How to Buy Bitcoin with a Bank Account / Wire Transfer

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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.

  • Bitcoin exchanges

  • Fees
  • Buying Limits
  • Available worldwide?
  • Reputation
  • Support
  • Overall grade
  • Coinbase

  • coinbase
  • 1.49%
  • Fully verified users only$50,000/day
  • click this link to see what countries are available33 countries supported
  • Good
  • Users have reported long waiting times for customer service responsePoor
  • A
  • Cex.io

  • cex
  • CEX.io's fees are incorporated into the exchange rateAverage
  • Fully verified users only$10,000/day
  • US, Europe, S.America
  • Good
  • Good
  • B+
  • Bitstamp

  • bitstamp
  • Does not include deposit fee0.25%
  • No limit
  • Worldwide
  • Good
  • Good
  • A
  • Kraken

  • kraken
  • Does not include deposit fee0.26%
  • No limit
  • Worldwide
  • Good
  • Good
  • B+
  • Coinfloor

  • coinfloor
  • Does not include deposit fee0.38%
  • Unclear
  • United kingdom
  • Average
  • Average
  • B
  • BTC-E

  • btce
  • Does not include deposit fee0.2%
  • No limit
  • Worldwide
  • Average
  • Low
  • C

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.

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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14 Comments on "How to Buy Bitcoin with a Bank Account / Wire Transfer"

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Anonymous
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Anonymous

Hie I have a problem…which steps to take if I want to buy bitcoins…??

Zsofia Elek
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Member
Zsofia Elek

Hi, this article details where to buy Bitcoins with bank account transfer. If you need specific steps how to buy Bitcoin, I suggest to read this article: https://99bitcoins.com/how-to-buy-bitcoin-with-a-credit-card/ – this has couple of reviews about exchanges and includes the steps to buy Bitcoins.

dean
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dean

Does bitcoin lock in the purchase price you make it at? Or does it lock in the price once the bank transfer goes through?
Thanks

Zsofia Elek
Admin
Member
Zsofia Elek

Hi Dean, generally speaking exchanges works in a way that you have to preload your account with funds, so the time you hit purchase Bitcoin button, your already have the money to pay for it instantaneously. I suggest to check the terms and conditions of exchanges you use if you are in doubt.

Tyler
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Tyler

is your account preloaded with bitcoin or USD? if the bank transfer takes 4-5 days, what if i buy BTC when it’s 4,200 but it drops to 3,500 before it transfers? I want to exchange the BTC for altcoins in $500 increments without worrying that $500 of BTC will drop in value before I even get it.

Zsofia Elek
Admin
Member
Zsofia Elek

Hi Tyler, first you need to deposit USD to your account which indeed can take days. Once you have USD on your account on the exchange, you can buy Bitcoins and the price will be the current price at the time of the purchase.

Tyler
Guest
Member
Tyler

ok thanks. so i need to set up a USD account on coinbase? otherwise it looks like USD would be transferred directly to bitcoin.

once transfer goes thru, buy bitcoin, take off the exchange and then buy whatever altcoins on an exchange that’s selling them? or any easier way you would recommend?

Zsofia Elek
Admin
Member
Zsofia Elek

Hi Tyler, once you open an account on an exchange, you will be able to deposit USD as well, the process you have described is correct. Alternatively, you can buy Bitcoin directly with credit card, you can find a list of exchanges who accept credit card here: https://99bitcoins.com/how-to-buy-bitcoin-with-a-credit-card/

John Bennett
Member
Member
John Bennett
I’ve been having problems signing up with a Bitcoin exchange, especially Coinbase. One problem is that I couldn’t get my ID verified. After a long night of taking numerous ID photos to upload, I tried it through their mobile app, which informed me that I’d exceeded the daily number of attempts, something their main website didn’t mention. Got the ID verified finally and tried to link a bank account. It’s kind of like with PayPal. They post a couple of transactions to your account, and you verify the amount of the transactions. The problem is that they will only let… Read more »
Zsofia Elek
Admin
Member
Zsofia Elek

Hi John, sorry to hear about your frustration at Coinbase, we haven’t experienced that so far. If you want you can check out other exchanges as well, here is an article for you: https://99bitcoins.com/best-bitcoin-exchanges-comparison-review/.

Rodrigo Paulo Gomes
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Member
Rodrigo Paulo Gomes

Great article !
I’m in Europe an like to trade on Coinbase because their UI is really outstanding.
But I also trade in Kraken because their prices are lower than Coinbase.
So Kraken to buy and Coinbase to sell ;)

I also love your 99bitcoin’s faucet!

Zsofia Elek
Admin
Member
Zsofia Elek

Thanks for the feedback Rodrigo! Indeed it is good if you are using multiple exchanges for Bitcoin trading.

Rodrigo Paulo Gomes
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Member
Rodrigo Paulo Gomes

Exactly Zsofia; it creates good arbitrage’s opportunities ?

Beside this… Are you having problem with the faucet?
I’ve tried with Mozilla Firefox, Google Chrome and Internet Explorer but, even after cleaning all the browser’s caches, the captcha is not showing anymore…
Thanks in advance for your help!

Zsofia Elek
Admin
Member
Zsofia Elek

There was an issue with tha captcha of the faucet yesterday, this is resolved by now.

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