Where to Buy Bitcoin Ohio

Buying and selling Bitcoin in Ohio is legal through licensed and regulated bitcoin exchanges. There are many ways to buys bitcoin, either through bitcoin exchanges, at bitcoin ATMs, mining and even via payment for services. To buy bitcoin in Ohio, you will need to provide KYC documentation, and ideally have a wallet to store your bitcoin.

A snapshot of Ohio Cryptocurrency Market:

It is legal for residents of Ohio to trade in cryptocurrencies
Investors and traders must be at least 18 years old
Onshore cryptocurrency exchanges are required to obtain an Ohio Money Transmitter License.
Offshore cryptocurrency exchanges are not required to obtain an Ohio Money Transmitter License, but are subject to licensing and regulations of their jurisdiction of operation.

As a trader of bitcoin, you should become familiar with the methods of acquiring, how to compare exchanges to select the right one, the legality of buying bitcoin and tax obligations.

For your convenience, we recommend the below Bitcoin Exchanges to get you started.

Top 5 Ohio Bitcoin Exchanges

Overview of Ohio Bitcoin Exchanges

If there was an award for the best (worst) US State that launched into bitcoin exchanges without much planning, it would be Ohio. In 2018, when bitcoin was starting to take a foothold in mainstream transactions, the Ohio State Treasury went full steam ahead with allowing residents to pay their taxes in Bitcoin.

The Ohio State Treasurer, Josh Mandel, established a government portal named OhioCrypto.com which accepted bitcoin tax receipts. These receipts would be transferred to a bitcoin exchange named BitPay, upon which the bitcoin would immediately convert to US dollars. In doing so, the Ohio State Treasury, would never be exposed to the fluctations of bitcoin. Nevertheless, Ohio became the first US State to permit taxes being paid in bitcoin.

Unfortunately, in 2019 a procurement review was conducted regarding the selection of BitPay as the preferred choice of bitcoin exchange. Ironically, because there was no proper comparision of bitcoin exchanges conducted, the vendor selection was deemed inappropriate. The successor to Josh Mandel, Robert Sprague, subsequently shut down OhioCrypto.com stopping the paying of taxes with bitcoin.

Though, taxes can no longer be paid in bitcoin, this does not impede on the rights of Ohio residents with buying and selling bitcoin. There are many bitcoin exchanges that can be compared and selected by Ohio residents. Cryptocurrency exchanges can be licensed onshore or offshore, and some even use third party licenses with a touch of rebranding. Each bitcoin exchange will also have various transaction fees, various user features, and a KYC process that you should be aware of. Lastly take into consideration safety and security, and the provision of tax statements for the IRS. If you are a high volume trader, you will be more than grateful if the exchange you sign up to provides a 1099 Form.

We discuss further the important considerations when comparing and selecting bitcoin exchanges.

🔒 Safety and Security

There are numerous bitcoin exchange scams attempting to lure bitcoin traders with easy profits. Never reply to unsolicited bitcoin emails, messages, even if they are supposedly endorsed by credible celebrities. Safety and Security is an important consideration when evaluating a bitcoin exchange. Consider their jurisdiction of licensing. The most reliable are exchanges that are licensed as Money Transmitters in the State of Ohio. These exchanges will offer a 2 Factor Authentication process to ensure a secure customer account. They will also ask for KYC documentation, required for anti-money laundering 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 confi, prevention of criminal activities, but also potentially for IRS tax verfication.

Safety and Security measures will also include the protection of customer cryptocurrencies against would-be hackers. Though we strongly recommend to always store bitcoin on a cold wallet and not online with the exchange.

📞 Customer Support

Customer Support that is accessible, prompt and professional is important when selecting an exchange. Buying bitcoin can be as simple as executing a buy order, but if you are serious about investing in bitcoin and taking advantage of its price fluctations then you will need to use a raft of tools. Often the best exchanges will have these tools freely available for their customers, however, sometimes it’s not user friendly. Bitcoin investing can be complex, hence, using the right tools will help you navigate through bitcoin trends, news, and other important data.

