Are you tired of worrying about where to store your crypto? Look no further! In this guide, we’ll introduce you to the best crypto-friendly banks of 2023. These banks have recognized the importance of digital currencies and have taken steps to accommodate their customers who hold and trade in crypto.
Whether you’re a seasoned crypto investor or just getting started, finding a crypto-friendly bank is essential for safely storing your digital assets. In this guide, we’ll take an in-depth look at the top crypto-friendly banks, their features, and services and help you decide which bank is the best fit for you.
So, join us as we explore the world of crypto-friendly banking and find the perfect solution for storing your digital assets with ease.
What is a Crypto-Friendly Bank?
“Best bank for cryptocurrency” refers to financial institutions that accept cryptocurrencies as a medium of exchange and integrate them seamlessly with traditional banking operations.
These crypto-friendly banks make it easy for customers to move between cryptos and traditional currencies with low transaction fees, making it an ideal option for those looking to add crypto to their portfolios.
By choosing a crypto-friendly bank, customers can bring cryptocurrency into the mainstream and enjoy the benefits of both worlds.
Features of a Crypto-friendly Bank
User-friendly
Banks are often used as a tool for exchanging currencies, and plenty of other factors make them complicated. Nowadays, though, a new option is easier to use. Instead of using banks or wallets, you can use cryptocurrency accounts like those at Coinbase or live coin if you have the necessary information.
Reliable
Crypto banks allow for transactions across multiple platforms, especially those used most often by their customers. These banks offer large trading volumes; liquidity, giving their clients more control over their own funds. Overall, these banks provide a superior service to other types of wallets & help make the crypto ecosystem much safer.
Security
Asset transfer methods are completely anonymous, offering total privacy for crypto bank users. A blockchain ecosystem is best since it ensures security and information privacy. Using a crypto bank is an efficient way to ensure transaction confidentiality, which makes the service more attractive to the market.
Earn Interest Rates
These assets allow you to generate digital currencies usually tied to a financial market (such as U.S. Dollars). The interest they earn through the year is key because it grows over time, and thus, if you have an idle asset, such as cryptocurrency coins or physical gold bars, they will generate a noticeable amount of income each year
Cryptocurrency Exchange Integration
A growing number of banks offer crypto exchange integration. That way, you can get crypto from your bank account, which lets you purchase crypto more easily than paying for it in another way.
[2023] Top 7 Best Crypto-Friendly Banks
Revolut
Revolut is considered the overall best crypto bank in the market right now, and the best bank for crypto. Founded in 2015, it has quickly become one of the most popular challenger banks globally, with over 18 million personal accounts. The digital-only bank operates via a mobile app that is fully optimized for both iOS and Android smartphones.
One of the most notable features of Revolut is that it is one of the few US-approved banks for crypto services. The bank also accepts customers from Europe, the UK, Australia, Singapore, Japan, and Switzerland.
By opening an account with Revolut, customers can add funds in their local currency and send and receive funds just like a traditional bank account. In terms of crypto services, Revolut excels in cross-currency payments and offers industry-leading exchange rates.
It also offers a debit card that links to your account, which can be used online, in-store, or at an ATM. Customers can also easily use their Revolut account to buy cryptocurrency, and withdraw cash proceeds back to their Revolut account, provided the crypto exchange is regulated.
Revolut also allows customers to buy crypto from within the app, covering over 30 leading crypto assets, including Bitcoin, Ethereum, XRP, and Dogecoin. The minimum trade size for buying crypto via the Revolut app is just $1. The main drawback with Revolut is that it charges hefty fees when buying and selling crypto.
Pros & Cons
Pros:
- Crypto-friendly bank
- US clients accepted
- Send and receive funds just like a traditional bank account
- The debit card is offered to all account holders
- Great for cross-currency payments
Cons:
- Crypto trading fees are high
- A third party holds crypto investments
Monzo
Next up on our list of the top crypto banks for 2023 is Monzo. This challenger bank is only available to those residing in the UK and is authorized and regulated by the FCA. UK-based customers will appreciate that Monzo offers coverage for GBP balances up to the first £85,000 through the FSCS.
Monzo, like Revolut, is a mobile-only bank account available via an Android and iOS app. Customers will be given a local UK bank account number and sort code alongside a debit card issued by MasterCard, allowing them to perform everyday financial services.
