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Buy Cryptocurrency in New Jersey

New Jersey is a crypto-friendly state and home to tens of the most popular crypto exchanges. Our team of analysts has thoroughly reviewed these trading platforms. For each exchange, they assessed how it works, what makes it the best, and sought to understand its biggest drawbacks.

Below, we discuss where to buy cryptocurrency in the Garden State. We will also provide you with a detailed guide on how to buy cryptos safely in New Jersey.

How to Buy Cryptocurrency in New Jersey in 4 Steps

The quick four-step walkthrough will show you how to buy cryptocurrency in New Jersey in less than 5 minutes with a regulated crypto exchange: eToro. The multi-asset platform lists all the best cryptocurrencies and is also regulated by the SEC. It also supports fractional investing, making it possible for you to buy cryptos with as little as $10.

  • Step 1: Open a free eToro account: Open the official eToro.US website and hit the “Join Now” button. Complete the registration form provided by entering such basic information as your name, email address, and phone number.
  • Step 2: Deposit funds: Fund this account by depositing at least $10. The supported payment processors include credit cards, debit cards, e-wallets like PayPal, and bank transfers.
  • Step 3: Identify the best crypto to buy: eToro introduces you to tens of the best cryptos to buy in the US. Identify the crypto you wish to invest in and hit the “BUY” button.
  • Step 4: Buy cryptos: A trading tab will appear. Use it to customize this trade by indicating how much you wish to invest in a 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 provide you with a more detailed guide for buying crypto assets on eToro later. We will also discuss crypto taxation and the legality of cryptos in New Jersey. For now, though, we need to talk about the most popular cryptos in the state and where to buy cryptocurrency in New Jersey.

Most Popular Cryptos to Buy in New Jersey

There typically is no standard test to determining the absolute popular crypto in a given locality. It is even worse if these locations are relatively small, such as a specific state of county. However, going by local news and social media, it is fair to argue that Bitcoin and Ethereum are the most popular cryptos in New Jersey.

In addition to being the most talked about, BTC and ETH are also among the most searched cryptos in the state. They also have rather significant daily trade volumes for the two cryptos. Not forgetting that their adoption has been rising steadily. A growing number of New Jersey residents and businesses also accept crypto as payment for goods and services.

Other equally popular cryptos in the state include:

  • Solana (SOL)
  • Ripple (XRP)
  • Dogecoin (DOGE)
  • Shiba Inu (SHIB)
  • Binance Coin (BTC)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Tether USD (USDT)
  • USD Coin (USDC)

Where to Buy Cryptocurrency in New Jersey

All the best crypto trading platforms in the US have established a presence in New Jersey. Finding the one that appeals the most to you can, therefore, be overwhelming, especially if you are a newbie. To help you get started, our analysts have vetted tens of such exchanges. Eventually, they settled on the following as the best crypto trading platforms in New Jersey in 2024.

1. eToro – The Overall Best Place to Buy Cryptocurrency in New Jersey

eToro is a multi-asset trading platform. In addition to buying Bitcoins and other cryptos on eToro, you can also invest or trade popular traditional assets like stocks and treasuries. This comes in handy for both beginner and expert traders looking to divest risk and diversify portfolios.

We list eToro among the best exchanges to buy cryptocurrency in New Jersey primarily because of its solid reputation and regulatory status. The platform is regulated by all top tier agencies globally, from SEC in the US to FCA in the UK. It also ranks high among the most reliable and safest crypto exchanges in the US. Much of this is thanks to the many security measures it has put around its client data and private keys.

Buy Cryptocurrency in New Jersey via eToro

You would also want to buy cryptos on eToro because it exposes you to different ways of buying digital assets. For starters, you can buy cryptos instantly with PayPal or cards. Further, you can invest passively through copy trading or staking. Importantly, you only need $10 to start buying in cryptos on the exchange.

Buy crypto via etoro exchange

One of the perks of using eToro is that you don’t need to be an experienced crypto trader to use the platform. Its web and mobile trading platforms are designed to appeal to traders. So are the many beginner-friendly tools and resources hosted on the platform. These include a free demo account with $10,000 in virtual funds and an extensive education site.

