Crypto Guide

How to Buy Cryptocurrency in Illinois in 2024 – The Ultimate Beginners Guide

AuthorWajeeh Khan
Crypto Expert
Fact Checked by Joshua Downes
Last updated: September 10, 2024
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Buy Cryptocurrency in Illinois

In this guide, we explain you how to buy cryptocurrency in Illinois and introduce you to the best crypto exchanges.

The Midwestern state is already ranked one of the most crypto friendly states in the US. It is welcoming of crypto exchanges and investors. It has also been at the forefront of crafting crypto-friendly legislations that regulate cryptocurrency markets.

If you’re ready to get started, read on for step-by-step instructions and a list of platforms you can use to buy cryptocurrencies in Illinois.

How to Buy Cryptocurrency in Illinois in 4 Steps

This quick steps explains you how to buy cryptocurrency in Illinois state via eToro. This SEC-regulated crypto brokerage is easy to use, supports all the best crypto coins, and is safe. Plus, you only need $10 to start buying crypto coins in Illinois via eToro.

  • Step 1: Open a free eToro account: Start by opening the official eToro website or install the eToro trading app. Complete the registration form that appears here. You will also need to come up with a username and password for this account.
  • Step 2: Deposit funds: To start trading on eToro, you first need to deposit at least $10. The crypto brokerage supports all the popular fiat payment methods – from PayPal to cards and bank transfer.
  • Step 3: search for crypto to buy: eToro hosts tens of the best cryptos to buy. Find the one that appeals to you the most.
  • Step 4: Buy crypto: Click on the ‘BUY’ icon against your preferred crypto asset. Proceed to customize that investment by indicating how much you wish to invest in the digital asset.
Buy Crypto Now

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Below, we will provide you with a detailed walkthrough of the crypto-buying process on eToro. We will also tell you everything you need to know about buying digital assets in Illinois.

Most Popular Crypto Assets to Buy in Illinois

Bitcoin is by far the most popular and most searched crypto in Illinois. It has always been the digital asset of choice for both active traders and long-term investors in The Prairie State. We must also recognize that BTC’s popularity here has surged further over the past few months.

It especially blew up after the SEC approved Bitcoin ETFs. The move has amplified investor confidence in the digital asset and drawn in novice investors and institutional investors. Other popular crypto assets in Illinois include:

  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Solana (SOL)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Shiba Inu (SHIB)
  • Ripple (XRP)
  • Pepe (PEPE)
  • Binance Coin (BNB)

 

Where to Buy Cryptocurrency in Illinois

To buy crypto in Illinois state, look for an exchange that suits you. At the time of writing, all the best crypto exchanges in the US have an active presence in Illinois. We have vetted these platforms and come up with a list of what we consider the best crypt trading platforms in Illinois. While vetting these platforms, we considered a number of factors.

These include their safety and regulation, ease of use and crypto library, liquidity, and cost of trading. We also checked the responsiveness of their customer support and whether they are multi-platform. Ultimately, we settled on the following as the best places to buy cryptocurrency in Illinois.

1. eToro – Overall Best Crypto Exchange in Illinois

Top on our list of the best exchanges to buy cryptocurrency in Illinois is eToro. It makes it here because it is easy to use and safe. For starters, eToro maintains a quick and straightforward account opening process. You are then ushered into a highly intuitive crypto trading interface that appeals to both beginners and pro traders. It even integrates 75+ charting tools and technical indicators.

Buy Cryptocurrency in Illinois via eToro

eToro is also safe as it has never been hacked. It even provides its platform users with free and secure digital wallets. First is the web wallet that holds as much as 90%+ of client assets in offline vaults. It then provides you with an equally safe mobile wallet app for iOS and Android. The crypto brokerage also asks that you secure your trading account and wallet with strong password.

You would also want to invest in  crypto on eToro because it is deeply liquid and transparent in terms of fees. Today, you can buy all the most promising cryptos on eToro. The trades are also processed instantly and you only pay a fixed transaction fee of 1% of the trade volume.

