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

In this post, we dive into the world of crypto in Iowa. The Hawk Eye State has maintained a neutral stance when it comes to crypto regulation and taxation. This impartial approach to the digital assets has spurred the growth of a thriving crypto industry. This is evidenced by the fact that virtually all the popular altcoin exchanges in the US have set base in the state.

By the end of this guide, you will have learned about these exchanges and decided the best place to buy cryptos for you. You will also have learned the capital gains tax rate for crypto profits. Even more importantly, we will have taught you how to buy cryptocurrency in Iowa in 2024.

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

Here is an overview of the crypto buying process on eToro, the SEC-regulated crypto brokerage. It is straightforward, and you can start buying Bitcoins and other cryptos here in five minutes at as little as $10.

• Step 1: Create a free trader account: Hit the “Join Now” button on the eToro home page and complete the registration form that appears. You will also need to verify your identity and come up with a username for this account.
• Step 2: Deposit: You need to deposit at least $10 before you can start trading. The supported deposit methods include PayPal, credit cards, debit cards, ACH Checks, and wire transfers.
• Step 3: Choose the best crypto to buy: eToro is home to 20 +of the best future cryptos. Identify the best crypto for you from this list and select the “BUY” option.
• Step 4: Buy Cryptos: Use the trading tab that appears here to customize this investment by indicating how much you wish to invest in the coin. Hit the “Open Trade” button to buy the digital asset.

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 this crypto-buying process in detail further below. Before that, though, we need to understand what the most popular cryptos are in Iowa. We will also provide you with an overview of what our analysts consider the best altcoin exchanges in Iowa today.

The Most Popular Cryptocurrency to Buy in Iowa

Determining the popularity of different cryptos in a specific region, like Iowa, can be challenging because data sources about their use and ownership are scanty. However, our analysts have considered alternative data sources in an attempt to gauge crypto popularity in Iowa accurately.

The sources include search engine trends, social media trends, and trade volumes on local exchanges. We also checked cryptocurrency ATM installations in Iowa and their supported coins. Ultimately, we settled on the following as the most searched and most traded cryptocurrencies in the Hawk Eye State:

• Bitcoin (BTC)
• Dogecoin (DOGE)
• Ethereum (ETH)
• Cardano (ADA)
• Shiba Inu (SHIB)
• Polygon (MATIC)
• Pepe (PEPE)
• Bonk (BONK)
• Litecoin (LTC)

Where to Buy Cryptocurrency in Iowa

There currently are more than 10 crypto trading platforms operating in Iowa today. These have varied features that make them appeal to different classes of investors. Some have their key strength as the ease of use, educational resources, security, and wallets, which make them beginner-friendly.

Others include have such core strengths liquidity, trading tools, processing speeds, and a large crypto library. They may also have over the counter trading platforms. And all these help them draw in active traders and institutional investors.

Below, we provide you with an overview of the best exchanges to buy cryptocurrency in Iowa.

1. eToro –  The Overall Best Crypto Exchange in Iowa

eToro has been around since 2007, though it only started offering crypto trading services in the US in 2019. Over this period of time, it has positioned itself as the best place to buy cryptos for all classes of investors.

It draws investors in with such features as a large crypto library, which features all the best cryptos to buy for beginners. Its deep liquidity endears it to institutional investors, while the fast transaction processing speeds draw in active traders.

eToro has also positioned itself as the best place for investors to keep their assets safe. It provides everyone with a free web wallet that holds as much as 95% of their assets offline. Your cash deposits into eToro are also insured, up to $250,000, with the FDIC. And if you are want greater control and access to your cryptos, you get its free crypto wallet – the eToro Money App.

The brokerage has also made crypto investing on its platform affordable. For instance, you only need a minimum of $10 to start buying Bitcoins and all the top cryptos on eToro. The transaction fees on the platform are also transparent and fixed at 1% of the trade volume.

Other factors making eToro the best trading exchange to buy cryptocurrency in Iowa include the fact that it has never been hacked. Additionally, it is regulated by the SEC and has a Money Service License from the Iowa Division of Banking. It also has a solid reputation for reliability, customer service, and ease of use. Not forgetting that it is also a multi-platform exchange, allowing you to trade on the move via its mobile trading app.

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

2. BitStamp – The Best Place to Actively Trade Cryptos in Iowa Today

Three key factors make BitStamp the best crypto exchange for active traders in Iowa today. First is its comparatively sizeable crypto library. Today, you can trade 100+ coins, including the most volatile cryptos on BitStamp. You also get to interact with 400+ crypto pairs, and you only need $2 to buy any of these assets.

