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Buy Cryptocurrency in Colorado

In 2022, Colorado became the first state to accept cryptos as payment for taxes and state taxes. It also ranks highly among the most crypto-friendly states in the country.

In this beginner’s guide, we’ll walk you through the steps to get started. You’ll learn how to buy cryptocurrency in Colorado, where to buy crypto, and how to choose a cryptocurrency to buy. We’ll also discuss and rank the best places to buy crypto assets and some of the risks you should consider.

How to Buy Cryptocurrency in Colorado – An Easy 4-Step Guide

Here is a quick overview of the crypto buying processes in Colorado on eToro.  It is quick and straightforward, taking no more than a few minutes. You can buy all the popular cryptos on this platform and you only need $10 to start investing.

  • Step 1: Open a crypto trading account: Hit the ‘Join Now’ button on the official eToro.US website. Complete the registration form provided, verify your identity, and come up with a unique username.
  • Step 2: Deposit funds: To start buying Bitcoins on eToro, deposit at least $10. The supported deposit methods include PayPal, credit cards, debit cards, bank deposits, and ACH transfers.
  • Step 3: Identify the cryptos to buy: eToro is home to the most promising cryptos out there. Find the best crypto to buy from the exchange’s list of supported cryptos and hit the ‘BUY’ option.
  • Step 4: Buy cryptocurrency: Use the trading tab that appears here to customize this investment by indicating how much of this investment you intend to invest in the said crypto.

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

We will walk you through the detailed process of investing in cryptocurrency in Colorado state further below. Our crypto experts also review the best altcoin exchanges operating in Colorado today. We will also discuss crypto regulation and taxation in the colorful Colorado.

Most Popular Cryptos to Buy in Colorado

Bitcoin is the most popular virtual currency in Colorado. It is the most talked about on local news and one of the most discussed topics on social media platforms. It is also one of the most traded digital asset on crypto exchanges operating on Colorado. Not forgetting that multiple Bitcoin mining farms have sprung up across the state.

However, we must acknowledge that Colorado residents have also expressed interest in multiple other cryptos. These include:

  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Ripple (XRP)
  • Solana (SOL)
  • Shiba Inu (SHIB)
  • Cardano (ADA)
  • Binance Coin (BNB)
  • Toncoin (TON)
  • Pepe (PEPE)

Where to Buy Cryptocurrency in Colorado

Though Colorado is a crypto-friendly state, finding the an exchange to buy cryptocurrency in Colorado here can be daunting. It is even harder when you have to choose from tens of great options. To help you get started, we provide you with an in-depth review of what we consider the best crypto trading platforms in Colorado.

1. eToro – Overall Best Crypto Exchange in Colorado

One of eToro’s most popular traits is the integration of copy trading and social investing tools into its platform. It was among the earliest adopters of mirror trading and helped popularize the concept in the traditional investing world. And when it started offering crypto trading services, it gave crypto investors access to these revolutionary passive investing tools.

Buy crypto via etoro exchange

eToro is also popular because it supports fractional crypto investing. Today, you can start investing in any of the most promising cryptos supported here with as little as $10. Further, beginners looking to invest passively via copy trading will only need $200. The crypto brokerage also maintains a transparent and fixed fee for all crypto trades. When you buy Bitcoins on eToro, for example, you only pay 1% of the trade volume.

In addition to passive investing and affordability, eToro is overall the best crypto exchange to buy cryptocurrency in Colorado because of its decent crypto library. Here, investors interact with tens of the most popular cryptos in Colorado. It gives you access to the most undervalued cryptos as well as the best meme coins to buy in 2024. But even more importantly, eToro is deeply liquid and processes crypto transactions instantly.

Buy Cryptocurrency in Colorado via eToro

Other factors helping eToro list here include the fact that it is a multi-regulated platform licensed by the SEC. Secondly, eToro is a safe trading platform that provides users with free digital wallets. It will also be of interest to note that though eToro has been offering crypto services for more than a decade, it has never been hacked.

Pros:
  • It is a multi-asset platform which creates room for diversification
  • You can also in Bitcoin ETFs via eToro
  • eToro integrates vast crypto research tools and resources, including weekly videos and articles
  • eToro appeals to casual and beginner crypto investors the most
Cons:
  • Trading fees on eToro, though transparent, are pricier than on equally reliable exchanges
  • Doesn’t support some automated crypto trading tools like trading bots

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

2. Kraken – Best Place to Buy Cryptos in Colorado for Active Traders

Kraken is arguably the oldest crypto exchange in the US today. The exchange was established two years after Bitcoin’s launch, which makes it older than 99% of cryptos traded on its platform. Over the years, it has cultivated a reputation for reliability, deep liquidity, and support for the most popular cryptos. These are some of the factors that make Kraken the best crypto exchange for active traders in Colorado.

