How to Buy Bitcoin with Bank Account Instantly

if you take the time to consider the whole concept behind Bitcoins in the first place. If we consider all the options presented to us it becomes apparent that It is much safer to acquire Bitcoins using your bank account by sending fiat money into the seller’s bank account as to avoid the possibility of chargeback frauds of debit and credit cards. In this regard, there are a number of ways to go about buying Bitcoins with a bank transfer.

By - June 20, 2019

In the words of Gaston Bachelard, “The characteristic of scientific progress is our knowing that we did not know.” As time passes we find ourselves with more and more ways to buy Bitcoin available to us. The most common way with which people buy Bitcoins is with a bank account, which is rather interesting if you take the time to consider the whole concept behind Bitcoins in the first place. If we consider all the options presented to us it becomes apparent that It is much safer to acquire Bitcoins using your bank account by sending fiat money into the seller’s bank account as to avoid the possibility of chargeback frauds of debit and credit cards. In this regard, there are a number of ways to go about buying Bitcoins with a bank transfer.

Why Buy Bitcoin with a Bank Account and Not a Credit Card

It may happen that you want to purchase a large amount of Bitcoin or perhaps you have maxed out your credit card, then buying with your bank account is your best option. When compared to other methods of payment, the bank account payment method does not have as much risk and in turn, the fees for said transaction method is substantially lower. When you fund your account using a wire transfer the buying limits are much higher when compared to using credit or debit cards. In that regard, if for instance you were to buy a $1000 from Coinbase using a wire transfer your fee would be $14.9, whereas if you had bought the exact same amount using a credit card you would have had to $39.9 in fees meaning you save a lot of money when using a wire transfer. Wire transfers may be cheaper, however, they are less convenient to carry out and in turn, the funds will not reach you instantly. If the security or privacy of your bank account happens to be a major concern of yours then it is best to shy away from this method of payment.

Buy Bitcoin from Coinbase

Coinbase is a popular company in the Bitcoin ecosystem that has been operational since 2012. The company typically charges 1.49% fees for all bank purchases, and deliver cryptocurrency bought with ACH within the period of 5 days. It provides brokerage services across 32 countries with the support of up to 4 currencies including USD, EUR, GBP (via SEPA transfers that will take just about 3 days to reach into your account) and BTC. One last thing to take note about the company’s privacy is that in the US, whenever any purchases made are priced over $20,000, the financial authorities are informed about the transaction which would not be a problem if you plan on taking care of your taxes. Like with most marketplaces, it is a requirement for Coinbase’s users to provide a legitimate ID for the purpose of verification.

Buy Bitcoin from Cex.io

Located in the UK and operates since 2013, Cex. io is a worldwide platform, providing brokerages services and training services that are often cheaper but get rather complicated. They support SWIFT and SEPA bank transfers and charge a $10 processing fee. At first glance you may notice that CEX.io have no fees on purchases, nonetheless, they make their profit by charging users for a premium. They typically put up the price of Bitcoin to be more expensive than it is at that particular time and when users make a purchase they make a profit from the difference between the bid and their ask price. Cex.io supports 3 fiat currencies, that is EUR, USD, and RUB; and observes the maker and taker schedule.

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BTC trade volume

Buy from Bitfinex

Situated in Hong Kong, Bitfinex is the world’s largest cryptocurrency exchange in USD volume for BTC to be more specific. The company supports the transfer of fiat money namely USD, EUR, GBP and JPY worldwide, except:

  • The United States
  • Bosnia and Herzegovina
  • Democratic People’s Republic of Korea (North Korea)
  • Iraq
  • Iran
  • Ethiopia
  • Syria
  • Yemen
  • Vanuatu
  • Uganda

The company only provides trading services and no brokerage services, moreover, its interface is rather complex; posing a problem to some entry-level users. Another apparent issue is the company’s liability to hacks, as customers have lost $73 million+ collectively between the years of 2015 and 2018, not to mention its recent accusations of covering up an $850 million loss to Crypto Capital Corp in April 2019. Despite its setbacks, the company still has a lot of liquid capital and maintains very reasonable fees; following the maker & taker fee schedule.

