How to buy cryptocurrency with your bank account

If you want to buy cryptocurrency with Australian dollars, using a crypto exchange that accepts bank transfers can be one of the cheapest and most convenient solutions. But if you’re new to cryptocurrency, it can be tough knowing where to get started.

Read on for a list of which exchanges accept bank transfers and how you can buy crypto with your bank account.

Where to buy cryptocurrency with a bank transfer

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Name	Product	Deposit methods	Fiat Currencies	Cryptocurrencies
Swyftx Cryptocurrency Exchange		Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID	AUD	257 cryptocurrencies	Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.	Go to site View details	Compare	loading Fetching your data...
CoinSpot Cryptocurrency Exchange		Bank transfer, BPAY, Cash, Cryptocurrency, POLi, PayID	AUD	276 cryptocurrencies	CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 250 cryptos.	Go to site View details	Compare	loading Fetching your data...
Binance Cryptocurrency Exchange Australia		Credit card, Cryptocurrency, Debit card, Osko, PayID	USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more	261 cryptocurrencies	Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.	Go to site View details	Compare	loading Fetching your data...
Digital Surge Cryptocurrency Exchange		Bank transfer, Cryptocurrency, POLi, Osko, PayID	AUD	250 cryptocurrencies	Finder Exclusive: New members get $10 bonus after verification. T&Cs apply. An Australian based exchange with a focus on simplicity that allows users to purchase a range of cryptocurrencies with AUD.	Go to site View details	Compare	loading Fetching your data...
Cointree Cryptocurrency Exchange		Cash, Cryptocurrency, POLi, PayID, Online banking	AUD	132 cryptocurrencies	Finder Exclusive: New members get $10 bonus after verification. T&Cs apply. Buy 130+ cryptocurrencies with fast-growth portfolio insights, and the ability to swap any coin to any other instantly.	Go to site View details	Compare	loading Fetching your data...
CoinJar Cryptocurrency Exchange		Bank transfer, BPAY, Cash, Cryptocurrency, Osko, PayID, NPP	AUD, GBP	24 cryptocurrencies	CoinJar offers a simple way to buy, sell, or trade cryptocurrency with AUD. Enjoy free and instant deposits, fees start from 0.05% and withdrawals are free to your bank account	Go to site View details	Compare	loading Fetching your data...

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How to buy cryptocurrency with your bank account

Buying crypto with your bank account is actually quite easy. To show you how to do it, let’s look at an example of how to buy bitcoin (BTC) with Australian dollars.

• Step 1. Create a wallet

  For security reasons, you shouldn’t store digital coins or tokens on an exchange for an extended period of time. Instead, before buying any crypto, you should set up a secure wallet where you can store your private keys.

  Check out our guide to the best bitcoin wallets for more info on how to choose and use a wallet.

• Step 2. Register for an account on CoinSpot

  CoinSpot is a Melbourne-based digital currency exchange that accepts two types of deposit from Australian bank accounts: POLi Payments and BPAY. To register for a CoinSpot account, you’ll need to provide your email address and create a password.

  Before you can start trading, you’ll also need to verify your identity to meet Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements. This means you’ll also need to supply the following:

  • Your full name and current address
  • An Australian mobile number
  • A photo of your driver’s licence, learner’s permit or proof of age card
  • A photo of a utility bill or bank statement
  • A photo of yourself holding a signed declaration

  Remember to also enable 2-factor authentication on your account for an extra layer of security.

  Go to CoinSpot's website
  

• Step 3. Choose your deposit method

  Click the “Deposit AUD” link from your account dashboard and choose your payment method – we’ll use POLi Payments for this example because these transfers are cleared much more quickly than BPAY transactions.

• Step 4. Deposit AUD

  Enter the amount of AUD you wish to deposit and choose the bank account you will be depositing the funds from. Click “Continue to POLi” and you’ll be taken to the online banking service for your chosen bank account. You can then enter your Internet banking login details and follow the prompts to confirm payment.

• Step 5. Buy BTC

  POLi Payments usually clear more or less instantly, and once your deposit has been confirmed you’ll be automatically redirected back to CoinSpot.

  You can then click the “Buy/Sell” tab at the top of the screen, find bitcoin in the list of currencies and click on “Buy BTC”. Simply enter the amount of BTC you want to buy or the amount of AUD you want to spend in the fields provided. Take a moment to review all the details of your transaction before you click “Buy BTC”.

  

• Step 6. Transfer BTC to your wallet

  Once the transaction has been processed, remember to move your bitcoin off the exchange and into your private wallet. To do this on CoinSpot, click on the “Wallets” tab and select your CoinSpot BTC wallet.

  Under the “Send Bitcoin” heading, specify the amount of BTC you want to send and then enter the address of your private wallet. Double-check that you’ve entered the correct address before you click “Send”.

  

Choosing the right exchange

There are a number of platforms to choose from when purchasing crypto with your bank account, so compare your options to see how each exchange performs across a range of key areas:

• Bank account payment methods. How can you send AUD to the exchange from your bank account: bank transfer, POLi Payments and/or BPAY transaction?
• Fees. How much will it cost you to complete your transaction? For example, POLi Payments deposits on CoinSpot don’t attract any fees, but BPAY transfers do. Remember to also consider the trading fees the exchange charges.
• Transaction limits. Are there any minimum or maximum limits on the amount of crypto you can purchase? When you want to transfer the crypto you purchase away from the exchange, what is the minimum withdrawal limit?
• Processing times. How long will it take for you to complete your crypto purchase from start to finish? For example, while POLi Payments usually clear instantly, bank transfers can take one to two business days.
• Supported cryptocurrencies. Which cryptocurrencies can you purchase directly with AUD? Some platforms will only provide access to one or two popular digital currencies while others will offer a much wider range.
• Ease of use. Does the platform have a simple and intuitive user interface that you can navigate without any problems?
• Sign up and verification. What information and documentation will you need to provide to register for an account? How long does the verification process take?
• Security features. What protective measures are in place to ensure the security of your funds? For example, does the platform support 2-factor authentication? Where are your funds stored? Has the exchange ever been hacked?
• Customer support. How can you contact the customer support team? What contact methods are supported and during what hours is the team available? Is there an online help centre where you can easily find solutions to a range of common problems?
• Reputation. Check out online forums and reviews to gauge what level of community trust the platform has. Would other users recommend it?

Answering these questions should help you narrow down your choices and find a platform that will work for you.

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Is it safe to buy crypto using a bank account?

Buying crypto with a bank account offers a safe and secure way to exchange AUD for digital currency, but only if you’re certain you’re dealing with a reputable exchange provider. With this in mind, it’s essential that you thoroughly research the credentials of any platform before transferring any funds.

You’ll need to find out the following:

• Who are the people behind the platform?
• Where is it based?
• How is it regulated and is it properly licensed?
• How long has it been in business?

Of course, if you plan on buying cryptocurrency from someone through a peer-to-peer platform, you’ll need to be certain you’re dealing with a reputable seller before transferring any funds. This is why it’s a good idea to set up the trade through a marketplace that uses some sort of reputation system and has security measures in place to protect against fraud.

From a broader point of view, you should also be fully aware of the risks associated with buying cryptocurrency before you make a purchase. Cryptocurrencies are complicated and volatile assets, so there’s a risk of losing some or all of the money you spend.

Pros and cons

Next steps

If you want to buy crypto with your bank account, the first thing you need to do is start comparing a range of cryptocurrency exchanges. Compare their features, accepted payment methods, transaction limits, fees and level of community trust to find a platform that’s right for your needs.

Compare exchanges now

FAQs

Images: Shutterstock

Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.