Investing in crypto is potentially extremely profitable, which explains why more and more people are signing up to cryptocurrency exchanges. Cryptocurrency and DeFi (decentralized finance) allow you to do many things in a decentralized manner that weren’t possible before in the traditional financial system. For example, you can easily loan out crypto with much higher APY returns than usual, or you can receive a loan for a higher APR than usual in exchange for instant access and no approval/credit check process.
Unfortunately, a majority of traditional banks avoid cryptocurrency because it is so new. Some even ban buying or selling cryptocurrencies with their accounts because of their perceived threat to fiat currencies. For this reason, you may find it hard to include cryptocurrencies in your portfolio as long as you’re using traditional banks.
That said, a number of banks have opened their doors to customers who use Bitcoin (BTC) and other digital currencies. These crypto-friendly banks are incentivized by the fact that an increasing number of merchants now accept cryptocurrencies as payment options. In this crypto banks list, we outline such banks to help you figure out the options at your disposal.
Crypto-friendly banks are banks that allow users to buy, sell and store cryptocurrency assets safely. They generally offer lower transaction fees when you want to move cryptos from one wallet to another or convert them to fiat currencies and vice-versa. Some may be large names you recognize with secured funds like Goldman Sachs, and others have no FDIC protection and only deal with crypto assets, such as Binance. Make sure you’ve done your research on where you hold any cryptocurrency or fiat currency.
With that being said, crypto-friendly banks make it possible for you to include cryptocurrencies in your portfolios. They won’t ban or close your account for holding or trading these digital currencies. Some go one step beyond to integrate traditional bank operations and cryptocurrencies in the same operations.
As a business owner, for example, you can accept cryptocurrency as a method of payment and easily convert it to cash through your crypto-friendly bank.
The big question is, why is it important to align yourself with the best crypto banks? For one, some financial experts are touting cryptocurrency as the currency to replace cash. If you’re an investor or business owner, you want to get a head start with any new currency. The best banks for crypto can help with that.
Secondly, cryptocurrencies offer potentially extreme profits. Bitcoin, for example, has gained over 8,000,000,000% (that’s eight BILLION percent!) since its inception. With these kinds of gains, it’s hard to ignore the impact and potential of cryptos. At the very least, you don’t want your bank to be the reason why you can’t get in on the crypto fun.
Finally, cryptos do need fiat currencies – at least for now. You’ll need cash to buy your first cryptocurrency. There are times when you’ll need to convert crypto into cash to make a payment – particularly if the payee doesn’t accept cryptos. The growth of cryptocurrency itself is largely attributable to fiat currencies. These digital coins wouldn’t have gained the value they have if they hadn’t been traded with cash on cryptocurrency exchanges.
With that in mind, here’s a more detailed list of seven of the best banks for crypto:
Website: https://www.revolut.com/
Revolut easily tops the list of crypto-friendly banks because of its built-in crypto exchange and access to other essential facilities like loans, credit cards, and account maintenance services. It also has a wide reach. Originally a U.K. and Europe bank, Revolut now offers free as well as paid accounts in the U.S. market. You only need a passport, ID, and selfie photo to sign up.
Once you have a Revolut account, you can purchase Bitcoin and other cryptos directly through the bank’s app, which is available for both iOS and Android. The built-in exchange allows users to buy cryptocurrencies any time or set automated trading where the app completes purchases and sales when rates hit specific prices.
Website: https://www.ally.com/
Ally Bank is integrated with the Coinbase cryptocurrency exchange, giving its customers access to cryptos through Coinbase. You can sell and purchase digital currencies directly through your credit and debit cards. And since Ally Bank operates 24/7, there are no time limits on crypto trading and investment.
One thing that puts Ally Bank up there with the best crypto banks is its portfolio management options. You can choose between self-managed trading, where you have complete control over your trades, and managed portfolio, where your trades use a Robo-advisor. Either way, Ally Bank won’t charge you any monthly fees. You won’t even need to make minimum deposits to hold an account.
