There are limited options when buying and selling bitcoin in Missouri. Licensed cryptocurrency exchanges are only a handful, and while there are bitcoin ATMs available, these charge very high fees. Other avenues of obtaining bitcoin include the exchange of goods and services and cryptocurrency mining.
A snapshot of Missouri Cryptocurrency Market:
- It is legal for residents of Missouri to buy and sell, and use financial instruments of cryptocurrencies
- Investors and traders must be at least 18 years old
- Cryptocurrency exchanges and financial product providers are to be licensed
- Peer to peer exchanges are not permitted
Learn which Missouri bitcoin exchanges are good, bad and to be avoided, how to buy bitcoin, bitcoin and cryptocurrency legislation and tax implications.
If you want to buy and sell bitcoin in Missouri, choose from our selected top exchanges.
Top 5 Missouri Bitcoin Exchanges
Overview of Missouri Bitcoin Exchanges
Missouri has relatively stricted and prohibitive cryptocurrency laws, which hinders several exchanges from obtaining a license. As a result, though there are many to choose from, only a handful of exchanges are licensed with the State.
This makes selecting an exchange that is appropriate for you, even more important. Choosing the wrong exchange, could eat up all your profits, or worse still, leave you with your account closed for unknown reasons.
Below we outline the important aspects and how they form a part of your consideration.
🔒 Safety and Security
Transparency, safety and security is important when considering buying bitcoin. Bitcoin is a digital currency, high in value that requires providing personal information to an exchange to trade. So not only do you want an exchange that protects your bitcoin, you also want one that can safeguard your personal information and your payment details. In the past, exchanges have been know to be scams, ponzi scheme and be hacked. Fortunately, with regulation and compliance requirements in Missouri, these risks are now minimal.
The safety and security risk that you should be considering is the layers of protection that an exchange gives to you personally. This will include Two-Factor Authentication (2FA), whereby you will need to verify your details with two methods. Other important safety features is the ability to whitelist trusted IP addresses, that you know only you will use to withdraw bitcoin. Some exchange will also offer online storage for you, to allow for the convenience of trading quickly. In doing so, the exchange should have insurance to protect them against stolen bitcoin via a hack.
Safety and security has improved greatly, but not to the extent that you should gloss over it. Consider the safety and security of each exchange, and balance it with how much you are going to invest with.
📞 Customer Support
Customer Support should not be overlooked. New users often think that buying and selling bitcoin is as simple as using eBay or Craigslist. It’s not. In just getting started and signing up to an exchange, though it usually is easy, you may need help with completing KYC requirements. KYC is needed by law to verify your identity and source of funds. This process is particularly onerous when creating a business acount. Even at times a personal account may take time.
Customer Support is therefore important to help you through any issues or questions that you may have. Having Customer Support at 24/7, accessible, prompt and meaningful is a breath of fresh air. Unfortunately, good customer support is often a trade off with low fees.
💰 Fees
Considering trading fees is vital when buying bitcoin. Percentages may appear to be insignificant, starting from 0.4% to 5%. Sounds small, but when you are buying bitcoin in the thousands, or even in the hundreds, these fees will add up and eat into your profits. Compare the fees from exchange to exchange, but in doing so it can be difficult. Each exchange has its own fee structure and it will be tiered. Each tier has a percentage fee charge that will decrease as more volume is traded. The tiers are not consistent across each exchange, and may even vary between deposit and withdrawal methods.
Fees may also be charge when making a deposit or withdrawal. These fees are “on top” of the trading fees. Merchant providers, that facilitate deposits and withdrawals will charge the exchange, which may pass on the charge to you.
Unfortunately, some exchanges are not transparent with their fee structure. For example eToro touts “zero” trading fees. While this is true, their spreads are deliberately wide to allow them to capture their fees. There are not many exchanges that behave in this manner, but be on the look out for them.
💳 Payment Methods
Attached to fees are the payment methods. Payment methods can be free or incurr a charge through a merchant provider. However, not all exchanges will offer the same payment methods. Some are limited to only wire transfers and ACH, will some will extend to debit and credit cards (with limits) and to also PayPal, ApplePay and other e-wallets.
Processing times varying between exchanges and can extend up to 3 business days for withdrawals.
