Buy Bitcoin with Bank Account or Bank Transfer

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Bank transfers are the safest way to buy Bitcoin from exchanges. They offer safety and save you expenses over other methods like credit cards and payment processors.

Best Overall Exchange
Coinbase logo

Coinbase is our recommended option for those who want to buy cryptocurrency in the United States. Coinbase has been around for several years and consistently ranks as one of the best and safest exchanges to buy Bitcoin.

Are you wondering how to buy Bitcoin with bank accounts and transfers? Buying crypto is much easier than it used to be just a few years ago. 

With the development of centralized exchanges and the mass adoption that crypto has seen over the last five years, Bitcoin and other cryptocurrencies returned good yields for holders

Still, the best part of centralized exchanges developing over time is how easy they make when buying crypto with bank transfers. Buying Bitcoin with a bank transfer works similar to sending money to someone else with a check or direct deposit.

However, the funds end up in your crypto exchange account instead. Crypto exchanges work like a crypto bank, especially when fiat money is involved. 

Let’s take a look at what the exact steps for this process look like and what the benefits of buying Bitcoin with a bank transfer are.

Summary of Best Crypto Exchanges to Buy Using a Bank

Coinbase logo

Best Overall

0% - 0.50%
trading fees
Account Minimum
Earn $5 in Bitcoin when you signup and deposit money into your account

Best Social Platform

trading fees
Account Minimum
Earn $10 when you signup and deposit money into your account

Largest Exchange

trading fees
Account Minimum
Earn $5 when you signup and deposit money into your account

Best Security

0.5% - 3.99%
trading fees
Account Minimum
Get $20 of free BTC after trading $100 or more within 30 days

5 Steps for Buying Bitcoin With a Bank Account

For most folks, it’s easiest to buy Bitcoin with bank accounts as this maintains safety and is relatively simple. To get started with buying Bitcoin, follow these steps: 

Step #1: Find an Exchange That Allows Bank Transfers

There are two kinds of cryptocurrency exchanges out there: centralized and decentralized. The big difference between these two exchanges is if a company or an autonomous group runs the service. 

Centralized exchanges like Coinbase, eToro, or Kraken work like crypto banks, and all offer bank transfers to fund your account. Connecting bank accounts to a decentralized exchange still isn’t quite possible and poses a lot of security issues, too. 

Step #2: Make Sure Your Bank Allows Crypto Purchases

Once you find an exchange that allows bank transfers, you’ll want to ensure your bank allows the connection. While many banks don’t bar their customers from buying crypto, that can change depending on the bank and the country you reside in. 

Before making that cryptocurrency exchange account, ensure that you can buy Bitcoin with your bank, first.

Step #3: Complete Account Verification

Many centralized exchanges require personal information from their customers under Know Your Customer (KYC) laws.  These laws help law enforcement track criminal organizations trying to operate via crypto like Bitcoin by giving the exchange a way to identify law-abiding customers. 

For the most part, KYC laws require information like your name, home address, and other contact info. This is an automated process for many exchanges, so you shouldn’t have to wait long to get verified on the exchange of your choice.

Step #4: Fund Your Account With USD or Crypto

Once your account gets verified, you’re ready to fund it. From the crypto exchange’s website or app, go to your account and look for a funding option. 

Once you find it, you’ll want to make sure you choose your connected bank account over the other options. If you have a crypto wallet associated with your bank, you might be able to make transfers from that, too. It’s rare, but not unheard of.

Step #5: Start Buying Bitcoin

With funds in your exchange account, you’re ready to buy some Bitcoin!  Head over to the market tab for your exchange and find the Bitcoin and U.S. dollar pairing (usually listed as BTC/USD).

Enter the amount of Bitcoin you want to buy, confirm the details, and wait for the trade to finish. 

Risks of Using a Bank Account to Buy Crypto

Like everything in finance, buying crypto with a bank account has its risks: 

  • Security breaches and info leaks can happen
  • Data leaks lead to scammers targeting you

Exchanges save their customer’s data on secure servers. While these servers are generally safe, they make an attractive prize for hackers and criminals. 

If customer data leaks, suddenly the criminals have access to personal data, bank account info, transaction history, and web addresses of the customers. 

With this info, criminals can sell that data to other scammers who then try various scams on potential victims.  One of the most common scams is dusting attacks, where scammers deposit free crypto into an address to gain access to it.

There are also phishing scams where scammers take login information from the victim.  Server breaches are rare, but when they happen, they can have devastating results. 

Fees From Exchanges

Exchanges charge fees as part of their transactions to keep the servers running and the lights on. Without these fees, most exchanges wouldn’t have the revenue to keep the exchange up. 

Generally, most exchanges make their money on trading fees. You’ve probably seen that a small portion of your trades on an exchange gets taken as a fee for the trade.

The exchange charges that fee on every trade on the platform as revenue for the business.  Many exchanges also charge fees for handling deposits from banks and credit cards

Because these funding methods exist off the blockchain, the exchange has to handle the funds and convert them to the appropriate amount of crypto when the funds get used by the customer.

Using a Bank Transfer

When you use a bank transfer to buy Bitcoin, it’s similar to writing a check to another bank. The exchange has to receive the funds from the bank, process those funds, and assign them to your account before you can buy Bitcoin from them. 

Overall, the benefits of using a bank transfer to buy Bitcoin are: 

  • Better security over credit card payments
  • Higher daily deposit and withdrawal limits
  • Lower exchange fees

Banks tend to monitor individual customer accounts more closely than credit card companies do with cardholders. So, if a scammer tries to draw money out of your account, the bank has a better chance of catching it than a credit card company.

Plus, most exchanges tend to have a higher deposit and withdraw limit for bank accounts than credit cards. This difference could let someone invest in the asset faster. 

Finally, credit cards are more expensive to process for exchanges. To compensate for that, most exchanges charge a higher fee on credit card transactions than bank account transfers.

Should You Use a Bank Transfer to Buy Crypto?

Ultimately, a bank account transfer is the safest way to deposit funds into your crypto exchange account. Because centralized crypto exchanges work like crypto banks, bank transfers are safer, cheaper, and more reliable than paying with a credit card. 

If you want to buy Bitcoin with a bank account, follow the steps and info laid out here. Bitcoin has been one of the best assets by ROI, so even a smaller investment could yield great results in five to ten years.

Bitcoin Credit Card FAQ's

With credit cards being another way to buy Bitcoin, here are some common questions out there about that process.

How long does it take to buy Bitcoin with a bank account?

The biggest stopgap in buying Bitcoin with a bank account is time. Banks usually need three to five days to process a transfer to an exchange, meaning your funds might not clear for a while. 

If you have funds transferred from your bank in your exchange account, it will only take a few moments to buy Bitcoin.

Can I buy Bitcoin with a credit card anonymously?

While some services let you buy Bitcoin anonymously with a credit card, most deposit into an exchange with KYC laws, so the deposited funds will appear in an account associated with you.

What banks allow you to buy Bitcoin?

Even in countries where Bitcoin is legal, it can be a toss-up which banks allow Bitcoin purchases. Big banks like Bank of America, Chase, and Wells Fargo block crypto purchases, while smaller credit unions and online banks allow the purchases.

Are there minimums when buying Bitcoin with a bank account?

Exchanges can set a minimum amount when you buy crypto with a bank account because of the administrative costs of handling the transaction. 

The exact amount of this minimum depends on the exchange, so you’ll have to search through your exchange’s FAQs to find what their rules are.


Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency.