Using a local bank account, you can purchase Bitcoin. You’ll need to employ a cryptocurrency exchange—more especially, crypto on-ramps—to accomplish that. The majority of these exchanges will need you to finish a KYC procedure, which includes providing a legitimate ID.
We will discuss how to instantly purchase Bitcoin using your bank account in today’s article. Finally, we will provide a few exchanges that support this choice.
Benefit of Using a Bank Account to Purchase Bitcoin
To put it another way, entering the world of cryptocurrencies has not always been easy because most platforms, especially centralised exchanges, forbid new users from purchasing cryptocurrency like Bitcoin using a bank account. For those who do, though, it saves a lot of money for both the user and the exchange. Although gift cards are a viable option for purchasing Bitcoin, using your bank account to do so has some serious advantages.
Here are a few of them.
1. Lower costs
You’ll notice that transaction costs for Bitcoin trades on exchanges are nearly always up to 3% if you’ve looked at them. Some even charge extra! However, bank transfers save money for both you and the exchange. Why?
Although there are several ways to move money between banks, the ACH (Automated Clearing House) transfer is a widely used method among domestic banks. It’s a far less expensive type of electronic transfer.
Credit or debit transfers can be made via ACH. These are not subject to the same fees as payments made with credit cards.
2. Quicker transaction processing
Purchases of Bitcoin made using a bank account always result in faster transactions. This is because electronic transfers, which transport money between banks without the need for a drawn-out protocol, are typically faster than bank transfers.
3. Increased safety
Using your bank account to purchase Bitcoin is far safer than using other payment options. Your personal information is kept on file by banks, and before any transactions take place, two-factor authentication is frequently implemented to make sure you are the one authorizing the transfer of funds.
4. Increased Spending Caps
You can spend a lot more when using bank transfers from your bank account than when using a credit card or other payment options. Spending limits are typically larger, allowing you the freedom to buy additional Bitcoin if you choose.
So, how can you use your bank account to pay for Bitcoin?
How to Use Your Bank Account to Purchase Bitcoin
Now that you know, purchasing cryptocurrency with a bank account is easier than it may seem. All you have to do is approve a money transfer from your domestic bank account to the wallet on your exchange.
Prior to anything else, make sure you have a bank account and select an exchange that takes these kinds of payments. Following that, follow these instructions to quickly purchase Bitcoin using your bank account.
- Make an account on the exchange of your choice. If you already have an account, log in.
- Finish the verification process. The majority of exchanges demand that you finish the KYC procedure, which includes presenting a legitimate ID.
- Connect your exchange wallet to your bank account. This option can be found in your profile’s payment section.
- Deposit money in US dollars (or, if supported, your local currency) from your bank account into your exchange account.
- Start a transaction to buy Bitcoin. Select the desired purchase amount in USD units, then use the money you’ve previously deposited to make the payment.
- You’ll get notifications confirming your successful Bitcoin purchase. After that, you can either leave it in the exchange wallet or move it to your Bitcoin wallet.
Where to Buy Bitcoin With Your Bank Account
Not all exchanges provide the option of paying for crypto with your bank account. Some of the ones that do are as follows:
Each exchange allows users to make either ACH or SEPA transfers to pay for Bitcoin. Credit/debit card payments incur charges of almost 3.5%, while bank transfers incur charges as low as 1.5%. The only drawback is the lack of anonymity. But it’s a relatively small price for the ease and cost-effectiveness of paying with your bank account.
Advice for Using Your Bank Account to Purchase Bitcoin
These are crucial pointers to keep in mind while using your bank account to pay for cryptocurrency.
- Select a trustworthy and safe exchange.
- Examine the ratings and reviews left by customers. Verify whether they accept your local currency or if there are any regional limitations.
- Finish the KYC process. You should validate your identity for your own protection in order to stop unauthorized activity on your account.
- After purchasing, it’s best to move your Bitcoin to a wallet instead of storing it on a centralized exchange.
In summary
Acquiring Bitcoin with a bank account is the most convenient and cost-effective method. These are simple, short actions that we have outlined in this article. You must choose a trustworthy cryptocurrency exchange, register there, and have a bank account. Make sure you authenticate yourself and familiarize yourself with the many features of any exchange you want to utilize.
Instead of using your standard credit or debit card to make purchases, consider using your bank account to pay for Bitcoin.