Bitcoin has been the talk of the town for many years now. From big investment gurus to the everyday joe, everyone seems to have something to say about it. The chatter surrounding cryptocurrency is mainly due to its get-rich-over-night prospect. However, crypto isn’t as simple as many people make it out to be. It has its share of risks and problems, and no one should invest without doing their due diligence first.
Having said that, if you are living in America as a student with an F1 visa, you might be wondering if it is legal to trade Bitcoin or any other cryptocurrency. In this article, I will address the legality of trading crypto as an F1 visa holder.
In this Article
Can I trade cryptocurrencies as an F1 Visa Holder?
Yes. The United States allows all visa holders to buy and sell cryptocurrency without any legal repercussions. While it is true that you cannot start a business or work at a company on your F1 visa, you can trade in the stock market, including cryptocurrency.
So essentially, regardless of your visa type, you can invest and trade cryptocurrency in the U.S. No matter if you are F1, H1B, J1, L1, OPT, or a refugee, you are allowed to trade. However, do keep in mind that you have to report your earnings to IRS. This is important. Don’t try to hide your revenue from the government; this may present legal hurdles down the line.
Will the Government tax my Profits?
Yes. The American government will tax your earnings from crypto trading. Much like property, cryptocurrency is considered an asset, and assets are taxable under U.S. law. Moreover, keep in mind that you may be asked to present your SSN or ITIN number before trading when you sign up for a trading platform.
What is a Bitcoin Exchange, and Why Do I Need it?
Much like the stock exchange, you will need an intermediate platform to buy and sell Bitcoin. This digital market is what is known as an exchange. An exchange facilitates traders to buy and sell a particular cryptocurrency, i.e., Bitcoin, using fiat money.
When you want to purchase, say, Bitcoin, you will need to choose one of the many exchanges available. Like a traditional stock exchange, a Bitcoin exchange will act as a market where you can buy bitcoin and sell it when you deem fit.
You will need to register with an exchange first and go through the various verification steps. Once you are verified, you will be assigned an account to transfer funds to and buy Bitcoin.
Some of the most reliable and popular Bitcoin exchanges are as follows:
If you are starting in Bitcoin, then I would suggest that you go with Coinbase. Coinbase is regarded as one of the most reliable and secure bitcoin exchanges in the world. They have excellent customer support, and their platform is straightforward and easy to use.
Once you gather some experience, you can then move onto other platforms. However, do keep in mind that the current Bitcoin market is very volatile. Tread with caution and refrain from investing too much. It would help if you started with minimal investment and then incrementally increase it as you better understand the market.
What is a Digital Wallet?
A digital wallet or Bitcoin Wallet is a software program that allows you to store your cryptocurrency safely. Since crypto is not a physical currency, you need a security system to keep the relevant digital information. The very first step to start crypto trading is to get yourself a digital wallet.
You can keep your digital wallet in a few different ways depending on your use. There are desktop wallets that install on your computer and give you complete control of your crypto. If you want ease-of-access, then there are mobile wallets as well. However, these are considered risky as you can lose your mobile. If you want the most secure solution, then you can opt for a hardware wallet. A hardware wallet is the safest form of digital wallet because it stores your crypto on a separate device. This device can only be accessed when you plug it into a computer via a USB port.
Following are some of the best Bitcoin Wallets available:
Again, if you are a beginner, I suggest that you go with Exodus for your digital wallet. Exodus offers both desktop and mobile apps to store and access your Bitcoin. It is perfect for beginners due to its easy-to-use interface and sublime customer support.
However, once you get more comfortable with cryptocurrency, you may start to notice some limitations. This is where other wallets like Electrum come into play. Electrum offers far greater features than Exodus. However, I don’t recommend it for beginners as it doesn’t have any customer support.
Should I invest in Bitcoin as a college student?
Yes and no. As a college student, it all depends on how much effort and time you are willing to invest in learning about Bitcoin. The world of cryptocurrency is hugely volatile, and understanding the trends and risks is very important.
My advice is to take small steps and research it from credible sources if you are interested. If you want to know more about this question, then head over here, where I talk in more detail about Bitcoin and its implications for college students.