Best Copy Trading Platforms

eToro is, however, more popular because of its copy and social trading features. Copy trading lets you earn passively when you mirror the trade settings of successful traders on your trading account. Social investing, on the other hand, allows for seamless interactions between all eToro platform users.

Pros:
  • eToro operates one of the best crypto trading mobile apps
  • eToro is a regulated crypto brokerage that insures client funds with FDIC
  • You only need $10 to start buying cryptos on eToro
Cons:
  • Live chat and over-the-phone support only available to eToro Club subscribers
Buy Crypto Now

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

2. Coinbase – The Most Liquid Crypto Exchange in Illinois

Coinbase is one of the best crypto exchanges in the US. It also ranks highly on our list of the most beginner-friendly crypto exchanges in Illinois. It has a quick and straightforward account opening process. You can also buy cryptos with as little as $1 on Coinbase. It even has the one-click buy feature that lets you buy cryptos safety and instantly with PayPal, cards, and account balances.

Best Crypto Exchange in Illinois

Coinbase is also one of the safest crypto exchanges. Though its mobile wallet apps have been hacked in the past, it provides users with institutional grade crypto custody services. To achieve this, Coinbase holds up to 98% of client accounts in offline vaults. It then insures the remaining 2%. Your cash deposits into Coinbase are also insured – up to $250,000 by the FDIC.

Coinbase is also the best place to buy the best altcoins in Illinois because of its solid reputation. The exchnage, for instance, is one of the few regulated crypto exchanges. It was also the first crypto exchange in the US to go public. It also has one of the highest site uptime.

Other factors making Coinbase the best crypto exchange in Illinois include the fact that it friendly support team. We also liked that it is deeply liquid and lists all the most undervalued cryptos. It is also multi-platform with a web trader, Coinbase crypto trading app, and Coinbase PRO.

Pros:
  • Coinbase has a decent crypto library supporting 80+ cryptos
  • The exchange supports all the popular deposit methods – including PayPal, cards, and Apple Pay
  • Stake cryptos on Coinbase and earn passively
Cons:
  • Coinbase has a complicated fee structure

3. Uphold – Best Multi-Asset Trading Platform in Illinois

Uphold is a unique crypto trading platform, but it is still one of the best places to buy cryptocurrency in Illinois. It is a multi-asset online trading platform that is often referred to as the anything-to-anything platform. The name is reflective of its mode of operation in the sense that it allows anyone to buy any asset using any other asset.

Here is an example: if you already own Gold on the Uphold account, you can use it to buy Bitcoins. You don’t need to convert it to USD first. Similarly, you can trade cryptos against other cryptos, commodities, metals, and forex listed here.

Multi-Asset Trading Platform in Illinois

At the time of writing, Uphold is home to more than 260 cryptocurrencies. You can buy any of these using fiat or trade them against any of the other supported assets. Uphold also lets you stake 15 of the most popular cryptos, including Bitcoin, Ethereum, Solana, and Cardano. The staking rewards can be as high as 16% APR for some of these coins.

Other factors making Uphold one of the best crypto trading platforms in Illinois include its safety. Among the safety measures embraced by Uphold include not sharing client data with third parties. Further, it holds client assets in offline vaults and doesn’t loan them out. It also encourages multi-factor authentication and updates its proof of reserves reports by the minute.

Pros:
  • Uphold’s multi-asset nature allows for portfolio diversification
  • It has a fast account opening and a straightforward crypto-buying process
  • Uphold is a highly regulated and reputable crypto brokerage
Cons:
  • Uphold charges comparatively higher spreads, especially for not-so-popular cryptos
Buy Crypto Now

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

4. Kraken – The Safest Crypto Trading Platform in Illinois Right Now

In the 13+ years that Kraken has been around, it has never been hacked. It has embraced multiple security measures around its systems. These include holding 90%+ o client assets in ultra-secure offline vaults. It also demands strong passwords and multi-factor authentication for all its client accounts. It was also the first to publish its proof of reserves. These make it the safest crypto exchange in Illinois.

