Best Crypto Friendly Banks
Cryptocurrencies are digital currencies that use decentralized blockchain technology (read about crypto staking). The last few years saw cryptocurrency and blockchain technology revolutionize the economy and the investment market and even introduced best crypto friendly banks.
Crypto systems are completely removed from any central government. This decentralization means that most cryptos aren’t linked to a fiat currency. Yet this also means they have a volatile nature, with their value rising or falling within seconds.
There are many digital currency friendly banks, and we compiled a list of the best ones after evaluating their offer. You’ll have access to different banks depending on the country you’re based in. For example, in the USA, you have Ally Bank, Goldman Sachs, JPMorgan Chase, etc., which accept cryptocurrencies. The European countries have options like Revolut, Nuri, Fidor Bank, and more.
These are banks that are based in the UK that accept cryptocurrencies. They either offer their own integrated system where you can buy, trade, store, and sell cryptos or the link with an electronic platform that offers those services.
These are banks that are based in Canada or available to Canadian residents that accept cryptocurrencies. They offer their own integrated system where you can buy, trade, store, and sell cryptos or the link with an electronic platform that offers those services.
The best bank cryptocurrency in US depends on what you have access to, but overall, Ally Bank and JPMorgan Chase are some of the top options Americans have access to in many states. They’re accessible across most of the country and offer various crypto trading tools and services.
When looking into which banks allow cryptocurrency purchases, Bank of America pops up. Since they allow you to integrate with their subsidiary, Merrill Edge, you have some connection with the crypto market. Unfortunately, Merrill Edge predominantly operates ETFs. As such, you can’t buy or exchange traditional cryptos using your Bank of America account.
Nuri and Fidor Bank are two examples of German-based banks that accept digital money. You can buy, trade, store, and sell using your Nuri app or Fidor account. Both are good options for German residents who want to enter the crypto market.
When you want to invest in the best crypto for banks, you need to consider what type of bank account to open. Depending on where you bank, they’ll have different options available. If you’re investing with a long-term goal, a savings account or an interest account like Nuri’s Bitcoin Interest Account are the best options. However, if you want to use crypto and actively trade them, you should look for a bank that allows for a check or crypto trading account.
With the introduction of banks that accept cryptocurrency, people have an easier time buying and investing in cryptos. However, these cryptocurrency friendly banks don’t all offer equally good service and options.
With many online casinos starting to accept cryptos, our team decided to thoroughly review which are the best banks for cryptocurrency.
We look at what offerings the best cryptocurrency bank has and how easy it is to bank at these institutions. Also we consider whether it offers a banking app, competitive interest rates, and a crypto exchange platform.
We always want to ensure you have all the information before you start using crypto banks, no matter the country that you’re in.
What Makes a Bank Crypto Friendly?
To understand what makes a bank crypto friendly, you must first understand what cryptocurrencies are. Cryptocurrency is a relatively new concept, with the first crypto introduced in 2009. Once you understand cryptos, you’ll better understand the differences between a bank that’s crypto friendly and traditional banks.
What Are Cryptos?
Cryptos are decentralized digital currencies that use blockchain technology. Since they’re decentralized, they’re not linked to any fiat currency, which means they’re available to people globally. However, it also means there’s no real insurance of their value, which can drop or rise within seconds.
Bitcoin was the first crypto introduced to the economy, and now, it remains one of the most invested digital currencies. You can use cryptocurrencies for staking. Discover the best crypto staking platforms.
Since Bitcoin was introduced, hundreds of other digital currencies have been created. Now, people can use cryptos to pay at select stores, like Starbucks, and you can buy, trade, store, and sell these digital coins.
As they’re entirely digital-based, they need an electronic wallet where you store your cryptos, similar to a bank account.
Traditional vs. Cryptocurency Friendly Banks
The difference between traditional and cryptocurency friendly banks is whether they accept cryptos. Digital currency friendly banks are the crypto institutions that integrate and allow the purchase, transfer, and exchange of digital currencies.
