There are many things to know before investing in cryptocurrencies but right before you actually make the purchase, you must have a clear understanding of how to actually go about buying the cryptocurrency of your choice. It may very well be that you wish to invest in the pioneering (and top cryptocurrency of the market), Bitcoin. Now we all know that a number of exchanges do sell Bitcoins using your credit card. However, in certain situations, you may want to directly use your bank account. In this article, we take a quick look at all the reasons why you might want to buy Bitcoin using your bank account and how you can do the same.
Why is buying Bitcoins preferable Using Your Bank Account?
If you choose to purchase Bitcoins using your credit card, the possibility of chargebacks remain, which is untenable for a peer-to-peer cryptocurrency like Bitcoin. Using your bank account to make the purchase, however cuts down on that risk and the crypto exchange you are buying from also tends to prefer this low-risk yet convenient option. As a result, transaction fees when one’s bank account is used to make the payments, are much lower versus when one’s credit card is used. Coinbase, which is a rather well known cryptocurrency exchange, for example, charges just about $14.9 for a transaction worth $1000, when a bank account is used. This transaction fee shoots up to $39.9 when you use a credit card. Naturally, it is no wonder that many customers prefer using their bank accounts to buy crypto holdings. It is also the only reliable way to go for if you choose to buy Bitcoins of a large quantity as the upper limit on buying with bank accounts is usually much higher than buying with credit cards.
How to Buy Bitcoins Using Your Bank Account?
Several top cryptocurrency exchanges and trading platforms such as Coinbase, Cex.io, BitPanda, Kraken and BitStamp can be used to purchase Bitcoins via payments directly from your bank account. Here we explain the method of doing so on Coinbase, since all other exchanges follow a similar, if not an identical pattern.
Buying Bitcoin With Your Bank Account Over Coinbase:
Coinbase is an extremely reputed crypto exchange that has been trusted by Bitcoin users ever since its inception in late 2012. They also serve as a direct brokerage service for Bitcoin users, as they do not act like a trading platform would, instead choosing to sell crypto coins directly to customers. Coinbase offers its services to customers in about 32 countries and allows for efficient wire transfer payments in both the Americas and the European countries. For customers in the United States, Coinbase supports ACH bank transfers and for those in the European countries, Coinbase supports the SEPA transfer. The transaction fee amounts to roughly around 1.5% of the total transaction amount, if payment is made via wire transfer.
The steps for purchasing Bitcoin from Coinbase using your bank account are as follows:
1. Going to the Coinbase website.
2. Access the “Settings” tab.
3. Go to “Linked Accounts” from the drop-down menu that appears.
4. Click on “Buy/Sell”.
5. Click on “Buy Bitcoins”
Now, you can always check out one of the other ways to buy Bitcoin, for example, how to buy Bitcoin with PayPal if you do not wish to purchase Bitcoins with either your bank account or credit card.