How to Buy Cryptocurrency in Kentucky in 2024

Kentucky joins the likes of Texas, Georgia, and New York in having one of the highest Bitcoin hash rates. The states have also passed several pro-crypto bills, some of which are aimed at making electricity affordable for miners. These have helped the Bluegrass Stacointe rank highly among the most crypto-friendly states in the country.

In this guide, we will show you how to buy cryptocurrency in Kentucky. We will start by reviewing the top crypto trading platforms operating in the state. We will also discuss crypto regulations passed here and tell you whether profit from crypto investing is taxed in Kentucky.

Read on.

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

The quick four-step guide below, shows you how to buy cryptocurrency in Kentucky with an SEC-regulated crypto brokerage: eToro. It also supports fractional crypto investing, allowing you to start buying cryptos with only $10.

• Step 1: Create a free crypto account – Start by hitting the “Join Now” on the eToro website or mobile trading app. Complete the registration form that appears here and create login credentials for this account.
• Step 2: Deposit funds – To begin buying cryptos on eToro, you first need to fund this account with at least $10. The payment may be made using such supported payment methods as PayPal, credit cards, debit cards, ACH checks, bank wire transfers, Google Pay, or Apple Pay.
• Step 3: Identify the best crypto to buy – eToro will present you with 20+ of the most popular cryptos in the US. Vet these assets and identify the best crypto to buy for you.
• Step 4: Start buying cryptos – Hit the ‘BUY’ option against the preferred coin to bring up the trading tab. Use this tab to customize the trade and indicate how much you intend to invest.

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

We will be providing you with a more detailed walkthrough of the crypto buying process. We will also tell you about the most popular coins in Kentucky and share tips that could help you succeed as a crypto investor. In addition to these, we introduce you to what our analysts and investors in Kentucky consider the best places in Kentucky for the different classes of investors.

Most Popular Cryptocurrency to Buy in Kentucky

Bitcoin and Ethereum are by far the most popular and most searched cryptos in Illinois. They top crypto discussions on different social media forums in the state and are the most traded on the exchanges. Their adoption as a payment method and cash alternative among businesses and individuals has also been on the rise.

But these aren’t the only cryptos that the digital assets the Bluegrass State residents have been adding to their portfolios. Other coins whose popularity has been surging in the state include:

• Dogecoin (DOGE)
• Bitcoin Cash (BCH)
• Litecoin
• Ripple (XRP)
• Pepe (PEPE)
• Tether USD (USDT)
• Toncoin (TON)
• Solana (SOL)
• Tron (TRX)

Where to Buy Cryptocurrency in Kentucky

Whether you are a seasoned investor or simply looking to dip your hands into the crypto world, you will find a suitable exchange in Kentucky. Below, we have reviewed what we consider the best crypto exchanges in the Bluegrass state. They are all easy to use, deeply liquid, and support a decent crypto library.

1. eToro – The Overall Best Crypto Exchange In Kentucky

A number of factors help make eToro our top pick for the best digital exchange to buy cryptocurrency in Kentucky. You will want to register with eToro exchange if you are looking for the fastest transaction processing speeds. You will also want to register with the popular social digital currency exchange if you are looking for a safe crypto trading platform. Simply put, eToro has positioned itself as the best all-round crypto exchange in Kentucky.

It has oversimplified the crypto-buying process on its platform. It has also popularized revolutionary copy and social trading features. Copy trading ensures that both newbies and expert traders on the platform earn passively. The social investing platform, on the other hand, makes it possible for traders on the platform to interact, learn, and even share strategies.

The only downside to using eToro is its trading fees. When buying Ethereum and other cryptos on eToro, you will be charged a fixed fee of 1% of the trade volume. This is higher than is charged on equally user-friendly exchanges. We must, however, observe that the SEC-regulated exchange is highly transparent. There are no hidden fees, and you can view the total cost of the trade before hitting the buy/sell button.

Other upsides to using eToro include the fact that it is a multi-platform exchange. It also provides users with two free digital wallets: the exchange-based wallet and the mobile wallet app. It also supports a decent number of coins, exposing you to not just the best cryptos to buy for beginners but also the next cryptos to 100x.

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

2. BitStamp – Top Crypto Exchange with an Advanced Trading Platform

BitStamp is a multi-platform crypto trading exchange, and you will want to buy cryptos here if you are looking for advanced tools. The exchange provides you with BitStamp Pro, a dedicated crypto trading platform. This gives you access to more than 100 advanced trading and analysis tools. Among its top features include the portfolio management tool and the BitStamp Pro mobile app.