Pros:
  • Access 80+ of the most popular digital currencies
  • Transparent trading fees are fixed at 1% of the trade volume
  • Unlock perks like call back with eToro Club
  • Interact with the most successful traders and copy their trades
Cons:
  • Trading fees on eToro are relatively high
  • The platform doesn’t support automated trading tools like 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 – The Safest Crypto Exchange in New Jersey

Kraken started in 2011, two years after the launch of Bitcoin. Over the years, the oldest crypto exchange has built a solid reputation for reliability and security. It has also worked on its appeal to different classes of crypto investors and traders. It achieved this, first, by introducing different ways of buying cryptos on the platform. This was followed by support for 200+ cryptos.

Kraken Crypto Trading Platform

It is worth noting that Kraken is slightly based towards professional crypto traders and institutional investors. To this class of investors, it presents highly advanced trading tools and charges low fees. It even lets them margin trade cryptos and interact with crypto derivatives. While it also have beginner-focused tools and resources, they aren’t as advanced as the ones on competitor exchanges like Coinbase.

Among the top factors that would make you want to buy cryptos via Kraken include its competitive fees. These range between 0.26% and 0% for active traders. You would also enjoy Kraken’s deep liquidity and an easy-to-use crypto trading interface. In addition to crypto, you can also invest in and trade the best NFTs on the Kraken exchange.

We must also observe that in the recent past, Kraken was recently sued by the SEC. They exchange settled and was forced scale down on the tools and services offered to US residents. It stopped offering staking and passive earning programs to the US market. It also stopped offering crypto derivatives and margin trading services to this market.

Pros:
  • Access the most sophisticated trading and analysis tools
  • Kraken has never been hacked
  • Trade on the move on the best crypto trading mobile app
  • Customer support is available 24/7 over the phone and online
Cons:
  • Kraken charges high fees when you buy cryptos instantly – at 1.5% of trade volume
  • No passive investing options

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 Best Crypto Exchange for Beginners in New Jersey

Established in 2012, Coinbase has been around for more than 90% of cryptocurrencies. It was also the first crypto trading platform in the world to go public when it was listed with NASDAQ in 2021. It is also the most liquid exchange in the US and the second most liquid globally. All these explain why it is considered one of the best crypto exchanges in the US.

Best Crypto Exchange in New Jersey

There are a number of factors why you would want to use Coinbase. First, it supports a decent range of virtual currencies. Here, you will invest in the most promising coins, like Bitcoin, as well as the most volatile cryptos, such as Dogecoin. Further, you only need $2 to start buying any of these assets. But even more importantly, you can buy these cryptos instantly with PayPal or cards.

The only significant downside to using Coinbase has to be its complicated fee structure. The fees here are either fixed or percentage-based, depending on the order type. When buying cryptos worth less than $200 instantly, for example, you will pay a fixed fee of between $0.99 and $2.99. Higher volume trades attract a volume-based maker/taker fee of between 0% and 0.8%.

A few perks of using Coinbase should help you overlook its trading fee shortcomings. These include the fact that it is one of the safest exchanges out there. It also exposes you to the best NFTs and one of the best crypto trading mobile apps for iOS and Android. Not forgetting that it has a rich educational resource for newbies as well as an advanced trading platform for expert traders.

Pros:
  • Earn passively by staking or get free cryptos when you learn on Coinbase
  • Has a quick and straightforward client onboarding and crypto buying processes
  • Coinbase is a regulated exchange licensed by the SEC
  • The exchange holds 98% of your cryptos offline and insures the remaining 2%
Cons:
  • Charges higher fees than competitor exchanges like Binance US
  • Has been accused of having 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. Uphold – The Best Multi-Asset Crypto Exchange in New Jersey

Uphold is a popular multi-asset trading platform operating in the US. Here, you can buy and sell thousands of the most popular financial instruments. These include 260+ cryptocurrencies and 20+ metals as well as thousands of stocks and foreign currencies. But unlike such other multi-asset platforms like eToro or Robinhood, there is a unique twist to how Uphold works.