Website: https://www.binance.com/
Although it’s technically a cryptocurrency exchange, Binance provides all the primary functions of traditional banks, including fixed deposits, credit cards, and loans. Thanks to the Binance Visa Card, you can easily make purchases from over 60 million merchants across the world using cryptos. And you only need a valid ID document to open an account. You can either use a driving license or passport.
The biggest selling point for Binance is its infrastructure services as far as blockchain technology. It has multiple trading platforms that cater to various levels of trading experience. Better yet, Binance guarantees returns on stablecoin portfolios, which means less risk for your money when you invest in stablecoins.
One thing to keep in mind is that users in the U.S. can only access Binance through its U.S.-based platform. Besides, it’s also not available in seven states, namely, Connecticut, Hawaii, New York, Texas, Vermont, Idaho, and Louisiana.
Website: https://www.usaa.com/
USAA was the first major US-based bank to partner with Coinbase and invest in a cryptocurrency exchange. Through this partnership, USAA customers can link their bank and coinbase accounts and view all their crypto transactions directly on the USAA app. If you’re a business owner, you can accept crypto payments to your account using NOWPayments.
Something to keep in mind is that USAA membership is generally restricted to active, retired and honorably separated military members and their immediate families. This tends to limit the people who can use USAA. But if you’re eligible, you’ll be glad to know that having and maintaining an account with the bank is completely free. You can transfer funds, pay bills and access all traditional banking services from your account.
Website: https://bankprov.com/
If you’re looking for old but crypto friendly banks, then BankProv is your ideal partner. Previously known as The Provident Bank, BankProv has over 200 years in the American banking market, making it one of the oldest.
While most old banks avoid and even ban cryptos, BankProv is pitched as a leader in fintech and blockchain technology. That is because it has a dedicated cryptocurrency section on its website where you get access to the ProvXchange Network and API banking, both of which can be used as platforms for crypto transfers.
Additionally, BankProv has a partnership with Anchorage Digital which allows the latter’s customers to get loans that are backed by cryptocurrencies. That said, BankProv is generally more ideal for business banking than personal banking. Although you can still open a personal account, you’ll often find that their business packages are more appealing.
Website: https://www.fidor.de/en/
Fidor is a German-based online bank with operations in the U.S. Thanks to a 2014 partnership with bitcoin.de and Kraken, it was among the first European banks to integrate cryptocurrencies in their operations. You can link your Fidor account with your crypto wallets through an API connection and view the status and transactions of your crypto wallet through the Fidor dashboard.
More importantly, Fidor bank customers can deposit funds in their accounts and use them to buy or sell cryptocurrencies. This is a service that most banks still shun. You can also convert your cryptocurrencies into fiat currencies and vice versa.
Seeing as Fidor bank has direct partnerships with cryptocurrency exchanges, you can rest assured that your crypto assets are always protected and the bank won’t freeze or ban your account if you hold or trade cryptos. Because of its excellent security, flexibility and support, Fidor earns a spot on the best crypto banks list.
Website: https://www.goldmansachs.com/
Goldman Sachs first allowed crypto trading in 2018, but then paused the service following reservations by some investors. But the recent surge in bitcoin prices and popularity has seen the bank reintroduce crypto trading, albeit very gingerly. Specifically, Goldman Sachs currently trades bitcoin futures with Galaxy Digital and is expanding into options and futures in Ether.
Although the number of cryptos on offer is limited, Goldman Sachs sure is leading Wall Street giants into a world where fiat currencies and cryptocurrencies can coexist. The only challenge is that the bank is mainly offering these digital currencies to its wealthy investors, thus locking out some of the not-so-wealthy yet interested parties. As a side note, Morgan Stanley is also exploring the possibility of offering the same to its wealthy investors.
The number of crypto friendly banks is not as big as the number of banks that ban and avoid these coins. But more and more institutions are starting to embrace cryptocurrencies. With large banks like Goldman Sachs and BankProv now encouraging their customers to invest in cryptos, it’s just a matter of time before other banks start to join in the fun.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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