In addition to this you can use the BitStamp mobile trading app as well as a BitStamp web trader. They all are easy to use with an intuitive interface and instant deposit options. They have also proved their reliability with an industry leading uptime. Not forgetting that the platform has a quick and straightforward account creation process.

Several other factors help make BitStamp one of the best exchanges to buy cryptocurrency in Kentucky. It, for starters, has a highly responsive support team that is available over the phone and live chat. It also supports all the popular deposit payment methods. You even get to withdraw your crypto directly to your bank. Not forgetting that you get to interact with 100+ of the best cryptos to buy in the US.

Additionally, BitStamp supports dollar-cost-averaging, allowing you to set up automated crypto-buying orders. It also maintains competitive crypto trading fees. When buying Bitcoin on the platform, for example, you will be charged between 0% and 0.40%. This fee is based on a 30-day trading volume and is charged on both buy and sell orders.

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

3. Coinbase – The Most Liquid Crypto Exchange in Kentucky

Established in 2012, Coinbase is the most successful of the oldest crypto exchanges operating in the US. It not only has the highest number of users but also some of the deepest Bitcoin reserves. But it makes it here primarily because it is the most liquid exchange in Kentucky.

In addition to Bitcoins and Ethereum, the Coinbase exchange lists close to 100 other assets. This implies that you get to interact with not just the most undervalued cryptos but also the most searched coins. The exchange also processes both deposits and crypto trades quickly. Plus, you only need a minimum of $2 to buy any of the cryptos supported on Coinbase. 

Coinbase is also listed among the safest crypto exchanges in Kentucky. It even provides you with an ultra-secure exchange-based wallet as well as a mobile wallet app for iOS and Android. Recently, the exchange introduced the Coinbase dApp wallet, which gives you access to web3 programs, dApps, and DeFi platforms.

There are three primary ways of making money on the Coinbase exchange. The most popular is trading or investing in popular digital assets. You can also make money by staking supported digital currencies. Lastly, you can make money by interacting with the Coinbase Learn-to-Earn program. This rewards users with free crypto when they learn about different cryptos and blockchain technologies.

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

4. CEX.IO – Buy Cryptos on The Most Trustworthy Exchange in Kentucky

The Cex.io trading platform has been around for over a decade. During this time it has cultivated a reputation for reliability and safety. It has maintained an industry-leading uptime and has never lost client funds. It has put in place several measures aimed at keeping user funds safe. These include holding 90%+ of client assets offline and requiring users to activate multi-factor authentication.

The trading platform will also provide you with free mobile wallet app for iPhone and Android devices. This wallet does more than give you absolute control over your digital assets. You may also use it to track your portfolio and keep tabs on the crypto market. And these make CEX.io one of the most secure trading platforms to buy cryptocurrency in Kentucky.

In addition to safety, CEX.io is a great platform for long-term investors. It not only gives them access to the most undervalued coins as well as the most sustainable cryptos. It also supports passive investing. Today, you can stake 10+ digital assets on CEX.io and earn as much as 15% in annual interest.

May we add that the exchange also maintains one of the most intuitive crypto trading platforms. It is easy to use for newbies and integrates enough advanced trading tools to draw in pro traders. It is also deeply liquid and maintains fast transaction processing speeds. Plus, it exposes you to multiple ways of buying coins. You can, for instance, buy Bitcoin and other cryptos instantly with PayPal, Apple Pay, and cards.

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

5. Crypto.com – The Best Crypto Exchange for Low Fees

Active traders looking for the lowest crypto trading fees in Kentucky are better off registering with Crypto.com. When buying Bitcoin and other coins on the exchange, you will pay a volume-based maker/taker fee. This ranges between 0% and 0.075%.

In addition to low fees, several other factors make Crypto.com the best exchange for active traders. These include the fact that it gives you access to 350+ digital currencies. It has also introduced a form of crypto derivative trading, referred to as strike options. It also has low trade and deposit minimums and integrates multiple advanced trading and risk-management tools on its platform.

You would also want to use Crypto.com because it is a multi-platform exchange. You get to use the web trader on your PC and monitor your portfolio on the move with the Crypto.com trading app. Both platforms are easy to use and integrate all the important features. Other that these two, there is also the Crypto.com DeFi Wallet. This exposes you to the world of DeFi, dApps, and the mushrooming Web3 ecosystem.

