Where to Buy Bitcoin Michigan

There are many cryptocurrency exchanges that legally facilitate the buying and selling of Bitcoin in Michigan. However, the Michigan Money Transmitter Act remains outdated and does not specifically reference “Virtual Currencies”. This poses no risk to Michigan bitcoin buyers, but rather to cryptocurrency exchanges.

Having said that, Michigan Cryptocurrency Exchanges are required to be licensed with the State.

A snapshot of Michigan Cryptocurrency Market:

  • Buying and selling of bitcoin is legal by individuals
  • Cryptocurrency exchange are available in Michigan, most are legally licensed by the State
  • Michigan laws pertaining to cryptocurrencies remain unclear

Even though it is unclear on the legality of cryptocurrency exchanges operating in Michigan, as an individual (or as a business) you are lawfully allowed to buy and sell bitcoin. In addition to cryptocurrency exchanges, there are also other ways of acquiring bitcoin, such as exchange for goods and services, bitcoin ATMs.

In this article, we mainly focus on how to use an exchange to buy bitcoin. But we also review some of the more popular exchanges, the legality of buying and selling bitcoin, tax implications, wallets and include a FAQ.

Top 5 Michigan Bitcoin Exchanges

Overview of Michigan Bitcoin Exchanges

The best way to buy bitcoin in Michigan is through an exchange. An exchange will facilitate matching buyers and sellers. There are several ways that they do this, the most common being the direct buy and seller to you, then they buy and sell it to others. There are some exchanges that purely act as a buyer and seller matcher. These are known as peer to peer exchanges, and your transaction will be held in escrow to safeguard the transaction for both buyer and seller.

In selecting any exchange, you should consider several attributes. We outline these attributes and the importance of each.

🔒 Safety and Security

Cryptocurrencies have exceeded all expectations and have increased in tremendous value since they came to existence. And being intangible, unlike gold, the risk of attack, theft through hacking, and the ability to lose or steal large amounts at the click of a button is not to be underestimated. Though there is no full proof system, as a trader, you have to have the best controls and safeguards in place. You also have to be alert to ponzi schemes, scames and pump and dump behavior.

The best exchanges have improved their security tremendously since the early days, and can repel hack attacks. They can also be trusted, because they are licensed Federally and with the Michigan State. Trust is important in growing a new financial system, and Michigan State is slowly moving towards are mature compliance regulatory regime.

Exchanges now also provide for two-factor authentication (2FA). Two login and verification points to ensure that the person accessing is legitimate. On top of that, if you choose to store your bitcoin on the exchange wallet the risk of theft is protected with insurance.

📞 Customer Support

All sign up and new account creation, needs to go through a KYC (Know-Your-Client) process, mandatory by US law. Often the KYC process is very simple and fast – particularly for peronsal individual trading accounts. In the case of business accounts for companies, trusts and partnerships, the KYC is a lot more complicated. Customer Support and Service will come into play for setting up, hence it’s an attribute that should be considered.

Customer Support will also be required on sophisticated exchanges, whereby the functionality is not as intutive to allow fo self execution. From time to time, there might be system issues, downtime for maintence, and other logistically problems. Unfortunately all exchanges will experience issues, and hence Customer Support will come into play. Don’t overlook the importance of an exchange with good customer support.

💳 Payment Methods

After creating an account, and passing through the KYC verification process, customers will need to make a deposit (and later on a withdrawal). Most sought after is a deposit with credit card, because loyalty points can be earned on the card. Credit card deposits are not that common (banks and merchant providers don’t like to support it), but debit cards are readily available with limits.

The more common methods are wire transfers and/or ACH transfers. Less common are e-wallets with PayPal, GooglePay and ApplePay.

Choose a payment method an amount that fits your bitcoin investment strategy.

🪙 Cryptocurrency Selection

Take note of the supported cryptocurrencies and fiat currencies. Some exchanges only accept crypto-crypto transactions, while others have many pairings with the US dollar, i.e. bitcoin to USD, ethereum to USD and so on.

If you are new to buying bitcoin, a safe assumption is that you will buy bitcoin with USD. Therefore you need to sign up to an exchange that at least accepts USD.

Is the number of supported cryptocurrencies important? For some traders it’s convenient, because they want to diversify their cryptocurrency investment. Spreading your investment across several coins will help mitigate risk.

🏷 Coupons and Discounts

Many 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

With any website platform, mobile app, software program there will be maintenance, fixes and improvements. Exchanges are constantly making changes to their software for the benefit of their customers – in feature, security and controls, and in user experience.

An exchange will normally perform IT maintenance when there are the least number of users online. Reliability is paramount in these instances, because the last thing customers want is for the downtime maintenance to extend to peak trading hours. The global exchange (and those with big budgets) are the most reliable when it comes to platform reliability.

📈 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.

Michigan Bitcoin Exchange Reviews

Michigan has several quality bitcoin exchanges to choose from. They vary in trading fees, payment methods, supported cryptocurrencies and rewards. Some exchanges also offer other bitcoin financial products such as lending and banking.

We have a reviewed a select number of exchanges that are available in Michigan.


