Many people are looking for ways to purchase Bitcoins with their bank account. The following post will list the 4 major players that have proven to be credible and reliable when it comes to buying Bitcoins.
Coin.MX – 0% on transaction fees
Probably the first choice for buying Bitcoins instantly by use of a bank account would be using Coin.MX. I have reviewed Coin.MX before and have been using there services for a while. There interface is easy to understand, the Bitcoins are delivered quickly and I haven’t encountered any issues with them yet.
The nice thing about their bank account transfer is that unlike depositing money through a credit card, using the bank account transfer has no fees. This is because there is no possibility of chargeback or fraud using a bank account transfer which lowers the risk to Coin.MX significantly.
When you sign up for Coin.MX you’ll need to go through a verification process which can take a few hours. Verification that are required include: Phone verification, ID verification and personal information verification. After you are verified you’re free to buy Bitcoins with your bank account.
Circle – The new kid on the block (0% fees, US only)
Circle is the newest startup to enter the Bitcoin buying / selling category. It provides a mobile app and a website that allow you to buy, transfer and receive Bitcoins in a pretty intuitive manner. Their interface is amazing and they currently don’t charge any deposit fees.
The only issue with Circle is that it’s currently available in the US only and works with the following banks:
Coinbase – The Bitcoin startup for buying Bitcoins (1% / $5 fee)
Coinbase is one of the hottest Bitcoin brokers out there, recently they have also opened up a Bitcoin exchange. I’ve reviewed Coinbase as well in comparison to their main competition, Circle. Unlinke Coin.MX, Coinbase supplies a variety of Bitcoin services other than selling you Bitcoins such as a Bitcoin wallet, a mobile app and merchant tools.
There is a $5 deposit fee whenever you deposit funds into the Coinbase exchange and a 1% transaction fee if you choose to buy Bitcoins through the Coinbase wallet. Here’s a short tutorial about how to buy Bitcoins through Coinbase.
Kraken – The oldest Bitcoin exchange ($15 minimum deposit fee)
Founded in 2011, San Francisco based Kraken is consistently rated the top Bitcoin exchange by independent news media and was the first Bitcoin exchange listed on Bloomberg terminals. Kraken is trusted by hundreds of thousands of traders, the Tokyo government and court-appointed trustee, and BaFin regulated Fidor Bank, with an exclusive partnership and full regulatory compliance.
Unlike Coinbase and Coin.MX where you can buy Bitcoins directly from the company, Kraken is strictly a Bitcoin exchange. This means that you will be trading with actual people, but you can still deposit your money through a normal bank account wire transfer.
Kraken is used for large volume trading, that is why there is a minimum $15 deposit fee which usually isn’t suitable for “smaller” customers. Also their user interface may be pretty confusing to someone who is new to trading and Bitcoin.
buying BTC with a bank account ? make sure the seller is reliable!
To conclude, one of the reasons it’s so important to only buy from reliable sellers when buying Bitcoins with a bank account transfer is because once you transfer the money, what is done is done. It is rare to see banks offer chargeback protection the way credit card companies do, so you need to make sure you’re sending the money to someone who will live up to their word.