How to Buy Bitcoin in the USA (2025 Guide)

AI summary

Buying Bitcoin in the USA is legal, regulated, and increasingly accessible, with clear steps involving trusted exchanges, KYC verification, and secure storage. The article provides a comprehensive 2025 guide, highlighting Tangem Wallet as a streamlined and safe option for both purchasing and holding Bitcoin, while also outlining cost-effective payment methods and important tax considerations. As adoption grows and regulations improve, the future of Bitcoin investment in the USA appears promising.

Buying Bitcoin in the USA is now mainstream, with millions of Americans investing in the cryptocurrency under a clear legal and regulatory framework. The process is simple: create an exchange account, complete KYC, deposit funds, buy Bitcoin, and store it securely. This 2025 guide explains how to buy Bitcoin in the USA step by step, covering safe storage, cost-effective payment methods, and tax essentials so you can invest confidently, whether you’re a beginner or seasoned trader.

Is It Legal to Buy Bitcoin in the USA?

Yes, Bitcoin is legal in the USA. The federal government recognizes Bitcoin as a digital asset, and multiple agencies regulate the crypto industry:

• The Securities and Exchange Commission (SEC) monitors securities-related crypto activities.
• The Commodity Futures Trading Commission (CFTC) oversees Bitcoin futures and derivatives.
• The Internal Revenue Service (IRS) enforces tax compliance.
• The Financial Crimes Enforcement Network (FinCEN) enforces anti-money laundering (AML) and KYC requirements.

The IRS classifies Bitcoin as property, which means you can legally buy, hold, and sell it. However, this classification also means that transactions trigger capital gains tax.

The main risks come from unregulated platforms, many of which operate overseas. They may offer attractive fees but often lack US consumer protections. For security, stick to regulated Bitcoin exchanges in the USA.

Step-by-Step Guide: How to Buy Bitcoin in the USA with Tangem (2025)

If you’re wondering how to buy Bitcoin in the USA in 2025, the Tangem Wallet makes the process simple, secure, and regulation-compliant. Instead of juggling exchanges and separate storage, Tangem combines buying and safekeeping into one streamlined experience. Here’s the exact step-by-step process:

Step 1 – Set Up Your Tangem Wallet

Download the Tangem app on your iOS or Android device. Pair it with your Tangem hardware wallet card or ring, then complete setup by creating a PIN and backing up your wallet. The setup process ensures that you can only control your Bitcoin.

Step 2 – Access Tangem’s Built-In On-Ramp

Open the Tangem app, tap Buy, select Bitcoin, and enter the USD amount you want to purchase. Tangem automatically connects you to trusted payment providers such as Mercuryo or Simplex, ensuring you get competitive rates.

Step 3 – Choose a Payment Method

Tangem supports multiple funding options:

• Credit/Debit Cards (Visa, Mastercard)
• Apple Pay / Google Pay
• Bank Transfers (where supported)

Pick the method that balances cost and speed. For example, bank transfers are cheaper, while cards and Apple Pay offer instant purchases.

Step 4 – Complete KYC if Required

Depending on the transaction size and payment provider, you may need to verify your identity. Typically, this involves submitting your government-issued ID, SSN, and proof of address directly through the provider’s interface.

Step 5 – Receive Bitcoin Directly in Tangem

Once the payment is confirmed, the Bitcoin is sent directly to your Tangem wallet address — not to an exchange. That setup ensures you retain full self-custody from the very first purchase, avoiding the risks of leaving funds on centralized platforms.

Step 6 – Back Up Your Wallet Securely

Finally, follow Tangem’s recommended backup process to safeguard your wallet. The backup process may include creating additional backup cards or securing your recovery setup. A backup ensures you can access your Bitcoin even if you lose your device.

The golden rule: Not your keys, not your coins. For long-term safety, consider the Tangem cold wallet, which removes seed phrase risks and simplifies storage.

Best Payment Methods to Buy Bitcoin in the USA

Choosing the correct payment method can save you money. Here’s how the main options compare:

• Bank Transfers (ACH, Wire) are the cheapest option. ACH is nearly free, while wires are faster but cost more.
• Debit/Credit Cards: Instant purchases, but higher fees (2.5–4%).
• PayPal: Convenient and widely accepted, with moderate fees.
• Cash Apps (Cash App, Venmo): Simple for small purchases; fees vary by app.

