The cryptocurrency, Bitcoin, becomes more and more popular each day. With more people looking into the currency, there are more ways to buy it popping up too. One of these methods is to purchase Bitcoin directly by using your bank account.
Here’s how to buy Bitcoin using your bank account:
- Create an account with a Bitcoin platform.
- Add your payment method.
- Select how much Bitcoin you want.
- Pay with your bank account.
- Receive Bitcoins into the platform’s wallet.
Overall, it’s pretty easy to buy Bitcoin using your bank account. You’ll first need to set everything up, so if you want to learn how, continue reading this article.
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1. Create an Account with a Bitcoin Platform
Before you buy Bitcoin, you should have access to a Bitcoin wallet and exchange. These sites allow you to buy Bitcoin and perform other operations with it.
The six most popular platforms for using bank accounts as payment methods include:
You’ll want to check out all the options and determine which one is the best for you.
Coinbase is the most popular option for bank account purchases in the United States and works everywhere except for Hawaii. The platform’s main focus is on Bitcoin trading, giving you plenty of benefits.
As soon as you have the platform of your choice, you’ll want to set up your account there. You’ll need to have some personal data available, including a government-issued photo ID, so make sure to have these items beforehand to speed up the process.
2. Add Your Payment Method
Now that you have an account with a Bitcoin exchange, you need to enter your payment settings. When you use the sites mentioned above, you should have the option to enter your bank account information.
Go into the Settings menu, then select Payment Method. You’ll need to know the routing numbers, the account numbers, as well as have proof that the bank account belongs to you. Once you’ve entered the information, you’ll need to wait a few days for the platform to process it.
You won’t be able to buy Bitcoin until that’s over with, so you can take this time to assess your finances and come up with a strategy.
3. Select How Much Bitcoin You Want
Once your payment method appears on the platform, you can use it to buy Bitcoin. You’ll want to navigate the Bitcoin Menu, which is likely at the top of the page.
From there, select the amount of Bitcoin you feel comfortable buying.
It’s worth noting that some platforms require you to make a set deposit before you can purchase Bitcoin. For example, CEX.IO has a minimum deposit amount of $300. You’ll also need to wait for this transfer to complete before you can move forward with your purchase.
Most crypto exchanges allow you to buy as much as you want at once. You’ll still want to make sure your bank is OK with sudden, large withdrawals, however.
4. Pay With Your Bank Account
Next, when paying for the Bitcoin, make sure to select the new payment method you added, which should be your bank account. The platform should automatically conduct the transfer from there.
It should be a swift process.
Often, you receive the Bitcoin within a day. However, the amount of time the transfer takes to complete depends on the platform. Make sure you check the timelines on the site you’re using if you have any questions.
5. Receive Bitcoins Into the Platform’s Wallet
Finally, the Bitcoins you purchased will appear in your Bitcoin wallet. From there, you can trade them, save them, or do whatever you want with the cryptocurrency.
You’ll want to have an investment strategy in mind beforehand.
Keep in mind that your bank account doesn’t store the Bitcoin for you, as Bitcoin can only go into a wallet. There are several different Bitcoin wallets to consider, although they fit into two main categories:
- Hardware wallet
- Software wallet
Your Bitcoin platform likely offers you a software wallet. However, you may want to move your purchase into a hardware wallet for added security.
This video covers what you need to know about Bitcoin wallets in just two minutes:
Your platform should also have tools that allow you to buy, sell, and trade your Bitcoin. You can expect trades to take up to an hour to complete.
Why Use a Bank Account Over a Credit Card
If you’re planning on buying large amounts of Bitcoin, your credit or debit card can limit the amount you’re allowed to buy. Plus, bank transfers come with fewer fees and reduced risks.
Bitcoins are untraceable. If you contact the card lender and tell them you paid for Bitcoins but never received them, the lender can’t check if that’s true or not. That means you won’t get your money back.
Using your bank account removes some of that risk. Remember only ever to trade your Bitcoin on trusted platforms to avoid issues like these.
Finally, some banks allow their customers to purchase Bitcoin through them directly, without going through a crypto exchange site.
Some of these banks include:
- Goldman Sachs
If you already have a bank account at one of these locations, you won’t need to go through a crypto exchange to buy Bitcoin.
Overall, there are plenty of reasons to use a bank account to buy Bitcoin. It’s often the most convenient option for many people. Luckily, it’s also reasonably simple to set up an account with your bank as the primary payment option.
If you want to learn more about Bitcoin, be sure to stick around my site! I have plenty of information here for you.
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I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.