Many exchanges also offer a self serve FAQ or educational section. These knowledge libraries can be quite extensive, which is good for a professional day trader who is wanting to learn everything about bitcoin, but can also be overwhelming for a casual investors who simply just wants to buy and hold.

Therefore take note, what kind of investor of bitcoin you are when considering Customer Support of an exchange.

💳 Payment Methods

Payment methods will vary between bitcoin exchanges. The most common payment methods, include bank transfer ACH, debit cards, Wire transfers, PayPal, ApplePay and Google Pay. Some will accept small deposit with credit card, and other e-wallet options like Skrill and Neteller.

Payment methods can further be differentiated between deposit and withdrawal, with processing times most instant, and some up to 3 to 5 business days.

🪙 Cryptocurrency Selection

Cryptocurrency selection isn’t going to be an issue when buying bitcoin. Because bitcoin is the most traded virtual currency, hence every exchange will offer bitcoin as one of the pairings. The most common pairing is therefore BTC/USD. But, if you intend to diversify and trade in other cryptocurrencies, then choose an exchange that offers a wide variety of altcoins. Cryptocurrency selection will become important, as your portfolio grows and you seek to diversify from bitcoin.

🏷 Coupons and Discounts

Many exchanges will offer side perks to customers such as “Refer a Friend”. If you refer a friend, you will be given a small referral credit to your account or native coins of the site (if there are native coins). In addition, some exchanges will have coupons that you can claim and use to be rewarded with trading fee discounts. Coupons and discounts are a great promotional tool for exchanges looking to expand their customer base, but as a user, there isn’t much of an impact. While, it’s a nice thank you when you refer a friend, or claim a coupon, this shouldn’t form a factor when considering a bitcoin exchange.

💰 Fees

Fees are important if you intend to be a high volume traders. There is a huge range of fees between exchanges, some starting from as little as 0.01% and then reaching up to 0.5%. High fees can easily hurt your profits if you are trading often. It can also be difficult to compare, because often exchanges will have a tiered fee based on volume and dollar amount.

⚙️ Platform Reliability

Some exchanges have been known to crash, especially when there is a surge in transactions (either wanting to buy or wanting to sell). Reliability of platform is critical when buying and selling bitcoin, particularly in times of huge sell off. The larger and more well known exchanges are typically more robust than new and upcoming exchanges. Exchanges will also need maintenance to support the platform. Be aware of maintenance times (system down time) as this may impact your bitcoin buying and selling.

📈 Liquidity

Liquidity is the ability of an exchange to link a buyer with a seller (particularly important for peer to peer exchanges). Bitcoin has the highest liquidity of all cryptocurrencies, being the most popular, but this doesn’t mean that an exchange will have a sufficient customer base to facilitate buying and selling quickly.

The larger exchanges with large customer bases will not pose a problem with liquidity, however their transaction fees may be slightly higher.

Ohio Bitcoin Exchange Reviews

Considering the above criteria, following is a review of several bitcoin exchanges for Ohio.

Coinbase

Licensing: Money Transmitter License – OHMT 104

Referred to as the top Bitcoin broker (BTC), Coinbase has always been the preference of beginners to try out their luck by investing in cryptocurrencies. Due to its simple user-interface and easy to handle mechanism, this cryptocurrency exchange has emerged as the best platform for all Bitcoin and other cryptocurrency fans. They can carry out transactions with SEPA transfer, bank transfer, debit/credit card. with the surety of buying highly liquid cryptos. The best part is that if any trader wants to buy cryptocurrencies urgently, he/she can do it through Instant Buy with a debit card.

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.

Etoro

Licensing: Money Transmitter License – OHMT153

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.

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.

Kraken

Kraken is not only a top rated crypto-exchange in Ohio 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 immediatley buy and sell bitcoin. Fees are reasonable.

