How to pay for bitcoins and other cryptocurrencies from the bank account?
People who are interested in cryptocurrency investments usually face the question - what is the best way to convert fiat money to cryptocurrency? The best answer to this question depends not only on investors’ skills and preferences, but also on the form their assets are initially kept in. While investing in cryptocurrency for the first time, a wise man would hardly prefer more complicated methods, to easy and convenient options. Most would agree that it’s easier and more logical to buy bitcoins without any payment intermediaries, if the money you are going to invest is initially on your bank account. It is worth noting, that the exchange rate is more favourable if exchange process is deprived of unnecessary chains.
How can we buy bitcoins using bank account?
Let’s review the money investment process into cryptocurrency, that is initially kept in a bank. There are several methods (that are not equal in reliability and simplicity) of buying cryptocurrency for fiat money:
1. You can use bank transfer to deposit funds to your account that is created on one of the reliable cryptocurrency exchange platforms (after that you can buy bitcoins for funds on your exchange account).
2. You can buy bitcoins in currency exchanger, paying by your credit card linked to the account.
3. And the last, but not the safest method for a beginner - you can try to buy bitcoins from so called “swappers”: from private individuals, who do not have their own website for exchange operations.
Please note that only with exchange platforms you can easily buy wide range of cryptocurrencies using bank transfer; exchangers and swappers sell bitcoins for fiat money, but usually they do not sell other cryptocurrencies (or they sell at extremely high price). Last two methods do not prevail at the simplicity and reliability. Why is it so? An investor should be able to analyze reputation and references of an exchanger he is planning to trust his money in order not to lose them (an investor should also take into consideration that these references could be ”biased”). Beginning investor is not skilled enough for such type of analysis, so if he comes across the frauder, the chances to lose his money are pretty high.
Let’s also mention difficulties that arise while using wallets (where you should keep cryptocurrency if you’ve bought it in exchanger). The way bitcoin wallet works is very specific and often puzzles a newcomer. Even worse, some types of not very popular or not reputable online wallets are ill-famed and should not be trusted. Moreover, there are some other problems that may arise while using bitcoin wallet, for example, when bought bitcoins are not instantly deposited to your wallet or when online bitcoin wallets are not hack resistant.
At the same time, if you trust your assets to an exchange platform with long-term history and good reputation, you can easily and securely buy bitcoins for money from bank account . It could be transferred to the account of exchange’s trusted partner - the licenced organisation with proven reputation via bank transfer. In addition to this, while buying cryptocurrencies for funds from your account, these cryptocurrencies would be kept safe. By the way, the exchange platform which provides its users with the ability to deposit funds using bank transfer also enables them to withdraw in the same way.
Please keep in mind that not every exchange platform is able to offer depositing funds via bank transfer. In order to persuade qualified financial intermediaries to collaborate with the exchange platform, it should have good reputation in financial world and manage its business in strict compliance with the Law.
How to buy bitcoins via bank transfer to an exchange platform?
Here is how money transfer to an exchange platform using your bank card (or bank account) is performed. After you have chosen the currency to withdraw, cryptocurrency exchange redirects you to its Trusted Partner’s website, where you can get the document with its banking details. In order to deposit to your exchange account, you have to transfer your funds to the stated invoice details. The amount you are going to send should strictly coincide with the amount, stated in the document. It is EXTREMELY important to enter provided payment details in the comment section. The funds are being transferred according to this comment, you should know that each payment has a unique comment and you can not send more than one payment using the same details. You can choose the most suitable way of bank transfer to these details by yourself; it’s easier to do it using online banking. Before making the transfer you should clarify if your bank is capable of performing it to the account stated in payment document; you also can omit it, but if your bank is unable to perform your transfer, the amount will be transferred to your account again after the commission is deducted.
After the exchange partner gets your transfer to his bank account, he will perform the international wire transfer and you’ll see the transferred funds on your exchange account. He charges a part of sent money as a commission (the exact amount can be seen at the beginning of depositing process). It is also worth noting, that in this case the commission you have to pay for your money transfer is fixed, and it usually does not constitute some fixed portion of a transferred amount, so, the bigger your one time transfer amount is, the cheaper (if to count in the percentages) the transaction would be. And vice versa, the commission for relatively small amounts may exceed 10%. After these assets are deposited to your account you can buy bitcoins or any other cryptocurrency.
Let’s look at the depositing operations using bank transfer on a particular example. So, EXMO is an exchange platform with perfect three-year reputation and offers the possibility to deposit USD account using reliable Wire Transfer to all verified users. Minimum commission with such type of depositing is 20 USD and minimum withdrawal amount (taking into consideration commission expenses) is 100 USD. Let’s say, you would like to deposit EXMO account with 2000 USD using bank transfer. In this case you have to enter the amount equal to 2020 USD and press the “deposit the balance” button. The system will redirect you to the website of our partner “Mayzus Financial Service Ltd”, where you can download and print out (if you want) a payment document which contains details for bank transfer. Then you have to perform the transfer using these details with any method that is convenient for you (pay attention, that you have to deposit 2020 USD on “Mayzus Financial” account, in other words, you have to pay bank transaction fee). After you will perform this transaction, using online banking or any other convenient method you don’t have to do anything. The funds would be deposited on your account.
In order to deposit or withdraw go to “Wallet” section, press “Deposit” or “Withdraw” next to USD, then choose “Bank transfer”, after that, in order to deposit your funds you should perform the transaction of funds through your online-bank using provided details; to withdraw your funds - fill in the proper space and confirm the withdrawal. The average duration of the transaction is 3 working days.
So, now you know how to buy cryptocurrencies using Wire Transfer. Hope you would be able to invest in cryptocurrency using method that is most convenient to you! Let us remind that EXMO platform has recently introduced WebMoney payment system for EUR and USD
Thank you for staying with us!
Your respectfully, EXMO team