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Texas’ regulations are very simple in comparison to those of other states. In general, investing in cryptocurrencies in Texas is as free as a bird. Texas recognizes cryptocurrency as legal virtual currency, and so taxes and laws are placed on the cryptocurrencies in accordance with the Texas Virtual Currency Act. Most states have been against the legalization of cryptocurrencies, and Texas is most definitely not one of them.
Texas’ cryptocurrency laws and regulations make it easier for anyone to begin investing in the state. However, getting started in crypto, in general, isn’t easy for every novice, so if you’re a Texan interested in investing in bitcoin, this guide may help you along the way.
Preferred Ways to Buy Crypto for Texan Customers
Can I Legally Buy Cryptocurrency in Texas?
Since the burgeoning economics of cryptocurrencies, most countries, including US states, have had varying perspectives on the legality of cryptocurrencies. Some countries implemented laws prohibiting residents from purchasing or trading cryptocurrencies, while others welcomed it.
Texas is one of these states, having enacted two bills that include cryptocurrencies as part of one’s business or investment.
The Texas House Bills 4474 (Virtual Currency Act) and 1576 allowed the usage of bitcoin and blockchain technology in the state. Though both bills address separate aspects, they both contribute to the legalization of cryptocurrencies:
- House Bill 1576 would create a blockchain that would be applicable to the state of Texas.
- House Bill 4474 would allow investors to participate in large investments while also defining “virtual money,” which would cater to the security interests of cryptocurrencies.
To summarize, purchasing and selling cryptocurrencies within the state is totally legal and easy to do without worry of having your funds confiscated by the authorities.
The Easiest Way to Buy Cryptocurrency in Texas
In Texas, there are several ways to obtain cryptocurrency funds, including through an exchange or a Bitcoin ATM. Bitcoin ATMs, despite their name, are not traditional ATMs that process physical money, but rather kiosks that allow customers to buy cryptocurrencies in exchange for fiat money, and vice versa. There are currently over 4000 Bitcoin ATMs in Texas.
In Texas, cryptocurrency exchanges are not a problem because any exchange that supports the United States can be used. To begin, look for a cryptocurrency exchange that you believe will suit your needs, then follow these steps:
The first step is to Register and Verify an account in your chosen cryptocurrency exchange.
Then link a top-up method for your exchange then choose Deposit.
Select the cryptocurrency you wish to purchase then select Buy.
Provide the required information then execute your trade.
Bitcoin ATM may have more or less steps than the other but the norm is as follows:
Type in your phone number and another type of identity then confirm it.
In your cryptocurrency wallet, open up the Deposit, then make a QR code and scan it into the machine. The machine then confirms your wallet’s information with a pop-up on its dedicated monitor, once done, proceed to the next step.
Insert how much your cryptocurrency is worth into the machine.
Confirm the amount and execute the transaction.
The bought cryptocurrency will then be reflected to your cryptocurrency wallet. This takes a few minutes, but if it fails to reflect, seek out customer support.
Hacks and Crypto Scams to look out for in Texas
In February 2022, a Bitcoin fraudster was caught for duping elderly individuals into paying fines of up to $300,000 in Bitcoins. This type of scam is one of the older scams, which just plays a victim’s mind into believing false claims. But beware, this is not the only scam to be wary of.
This is not the only scam that involves cryptocurrencies. Newer scams include rug-pulling a cryptocurrency economy – which means de-valuing a token or an exchange that will take a customer’s money. But fortunately, with the state government working with different sectors of cryptocurrency, incidents like this will be less frequent and are often caught immediately.
Does Gemini Operate in Texas?
Gemini is a user-friendly crypto exchange that caters for both beginners and experienced traders alike. Gemini boasts its high-security hot wallet, as well as its comprehensive support centre, Gemini is one of the best starting cryptocurrency exchanges.
Fortunately for Texans and all US citizens alike, Gemini offers full support to them, so they can buy, sell, and trade cryptocurrencies for any kind of lawful activity.
Does Kraken Operate in Texas?
Texas allows Kraken transactions within the State. Texans can freely buy, sell, and trade cryptocurrencies with Kraken without any restriction. Kraken offers high rates for staking while keeping low fees, as well as having a futures market.
However, due to more advanced features, it might be hard to navigate for beginners as their starting exchange.
Does Coinmama Operate in Texas?
Coinmama is a simple cryptocurrency exchange that caters mostly to beginner traders. Due to its convenience, it has relatively high fees but with less advanced features for more advanced traders.
Texans have full access to any of Coinmama’s features for any kind of lawful activity.
Do Any Texas Banks Support Bitcoin Wallets?
Currently, no Texan banks offer cryptocurrency wallets and exchanges, but you can trade with the said banks via third-party exchanges, such as Gemini, Kraken, and Coinmama.
Frequently Asked Questions
Being the second largest cryptocurrency coin in terms of market cap, Ethereum is eligible to be bought in almost all of the countries where cryptocurrency is legal, this includes Texas. Texans can freely buy Ethereum in almost all cryptocurrency exchanges as well as Bitcoin ATMs.