Welcome to NYNativeCrypto.com! A New York resident, consumer point-of-view resource that compares random crypto companies that are allowed to do business in NY state.
You can learn more about me here, but I promise, I am an actual New Yorker buying crypto and testing multiple companies. I hope this information compliments your own research and helps to answer any lingering questions you may have about buying crypto in our great home state.
When I started buying crypto, I had no help and it felt like I was being kept in the dark on purpose. But the more I learned and educated myself on the laws and requirements, I can report that it’s not as bad as you’ve heard.
Before we get into the 3 ways I’ve been buying crypto in New York, let’s begin with some good old fashioned myth-busting and what I’ve learned about the New York’s crypto regulations.
Is it Legal to Buy Crypto in NY or is it Banned?
Crypto is not banned in New York, that statement is a myth. It is perfectly legal for a New York resident to purchase crypto in New York state and transfer it to a private storage device (wallet).
Even though NY imposes strict regulations on companies wanting to sell cryptocurrency, many have met the requirements, which means they are allowed to operate and sell crypto within the Empire State as a regulated entity.
Regulated Entities
NY has special designations based on each company’s business activity and these designations help us understand what services they can offer and what you, a NY resident, are allowed to do with your purchased crypto.
The designations/business activities are as follows:
- Money transmitter
- Limited Purpose Trust Charter (Money transmitter built-in)
- Virtual Currency Entity –AKA BitLicense (Money transmitter NOT built-in)
New Yorkers will have the most control and options when using an entity that has both the BitLicense + Money Transmitter designation or the Limited Purpose Trust Charter…that’s in theory anyway and we’ll talk more about this during the reviews.
No doubt, regulated entities want our business. The cost to apply for a BitLicense in NY starts at $5,000 and the application requires in depth disclosures of finances, credit, responsible parties.
It even requires certain parties in the company to supply fingerprints.
That said, regulated entities have rules to follow and face severe consequences for bending them. That’s why NY residents are asked multiple questions before crypto can be traded. These questions resemble the type you might be asked when opening a bank account.
The good news is, if you want to buy Bitcoin or Ethereum crypto in New York, it’s relatively quick and easy. Some of you may be able to buy these cryptocurrencies in just a few minutes after reading this. Lesser ranked coins are also available in NY through the ways I describe below.
Are the NY Regulations Good or Bad for buying Crypto?
Frankly, our state’s crypto regulations may have saved countless New Yorkers boatloads of money. Considering the collapse of FTX and the myriad of pump and dump scam coins out there, it’s hard to deny that some regulations are needed and NY just happens to be at the forefront.
Whether regulations are good or bad may boil down to your objective. If you’re looking to hide wealth so you can avoid taxes, I don’t think you’ll accomplish your goals in NY state. Actually, all crypto transactions are recorded, so regardless of where you live, your activity is permanently encrypted on a ledger.
But for those looking for asset-class diversification, who don’t like putting all our eggs in one basket, we can invest in crypto in NY and at least do it with some layer of consumer protection.
Regardless of New York’s consumer protection efforts, it’s important to remember that crypto, like the stock market, is speculative. All the protections afforded will not save you from a bad buy, market volatility, or any unforeseen events. And unlike most bank accounts, crypto is not FDIC insured.
Consequently, you’ll soon notice that I don’t give my opinion on any particular crypto currency and this content is not investment advice. This website is used to curate research, and report any true experiences with the regulated entities allowed to operate in New York.
So if you live in NY (like I do), and you want to buy crypto, (like I did)…this guide is for you. Let’s begin.
How to Buy and Sell Crypto Currency in New York State: 3 Easy Ways
There are multiple ways a New York resident can buy crypto. The process will vary depending on the buying method you choose and the company you select.
Here are 3 ways you can buy crypto if you live in NY:
- buy directly from a crypto exchange
- buy crypto without an exchange
- set up a crypto focused retirement account
Coming up, I’ll briefly discuss how I’ve used each of the above ways to acquire crypto in my home state of NY.
For more detailed information about a specific crypto buying method, simply follow the resource links provided in each section.
#1 You can Buy Crypto from Exchanges in NY
Just like you can buy, sell and trade stocks and bonds on apps and trading exchanges, New Yorkers are allowed to buy, sell and trade crypto by using any of the allowed, licensed NY crypto exchanges (resource).
Once you’re established with a licensed operator, you as a NY resident, will be able to buy, sell, and trade various cryptocurrencies 24/7.
Each of the companies reviewed have different rules for funding, withdrawal, transferring and each platform may have different cryptocurrency offerings for purchase.
As a fellow New Yorker, I’ve gone through the application process with multiple companies allowed to operate in NY, and have documented my experience.
#2 You can buy crypto in NY without an Exchange
While there aren’t many options, the options that exist are from well-known companies who have been around for decades.
Buying crypto without using an exchange is limited, but with huge brand recognition, these two crypto platforms (resource) might be a decent starting point for absolute beginners or those who have no time or interest in learning new apps.
#3 Do you want to Purchase Crypto with Retirement Funds?
If you’re looking to buy crypto using a retirement investment vehicle such as a ROTH or Traditional IRA, you definitely have options living in the state of NY. That’s because New York does not have control over how you direct the investment of certain retirement accounts.
Even 401k’s, 457, and SEP rollovers are possible as long as you choose a complimentary custodian. Many of these companies are well-versed in roll-overs, conversions, and transfers so you are not limited to just “this year’s” contributions.
Check out my crypto NY IRA info (resource) for my favorite picks and learn why I ended up testing and choosing multiple IRA custodians.
I’ll also discuss why I opted NOT to go the route of a “checkbook LLC IRA” even though I wanted it so badly.
Overall, my experience with Crypto IRAs being a New York resident has been pretty good. I spent weeks contacting multiple companies and currently use 4 different custodians for holding crypto in retirement accounts.
Storing Crypto after Purchase
Once you begin buying crypto in New York, it’s a good idea to take custody by moving it to a storage device. Since most accounts will take a several days for crypto buys to settle, it’s a good time to consider your crypto wallet options in NY.
New Yorkers have multiple options when it comes to storing our digital currency. I personally use both hot and cold wallets for storing crypto. For Cold, I’m using Tangem and Nano Ledger and like them both.
I like the 3 different Tangem cards and appreciate that I can store them all separately. I find myself preferring Tangem’s credit card design over Ledger’s flash drive style.
For Hot wallets, I have been using Coinbase’s non-custodial wallet. It is very easy to use and has a great phone ap. And because Coinbase is approved in NY, you could buy crypto straight from the wallet.
**Note** Not all crypto buying options will allow you to transfer crypto to personal storage wallets and this is covered in each resource.