🪙 Cryptocurrency Selection
When getting started with buying bitcoin, you will need to make a deposit in USD or any fiat currency that is accepted. You can also deposit with other cryptocurrencies if the exchange accepts it. Exchanges will be limited with the number of fiat and cryptocurrencies that they can support. Logistically and operationally it can be burdensome, hence some exchange simply cannot support a large range.
A limited range of support cryptocurrencies is not a problem if your investment strategy is trading with a small amount and confined to a handful of crypto. On the other hand, if you intend to invest significantly, consider an exchange with a wider range of supported cryptocurrencies.
🏷 Coupons and Discounts
You will find that exchanges will coupons that can be found various websites as a form of marketing. Coupons can be used to claim a trading discount of up to $50. It’s not huge but it’s something. Referral fees are another way of rewarding you for promoting the exchange. When you refer your friends to the exchange, you can earn a percentage of the volume that your friend trades. Each exchange has different referral programs.
Tip – Beaware that emails will be received from unsolicited exchanges pushing discounts and coupons onto you. These emails too often are scams and may even contain malware. Though there is a possibility that they might be legitimate, don’t take the risk. Don’t reply to them, immediately delete and block them.
⚙️ Platform Reliability
The last thing any trader wants is down time of the exchange. It is unavoidable that an exchange will need maintenance. Upgrades and fixes of bugs, better controls is a constant improving process for exchanges, with most exchanges performing down time during lower trading times. Sometimes, however, an exchange will need more downtime to fix bigger issues. This is where it is important to choose an exchange that has great IT support, is professional with customer service, and does not hinder your trading strategy. It may be that you are a bitcoin buy and hold person, hence platform reliability will play less of a factor. But for those who seek to trade often and regularly, consider an exchange that is a global player, with backing to ensure that the exchange is operation smoothly.
📈 Liquidity
Liquidity is important to facilitate buying and selling of bitcoin quickly. The more users on an exchange that is willing to buy and sell, the more liquidity there is. High liquidity often translates to better spreads and a more accurate result of exchange pricing. It’s not always the case, but it is better than an exchange with low liquidity. Trading on an exchange with low liquidity may even be pointless. Without sufficient buyers and sellers, the buy and sell price of bitcoin may never be met.
Exchanges with scale and a large customer base, is therefore more attractive to sign up to. But this needs to be balanced against the other apsects that we have mentioned.
Missouri Bitcoin Exchange Reviews
Missouri is spoilt for choice when it comes to seleting a bitcoin exchange. Nearly every exchange (excluding peer to peer exchanges) are able to offer their services in the state. In addition, exchanges are also able to supplement the buying and selling of bitcoin with other financial products.
We have chosen a select few cryptocurrency exchanges to review.
Binance.US
Binance.US has had difficulty in obtain a license in some states, but not in Missouri! Prior to the entrance of FTX.US, Binance.US had the lowest trading fees and narrowest margins to give Missouri the best value for money. However, FTX.US is pipping Binance.US ever so slightly. To be honest, the difference isn’t great between the two in trading fees, but the award for the lowest currently goes to FTX.US.
Binance.US is an efficient and well run exchange, demonstrated through its sign up process. Personal account are processed extraordinarily fast, with KYC requires quite easy to complete. Business acounts take a little longer and can hit the occassional hurdle, depending on how complex the business structure is.
Supported cryptocurrencies aren’t as many as others, but they offer the major coins. If looking for a less traded coin, you may need to look elsewhere.
Safety and security is paramount at Binance.US. It operates in the US with a large amount of oversight and scrutiny, perhaps unfairly with its relation to Binance. Nevertheless the protection offered by Binance.US is top quality.
Mobility is met with both iOS and Android apps. These apps have less features than the online exchange, but is sufficient to trade when on the run.
Binance.US maybe losing ground to Crypto.com and FTX.US (whom are spending big on marketing), but it is still are very good platform to use. It’s fees are low and liquidity is high to have good value for money.
- Money Transmitter License: MO-21-8764
- Cryptocurrencies: 64
- Mobile App: iOS and Android
- Fees: 0.1% – 0.5%
- Payment Methods: Debit Card, ACH, Wire Transfer
BlockFi – AVOID
** Update Feb 2022 – Do NOT sign up to BlockFi. They have been issued a penalty by SEC and several US States for the issuing of unapproved bitcoin interest earning accounts.
