How to Buy Bitcoin with Bank Account – Beginner’s Guide

The crypto market has grown with huge momentum over the past couple of years. Currently sitting at a $1.5 trillion market cap, cryptos have proved one of the most profitable investments in recent decades.

If you don’t want to miss out on this high growth opportunity, and you want to want to buy Bitcoin with a bank account hassle-free, then read on for our full guide on how to do so. We will be covering the quick and easy steps to set up an eToro account, some of the best brokers to buy Bitcoin with, and the general reasons as to why buying Bitcoin with a bank account is a great option for all investors.

Cryptoassets are a highly volatile unregulated investment product.

Where to Buy Bitcoin with Bank Account

We have had a brief look at how to buy Bitcoin with eToro, however, there are a number of other brokers who offer crypto wallets too. Crypto wallets are very important as they allow investors to safely store all their crypto, as well as buy and sell it. With so many different brokers to choose from, it can be pretty daunting knowing where to start. To save you the time and hassle of research, we have selected our top three brokers and will review each in turn below. We will cover ease of use, fees, security, and much more for each.

1. eToro

Our first pick is eToro. It is a great broker to use for beginners as it has a super easy-to-use interface, and is available on IOS and Android, making it widely accessible. Wallets can be set up quickly and easily by visiting the website and following the onscreen instructions.

eToro gives users access to over 2000 financial assets, including over 50 cryptocurrencies. This is a great feature if users are considering building heavily diversified portfolios. eToro has proved itself very popular, amassing over 30 million users in 140 different countries. Another great point that makes eToro great for beginners is that it offers users the chance to trade with a virtual $100,000 account. This can be great for testing new trading strategies without taking on any risk. When users want to open a real account, there is a $10 minimum deposit, allowing investors to drip-feed small sums into their portfolios. However, if investors want to use the copy trader function, they must invest a larger sum of $200 minimum.

You may be wondering what copy trading is? Well, it is one of eToro’s top features that set it aside from the competition. Copy-trading allows users to copy the portfolio of other users directly into their accounts. These portfolios can be filtered for return, risk level, and diversification. In addition to copy trading, eToro has a social trading crypto feature. This allows investors to share posts on markets to the 30 million other eToro users. Popular posts often include useful insights from top investors, which can be great for keeping up with market movements and earnings calls.

eToro has pretty low fees too, which is a very important consideration investors should make before signing up to any broker. When trading stocks and ETFs, investors will be charged zero commission. When trading cryptos, there is only a 1% commission charge plus the market spread. The only other fees investors need to be aware of are the $5 withdrawal fee, and the $10 inactivity fee. This inactivity fee will be charged if users leave their account unattended for over 12 months.

eToro also ranks very highly in terms of its security protocols. For starters, it provides users with an unlosable private key, so there is no need to worry about losing access to your account when you switch devices. There are also multiple blockchain security measures built into the wallet, which add to the safety level. In the UK, eToro is FCA regulated too, meaning your funds are covered by the FSCS Scheme. Overall, eToro is a very secure broker.

If you want to set up an account with eToro, simply visit the website or smartphone app and enter some personal details. Once you have done this you can verify your account and add funds using a bank account. Then search for Bitcoin and fill out the order form to complete your transaction!

Cryptoassets are a highly volatile unregulated investment product.

2. Crypto.com

Crypto.com is our second pick for the best place to buy Bitcoin with a bank account. The platform was founded back in 2016 and has since grown to accommodate over 10 million users, highlighting its popularity. Like eToro, it is a great choice for beginner investors, as it has a very easy-to-use feel about it. Whilst this is good for beginners, there aren’t any tools for users to perform technical chart analysis, so it might not be a great option for more seasoned investors. That being said, it is available on IOS, Android, and desktop which is a great point to consider. There are also over 250 crypto assets to choose from, which means heavily diversified crypto accounts are easy to create.

In terms of security, Crypto.com is a solid choice. Similar to eToro, it has several state-of-the-art security measures built into the wallet. One such method is multifactor authentication, which requires users to authenticate every log in to their wallet. Whilst this might sound like a hassle, it is a great way to protect the wallet from fraudulent behavior. In the US, Crypto.com provides up to $250,000 insurance via the FDIC Scheme, meaning users can rest assured their funds will be safe.

A cool feature of Cryypto.com is that it gives users the option to get a physical Crypto.com card. This can be used at selected retailers and allows users to earn cash back on their purchases. Cashback will come in the form of crypto transferred directly into your Crypto.com account.

Regarding fees, Crypto.com is slightly more expensive than eToro. Fees are based on transaction size, so vary with each trade. However, users can expect to pay around 0.4% of monthly trade volumes of less than $25k. However, if users are trading higher volumes then this number falls drastically, favoring high volume day traders.

To set up an account, all users need to do is visit the website or smartphone app. From here, just follow the onscreen instructions and enter some basic personal information. You can then buy bitcoin instantly with a bank account.

Cryptoassets are a highly volatile unregulated investment product.

3. Binance

Our third best place to buy Bitcoin with a bank account is Binance. It offers users access to a whopping 500 crypto pairs, meaning there are a plethora of options to trade. Binance offers users the option to swap between advanced and simple modes. The simple layout is great for beginner users who want to hold assets over time. The advanced option allows users to perform technical analysis, which is a great option for crypto day traders who want to predict future price moves.

It is very easy to set up a Binance account by visiting the website and following the onscreen instructions. When users set up an account, they will be given a security key which they must note down if they ever want to switch devices. This is one of the many up to date blockchain security protocols than Binance offers. In addition to this, it also forces users to pass an identity verification puzzle each time users log in. This helps protects against hackers and other fraudulent activity.