For regular purchases, ACH transfers are the most cost-effective. For quick buys, debit cards or PayPal are best.

How Much Does It Cost to Buy Bitcoin in the USA?

The actual cost of buying Bitcoin includes both fees and spreads. Always check exchange fees in the USA before choosing a platform.

• Coinbase: ~1.49% per trade, plus spread.
• Kraken: ~0.26% per trade.
• Binance.US: ~0.1% per trade, among the lowest.

Example Calculation:

If you buy $1,000 of Bitcoin on Coinbase, you’ll pay about $15 in fees and receive $985 in BTC. On Kraken, you’d keep around $997. On Binance.US, you’d keep about $999.

Taxes on Buying and Selling Bitcoin in the USA

Taxes are often the most confusing part of Bitcoin ownership. The IRS treats Bitcoin as property, not currency. For a detailed breakdown, read our Crypto Taxes in the USA Guide.

• You don’t pay tax when buying Bitcoin.
• You pay capital gains tax when selling, trading, or spending it.

Two Types of Capital Gains:

• Short-term gains (held less than 12 months): taxed at your regular income tax rate (10%–37%).
• The IRS taxes long-term gains (over 12 months) at lower rates of 0%, 15%, or 20%.

Example:

• You bought $2,000 of Bitcoin in March.
• You sold it in October for $3,000.
• Your $1,000 profit is a short-term gain, taxed at your income rate.

When filing taxes, you’ll report Bitcoin activity using IRS Form 8949 and Schedule D.

Alternatives to Buying Bitcoin on Exchanges

Exchanges aren’t the only way to purchase Bitcoin. Use exchanges for better pricing, but keep alternatives in mind for flexibility. Alternatives include:

• Peer-to-peer (P2P) platforms let you buy directly from other people. They are more private but require trust.
• Bitcoin ATMs, located across the USA, allow instant cash-to-Bitcoin purchases. Fees range from 5% to 10%.
• Buying Bitcoin directly through PayPal or CashApp is convenient, but users may face withdrawal limits.

Future of Buying Bitcoin in the USA

The US Bitcoin market continues to evolve in 2025.

• Bitcoin ETFs (like BlackRock’s and Fidelity’s) allow traditional investors to gain exposure through stock markets.
• Institutional adoption grows as hedge funds, banks, and corporations add Bitcoin to their balance sheets.
• Central Bank Digital Currency (CBDC): The potential launch of a US digital dollar may increase demand for decentralized alternatives like Bitcoin.

The future looks bright for Bitcoin adoption in the USA, with regulation improving investor protection while expanding access.

FAQ – Buying Bitcoin in the USA

Is Bitcoin legal in the USA?

Yes, Bitcoin is entirely legal under federal law.

What is the cheapest way to buy Bitcoin in the USA?

ACH transfers on low-fee exchanges like Kraken or Binance.US.

Can I buy Bitcoin with PayPal in the USA?

Yes, PayPal supports Bitcoin purchases directly.

What is the safest Bitcoin exchange in the USA?

Coinbase, Kraken, and Gemini are considered the safest regulated options.

Do you pay tax when buying Bitcoin in the USA?

No, you pay taxes only when selling, trading, or spending.

Can I buy Bitcoin anonymously in the USA?

No, US law requires KYC on exchanges. P2P platforms may allow more privacy, but still require verification in many cases.

How much Bitcoin should I buy to start?

There’s no minimum. Many exchanges let you buy as little as $10 worth.

Is Bitcoin a good investment in 2025?

While volatile, Bitcoin continues to attract institutional and retail investors as a hedge against inflation and currency risk.

Final Thoughts

Learning to buy Bitcoin in the USA doesn’t need to feel overwhelming. You can purchase Bitcoin confidently with the right exchange, verified identity, and secure payment method. Always transfer your coins to a hardware wallet for safe, long-term storage. By combining regulated exchanges with Tangem’s cold wallet solution, you protect your investment and set yourself up for long-term success. Bitcoin’s future in the USA looks strong, and the best time to start learning is today.