BlockFi is a new exchange to the market, with its origins as been a bitcoin bank. It’s exchange is still developing and it not considering it is a new player. Aside from bitcoin, the number of other coins is limited. There is only one payment method (at the time of writing), and liquidity is relatively low.
Unlike other US States, BlockFi is able to offer Missouri residents deposting and lending bitcoin services. This is their bread and butter business with healthy returns on bitcoin deposits.
- Small Loan License: 367-20-8666
- Payment Methods: ACH
- Mobile App: iOS and Android
- Fees: embedded in the spread
CEX.IO
Established in 2013 in the UK, most of its customers are from Europe. Nevertheless, it has a good customer base in the US, and is only a handful of exchanges in Missouri that could be considered as global. There are over 100 cryptocurrencies that are supported, and has an excellent history of being transparent, trusted and reliable.
There are over 4 million customers, making CEX.IO one of the most liquid exchanges. Trading fees are not the lowest, but they aren’t the highest either. A great exchange for the sophisticated trader with real time charting and other analytics.
- Money Transmitter License: Not Licensed in MO
- 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
Coinbase Pro
We normally recommend Coinbase Pro as one of the best to choose from. But unfortunately, Coinbase is not a state licensed exchange. This does not mean they won’t accept you, but rather, you bear the risk if anything goes wrong.
That said, Coinbase is one of the most popular crpyptocurrency exchanges in the US. The liquidity it offers for bitcoin is very high, hence if you are searching for a quick buy and sell, it can’t get any faster than on Coinbase Pro. The fees are very reasonable, but not transparent due to the complex fee structure. Final fee charges will depend on various factors such as volume, frequency and deposit and withdrawal methods. But generally, Coinbase Pro has excellent low fees.
There is an “instant buy” facility, which is great for those who urgently need bitcoin, but beware that the fees for this is a lot higher than the standard fees charged.
Coinbase Pro is simple and easy to use and supports a massive range of cryptocurrencies and is operating in more than 30 countries. The customer support has sometime been found to be lacking. Low fee exchanges commonly don’t offer great support. Self service is the norm with a Knowledge Center with educational videos.
Coinbase offers a Bitcoin Debit Card that is widely accepted. We recommend to store the minimal amount of bitcoin on the card for security reasons and top it up regularly when you need to. This maybe inconvenient, but protection trumps inconvenience.
In summary, Coinbase Pro is excellent for beginners, it’s easier to use than Binance.US but fees slightly higher.
- Money Transmitter License: Not Licensed in MO
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
Coinmama
Coinmama is cryptocurrency exchange that is perfect for beginners. The platform isn’t overcrowded with other functionality, that is rarely used by a beginner, hence intuitive and simple to use. The fees however are slightly higher than the average reaching up to 5.9%. This isn’t great, but their customer service more than makes up for it. A huge selection of cryptocurrencies is available, to help diversify conveniently instead of transfer out and signing up to other exhanges.
Coinmama is a global exchange, has a good reputation of being transparent and trusted.
- Money Transmitter License: Third Party operated
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
Crypto.com (CDC)
You may have seen the Lebron James and Matt Damon advertisements marketing Crypto.com. And have also noticed that the Staples Center is now named Crypto.com. Crypto.com is making a huge push to become the market leader in Missouri, scaling up very quickly.
The are great perks when buying bitcoin via Crypto.com. Firstly, you get rewarded with their native coin CRO. The more you use Crpto.com the more coins you earn, which will grow in value as more customers join the exchange. Secondly, the Crypto.Com debit card is nothing to be sneezed at. Wanted to drive a Ferrari so that everyone can take notice, well you can do so with the Crypto.com card as well. The card is made of metal, and weighs a ton! But it is an effective way of promoting Crypto.com and gets people talking.
The card is accepted at many stores, and can convert bitcoin quickly to fiat when needed.
The trading fees are reasonable, at just a bit higher than Coinbase Pro, hence good value for money. The app is extremely reliable, perhaps the most reliable of apps on the market at the moment. Many users joke that the quickest way to fix a bug is to uninstall and reinstall the app, and then all issues are solved. If this is as hard as it gets, then Crypto.com is a winner.
- Money Transmitter License: Approved
- Cryptocurrencies: 96
- Mobile App: iOS and Android
- Fees: 0.5% – 4.5%
- Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer
Etoro
Etoro undoubtedly has one of the best trading platforms. It’s origins stem back to foreign currency, hence it’s almost seamless to also include cryptocurrencies. The natural first mover in the market advantage shines with an impeccable user experience that caters both the novice and experienced.
