Crypto is under attack in the US. And although as the saying goes “the horse is out of the barn”, the US Government and its agencies can still do LOTS of damage to the industry and American users.
So today, we begin a new series. Cryptos Americans can use. The 4 solutions today anyone almost anywhere can use even if your fiat to crypto options are plentiful. So today, 4 places where Americans can trade US dollars for crypto.
The Crypto Situation for Americans
Whether you want to call it Operation Chokepoint like some are or label it for what it is, the US SEC is attacking the crypto industry. They know they can’t stop crypto, and especially Bitcoin. So the goal is to limit conversion from fiat to crypto by eliminating on-ramps and off-ramps.
And it’s starting to create problems for our American friends and crypto users. Many cryptos are more challenging to get for Americans than other users worldwide. We all know that once you are in the crypto economy, it’s easy to swap on CEX or DEX sites to get the crypto you really want.
So, today’s focus is on how to exchange dollars for crypto. The first step into the system.
1) Cash App
Because it’s an app and its primary goal is payments like Paypal or Venmo, many people sleep on Cash App. If you’re American, don’t do this. So, you NEED this app. Cash App lets you easily swap dollars from your bank account or your Cash App cash balance directly for Bitcoin.
And once you have that Bitcoin, you must send it to your own private wallet. From there, you can send it to any CEX or DEX to trade it or use the swapping features within your own self-custody wallet.
Holding Bitcoin on Cash App has NO restrictions. You can move your BTC to a self-custody wallet at any time. It’s amazing and if you are American you need this. So, the chances of this app running afoul of the SEC is low because it’s Bitcoin only. Sometimes the simplest solutions are the best.
Paxful is one of the best p2p exchanges. You can buy Bitcoin, Ethereum, or USDT there. As a growing p2p exchange, they accept lots of forms of payment. Over 300 in fact including ACH, Wire, Paypal, Cash App, and lots more.
Now you do have to beware of potential scammers there, but if you follow the directions AND use the moderators when you need them, you’ll be OK. The trade you can see in this video you are watching is for Paypal. Be careful if you use this method as a seller. It’s perfectly safe as a buyer.
Again, once you get one of the 3 cryptos on Paxful, you have to move it to your own self-custodial wallet.
The one centralized exchange on this list that has the lowest % chance of an SEC/US Government lawsuit is Paxos. Formerly known as itBit, this exchange is based in NY. And as you see in this video, Paypal’s Bitcoin offerings are made through Paxos.
Why won’t Paxos be Sued?
First, Paxos doesn’t offer staking for PoS markets. That’s something that got Coinbase and Kraken in trouble. Second, Paxos issues BUSD, USDP, and other stablecoins with the blessing of the SEC and NYDFS.
Third, Paxos has a BitLicense. In other words, all the licensing in the US that Paxos CAN get, they have gotten. Fourth, they offer a VERY limited number of cryptos. Only 11 of them. And other than SOL, the chances of any of these 11 being labeled security is LOW.
So, Americans can’t use ACH to deposit into Paxos but they can do a domestic (or international if overseas) wire transfer. Then once those dollars are at the exchange, then you can transfer out any of the 11 cryptos you can buy there to your self-custodied wallet of choice.
HODLHODL is a Bitcoin-only p2p marketplace. So, you can trade anonymously here either for crypto or for fiat with methods like PayPal, Cash App, Zelle, or money services like Western Union or even Google Pay. Unlike the other services here, HODLHODL has 2 main differences.
One, you can trade anonymously. Great for privacy advocates. And second, they also have a p2p lending service where HODLHODL escrows and controls the smart contract for the loan if you are looking for some yield on your crypto.
But I am not recommending these other services. I am recommending that you go fiat to Bitcoin on this platform. You can also trade again there to USDT or some other cryptos too. OR just move it to your own self-custodied wallet.
Remember, regardless if you are American or not, the only goal here is to convert your fiat to crypto. Then move to self-custody and swap for the crypto you REALLY want.
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