Multi-Asset Trading Platform in New Jersey

The most popular exchanges let you buy Bitcoin and cryptos with other cryptos or cash. On Uphold, you can buy anything for anything. This implies that you may buy any crypto asset using any of the other supported financial assets. You can, for instance, buy Ethereum on Uphold with stocks, cash, other cryptos, or even metals. Importantly, Uphold’s one-click buy process helps it appeal to beginners.

There are several other reasons why you may want to buy cryptos on Uphold. For starters, the large crypto library exposes you to both established cryptos like Bitcoins and relatively new coins. Additionally, Uphold has one of the easiest-to-use crypto trading interfaces. It has a quick and straightforward client onboarding process and the trading platform is highly navigable.

Others include the fact that Uphold is a safe exchange. It commits to the safety of your personal data and private keys in different ways. These start with supporting multi-factor authentication and holding your keys in an offline vault. Further, Uphold doesn’t loan out your cryptos. Not forgetting that it updates its proof of reserves report every thirty minutes.

Pros:
  • Earn passively by staking up to 15 coins and earning up to 14% APY
  • Uphold is a multi-platform brokerage with an intuitive mobile app
  • Supports all popular payment methods, including Google Pay and Apple Pay
  • Uphold trading platform is regulated in the US
Cons:
  • Low liquidity for less popular altcoins
  • Charges high spreads for crypto trades – as much as 2.95% per trade

5. Binance.US – The Best Crypto Exchange in New Jersey for Low Fees

If you have been following crypto industry news, you know the legal battles Binance.US has faced. Twice it has been sued by US regulators and twice it has lost. In the case against the Department of Justice Binance.US suffered a $4.3 Billion fine. In the case against the SEC, Binance lost and its founder and ex-CEO – ChangPeng Zhao – was even handed a four-month prison sentence.

These tribulations haven’t, however, stopped Binance.US from emerging as the best crypto exchange to buy cryptocurrency in New Jersey. We feature it here primarily because of its highly competitive crypto trading fees. When buying the most undervalued cryptos on Binance.US, for example, you will pay a competitive maker/taker fee. This ranges between 0% and 0.6% based on your 30-day trading volume.

Binance Trading Platform

In addition to low fees, we liked its appeal to both newbies and professional traders. The exchange integrates tools and resources that appeal to both beginner investors and expert traders. You, for example, can buy crypto instantly, but you only need $2 to get started, and the crypto buying process is straightforward. These appeal to newbie investors.

Binance.US is also home to hundreds of the best and most advanced trading, analysis, and trading tools. It is also sufficiently liquid, has some of the fastest transaction processing speeds, and supports multiple payment options. These and the low fees make Binance.US one of the best crypto exchanges for active traders.

Other factors making Binance.US one of the best exchanges include the fact that it supports staking. It is also safe and holds more than 90% of your cryptos in offline vaults. Not forgetting that your cash deposits of up to $250,000 into Binance.US are insured by the FDIC.

Pros:
  • Binance.US has a highly responsive support team
  • It is a resilient exchange that has survived legal battles and mass Bitcoin withdrawals.
  • Enjoy a 25% discount if you pay for trading fees with Binance Coins (BNB)
Cons:
  • It doesn’t support margin trading or crypto lending
  • Binance.US has never been hacked
  • Supports a limited number of cryptos

6. BitStamp – The Best Crypto Exchange for Active Traders in New Jersey

Like Kraken, the BitStamp is a pioneer crypto exchange launched in 2011. Since then, it sought to establish itself as the best crypto exchanges for active traders. To achieve this it integrated a number of features. For starters, it made sure to support all the best cryptos to buy in the US. It also made its trading fees competitive, transaction speeds fast, and integrated advanced trading tools and indicators.

Bitstamps Crypto Exchange

This doesn’t, however, imply that BitStamp is not beginner-friendly. On the contrary, it has integrated a number of features and tools that draw in newbie investors. These include streamlining the crypto buying process and offering passive investing programs. They also extend to a low trading minimum of $10 and support multiple popular funding options.