Banks were hesitant to integrate with cryptos for years because of their volatile value and regulations.
When it comes to cryptocurrencies, there are no clear guidelines on the regulations a country will have. Many countries have strict regulations regarding handling electronic money or no clear regulations. This regulation discrepancy makes it difficult for financial institutions to handle digital currency. As such, it often results in them just not accepting it.
However, with crypto’s popularity growing, some banks have started integrating with it. These cryptocurency friendly banks have integrated facilities that allow the handling of cryptos. The biggest crypto banks allow you to buy, sell, store, and exchange cryptos using your banking services or app, making it easily accessible.
Guide for Finding Best Crypto Banks
When the question of “What is the best bank for cryptocurrency” comes up, there are several aspects you need to consider before answering it. When we look for the best bank for crypto, we consider what features and services they offer to their crypto users.
Several financial institutions have popped up advertising their integration with digital currencies. However, that doesn’t mean their offerings are equally good for all users. We’ve considered the below factors and more when reviewing the crypto banks list.
Interest Rates
The top crypto banks offer competitive interest rates on their lending and borrowing. Sometimes, they offer borrowing rates as low as 4% to 8% on certain cryptocurrencies. However, you can earn more than 7% interest on major cryptos, like Bitcoin, Ethereum, and others.
Different cryptos could have different rates, and the number of loans and the value of the crypto can affect the interest rates. Ultimately, if you bank at an institution that offers competitive rates on digital currencies, you can save a lot of money in the long run. As such, it’s always crucial to consider this and look at what the financial institution offers.
Trading Features and Functionality
One of the most important aspects of creating a crypto bank account is ensuring access to all the best trading features and functionality. Digital currency friendly banks should offer a user-friendly platform. You should easily be able to navigate, buy, sell, and trade cryptos on the platform.
We look at which crypto is used by banks and how many of these digital currencies they accept. We also look at their variety of trading venues and the offered leverage positions.
Another factor to take into account is what payment methods they accept. Not all financial institutions or exchange platforms accept popular payment methods. While we appreciate payment methods like PayPal and Debit cards being available, it isn’t always possible. It also depends on the bank whether they allow trading with certain currencies.
Accessibility and Apps
While there are quite a few banking options for digital currencies, not all are accessible globally. In fact, banks accepting cryptos are generally limited to their own country and surrounding countries, if even that. That’s why you’ll often find that a US-based bank that’s crypto friendly is only available in the USA.
However, although many of these banks are only available to their surrounding countries, many offer apps. Banking apps are a great way to consolidate your account and easily access it. We always consider whether users have access to such an app and whether they can use it to trade and invest in digital currencies.
Integrated Wallets
While we know the importance of having access to a secure crypto wallet, we also consider whether the financial institution offers direct transactions from the wallet. This includes whether it’s possible to use international payment services through the wallet or use digital currencies through your bank account.
Trading and making transactions directly from your wallet make it much more user friendly. However, remember that most financial institutions will also have a transaction fee. We also look at this fee to see whether it’s low or high.
Security
One of the most important things is always ensuring you bank at a secure institution. That means ensuring they have a reputable name and offer secure payment portals and good exchange platforms.
Many cryptos use smart contracts to facilitate transactions. These smart contracts allow less error as they don’t pass through an intermediary.
However, some countries don’t have strict regulations regarding cryptos. Thus there might be shady institutions offering crypto services. All the financial institutions we evaluate and recommend are 100% safe to bank at. Just remember the volatile nature of cryptocurrencies.
Partners and Tie-Ups
The best crypto friendly bank often has partnerships and tie-ups with reputable companies. You can often estimate the bank’s standing by looking at their partners.
Affiliates and partners often enhance your experience at the institution. They offer better features and trading capabilities most of the time. You also see improved customer service and security for all clients at this institution.
