By
Tim FalkUpdated
Kraken Cryptocurrency Exchange
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.
Disclaimer: This page is not financial advice or an endorsement of digital assets, providers or services. Digital assets are volatile and risky, and past performance is no guarantee of future results. Potential regulations or policies can affect their availability and services provided. Talk with a financial professional before making a decision. Finder or the author may own cryptocurrency discussed on this page.
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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.
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.
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.
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.”
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.
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:
Answering these questions should help you narrow down your choices and find a platform that will work for you.
If you want to store your newly acquired crypto coins on the exchange where you bought them, you can. However, this is not recommended for a couple of reasons:
With this in mind, the safest course of action is to move your digital coins into a secure wallet that allows you to retain control of your private keys. From desktop and mobile wallets to online and hardware wallets, there are plenty of options to choose from. Make sure you do your research before picking one that’s right for you.
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.
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.
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.
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.
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Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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