Best Allowed Crypto Exchanges & Apps Available for New York Resident Use

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While most crypto exchanges are illegal in NY, a handful are legal and allowed to sell crypto to New York residents. Crypto companies Gemini, Bitstamp, Coinbase and Robinhood, all hold the required license, giving New Yorkers a choice in available cryptocurrency exchanges.

Through my testing, I found that it’s best to use more than one registered crypto exchange in New York (1), and have shared my reasons below. Additionally, I have documented my personal experience with Gemini, Coinbase and Robinhood from a New Yorker’s perspective. At a later date, I will update this resource to include Bitstamp once I complete the funding process and make some trades.

For quick reference, I’ve ranked them here in this table based on my actual experience and I encourage you to read the full details in the upcoming sections.

NY Crypto Exchange	Pick Reason	Sign-Up Promo?
GEMINI	#1 Best Overall Huge Variety Low Fees	$15 after trading $100 LINK to PROMO
COINBASE	#2 Runner Up Beginner Friendly Medium Fees	N/A Maybe $5?
ROBINHOOD	#3 Honorable Mention Zero Commission Day Traders	$5-$200 free stock LINK to PROMO

#1 Gemini Crypto Exchange for New York State Residents – Best Overall

Yes, the Gemini crypto exchange is allowed in New York and in my opinion, has a slight edge over Coinbase mostly due to the better variety of cryptocurrency.

That said, it might take you a moment to get through Gemini’s application process, which requires you to answer more than a few personal questions. That’s because Gemini exchange operates in NY under a “Limited Purpose Trust Charter” license and must comply with rules governed by the NY Banking Board….something the other two exchanges get to avoid.

But those who take the time and apply to Gemini will be rewarded with a huge variety of cryptocurrency, low trade fees and that secure feeling you get when the company you do business with, has a fiduciary responsibility.

Gemini was the 3rd exchange I signed up for and now that I’m established, Gemini is my most frequently used crypto exchange as a NY resident.

Variety of Crypto for New Yorkers on Gemini

Gemini has more crypto offerings directly on the exchange over Robinhood and Coinbase. Right now I count over 70 options ranging from the typical BTC and ETH, but it also includes a good variety of alt coins such as Solana, Avalanche, Chainlink and the hard to find: XRP from Ripple.

If meme coins are your thing, you might find them on Gemini, along with a “risk warning” (pictured below).

Gemini Exchange Pros and Cons for Buying Cryptocurrency in New York

Gemini Crypto Exchange in New York: Sign-up Steps

I expected problems as a New York resident, but most parts went very well when setting up my Gemini account. Later in the process, there were a couple of slow downs and it’s worth talking about in case you are having the same problem

Total Time from applying to being able to buy crypto on Gemini: 24 hours

#1. Gemini Application

The Gemini application was all online and allowed for electronic signatures. Though some of the questions were very personal, the process itself was easy and well-guided.

The total time to complete Gemini’s application took less than 10 minutes from start to finish.

#2 Setting up the Account

Gemini sent emails and text messages every step of the way and the the process felt secure. Be sure to have your email open in a new tab and have your phone nearby for quick retrieval of confirmation codes.

There was one confusing part. Upon the completion of the account setup phase, I received an email from Gemini stating my account was ready and I could begin trading (pictured below)

However, that was not the case. When I tried linking a bank account, it went through the motions, but I kept getting stuck. Turns out, I had to go through a verification process before I could trade.

#3 Gemini’s Verification Process

Gemini must verify your identity and they will require a valid ID. I used my New York drivers license and the process was easy and with good directions.

The verification process was not a clear step in the account setup process, rather…something I found out when things weren’t working. I had to use google search to find out why I couldn’t trade in Gemini and was led to a troubleshooting document (2).

If you can’t trade on Gemini, go to your account, open the account tab and click on identity/verify identity.

#4 Funding the Gemini App

I ran into some problems during the bank linking process and I received error messages that didn’t offer support. I kept trying to link my bank account and ended up getting locked out for “too many attempts.” Here is what that email looked like:

From my end, I never saw the attempts going through, it just kept taking back to square 1 without any confirmation.

The next day, I decided to try a different bank account (same bank) and it worked for an instant buy. I don’t know why one worked and the other didn’t, but now that I’m established, both accounts work without a problem.

