Where to Buy Bitcoin Alabama

Overview of Alabama Bitcoin Exchanges

It is evident that Alabama is a favorable place for cryptocurrency trading, indicated by the Government’s desire to implement thorough policy via licensing and regulations for exchange operators.

The cryptocurrency exchanges that facilitate the transactions for residents of Alabama, unfortunately, are not necessarily onshore. There are some that are offshore, and therefore do not adhere to the same strict compliance rules as the Alabama State laws.

As an Alabama trader and investor, you need to be aware that not all exchanges are honest and can be trusted. Therefore, do NOT simply pick one. Choose carefully, because each exchange will charge different fees, will require different levels of Know Your Client (KYC) information, offer various pairings, and of course have different levels of safety and security.

We regard the following attributes to be considered when deciding upon a cryptocurrency exchange to use. Of course, there are many other aspects, however, we highlight the most important ones:

🔒 Safety and Security

Since cryptocurrency is a digital, intangible currency, traders have to be 100% sure that their money as well as personal information is in “safe hands”. Exchanges are the targets of cyber attacks and hacks or are used as scams, Ponzi schemes, or pump and dump vehicles by unscrupulous operators.

The top exchanges should have two-factor authentication (2FA) that require users to confirm their identity. They should also have cold storage of funds, such that there is no online connectivity reducing the risk of hacks.

Lastly, the best exchanges now purchase insurance to protect against theft. Should funds be stolen, the insurance company will pay a claim to the exchange to compensate, which then should forward any lost funds to the users.

We rank exchanges with insurance policies higher than those without.

📞 Customer Support

Not every trader is informed enough to start investing on his/her own. Even, every platform operates on a different ground, which requires help from the experts. This is where customer support comes in, with its 24/7 availability and presence of knowledgeable representatives. No platform can prove their professionalism and legitimacy until their customer service is good.

💳 Payment Methods

One of the important things that an exchange asks, right after signing up, is the payment method that customers will use to deposit or withdraw money. While there are a number of payment options, like debit/credit card (Visa or Mastercard), Skrill/PayPal, Instant debit etc, customers are required to analyze the volume of their trading and choose an appropriate payment method accordingly.

🪙 Cryptocurrency Selection

In deciding up an exchange to use, you of course need to make sure that the exchange that you sign up to, offers the cryptocurrency and fiat currency that you want to trade in.

Tip – some exchanges only deal with cryptocurrencies, whilst others allow for fiat and cryptocurrencies. If you are starting out, and you have no cryptocurrencies at hand, then you need to find an exchange that at the very least accepts your fiat currency as a deposit.

🏷 Coupons and Discounts

Most of the Alabama cryptocurrency exchanges use discounts and coupon codes to market themselves and cater attention of more and more traders. They convince traders to sign up to their platforms and enjoy significant reductions at the time of making transactions. In addition some also offer discounts when they refer a friend or make a specific amount of credit in the account.

Be careful when receiving emails touting great discounts or rewards when signing up. Often marketing of these incentives are pushed through email and various social media outlets. Do NOT subscribe or sign up to any of these marketing schemes. They are more often than not scams.

💰 Fees

Every exchange charges their users differently. This makes comparing exchanges extremely difficult when simply looking at their fees. There is no standardization, but the most common method of fee calculation is via taking a small percentage of the amount traded.

Usually, the commission is less than 1% per transaction, but reduces if trading volumes significantly increase. Also, be aware that deposits and withdrawals may also incur fees. These aren’t imposed upon by the exchange, but rather the payment provider. The exchange, however, may seek to pass on these fees to the user.

⚙️ Platform Reliability

This feature of a cryptocurrency exchange is the key to keeping the traders at one place. From outages to break down of servers, malware attacks and thefts, an exchange is prone to facing any type of problem that could happen to a website. It is, therefore, necessary for the crypto-exchange to strengthen its system, in terms of platform protection and ability to resist attacks, so that traders can stay with it for a longer time period.

📈 Liquidity

Without good liquidity it is hard to be able to sell, liquidate the earnings (or losses). It is important to have liquidity, if not then it could become a problem. Liquidity comes and goes. This is the same for any tradeable asset, like stocks. Trading in stock volumes increase and decrease seasonal and also broadly in alignment with how well the economy is performing.

A low volume exchange has risks that are two fold. One, you will need to bide your time in order to sell for the right price. Low volumes will make this difficult, and especially if you urgently need to sell this could cause you to lose some of your profits. Secondly, a low volume exchange is prone to market maniuplation. The larger holders of the coin, could possible move the market, but it more than likely causes volume voliatity on the exchange.

Top-rated Cryptocurrency Exchanges in Alabama: A Comprehensive Review

When it comes to Alabama Bitcoin exchanges, there are a plethora of options available – too many to thoroughly review them all. Unfortunately, many of these exchanges are fraudulent and use the names of popular figures to trick unsuspecting investors into investing their funds into these scam sites.

That being said, we have taken the time to review a select few of the most reputable and trustworthy cryptocurrency exchanges available in Alabama.