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Trade equivalent in USD

Buy from BitStamp

BitStamp, founded in 2011, is one of and might, in fact, be the oldest cryptocurrency exchange offering trading services across the world. They have a number of fiat currency payment options; permitting EUR, Bitcoin, USD, Litecoin, Ethereum, Bitcoin cash transfers, and withdrawals. One minor flaw of the company is the huge amount of time it takes to verify users verified and is therefore not recommended for users who are in a hurry to buy Bitcoins. As for fees, it is very favorable for the residents of the European region as SEPA transfers are free of charge, however, the company charges 0.05% on all international bank transfers, and have trading fees that vary depending on the amount of cryptocurrency you have traded; as your fees lower the more you trade. A huge benefit available to all users is that BitStamp FDIC insures that retain a balance of USD, thereby protecting your funds in case of any hacking incidents. The company is not providing brokerage services and so users need to get well acquainted with trading platforms to be able to use the site.

Buy from Coinfloor

Coinfloor, based in London, is an exchange that has been around since 2013. This company is mainly geared toward supporting countries in the UK. This makes it the largest GBP market for Bitcoin with deposit fees that differ depending on the currency that was used to make the deposit. Fiat currencies that are permitted on this site are GBP, EUR, and USD.

How to Buy Bitcoin on CEX.io

If you have made a choice to buy Bitcoin on CEX.io, the first thing you will need to do is to create an account that you will later associate with your funds. Once you enter the site, click “REGISTER” and from there you will be directed to a page where you have to fill in and confirm your email.

Next, you will be directed to a page to confirm your phone number. Simply fill in your phone number and then select whether you would like to verify your number by text or by phone call.

Once you are done confirming your phone number, it is now necessary to confirm your identity. You navigate the page to Verification on the dropdown list in the top right corner under your username after which you are given many fields to fill out your personal information. At this point when identity verification has been approved, rest easy knowing the hard part is over and done with. Your account is now ready to be funded. You are given the choice to either buy cryptocurrency directly from your bank account or to deposit funds into your account. Once you opt to fund your account from a bank account, it is important that you take the time to read and understand the instructions and notices that will be provided. It is also important to note that there is a minimum amount of $1000 per transfer when using Cex.io for bank transfers. Click “PROCEED” and from there you should get a receipt accounting the details of your bank transfer and the Bitcoin should be added to your Cex.io account. From there, enter the URL Cex.io in order to start trading. Once on the site, choose the appropriate symbol for the Bitcoin you want to buy, select the right pair, then navigate down to the buy and sell section of the page. Enter the amount you enter willingly to buy; the price that you are able to pay for it and then click “Place Order” once you are done.  

Best way to Buy Bitcoin

If you are looking to get the best exchange rate possible the best way to achieve this is by using a wire transfer to purchase Bitcoins. It is extremely challenging for most beginners to buy one token for another and so direct transfers simplify the whole process. It is very important to take into consideration your current country of residence as not all exchanges offer their services worldwide and may only be specific to certain regions or countries. It may also happen that the exchange you are interested in may offer good rates, but may not support your fiat currency so one must take their time before making a decision. You must be really careful as with everything, there is a possibility that the exchange you decide upon may, in fact, be a scam in reality and so it is recommended to use reputable websites that have been around for an adequate amount of time. With all this put into consideration, Coinbase is recommended for entry-level users for its easy-to-use user interface, low fees, excellent buying limits, and well-established crypto community.

Lastly is Buying Bitcoin with Bank account legal?

well in the current era where digital currencies are still a big debate among legislators who have constantly had contradicting ideology about the whole situation m many might be skeptical however according to an article an Antitrust Agency in Brazil while carrying out its inspections on banks  attempted to impose sanctions on Banks involved with BTC trade practices, In the report the agency stated that it is not fair to restrict access to accounts of every crypto company until the examination of the compliance level and fraud prevention measures are made. The banks also have client privilege and obligated to work within the legal frames, therefore as of today, it’s completely legal to buy Bitcoin with the use of a Bank account.

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