How to buy and sell cryptocurrency in the US
To buy and sell crypto in the US, verify an account, link a bank account or card, and place a market or limit order. Keep trade records for the IRS.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
On this page
- Not every exchange follows US rules.
- A limit order fills at your price or better, or not at all.
- The IRS treats crypto as property, so a sale can create a gain.
- Use an authenticator app instead of text codes for two-factor login.
Buying and selling cryptocurrency in the US usually starts at a centralized exchange, though person-to-person sales and decentralized exchanges are also options. You need an ID, a payment method, and a few minutes to place an order. Fees and withdrawal options differ across crypto exchanges.
What you need before you start
Trading on an exchange that serves US customers starts with an account and identity checks. Exchanges registered with FinCEN as money services businesses collect your name, address, and an identification number before you trade. Some brokerages let you buy crypto but not move it out; dedicated exchanges allow withdrawals.
Steps to buy and sell crypto
Once your account is funded, buying and selling happen on the same screen. A buy turns dollars into a coin, and a sell turns the coin back into dollars.
- 1Move dollars inLink your bank account or debit card and deposit dollars. A card deposit usually posts faster than a bank transfer.
- 2Place a buy orderPick the coin, enter the dollar amount, and check the fee and the total before you confirm.
- 3Choose market or limitA market order fills right away at the best available price. A limit order fills only at the price you set or better.
- 4Place a sell orderChoose the coin and the amount, then sell it for dollars or for another coin. A limit sell sets the lowest price you will accept.
- 5Withdraw the dollarsAfter the sell fills, send the dollars to your linked bank account.
After you trade: taxes and security
Two jobs remain after an order fills: keeping records and protecting the account. The IRS treats cryptocurrency as property, so a sale at a profit usually creates a capital gain you report.
- Log the date, coin, amount, price, and fees of every trade; swapping one coin for another is also a taxable sale.
- Turn on two-factor authentication with an authenticator app, because text codes can be stolen through a SIM swap.
- Set a withdrawal whitelist so coins can leave the exchange only to addresses you approved.
- Double check the address before you send, since a transfer on the Bitcoin blockchain cannot be undone.
Frequently asked questions
Your cash balance updates when the sell order fills, and a bank transfer usually takes a few business days.
Most exchanges charge a fee on each order, often a percentage of the trade, and some charge for card deposits.
The transfer cannot be undone, and only the recipient can send the funds back. Recovery is not guaranteed.