Coinbase Pro

Coinbase Pro is renowned for being the world’s largest Bitcoin broker, attracting a rapidly increasing number of traders worldwide. Its user-friendly interface has made it the go-to platform for buying cryptocurrencies, especially Bitcoins. Coinbase Pro’s services in Alabama and other US states are exceptional, boasting high liquidity rates and broad buying limits. Its ‘Instant Buy’ feature enables traders to invest using their debit cards, making transactions quick and straightforward.

While Coinbase’s system reliability is generally reliable, traders have occasionally experienced issues. In one instance on October 26, 2021, the portfolio reporting tool was down for 10 minutes. Customer service is currently self-service, which may be a downside for some users.

Coinbase offers a physical Bitcoin Debit Card that users can opt to receive. However, this is not recommended for users holding large amounts of cryptocurrency, as virtual cards with top security encryption are safer. Hackers tend to target crypto cards due to the high value held in them.

Coinbase is a publicly listed company, offering additional security to users. It meets regulatory and licensing requirements mandatory by Federal and State departments, making it a secure platform.

Although Coinbase’s fees are higher than Coinbase Pro, it is an excellent option for beginners. The platform offers numerous educational videos, making it a great starting point for new traders. Coinbase Pro processes settlements slower, making it less suitable for day traders experiencing liquidity issues or exchange rate fluctuations during settlement.

Coinmama

The next crypto-exchange actively working in Alabama is Coinmama that enables traders to invest or acquire bitcoins from anywhere across the world. Their trading fees ranges between 4.9% and 5.9% on each purchase as per the volume. Traders from Europe can use SEPA transfer at a lower fee to invest their money on cryptocurrencies. Also, there are high limits on making purchases with credit cards as Coinmama has proved themselves as a trusted and reliable broker.

Etoro

Etoro is another crypto-exchange that has proven themselves as one of the best platforms to invest. Since 2007, the platform has been democratizing traditional money management with the aim to let every trader get access to the financial market. Today, the Etoro US platform operates only on cryptocurrency trading while they are already working on additional asset classes to bring traders’ experience to the next level. There is a diverse selection of financial markets while their user-friendly interface and incredible customer service is what actually brings the difference. Though, the downside of using Etoro is that traders can only make withdrawals in the form of fiat currencies.

CEX.IO

CEX.IO is a top-notch cryptocurrency exchange that offers a wide range of services to its global users. It has become the go-to choice for millions of people who wish to invest in cryptocurrencies. One of the standout features of CEX.IO is its ability to facilitate the purchase of Bitcoin using debit or credit cards, making it easier for users to get started with their investments. However, for those who prefer other payment options, CEX.IO offers seamless integration with various payment methods.

The exchange’s customer service team is available 24/7, providing prompt and effective solutions to users’ queries and issues. With a proven track record of platform reliability and stability, users can have peace of mind knowing their investments are in safe hands.

One of the most significant advantages of CEX.IO is its low fees, making it a cost-effective option for users looking to invest in cryptocurrencies. Furthermore, the exchange is accessible to people from all over the world, eliminating any barriers to entry. This inclusivity enables users to invest in cryptocurrencies of their choice, regardless of their location. Overall, CEX.IO is a reliable, user-friendly, and accessible platform that offers a broad range of services to its users.

Kraken

Kraken is a well-regarded cryptocurrency exchange based in Alabama that has earned worldwide recognition due to its remarkable liquidity and high trading volumes, making it possible to fund transactions through both bank transfers and wire transfers. One of the most attractive features of Kraken Pro is its real-time trading options, supported by advanced charting tools, which encourage investors to participate in the market. Additionally, the platform’s tiered verification system ensures a smooth user experience, while the reasonable fees charged have helped Kraken secure a reputable position in the cryptocurrency industry. Thanks to its robust features, Kraken is a popular choice among cryptocurrency enthusiasts looking to buy and sell digital assets securely and conveniently.

Gemini

Alabama residents interested in buying Bitcoin can benefit from using Gemini as their cryptocurrency exchange. Gemini is a highly reputable and regulated platform that has earned a great reputation for being a safe and trustworthy platform for buying, selling, and trading cryptocurrencies. Gemini offers a user-friendly interface, advanced security measures, and a highly responsive customer support team. Additionally, Gemini offers competitive pricing and low fees, making it an attractive option for anyone looking to invest in Bitcoin or other cryptocurrencies. By choosing Gemini, Alabama residents can feel confident that they are working with a reliable and trustworthy exchange for all their cryptocurrency needs.

