You can buy and sell Bitcoin, if you are 18 years or older at a Connecticut licensed cryptocurrency exchange.
There are many State regulated exchanges to choose from in Connecticut. This is unlike other US States which have only just begun to define “virtual currency” and have yet to formally apply a governance framework.
A snapshot of Connecticut Cryptocurrency Market:
- It is legal for residents of Connecticut to trade in cryptocurrencies,
- Investors and traders must be at least 18 years old,
- The vast majority of exchanges must hold a Connecticut Money Transmitter License.
In this article, we explain which bitcoin exchanges to sign up to, how Connecticut legislation has developed to allow for bitcoin buying and selling, the interaction of Connecticut and Federal lawmakers, simple guides to help you with investing with crypto currencies.
If you intend to trade and invest in Bitcoin and Cryptocurrencies in Connecticut, then we highly recommend the following:
Top 5 Connecticut Bitcoin Exchanges
Overview of Connecticut Bitcoin Exchanges
When considering a cryptocurrency exchange, you should align several factors with your investment strategy. Considerations include safety and security, fees, liquidity, customer service and various other aspects.
🔒 Safety and Security
The first and foremost area to evaluate is the safety and security provisions of a cryptocurrency exchange. Since traders intend to provide their personal as well as confidential details (bank and credit/debit card details, address, cryptocurrency wallets etc.) to the exchange’s database, it should be backed by a strong and reliable security system. The exchange has to be efficient enough to deal with any type of malware or hacker’s attack.
📞 Customer Support
From a novice to a professional trader, everyone needs help/assistance in one way the other. Sometimes, they need someone to sign-up on the exchange or carry out transactions to ensure safety of their personal details. Also, the customer support has to be prompt, responsive, knowledgeable and most importantly, courteous to give respect to all clients, no matter how small or big they are. Their professionalism and legitimacy in answering questions is what wins the clients.
💳 Payment Methods
Many of the top Connecticut exchanges will offer the common US payments – ACH, wire transfers. Some will accept debit cards but with limits. Credit cards are much harder to come by, because many financial institutions will not facilitate it (even though it is lawful). Finally, there are very few that will also accept PayPal, Skill and Neteller.
The no frills exchanges may only accept one or two types of payment methods. This doesn’t necessarily mean that the exchange is bad, as long as you are willing to use the payment methods that they offer then there are no issues.
Payment methods are often sought by users for first and foremost Credit Cards. They want to use loyalty points on their cards to access greater rewards. The second most sought after payment methods, are the cheapest ones. Some payment methods will incurr a fee by the exchange which is passed onto the user. Each exchange will have a different fee for their payment methods that they offer.
🪙 Cryptocurrency Selection
Crypto selection is important for people who want to diversify their e-wallets and deal in fiat currencies. In other words, if you are planning to acquire Bitcoins against USD, then there is no need to worry about this element or vice versa. Like stock exchanges, the platforms should have a huge range of cryptocurrencies so that traders are able to make the decision which suits them the best. Whether they want to invest in bigger cryptos like Bitcoins, Ethereum, Ripple etc. or to play a safe game, a cryptocurrency exchange should have multiple options to choose from.
🏷 Coupons and Discounts
Cryptocurrency exchanges are rewarding users with referral fee commission and discounts for volume trading. Each exchange will have various terms and conditions, with the majority of exchanges limiting the commission derived from a referral to one or two years.
That said, depending on the investment strategy, it may not be an important factor, especially for those who low volume traders and just want to hold bitcoin for the long term.
On the other hand, some may find it rewarding to assess an exchange on the coupons and discounts, knowing that they will be trading frequently and can refer others to the exchange.
💰 Fees
There are two types of fees involved in cryptocurrency trading- payment fees and trading fees. The latter has been charges on the volume of cryptocurrencies being traded. The percentage usually decreases with the rise in volume. Which is why no exchange can be compared with the other.
⚙️ Platform Reliability
This point refers to an Exchange’s ability to remain functional even at the time of maintenance. The exchange should be protected against bugs so that it can run without hindrance.
📈 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.