Note that when trading cryptos at BitStamp, you only pay a maker/taker trading fee of between 0% and 0.04%. Its multi-platform nature also lets you choose the device on which to buy or monitor your crypto trades. At the time of writing, you can use the BitStamp PRO app, BitStamp app, the BitStamp web trader, or TradeView.

Pros:
  • The customer support team is highly responsive and available on the phone and online.
  • BitStamp exchange is regulated and licensed in the US
  • BitStamp is a relatively safe crypto exchange
  • Earn passively when you Stake on BitStamp
Cons:
  • It doesn’t support crypto derivatives trading
  • It supports fewer assets than most of its competitors

Is Crypto Investing Legal in New Jersey

Yes, crypto investing is legal in New Jersey. You can legally buy and sell digital currencies in the state. Both businesses and individuals in New Jersey may also accept cryptos as payment for goods or services.

Is Crypto Investing Legal in New Jersey

You will be interested to note that the Garden State has been trying to regulate its crypto industry for close to a decade now. It started in 2015 when the New Jersey Division of Taxation issued an advisory regarding the treatment of crypto payments. In 2018, Senate Bill 2642 made it legal for corporations to embrace blockchain technology in their record keeping.

The most impactful crypto-focused piece of regulation in the state would however be passed in 2020. The New Jersey Bill 2891 sought to regulate crypto businesses and clarify the legal requirements for virtual currency business. It, among other things, recognized cryptos as property and afforded crypto businesses tax credits. It also approved use of cryptos for payment of state taxes.

We must, however, observe that like other States, New Jersey is yet to come up with a comprehensive crypto law. It is highly likely that it awaits possible passing of a federal crypto bill in the national congress.

Crypto Taxes in New Jersey

The 2015 advisory paper by the New Jersey Division of Taxation, cryptos are to be treated as property. Therefore, the value (cash equivalent in USD) OF payments to businesses and individuals inform of cryptos have to be determined on the date of the payment. Depending on when such payment is made, it may be subject to such taxes as withholding, estate, or even income tax.

Cryptos earned through mining and such passive income generating programs is subject to income tax. Profits made through crypto trading will also be subject to capital gains tax.

Practical Tips for Buying Crypto and Bitcoin in New Jersey

There is more to buying cryptos in New Jersey than finding the best crypto exchange. To be a successful crypto investor, you need to learn a few investing tricks. Factor these tricks into your investing strategies if you hope to increase your odds of success as a crypto investor.

Below, we look at the most practical tips for buying cryptos in New Jersey:

Understand your investing goal

You first need to understand your investing goal. Understand that long-term investors and short-to-medium traders view different cryptos differently. Further, they do not use similar investing strategies. Understand your investing goal and match it with relevant cryptos and strategies.

Vet the cryptos you intend to buy

There are over 12000 cryptos out there, as per Coinlore. Before purchasing any of these, consider its past price action, tokenomics, the sustainability of its blockchain, and expected future price action. Only buy if you understand how market trends and macroeconomic factors affect its price action.

Learn how to secure cryptos

After identifying the best place to buy the next cryptos to explode, invest in a hardware wallet. This stores your cryptos safely offline – away from hackers and malware. We advise against leaving your assets in a crypto exchange.

Beware of FOMO

Avoid the fear of missing out. Do not go running for the shiniest and most hyped crypto. Instead, identify a working investing strategy and stick to it. The last thing you want to be involved in is a rug pull that leaves you holding the bag.

Stay updated on market trends

You need to stay updated on the market news and trends. Follow reputable crypto news platforms. These come in handy in helping you identify possible market direction and reorganize your portfolio.

Consider DCA

Consider embracing dollar-cost averaging. This is one of the most effective crypto long term crypto investing strategies out there.

How to Buy Cryptocurrency in New Jersey – Step-by-Step Beginners Guide

In this section, we will walking you through the process of buying cryptos via eToro in New Jersey. Like we have mentioned earlier on, it is quick and straightforward.