Popular Bitcoin ATMs in Alabama

• • Birmingham: The BP Gas Station located at 800 Dennison Ave SW, Birmingham, AL 3521
  • Mobile: The Shell Gas Station located at 2504 Government Blvd, Mobile, AL 36606
  • Huntsville: The Shell Gas Station located at 1424 Memorial Pkwy NW, Huntsville, AL 35801

Alabama Cryptocurrency Tax Ruling and Rates

As we all know, it is vital for residents of Alabama to be aware of the tax requirements as imposed by the Internal Revenue Services (IRS). The IRS is probably the strictest US department that enforces its policies among the taxpayers of the US. Due to the infancy of bitcoin and cryptocurrencies (and its evolving technology), tax rulings have been constantly changing. At present, bitcoin and other cryptocurrencies are considered to be “property”. It is not considered to be a fiat currency such as purchasing CAD, AUD or EUR etc. As a result, because the IRS defines cryptocurrencies as a property, the increase or decrease in value will lead to a “capital gain or loss”.

This means, for Alabama residents, you must declare your investments in bitcoin and cryptocurrencies, as if you had bought “property”. Any realized gains or losses most be disclosed, and the applicable tax calculations for property must be applied.

Bitcoin Cryptocurrency Laws and Legislation

An an early adopter to legislation and regulation, the popularity of bitcoin and cryptocurrency trading has taken the Alabama market by storm. And just like every other US State, more and more traders (especially mum and dad investors) are converting assets into a pool of cryptocurrencies with the target of bringing significant wealth to their funds. Most have a long term view of sustainable gains, whilst some traders leverage their positions through margin lending and have profited handsomely within a short time period. Cryptocurrencies are relatively new to the world (let alone Alabama), but fortunately Alabama is one of the many US States that have moved forward quickly to regulate the cryptocurrency industry, and provide great opportunities to its residents.

Bitcoin trading, mining and exchange in Alabama is performed under strict laws and regulations. These regulations were introduced almost immediately when bitcoin was created. This is a testament as to how quickly Alabama State was and continues to reform cryptocurrency laws.

Alabama has very strict State laws that require the mining of bitcoin and other currencies, plus the trading of currencies to be monitored and above board. The government introduced the Alabama Monetary Transmission Act (also referred to as Senate Bill 173) back in May 2017 with the aim to regulate the trading of cryptocurrencies. This Act grants the Alabama Securities Commission (the administrative authority) to review and audit the records of all licensees. As the official securities regulator, the Alabama Securities Commission has also worked jointly with the states of New Jersey and Texas and their department counterparts. Together they have formulated extensive guidelines that govern Initial Coin Offerings, the licensing and operations of cryptocurrency exchanges in any of the three states and the rules of investments. This has led towards an improved experience for industry participants. The Alabama Securities Commission has also teamed up with Federal Financial Departments to implement consistent safety and security policy that is applied nationally.

Lastly, Alabama has established several cryptocurrency investor advisory committees to assist with monitoring of risks and the potential theft associated with digital currency trading.

Please note that the Act precludes any financial institution, including government bodies, banks securities, fund managers, and other financial institutions that are already regulated under other State and Federal laws. In essence the Act is very much an extension of existing laws to cover cryptocurrency.

Bitcoin and Cryptocurrency Wallets

Some exchanges also offer wallets. It’s not necessary for a good exchange to offer a wallet to their clients, though it can be a nice to have for new investors. However, be aware that online wallets offered by exchanges are normally hot wallets. That is, these wallets are connected permanently to the internet. This can be quite risky to use a wallet that is controlled by the exchange and not by yourself.

Hence it’s not necessarily a good thing if an exchange offers a wallet, but it’s a nice to have, if you are looking for an exchange with their own wallet.

• Online Wallets: Every crypto-exchange has their own wallet where traders can store their coins or cryptocurrencies for as long as they want. However, there are two types of these wallets that traders have to decide about which wallet they want to use for their trading.
• Alabama Hot Wallets: Since the inception of bitcoins and other cryptocurrencies, wallets have been transformed and divided into two forms- desktop and online. Digital wallets are free and can hold any cryptocurrency that traders want. They enable them to get easy access to their cryptocurrencies via mobile devices. They are perfect for beginners who want something easy to start with.
• Alabama Cold Wallets: These specifically designed devices work as physical cryptocurrency storage that allow traders to bring their cryptos with them, no matter where they are going. Though, the only considerable thing is their expensive nature with limitations of storing certain cryptocurrencies for future use.

Minimum Legal Age

According to the US the Alabama Monetary Transmission Act, a trader must be at least 18 years old to start his/her digital trading experience.

Summary

The cryptocurrency world is limitless and unstoppable because every day brings something new to the investors. They always have something different to learn from what they already know. Alabama is one of those states that is taking new actions every day to ensure safety and security of the platform so that more and more traders can freely invest their money, no matter where they are located.

Residents of Alabama should choose wisely with cryptocurrency exchanges that they wish to sign up to. Our recommended list of exchanges, will help you in choosing the right one.

How to Lodge a Cryptocurrency Customer Complaint

If you have a customer complaint at a cryptocurrency exchange, please raise the issue with them first.

If unresolved, please contact the State Finance Department.

Alabama Securities Commission
401 Adams Avenue, Suite 280
Montgomery, AL 36104

https://asc.alabama.gov/complaints.aspx

Bordering States

Florida | Georgia | Mississippi |Tennessee