Connecticut Bitcoin Exchange Reviews
Considering the above criteria, following is a review of several bitcoin exchanges for Connecticut.
Binance.US
Binance.US is one of the most popular exchanges in Connecticut.
One reason for Binance.US’s popularity is its low fees. The trading fees and narrow spreads are among the lowest which is attractive for regular buyer. Liquidity is probably the highest, so you will not find any better exchange for a quick bitcoin buy.
Another reason that Binance.US is popular is its native coin BNB. Users are rewarded with BNB for using the exchange, and BNB itself can also be traded. Creating an extraordinarily worthwhile investment.
Lastly, personal accounts can be established and verified within an hour. A no hassles quick start for the buyer who is in a hurry.
In summary, Binance.US is a trustworthy exchange to use to buy bitcoin. The pro’s certainly outweigh the con’s and certainly exceeds in comparison to other exchanges.
- Money Transmitter License: MT-1906829
- Cryptocurrencies: 64
- Mobile App: iOS and Android
- Fees: 0.1% – 0.5%
- Payment Methods: Debit Card, ACH, Wire Transfer
Coinbase
Coinbase has two platforms, Coinbase and Coinbase Pro. You should always sign up to Coinbase Pro, even thought it is touted as the platform for experienced traders. Beginners can certainly still use it, it just takes a bit of time to get used to it. The advantage of using Coinbase Pro immediately, are the low trading fees, narrow spreads, and fast, quick bitcoin settlement.
In addition, Coinbase offers a buying bitcoin instantly with their debit card acceptance.
- Money Transmitter License: MT-1163082
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
Coinmama
Coinmama is the next worthwhile cryptocurrency exchange that works for its clients effortlessly. The best part is that it is available for everyone across the globe, which means that people from anywhere can easily invest or transact in digital currencies. Its transaction fees depend upon the volume of purchase; however, money can be paid through SEPA transfer at a lower fee. Another thing that makes Coinmama a good option is the highest limitation for dealing in bitcoins, especially while using credit cards. The exchange has proved itself a reliable and professional platform where traders can invest their money with ease.
- Money Transmitter License: N/A
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
CEX.IO
As a multifunctional cryptocurrency exchange, CEX.IO has been the choice of millions of people across the world. It facilitates in the purchase of bitcoin with debit or credit card; though, if they want to use any other payment option, they can do that easily as well. Their customer service is active 24/7 with proven platform reliability and stability. The best thing about CEX.IO is its low fees and accessibility to people all over the world so that they can easily opt to invest in cryptocurrencies of their choice.
- Money Transmitter License: MT-1804170
- Cryptocurrencies: 100+
- Mobile App: iOS and Android
- Fees: 0.15% – 0.25% + deposit and withdrawal fees
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
Crypto.com (CDC)
Crypto.com is splashing out with marketing to become the biggest exchange in Connecticut. Joining forces with the well known basketball player Lebron James and the movie star Matt Damon, you will definitely see lots of promos. Crypto.com is now also the name of the LA sport stadium that used to be called the Staples Center.
Looking beyond its marketing campaign, Crypto.com is an exchange that offers many perks, and excellent trading experience. One of the perks is being rewarded with the native coin CRO. The more you use Crypto.com the more CRO you can earn.
CRO can also be traded, just like any other cryptocurrency. Hence, there is a lot of upside with trading on Crypto.com.
Crypto.com offers a fantastic debit card made of metal. It is widely accepted, but undoubtedly heavy. To be honest, it is very gimmicky, and could be a good talking point at a party, but it still is just a debit card, i.e. the functionality is the same as any other.
The app is sturdy, robust and mostly glitch free. If there are any issues, users have found by simply uninstalling and reinstalling the app, it begins to work smoothly again. Trading fees are among the lowest, though spreads are just ok. As Crypto.com grows, we expect to see better spreads.