Kraken Crypto Trading Platform

Others include its support for 200+ virtual currencies. Here, traders interact with the most volatile cryptos as well as the best DeFi coins. Kraken has also come up with a dedicated trading platform for active traders – the Kraken PRO app. This exposes you to more crypto trading pairs and charges competitive fees. It also gives you access to hundreds of the most advanced trading and research tools.

In addition to active traders, Kraken also markets itself as one of the best trading platform institutional investors. To this class of investors, Kraken provides an OTC platform and institutional grade security for their private keys. Also known as the Kraken Dark Pool, the OTC platform lets them place high-volume orders at competitive fees. It then offers to store these coins in geographically distributed and ultra-safe offline vaults.

Kraken also makes it here because it has one of the most responsive support teams – available 24/7. We also appreciate the fact that, like eToro, Kraken has never been hacked. Plus, it was the first major crypto exchange to publish its audited proof of reserves report.

Pros:
  • Kraken’s intuitive trading interface also appeals to beginner investors
  • It maintains highly competitive fees for active/large-volume traders
  • It offers secure crypto custody services
  • Kraken is a very transparent crypto exchange
Cons:
  • It charges punitive fees when you buy cryptos instantly with cards
  • Kraken no longer offers staking or lending services to Colorado residents

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

3. Coinbase – Safest Crypto Exchange in Colorado

Coinbase wallet apps have suffered several security breaches that resulted in the loss of investor funds. Nevertheless, we believe Coinbase to be the most secure crypto exchange to buy cryptocurrency in Colorado. It has not only sealed past security loopholes but also has launched bug bounty programs for its code. It has also introduced multiple client-side security measures, including 2FA and whitelisting addresses.

Best Crypto Exchange in Colorado

To keep your cryptos safe, Coinbase stores 98% of all private keys in its custody in offline vaults. It then insures the remaining 2%. The exchange also insures all its client’s cash deposits with the FDIC –up to $250,000. Investors who seek more control and access over their coins may use the self-custody Coinbase mobile wallet app.

You would also want to know that Coinbase is more than a secure exchange. It is one of the best crypto exchange sin the US for beginners. It earned this spot by operating an easily navigable trading interface and availing educational resources. These resources include the Learn-to-Earn program that gives free cryptos to its platform users.

Coinbase also appeals to expert traders and institutional investors on its platform. It has even come up with the Coinbase PRO app and OTC trading platforms for this class of investors. On either platform, users have access to highly advanced trading tools, deep liquidity, and competitive fees.

Pros:
  • Coinbase is simple to use and lists all the popular cryptos
  • Regulated by the SEC and CFTC and is also listed with the NASDAQ
  • Offers crypto-staking services to Colorado state residents
  • You can margin trade crypto derivatives on the platform
Cons:
  • Coinbase charges high crypto trading fees
  • The exchange has been accused of operating a sluggish support team

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

4. Robinhood – Best Place to Buy Cryptos in Colorado Commission Free

Robinhood claims that when you buy cryptos on the platform, you carry home more coins than you would have when buying at another exchange. To be precise, they claim, you stand to take home up to 3.5% more cryptos. This generosity is attributable to the fact that it charges no trading fees. On the other hand, some top exchanges charge as much as 3.5% crypto trading fees.

Robinhood Crypto Assets

We feature Robinhood among the best crypto exchanges to buy cryptocurrency in Colorado because it is a commission-free platform. You pay no trading fees when you buy Bitcoins and other cryptos on Robinhood. We also list it here because of its beginner friendliness. This is evidenced by its straightforward client onboarding and crypto buying processes.

You will also to buy cryptos on Robinhood because it is safe crypto brokerage. It provides all investors with an ultra-safe custodial wallet that holds most of your coins offline. It also presents you with a non-custodial but equally safe Web3 wallet app. Further, it insures cryptos held in their vaults against theft and other cybersecurity breaches.

At the time of writing, you can interact with 11 of the best altcoins to buy on Robinhood. And you only need $1 to start investing, which can be deposited via cards or bank. Further, Robinhood encourages investors to embrace the dollar cost-averaging strategy and automate recurring investments of as little as $1.

Pros:
  • Robinhood integrates advanced trading tools that appeal to expert traders
  • You can create a diversified portfolio featuring cryptos and traditional assets on Robinhood
  • You can create tax-advantaged IRA accounts on Robinhood
  • Customer support is available 24/7
Cons:
  • A limited number of supported cryptos
  • Offers traders limited research and analysis tools

5. Uphold – Best Multi-Asset Crypto Brokerage in Colorado

Uphold is a regulated crypto trading platform in the US. We feature it here as our top choice for multi-asset trading platforms in Colorado. It also makes it here because, at 260 virtual currencies, it lists more cryptos than any other exchange on this list. This means that you get exposure to not just the most searched cryptos in the US. You also access the relatively new coins as well as the next cryptos to explode.

