How to buy Bitcoin & other crypto with your bank account?
Are you wondering how to buy Bitcoin & other crypto with your bank account? In this article, I’ll teach you how to buy Bitcoin, Ethereum and other cryptocurrencies with your bank account in 6 steps.
Step 1: open an account with a crypto exchange
A crypto exchange is a company that allows private investors to buy and sell crypto. You can connect a crypto exchange directly to your bank account. In the overview below, you can immediately see which crypto exchanges you can join:
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It is important to pick a reliable crypto exchange: this reduces the chance of losing your crypto investment!
Step 2: verify your account
Before you can trade crypto with real money, you must first verify your account:
- Passport: upload a copy of your passport within the platform.
- Address: upload proof of your residence, e.g. a utility bill.
- Experience: answer the questions about your investment experience with crypto.
- Wealth: answer the questions regarding your financial situation.
Crypto exchanges, like other financial institutions, are obliged to verify your identity. This verification prevents crypto accounts from being used for criminal purposes.
Step 3: deposit money from your bank account
After your account is approved, you can deposit money from your bank account. It is essential that the name of your bank account matches the name with which you registered your crypto account. Copy the details of your bank account when depositing money: this ensures that the money will end up in the right place. It can take up to several working days for a deposit to be processed.
Step 4: select a suitable crypto
Bitcoin & Ethereum are the most popular cryptocurrencies you can invest in. However, there are thousands of altcoins you can invest in. It is important to properly research how a cryptocurrency works before you invest in it. You do this by reading the white paper: in the white paper, the developers explain the functionalities of the cryptocurrency.
Step 5: buy crypto with your bank account
Select the crypto you want to buy within the trading platform and fill in the requested details:
- Amount: determine how much you would like to invest in the crypto of your choice.
- Order: when you use an order, you can decide the maximum price you are willing to pay.
- Stop loss: with a stop loss, you automatically close the position at a certain loss.
- Take profit: with a take profit, you automatically close the position at a certain profit.
- Short: you can also open a short position and thereby speculate on a falling price.
- Leverage: some brokers allow you to actively speculate and use leverage. Both your potential gains and losses then increase.
When you are satisfied with your order, you can press the buy button. It may then take a few seconds to minutes before the order is actually executed.
Step 6: evaluate & sell
It is important to regularly evaluate whether you are still happy with your crypto investments. You can sell your crypto again at any time and transfer the money back to your bank account.
How to buy crypto securely from your bank?
- Beware: there are no guarantees! Don’t fall for crypto scams & invest only with reliable crypto exchanges.
- Risk: study the risks of cryptocurrencies. Cryptos are volatile and you can lose your entire deposit.
- Security: make sure you use a solid password and enable 2FA. This reduces the chances of a hacker stealing your funds.
- External wallet: you can choose to store your crypto in an external wallet. This prevents you from losing your crypto when the exchange goes bankrupt.
Buying bitcoins with a credit card
It is also possible to buy crypto with a credit card. One advantage of buying Bitcoin & other crypto with a credit card is the speed. You have instant access to the funds, which allows you to make the investment immediately.
A big disadvantage of buying Bitcoins with a credit card is the high transaction fees: they can quickly reach several percent of your investment.
It is therefore wiser to make a deposit with your bank account. By keeping enough money in your crypto exchange, you are flexible and can place an order at any time.
Can you buy crypto with any bank?
It is possible to buy crypto with almost any bank by using a crypto exchange. On this website, you will find comprehensive tutorials where I explain how to buy Bitcoin, Ethereum & other crypto with your favourite bank.
It is important to buy crypto from a reliable exchange. Banks can temporarily block your bank account if you use an untrustworthy party. Fortunately, the vast majority of banks won’t block bank accounts of crypto investors.
Conclusion: can you buy Bitcoin with your bank account?
You can buy Bitcoin & other crypto with your bank account! You can link your bank account to a reliable crypto exchange to start investing. At the top of the page, you can immediately see which crypto exchanges you can join. It is essential to always consider the risks of crypto investments: many private investors end up losing money.