Step 1: Open a Crypto Account

Start by opening the official eToro.US website. Alternatively, download the eToro crypto trading mobile app. Hit the “Join Now” button on either platform and complete the registration form that pops up. It seeks to capture your basic personal information. It will also ask about your income source, disposable income, and trading experience.

Step 2: Verify your Identity

You can only fund this account or start trading after you have verified your identity. It involves sending a clear photo of your government-issued identification document. This may be your state ID, passport, or driver’s license.

Step 3: Deposit Funds

eToro supports all the popular fiat payment processors. Hit “Deposit Funds” on your trader account, and a list of funding options will appear. Choose one and follow the prompts to fund your account with at least $10.

Step 4: Search for Cryptos to Buy

On your user dashboard, hit the “Discover” button. You will be directed to a window that shows all the financial instruments you can trade on eToro. Choose “Cryptos” to bring up the list of supported digital currencies. Identify the best altcoin to invest in and click on the “BUY” option.

Step 5: Buy Cryptocurrency

A trading tab will pop up. Use it to customize this investment by indicating how much you wish to invest in this altcoin. Then, 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 deposit the private keys you just purchased into the exchange-provided web wallet. This secure vault holds more than 90% of your private keys offline.

How to Sell Cryptos in New Jersey

The process of selling cryptocurrencies on eToro is equally quick and straightforward. In fact, it takes no more than five minutes to dispose of your crypto investment.

  • Step 1: Start by logging back into your eToro trading account.
  • Step 2: Hit the “Portfolio” icon on your dashboard. This brings up a window showing all the assets in your investment basket.
  • Step 3: Choose the crypto you intend to sell and hit the “Close” icon.
  • 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 altcoin you just sold will be immediately deposited into your cash account. You may use this cash to buy the hottest cryptos on eToro. You can also choose to withdraw this amount.

Conclusion

Buying cryptocurrency in New Jersey has never been complicated. It starts with selecting the top altcoin exchanges in the state and creating a user account. In the above guide we have discussed the best crypto exchanges in New Jersey state and the overall crypto regulation. Equally important, we have shared a few practical tips you need to embrace as you embark on your crypto-investing journey.

Want to buy any of the top cryptos on eToro? It is simple. Follow the step-by-step guide to buying cryptos on the brokerage that we have outlined above.

More States Buying guides on Crypto2Community

References:

  1. https://www.sec.gov/news/press-release/2023-237
  2. https://edition.cnn.com/2021/04/14/investing/coinbase-stock-direct-listing/index.html
  3. https://www.coinbase.com/learning-rewards
  4. https://www.reuters.com/technology/judge-approves-binance-43-billion-guilty-plea-us-seeks-modify-founder-zhaos-bond-2024-02-23/
  5. https://www.cnbc.com/2024/05/31/binances-ex-ceo-changpeng-zhao-begins-prison-sentence-in-southern-california.html
  6. https://legiscan.com/NJ/bill/S2462/2018
  7. https://pub.njleg.gov/bills/2020/A3000/2891_R1.HTM
  8. https://nj.gov/treasury/taxation/pdf/pubs/tams/tam-2015-1.pdf

FAQs

What are the best cryptos to buy for beginners in New Jersey?

All the best cryptos to buy for beginners, especially promising and undervalued cryptos, are available in New Jersey. As a novice trader, we would advise you against going after the most volatile cryptos.

All the top crypto exchanges currently operate in New Jersey. Our top pick for the best place to buy cryptos in the Garden State would, however, be eToro. The exchange is easy to use, supports a decent number of cryptos, and is safe.

It is easy. You start by identifying the best crypto exchange for you. Register a trader account with them, verify your identity, fund this account, identify the best crypto to buy for you, and place a buy order.

Yes, most crypto exchanges operating in New Jersey will expose you to different passive income-generating programs. The most popular are staking, savings, and crypto lending.

Yes, New Jersey taxes gains from crypto trades. Salaries, wages, and other forms of crypto payments paid to individuals or businesses will also be subject to tax.