Kraken Crypto Trading Platform

It also makes it here because it presents different crypto investors with different ways of investing in crypto. First, note that Kraken is home to 100+ of the best cryptos to buy in the US. You can buy cryptos instantly with debit cards and credit cards on Kraken. Retail investors can also open buy and sell trades on the Kraken web trader or the Kraken crypto trading mobile app.

Expert traders get to use the Kraken PRO trading platform. This has more crypto trading pairs, charges competitive fees, and integrates more advanced trading tools. High rollers, on the other hand, use the Kraken OTC trading platform – also known as the Kraken Dark Pool. Here, you can place large-volume orders and trade pseudonymously.

When buying the best future cryptos instantly on Kraken, you will only pay a fixed fee of 0.9% for stablecoins and 1.5% for cryptos. Crypto traders, on the other hand, attract a maker/taker fee of between 0% and 0.40%.

Pros:
  • Kraken is one of the most liquid crypto exchanges
  • You can start trading cryptos with only $2
  • Buy NFTs on Kraken fee-free
Cons:
  • Kraken doesn’t provide users with a mobile wallet app

5. Gemini – The Best Crypto Exchange for Active Traders

Among the many factors making Gemini one of the best exchanges to buy cryptocurrency in Illinois are its advanced trading platforms. The multi-platform exchange has integrated highly advanced trading and analysis tools. These are hosted on its web trader, crypto trading mobile app, and the active trader platforms.

Gemini Crypto Platform

Today, you can interact with 70+ of the best cryptos to buy in Illinois via Gemini. These range from the best DeFi cryptos to the most searched cryptocurrencies in the state. It even integrates an NFT marketplace where you can buy all the popular NFTs. You only need $2 to start buying cryptos on Gemini.

At Gemini, you can buy cryptos instantly. You can also actively trade these digital assets by opening and closing trades on its integrated trading platform. It even supports crypto derivatives – futures and options – trading. The multiple crypto investing options, competitive fees, and deep liquidity make it one of the best crypto exchanges for active traders in Illinois.

Gemini is also a safe exchange, offering institutional-level custody services to all its platform users. This involves holding 90%+ of client assets in ultra-secure offline vaults. It has also put in place adequate security measures to protect your cryptos. These include requiring multi-factor authentication when logging in and transferring crypto. It also lets you whitelist ‘Approved Addresses’ and restrict withdrawals.

Pros:
  • Gemini supports multiple crypto payment options
  • Highly responsive support team available via live chat and over the phone
  • Supports passive investing programs like staking
Cons:
  • Gemini has a rather complicated fee structure

6. BitStamp – The Best Crypto Trading Platform for Passive Investing

You will want to use BitStamp crypto exchange in Illinois if you are looking to invest passively. The highly reputable exchange currently integrates multiple programs that let you earn passively off of crypto. The most impactful include crypto lending and crypto staking.

BitStamp also features among the best crypto exchanges in Illinois because of its large crypto library. The decently liquid exchange is currently home to 100+ coins and exposes you to 200+ crypto markets. Here, you will get to interact with all types of cryptos. You get to invest in new cryptos, the most volatile coins, and everything in between.

Bitstamp Crypto Exchange

Long-term investors like BitStamp because it is home to some of the most undervalued yet promising cryptos. Active traders, on the other hand, like its deep liquidity, fast transaction processing speeds, and competitive fees. When buying or selling cryptos at BitStamp, you will only pay a maker/taker fee of between 0.0% and 0.4%.

Several other factors help make BitStamp one of the bets crypto trading platforms in Illinois. These are its highly responsive support team available over the phone and via live chat. Not to forget that it supports multiple trading platforms. These include the BitStamp web trader, crypto trading mobile app, BitStamp PRO, and Tradeview. All these are rigged with highly advanced analysis, charting, and trading tools.

