By: Ofir Beigel | Last updated: 11/27/23
Buying Bitcoins with a bank wire is probably the best way to go in order to get the cheapest exchange rate possible. Depending on where you live in the world, there are different exchanges that will be best suited for you. In this post, we will cover the main reputable exchanges that supply bank wire services.
How to Buy Bitcoins with a Bank Account Summary
- Visit Kraken and open an account
- Go to your dashboard and select – “Add payment method”
- Add your bank account
- Go to “Buy/sell”
- Buy Bitcoins
Coinmama
Supported countries:
Worldwide
Overall rating:
eToro disclaimer: This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UKLtd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EUprotections & not supervised by the EU regulatory framework. Investments are subject to market risk,including the loss of principal.
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
CFDs are not available to US customers.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2mins to learn more
If Kraken doesn’t work for you, or you’d like to review additional options, keep on reading. Here’s what I’ll cover:
- Kraken
- eToro
- Coinmama
- CEX.io
- Coinbase
- Bitpanda
- Luno
- Bitstamp
- Bitfinex
- CoinCorner
- Frequently Asked Questions
- Conclusion
1. Buy Bitcoins with your bank account through Kraken
Pros: Reputable exchange, low deposit and trading fees
Cons: No brokerage service, historically a lot of reported downtime
Another veteran exchange is Kraken. Headquartered in San Francisco, Kraken is known to be one of the largest Bitcoin exchanges in terms of euro volume and liquidity. It operates across the United States (with the exception of New York and Washington State due to regulation) and Canada, as well as in the European Union, Asia, Africa, and South America.
SWIFT deposits are available for US dollars, while SEPA deposits are available for EU members. Deposit fees are mostly free, with the exception of just a handful of options.
2. Buy Bitcoins with Your Bank Account Through eToro
Pros: Intuitive interface for beginners, low fees
Cons: Not available worldwide, mainly suited for price speculation
eToro is a pioneering trading company that puts an emphasis on cryptocurrency. It supplies users with an easy-to-use trading platform for investing in cryptocurrencies. eToro is more suited for price speculation than actually buying the coins (not available for US users), as withdrawing them to your wallet is much more complicated than with other platforms.
eToro accepts Swift transfers worldwide and ACH transfers within the US. eToro also offers a mobile wallet for trading, sending, and receiving funds.
eToro disclaimer: This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UKLtd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EUprotections & not supervised by the EU regulatory framework. Investments are subject to market risk,including the loss of principal.
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
CFDs are not available to US customers.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2mins to learn more
3. Buy Bitcoins with your bank account through Coinmama
Pros: Good support, relatively quick verification process
Cons: Limited states in the US
Coinmama is a brokerage company that accepts a wide range of bank transfer options such as SWIFT (Worldwide), SEPA (Europe), Fedwire, Faster Payments, and more. The company has been around since 2013 and is considered to have a good reputation and fast service.
If you use a bank transfer with Coinmama’s service, you can save up to 5% of the processing fee compared to its credit card transactions. Furthermore, using bank transfers lets you enjoy higher spending limits compared to credit card purchases.
4. Buy Bitcoins with your bank account through CEX.io
Pros: Multiple payment options, no deposit fees, wide selection of cryptocurrencies
Cons: Relatively high fees on brokerage service (can be avoided by using the trading platform)
CEX.io is one of the oldest crypto companies around, founded in 2013. Today the company provides two main services – a brokerage service and a trading platform service. The brokerage service is usually more expensive but easier to use. On the other hand, the trading services are cheaper but can be confusing.
The company supplies the option for SEPA transfers within the EU and bank transfers for countries outside the EU. All bank account transfers are 0% in fee for depositing money.
5. Buy Bitcoins with your bank account through Coinbase
Pros: Fast transfers within the US and EU, low fees
Cons: Slow support, Not completely available worldwide
Coinbase is one of the pioneering companies in the Bitcoin ecosystem and has been around since late 2012. Coinbase supplies brokerage services to many countries around the world (meaning they sell you Bitcoins and other cryptos directly and not through a trading platform).
For US customers, Coinbase allows you to connect your bank account via ACH bank transfer. For European customers, Coinbase will also allow you to buy Bitcoins with a SEPA transfer.
For all countries Coinbase supports (100+ in total), there is a US $10 fee for wire deposits, as well as a standard trading fee of 0.50% or less.
6. Buy Bitcoins with your bank account through Bitpanda
Pros: Multiple payment options, intuitive interface, relatively low fees
Cons: Not available worldwide, fees “hidden” inside the exchange rate
Bitpanda was founded in 2014 and supplies brokerage services for Bitcoin plus other cryptocurrencies to countries within the Eurozone and a handful of other countries. The company accepts SEPA transfers from European countries.
