We are aware of the hype about cryptocurrencies and how it is evolving. Realizing the fact that cryptocurrencies will be staying around and used generally for everyday purposes, with crypto-friendly banks assuming some important role.
Therefore, traditional banking had no choice but to embrace cryptocurrencies to some extent. In this article, we have tried to cover the detailed insights about the crypto-friendly banks and what they exactly aim at providing. Read the complete article to be aware of the best selection of the top 5 crypto-friendly banks for you that would help you immensely in the future.
Summary (TL;DR)
- The best crypto-friendly banks are Nuri, Bankproc, Revolut, Wirex, and Ally bank.
- Nuri is a registered and licensed German bank that provides a seamless banking experience as well as immediate Bitcoin and Ethereum access.
- The objective of Bankprov is adaptive digital banking technology that enables crypto payments, renewable energy, financial technology, and commercial value loans.
- Revolut is another early adopter of crypto banking services, and it’s a simple way to get exposure to some of the most popular cryptocurrencies.
- Wirex is a cryptocurrency trading platform with a cutting-edge mobile app and a next-generation, allowing users to purchase a wide range of popular cryptocurrencies with ease.
- Customers can link their Ally Bank accounts to Coinbase, a cryptocurrency exchange platform, in the same way, they would link an external bank account.
Investing in Cryptocurrency
Cryptocurrencies are decentralized, meaning that no government or bank has influence over how they are created, valued, or traded. Furthermore, all crypto exchanges are secured by cryptography, which ensures that only the sender and intended message recipient may read the contents.
Investing in cryptocurrency necessitates thorough study and the confidence in your investment to ride out what is going to be a turbulent journey. However, the payout could be worthwhile if you can achieve that, as predicted returns are higher than those of most other asset groups.
Also read, Investor’s Guide to Crypto
What is a Crypto-Friendly Bank?
A crypto-friendly bank refers to those banks that support cryptocurrencies like Bitcoin, Ethereum, and others. These forward-thinking banks will either be integrating cryptocurrencies straight into their online banking websites or have already done so. Moreover, while some banks have previously rejected Bitcoin transactions, more banks are now adopting a more open attitude toward this new technology, merging cryptocurrency and normal banking activities into the same interface.
1st Crypto-Friendly Banks: Nuri
What is Nuri?
Nuri, formerly known as Bitwala, is a regulated and registered German bank. It was created in 2015 and is open to the European Economic Area inhabitants. Further, it has been a popular alternative among many modern investors who want to mix traditional fiat money with cryptocurrency assets. Nuri bank is a fully secured digital bank in Europe.
Moreover, it is supported by many top-tier venture capital firms worldwide, including Earlybird, Digital Currency Group, Alstin Capital, Global Brain, and HTGF, making it a secure platform for both crypto and fiat. They also provide a mobile application for both Android and iOS devices.
Nuri Services
- Nuri Debit Card: A debit card is available to all Nuri account customers. Nuri is a Euro-denominated debit card that can be used anywhere Visa is accepted. With this card, you’ll be able to make free ATM withdrawals all around the world.
- Nuri Wallets & Vaults: All Nuri account users have access to Nuri Wallets and Nuri Vaults, which are two types of Nuri-supported cryptocurrency wallets.
- BTC Interest Account: Nuri also provides a Bitcoin interest-bearing account (BTC).
Pros and Cons
| Pros | Cons |
|---|---|
| In the United Kingdom, all functionalities are available. | Only EUR deposits and withdrawals are accepted (no GBP). |
| German-regulated bank with deposit insurance of €100,000. | For all accounts, video identity verification is necessary. |
| You can get paid interest on your Bitcoin (BTC) investments. | Only a few cryptocurrencies are supported (only BTC and ETH). |
| Nuri is compatible with both custodial and non-custodial wallets. | Higher BTC interest rates can be found elsewhere. |
Also read, Different Types of Crypto Wallets
2nd Crypto-Friendly Banks: Bankprov
What is Bankprov?
BankProv, formerly known as The Provident Bank, is one of the oldest banks in the United States, dating back over 200 years. BankProv is a publicly-traded corporation under Provident Bancorp Inc., which in and of itself may provide some level of security.
Although BankProv offers personal accounts, their commercial prospects are more prominently highlighted. In addition, the fact that BankProv has its cryptocurrency division makes it crypto-friendly. They also offer a mobile application for both iOS and Android devices.
Bankprov services
- API banking: You’ll always have access to your personal information. They’ve also teamed up with Anchorage Digital to offer cryptocurrency-backed loans
- ProvXchange Network: Quick transactions inside BankProv’s client network.
Pros and Cons
| Pros | Cons |
|---|---|
| An attractive dividend is available for account balances of $250,000. | On accounts under $50,000, no interest is paid. |
| There are no monthly service fees. | Deposits must be made by wire transfer. |
| Unlimited Deposit insurance. | BankProv crypto bank offers only seven cryptos. |
| The Online application is simple to complete. |
3rd Crypto Friendly Banks: Revolut
What is Revolut?
