Cryptocurrency enthusiasts may want to consider moving to Nevada: It ranks as the No. 1 most crypto-friendly state in the U.S., according to a 2022 SmartAsset study.
This is due to a number of factors, including high availability of jobs within the crypto industry and crypto-friendly legislation. Local governments aren't allowed to tax blockchain technology, the underlying tech that cryptocurrency relies on to operate, for example.
Although California is home to Silicon Valley and known as a hub of tech innovation, it ranked third in SmartAsset's study.
Californians search for crypto-related keywords on Google more than any other state, but government regulation of cryptocurrency use remains unclear in the state, which dragged down its ranking.
Here are the top seven states for cryptocurrency enthusiasts, according to SmartAsset:
4. TIE: New Jersey
4. TIE: Texas
To find the best states for crypto enthusiasts, SmartAsset analyzed data for all 50 states across five categories related to cryptocurrency: average number of Google searches, local government regulation, job postings, crypto friendly merchants and number of bitcoin ATMs and tellers.
No matter what state you live (or trade) in, it's important to remember that cryptocurrency is a highly volatile asset and is subject to unpredictable price swings. There's no guarantee that you'll earn a profit on your investment, which is why financial experts typically advise that you only invest as much as you're willing to potentially lose.
If you're interested in a more tried-and-true investment strategy, you have plenty of options, such as the S&P 500 index, which tracks the stock performance of America's top 500 publicly traded companies.
"Buying an S&P 500 index fund regularly and then holding on through thick and thin has built the fortunes of many American millionaires," says James Royal, principal reporter at Bankrate.