Binance also offers a multitude of educational resources and videos. These are great for beginner investors who want to learn more about markets and other general crypto information. If you are a beginner investor then we would recommend taking a look through these before you deposit funds and purchase your crypto.

In terms of fees, Binance charges 0.5% commission on each side of a trade (buy and selling). When depositing funds with a credit card, users will incur a hefty 4.5% fee, so depositing your funds with a bank account may be a better option in this respect. Binance has also come under fire from regulatory authorities and is hence not available worldwide. To check if Binance is available in your region, visit the website.

Cryptoassets are a highly volatile unregulated investment product.

Why Buy Bitcoin with a Bank Account?

If you follow crypto or are interested in markets, the likelihood is you will have heard of Bitcoin. It is the biggest coin on the market with a whopping £600bn market cap. What’s more, currently priced at £31,000, Bitcoin has generated an astonishing 47,000% returns over the past 5 years. However, at current, the crypto market seems to be following a bearish trajectory. This is because most other coins tend to follow the price of Bitcoin, which is down 24% in the past 12 months. This price drop could mark an excellent opportunity to load up on some Bitcoin for your portfolio. One of the quickest and easiest ways to do this is to buy Bitcoin using a bank account.

Speed

The first reason why buying Bitcoin with a bank account is a good idea is that it offers a quick transaction speed meaning you can buy bitcoin instantly with bank account. Most payments made with a bank account will be processed within a few days at most, meaning you can buy Bitcoin and store it in your account very quickly.

Ease of use

Most people have a UK bank account already set up, which means that it is very easy for them to use this method of payment. Many other payments such as e-wallet payments require accounts to be set up, and bank accounts to be pre-linked to them. Connecting your bank account to your broker directly bypasses all this hassle!

Security

Most banks will have existing security measures in place in order to prevent fraudulent payments. For example, if an account is trying to send money to an illegitimate broker, it will often flag up and you won’t be able to buy Bitcoin at that broker. An example of this is the UK bank Nationwide, which banned bank account payments to Binance.

Fees

Wondering how to buy Bitcoin with Bank account instantly? Finally, it is often very cheap to add payments via a bank transfer to brokers. This avoids the payments which are taken from e-wallet services like PayPal and Skrill. In addition to this, some brokers charge hefty fees – for example, Binance charges 4.5% – to deposit funds using credit cards.

How to Buy Bitcoin with Bank Account on eToro – Tutorial

Now we have reached this stage in our article, you may have decided you want to purchase some Bitcoin with a bank account. We will now take you through a step-by-step guide on how to do just that with eToro.

Step 1: Create account

The first step is to visit the eToro website and create an account. Once at the website, simply fill in some basic personal information to create your account.

Step 2: Verify your account

In order to deposit funds, your account must be verified. In order to do this, you must provide eToro with two forms of official ID. These can be a driver’s license and a copy of a recent utility bill for example. Once you have given these documents, eToro aims to have your account verified within minutes.

Step 3: Deposit funds

Now you have a verified account you can deposit funds with your bank account. To do this click on the ‘deposit funds’ option and then select bank transfer as your preferred method. You will then need to enter your bank details in order to connect your bank to eToro.

Step 4: Buy Bitcoin

Now you have funded your account with the desired amount, you can purchase Bitcoin. This is easy to do by using the search bar at the top of the screen. Type in Bitcoin and click the ‘Trade’ button. Select the desired amount by filling out an order form and then execute the transaction. You will then have successfully added BTC to your bank account!

Cryptoassets are a highly volatile unregulated investment product.

How to Withdraw Bitcoin to Bank Account

Hopefully, after trading Bitcoin for some time, you will have generated some profitable returns for your portfolio. You may wish to reinvest these funds, or instead withdraw them to your bank, capitalising on your profits. Let’s take a look at how you can do that:

Log into your account

Visit the website and enter your username and password to log back into your eToro account.

Go to the ‘My Account’ section and withdraw funds

Now you are in your account, you can navigate to the ‘my account’ section. Once you are here, click on the Withdraw funds option and enter the amount you would like to withdraw from your account. You can choose where to withdraw the funds too, but if you have only linked one bank account then it will withdraw to that. Users who wish to deposit over $30 should be aware that a $5 fee will be incurred.

Can You Buy Bitcoin with Bank Account with No Verification?

You may be wondering if it is possible to buy Bitcoin with a bank account without verifying your account. In most cases, the answer to this will be no. Most brokers force users to verify their accounts using some form of official ID before they can deposit funds. Whilst this may seem like a hassle, it is actually a very good security measure, as it helps protect against fraudulent payments. Due to the crypto industry being a largely unregulated industry, this is a key way in which brokers can regulate payment.

All of the brokers covered in this article will ask users to verify accounts before they deposit funds using a bank account. If users aren’t asked to verify accounts, then the likelihood is that the broker they are using may not have great security measures. Security should be a top consideration when signing up to any crypto account.

Once users have verified their accounts once and linked their preferred payment method to their brokers, they won’t have to keep verifying it every time they want to deposit more crypto. When you do verify your account for the first time, it is a very quick and easy process, and most platforms will have your documents verified within the hour. eToro aims to have documents verified within minutes for example.

Conclusion

The crypto market has swelled in popularity over the past few years, and this trend is only set to continue in the future. At the current price dip, Bitcoin could be a great addition to any portfolio seeking high growth. However, investors should be aware that the crypto market is very volatile, so proper risk management should be used at all times.

There are many different brokers that investors can use to buy Bitcoin, however, we recommend using eToro. Firstly, with the crypto markets being largely unregulated, it offers the highest security protocols and is FCA regulated. In addition to this, users only pay 1% commission on crypto trades and zero commission on stock and ETF trades. It is also very easy to use, making it a great choice for beginner investors.

Cryptoassets are a highly volatile unregulated investment product.

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