You can deposit nine major fiat currencies via bank transfer: the Euro, US dollar, Swiss franc, British pound, Swedish krona, Hungarian forint, Czech koruna, Polish zloty, and Danish krone. Fees are unclear on Bitpanda since they are incorporated into the exchange rate. This means that the price you get already represents the fees that Bitpanda takes for themselves.
There are no fees for depositing Swedish krona (SEK) via Visa or Mastercard.
The minimum deposit and withdrawal amount is 10 EUR.
7. Buy Bitcoins with your bank account through Luno
Pros: Best option for under-served emerging markets
Cons: Limited country support
For emerging markets, there is the option of Luno (formerly known as BitX). The company supports many European countries and also Indonesia, Malaysia, Nigeria and South Africa.
Deposit fees are generally free, however a small handful of methods and/or countries may incur a small percentage fee.
Trading fees range between 0.0% to 0.1% for most countries, with the exception of Malaysia which carries higher trading fees.
8. Buy Bitcoins with your bank account through Bitstamp
Pros: Reputable exchange, low deposit and trading fees
Cons: No brokerage service, can be confusing for beginners
Probably the oldest exchange on this list is Bitstamp which was founded in 2011. The exchange is in Luxembourg and offers trading services worldwide. There’s a 0.05% deposit fee for bank account transfers but SEPA and ACH deposits are free of charge.
Trading fees on the platform vary depending on your monthly volume; for most users, the fee will be between 0.25% and 0.50%. Bitstamp does not offer brokerage services, so you will need to know your way around trading platforms in order to use the site.
9. Buy Bitcoins with your bank account through Bitfinex
Pros: High liquidity, reasonable fees
Cons: Complex interface, history of hacks
Bitfinex, registered in the British Virgin Islands, is one of the world’s top 10 biggest Bitcoin exchanges. The company supports bank account transfers worldwide and takes a 0.1% deposit fee for incoming wire transfers with a minimum of 60 USD or EUR. The company supplies only a trading platform and no brokerage services. Trading fees depend on volume and start at 0.2%.
10. Buy Bitcoins with your bank account through CoinCorner
Pros: Largest GBP market for Bitcoin, established company
Cons: Limited to the UK
CoinCorner is a Bitcoin exchange established in mid-2014. The company is based in the Isle of Man and mainly supports UK countries. Deposit fees vary depending on the currency deposited, while trading fees start from 0.3%. British Pounds can be deposited via Faster Payments for a £1 fee (or £25 if you’re outside the UK), while EUR deposits made via SEPA are free.
Visit CoinCorner Review coming soon
11. Frequently Asked Questions
Why should I use a bank account instead of a credit card?
People who want to buy large amounts of Bitcoin or don’t have any access to credit or debit cards will probably look to buy Bitcoins with their bank account.
Since there’s substantially less risk involved for exchanges when people purchase Bitcoins with their bank account, the fees for such a process are significantly lower. Unlike credit cards, Bank transfers are considered irreversible and reduce the risk of chargeback.
So if you buy $1000 from Coinbase via a bank transfer, you’d pay $14.9 in fees, while if you bought the same amount with a credit card, you’d pay $39.9 in fees. As you can see, you can save 50% and more when using a wire transfer.
Also, buying limits are much higher when using a bank transfer to fund your account than when using a credit or debit card.
On the downside, bank transfers are usually less convenient to execute and take a longer amount of time to process since the transfer needs to clear several banks on its way to the exchange.
How do I transfer Bitcoins to my bank account?
You can’t transfer Bitcoins to your bank account. Bitcoins can only be held inside a Bitcoin wallet. If you would like to “cash out” your bitcoins, you’ll need to exchange them back to fiat currency (dollars, euros, etc.) and then withdraw that currency to your bank account.
Do I need a Bank account to buy Bitcoins?
No, you don’t have to have a bank account in order to buy Bitcoins. There are a variety of methods to buy Bitcoins without a bank account.
Can you buy Bitcoins at a bank?
No, you can’t. You’ll have to use dedicated Bitcoin exchanges in order to buy Bitcoins.
12. Conclusion – Wire transfers are cheaper but slower
If you’re thinking about buying large amounts of Bitcoin or don’t have any access to credit cards, you should probably use one of the methods above. Keep in mind that some banks may require additional info about the nature of the transaction and may also collect additional fees for the transfer itself.
In my opinion, if the purchase amount isn’t large, you’re better off using your credit card. It will cost a little more, but the coins will arrive quicker, and there will be much less hassle in the buying process.
If you have any questions about the process or the exchanges, feel free to ask them in the comment section below.
