Read our step-by-step guide to buying bitcoin and other digital currencies with a bank transfer.
If you want to buy cryptocurrency with Indonesian rupiah, 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
Quick guide to buying bitcoin with your bank account
- Register for an account with an exchange like Luno.
- From the menu, choose “Wallets”, then “IDR Wallet”, and click on “Deposit”.
- Choose the bank account you will be depositing from and enter the amount of IDR you wish to deposit.
- A virtual account number will show along with the amount you must deposit.
- Make payment on your banking platform and confirm the payment.
- Click “Buy” from the top navigation on the home screen.
- Search for bitcoin and click on “Buy BTC”.
- Enter the amount of BTC you want to buy or the amount of IDR you want to spend.
- Review transaction details.
- Enter your PIN or two-factor authentication code and confirm.
This is our quick guide to just one way to buy with a bank transfer.
Compare some other options in the table above.
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 Indonesian rupiah.
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:
- Bank account payment methods. How can you send IDR to the exchange from your bank account: bank transfer or any other methods?
- Fees. How much will it cost you to complete your transaction? For example, A fee of IDR4,000 will be charged for bank transfers on Luno. 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 on Luno will be reflected in your wallet almost instantly, while others can take one to two business days.
- Supported cryptocurrencies. Which cryptocurrencies can you purchase directly with IDR? 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?
- Sign up 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 centre 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.
How to store your cryptoIf 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:
- You don’t control your private keys, the exchange does
- Exchanges are frequently targeted by hackers and there have been numerous incidences of security breaches
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.
Is it safe to buy crypto using a bank account?
Buying crypto with a bank account offers a safe and secure way to exchange IDR 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:
- Who are the people behind the platform?
- Where is it based?
- How is it regulated and is it properly licensed?
- How long has it been in business?
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
- Buy crypto directly with IDR
- Relatively simple process
- Cheaper than buying with a credit card
- Suitable for beginners looking to get their hands on some digital currency
- Bank transfers can take several business days to process
- Only a limited selection of altcoins can be purchased with IDR – many digital currencies can only be exchanged for other cryptocurrencies
- Fiat-to-crypto trades usually attract higher fees than crypto-to-crypto trades
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.
Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.