The more and better partners an institution has, the better are their sponsors and investments. It shows an interest in that institution. It also allows for better handling of their services and platform.
An institution’s reputation can also be linked to the reputable name of its partners. Thus they improve the trust in their platform as they perform better.
Best Crypto Friendly Banks
We’ve reviewed the banks using cryptocurrency and set up a list of the best crypto friendly banks in various countries. Some banks might be better than others. However, not all might be available to you. You should remember to consider what’s available to you and the best online bank for cryptocurrency in your country.
There are many electronic exchange platforms available to crypto users. However, we limited this article to look at the banks that accept cryptocurrencies. We also looked at banks that link directly with one of these electronic exchange platforms.
Ally Bank (USA)
Ally Bank is one of the cryptocurrencies friendly banks that doesn’t integrate directly with cryptos but rather gives its users access to Coinbase. (Read a comparison of these crypto exchanges – Binance vs Coinbase.)
Coinbase offers its own debit card linked to your Coinbase account, but you can now link your Ally bank account to their platform. Further, you can link your Ally credit or debit card to your Coinbase account and use it to buy cryptos.
You don’t have extra monthly fees for linking your Ally account with your Coinbase account. That doesn’t mean that all their regular fees won’t apply. Coinbase also accepts more than 100 digital currencies.
They have no annual fee, and you can even earn crypto rewards. Yet, Coinbase does have a slightly higher transaction fee of 2.49% if you exchange your digital currency for fiat currency.
Revolut (UK)
Revolut is one of the UK crypto friendly banks. They’re arguably one of the best online banks for cryptocurrency trading, if not the best bank for buying crypto.
You have access to an app that you can use to purchase from over 50 different cryptos. Further, your digital investments are held with trusted custodians in cold storage. Cold storage means that your assets will be safe even if your private keys are hacked.
You can use your Revolut card or phone app to make payments and access all the different features from their app. You can do stock trading without a commission paid to the institution.
You have a monthly fee depending on your account and activities. The institution is FDIC insured. Yet, remember that FDIC insurance doesn’t cover cryptos, investments, and commodities.
Fidor Bank (Germany)
Fidor Bank is one of, if not the best bank for crypto trading. They aim to protect their investors and users’ crypto trades, purchases, and exchanges.
They have a fully customizable selection of tools that ease your crypto transactions. You have access to multiple exchange platforms and digital currencies, and they provide two free cash withdrawals per month.
Further, Fidor has a fixed debit card transaction fee of 1.5%, which is on the low end and offers stability when using your debit card. You can also transfer funds instantly to other users, making it the best crypto bank account for German crypto users.
They’re partnered with the exchange platform Kraken, allowing users direct access to their wallets through their Fidor Account dashboard.
Bankera (UK)
Bankera is one of the top institutions, if not the best bank, to use for cryptocurrency to global markets. It’s not only one of the crypto friendly UK banks but is available to almost all countries.
The exceptions are the USA, Russia, North Korea, Belarus, and Iran. It’s a relatively young company compared to other institutions, but it allows its users to link their accounts with SpectroCoin.
While Bankera isn’t directly integrated with cryptocurrencies, users can use their provided IBAN (International Bank Account Number) to link their SpectroCoin account. Once linked, you can use Bankera to convert your Bitcoin to euro. You can load this euro amount onto your Bankera debit card, which you can use to make purchases. You can further apply for loans and exchange foreign currency using your Bankera account.
Bank of America (USA)
The Bank of America is one of the biggest financial institution brands in the USA, with retail branches in over 35 states. However, while it’s a crypto friendly bank, it doesn’t integrate directly with digital currencies.
While it might not be the best bank account for crypto, it allows users to access their subsidiary, Merrill Edge. At Merrill Edge, users can invest in ETFs (exchange-traded funds).
Using Merrill Edge, you can track various companies that hold assets in the crypto industry. These companies include names like Oracle, Baidu, Micron Technology, and more. While this gives users an entry into the crypto industry, it doesn’t offer the same capabilities that other cryptocurency friendly banks do.