Secondly, BitStamp is deeply liquid and maintains some of the fastest transaction processing speeds. It ranks among the 10 most liquid exchanges in the US and has some of the deepest Bitcoin reserves. Additionally, it presents you with one of the most advanced crypto trading platforms – the BitStamp PRO. This features close to 100 advanced trading, technical indicators, drawing, carting, and risk management tools.

But BitStamp doesn’t just appeal to expert traders. It has also made it possible for beginners and institutional investors to use its platform. To achieve this, it has oversimplified the account registration and the crypto buying processes. It also integrates educational resources on its trading platform and supports all the popular deposit methods.

BitStamp is also a good place to trade cryptos because it maintains competitive trading fees. When you buy Bitcoins on BitStamp, for example, you will pay a volume-based maker or taker fee of between 0.4% and 0%.

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

3. Coinbase – Buy Cryptos on the Most Liquid Exchange in Iowa

Coinbase is the most liquid crypto exchange in the US. It also holds more Bitcoin and Ethereum currencies that any exchange in the US. Such liquidity and fast transaction processing speeds offer a minimal to no slippage guarantee when buying cryptos on Coinbase. These make it one of the best crypto exchanges for active traders and institutional investors.

Interestingly, though, the publicly listed crypto exchange has sought to endear itself more with beginner investors. However, while it has several special programs dedicated to active traders and institutions, the site is designed with newbies in mind. It, for example, has a quick onboarding process and features a rich educational resource. It also lets you buy cryptos with $2 and maintains a highly navigable interface.

Coinbase also presents users with simple tools that help them earn crypto passively. You, for example, can stake some of the most popular cryptos on Coinbase and earn higher interest, up to 5.6% annually. This is much higher than is offered by most banks on savings. You also earn free cryptos if you participate in the Coinbase Learn-to-Earn program.

Other factors making the decade-old crypto exchange a darling for Iowa crypto investors include its safety. It promises to hold 98% of your crypto assets offline and insure the remaining 2%. It also provides you with a free mobile wallet app that gives you greater control of your coins. As is the case with most regulated exchanges, Coinbase will also insure your cash deposits – up to $250,000, with the FDIC.

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

4. Crypto.com – Buy 350+ Cryptos and Earn Double Digit Interest Via Passive Investing

Crypto.com exposes you to more digital assets than any other crypto exchange on this list. Today, you can buy and sell 350+ coins on the highly reputable trading platform. And if you use the Crypto.com DeFi wallet, you get access to thousands of the best DeFi coins, dApps, and web3 programs. You also get to interact with the most popular NFTs on its integrated NFT marketplace.

In addition to having a large crypto library, Crypto.com is also a good fit for anyone looking to earn passively. The exchange presents you with multiple passive income-generating programs. You, for example, get a cashback of up to 8% when you pay for goods and services with the Crypto.com Visa card. You also get up to 10% in annual interest for staking stablecoins on the platform.

Investors can start buying Ethereum and some of the most sustainable coins on Crypto.com with $1. The supported payment methods include cards, bank transfers, and eWallets like PayPal and Google Pay. These trades attract highly competitive fees that range between 0% and 0.075%.

Other factors making Crypto.com the best place to buy cryptocurrency in Iowa include its ease of use. The exchange provides you with a web trader and mobile trading app. Both platforms are feature-rich and easily navigable. Additionally, Crypto.com is a safe crypto trading platform that has never been hacked.

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

5. Kraken – Buy Top Trending Cryptos on the Safest Crypto Exchange in Iowa

If you are looking to buy coins on the most trustworthy altcoin exchange in Iowa, consider Kraken. The trading platform has never been hacked or lost crypto funds. It has put in place multiple security features that keep your digital assets and personal information safe. These include offline vaults to hold your crypto, multi-factor authentication for user accounts, and audited proof of reserve reports.

You will also want to use Kraken if you are looking for a large crypto library. Here, you will interact with 200+ virtual currencies. These include the most undervalued cryptos that appeal to long-term investors and beginners. You will also have access to the best meme coins to buy for short-term traders.

Note that you only need $1 to start buying the next cryptos to explode and other cryptos on Kraken. The exchange also allows users to buy cryptos instantly with cards. The crypto trading fees are volume-based and range between 0% and 0.4% for spot trades. For instant trades, you may pay up to 4%, depending on your preferred payment method.