There are no fees for opening or maintaining a standard account, although premium accounts with higher ATM withdrawal limits and other features cost £5 per month.
It’s worth noting that Monzo does not allow buying or selling crypto through its app and is not the best bank account for cryptocurrency. However, the bank does have a crypto-friendly ethos and allows for depositing funds into digital asset exchanges and withdrawing money back to the Monzo account, as long as the exchange is regulated.
For example, transactions with eToro and Coinbase are accepted, but those with Binance will be blocked. Monzo may not be the best bank for buying crypto but it’s a great option for those who want to deposit and withdraw funds from crypto exchanges.
Pros & Cons
Pros:
- Allows you to deposit and withdraw funds into and from regulated crypto exchanges
- Free UK bank accounts
- Debit cards issued by MasterCard
- Competitive FX fees
Cons:
- No crypto exchange services
- Customer support is not as good as it used to be
- Reports of debit cards not working at ATMs in certain countries
Nuri
Nuri is one of the most crypto-friendly banks currently available in the market. They describe themselves as ‘new reality banking’ and offer a mobile app that bridges the gap between crypto and traditional fiat money.
Upon registration and identity verification, Nuri offers customers a fully-fledged German bank account with a local IBAN for SEPA payments within Europe and SWIFT transfers internationally.
Additionally, Nuri offers a Visa debit card that can be used for online payments and ATM withdrawals. The bank’s partner financial institution, Solarisbank, is also covered by a EUR deposit protection scheme of up to €100,000 per account, offering customers added security features such as biometric logins and real-time transaction notifications.
On the crypto side, Nuri allows customers to invest directly in digital currencies from their accounts. A standard trading commission of 1% per slide is charged when buying and selling crypto.
The minimum investment per trade is €30. Customers can keep their crypto assets in either a custodial or non-custodial wallet, with the option to control their private keys.
Nuri also offers crypto savings accounts with an APY of 5% on Bitcoin. Interest is paid out on a weekly basis, and there is no minimum lock-up period required on interest accounts. Customers can also create savings plans, set targets, and receive real-time updates on progress.
Pros & Cons
Pros:
- Buy and sell crypto at 1% per slide
- The crypto savings account offers 5% APY on Bitcoin
- German bank accounts offered
- Debit card issued by Visa
Cons:
- Minimum crypto trade of €30
- Only Bitcoin and Ethereum are supported
Coinbase
Coinbase, founded in 2012, is one of the largest and best crypto exchanges globally in terms of account holders and daily trading volume. Regulated by the SEC and now a public company trading on the NASDAQ, it is a trusted platform to buy, sell, and store crypto.
While it is not a bank, it does allow for the deposit and withdrawal of funds in fiat money, including US dollars, euros, British pounds, and more. It also offers FDIC protection for US clients’ USD balances. It does not offer interest accounts but does allow for crypto staking, with a limited selection of digital currencies and low returns compared to other options.
Another drawback is its high fees. Additionally, it offers one of the best crypto credit cards on the market- the Coinbase Card, which allows for fast and convenient spending of cryptocurrency holdings.
Pros & Cons
Pros:
- Founded in 2012 and regulated by the SEC
- 50+ coins supported
- Debit and credit card payments accepted
- A great choice for beginners
Cons:
- 3.99% fees on debit/credit card payments
- FDIC insurance only offered to US clients on USD balances
BankProv
BankProv, which traces its roots back to 1828, has modernized its services to include crypto-focused products. However, it is largely targeted toward businesses involved in digital currency services. Personal accounts are still offered, which can be opened and maintained online or via the native iOS and Android mobile app.
Along with personalized checking accounts, you will also be offered a debit card that can be used at ATMs, in-store, and online. Security features include the ability to freeze your card at the click of a button, alongside fingerprint or face ID, and 24/7 customer support via a simple live chat facility.
USD balances are covered by the FDIC. However, it is important to note that BankProv’s crypto exchange and other related services are currently only accessible by business account holders, making it not the best bank for crypto trading for individual users.
Pros & Cons
Pros:
- First established back in 1828
- FDIC insurance on USD balances
Cons:
- Crypto services only offered to business clients
- Poor functionality
- The mobile app has poor reviews
Quontic
Quontic is a leading online bank for crypto enthusiasts, offering a unique Bitcoin Rewards checking account that allows customers to earn 1.5% Bitcoin on eligible debit card purchases.