Some things to keep in mind: Gemini might allow an instant trade so you can buy crypto with your bank account. But you won’t be able to move it until the transaction settles and the money actually clears your bank. A process that could take a few days.

Gemini Summary

I didn’t start with Gemini because I had heard it was too complicated, but it’s not. Currently, Gemini is my go-to crypto exchange in NY.

The fees are reasonable, the offers are plentiful and the app is easy once you’ve navigated it a few times. If interested, you can signup here.

But I don’t use Gemini exclusively because certain cryptocurrencies I want are not on Gemini, but only Coinbase.

I also like having multiple exchanges because it diversifies the risk. For instance, what if an exchange is down, or suddenly restricts trading, or stops supporting a coin? It’s useful to have multiple exchanges for all those reasons and more.

#2 Coinbase Crypto Exchange for New York – Runner Up

In you live in NY state, you can definitely use Coinbase as your crypto exchange. Coinbase Inc. was granted the BitLicense back in 2017, making it one of the earliest exchange options available to New York residents.

Coinbase made it super easy to sign up in NY and I was able to buy crypto very soon after the verification process.

What Crypto can be bought in NY using Coinbase Exchange?

New York residents will find dozens of cryptocurrencies on the Coinbase app and even one or two that cannot be found on other exchanges.

The desktop application for Coinbase does a much better job of indicating what crypto can and cannot be bought if you live in NY. If it’s allowed, you’ll see a buy button. If not, the buy button disappears as pictured below:

When using Coinbase phone app, it’s not this clear. You’ll have to click each crypto then it will tell you whether or not you can buy it in NY. An extra and unnecessary step that I wish Coinbase could correct.

Regardless, Coinbase has fewer but different options. This is why I like signing up for more than one exchange because what you may not be able to buy one one, could be an option on another.

Coinbase Exchange New York: Sign-up Steps

With Coinbase, you’ll start by verifying your email, then a mobile phone. From there you’ll be led through the typical “know your customer” questions.

All of the steps were easy to follow but there is one area worth mentioning and that is: new accounts seem to go through a phase of restricted bank transfers.

Why do I mention this? I started with a small amount of $50 for testing. Then, for 7 days, I couldn’t transfer any more in from my bank account. Now that I’m established, I have much higher limits and lower restrictions.

Total Time from applying to being able to buy crypto on Coinbase: 14 minutes

#1. The Coinbase Application

New York residents will be asked very straight forward questions that comply with “KYC” know your customer and anti-money laundering rules. Overall, it’s not too invasive and it’s done through drop down boxes.

Be prepared to answer questions related to citizenship, DOB, SS#, address, intended use, source of funds, employment status and an estimated amount you expect to trade

#2. Account Setup

Coinbase account setup was very smooth and intuitive. The steps were one right after the other so make sure you have time to do it all in one sitting.

#3 Coinbase Verification in NY

New York residents will have to upload some form of state issued ID in order to verify identity. I used a driver’s license but other options were available.

You will not be able to proceed to buy crypto on Coinbase without completing the ID verification.

A good tip is to have the front and back of your ID ready for uploading. This process was smooth and well-guided. I had no issues.

#4 Funding Coinbase

The prompts to fund Coinbase in New York came directly after identity verification. This made it easy and the steps were user friendly. You could also skip this step and fund later.

If you skip the funding step, your home screen on Coinbase will have it listed as a remaining step (pictured below).

Coinbase in NY Pros and Cons

Coinbase Summary

Coinbase was the second crypto exchange I used in NY and I found it to be a breath of fresh air. Being able to buy crypto and transfer it to personal storage is a must and Coinbase makes it easy.

Coinbase is where I learned to send and receive crypto, testing small amounts until I felt confident. Their phone app is excellent for beginners. If you prefer to use a computer, the Coinbase desktop version is even better than the app.

I still use Coinbase and have no intentions of deleting it. In fact, I prefer Coinbase for crypto news and research and it’s my go-to exchange for price checking.

#3 Robinhood Crypto Exchange for New Yorkers – Honorable Mention

New Yorkers are allowed to use Robinhood as a crypto exchange as they have applied for and received NY’s BitLicense. I went through the sign up and funding process and my overall thoughts are: sign up, earn free stock, and wait.

Here is what I mean:

Despite finding Robinhood to be the easiest and most user friendly exchange for buying crypto in NY, it simply fell short in 3 critical areas for me: variety, transferring, and ability to use (pay others).

