Banking & Crypto: The Most Crypto-friendly Banks
Best online banks for crypto transactions
The recent "boom" of cryptocurrency trading expanded the audience for blockchain technology beyond the usual "early adopters" and "innovators", all the way towards mainstream audience. The impact of this new group of investors on the crypto market is hard to overestimate. Naturally, it was only a matter of time (and a ton of regulatory restrictions) before retail banks embraced the idea of allowing their customers to invest funds into certain coins or even crypto-based funds similar to what ETFs are to stocks. Of course, the pioneers in this field were not the traditional "brick and mortar" banks, but rather their smaller, younger and digital-native counterparts. What are some of the best banks to pick if you want to get in on Bitcoin, Ethereum or even Dogecoin craze? In this article, our experts elaborate on their picks.
We also advise you to to explore our collection of reviews of various crypto exchanges, including Kraken, Gemini, eToro and many more. New to crypto? Make sure to read our "Beginner's Guide to Cryptocurrencies & Blockchain" where our experts concisely explain complex concepts in simple terms.
⚠️ Warning! Investment is never without risk. You may lose your investment due to market risks involved. ⚠️
How does banking with crypto work?
There are multiple "levels" of crypto acceptance all banks can be divided into. We assume that a borderline level is your traditional bank: gets suspicious when you transfer money in and out of exchanges or other Web3-related platforms. You might get these transactions blocked, they might request you submit additional paperwork pertaining to your exchange and, in some cases, tax authorities might also be involved. We will assume that to be the baseline, and every step above that can be safely considered an upgrade. The key factors as follows:
Obviously, the best way to go is to have an ability to trade cryptocurrencies directly within your bank app. It is a fairly rare option, and even if you are a lucky user of one of the neobanks that provide it, you can still find yourself disappointed as the coin selection in these products is usually pretty mediocre, while the fees tend to be very high.
Cashing in and out of exchanges without any hassle:
For instance, Wise recently stated that "you can send money to your balances with bank details from a platform that deals with Bitcoin or another cryptocurrency — as long as the platform is regulated and/or supervised in the EU or UK". Revolut, on the other hand, only recently reversed their position on transactions with exchanges and now claims to accept up to €50k per day in withdrawals from exchanges.
Simple and powerful API means easier integrations, which means that not only can you automate your trading using your bank's and the platform of choice's APIs, but you can also expect "out-of-the-box" integrations to work better as well. Of course, PSD2 helps quite a lot with third party integrations.
The other important aspect to consider is your local authorities' stance on cryptocurrenciess and applicable laws. You can find out if you need to declare funds on exchanges or in wallets, by searching this information online. Knowing the regulatory framework will definitely come in handy, and you absolutely need to be aware of it if you plan on dealing with cryptocurrencies!
Our Selection: The Most Crypto-friendly Digital Banks
Dutch online bank that gives you the freedom to bank like a local all over Europe. The bank's mobile apps are packed with exciting and unique features, and the fully fledged banking license bunq has ensures your money are 100% safe at all times.
- Free plan available✔️
- Joint accounts✔️
- Business accounts✔️
- Sign-up bonus30 days free trial
- Official Websitebunq.com
Who says banking can't be exciting? The latest Dutch fintech unicorn, Amsterdam-based bunq is not only pushing for ethical investment practices by allowing users to choose how their funds get invested, but also planting over 8 million trees as part of their "Become CO2-neutral in 2 years!" initiative. This innovative challenger bank provides tech-savvy user with a powerful open API and, unlike banks like Revolut known for cracking down on people transacting with known crypto exchanges, has a fairly liberal policy towards cryptocurrencies. The only downside is that this does not extend to businesses - if your company is dealing with ICOs, stores coins belonging to 3rd parties or facilitates P2P exchange of digital assets, bunq will not be able to provide your business with banking services.
- Cashback rewards
- Metal crypto card
- Multiple sub-accounts
- Shared accounts
- Automatic savings
Vivid is an up-and-coming financial "one-stop-shop" app: payments and transfers, an interest on your current account, 3000+ ETFs & stocks from companies all over the world along with 50+ cryptocurrencies on top of and an ability to store funds in over 40 currencies.
- HQ: Berlin, Germany
- Users: > 500'000
- Founded in: 2019
- Stocks & ETFs: ✔️
- Cryptocurrencies: ✔️
- Metals: ✔️
- Card available: ✔️
The Vivid app blends its investment feature seamlessly with everyday banking. You can create a Pocket for investments in Stock or Crypto along side of other Pockets which are essentially bank accounts with unique IBANs. Buying shares or ETFs is at the moment fee-free with Vivid even for its standard free plan, aside from a 0.5% mark-up on currency exchanges. Vivid also has a Stock Rewards feature where you can get Cashback from card payments in the form of fractional stock of your choice - which is in our opinion a pretty smart feature and can really grow your assets without much effort. All in all, Vivid is a fairly new Germany-based player but also already offers a good product for any consumers interested to dip in some stocks or crypto. With its practically fee-free offering - which could change as its customer base grows - it is a pretty good time to give this app a go!
- Cashback up to 2%
- Fee-free FX
- Wirex Token
- Regulated & Protected
- Up to 16% on deposits
Wirex is a simple-to-use platform offering cryptocurrency trading, cashback on purchases in crypto and no fees on fiat currency exchange on top. Wirex also offers very impressive annual return on various assets in a "hassle-free" fashion.
- HQ: London, UK
- Users: > 3'100'000
- Founded in: 2014
- Stocks & ETFs: ❌
- Cryptocurrencies: ✔️
- Metals: ❌
- Card available: ✔️
Wirex is a worldwide digital payment platform and a fully regulated financial institution. Wirex’s mission is to bridge the gap between conventional and cryptocurrencies and bring the "cashless" future closer. Not exactly a bank, but rather an "all-in-one" super-app in the making, Wirex is growing fast and does not show signs of decelerating that growth. The key factors explaining the success behind this challenger are ease of use, zero monthly fees and "cryptoback" of up to 2% on each card payment.