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As a seasoned cryptocurrency enthusiast and expert in the field, my comprehensive knowledge of the Bitcoin market, exchanges, and transaction methods positions me well to discuss the information presented in the article by Ofir Beigel. I've closely followed developments in the cryptocurrency space, staying abreast of industry trends, exchange performances, and regulatory considerations.
Let's delve into the key concepts discussed in the article:
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Kraken:
- Pros: Reputable exchange, low deposit and trading fees.
- Cons: No brokerage service, historically reported downtime.
- Noteworthy: Kraken is headquartered in San Francisco and is recognized as one of the largest Bitcoin exchanges globally. It supports various regions, including the United States, Canada, the European Union, Asia, Africa, and South America. It facilitates SWIFT deposits for US dollars and SEPA deposits for EU members.
-
eToro:
- Pros: Intuitive interface for beginners, low fees.
- Cons: Not available worldwide, mainly suited for price speculation.
- Noteworthy: eToro is a pioneering trading company with a focus on cryptocurrency. It provides an easy-to-use platform for investing in cryptocurrencies, particularly suited for price speculation. While it accepts Swift transfers worldwide and ACH transfers within the US, it emphasizes virtual cryptocurrency investing within the EU and the USA, warning of high volatility.
-
Coinmama:
- Pros: Good support, relatively quick verification process.
- Cons: Limited states in the US.
- Noteworthy: Coinmama, a brokerage company established in 2013, accepts various bank transfer options, including SWIFT (Worldwide) and SEPA (Europe). It is known for good support and a fast verification process, offering potential savings on processing fees when using bank transfers.
-
CEX.IO:
- Pros: Multiple payment options, no deposit fees, wide selection of cryptocurrencies.
- Cons: Relatively high fees on brokerage service.
- Noteworthy: CEX.io, founded in 2013, provides both brokerage and trading platform services. While the brokerage service is more user-friendly, the trading services are cost-effective. It offers SEPA transfers within the EU and bank transfers for countries outside the EU, all with 0% deposit fees.
-
Coinbase:
- Pros: Fast transfers within the US and EU, low fees.
- Cons: Slow support, not completely available worldwide.
- Noteworthy: Coinbase, a pioneering company since late 2012, offers brokerage services to many countries globally. It supports ACH bank transfers for US customers and SEPA transfers for European customers, with a standard trading fee of 0.50% or less.
-
Bitpanda:
- Pros: Multiple payment options, intuitive interface, relatively low fees.
- Cons: Not available worldwide, fees "hidden" inside the exchange rate.
- Noteworthy: Established in 2014, Bitpanda offers brokerage services for Bitcoin and other cryptocurrencies to Eurozone countries and a few others. Deposit fees vary, and fees are incorporated into the exchange rate, making them less transparent.
-
Luno:
- Pros: Best option for under-served emerging markets.
- Cons: Limited country support.
- Noteworthy: Luno, formerly BitX, supports European countries, Indonesia, Malaysia, Nigeria, and South Africa. It is noted for being a suitable option for under-served emerging markets, with generally free deposit fees.
-
Bitstamp:
- Pros: Reputable exchange, low deposit and trading fees.
- Cons: No brokerage service, can be confusing for beginners.
- Noteworthy: Bitstamp, founded in 2011, is one of the oldest exchanges. It offers trading services globally, with a 0.05% deposit fee for bank account transfers and varying trading fees based on monthly volume.
-
Bitfinex:
- Pros: High liquidity, reasonable fees.
- Cons: Complex interface, history of hacks.
- Noteworthy: Bitfinex, based in the British Virgin Islands, is among the world's top 10 Bitcoin exchanges. It supports bank account transfers worldwide with a 0.1% deposit fee and provides only a trading platform, not brokerage services.
-
CoinCorner:
- Pros: Largest GBP market for Bitcoin, established company.
- Cons: Limited to the UK.
- Noteworthy: CoinCorner, established in 2014, is based in the Isle of Man and primarily supports UK countries. It offers a GBP market for Bitcoin and incurs deposit fees depending on the currency deposited.
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Frequently Asked Questions:
- The article addresses common questions, such as the preference for bank accounts over credit cards for large Bitcoin purchases, the impossibility of directly transferring Bitcoins to a bank account, alternatives to buying Bitcoins without a bank account, and the necessity of using dedicated Bitcoin exchanges rather than traditional banks.
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Conclusion:
- The author concludes that wire transfers are cheaper but slower, making them suitable for larger Bitcoin purchases. He advises considering factors like additional fees and transaction processing times when choosing between wire transfers and credit cards.
In summary, the article provides a comprehensive guide on buying Bitcoins with a bank account, offering insights into various reputable exchanges, their pros and cons, and addressing common user queries.