Bitcoin ATMs

With the help of Bitcoin ATM, 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 used to wonder whether things have been done properly or not. 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. This fee is literally worth the features traders will be getting.

LocalBitcoins

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.

Ohio Cryptocurrency Tax Ruling and Rates

Buying and selling of bitcoin (and any altcoins) in Ohio will be subjected to tax. The IRS regards bitcoin a virtual currency, much like buying foreign currency. In the event of buying bitcoin, selling and exchanging bitcoin, any capital gains will be taxable per IRS tax laws.

As a result, tax submissions to the IRS will need to disclose bitcoin transactions. The transactions could be double checked by the IRS, whom have the ability to enforce bitcoin exchanges to release trading details of Ohio residents.

In submitting taxes, you may need to submit 1099 forms (B/K/MISC). 1099-B form is commonly used for the calculation of capital gains and losses, of which many tax software will need. Record keeping is vital, units, dollar amounts, sales, exchanges, date of transaction. Some bitcoin exchanges will support customers with the provision of these forms pre-populated, others will provide a transactional report with the information needed to fill out the forms. Please seek professional tax advice when completing IRS with a tax accountant.

Bitcoin Cryptocurrency Laws and Legislation

Bitcoin exchanges that operate onshore are required to obtain an Ohio Money Transmitter License. The governing law for an exchange to operate with a licenses falls under the The Ohio Money Transmitter Act – Ohio Revised Code Section Code § 1315.01 – 03

Section Code § 1315.01 defines a “Money Transmitter” as any entity that receives receipts with monetary value. It doesn’t explicitly define virtual currencies, however, it is widely interpreted as being included in the Act. Subsequently, any virtual currency transmitter is required to apply for a license. Applications can be submitted here: money transmission licensing application.

One requirement of a licensed Money Transmitter is provide to the Ohio Department of Commerce an independent third-party audit of their exchange platform and systems.

Extending beyond bitcoin exchanges, Ohio lawmakers attempted to legalize the use of blockchain technology and smart contracts. In 2019, the Senate submitted S.B. 300 as an addendum to the Ohio’s Uniform Electronic Transactions Act. This would have formally bring into law smart contracts as legitimate contracts that could be held as binding in the court of law. S.B. 300 however was rejected and failed to pass.

At the same time, the House introduced a similar bill H.B. 220 with the effect of using block technology with recognized “authority”. The scope of changes include blockchain signatures and ledgers.

Bitcoin and Cryptocurrency Wallets

When buying bitcoin you will need a wallet as storage, or you can keep your coins held on the exchange account. The danger of storing your bitcoin on the exchange is that it could be attacked by hackers and coins stolen. Using a personalized wallet, on the other hand, offers better protection. Wallets can either be connected to the internet or be completely disconnected. A disconnected wallet offers the best protection, as it simply cannot be hacked.

In short, although storing bitcoin on an exchanges offers a lot of convenience, it’s not necessarily a good thing.

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.
Ohio 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.
Ohio 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 legal minimum age to buy and sell bitcoin in Ohio is 18 years old.

Summary

Buying bitcoin in Ohio can be performed through several methods. Most common is using a bitcoin exchange to buy and sell bitcoin and other cryptocurrencies. To create an account at bitcoin exchanges, you will be asked to provide personal information and KYC documentation. The minimum age to buy and sell bitcoin is 18 years old.

The IRS imposes tax on any capital gains through the buying, selling and exchange of bitcoin. Most bitcoin exchanges now provide 1099 Form statements, or transactional reports that support tax submissions.

The buying and selling of bitcoin can either use e-wallets or be left on the exchange to store. The safest storage of bitcoin is by using a cold wallet which is not attached to the internet, and therefore cannot be hacked.

When buying bitcoin, choose a bitcoin exchange that is licensed, safe and secure, has reasonable transactional fees, support IRS tax submissions and quality customer service.