The downside is the lack of transparency in the fees. Though they declare they are a “zero” fee exchange, their spreads are much wider than others i.e. they clip a percentage through the spread margins. Although tecnically correct that they are zero fees, the intent leaves a lot to be desired.
- Money Transmitter License: Not Licensed in MO
- 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
If you want the cheapest exchange AND is licensed in the State then join FTX.US. They are (only just barely) the cheapest exchange for bitcoin buyers. Their user experience is also very good, with a platform that has been built from the ground up. Platform reliability, however is always an issue when building a brand new IT platform, but it is improving. Another downside, is that it only supports up to 20 cryptos, which is quite limited.
Along with Crypto.com it is shaking up the industry, with the heavy weight Tom Brady throwing his name behind it.
Choose FTX.US if you are looking for the cheapest exchange to use.
- Money Transmitter License: MO-22-9038
- Trading name: West Realm Shires Services Inc
- Cryptocurrencies: 20
- Mobile App: iOS and Android
- Fees: 0.4% – 5.0%
- Payment Methods: Wire, ACH, PayPal, e-wallets
Bitcoin ATMs
Just like normal banking ATMs you can find Bitcoin ATMs in Missouri. These offer the convenience of depositing in cash to buy bitcoin, and withdrawing bitcoin back into cash. Bitcoin ATMs usually require you to create an account online with the provider before using their ATM. Once an account has been created, you can then use the bitcoin ATM.
Beware that the fees incurred in using a Bitcoin ATM is significantly higher that an online cryptocurrency exchange. Think twice before using a Bitcoin ATM, because your profits will be offset with larger fees.
Missouri Cryptocurrency Tax Ruling and Rates
Before discussing Missouri taxes, please seek professional tax advice from a CPA or tax account. The below is general discussion points.
The IRS requires all US tax payers to declare any profit from trading bitcoin. There are very few ways of getting around this, however some have tried to sign up to exchanges that do not require KYC. This is not an option in Missouri, and though it’s understandable that everyone wants to reduce tax, and the end of the day it is unavoidable.
Tax rates are applied to any realized capital gains that occurs as a result of a taxable event. An event may include the selling of bitcoin, or using bitcoin to purchase a good or service. When a profit is realized the IRS expects tax to be paid on the gain. The tax rate is determined on whether the bitcoin has been held for at least one year or not. If under one year, the tax rate is at the individual tax rates. If over one year it is at the long term tax rate.
The IRS requires supporting documentation for bitcoin trading. Units, buy price and sell price are just some details, which can be obtain from an exchange. Some exchanges will even provide for a tax report that can be integrated into tax software.
Bitcoin Cryptocurrency Laws and Legislation
Even though in the House and Senate there has been a lot of dicussion with moving forward with bitcoin, blockchain and cryptocurrency development, in reality, there has been very little to show for.
Yes, the Money Transmission Act has been amended to reference Virtual Currencies, but it remain unclear how exchanges should be regulated.
As a result you will find that some exchanges have chosen to obtain a Missouri State license, while others do not, and yet continue to accept local residents.
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.
- Missouri 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.
- Missouri 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
The minimum legal age to buy and sell bitcoin in Missouri is 18 years old.
Summary
Missouri has confusing cryptocurrency laws, which has resulted with some exchanges obtaining a license, while others have not. Understanding the safety and security of each exchange that is or isn’t licensed is paramount when selecting an exchange.
There are many options to buy and sell, trade and utilize options and derivatives for bitcoin, but you must be careful with these products. Choosing an exchange requires assessing several factors which align with your investment strategy. After buying bitcoin, select a safe haven for storing your coins, it can either be on the exchange or on your own wallet. If you profit from buying and selling bitcoin, lawfully you are required to pay tax.
Buying and selling bitcoin is legal in Missouri, with the minimum legal age of 18 years old to sign up and trade at an exchange.
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 Division of Finance.
Missouri Division of Finance
Truman State Office Building
Room 630
Jefferson City, MO 65102
(573) 751-3242
(573) 751-9192 (fax)
https://finance.mo.gov/consumers/consumer_complaint.php
Bordering States
Arkansas | Iowa | Kansas | Kentucky | Nebraska | Oklahoma | Tennessee | Illinois