The limited interaction you have with cryptos is why we don’t regard it as the best bank account for cryptocurrency. While some might regard it as the USA’s best bank, cryptocurrency platforms aren’t widely available here.
Robinhood (USA)
Robinhood is a US-based crypto exchange platform that allows you to purchase and sell cryptos. You can invest in stock and altcoins.
Altcoin usually refers to cryptos other than Bitcoin and, in some cases, Ethereum. Robinhood has also announced that they’re busy developing a web wallet (e-wallet) for their platform that should be available to all users by the end of 2022.
However, unlike similar platforms, users can’t withdraw their digital funds directly from their Robinhood account. Instead, they must sell their altcoins and transfer the rest of their stock to external accounts.
Overall, Robinhood might not be the best bank to buy cryptocurrency if you’re an avid investor. Rather, it’s more suited to beginners and people looking to invest small amounts.
Goldman Sachs (USA)
Goldman Sach is another financial giant that allows its users to link with Coinbase. Linking with Coinbase means you can access the best cryptocurrency for banks, as Coinbase offers over 100 different digital currencies.
While check accounts aren’t available, you can create investment and savings accounts. It’s especially focused on trading Bitcoin futures using the liquidity provider Galaxy Digital Holdings.
They also trade mainly in Bitcoin and Ethereum on their own platforms, with other altcoins only available if you link using Coinbase. However, we wouldn’t state it’s the best bank to use for cryptocurrency, as their crypto offerings are currently limited to their most wealthy clients.
Thus if you don’t have extremely deep pockets and high net worth, we wouldn’t recommend using Goldman Sachs for your crypto investments.
Nuri (Germany)
Nuri, previously known as Bitwala and rebranded in 2021, is a German-based financial institution that’s also one of the crypto friendly banks Canada can access.
It’s one of the top options for European residents, as it allows for traditional banking with a German IBAN and a Visa debit card. You can invest in digital currency directly from your Nuri bank account, and you get a Bitcoin address that you can use to send or receive Bitcoin from anyone.
You can use the Nuri app available for Android and iOS devices to buy, trade, and sell your Bitcoin. They also have a Bitcoin Interest Account, where you earn 5% interest every week, as it’s partnered with the Celsius Network.
It also has some of the lowest Bitcoin trading fees at 1%, which also applies if you’re selling your crypto for fiat currency. However, Nuri currently only accepts Bitcoin and Ethereum, with no other altcoins available.
JPMorgan Chase (USA)
JPMorgan Chase is one of the first institutions in cryptocurrency banking that created its own crypto and blockchain technology to allow for better integration on its platform.
This technology is mainly available to their corporate clients investing in crypto, while their retail clients can link with major platforms like Coinbase and Gemini. Chase even offers its wealth management client six crypto fund offerings.
Not only does Chase have more than 4,800 branches across the country, with over 16,000 ATMs, but they also offer a variety of accounts to ensure its clients always have access to what they need.
While they started with large transaction fees, they’ve since downscaled and ensured their fees became smaller. They’ve become one of the top crypto friendly banks in the US.
Conclusion
Cryptocurrencies are taking the world by storm and booming in the investment market. Since they were introduced to the economy in 2009, with Bitcoin as the very first crypto, it’s enjoyed explosive popularity. People hesitated to invest in it because of its volatile nature.
The value of crypto can fall or rise within seconds, but recent years have seen more people investing in it.
While traditional banks were slow to accept this digital currency, some have jumped on the bandwagon and now offer crypto tools and services. However, that doesn’t mean all the services are equally good, as some offer their own integrated platform, while others link you to external ones.
We looked at some of the best crypto friendly banks and their offers. Depending on your goal when investing in crypto, you can use different banks and accounts. We looked into which are the best options and compiled a list of the best crypto banks.