- Money Transmitter License: N/A
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
eToro
eToro is on the mission to democratize money management to open doors of financial market for everyone. Its US platform intends to bring in modern and advanced techniques and norms, while continuing to support cryptocurrency trading. Etoro lets traders to deposit funds through wire transfer, online bank transfer, bank card or e-wallet (Skrill, Neteller or PayPal), where the minimum deposit is $50. The best part of Etoro is that customers can withdraw funds whenever they want without having to pay the platform fees.
- Money Transmitter License: MT-1769299
- Cryptocurrencies: 27
- Mobile App: iOS and Android
- Fees: zero (but huge spreads making eToro more expensive than Binance.US and Coinbase).
- Payment Methods: Wire, ACH, PayPal, e-wallets
FTX.US
FTX.US is competing strongly against Crypto.com in terms of marketing. Partnering several NBA, NFL and MLB teams, it’s biggest drawcard is having Tom Brady as a shareholder and brand ambassador.
Strikingly, FTX.US is the lowest trading fee exchange (without any hidden cuts in the spread). This is certainly attracting many customers to its platform. Unfortunately, the support currencies is a little light at only 20.
Nevertheless, FTX.US is one of the best buy bitcoin exchanges available for Connecticut.
- Money Transmitter License: 1957771
- Cryptocurrencies: 20
- Mobile App: iOS and Android
- Fees: 0.4% – 5.0%
- Payment Methods: Wire, ACH, PayPal, e-wallets
Kraken
Kraken is not only a top rated crypto-exchange in Connecticut but has also managed to get into limelight of the world. It is because of their liquidity and volume that any bank or wire transfer can be the part of their funding method. Kraken Pro encourages investors to get themselves involved in real-time trading by using amazing charting tools. Their tiered verification and reasonable fees are two main factors as to why this platform has got a respectable position in the industry.
Gemini
Gemini has fast settlement, which is good if you are a day trader. Fast processing of ACH and wire transfers in only hours to one day then can immediately buy and sell bitcoin. Fees are reasonable.
Connecticut Cryptocurrency Tax Ruling and Rates
As we all know, it is vital for residents of Connecticut 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 Connecticut 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
The laws in Connecticut are very clear for cryptocurrency exchanges when operating in the State. There is no doubt that all exchanges must have a State Money Transmitter License. This is unlike the vast majority of other US States which have ambiguous laws, that remain outdated.
The State’s Money Transmission Act has been updated to include the defintion of “virtual currency”.
means any type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology. Virtual currency shall be construed to include digital units of exchange that:
(A) have a centralized repository or administrator;
(B) are decentralized and have no centralized repository or administrator; or
(C) may be created or obtained by computing or manufacturing effort. Virtual currency shall not be construed to include digital units that are used (i) solely within online gaming platforms with no market or application outside such gaming platforms, or (ii) exclusively as part of a consumer affinity or rewards program, and can be applied solely as payment for purchases with the issuer or other designated merchants, but cannot be converted into or redeemed for fiat currency.
This definition is comprehensive and includes centralized, decentralized and peer to peer exchanges. It also extends through to online gaming, reward tokens and exchange for goods and services.
Reference to the Connecticut Money Transmission Act can be found here: https://www.cga.ct.gov/current/pub/chap_668.htm#sec_36a-595
In providing clear guidance, the Department of Banking (Connecticut) has issued a Virtual Currency Money Transmission FAQs.
The FAQ addresses and defines a Virtual Currency Exchange, Bitcoin ATMs and Licensing requirements.
Reference to the FAQ can be found here: https://portal.ct.gov/DOB/Consumer-Credit-Licensing-Info/Consumer-Credit-Licensing-Information/Virtual-Currency-MTRA-FAQs
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.
- Connecticut 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.
- Connecticut 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
Connecticut laws allow for the minimum legal age of a buyer and seller of bitcoin to be 18 years old.
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. Connecticut 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 Connecticut 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 Connecticut Department of Banking.
Connecticut Department of Banking
260 Constitution Plaza
Hartford, CT 06103-1800
Telephone Direct: 860-240-8170
Toll-free: 1-800-831-7225, press option 2
Foreclosure Assistance Hotline: 1-877-472-8313
https://portal.ct.gov/DOB/Consumer/Consumer-Complaints/Money-Transmitter
