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You'll need a Bitcoin wallet before you buy since some exchanges require one.

Don't have a wallet? Read our guide on the best Bitcoin & cryptocurrency wallets.

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Texas attracts a range of Bitcoin investors, from retail to institutional. They are drawn to the Lone Star state by its pro-business attitude, zero state income tax, and low energy costs.

This last factor was what convinced Bitmain - the world's largest manufacturer of Bitocoin mining equipment - to open a new mining operation in Rockdale, Texas. In an old Alcoa aluminum smelter now sit three football field lengths of cutting edge technology: ASIC miners that work in sync to validate transactions on the Bitcoin network.

The plant is a boon for the town of Rockdale, with its population of just over five and a half thousand. While it will initially operate at a capacity of 50 MW, Bitmain says that they have plans for the facility to go up to 300 MW.

Institutional investment such as this has shown a real need for clear regulation and support for the Bitcoin industry in Texas, and lawmakers have risen to the task. The Texas Blockchain Council was formed to promote the interests of biotcoin enthusiasts and businesses in the state.

Texas's nearly $2 trillion dollar economy, wealth of local talent, and abundant natural resources make it an ideal candidate for the title of blockchain innovation hotspot.

If you're looking to buy Bitcoin for yourself, the safest and most convenient way is to use an exchange. All of the major Bitcoin exchanges are available in Texas.

You can also use Bitcoin ATMs if you're looking to turn cash into crypto quickly.

Or, if you want to spend the cash in person,LocalBitcoins is a peer-to-peer marketplace that supports many different payment methods, from cash in person to Amazon gift cards.

LocalBitcoins market for Texas

No matter where you buy your Bitcoin, you're going to need to store it somewhere. Exchange wallets are notorious for hacks, and there are much more secure options out there that suit a range of needs, from easy to use software wallets to top of the line hardware wallets.

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Texas has access to many large Bitcoin and cryptocurrency exchanges.

Take a look at our favorites below:

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There are three main types of Bitcoin wallet and all of them are supported in Texas:

• Software (desktop or mobile - iOS and Android wallets
• Hardware wallet
• Cold-storage (paper or steel wallets, the latter of which are used to backup your main wallet.

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The Texas State Securities Board has not been shy in prosecuting operations that it considers to be scamming Texans.

In 2018, the SSB ordered Bitcoin Trading & Cloud Mining Ltd. also known as BTCRUSH, and Forex EA & Bitcoin Investment LLC to cease their activities in the state after failing to provide required information about their financial situation and trading strategies.

Texas court order to cease operations for Bitcoin Trading & Cloud Mining Ltd.

In July 2020, the Texas SSB ordered South African company Mirror Trading International (MTI) to cease operations immediately. They accused MTI of being a multilevel marketing scam which did not deliver on its promises of 0.5% daily returns. The SSB specifically accused MTI and four associates of misleading Texans about the directors' work histories and investment backgrounds.

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In addition to Bitmain's 50 MW mining operation in Rockdale, Texas is home to a 100 MW facility in the west of the state. This Bitcoin mine is operated by Layer1 Technology, which raised $50m in seed funding from investors including Peter Thiel.

A view of Rockdale, TX where Bitmain opened one of its largest mining farms

A third firm, Northern Data based out of Germany, announced plans to build the world's largest mining operation, also in Rockdale. Northern Data claims that they will use 1 whole gigawatt of energy, which is currently almost 10% of the entire network's consumption.

Texas's abundance of natural gas and a recent boom in wind power mean that energy is cheap, which is one of the largest costs that Bitcoin miners must incur. Additionally, Texas's energy market is deregulated, which makes it easier for large customers such as Bitcoin miners to negotiate individual deals with energy suppliers.

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Does Coinbase Work in Texas?

Does Gemini Work in Texas?

Yes, Gemini is available in Texas.

Does Coinmama Work in Texas?

Coinmama is available to Texan Bitcoiners.

Does Kraken Work in Texas?

Kraken - the U.S.'s second largest exchange - is open for business in Texas.

Where Can I Find a Bitcoin ATM in Texas?

The best way to find a Bitcoin ATM in Texas is to look at the map below or use a site like CoinATM Radar.

Here, you can view the closest Bitcoin ATMs to you, and even view live prices for supported digital assets.

What Can I Buy With Bitcoin in Texas?

It has not always been easy to find retailers willing to accept Bitcoin outside of some niche industries, and of course the numerous darknet markets that began with the Silk Road and have proliferated since then.

In the last few years, however, more and more stores have been offering payment with crypto. The Microsoft Store supports payment with Bitcoin, and Overstock.com's partnership with Coinbase allows you to pay for any of their products with crypto.

Source: CoinMap.com

Coinmap has a list of brick and mortar retailers that accept Bitcoin for payment. Texas is well served by crypto-friendly businesses. Dallas has the highest concentration, closely followed by Austin, San Antonio, and Houston.

A number of charities accept Bitcoin for donations. Wikileaks and Wikipedia are two of the biggest and best known. The Tor Project accepts Bitcoin donations, as well as the Electronic Frontier Foundation.

Some big news recently has massively expanded the number of businesses where you will be soon able to spend your Bitcoin. PayPal announced in October 2020 that customers will be able to buy and sell Bitcoin within their platform. Additionally, you will be able to spend your crypto at all of the 26 million sellers around the world, whether it's paying for your monthly Netflix subscription or shopping on eBay. This feature - which is scheduled to launch in the U.S. in early 2021 - is a giant leap toward mainstream Bitcoin usage and adoption.

How Can I Mine Bitcoin in Texas?

Bitcoinmining is the process of using a computer to perform the difficult calculations that secure the network and make Bitcoin a proof of work cryptocurrency.

While in the early days of Bitcoin you could earn sizable amounts of Bitcoin (and many people did) with just a desktop computer, these days the emergence of commercial mining farms with specialized hardware has made that all but impossible. Still, there are software programs you can run on any computer if you wish to see how it works just for curiosity's sake.

If you're looking to start a profitable mining operation, it's essential to calculate your profit factor using the amount of hash rate available to you, the current price of Bitcoin, the power consumption of your operation, and the cost of your electricity.

Source: AsicMinerValue.com

Note: Some of these are Ethereum miners, see the Algo column

Which Texas Banks Support Bitcoin Wallets?

With more and more institutions getting into crypto - and especially Bitcoin - you might be wondering if you can custody your own BTC with a bank. It's easy to imagine a future where you can log in to your online banking and simultaneously see that your paycheck has come through while watching the value of your crypto portfolio.

This year alone, there have been big steps in that direction. The state of Wyoming has issued two bank charters, one to Kraken Financial and one to Avanti. These two institutions are now classified as special purpose depository institutions (SPDIs). This designation is not quite a money transmitter license - the Holy Grail of bringing all payment flows in-house - but it does allow the two firms to conduct business that will help them achieve a money transmitter license in future.

For example, Avanti has been granted approval to issue its own stablecoin called Avit. After building up a record of responsible business dealings, the hope is that regulations will evolve to the point where crypto banks can do everything that the major retail banks can do.

However, there are no Texan banks that currently offer cryptocurrency wallets or custody to retail investors. You'll need to secure your holdings with one of the many great wallets outlined below.

There has definitely been a large amount of progress in that direction, though. Every year it gets easier to invest in Bitcoin, and crypto services become more and more beginner friendly. JPMorgan's recent announcement that it will be providing banking services for Coinbase and Gemini is a sign that big things may be just around the corner.