What is a bitcoin bank account or bank account for crypto? This is a common question we are often asked. In short, it is a new concept that allows people to access bitcoin banking services. Bitcoin banks operate in a similar way to traditional banks. They allow you to invest, exchange or even earn interest over the Bitcoin you own. You can also buy Bitcoin with a bank account.
Bitcoin banks can take deposits, lend them to other customers, enable you to buy bitcoin and earn interest in once account. In this review, we will look at the growing Bitcoin banking industry and the bitcoin bank accounts we think are worth it.
Bitcoin Bank Reviews Summary
- We believe that the best ones out there are Nuri if you want to earn interest on your Bitcoin or to hold your own private keys.
- If you prefer to just virtually own Bitcoin (and not be the real owner), you could choose Revolut.
- OnJuno allows you to have a checking account with USD and cryptocurrencies.
- Yet another good option is BlockFi if you want to generate interest, however it does not come with a bank account in the traditional sense.
In other articles, you can find our take on the crypto industry in general. Here you can also discover more information about the origin of bitcoin and how the industry has changed over the years.
What is a Bitcoin Bank Account?
A typical Bitcoin bank account is a bank account where you can have a bitcoin account in addition to your normal currency account. The bank account comes with a ordinary bank account number, so that you can transfer your euro, dollars, or whatever currency you have to your bank account. In addition you can then exchange your currency on that same account, and hold you Bitcoin or have it transferred to your own private wallet.
There exist different implementations of this model. There are custodial services and private wallets. At some Bitcoin bank accounts you can even choose between the two (such as is the case with Nuri). Yet other bitcoin bank account provide you the option to virtually own Bitcoins but not physically (like Revolut, Neteller and Paypal). These are good for investing, if you are not interested in owning.
A bitcoin bank account is something else than an exchange. At an exchange you buy and sell Bitcoin, and have it transferred to your own wallet or keep it on the exchange (which is not recommended).
Bank Account Providers for Bitcoin
Not all bitcoin bank accounts are as good. And they all give you different options as well. Here are the Bitcoin bank accounts you should consider.
Nuri Bank (Formerly Bitwala Bank)
Nuri is great for European citizens. Nuri (formerly known as Bitwala) is a German online bitcoin bank whose account holders save, withdraw, and exchange fiat currencies and crypto such as bitcoin. It has one of the best bank accounts for cryptocurrency. You can open a Euro bank account that comes with a Visa card, as well as a Bitcoin savings account to automatically buy Bitcoin and a hosted Bitcoin interest account. With the later you can earn interest over the amount of Bitcoin you give to their lending partner.
- Nuri has a Bitcoin wallet where you can send and receive bitcoin. You have your own private bitcoin address. You can also choose if you want to have a custodial or non-custodial service, meaning if you want to have your own Bitcoin wallet or a managed wallet.
- To sign up for Nuri you must be a resident or passport holder of any of the countries of the European Economic Area or Switzerland. Nuri signup is free of charge.
Fidor Bank Bitcoin
Fidor Bank is another German bank that offers bitcoin banking services to its customers. The bank is serving customers from the European Economic Area (EEA), Singapore, Switzerland and Abu Dhabi. Fidor’s current account holders can buy and sell bitcoin via Kraken.com and Bitcoin.de express trading. It’s an excellent choice if you need to own your own wallet but yet want to exchange your currency fast to/from an exchange.
Revolut is British online bank that supports bitcoin investing and other cryptos such as Ether, Litecoin, and Bitcoin Cash. You can open Revolut bitcoin account if you are a resident in these countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, the United Kingdom, Australia, Canada, Singapore, Switzerland, and the United States.
- Revolut allows you to receive cryptocurrencies sent by another Revolut user. This means you can transfer Bitcoin to a bank account within Revolut network. You cannot receive crypto sent from external wallets. This means can buy, sell, exchange, and transfer only within the Revolut platform.
- As in contrast to Nuri and Fidor, at Revolut you cannot physically own the Bitcoin. Therefore, you cannot move your Bitcoin from Revolut cryptocurrency wallet to an external wallet, unless you are a Revolut Metal customer in the UK. This comes with a cost of £12.99 a month.
Xapo crypto bank account is a virtual account that allow account holders to open USD and bitcoin accounts that come with Xapo debit card (Visa and Mastercard). Xapo debit card is a bitcoin debit card. The card supports both cryptocurrency and fiat money functions.
The company was started in 2012 and it is regulated by the Gibraltar Financial Services Commission (GFSC). Customers’ deposits are protected up to the US dollar equivalent of €100,000 by the Gibraltar Deposit Guarantee Scheme. Xapo charges an upfront annual fee of $150 for their premium service.
BlockFi Bitcoin Bank Account
BlockFi offers four services. It offers a BlockFi interest account, where customers can earn interest by saving their crypto. This is a service that works in a similar way to a bank. The interest account service is available in any country that is not sanctioned by the U.S., the U.K. or the European Union. BlockFi also offers crypto backed loan service. This is how it makes money. It extends credit to people who own bitcoin. These people in turn pay back the money with interest.
BlockFi also offers a trading platform, where people can trade in various cryptocurrencies. Finally, the company serves big institutional investors by offering them custodial services. In other words, BlockFi works as a real bank.
OnJuno is a crypto banking solution that provides a checking account for USD and cryptos in the United States. This means you can manage cryptocurrency and fiat currency in a single account. You can also buy crypto with a bank account from as low as $1. At the moment, you are only able to buy, sell, hold, send and receive Bitcoin and Ethereum if you subscribe to OnJuno Metal plan.
Interesting features of OnJuno include earn a 1.2% bonus rate at the end of every month, the option to receive part of your paycheck in crypto and $0 monthly maintenance fee.
BankProv is a US bank that used to be known as The Provident Bank. The bank offers USD accounts for cryptocurrency businesses. Using its ProvXchange feature, your business can make real-time payments with other BankProv clients. The account enables you to make both fiat and crypto deposits. It also offers crypto backed loans through partnership with Anchorage Digital.
US cryptocurrency businesses that can benefit from BankProv crypto friendly banking feature are crypto investors, cryptocurrency exchanges, miners, crypto software developers, and Bitcoin ATM companies. BankProv customers are protected by unlimited insurance for deposits through the Depositors Insurance Fund (DIF) while FDIC insures each depositor to at least $250,000.
The small business checking account has no deposit requirement. However, there is a $50 monthly fee. The fee is waived for the first month.
Crypto Bank Review Summary: Are Bitcoin Bank Accounts Safe?
The concept of Bitcoin bank account is relatively new. It is also a relatively easy concept, where you deposit bitcoin as collateral for crypto backed loans to borrow the fiat equivalent. You should ensure that you do a lot of research before you open one. Don’t rush to deposit money in a company you have just seen advertising. In short, read the “boring” terms and conditions carefully.