Binance.US is one of the most popular exchanges in the US. Many see Binance.US as an offshoot of Binance (International), but in fact, the two companies are stand alone. Binance.US however, does utilize the IT platform and experience of Binance, and it clearly shows with their ability to provide a quality service with low trading fees.

The Binance.US platform is one of the best. It is reliable, easy to use and is most suitable for the personal account trader. The KYC process is fast, and will get you up and running in a very short period of time. On the other hand, Business account setups do take longer, and in some cases have extended one month. This is not the norm, but take note that business accounts can be lengthy and will need customer service.

Binance.US supports a good range of cryptocurrencies, including it’s own native coin BNB. Yes, there are some traders that want to diversify from bitcoin with some exotic coins that may not be available, but that is the minority. Overall, you will find a healthy range of cryptocurrencies that you can diversify your exposure into.

The Binance.US platform is downloadable on a mobile app – Android or iOS, but its functionality is not as powerful as the desktop version. Still it is effective to trade when on the move.

Binance.US is a good choice for beginners or personal account holders. It’s fast, intutive, highly liquid with narrow spreads. You will get the most bang for your buck on this platform.

  • Money Transmitter License: MT0022936
  • Cryptocurrencies: 64
  • Mobile App: iOS and Android
  • Fees: 0.1% – 0.5%
  • Payment Methods: Debit Card, ACH, Wire Transfer


BlockFi is not as well known as other exchanges. It is slowly obtaining licenses throughout the US, and has one approved to operate in Michigan. Its core business is lending bitcoin through the acceptance of deposits (much like a bank). Its trading platform as an exchange is still maturing and can only accept one payment method. Fees are included in the spread, which makes it difficult to determine the actual fee to customers.

If you just want to get started with buying bitcoin, then perhaps give BlockFi a miss. But if you want to borrow and lend bitcoin, BlockFi is a good choice.

  • Money Transmitter License: 12-1873137
  • Payment Methods: ACH
  • Mobile App: iOS and Android
  • Fees: embedded in the spread

CEX io cryptocurrency exchange


With over 4 millions customers reaching over 20 countries, CEX.IO is a big exchange that both new starters and experienced buyers of bitcoin are attracted to. Excellent customer support, with reasonable trading fees and high liquidity. CEX.IO supports over 100 cryptocurrencies, which ranks as one of the highest.

The layout and design is intuitive, but probably best for the sophisticated investor with many options. That doesn’t mean that as a beginner it’s not good, it’s just that you may find it overcrowded. CEX.IO has been in the market for over a decade, developing a reputatin of being safe and secure.

Choose CEX.IO if you are an experienced trader.

  • Money Transmitter License: N/A
  • 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 is a well known all rounder bitcoin exchange. It is competitive with low trading fees, although it can be difficult to determine due to it’s complex fee structure. Being listed on the NASDAQ, you can be assured that Coinbase is safe and secure to use. Part of the personal security that it offers to customers is the ability to whitelist IP addresses and put limits and timeframes on withdrawals. At nearly 100 support currencies, Coinbase ranks higher than Binance.US. Lastly, Coinbase is a highly liquid exchange with narrow spreads. Completing a buy and sell order of bitcoin is fast and efficient.

  • Money Transmitter License: MT0021833
  • Cryptocurrencies: 96
  • Mobile App: iOS and Android
  • Fees: 0.5% – 4.5%
  • Payment Methods: Debit Card, Credit Card, ACH, Wire Transfer

coinmama cryptocurrency exchange


We like Coinmama for its simple and easy to use layout. Very intuitive for beginners, hence the need for Customer Support isn’t as important as other exchanges. In addition to bitcoin, there are other coins that you can select. Trading is confined to simple outright buy and sell, there is no margin lending, stop losses and other hyrbids to consider.

The platform is stable, but only Android is downable for mobile apps. Coinmama does not hold a Kentucky license per se, but trades through a third party provider.

  • 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

Crypto.com (CDC)

One exchange that is shaking up the market in the US is Crypto.com. Employing the services of Matt Damon and LeBron James, the marketing budget is huge. Crypto.com has also purchased the naming rights of what was previously known as the Staples Center, L.A.’s stadium.

Pushing for a flashy image, Crypto.com provides customers with a card that is metal. That’s right, a heavy metallic card that is shiny and bright to buy things with bitcoin. It’s not often said, but customers are drawn to pulling out their metal card rather than the boring plastic credit and debit cards.

Pretentious? Maybe. But behind the glamour Crypto.com does offer a fantastic service. The trading fees are very low, comparable to Binance.US, FTX.US and Coinbase. It’s mobile app is strong and reliable in both iOS and Android versions.

Lastly, as with Binance.US, there is a Crypto.com native coin (CRO), which can be earned when trading on the platform.

  • 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 cryptocurrency exchange


Forex exchange was and still is remains the key business for eToro. However it is looking to branch out into the cryptocurrency market. It’s a natural progression because the functionality is exactly the same. With eToro’s history of trading in currency, the platform has developed into a leading, reliable, user friendly exchange.

eToro says that its trading fees are zero. Which is true. But the catch is that their spreads are wide. So wide that eToro ranks as one of the most expensive platforms to buy bitcoin with.

