People who want to buy large amounts of bitcoin or don’t have any access to credit or debit cards will probably look for buying 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. Bank transfers are considered irreversible and reduce the risk of chargeback, unlike credit cards payments for example. So if you’d buy $1000 from Coinbase via their 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, Bitcoin buying limits when using a bank transfer to fund your account are much higher than using a credit or debit card.
On the other hand, bank transfers are usually more complex 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. Nevertheless, buying Bitcoins with a bank wire is probably the best way to go in order to get the best 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.
- Fully verified users only$50,000/day
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- Users have reported long waiting times for customer service responsePoor
Buying Bitcoins with a bank account in the US
Probably the best option for buying Bitcoins in the US with your bank account is Coinbase. Coinbase is one of the pioneering companies in the Bitcoin ecosystem and has been around since late 2012. Coinbase allows you to connect your bank account via ACH bank transfer and can be connected with 26 different banks.
Once you supply your bank credentials on Coinbase’s website you can easily buy Bitcoins through your bank account. The fee for buying Bitcoins with your bank account is %1.49. The good thing about Coinbase is that the site has very high liquidity and won’t “run out of Bitcoins”. It’s also pretty intuitive for beginners.
On the other hand Coinbase bank transfers are slower than credit card purchases and can take up to 5 days. Also Coinbase has been known to monitor their user funds and may take action against your account if they deem that you are using it for illegal purchases.
Some other options for buying Bitcoins with a bank account in the US include CEX.IO (offers ACH transfers), Bitstamp, Kraken, Bitfinex and Bitpanda. For a complete exchange comparison visit this page.
Buying Bitcoins with a bank account in Europe
If you’re inside the Eurozone Coinbase will also allow you to buy Bitcoins with a SEPA transfer. Fees are basically the same as buying within the US. If you’re in Europe you would probably also want to check out Kraken or Bitstamp – both large and reputable Bitcoin exchanges. Both exchanges offer high liquidity and SEPA transfers. Fees will probably be lowest via one of these two exchanges if you’re buying large amounts of Bitcoin.
UK residents can also consider Coinfloor and fund their account via SEPA or online bank transfer. However there is a minimum deposit amount of 1,000 pounds.
Cex.io is another exchange that offers SEPA transfers and high liquidity. Unlike the previous exchanges it also allows you to buy Bitcoins with your credit card and not only your bank account.
Buying Bitcoins with a bank account in other countries worldwide
If you don’t live in the US or the EU there are some international Bitcoin exchanges that will allow you to buy Bitcoins with your bank account mainly via SWIFT (i.e. wire transfer).
The most reputable are Bitstamp and Kraken. BTC-e is another exchange that will accept customers worldwide however its reputation is questionable so I’d advise caution if using it. CEX.io offers its services to most countries worldwide. Bifinex may also be a good option however it’s a bit harder to navigate through if you’re a newbie.
To conclude, if you’re thinking about buying large amounts of Bitcoin or don’t have any access to credit cards you should probably use 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.
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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