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Using bank account to purchase anything is getting less popular nowadays, especially when it comes to buying things online. Most people prefer to use their credit cards or debit cards for that purpose. However, when it comes to buying large amounts of bitcoin using your bank account might be your best option.
One of the main reasons is because the transaction fees would be significantly lower when you use bank transfer instead of credit card. That’s because bank transfer transactions are considered irreversible, thus reducing the risk of chargeback.
For example, if you go to Coinbase to purchase $1000 worth of bitcoin, you will have to pay $39.9 fees. However, if you purchase the same amount of bitcoin using bank transfer, you only have to pay $14.9 fees.
Another great advantage is that you will have significantly higher buying limits when you fund your account with a bank transfer.
But there is also a downside when using your bank account to purchase bitcoins. You have to be extra patient because on its way to the exchange marketplace your transfer will need to clear several times before finally reaches its destination. So it will take more time to process than credit card.
Find A Reputable Bitcoin Exchange That Provides Bank Wire Services
Not all exchanges provide bank transfer option in their transaction, but fortunately today we can find more and more reputable exchanges that do provide this option. Below are some of the most reputable exchanges that you can choose if you’re interested in buying large amounts of bitcoins using bank transfer.
Coinmama
Coinmama is a reputable company that has fast service and has been around for more than 7 years. Besides credit card, this company today also accepts payments with SEPA (Europe) and SWIFT (worldwide).
With bank transfer transactions, Coinmama offers higher spending limits as compared to credit cards, and you can also enjoy less processing fee.
Overall, Coinmama provides you with good support and a really quick process. But unfortunately even though it operates in 188 countries worldwide, it’s only available in 24 States in the USA.
CEX.io
Just like Coinmama, this company is also founded in 2013, operating with two main services; a trading platform service and a brokerage service. For new players, their trading services might be tempting because they are cheaper, but for users with lack of experience it can be confusing. While the brokerage service on the other hand, is easier to use but it’s a bit more expensive.
For buyers outside of EU the company provides bank transfer services, but if you’re in the EU you can opt for SEPA transfers.
Overall, CEX.io provides huge selection of cryptocurrencies, there is no deposit fees, and they have various payment options.
On the downside, the brokerage service, which is easier to use might be pretty expensive if you don’t want to use the trading platform.
Coinbase
Founded in 2012, Coinbase is one of the oldest companies in Bitcoin trading. They are selling cryptocurrencies directly to buyers without a trading platform, and their brokerage services are available in more than 100 countries worldwide.
Buyers in the US can connect their bank account through ACH bank transfer, while for European buyers, they can use the SEPA transfer system. Coinbase charges 1.49% fee for wire transfer purchases.
Overall, this company offers low fees and easy bank transfers in the US and EU. While on the downside, their services haven’t been available in all countries and there is also some reports saying that their support is a bit slow.
Bitpanda
Since 2014, Bitpanda runs brokerage services for various cryptocurrencies in many countries that mostly within the Eurozone. To make it easy for their European customers in making purchases, they accept SEPA transfers.
This company incorporates fees into the exchange rate, that’s why it’s actually a bit unclear for buyers how much exactly they charge. Deposits through bank transfers can only be made with GBP, Euro, and Swiss Franc.
Even though it’s a bit unclear, the fees they charge is actually quite low. Bitpanda is also known for its intuitive interface with various payment options to make it easy for any buyer. On the downside, besides the unclear fees, their services are also not available worldwide.
Luno
Formerly known as BitX, Luno is really popular amongst buyers from the emerging markets of cryptocurrencies including South Africa, Nigeria, Malaysia and Indonesia in addition to many European countries. They charge anywhere between 0% to 5% on deposit fees, depending on the country. While in trading, the fee also varies on each country in the range of 0.2% to 1%.
Luno is probably the best option for buyers in the emerging markets of cryptocurrencies, but the number of countries they serve are still very limited.
Bitstamp
Founded in 2011, Bitstamp is also one of the oldest and most reputable exchange companies. They operate out of Luxembourg and make their services available worldwide. They offer SEPA transfers fee of charge, while for bank account transfers they charge a small deposit fee of 0.05%. Then there are also trading fees calculated based on your monthly volume, but averagely their customers pay between 0.25% to 0.50%.
Bitstamp is a very reputable company that offers low fees on deposit and trading. However, it may not be the best option for beginners because they don’t offer brokerage service. So for those who don’t really know their way around trading platforms it can be quite confusing.
Kraken
Kraken is also a veteran in the Bitcoin ecosystem. Operating out of San Fransisco, USA, Kraken serve buyers throughout the United States (except Washington and New York), Canada, EU, South America, as well as Asia and Africa.
Kraken provides SWIFT deposits for US customers who use US dollars, while for their EU customers they can opt for SEPA deposits. Even though deposit fees can vary, but mostly it’s never higher than $5.
Overall, Kraken is a reputable exchange that offers low trading and deposit fees. However, unfortunately just like Bitstamp, it also doesn’t offer brokerage service, so it might be difficult for inexperienced users.