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You’re here because you want to purchase Bitcoin with your bank account.
And that’s a great choice.
Buying Bitcoin via a bank is the cheapest way to buy Bitcoin, allowing you to get the most out of your money.
Buying Bitcoin is an intimidating process for beginners, and that’s what we’re here for.
If we had to summarize the best ways to buy Bitcoin with your bank account for Q4 of 2020, they would be:
Coinbase is considered by many to be the most beginner-friendly brokerage. Their beginner onboarding process is extremely simple and walks you through the entire buying process. For their services, Coinbase charges a 1.49% fee on bank account purchases which is competitive with the rest of the exchanges we’ll mention in this guide.
Due to the nature of bank transactions, it’ll take a few days for funds to reach the exchange (Bitcoin fixes this). It’s important to know that when you use a bank account to purchase cryptocurrency on Coinbase or any exchange/brokerage for that matter, the price you buy or sell at is locked in, regardless of the funds have reached your account.
eToro is an interesting option when it comes to cryptocurrency brokers. What sets eToro apart is their social trading and copy trading features, allowing you to view the most successful traders on the platform, and mimic their trades as part of your trading strategy.
eToro only supports deposits via bank account, so if you were planning to use a card that won’t be possible. For fees, eToro charges differently depending on the coin. Expect a .75% fee when trading Bitcoin. Other cryptocurrencies fees will vary.
Bitpanda is an extremely reliable exchange that has several payment options and cryptocurrencies available. For bank transfers, Bitpanda allows SEPA, SOFORT and online bank transfers.
They recently updated their fees to be the lowest in the industry. Bitpanda charges users a 1.49% purchasing fees when a bank account is used, and 1.29% fee when selling to your bank account.
Bitpanda has also eliminated transaction fees to and from the exchange, making it simple to send any amount of cryptocurrency. They eliminate this fee by covering it themselves!
Bitpanda added support for other currencies than the Euro, such as the Swiss Franc, British Pound and US Dollar.
The main downside of Bitpanda is that it is limited in the countries that it can serve. It is only available to users in Europe, including Switzerland, Croatia, and Norway.
They have a wallet built into the exchange where you can keep your coins, but we do not recommend leaving cryptocurrency in an exchange wallet for a long period of time.
These new changes offer customers better usability and improved speed and making Bitpanda one of our highest recommended cryptocurrency exchanges.
Gemini is another US-based exchange that has pretty low transaction fees between .1%-.75%. This fee scales by trading volume, with the first discount at 10 BTC traded in the past 30 days.
The exchange can be somewhat difficult to use for a beginner but once gotten the hang of, is a great exchange.
Gemini serves all states except Hawaii but plans to support them soon. In addition to the above-mentioned states, they also support, Washington D.C., Canada, Hong Kong, Singapore, Puerto Rico, South Korea, and the U.K.
A convenient feature of the exchange is that you can instantly purchase cryptocurrency with any method, and will not be charged for a few days. This is great for buying dips or bottom.
Gemini is a pretty safe exchange and has no major hacks or security leaks. Funds on the exchange are FDIC insured, meaning in the event of an exchange hack your funds are insured up to an amount.
Gemini’s customer support gets some flak for being slow, and somewhat unhelpful, but in my experience, I have had no issues. Gemini is also owned by the Winklevoss twins who had very early involvement with Facebook.
Kraken is a great option too, they are based in the US and allows Bitcoins to be purchased with ACH transfers. They have a somewhat difficult to use user interface so I would not recommend them to a beginner.
Kraken offers XBT (their version of Bitcoin) as well as the following fiat currencies: USD, EUR, CAD, and JPY.
The following deposit methods are used on the exchange:
They have a great security system and are extremely trustworthy. As far as fees go, expect a .25% taker fee and a .1% maker fee when using a limit order. Depending on your account’s verification level, users can purchase different amounts of cryptocurrency monthly.