Pros:
  • BitStamp is a safe crypto exchange and holds 95% of client assets offline
  • Buy cryptos instantly with PayPal and cards on BitStamp
  • Cash out your crypto winnings directly to the bank
Cons:
  • No crypto derivative trading on BitStamp

7. Robinhood – The Best Crypto Trading Platform for Beginners

Robinhood is arguably the most popular multi-asset brokerage in the US today. It was originally designed to help retail investors access traditional financial instruments like stocks, ETFs, and Indices. It started offering Bitcoin investing services in 2018. Today, it has extended its crypto library to include 30+ of the hottest cryptos.

Buy Cryptos Exchange in Illinois Via Robinhood

There are three key factors that make Robinhood the best crypto trading platform in Illinois. First, has to be its beginner friendliness. This is evidenced by its quick account opening process. This also extends to its easy-to-use trading interface and straightforward crypto-buying process. Not to forget that it doesn’t have a minimum deposit limit and lets you buy cryptos with as little as $1.

Secondly, Robinhood is the best crypto trading platform for beginners in the US because it is affordable. It is one of the few exchanges that do not charge a trading fees for facilitating crypto trades on its platform. This means you get to pocket more cryptos that you would if you were using other exchanges. At the time of writing, Robinhood claims you get to pocket up to 3.5% more crypto.

Lastly, you will want to buy Bitcoin and other cryptos on Robinhood because it a safe crypto exchange. It has deployed institutional level security measures around your digital assets. These include holding these coins in ultra-secure offline vaults and insuring your cash deposits with FDIC – up to $250,000. It even provides you with a self-custody web3 wallet.

Pros:
  • Robinhood lets you buy cryptos and other assets commission-free
  • It has a highly responsive support team available online and over the phone
  • It teaches beginners how to invest in cryptos
Cons:
  • Robinhood makes money by selling client data

Is Crypto Investing Legal in Illinois

Crypto investing is legal in Illinois. In fact, the state has been at the forefront of drafting legislation to regulate the state’s digital economy. Among the bills enacted in the state is SB 1464, which incorporates cryptos into the Illinois Funerals and Burials Act in 2019. In 2017, the Department of Financial and Professional Regulation issued guidance advising when an individual/entity may need a money transmitter license.

Illinois has also been welcoming of crypto and crypto related business. It, for instance, is worth noting that the Chicago Mercantile Exchange (CME) has been facilitating Bitcoin futures trades since 2017. Further, the state is home to the largest Bitcoin mining facility in the mid-west.

Crypto Taxes in Illinois

When it comes to taxation, Illinois considers crypto to be an intangible personal property and taxes it accordingly. This implies that if you earn crypto as an income – maybe as a salary or through mining, it is subject to income tax. Gains from the sale or transfer of cryptos is also subject to capital gains tax. Inherited cryptos are also considered part of your estate and thus, subject to estate tax.

In addition to state taxes, you are also required to pay capital gains taxes on your crypto to the federal government via the IRS.

Practical Tips for Buying Crypto and Bitcoin in Illinois

In this section, we look at the top tips for investing in cryptos in Illinois. Here are a few things you need to understand before you start your crypto-investing journey:

  • Only invest what you can afford to lose: The golden rule of thumb when it comes to crypto is to only invest what you can afford to lose. When deciding how much to invest in cryptos, we encourage you to consider a number of factors. These include your risk tolerance, disposable income, trading experience, and understanding of the crypto markets.
  • Take advantage of leverage: Leverage amplifies your profits. But you need to understand that it also amplifies your losses. Avoid using leverage if you are a beginner to intermediate crypto investor.
  • Understand the crypto you want to buy: You need to do your own research on every crypto you are interested in buying. Do not just use a coin because of hype or on the recommendation of a crypto influencer. First, vet the coin and seek to understand its fundamentals, its real-world use cases, price history, and sustainability.
  • Leverage passive investing tools: This goes to beginners as well as intermediate investors. It also works for individuals with busy schedules not enough time to screen digital assets. Consider embracing such passive investing programs as copy trading and staking.