Getting started with eToro is very fast and simple. The customer support is fantastic, but is limited to only 27 cryptocurrencies to trade with.

  • Money Transmitter License: Approved
  • 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 is a cryptocurrency exchange and a NFT trading platform. Alongside Crypto.com, FTX.US is splashing out a big marketing campaign to capture the US market. Huge partnerships have been established with the University of Kentucky, and with other sports teams nationally. As a brand ambassador, FTX.US has employed the services of Tom Brady (who is also a significant shareholder of FTX.US).

The FTX.US layout is very sharp, and intuitive to use. But it supports a limited number of cryptocurrencies at only 20. Nevertheless, bitcoin is available and the trading fees are extremely low (in some cases even cheaper than Binance.US).

FTX.US is fast capturing a great market share in the US, increasing its liquidity for its customers and also providing narrower spreads. FTX.US is a great exchange to use if you just want to buy and hold bitcoin.

  • Money Transmitter License: MT0023864
  • Cryptocurrencies: 20
  • Mobile App: iOS and Android
  • Fees: 0.4% – 5.0%
  • Payment Methods: Wire, ACH, PayPal, e-wallets

Bitcoin ATMs

With the help of Bitcoin ATMs, it’s quite easy for potential investors to buy bitcoins whenever they have enough funds available. They make the process so quick and easy that traders can simply stop at a local convenience store and drop a few dollars onto bitcoin. It is worth mentioning that Bitcoin ATMs charge between 5% to 10% fees against providing privacy, security and convenience of keeping personal and other details in private.

In Michigan the majority of Bitcoin ATMs are found in Detroit.

Note: Bitcoin ATM fees are relatively high when compared to an online cryptocurrency exchange, but the convenience cannot be beaten.


Known for providing an escrow service, this cryptocurrency platform enables clients to find the right buyers for their Bitcoins. Although advertisement is a good option to go with, many have not received the required level of responses. The thing that makes LocalBitcoins different from others is the in-person meeting, which is facilitated and secured by LocalBitcoins have turned out to the fastest platform to acquire Bitcoins within a few minutes.

Michigan Cryptocurrency Tax Ruling and Rates

The IRS has affirmed that bitcoin is subject to tax. Whether it be earned as a payment for goods and services, or whether gains were made as an investment, both are taxable and need to be included in tax submissions.

The IRS is notoriously strict when enforcing tax calculations, and therefore it’s important to keep up with tax rulings and changes.

At present, if you have any realized captial gains, tax in Form1099MISC / B will need to be submitted. This form disclosed the trading activity that supports any capital gains and losses. Cryptocurrency exchanges for Michigan have reports that support tax returns, and some even have developed their reports to integrate to tax return software.

Bitcoin Cryptocurrency Laws and Legislation

The State of Michigan cryptocurrency laws are ambiguous as best, with definitions yet to address digital currency, and state taxation.

Currently the Michigan Money Transmitter Act remains outdated and does no reference “virtual currencies” which would encapsulate bitcoin and other cryptocurrencies. The Act does reference the term “monetary value”, however this is not defined and nor is that any guidance forthcoming from The Michigan Department of Insurance and Financial Service.

As a result of the ambiguity in the laws of cryptocurrencies, politicians have been attempting take advantage of the loop hole in the Michigan Campaign Finance Act. The Act references donations in the form of fiat currency, but not specifically cryptocurrency. Therefore bitcoin donations (in theory) could fall outside of the scope of the Act, and would not required to be disclosed.

In light of criminal activity (excluding the loop holes that politicians are always looking for), the State did push for changes in the Michigan Penal Code. From 2018 to 2019, bills were proposed to include cryptocurrency in the definition of emblezzlement, money laundering, credit cards, counterfeiting and forgery. In addition, the bills included defining records on a distribution ledger, and the lawfulness of not amending records.

  • Bills raised in 2018 are: HB 6253, HB 6254 and HB 6258
  • Bill raised in 2019 are: HB 4103, HB 4105, HB 4106 and HB 4107

The laws pertaining to the operating of a cryptocurrency exchange remain unaddresses. But the majority of Michigan exchanges have obtain a Money Transmitter License.

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.
  • Michigan 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.
  • Michigan 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.

The Federal laws of the US require the legal minimum age of 18 to buy and sell on an exchange in Michigan.


Buying bitcoin is availble in Michigan at several legally State authorized exchanges. In order to buy bitcoin, you need to sign up and create an account at an exchange, provide documentation for KYC, deposit fiat/cryptocurrency, exchange it for bitcoin and store it on a wallet. There are other ways for buying bitcoin besides using an exchange. You can go through a Bitcoin ATM, mine bitcoin or provide goods and services in exchange for bitcoin.

The minimum legal age is 18 years to buy bitcoin on 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 Department of Insurance and Financial Institutions.

Michigan Department of Insurance and Financial Institutions
PO Box 30220
Lansing MI 48909-7720


Bordering States

Ohio | Wisconsin | Indiana | Illinois | Minnesota

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