Where to Buy Bitcoin Colorado

Colorado is one of the most supportive states of cryptocurrency in the US. It has passed legislation that promotes the use of Bitcoin.

A snapshot of Colorado Cryptocurrency Market:

• It is legal for residents of Colorado to trade in cryptocurrencies
• Investors and traders must be at least 18 years old
• Businesses and consumers must abide by the Colorado Digital Tokens Act.

If you intend to trade and invest in Bitcoin and Cryptocurrencies in Colorado, we highly recommend the following:

Top 5 Colorado Bitcoin Exchanges

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Overview of Colorado Bitcoin Exchanges

Colorado is no doubt one of the leading US states breaking through the barriers of outdated laws and reactive regulation with its pro-cryptocurrency stance. The governor of the State, Polis, has been pushing hard to encourage and promote cryptocurrency as a legitimate means of transaction. As a result Bitcoin exchanges in Colorado are many and legal.

Choosing a Colorado exchange should consider fees, safety and other attributes. Similar to any other financial services online platform, that are many aspects to compare.

🔒 Safety and Security

Since cryptocurrency is a digital, intangible currency, traders have to be 100% sure that their coins and tokens as well as personal information is in “safe hands”. Exchanges are often 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 the option of 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. 

📞 Customer Support

Not every trader is informed enough to start investing on his/her own. In addition, every platform operates on a different basis, which requires help from the experts. This is where customer support comes in. 24/7 availability and presence of knowledgeable by its representatives is vital. A good platform can provide professional, prompt and accurate responses accessible in various ways.

💳 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, such as attaching a bank account, depositing via debit and credit cards (Visa or Mastercard), mobile e-wallets like Skrill, Neteller.

🪙 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 Colorado 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 manipulation. The larger holders of the coin, could possible move the market, but it more than likely causes volume volatility on the exchange.

Colorado Cryptocurrency Exchange Reviews

There are literally hundreds of exchanges that are available, far too many to review making it logistically impossible. We cannot stress enough that there are many that are scam sites. They use celebrity names to promote their scam sites, and reel in unsuspecting investors who are looking for safe yet quick gains.

We therefore have reviewed a few of the best cryptocurrency exchanges to choose from.

Binance.US

Binance.US is a popular exchange in Colorado.

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.

Coinbase Pro

Coinbase Pro prides itself for being the largest Bitcoin broker (BTC) in the world. Because of the simplicity and easy user-interface, more and more traders prefer them to purchase cryptocurrencies, especially Bitcoins. While Coinbase Pro is operating in more than 30 countries, its services in the United States, particularly in Alabama are incredible. Traders are able to enjoy high liquidity rates within broad buying limits. The best part about Coinbase Pro is its ‘Instant Buy’ facility which traders can avail by investing with their debit cards. The only thing that annoys traders is its 5-day long period for bank transfer to purchase cryptocurrencies.

Coinmama

The next crypto-exchange actively working in Colorado 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

As a multi-functional 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 Colorado 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.

Bitcoin Cryptocurrency Laws and Legislation

Lawmakers and even government officials have permitted the use of Bitcoin for various transactions. In 2019, Jared Polis – Governor of Colorado – declared that his political campaign would be the first to accept Bitcoin donations. In doing so, he passed the Colorado Digital Tokens Act which removed the ability of the SEC to regulate cryptocurrency transactions. In essence, the onerous measures applied by some states to invoke stringent KYC on businesses does not apply.

In 2021, Polis has pushed for further reform to allow Colorado state taxes to be paid in cryptocurrency (a race against Ohio whom is also eyeing to be the first state to do so).

Polis’ pro cryptocurrency stance has not been unnoticed by cryptocurrency advocates. As a result, Colorado has attracted many start-ups and cryptocurrency innovators to the state. Blockchain technology has become one of the fastest growing sectors.

Colorado Digital Token Act

The Colorado Digital Token Act aims to clarify the legality and use of cryptocurrencies in the state of Colorado. It provides rules for businesses that protects consumers, without hindering capital investment and innovation. In a broader sense, the Act extends to the decentralization of platforms with the intention of empowering users with technology, rather than big business.

The House introduced bill HB18-1220 – Bitcoin Dealers Licensed As Money Transmitters – in 2018 to formalize the legality of using cryptocurrency as legal tender. In summary, those who use cryptocurrency is regulated under this law in reference to money transmitters.

The law outlines the use of cryptocurrency wallets, the activity of buying or selling of cryptocurrencies, and exchanging fiat currency for cryptocurrency as outside the definition that regulates financial securities under the “Colorado Securities Act” or the “Money Transmitters Act”. Instead, the bill declares that cryptocurrencies is defined in a new term “open blockchain token” and is explicitly different to a security.

The Senate passed SB19-023 – Cryptocurrency Exemption Colorado Digital Token Act – also known as the “Colorado Digital Token Act”. In summary, this act outlines exemptions of cryptocurrency activity from the laws governing securities.

These exemptions pertain to securities registration, broker/dealer and selling qualifications for cryptocurrencies. The act defines cryptocurrencies as “Digital tokens”.

Digital tokens encompasses blockchain units maintained on decentralized ledgers that is used for the exchange of goods and services.

It is therefore legal under current Colorado state law to buy and sell 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.
• Colorado 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.
• Colorado 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.

Colorado Bitcoin ATMs

Below is a list of all Colorado Bitcoin ATMs:

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.

Colorado Department of Regulatory Agencies – Division of Banking
1560 Broadway, Suite 975
Denver, CO 80202
Phone: 303-894-7575
Fax: 303-894-7570

https://banking.colorado.gov/consumers/file-a-complaint

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