How to buy cryptocurrency with your bank account

If you want to buy cryptocurrency with US dollars, using a crypto exchange that accepts bank transfers can be one of the cheapest and most convenient solutions. But if you’re new to cryptocurrency, it can be tough knowing where to get started.

Read on for a list of which exchanges accept bank transfers and how you can buy crypto with your bank account.

Where to buy cryptocurrency with a bank transfer

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Name	Product	Deposit methods	Fiat Currencies	Cryptocurrencies
eToro USA LLC Cryptocurrency Trading		Wire transfer, Online banking	USD	25 cryptocurrencies	Get a $10 bonus when you deposit $100 or more. Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Copy the trades of leading cryptocurrency investors on this unique social investment platform. Non-US residents can read our review of eToro's global site here.	Go to site View details	Compare	loading Fetching your data...
FTX.US Cryptocurrency Exchange		Bank transfer (ACH), Cryptocurrency, Wire transfer	USD, AUD, EUR, CAD, GBP, SGD	37 cryptocurrencies	Sign up through Finder for a 5% discount on all trading fees. T&Cs apply. FTX exchange offers a range of cryptocurrencies, up to 10x leverage, access to global liquidity, no-fee debit cards for FTX users, fee-free first ACH deposit and benefits for FTT token holders.	Go to site View details	Compare	loading Fetching your data...
SoFi Cryptocurrency Exchange		Bank transfer	USD	21 cryptocurrencies	Win up to $100 in crypto with a qualifying first trade Instantly purchase a handful of leading cryptocurrencies with the SoFi app, which also insures your coins against potential hacks or theft.	Go to site View details	Compare	loading Fetching your data...
Uphold Digital Money Platform		Bank transfer, Credit card, Debit card, Bank transfer (SEPA)	USD, GBP, AUD, EUR, CAD, CNY, JPY, SGD, INR, NZD & 10+ more	125 cryptocurrencies	Refer a friend to earn US$20 — $10 for you and $10 for the person you refer. Buy, send and convert from 27 currencies in seconds, all on one platform.	Go to site View details	Compare	loading Fetching your data...
KuCoin Cryptocurrency Exchange		Cryptocurrency, PayPal, Wire transfer, Credit or Debit Card, SEPA	USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more	603 cryptocurrencies	Finder exclusive: Sign up and use code 1xf56 for one month of VIP 1 benefits. Deposit/transfer more than 0.1 BTC to KuCoin within 7 days of registration for 1 month of VIP 2 benefits. T&Cs apply. Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.	Go to site View details	Compare	loading Fetching your data...

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How to buy cryptocurrency with your bank account

Buying crypto with your bank account is actually quite easy. To show you how to do it, let’s look at an example of how to buy bitcoin (BTC) with US dollars.

• Step 1. Create a wallet

  For security reasons, you shouldn’t store digital coins or tokens on an exchange for an extended period of time. Instead, before buying any crypto, you should set up a secure wallet where you can store your private keys.

  Check out our guide to the best bitcoin wallets for more info on how to choose and use a wallet.

• Step 2. Register for an account on Coinbase

  Coinbase is a US-based digital currency exchange that accepts ACH bank transfers. To register for a Coinbase account, you’ll need to provide your email address and create a password.

  The site will require you to verify your identity and provide a photo ID before you start trading. Remember to also enable two-factor authentication on your account for an extra layer of security.

• Step 3. Link your bank account

  Go the “Settings” menu and click on “Linked Accounts,” then click on “Link a New Account” and add a payment method. You can then either verify your account instantly by providing the name of your bank along with your online banking username and password or choose to verify your account manually using a deposit verification process. This will require your bank name, routing number, account number and account type. Coinbase will initiate two small test deposits in the next two to three days — you’ll need to verify the amount of the deposits in order to link your account.

• Step 4. Buy BTC

  Once your account is linked and has been verified, you’ll be able to buy cryptocurrency on the exchange.

  Click the “Buy/Sell” tab at the top of the screen, find bitcoin in the list of currencies and click on “Buy Bitcoin.” Simply enter the amount of BTC you want to buy or the amount of USD you want to spend in the fields provided. Take a moment to review all the details of your transaction before you click “Buy Bitcoin.”

