Can I use my bank account to buy cryptocurrency at exchanges?

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Adriaan Admin

Administrator
Staff member
Jan 30, 2018
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www.bitcoinforbeginners.io
#1
If you wanna buy Bitcoin or other cryptocurrency, for most people the most straightforward way to do this is to use your credit card or use a bank account. The latter option depends on the availability of a cryptocurrency exchange that allows deposits in your country's fiat currency. If that is available to you, then you have the ability to fairly easily cash in and out of crypto.

However, you should be aware that many banks in many countries are (or in the near future) will be very hostile towards cryptocurrency transactions. It depends on the country and the regulatory jurisdictions, but many banks regard crypto as direct competition or they fear "regulatory uncertainty" or they CLAIM that they are "afraid of money laundering". Some banks explicitly prohibit cryptocurrency related transactions in their terms of service.

For this reason I highly recommend to preferably NOT use your regular bank account (that you use for receiving income and paying bills) to directly transact with exchanges or to buy/sell cryptocurrency otherwise. If this option is available to you, it would be better to open an extra account with another bank (than your current one) that is preferably deemed "crypto-friendly".

(In many cases there are also new innovative fintech companies that are not traditional banks but do offer bank account services; these are usually less restrictive when it comes to cryptocurrency.)

Use your second bank account to move fiat funds in and out of exchanges and as bridge between your regular bank account. Avoid using bitcoin/cryptocurrency related words/comments in description of a transaction (especially for transactions from or to your regular bank account).

Another reason for having a separate account for cryptocurrency related transactions is that because the crypto space is still so new and there are so many security vulnerabilities (exchange hacks and what not), this way you also prevent your regular bank account information being compromised in any process of dealing with crypto.