The crypto market has grown with huge momentum over the past couple of years. Currently sitting at a $1.5 trillion market cap, cryptos have proved one of the most profitable investments in recent decades.
If you don’t want to miss this chance for growth and want to buy Bitcoin easily using a bank account, keep reading for our complete guide. We will discuss some of the top brokers for buying Bitcoin and explain why using a bank account is a smart choice for all investors.
How to Buy Bitcoin with Bank Account – Quick Steps
Let’s start by taking a quick look at how beginners can buy Bitcoin. It is quick and easy to do by following the steps below:
- Step 1. Open an account – To begin, you must open an account with your chosen trader. This can be done by visiting the website and following the on-screen instructions.
- Step 2. Verify account – Now you have created an account, you need to provide two forms on ID in order to verify your account.
- Step 3. Deposit – Now you have a verified account, you can add funds using a bank transfer from your bank account.
- Step 4. Buy Bitcoin – Search for Bitcoin and select the desired amount to add to your account!
It’s as simple as that to Buy Bitcoin with a bank account! Later on in the article, we will cover a more in-depth tutorial on how to buy Bitcoin, so don’t fret if the above guide seems too vague.
Where to Buy Bitcoin with Bank Account
We have had a brief look at how to buy Bitcoin, however, there are a number of brokers who offer crypto wallets. Good crypto wallets are very important as they allow investors to safely store all their crypto, as well as buy and sell it. With so many different brokers to choose from, it can be pretty daunting knowing where to start. To save you the time and hassle of research, we have selected our top two brokers and will review each in turn below. We will cover ease of use, fees, security, and much more for each.
1. Crypto.com
Crypto.com is our first pick for the best place to buy Bitcoin with a bank account. The platform was founded back in 2016 and has since grown to accommodate over 10 million users, highlighting its popularity. It is a great choice for beginner investors, as it has a very easy-to-use feel about it. Whilst this is good for beginners, there aren’t any tools for users to perform technical chart analysis, so it might not be a great option for more seasoned investors. That being said, it is available on IOS, Android, and desktop which is a great point to consider. There are also over 250 crypto assets to choose from, which means heavily diversified crypto accounts are easy to create.
In terms of security, Crypto.com is a solid choice. It has several state-of-the-art security measures built into the wallet. One such method is multifactor authentication, which requires users to authenticate every log in to their wallet. Whilst this might sound like a hassle, it is a great way to protect the wallet from fraudulent behavior. In the US, Crypto.com provides up to $250,000 insurance via the FDIC Scheme, meaning users can rest assured their funds will be safe.
A cool feature of Cryypto.com is that it gives users the option to get a physical Crypto.com card. This can be used at selected retailers and allows users to earn cash back on their purchases. Cashback will come in the form of crypto transferred directly into your Crypto.com account.
Regarding fees, Crypto.com is slightly expensice. Fees are based on transaction size, so vary with each trade. However, users can expect to pay around 0.4% of monthly trade volumes of less than $25k. However, if users are trading higher volumes then this number falls drastically, favoring high volume day traders.
To set up an account, all users need to do is visit the website or smartphone app. From here, just follow the onscreen instructions and enter some basic personal information. You can then buy bitcoin instantly with a bank account.
Pros Cons
Cryptoassets are a highly volatile unregulated investment product.
2. Binance
Our third best place to buy Bitcoin with a bank account is Binance. It offers users access to a whopping 500 crypto pairs, meaning there are a plethora of options to trade. Binance offers users the option to swap between advanced and simple modes. The simple layout is great for beginner users who want to hold assets over time. The advanced option allows users to perform technical analysis, which is a great option for crypto day traders who want to predict future price moves.
It is very easy to set up a Binance account by visiting the website and following the onscreen instructions. When users set up an account, they will be given a security key which they must note down if they ever want to switch devices. This is one of the many up to date blockchain security protocols than Binance offers. In addition to this, it also forces users to pass an identity verification puzzle each time users log in. This helps protects against hackers and other fraudulent activity.
