their account using ID
FUNDING METHODS
Crypto
CRYPTOCURRENCIES
5
The best ways To Buy Crypto in Hawaii
In Hawaii, there are several ways to buy Bitcoin, including Bitcoin ATMs and, more importantly, state-approved crypto exchanges. Bitcoin ATMs/Tellers work similarly to a normal automated teller machine. This enables users to buy cryptocurrency with cash and vice versa in real-time.
There are currently 77 Bitcoin ATMs in operation throughout the state of Hawaii. You can view the complete details and map of each Bitcoin ATM on CoinATMradar.
As mentioned earlier, there are only certain crypto exchanges that are allowed to provide services to Hawaiian residents. Among the few are:
- Apex Crypto
- bitFlyer USA
- BlockFi Trading
- CEX.IO
- Cloud Nalu
- Coinme
- ErisX
- Flexa Network
- Gemini
- Novi Financials
- River Financial
- Robinhood Crypto
Step-by-Step Guide for Buying Crypto in Hawaii
To get started, just select a crypto exchange you think suits you based on the crypto services provided, transaction fees, security and more. Once you have decided, just follow the following instructions to buy cryptocurrency:
Register and verify your account with one of the state-licensed crypto exchanges listed above.
Deposit money to your exchange account or connect your bank account/ debit card/ e-wallet.
Go to the marketplace and find Bitcoin (BTC) or any cryptocurrency you want to buy.
Select it and click Buy.
Provide the needed information and confirm the transaction.
What is the History of Bitcoin in Hawaii
Hawaiian citizens have been able to purchase cryptocurrencies without restrictions since Bitcoin was first introduced to the internet in 2008 up until September 2016, when the state of Hawaii required cryptocurrency exchanges to operate under licenses.
The Hawaiian crypto market was less diverse and subject to more restrictions than the majority of the global market due to this restriction. And while purchasing Bitcoin is still legal in Hawaii, major exchanges like Coinbase have stopped providing crypto-related services to Hawaiian residents.
Are There Regulations Surrounding Crypto in Hawaii
Hawaii currently has a few very significant cryptocurrency laws that set the state’s crypto-operation apart from the rest of the world.
- For instance, the Digital Currency Innovation Lab (DCIL) of Hawaii currently has a money transmitting policy that only permits cryptocurrency exchanges to operate in their state if they can demonstrate that the crypto assets of their clientele are backed by actual cash.
For instance:
- If a Hawaiian investor has crypto assets worth $10,000.
- The crypto exchange company must also have $10,000 in fiat currency to support the client’s assets.
This policy caused major crypto exchanges like Coinbase to halt their operations in Hawaii due to this being more expensive than what it is worth.
With this policy, it is considered illegal for digital currency businesses without a DCIL-approved license, to operate and access Hawaii-based investors. Currently, there are only 12 crypto exchanges that are allowed to operate in Hawaii, which are:
- Apex Crypto
- bitFlyer USA
- BlockFi Trading
- CEX.IO
- Cloud Nalu
- Coinme
- ErisX
- Flexa Network
- Gemini
- Novi Financials
- River Financial
- Robinhood Crypto
Due to the continued growth of the involvement of Hawaiian investors in the crypto market and the ill-reputation of the state towards the cryptocurrency realms, Hawaii lawmakers are currently finding ways to appropriately regulate and monitor crypto exchanges to allow their state to become more friendly with the crypto market.
As of now, laws are still in place for consideration in their governing body. However, things are looking up as little by little the Hawaiian state unravels its restrictions in relation to crypto-services.
Is Bitcoin Popular in Hawaii?
Just like in the rest of the world, Bitcoin (BTC) is the leading cryptocurrency among Hawaiian investors. Currently, Hawaiian residents use Bitcoin to send and receive money without the use of a bank or any other financial institution.
Bitcoin is also used in some shops as a method of payment. Some cryptocurrency cards and Bitcoin ATMs can operate and be used in the state to alleviate the burden on its users.
Despite being a digital currency, Bitcoin has gradually embedded itself in the Hawaiian economy. It is expected that once the regulations become more lenient and crypto-friendly, massive growth in the crypto economy is expected.
What is the Cheapest Method to Buy Bitcoin in Hawaii?
The cheapest way to purchase Bitcoin (BTC) in Hawaii is through a crypto exchange that has the lowest possible transaction fees and good security. Among the 12 currently licensed crypto exchanges listed above, Gemini and bitFlyer are two of the popular exchanges that are trusted with great security and low fees. which are perfect for novice traders since they also have great user-friendly interfaces. The other exchanges are also worth checking, so take your time in looking into which exchange suits your taste more.
Frequently Asked Questions
Hawaiian policies in regards to the operation of crypto exchanges in their state made it difficult for major exchanges like Coinbase to continue their operation to Hawaiian residents.
This is also the reason why Hawaiian investors feel restricted and have fewer diverse options than the majority of the world.
Bitcoin, and any other cryptocurrencies, are not illegal to buy, trade, or sell in Hawaii as long as you use a state-licensed crypto exchange or in a Bitcoin ATM.
As a Hawaiian resident, you are also expected to follow the common regulations for investing in Bitcoin, such as paying and reporting taxes and earnings, as well as adhering to the laws of Anti-Money Laundering and more.