Multi-Asset Trading Platform in Colorado

The client onboarding process on Uphold is quick and straightforward. The platform has also popularized the anything-for-anything model that lets you buy one asset with any other supported asset. This trading process is also quick and straightforward. Uphold is also listed here because we appreciate its liquidity and fast transaction processing speeds. These qualities even helped endear it to pro traders.

The only major downside to buying cryptos on Uphold are its not-so-competitive fees. The cost of buying stablecoins on Uphold, for example, is fixed at 0.25%. Bitcoin and Ethereum trades are, on the other hand, charged a transaction fee of between 1.4% and 1.6%. The cost of trading any other altcoin on Uphold ranges between 1.9% and 2.95%.

However, several other factors may convince you to still use the Uphold platform. First is the fact that it has a responsive and readily available support team. It is also a safe crypto trading platform that doesn’t lend your crypto or share personal data with third parties. It also supports passive investing, allowing you to earn as much as 14% interest annually on select cryptos.

Pros:
  • Automate crypto investing using the DCA strategy
  • It integrates several passive investing tools
  • Uphold has an interactive mobile trading platform
  • You can also buy metals and foreign currencies on Uphold
Cons:
  • No crypto derivatives trading on Uphold
  • Charges high crypto withdrawal fees

6. BitStamp – Best Crypto Exchange in Colorado for Low Fees

Today, you can buy and sell 100+ of the hottest cryptos on BitStamp. And you only need $10 to start trading. When trading any of these virtual currencies, you will be charged a volume-based maker/taker fee of between 0% and 0.4%. Note that the platform supports all the popular deposit methods. Deposits are free, but withdrawals attract a variable transaction fee depending on the preferred payment method.

Bitstamps Crypto Exchange

In addition to charging low fees, BitStamp has integrated tools and features that help it appeal to both beginner and active traders. It, for example, has a straightforward onboarding process. It also integrates both educational materials and advanced tools. Beginners, for examples, can learn how to buy cryptos on BitStamp. Pro traders are, on the other hand, treated to advanced charting tools and technical indicators.

Note that we didn’t just add BitStamp to this list because it is easy to use and affordable. Several other factors convinced us that it is the best trading platform to buy cryptocurrency in Colorado. These include the fact that it provides institutional-grade safety to client funds by holding 95% of their private keys offline. We also appreciated its proven reliability when it comes to site uptime.

Pros:
  • It lets you whitelist addresses and confirm transactions
  • BitStamp is a multi-platform trading exchange
  • The exchange lets you automate recurring crypto investments
  • BitStamp is a safe crypto trading platform
Cons:
  • No margin trading or crypto derivative trading on BitStamp
  • Crypto staking or lending is not available to Colorado residents

Is Crypto Investing Legal in Colorado

We have already mentioned that Colorado is a crypto-friendly state. Like the rest of crypto friendly states, Colorado has come up with several progressive pieces of legislature. In coming up these laws, the state, too, hopes to create a balance promoting innovation and protecting its citizenry. The most impactful yet has to be The Colorado Digital Token Act passed in 2019.

Is Crypto Investing Legal in Colorado

The act provides a definition of a digital token. It also amends the existing Securitas Act that requires all securities offered in the state to be registered. The act, therefore, lays conditions that a virtual currency has to meet for it to be exempt from registration as a security.

Crypto exchanges operating in the state are licensed by the Colorado Department of Regulatory Agencies (DORA). The body oversights these platforms and other crypto related businesses to ensure they comply with the state’s money transmission laws. One of these laws demands that exchanges subject their platform users to proper KYC and AML checks.

Crypto Taxes in Colorado

Colorado doesn’t have state-specific crypto taxation laws. Instead, it follows the federal guidelines issued by the IRS with regards to the treatment of digital assets. The IRS, for instance, classifies cryptos as property. This implies that general tax principles applicable to property apply to crypto transactions in Colorado.

At the state level, Colorado imposes a flat tax rate on your capital gains on crypto incomes. In addition to this, you will need to file federal taxes with the IRS.

Practical Tips for Buying Crypto and Bitcoin in Colorado

There are a few tips and tricks that, if correctly applied, can make your crypto investing journey wildly successful. We look at the five most practical in this section:

  • Consider DCA strategy: Dollar cost averaging has, over the years, proved to be one of the most effective investing strategies. Use it to reduce emotional buying or selling. It also comes in handy in helping eliminate the impact that bad timing may have on your capital.
  • Do your own research: Before adding a coin to your portfolio, do your own thorough research about that asset. Check its past price performance, confirm its tokenomics, and assess market sentiments. You will also want to consult independent analysts to get an understanding of its expected future performance.
  • Master risk management: Managing risks starts with only investing what you can afford to lose. It then extends to understating and proper use of risk management tools such as stop loss and take profit. It also involves learning how to interact with leverage.
  • Understand market cycles/trends: You stand to grow your capital by 10x or even 100x when you master market cycles and trends. Understanding a market cycle is the secret behind known when to enter a buy or short position.
  • Diversify your portfolio: You will also need to diversify your portfolio. Note that while BTC and ETH are great inflation hedges, they won’t grow your capital as fast as meme coins and new cryptos.