How to Buy Cryptocurrency in Illinois on eToro – Step-by-Step Beginners Guide

In this section, we walk you through the process of buying Bitcoin, Ethereum, and top altcoins in Illinois on eToro. As we have already mentioned, the process is quick and straightforward. eToro is available in Illinois, and you only need $10 to start buying cryptos on the platform:

Step 1: Open a Crypto Account

Open the eToro browser or download the eToro crypto trading mobile app. Hit the “Join Now” button on either platform and complete the registration form that pops up. This captures your basic personal information including name and email address, phone number and country of residence, and income sources.

Step 2: Verify your Identity

eToro is a regulated crypto brokerage and, therefore, requires all its platform users to verify their identity. Simply upload a photo of your government-issued ID when prompted. This may be your passport or driver’s license.

Step 3: Fund the Account

After eToro notifies you of account approval, log in. Hit the “Deposit” icon on your user dashboard to bring up all the supported account funding methods. Choose one and follow the prompts to deposit at least $10 into your eToro account.

Step 4: Identify the Best Crypto to Buy

After the payment reflects in your account, click on the” Discover” button to view the supported assets. Choose “Cryptos” to see a list of all supported digital assets. Choose one and hit the “BUY” button.

Step 5: Buy Crypto

A trading tab will up. Use it to customize this trade by indicating how much you intend to invest in this crypto. Hit the “Open Trade” button to execute this investment.

Buy Crypto Now

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

Note: The private keys for the crypto you just purchased will be deposited into the exchange-provided web wallet. This holds more than 90% of client assets offline. To move the coins to another wallet or exchange, you first need to download and activate the eToro mobile wallet app – eToro Money.

How to Sell Cryptocurrency in Illinois

The process of buying cryptos on eToro is equally straightforward. Below, we teach you how to sell cryptos on eToro in Illinois:

  • Step 1: Log back into the eToro trading account.
  • Step 2: Hit the “Portfolio” icon on your user dashboard to reveal all your open crypto trades.
  • Step 3: Identify the altcoin to sell and choose the “Close” trade option.
  • Step 4: Indicate whether you want to sell a portion of coins or the entire position and hit “close” to execute.

Note: The cash equivalent of the cryptocurrency you just sold will be immediately deposited into your account. Use it to buy the best cryptos in the US or simply withdraw it.

Conclusion

If you want to buy cryptocurrency in Illinois today, start by comparing a range of crypto brokers and exchanges available in the state. Look at their key features, fees, reputation & regulation, and security to decide which platform is the right fit for your investment needs.

Want to jump straight to buying Bitcoin or other cryptos in Illinois? Use the step-by-step guide to buying cryptos on eToro that we have outlined hereinabove.

Buy Crypto Now

Investments are subject to market risk, including the possible loss of principal. Virtual currencies are highly volatile. Your capital is at risk.

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References:

FAQs

What is the best crypto exchange in Illinois?

eToro is our top pick for the best crypto exchange in Illinois today. We liked that it appeals to both beginner and pro-crypto traders. It is also safe, maintains affordable deposit/trade minimums, and is transparent with its fees.

The process of buying cryptos in Illinois is rather straightforward. Start by buying and creating a crypto trader account with one of the top exchanges. Verify your identity and fund this account. Deposit funds into that account, identify the best crypto to buy, and open a buy order.

Yes, Illinois is a crypto friendly state. It has been at the forefront of drafting legislations aimed at regulating the crypto industry. It also welcomes crypto exchanges and crypto investors.

Yes, unlike states Like California that have halted crypto staking services, you can still stake cryptos and earn passively in Illinois. In fact, all the popular crypto exchanges operating here have integrated crypto staking services.

The Illinois Department of Revenue (IDR) treats cryptos as intangible personal property and taxes it accordingly. This means that depending on how it is earned, it may fall under capital gains tax, estate tax, sales tax, or income tax.

Yes, Binance.US is still available in Illinois.

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