You will also want to use Crypto.com because it maintains a responsive support team over the phone and live chat. It is also a good fit for investors who want to diversify their portfolio by including NFTs. Long term investors are also provided with the automated recurring buy tool. Not forgetting that it is a secure and regulated exchange.

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

6. Binance.US – Popular Exchange with One of the Best Crypto Trading Mobile Apps

Binance.US is a massively popular crypto exchange, famed for its ease of use. It has highly intuitive trading platforms and maintains one of the best crypto trading mobile apps. The app is available on both Google Play Store and Apple Store where it enjoys high ratings and outpouring of positive reviews.

In addition to the app, Binace.US has a web trader that exposes you to tens of advanced trading and risk-management tools. These platforms and tools can be used to trade the 100+ digital assets as well as 200+ supported on the exchange. The exchange supports fractional investing and doesn’t even have a minimum trading amount. The only downside to this is that Binance.US does accept USD deposits.

In addition to trading and investing cryptos on Binance.US, you can buy NFTs on the integrated Binance.US NFT marketplace. The exchange is also a hub for passive investing. Here, you can stake 20+ of the most popular cryptos and earn double-digit interest rates annually.

You may also want to use Binance.US if you are looking to buy cryptos free of charge. The exchange doesn’t charge transaction fees for several BTC-paired trades. It also maintains highly competitive crypto trading fees. This fee is volume-based, with the maker/taker fee ranging between 0% and 0.4%. You also qualify for a 5% fee discount if you settle this fee using BNB coins.

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 Legal in Kentucky

Yes, it is legal to buy and sell virtual currencies in Kentucky. Cryptocurrency exchanges are also free to operate in the state. It is important that Kentucky, though considerably crypto-friendly, is yet to pass any crypto-specific laws. It has, however, passed multiple bills and issued guidance. These started with the inclusion of virtual currencies into its money transmission definition.

Crypto exchanges operating in Kentucky are required to obtain a money transmitter license. A few, including eToro, Coinbase and Binance.US, have already acquired this license. The two most important pieces of legislation passed here are SB 255 and HB 230, which were enacted in March 2019.

These two outline rules and regulations for businesses to mine cryptocurrency and how to tax those businesses. They also propose a tax reduction for specific types of cryptocurrency mining operations. The SB 55 bill that established a Blockchain Technology Working Group was also adopted in early 2021.   

Crypto Taxes in Kentucky

Kentucky’s cryptocurrency tax laws generally align with federal tax laws. This means that the virtual assets are usually treated as property. It also means that you may be subject to capital gains tax on any profits from the sale or exchange of cryptocurrencies. Note that the state income tax is fixed at 4%. Some cities and counties around the state also impose additional taxes, which often bring the total tax rate in some areas to 7.25%.

Practical Tips for Buying Bitcoin and Top Cryptos in Kentucky

In this section, we go over a few tips that can help make you a successful investor. Learn these tricks before you start buying coins and integrate them into your investing strategy.

Vet the digital currency.

Before buying any crypto, vet its legitimacy, sustainability, developer team, mission, and lucrativeness. Check its fundamentals, including its underlying blockchain technology, market cap, trading volumes, tokenomics, and adoption. You can look up some of these factors on such crypto platforms as CoinLore.

Learn about crypto scams.

You also need to learn how to keep your digital assets safe. This starts with learning everything there is to know about crypto scams. Learn about the most common scams, how they are executed, and how to avoid falling victim to either. Using reputable exchanges, for example, goes a long way in helping avoid scammers.

Master risk management

The mastery of risk management starts with understanding all the tools available to you. The most common are stop loss and take profit. Implement these in each of your crypto trades. Further, if you must margin trade, avoid overleveraging.

Diversify your crypto portfolio.

Diversification goes a long way in helping you take advantage of different market trends. It involves in different digital assets that react different to changing trends. For starters, include both long term cryptos like BTC and ETH, meme coins like DOGE and SHIB, and popular altcoins like TON and SOL.

Avoid FOMO

Make informed decisions and avoid rushing into investments based on fear of missing out. Even more importantly, create and stick to your strategy while avoiding making impulsive buys.

Stay informed

You also need to keep track of market news, regulatory changes, and technological advancements. These have a significant impact on the direction of the crypto market as well as the price of different coins.

