Binance is a leading cryptocurrency exchange but it is currently unavailable in Texas. So, if you live in Texas and want to trade cryptos, you’ll have to search for alternatives.
Let us discuss what are some popular options for you other than Binance in Texas for trading cryptocurrencies.
Is Binance Allowed in Texas in 2022?
Binance is not allowed in Texas state currently. The state of Texas had banned Binance and a few other cryptocurrency exchanges.
Binance was launched in the US in 2019 and it initially offered six crypto assets. However, Binance is available in several other states but it is banned in the following states:
- Hawaii
- New York
- Texas
- Vermont
Please note that Binance and Binance.com are two different entities. Earlier, Binance.com had banned US citizens from using its platform.
The Binance trading platform is available now for US citizens except in the four states listed above. It was launched with the local partnership of BAM trading in the US.
Why Binance is Not Allowed in Texas?
Binance.com had banned US citizens from using the platform. The ban to enter the Texas state may have come as a reaction to that ban as well.
However, the Texas state commissioner cited other reasons for banning Binance in the state.
Texas Securities Commissioner pointed out that Delta Crypt Limited (Binance) is an unregulated entity and is not allowed to trade in the state.
Further, the state commissioner stated that the platform was found to be involved in deceptive and misleading trading advertisement activities.
For example, the commissioner stated that the company was offering a staggering and unrealistic return of 30% on one of its investment plans and 40% on another.
The state commissioner rules these offers as “fraudulent” and “deceptive” when issuing the ban orders.
When Binance was first launched in the US, thirteen states had banned the platform initially. However, some states had lifted the ban and now it is unavailable only in four states including Texas.
Binance Alternatives in Texas
If you want to buy, sell, hold, or trade cryptocurrencies in the state of Texas, you’ll have to look at Binance alternatives.
Here are a few choices for you to use cryptocurrencies in Texas.
1) Coinbase
Coinbase is one of the leading crypto exchanges in the US. It has a global presence in other countries as well.
Coinbase comes with a lot of educational material, an extensive range of cryptocurrencies, and an excellent trading platform for its users.
Coinbase offers the Coinbase Pro version as well. The Pro version offers a few additional features to the standard trading platform version and a reduced fee structure.
The only disadvantage of using Coinbase for you is the high trading cost with it. Coinbase has relatively higher trading and non-trading commission as compared to its competitors in the US.
2) Kraken
Kraken is a US-based cryptocurrency exchange. It was founded in 2011 and operates in different countries around the world.
Kraken is available in the state of Texas and is an excellent alternative to Binance.
It offers 95 cryptocurrencies including the majors like Bitcoin and Ethereum as well as alternative coins Dogecoin, Cardano, Binance Coin, etc.
Kraken comes with a competitive pricing model as it follows the widely used maker-taker fee model.
Its maker fee ranges from 0.0% to 0.16% and the taker fee range from 0.10% to 0.26%. its deposit and withdrawal fees vary by the payment method used.
For instance, its online banking processing fee is 0.5% per transaction.
3) Gemini
Gemini is another renowned cryptocurrency exchange that offers a viable alternative to residents of Texas.
Gemini offers around 114 cryptocurrencies and 8 fiat currency pairs for trading. You can buy, sell, and trade cryptocurrencies and altcoins on this platform easily.
It does not require a minimum account deposit like its competitors as well. So, getting started with Gemini is easier.
It offers a competitive trading fee structure is:
- Order amount below USD 200: USD 0.99 – USD 2.99
- Order amount over USD 200: 1.49%
- Convenience fee: 0.50%
Its withdrawal and deposit fees are also competitive apart from deposits through a debit card that incurs a fee of 3.49% per transaction.
4) eToro
EToro is a famous trading platform since 2007. It has been offering services worldwide since its launch. It started offering services in the US in 2020 as well.
It is available in 45 US states including Texas. So, users in Texas state can use it as a viable alternative to Binance.
With eToro, users can trade convectional trading assets as well as cryptocurrencies. It offers 30+ cryptocurrencies which is a small number as compared to other options we have discussed.
Its transaction fee for cryptocurrencies is 1%. It’s important to mention that eToro does not offer direct cryptocurrency trades to US citizens.
Users can convert cryptocurrencies to fiat currencies at a 5% fee. This conversion fee is a bit higher as compared to the other options we discussed.
5) Bitcoin ATMs
If you are only interested in buying Bitcoins in Texas, you can use Bitcoin ATMs as well. This is an easy option for users looking to convert their fiat currencies into Bitcoins.
However, the drawback of using Bitcoin ATMs is the higher cost of transaction fees. Bitcoin ATMs usually charge around 5-10% transaction fees.
How to Invest in Cryptocurrencies in Texas?
You can follow these simple steps to invest in cryptocurrencies in Texas.
Step 01:
The first step is to compare cryptocurrency exchanges in Texas. As mentioned, Binance is currently unavailable in Texas.
So, you’ll have to consider an alternative trading platform. Make sure to analyze the key aspects like trading fees, withdrawal and payment methods, available assets, and conversion options.
Step 02:
The second step is to open an account with your chosen cryptocurrency exchange. This step will require you to provide your ID, contact details, and linking a debit/credit card to get started.
Step 03:
The third step is to evaluate the performance of different cryptocurrencies or other digital assets that you want to invest in.
You can search these assets on the cryptocurrency exchange you have selected. Then, learn to analyze their long-term performance prospects.
Consider their past performances and keep a close eye on the price volatility as cryptocurrencies have been highly volatile historically.
Step 04:
When you want to buy or trade cryptocurrencies, you’ll need a digital wallet. Your chosen crypto exchange will likely offer a digital wallet as well.
Else, you can open an account with another digital wallet provider. However, it will incur an additional transfer fee for you.
Step 05:
Once you are familiar with the account set up and ready to invest in your chosen asset, you can start trading cryptocurrencies.
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