• Step 5. Transfer BTC to your wallet

  Once the transaction has been processed, remember to move your bitcoin off the exchange and into your private wallet. To do this on Coinbase, click on the “Account” link on the navigation bar and click on the “Send” button next to the Coinbase digital currency wallet you want to send from.

  Next, click on “Wallet Address” and enter the address of your private wallet. Enter the amount of currency you’d like to send, and then click “Continue.” Remember to review all of the detail before sending your cryptocurrency to your private wallet.

Choosing the right exchange

There are a number of platforms to choose from when purchasing crypto with your bank account, so compare your options to see how each exchange performs across a range of key areas:

• Payment methods. How can you send USD to the exchange: bank transfer, debit card and/or PayPal? Look for an exchange with your preferred method.
• Fees. How much will it cost you to complete your transaction? Remember to also consider the trading fees the exchange charges.
• Transaction limits. Are there any minimum or maximum limits on the amount of crypto you can purchase? When you want to transfer the crypto you purchase away from the exchange, what is the minimum withdrawal limit?
• Processing times. How long will it take for you to complete your crypto purchase from start to finish? For example, bank transfers can take four to five business days on Coinbase, though debit card purchases are almost instant.
• Supported cryptocurrencies. Which cryptocurrencies can you purchase directly with USD? Some platforms will only provide access to one or two popular digital currencies while others will offer a much wider range.
• Ease of use. Does the platform have a simple and intuitive user interface that you can navigate without any problems?
• Signup and verification. What information and documentation will you need to provide to register for an account? How long does the verification process take?
• Security features. What protective measures are in place to ensure the security of your funds? For example, does the platform support two-factor authentication? Where are your funds stored? Has the exchange ever been hacked?
• Customer support. How can you contact the customer support team? What contact methods are supported and during what hours is the team available? Is there an online help center where you can easily find solutions to a range of common problems?
• Reputation. Check out online forums and reviews to gauge what level of community trust the platform has. Would other users recommend it?

Answering these questions should help you narrow down your choices and find a platform that will work for you.

Compare exchanges now

Is it safe to buy crypto using a bank account?

Buying crypto with a bank account offers a safe and secure way to exchange USD for digital currency, but only if you’re certain you’re dealing with a reputable exchange provider. With this in mind, it’s essential that you thoroughly research the credentials of any platform before transferring any funds.

You’ll need to find out the following:

Of course, if you plan on buying cryptocurrency from someone through a peer-to-peer platform, you’ll need to be certain you’re dealing with a reputable seller before transferring any funds. This is why it’s a good idea to set up the trade through a marketplace that uses some sort of reputation system and has security measures in place to protect against fraud.

From a broader point of view, you should also be fully aware of the risks associated with buying cryptocurrency before you make a purchase. Cryptocurrencies are complicated and volatile assets, so there’s a risk of losing some or all of the money you spend.

Pros and cons

Next steps

If you want to buy crypto with your bank account, the first thing you need to do is start comparing a range of cryptocurrency exchanges. Compare their features, accepted payment methods, transaction limits, fees and level of community trust to find a platform that’s right for your needs.

Compare exchanges now

FAQs

• Is it legal to buy cryptocurrency with my bank account?

  Yes, at the time of writing, it’s legal to buy crypto with your bank account in the US.

• Can I buy bitcoin instantly with my bank account?

  No, bank transfers usually take several days to be processed. You can buy bitcoin instantly with your debit card.

• Can I buy cryptocurrency with my bank account without ID verification?

  If you’re making a peer-to-peer trade, it may be possible to buy crypto with your bank account without providing proof of ID. However, if purchasing through a crypto exchange or broker, you’ll most likely need to provide your personal details and proof of ID before you’ll be allowed to buy cryptocurrency using your bank account.

  For those looking to buy bitcoin anonymously, it’s worth pointing out that your bank account will be linked to your ID, so paying for your crypto via bank transfer won’t allow you to protect your identity.

• Are there any other options available to buy crypto with US dollars?

  Yes. There are several platforms that accept debit card payments and bank transfers from US customers, most notably Uphold. Other platforms, such as peer-to-peer marketplace Paxful, welcome deposits made via PayPal and other money transfer services, or you can use a bitcoin ATM to turn your cash into crypto.

Images: Shutterstock

Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.