Coinbase Pro, once known as GDAX is an exchange owned by Coinbase, that allows its users to purchase Bitcoin with near 0% fees.
This exchange is far more complicated than some of the other exchanges, so we don’t recommend this for new cryptocurrency buyers. If you feel up to the challenge of learning how to use Coinbase Pro, we highly recommend this method for buying Bitcoin with your bank account.
Swan is a Bitcoin-only savings company, making it easy for anyone to dollar cost average at their pace. Signing up is as easy as filling out answers to sentences asking the amount and frequency of Bitcoin you’d like to purchase. Linking a bank is extremely straightforward and secure.
At Swan, they know that keeping a balance on an exchange is never a great idea, so they also allow you to withdrawal balances automatically once you’ve reached a certain threshold.
If you decide to buy Bitcoin on Coinbase, you will need to create an account. Click “Create Account” and then confirm your email.
After confirming, you will be asked to confirm your phone number. Type in your phone number and Coinbase will text you a code. Enter the sent code to go the next step.
Next, you will need to verify your identity by entering several fields. Coinbase requires this due to the United States regulations.
Don’t give up yet, we are almost ready to buy Bitcoin!
Press the settings tab on the navigation bar and click “Link a new account”. On this page, you can select the payment method that you want to link.
In this tutorial, we will be buying Bitcoin with our Bank account as it is the lowest fee option. As stated above, using a bank account will cause your Bitcoin to be delivered in a few days.
This can be annoying, but on the bright side, the price you buy in at is locked after buying.
After linking your bank account you are ready to buy Bitcoin!
Go to the navigation bar and click the Buy/Sell tab. From here, you can enter an amount of Bitcoin that you want to buy, or the amount of $ that you want to buy. The opposing field will be filled in automatically.
Click the blue Buy Bitcoin button when you are ready!
You have successfully purchased Bitcoin! Wait a few days for the Bitcoin to arrive in your account. After your Bitcoin arrives, you may want to move it to a secure hardware wallet.
Learn how to and why you should store Bitcoin on a hardware wallet in our guide.
Buying Bitcoins with a bank account is one of the most popular ways to buy Bitcoin. You get the most out of your money by getting extremely low fees.
By buying Bitcoin with your bank account, you are purchasing Bitcoin with the lowest fees! The next way to reduce the cost of buying Bitcoin is to use the exchange that has the lowest going rate for Bitcoin.
The cost differences between Bitcoin will usually be pretty small but is an option for those looking to get the most bang out of your buck.
Always check what the current price of Bitcoin is before making a purchase on an exchange. Occasionally there is a discrepancy between exchanges.
Due to the outdated processing times involved with bank accounts, purchasing Bitcoin instantly with your bank account is not exactly possible.
Expect to wait around three to five days for Bitcoin or other purchased cryptocurrency to reach your account. If you are concerned with locking in your price, most exchanges do that upon checkout anyway.
Buying Bitcoin via a bank transfer or bank wire is the lowest fee option when purchasing from an exchange.
Although you do not receive your funds instantly, the price you purchased at is saved. Unless you want to purchase Bitcoin and quickly move it off the exchange, a bank account is the best method for purchasing Bitcoin.
It also is the highest limit option, allowing users to purchase huge amounts of cryptocurrency on certain exchanges.
Besides the time it takes for Bitcoin to arrive to your wallet, there is no real downside to using your bank account. For those concerned with privacy, a bank account purchase may not be your best option.
Yep! After you decide to sell your Bitcoin, you can keep the funds on the exchange, or send it back to your bank account! Certain exchanges charge a fee for this process, so keep an eye out for that.
We recommend Coinbase, due to its low fees, good purchasing limits, and the extremely simple user interface. It’s CEO is Brian Armstrong, and is very well known in the cryptocurrency community.
Buying bitcoins with a bank account is an extremely popular method due to the high purchasing limits and low transaction fees associated with it. If time is a concern, consider purchasing Bitcoin with a credit or debit card.