5 best crypto-friendly banks in US
Cryptocurrency has been gaining global traction over the past decade. It has shaken the traditional financial system. Despite acceptability reluctance from major financial institutions, the crypto metaverse is broadening daily. However, it would be best if you did not worry at all as you can still buy cryptocurrencies through banking channels; here we will discuss 5 best crypto-friendly banks in US.
As of early 2022, the cryptocurrency market’s capitalization value reached $3 trillion, a number that financial institutions cannot ignore. Subsequently, many front-running institutions, including banks, started trading cryptocurrencies.
Additionally, several banks in the U.S still shy away from trading cryptocurrency due to its high volatility nature. In essence, it is also a regulatory issue. Since cryptocurrency destabilizes the dollar-based baking system, it is challenging to find crypto-friendly banks.
Lets discuss about 5 Best Crypto-Friendly Banks in US.
Through Quontic, you can avail services of a conventional bank, including online payments, electronic transfers, and mobile check deposits.
It is a New York-based digital bank with more than 90,000 ATMs throughout the U.S. additionally, it provides the first ever Bitcoin Rewards account, where you can easily store your earnings through bitcoins and other cryptocurrencies.
Quontic provides 1.5% Bitcoin on eligible debit card purchases instead of making a cashback. It appreciates your digital currency bank balance.
You can easily open an account with Quontic with a minimum amount of $500. Further, there is no minimum fee requirement. Additionally, your rewards never expire as long as you keep them in your account.
Ally operates in the conventional banking sector and offers financial services, including B2B lending, auto, home financing, and corporate finance.
In addition, Ally has increased its working and allows its customers to link their accounts to Coinbase, a famous crypto exchange. Once you have linked your Ally account with Coinbase, you can easily trade cryptocurrencies.
Further, users can buy cryptocurrencies through their debit and credit cards. Ally is user-friendly, and new investors can easily find their way into the crypto market.
Bank of America
Bank of America is amongst the largest banks and one of the 5 best crypto-friendly banks in US.
Although currently, it does not allow direct investment in Cryptocurrency. However, one of its subsidiaries – Merrill Edge, dealt in electronic trading and was launched in 2010. In addition, Bank of America’s customers can easily invest in ETFs (exchange-traded funds) that are part of crypto-economics.
The finest example of a blockchain ETF to come out of Merrill Edge is First Trust Index Innovative Transaction & Process Fund (LEGR). It tracks tech-related crypto companies like AMD, Baidu, Oracle, and IBM.
Furthermore, the Bank of America has appointed its head of digital trading, which indicates that the bank will expand its operations to include a cryptocurrency exchange portfolio in its services.
JPMorgan Chase is based in New York City. Traditionally it is involved with conventional banking services.
However, recently it has allowed its customers to connect their accounts with the Coinbase exchange to trade cryptocurrencies.
Moreover, JPMorgan Chase introduced their coin called the JPM Coin to facilitate international transactions. To improve the cryptocurrency experience for its wealth management clients, Chase launched a Bitcoin fund in August 2021.
Similarly, Chase offers Grayscale and Osprey Funds options across multiple platforms to improve wealth management. However, private banking clients can avail of this facility through the NYDIG fund.
Lastly, BankProv is among the 5 best crypto-friendly banks in the US. It offers full-service USD banking products surrounding crypto natives.
BankProv is amongst the oldest banking institution that recently started trading cryptocurrencies through its diverse banking network. Several crypto-related facilities are available on offer by Bank Prove, including custom API solutions, secure cash vault, crypto business, and crypto-backed loans.
However, BankProv asks new customers to provide their full details before opening a new account for cryptocurrency transactions. In addition, it offers its clients fully insured USD deposits against crypto coins.
How to Choose a Crypto-Friendly Bank
As you now know 5 best crypto-friendly in US; however, it is vital to consider a few factors which decide the friendliness of the banking sector with cryptos.
Before selecting a bank for crypto-related transactions, here are a few crucial points to consider.
- Consider selecting a bank that has the lowest conversion fees. Since you are required to convert your fiat money to crypto, thus the most down conversion means high coins in your wallet.
- Look for a bank that offers multi-currency accounts. You would want to avoid being stuck with only one or two currencies trade.
- Always select a bank that operates in a large number of countries.
- Make sure to choose your cryptos before selecting a bank, as currently, many crypto-friendly banks only deal in some cryptocurrencies.
- Prefer a bank integrated with a crypto exchange, as it will save you time and money for making crypto transactions.
Frequently Asked Questions
Does Citibank allow crypto purchases?
Citibank allows crypto purchases and treats them as cash advance transactions, just like other credit card issuers.
What are the risks of not using a crypto-friendly bank?
A few risks associated with using a non-crypto-friendly bank include:
- You may have to provide a source of income
- High commission fee
- Limited acceptability
- You may lose your existing bank account
What makes crypto-friendly banks better?
Crypto-friendly banks offer integration for their customers to trade cryptos easily. Similarly, many banks have developed apps to serve their customers so that they can transact cryptos from the comfort of their homes.
Can I take a loan against crypto coins?
Yes, you can take a loan against crypto coins. However, banks only consider a few leading coins for offering loans, like bitcoin.
How can I open a bank account for cryptocurrency?
It is similar to opening a conventional account. You need to fill out bank documents and provide proof of your identity. One account is open, and you can easily trade cryptocurrencies through banking apps integrated with crypto exchanges.
That concludes our take on the 5 best crypto-friendly banks in US guide. Despite high volatility, many leading banks have developed integrated partnerships with leading crypto exchanges to facilitate trade. However, it is a developing mechanism, as we may see developments down the line.
In addition to easy and fast transactions, crypto-friendly banks allow customers peace of mind as their vast networks are highly safe and secure. However, banks may charge high commission charges, so always check their costs before making a transaction.
Even though selecting the right bank for the crypto business may seem challenging, the ones discussed here are worthy of a try. So do check them and share your experience with us.
Remember to leave your feedback in the comments section.