And while I could get past the limited crypto options, the transfer and usage limits are, in my opinion, the bigger shortcomings.

Let’s go over these one by one.

Variety of Crypto for New Yorkers on Robinhood

When I signed up , Robinhood had 8 (eight) cryptocurrencies available to New York residents.

• Bitcoin
• Etherium
• Bitcoin Cash
• Etherium Cash
• Dogecoin
• Chainlink
• Litecoin
• Aave

When you’re inside the Robinhood crypto App/Exchange, you’ll see two different tabs called: Tradeable and Non-tradable. The Tradeable tab will include the crypto you are allowed to buy as a NY resident.

If you click the Non-tradeable tab, you can see lots of other cryptocurrencies, but you’ll see a message stating you’re not allowed to buy it in NY and the buy button will not be active. Here is a screenshot:

Since most people just want BTC or ETH, Robinhood’s lack of variety might not matter, especially if you already use the the Robinhood app and exchange for buying/trading stocks.

The bigger drawback for New York residents is the inability to move your crypto purchases out and you can’t use it for payments.

Can New York Residents Transfer Crypto out of Robinhood?

Unfortunately, no. Robinhood does not allow New York residents to move crypto into cold or hot storage wallets. According to their current terms, Robinhood Crypto Transfer is available everywhere except: Hawaii, New York, and District of Columbia. A fact I didn’t fully understand until attempting to do so.

Yes, it’s in the terms of service, but not in the section where it boosts of easy transfers and explains the process. Here is a screenshot of the message on Robinhood when I try to make a transfer. Notice the warning and the fact that the SEND and RECEIVE buttons are not lit up.

Does Robinhood allow New York users to pay friends with crypto?

Paying others with crypto is not allowed on Robinhood if you live in NY. Even though Robinhood has a BitLicense in New York, they have not established a way for New Yorkers to pay others for goods, and you cannot execute direct wallet payments.

So you might be asking:

So, what can you do with the Robinhood Crypto Exchange in NY?

Currently, NY users can only buy crypto and sell it. The only way to get your NY crypto off the Robinhood exchange, is to sell your crypto holdings where they will automatically be turned into cash money….and that, my friends, creates a taxable event.

While that’s not too appealing for most, I can still see perhaps one valid reason to choose Robinhood and that’s why I give Robinhood an Honorable Mention.

Honorable Mention

Will you be constantly buying crypto and turning it back into money several times per day? If that is your strategy, Robinhood’s zero commissions could save you enormous trading fees.

In that case, go ahead and check it out (link) and earn yourself free stock in the process, you’ll be buying crypto at lightening speed.

Total Time from applying to being able to buy crypto on Robinhood: 7 minutes

Robinhood Pros and Cons as experienced by a NY resident

Despite the limitations, all is not lost and it’s important for me to point out that I’m very glad to have signed up for Robinhood.

Robinhood offers crypto, stocks, and ETF’s, I received a mini sign-up bonus and chose COKE stock as my reward. Even though it’s small, it’s up in value and receiving dividends. This great app also made me realize how easy it is to invest as little as $5 a month and I had no idea they offered retirement products.

Robinhood Summary

Overall, I like the app and I’m keeping it. Robinhood was the first New York approved crypto exchange I ever signed up for and where I bought my 1st cryptocurrency.

I have a nominal amount at Robinhood and it’s being kept on the exchange because I didn’t want to turn around and sell it. I’m using the app, but not as originally intended for crypto.

If frequent crypto trading or free stock appeals to you, go ahead and sign up just for the bonus incentive. Currently, new accounts can get between $5-$200 in free stock as soon as you link a bank account. You’ll need a referral link and I’d be honored if you used mine. That means whatever you get for your bonus, I will get too. Here is my referral link to Robinhood.

The reason I’m not buying more crypto with the Robinhood app is because I’m not a frequent trader and I cannot transfer it out or even use it to pay others.

If I decide to day trade, or if Robinhood ever allows NY residents to transfer out, I will not hesitate to use them more regularly to acquire crypto. Their app is super friendly and who doesn’t like zero commissions?

And since I’m already signed up, it should be easy to start acquiring crypto again.

Thanks for stopping by. Interested in more ways to acquire crypto in NY? Head back to the homepage and review the guide.