Using A Bank Account For Bitcoins
When setting up your account with an exchange, you may be prompted to set up a link to your bank so you can purchase or cash out your Bitcoin and have it sent directly to your bank. We will look at how this is done on a couple of the major exchanges along with the pros and cons of linking your bank account to an exchange.
Choosing the right exchange is important depending on your knowledge and time spent in the crypto world. Some exchanges are very basic and easy to use while some offer more options that can be a little confusing to a novice investor. Here are a couple of the most popular and easiest to use exchanges.
- Coinbase: Very easy to use especially for first-time buyers. After setup and verification, click your avatar and choose “Settings” then “Payment Methods”. From here you will be able to link your bank account, PayPal, or debit card. Coinbase also offers wire transfers directly to or from your Coinbase account. Return to your home screen and hover over Bitcoin in the “Watchlist” and click “View Asset”. From here you will be able to choose your asset and your method of payment. Enter the dollar amount that you would like to spend for your Bitcoin purchase. Press the blue “Preview Buy” button to begin the process. Follow the easy on-screen instructions to finalize your purchase.
- Gemini: One of the leading favorites for buying Bitcoin. This company has continued to grow in popularity year after year due to their friendly and easy to use interface. After you have navigated through the steps of setting up your account and getting verified, it is time to link your bank account. From your home page, click the “Account” option and choose “Settings”. Select “Funding Sources” from the left-hand side of the screen. Here you have the option to link a bank account. Follow the on-screen instruction for setup. Now, return to your home screen and choose Bitcoin and click the “View details” button. From the “Buy” option you can enter the amount in US dollars you wish to spend and click “Review order”. To finalize the transaction, choose your payment method and the place order.
Linking your bank account with an exchange may be an easy way to make Bitcoin purchases and sales, but it also has its downfalls. It can sometimes take at least 3 to 4 days for the funds to transfer back into your bank account after making a sale. On some exchanges, it may also take 3 to 4 days for the purchase to arrive in your crypto account. Search the internet for the top Bitcoin exchanges and read their reviews to see if they are right for you when linking your bank account. Also remember, you are giving a third-party institution your banking account information that may be vulnerable if the site is ever compromised or hacked.