How to Buy Cryptocurrency in Kentucky Walkthrough

In this section, we provide a more detailed guide to buying cryptocurrencies on eToro in Kentucky. We teach you how to create an account and buy your first digital asset on the platform.

Step 1: Create a crypto trading account

On your browser, open the official eToro website or download the eToro mobile trading app. Click on the ‘Join Now’ button on either platform to bring up the registration form. It will ask for such details as your name, phone number, email address, country of residence, disposable income, income source, and trading experience. You will also need to create a username and password for this account.

Step 2: Verify your identity

The registration process on eToro also involves identifying your identity. To do so, simply upload a clear photo of your government-issued identification document, such as a passport, state ID, or driver’s license.

Step 3: Deposit funds

Log in to the approved eToro account and hit the “Deposit” icon on your user dashboard. A funding tab showing all your payment methods will pop up. Click on your preferred payment method and follow the prompts to deposit at least $10 into your eToro account.

Step 4: Identify crypto assets to buy

Once the payment is reflected in your trading account, hit the “Discover” icon.  Choose crypto from the list of supported financial assets.  A list of the 20+ top altcoins supported on eToro will appear.  Identify the best crypto to buy from this list and hit the ‘BUY’ option. 

Step 5: Buy cryptos

A trading tab will appear and you will use it to customize the investment. Indicate how much you intend to invest in an altcoin and hit the “Open Trade” button to execute this 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 of the cryptocurrency you just purchased will be deposited into the exchange-provided wallet. To move these assets to a different exchange or wallet, you first need to transfer them to the eToro Money wallet app. The move is charged a 0.5% transfer fee and is irreversible.

How to Sell Cryptos in Kentucky

The process of selling cryptos on eToro in Hawaii is equally simple and straightforward. Here is a four-step guide to selling digital assets on Kraken in Hawaii.

• Step 1: To sell digital currencies on eToro, you first need to log back into the eToro trading account.
• Step 2: On your user dashboard, click on the “Portfolio” icon to reveal all your open crypto trades.
• Step 3: On this window, identify the asset you intend to sell and choose the “Close” trade option.
• Step 4: A trading tab will pop up. Customize this trade by indicating whether you want to sell a portion of coins or the entire position. Hit the “close” button to execute.

Note: The cash equivalent of the digital assets you just sold will be immediately deposited into your account. Withdraw the fiat currency or use it to buy some of the best future cryptos supported here.

Conclusion – How to Buy Cryptocurrency in Kentucky

There goes everything you need to know about buying popular digital currencies in Kentucky. The crypto-friendly state isn’t short of crypto trading platforms. Identify the one that appeals to you and start investing. You may also want to integrate the crypto trading tips and tricks that we have outlined above if you hope to make your investing journey successful.

Looking for a more detailed guide on how to buy cryptos in Kentucky? Follow the step-by-step guide to buying your first altcoin on eToro, which 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 Iowa
• How to Buy Cryptocurrency in Louisiana

References:

1. https://www.cnbc.com/2021/10/09/war-to-attract-bitcoin-miners-pits-texas-against-new-york-kentucky.html
2. https://www.cnbc.com/2022/07/18/these-are-the-10-states-leading-americas-crypto-industry.html
3. https://cointelegraph.com/news/coinbase-holds-5-percent-of-bitcoin-data
4. https://legiscan.com/KY/text/SB255/id/2321901
5. https://legiscan.com/KY/text/HB230/id/2321983/Kentucky-2021-HB230-Engrossed.pdf
6. https://apps.legislature.ky.gov/recorddocuments/bill/20RS/sb55/bill.pdf
7. https://www.coinlore.com/

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Author: Wajeeh Khan

Wajeeh Khan is a financial researcher and writer with 7 years of experience. He has immense exposure to a range of financial assets, including stock, cryptocurrencies and forex - and is particularly well-versed in asset valuation, analysis, and portfolio management. Since 2016, Khan has worked with notable online platforms within financial journalism, including Invezz, Trading-Education, Dog of Wall Street, and News Break. All in all, he has written, editted, and published over 7,000 articles, guides, and market insight. Online casinos started as a hobby for Khan in 2018. But in only two years, it had already become another niche that he started actively researching. Over the past three years, he has written a diversified set of content around gambling for clients from all over the world. Academically, Khan has a Bachelor's in Economics and a Master's degree in Finance. He's also completed a bunch of courses on digital journalism and financial markets at large.

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