Revolut bank is a cryptocurrency-friendly e-bank. The bank first opened its doors in 2015, and it is now solely open to inhabitants of European countries. It was created to provide better money management services. Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash are among the five major cryptocurrencies that may be exchanged through Revolut. In addition, these cryptocurrencies can be exchanged for fiat currencies. As a result of this feature, it is a more trustworthy crypto-friendly bank.
You can create a Revolt bank account on the website with your cell phone. It only takes a few minutes to open a Revolut account. On the site, you may see real-time bitcoin graphs. In addition, it displays price notifications and actual rates, allowing you to keep track of the cryptocurrency market.
Revolut services
- Revolut Card: It works by providing you with a genuine exchange rate instead of relying on brokers or exchanges that provide poor exchange rates.
- SWIFT: The SWIFT system has been the de facto norm for international money transfers.
- Revolut Junior: For a child aged 7 to 17, a Junior Revolut account can be opened.
Pros and Cons
| Pros | Cons |
|---|---|
| It can be topped up in and held in many currencies. | Due to security concerns, customer accounts may be temporarily locked. |
| There are a variety of premium subscription levels available, each with its own set of benefits (e.g. travel insurance) | Although it has a banking license, it has no current accounts. |
| Revolt bank app is available for both Android and iOS devices. | Revolt bank customer service is lacking. |
4th Crypto Friendly Banks: Wirex
What is Wirex?
Wirex is a financial services company in the United Kingdom created in 2017 and registered with the Financial Conduct Authority. To be more specific, Wirex is a financial institution that provides payment instruments, not a bank.
Customers can send both digital and traditional money worldwide via Wirex, which provides them with a bitcoin wallet account. In addition, their bank accepts 18 different traditional and digital currencies, including Bitcoin, XRP, and Ethereum.
Furthermore, Wirex offers its users an instant trading platform to trade cryptocurrencies for fiat currency at a current exchange rate and vice versa.
Wirex services
- Wirex card: it is Wirex’s most distinguishing characteristic. Instead of withdrawing your cryptocurrency and converting it to fiat at your bank, you can use the Wirex card at any store.
- Wirex wallet: Wirex does feature an electronic wallet. This is where you keep your on-site assets and fiat money, and it’s where your Wirex card gets its cash from when you use it to make transactions.
Pros and Cons
| Pros | Cons |
|---|---|
| Send quick notifications about your card. | The benefits offered by this card are modest. |
| Multisignature addresses are used to store cryptocurrency funds in cold storage. | To gain the most perks and rewards, users must stake a Wirex token. |
| Multi-currency payment card and all-in-one crypto exchange | As of now, it is not universally acknowledged |
| When trading cryptos and forex, spreads are kept to a minimum. | Exchanging bitcoin for fiat currency has high fees. |
| Wirex app is available for both Android and iOS devices. |
5th Crypto Friendly Banks: Ally Bank
What is Ally Bank?
There are a lot of people in the United States that are interested in bitcoin trading. Ally Bank developed as a solution that could both leverage regular banking and crypto banking services to meet their worries and help them relieve their load. The bank and its services are entirely licensed by US legislation, and they cater to massive bitcoin exchanges such as Coinbase. Furthermore, Ally Bank is a complete digital platform with online help available 24 hours a day, seven days a week.
Ally bank services
- Checking account: A single checking account is available from Ally Bank. It has a tiered interest rate structure on its competitive Interest Checking account.
- CDs: Ally Bank offers three different types of CDs as well as a handful of bump-up CDs and a no-penalty 11-month CD.
Pros and Cons
| Pros | Cons |
|---|---|
| No monthly maintenance fees or minimum balance requirements for checking, savings, or CD accounts. | No way to make a monetary deposit. |
| With a checking or money market account, you’ll have access to over 43,000 free ATMs. | |
| Ally app is available for both Android and iOS devices. |
Conclusion
A number of forward-thinking banks are eager to embrace new trends and provide crypto services to their customers. Of course, traditional banks will offer crypto-related services in the future, especially if more regulatory clarity becomes available. You can, however, use the crypto-friendly banks listed in this post to service your customers, make deposits, and lock in your gains without fear of an account freeze.
Banks will confront tough competition from other firms encroaching on their domain, and they will become obsolete unless they adapt to new circumstances.
Frequently asked Questions
Is it true that if I deposit cryptocurrency into my bank account, it will be automatically converted to fiat currency?
Most bank accounts still do not allow you to “deposit crypto.” On the other hand, some crypto-friendly banks will allow you to deposit bitcoin and possibly a few other cryptocurrencies. Furthermore, these banks can automatically convert any crypto deposits into local fiat cash.
Is Wirex legal in my country?
Wirex is currently available in most major nations, including the United Kingdom, Switzerland, Luxembourg, and Hong Kong. However, Wirex’s services are not available in the United States, for example.
What are the dangers of not banking with a cryptocurrency-friendly bank?
A few concerns are associated when a bank discovers transfers from cryptocurrency exchanges, such as buying crypto or transferring it to cryptocurrency exchanges. Your bank may next request that you explain the source of your funds and the purpose of the cryptocurrency purchase in detail.
Also read,