You would also want to use Kraken because it presents you with multiple crypto-buying methods. These include spot crypto trades, margin trading, and even crypto NFTs. It also presents you with multiple crypto trading platforms. These include the web trader, the crypto trading mobile app, and the Kraken PRO app. Institutional investors get to use the OTC platform, also known as Kraken Dark Pool.

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

6. Robinhood – The Best Place to Buy Cryptos for Beginners in Iowa

Robinhood was created with the sole aim of democratizing finance. The platform is designed to offer a level playing field in the world of finance. It hopes to make it possible for the average user to access the same investment products as a Wall Street hedge fund manager. The exchange started by offering traditional assets before eventually embracing Bitcoin and 10+ other popular cryptos.

But Robinhood is listed here not just because of the disruptive force it has brought to the market. It lists here because it is easy to use, commission free, and doesn’t have a minimum deposit or trade limit. All these help make it the most beginner-friendly crypto trading platform in Iowa today.

May we add that you get to take home more coins when using Robinhood than you would when using another exchange. When buying cryptos instantly on the likes of Coinbase or Kraken with cards, you will pay as much as 4% in fees. But Robinhood doesn’t charge a trading fee. This implies that you get to take home as much as 4% more crypto than you would when using the likes of Coinbase and Kraken.

Robinhood will also provide these beginner investors with crypto custody services. It also promises to hold the vast majority of your assets offline. In addition to these, it offers educational resources that teach one how to invest in cryptos. Plus, it also integrates an extensive FAQs section on its website and the support team is also available 24/7.

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

Is Crypto Investing Available in Iowa

Yes, crypto investing available and legal in Iowa. As we mentioned earlier in this article, Iowa has embraced a neutral stance towards crypto regulation. This implies that the state is yet to pass a bill that legalizes or outlaws cryptos, crypto investing, or crypto exchanges. Like most of the states across the country, Iowa adheres to the federal guidelines that apply to cryptos.

We also noticed that Iowa’s finance regulators are yet to issue guidelines or policies about treatment of virtual currencies. Some states like Kansas, Florida, New York, and more have all expanded their definition of money transmitter to include entities handling cryptos. The Iowa State Division of Banking is yet to issue policy guideline on treatment of businesses that deal with virtual currencies.

Virtually all the crypto exchanges approved to operate in the US can set base in Iowa. Additionally, Iowa state residents are free to buy, sell, stake, and use cryptos as a cash alternative. A growing number of both Main Street and online stores currently accept crypto as payment for goods and services.

Crypto Taxes in Iowa

Iowa has yet to enact laws that address crypto taxation in the state. Instead, it abides by federal tax laws and guidelines. This implies that digital assets are treated as property for tax purposes in Iowa. You, therefore, are obliged to pay capital gains tax for profits earned from crypto investing.

The rate of tax in Iowa ranges between 4.4% and 5.7%, depending on your tax bracket. In addition to the state taxes, you are also required to pay federal taxes as dictated by the IRS.

Practical Tips for Buying Bitcoin and Top Cryptos in Iowa

In this section, we go over a few tips for crypto investing. We share with you practical tips that others have used in the past to make their trades successful. Some of these have also helped them keep their digital assets safe. They include:

Invest what you can afford to lose

The rule of thumb in crypto investing is that you should only invest in what you can and are willing to lose. Understand that while cryptos outperformed other asset classes in the last decade, they are extremely volatile. They have the potential to gain or lose significant value in a short period of time. Therefore, understand your disposable income and only invest what you are willing to lose.

Use dollar cost averaging

Dollar Cost Averaging (DCA) involves making small, recurrent, and scheduled crypto buys over an extended period of time. It is one of the most effective long-term investment strategies and you will need to embrace it for two reasons. First, because it is almost to time the market. Secondly, it helps you eliminate emotions from your trades.

Vet cryptos before buying

You need to conduct thorough research on each and every crypto before adding it to your portfolio. You will especially want to ensure that it has solid fundamentals, which give it a sustainable future. Traders and investors will also want to check its past price action, trade volumes and market cap. Use reputable crypto data aggregator sites when researching different coins.

Invest in cold wallets

We encourage our readers not to leave their cryptos at an exchange. In the past, investors have lost billions of dollars worth of crypto held in seemingly safe exchanges due to misappropriation and security breaches. Good examples of exchanges that have lost client funds are Mt Gox and, most recently, FTX.

Invest in coins that align with your goal

Before buying your first crypto, understand your crypto goals and motivations behind the investment. If you are looking for short term wins, go for moderate to high risk cryptos like meme coins and DeFi coins. But if you are looking to invest over the longer term, invest in the more promising and sustainable cryptos like Bitcoin, Ethereum, and Cosmos.