Binance also offers a multitude of educational resources and videos. These are great for beginner investors who want to learn more about markets and other general crypto information. If you are a beginner investor then we would recommend taking a look through these before you deposit funds and purchase your crypto.
In terms of fees, Binance charges 0.5% commission on each side of a trade (buy and selling). When depositing funds with a credit card, users will incur a hefty 4.5% fee, so depositing your funds with a bank account may be a better option in this respect. Binance has also come under fire from regulatory authorities and is hence not available worldwide. To check if Binance is available in your region, visit the website.
Pros Cons
Cryptoassets are a highly volatile unregulated investment product.
Why Buy Bitcoin with a Bank Account?
If you follow crypto or are interested in markets, the likelihood is you will have heard of Bitcoin. It is the biggest coin on the market with a whopping £600bn market cap. What’s more, currently priced at £31,000, Bitcoin has generated an astonishing 47,000% returns over the past 5 years. However, at current, the crypto market seems to be following a bearish trajectory. This is because most other coins tend to follow the price of Bitcoin, which is down 24% in the past 12 months. This price drop could mark an excellent opportunity to load up on some Bitcoin for your portfolio. One of the quickest and easiest ways to do this is to buy Bitcoin using a bank account.
Speed
The first reason why buying Bitcoin with a bank account is a good idea is that it offers a quick transaction speed meaning you can buy bitcoin instantly with bank account. Most payments made with a bank account will be processed within a few days at most, meaning you can buy Bitcoin and store it in your account very quickly.
Ease of use
Most people have a UK bank account already set up, which means that it is very easy for them to use this method of payment. Many other payments such as e-wallet payments require accounts to be set up, and bank accounts to be pre-linked to them. Connecting your bank account to your broker directly bypasses all this hassle!
Security
Most banks will have existing security measures in place in order to prevent fraudulent payments. For example, if an account is trying to send money to an illegitimate broker, it will often flag up and you won’t be able to buy Bitcoin at that broker. An example of this is the UK bank Nationwide, which banned bank account payments to Binance.
Fees
Wondering how to buy Bitcoin with Bank account instantly? Finally, it is often very cheap to add payments via a bank transfer to brokers. This avoids the payments which are taken from e-wallet services like PayPal and Skrill. In addition to this, some brokers charge hefty fees – for example, Binance charges 4.5% – to deposit funds using credit cards.
Can You Buy Bitcoin with Bank Account with No Verification?
You may be wondering if it is possible to buy Bitcoin with a bank account without verifying your account. In most cases, the answer to this will be no. Most brokers force users to verify their accounts using some form of official ID before they can deposit funds. Whilst this may seem like a hassle, it is actually a very good security measure, as it helps protect against fraudulent payments. Due to the crypto industry being a largely unregulated industry, this is a key way in which brokers can regulate payment.
All of the brokers covered in this article will ask users to verify accounts before they deposit funds using a bank account. If users aren’t asked to verify accounts, then the likelihood is that the broker they are using may not have great security measures. Security should be a top consideration when signing up to any crypto account.
Once users have verified their accounts once and linked their preferred payment method to their brokers, they won’t have to keep verifying it every time they want to deposit more crypto. When you do verify your account for the first time, it is a very quick and easy process, and most platforms will have your documents verified within the hour.
Conclusion
The crypto market has swelled in popularity over the past few years, and this trend is only set to continue in the future. At the current price dip, Bitcoin could be a great addition to any portfolio seeking high growth. However, investors should be aware that the crypto market is very volatile, so proper risk management should be used at all times.
There are many different brokers that investors can use to buy Bitcoin, however, we recommend using Crypto.com. Firstly, with the crypto markets being largely unregulated, it offers the highest security protocols and is FCA regulated. In addition to this, users only pay 1% commission on crypto trades and zero commission on stock and ETF trades. It is also very easy to use, making it a great choice for beginner investors.