How to Buy Cryptocurrency in Colorado Walkthrough

In this section, we detail the crypto buying process on eToro, which we briefly outlined at the start of this post.

Here’s the step-by-step guide on how to buy cryptocurrency in Colorado for beginners on eToro.

Step 1: Open an Account

Open the official eToro.US website or download the eToro mobile trading app. Click on the “Join Now” icon on either tab and complete the registration form that pops up here. The exchange will ask for basic personal information, your income sources, disposable income, and trading experience. You will also need to come up with a unique username and strong password for this account.

Step 2: Verify your Identity

You can only start trading cryptos on eToro after you have verified your identity. This involves sending a clear photo of your driver’s license, state ID, or passport.

Step 3: Deposit Funds

Log in to the approved eToro trading account and hit the “Deposit Funds” icon. A funding tab that shows you all available payment methods will pop up. Select one payment option and follow the prompts to deposit at least $10 into eToro.

Step 4: Select a Cryptocurrency to Buy

eToro is home to all the major crypto assets. Hit the “Discover” tab and select Cryptos. A list of all virtual currencies supported on eToro will pop up. Identify the best crypto to buy for you from this list and click on the “BUY” option.

Step 5: Make your Purchase

A trading tab will pop up and you may use it to customize this crypto investment. You only need to indicate how much of the crypto you intend to buy and hit the “Open Trade” button to execute the investment.

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

Note: eToro will immediately deposit the private key for the crypto you just bought into the brokerage-provided exchange. However, you can only move these assets to a third-party platform by first transferring them to the eToro Money wallet app. eToro doesn’t accept direct crypto deposits. Neither does it support crypto withdrawals to third-party exchanges or wallets.

How to Sell Cryptos in Colorado

Selling crypto doesn’t have to be complicated. It is as quick and straightforward as the crypto-buying process. We outline the step-by-step guide to selling cryptos on eToro below:

  • Step 1: Start by logging back into your eToro trading account.
  • Step 2: Click on the “Portfolio” tab on your user dashboard. This shows you all the cryptos that you have invested in via the eToro brokerage.
  • Step 3: Identify the digital asset you want to sell and hit the red “Close” icon.
  • Step 4: On the tab that pops up, customize this trade by indicating how much you wish to sell. You can dispose of a portion of this asset or choose to close the entire trade. Hit the “Close Trade” button to sell the cryptos.

Note: The cash equivalent of the cryptos you just sold will be deposited into your eToro cash account. You may choose to use these funds to invest in top trending cryptos hosted on eToro. Alternatively, you can withdraw the funds.

Conclusion

In this guide on how to buy cryptocurrency in Colorado, we covered the basic steps you’d need to take to make your first crypto purchase, ranking from opening an account to making your first buy.

We have established that Colorado is a crypto-friendly state. We have also established that it is home to all the popular crypto trading platforms in the country. To help you identify the best exchange for you, we have reviewed what our analysts consider the best altcoin exchanges in the state. We have also discussed crypto regulation and state taxation policies.

Do you want to start buying cryptos in Colorado? Follow the step by step to buying cryptos on eToro that we have outlined above.

More States Buying guides on Crypto2Community

References:

  1. https://www.theguardian.com/us-news/2022/mar/01/colorado-tax-payments-cryptocurrency
  2. https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/BitcoinFuturesETF.html
  3. https://leg.colorado.gov/bills/sb19-023
  4. https://dora.colorado.gov/

FAQs

What is the best crypto exchange in Colorado today?

Top on our list of the best crypto trading platforms in Colorado is eToro. We appreciated its beginner friendliness, the fact that it is easier to use, has a transparent fee structure, and is regulated.

Bitcoin is a good long term investment because it has potential for future growth and a good hedge against volatility. Proper short term crypto investments would include such meme coins as Shiba Inu, Bonk, and ApeCoin.

Safe crypto investing starts with only investing what you can afford to lose. You also need to pick a safe and highly reputable crypto trading platform. But even more importantly, invest in the most reliable hardware wallet.

To find the best crypto in Colorado, you need to consider such factors as their crypto library, trading fees, liquidity, safety, and ease of use.

Yes, cryptocurrencies are legal in Colorado.

No, Binance.US does not accept Colorado residents.

Yes, Crypto.com is available in Colorado today.