Learn about crypto scams

Over the years, multiple scams that seek to take advantage of investor greed have cropped up. These include pyramid schemes, phishing, fake ICOs, and pump and dump schemes. Learn about these scams, know how to spot them as well as how to avoid them. This is one of the most effective risk management hacks out there.

How to Buy Cryptocurrency in Iowa Walkthrough

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

Step 1: Register a Crypto Trading Account

Start by opening the official eToro.US website on your browser. You may also choose to download the eToro mobile trading app. Click the “Join Now” button on either platform and a registration form will appear. It will ask for such basic information as your name, phone number, email address, residence, income sources, disposable income, and trading experience. You will also be asked to create a unique username and password for this account.

Step 2: Verify your Identity

You will need to verify your identity before you can start trading. Simply submit a clear photo of your government-issued identification document, such as your state ID, driver’s license, or passport. You will be notified of account approval via email.

Step 3: Deposit Funds

You will also need to deposit funds into this trader account. Hit the “Deposit Funds” icon to bring up the funding tab. This lists all the payment options available to you. Choose one deposit option and follow the prompts to deposit at least $10.

Step 4: Identify the Best Crypto to Buy

Once the payment reflects in your trader account, hit the “Discover” button to bring up the list of supported digital assets. Select “Cryptos”, and a list of digital assets supported on eToro will pop up. Identify the crypto to invest in and hit the “Buy” icon against it.

Step 5: Buy Crypto

A trading tab will appear and you will need to use it to customize this investment. Simply indicate how much you intend to invest in the digital asset. 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: The private keys for the coins you just bought will be deposited into the eToro-provided web wallet. You are free to move them to a third-party wallet or exchange. But this will only be possible if you first move them to the eToro Money wallet app. The transfer will be charged a 0.5% fee (capped at $50).

How to Sell Cryptos in Iowa

This section walks you through the process of selling Bitcoins and other cryptos on eToro. The process is equally quick and straightforward.

• Step 1: Start by logging back into your eToro trader account.
• Step 2: Hit the “Portfolio” icon on your user dashboard to bring up the list of crypto you have bought on eToro.
• Step 3: Identify the virtual currency you wish to sell from this list and hit the “SELL” option against it.
• Step 4: On the trading tab that appears, indicate whether you want to dispose of a fraction of the asset or liquidate this position. Hit the “Close Trade” button to sell these assets.

Note: The cash equivalent of the cryptos you just sold will be deposited into your eToro cash account. You are free to withdraw the funds. Alternatively, use it to buy more cryptos on the trading platform.

Conclusion – Buying Cryptocurrency in Iowa

Iowa’s neutral stance towards cryptos has made it possible for all crypto exchanges to set camp here. In the above guide, we have introduced you to our top picks for the best places to buy digital assets in Iowa. You are now also better informed about crypto regulation and taxes in the state. We have even shared tips and tricks that you need to inject into your trading journey.

Are you ready to buy your first crypto? Follow the step-by-step guide to crypto investing that we have outlined above.

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

More States Buying guides on Crypto2Community

• How to Buy Cryptocurrency in New Jersey
• How to Buy Cryptocurrency in Nevada
• How to Buy Cryptocurrency in Maryland
• How to Buy Cryptocurrency in Illinois
• How to Buy Cryptocurrency in Hawaii
• How to Buy Cryptocurrency in Georgia
• How to Buy Cryptocurrency in California
• How to Buy Cryptocurrency in North Carolina
• How to Buy Cryptocurrency in Colorado
• How to Buy Cryptocurrency in New York
• How to Buy Cryptocurrency in Washington
• How to Buy Cryptocurrency in Connecticut
• How to Buy Cryptocurrency in Delaware
• How to Buy Cryptocurrency in Idaho
• How to Buy Cryptocurrency in Indiana
• How to Buy Cryptocurrency in Kansas
• How to Buy Cryptocurrency in Louisiana
• How to Buy Cryptocurrency in Kentucky
• How to Buy Cryptocurrency in Arizona

References:

1. https://x.com/ArkhamIntel/status/1705254948324233270?s=20
2. https://www.bankrate.com/banking/savings/average-savings-interest-rates/
3. https://idob.iowa.gov/
4. https://revenue.iowa.gov/press-release/2023-10-25/idr-announces-2024-individual-income-tax-brackets-and-interest-rates
5. https://www.forbes.com/sites/ktorpey/2020/04/13/the-bitcoin-price-has-outperformed-all-other-major-asset-classes-over-the-past-year/