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5 Tips for Buying Cryptocurrency with Your Bank Account

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 5 Tips to Buy Cryptocurrency with Your Bank Account.

You’ve decided to start investing in cryptocurrency and want to do it with your bank account, but you’re not sure how to go about buying your first digital currency. As you probably know, there are two primary methods of getting your hands on cryptocurrency: you can purchase coins from an exchange using your debit or credit card or you can use your bank account and get paid in crypto. While both have their pros and cons, the latter option has the potential to be faster and cheaper


With the price of many cryptocurrencies rising as fast as they are, you may be tempted to make a quick buck by trading on the market. But if you’re just getting started with cryptocurrencies and don’t know much about them, you may have some concerns about buying cryptocurrency with your bank account. Here are five tips to help you buy your first cryptocurrency with ease.



Get some Bitcoins

You can buy bitcoins on an exchange or directly from other people via marketplaces. You can pay for them in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live. For example, you can use Coinmama to buy bitcoins with your credit card from anywhere in Europe. If one national currency is used across multiple countries on that continent, it’s relatively easy to know what will be a fair price when converting between bitcoin and your local currency. However, if currencies are different within those countries—like pesos versus dollars in Mexico—it’s difficult to know exactly how much bitcoin you should pay without doing hours of research.


Set up a crypto Wallet

Before you can buy cryptocurrency, you’ll need to set up a wallet. There are many types of cryptocurrency wallets and most exchanges will let you create an account directly through their site. But before you open your own wallet, it’s important to learn more about how cryptocurrencies work in general and what different wallet options mean. For example, do you want to control your private key or let someone else hold it? If it’s easier to trust a third party with your private key, an exchange-based wallet might be right for you. Learn more about cryptocurrency wallets here.


Open an Exchange Account

If you’re looking to buy crypto, start by opening an account at a reputable exchange. Coinbase is a good starting point because it has been operating since 2012 and has handled millions of accounts. Although there are other exchanges (e.g., Kraken), they haven’t gained as much traction as Coinbase and may be more volatile than their more popular counterparts (an infamous flash crash occurred on GDAX, one of Kraken’s sister sites). 


Be sure to have all your bank info ready when you open your account so that you can move your money quickly—crypto markets are no place for procrastinators. You should also verify your identity before purchasing any crypto; fraud is rampant in digital currency, so don't get burned!


Transfer Money

The first step to buying cryptocurrency is transferring money from your bank account to an exchange. This can take a couple of days, depending on how long it takes your bank to process your request. While you’re waiting, you should research what kinds of cryptocurrencies are available and which exchanges let users buy them. Once your money arrives at an exchange and clears (usually within two business days), you’ll be able to buy whatever coins or tokens you want. 


Buy Some Crypto

First, sign up on an exchange that supports bank account transfers. The easiest way to do that is through Coinbase. To get started with Coinbase, you’ll need to provide some personal information and a verified phone number (see details here). 


From there, you can deposit U.S. dollars into your account via bank transfer or wire transfer—once it’s in your Coinbase wallet, you can easily buy cryptocurrency by transferring funds from your dollar-based account to any of these types of crypto-based accounts: BTC (Bitcoin), ETH (Ethereum), LTC (Litecoin), BCH (Bitcoin Cash), or ETC (Ethereum Classic). You can also use a credit card if you want—Coinbase accepts Visa and Mastercard.

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