With all the features of a traditional bank account, including mobile check deposits, online bill payments, and electronic transfers, as well as free access to over 90,000 ATMs, Quontic is a convenient and secure option for managing fiat and crypto funds.
There’s a $500 minimum opening deposit and no minimum daily balance requirement, ensuring that customers can earn and retain their Bitcoin rewards as long as their account remains open.
Ally Bank
For crypto users in the US, Ally Bank is a great choice as it is a crypto-friendly bank. The online bank offers the convenience of 24/7 access for buying and selling cryptocurrencies from different exchanges, allowing you to choose from a wide range of digital currencies.
With an APY of 1.40%, Ally’s savings accounts are above average compared to other banks, allowing customers to invest in stocks without commission fees. The bank also offers a wide range of services, such as loans and retirement planning.
The bank has a well-rated mobile app and was founded in 2009 and consistently ranks among the top online banks in the US. Ally bank is a great choice if you’re looking for a full-service bank with crypto options.
Choose a Crypto-Friendly Bank
The following are tips on how to choose the right crypto-friendly bank:
- Find a bank with low fees: currency conversion fees can be expensive, so make sure the rates you use are affordable.
- Consider a bank that has multi-currency accounts: Consider Multi-currency accounts can make it easier to hold, manage, and spend different currencies. These accounts are on the rise, so consider this when your bank offers a service that makes sense.
- Find a crypto-friendly bank that offers support for many countries: international banks that take clients from all over the world tend to be some of the most reliable banks, especially when handling cryptocurrency transactions.
- Research the crypto you want to invest in: Choosing tokens for your specific needs can be overwhelming, but that is where the best investments lie. There are different types of cryptocurrencies with varying qualities, so take your time to figure out a strategy you’re comfortable with.
- Check if your bank has any crypto-related integrations: some banks offer integrations with popular exchanges like Kraken so that you can convert your fiat funds or U.S. dollars into alternative cryptocurrencies anytime.
Disadvantages of Crypto-Friendly Banks
Finding a bank that accepts cryptocurrency can take significant time, but it could provide you with a new level of convenience. Just be sure to conduct your due diligence on any available options, so you can make an educated decision.
There are also things like fees: significant transaction fees are involved in converting fiat currency into digital assets and vice versa. Worse still, insurance does not cover your digital possessions. This suggests that if the bank is hacked, you will lose your digital assets
What are the Safest Ways to Store Bitcoin?
A digital wallet can be stored on a mobile device or computer desktop, printed out, and kept safe in a physical wallet. The answer to how safe they are depends on how the user manages the account. It’s very important to store your personal keys somewhere safe and ensure they’re not shared with anyone else in the case of theft.
One example of a secure storage method is a software wallet. If you keep your private key in a computer’s temporal memory, it can’t be accessed even if the computer falls into the wrong hands or gets infected by a virus.
Without the private key, a user will lose her coins. A user can also lose his bitcoins by becoming careless and losing a computer with the coin wallet or by stealing encrypted information through hacking.
Below we will look at some of the best ways to safely store bitcoin.
Hot Wallet
Online wallets, also known as “hot” wallets, are wallets that run on internet-connected devices such as computers, phones, or tablets. These wallets can be convenient for quick access and transactions, but they also lack security.
It’s not uncommon for people to have their funds stolen if they don’t use enough security when using these hot wallets. Hot wallets are meant for small amounts of cryptocurrency, similar to a checking account for conventional finances. These wallets include mobile, desktop, web, and most exchange custody wallets.
Cold Wallet
Cold wallets are a more secure option for storing your cryptocurrency. They don’t mesh online, so there’s less risk of them being compromised. In short, they’re the safest option of all 3 types and provide the most peace of mind.
Hardware wallets are offline storage for Bitcoin or other cryptocurrencies. Successfully setting up one can require more knowledge because these devices are primarily designed to be harder to hack into.
Choose Your Ideal Best Crypto-Friendly Banks
A digital bank is your best bet if you want to invest in Bitcoin or other cryptocurrencies. They provide investors with more privacy and flexibility, as digital-only banks do not use traditional methods for funding and lending.
As it is hard to find a bank that supports cryptocurrency transactions and still provides all the products and services you need, we’ve compiled a list of banks that offer these features.
