The Best Crypto Banks to Store and Use Your Cryptocurrency

eToro is one of the most popular retail and crypto trading platforms online, supporting 120+ cryptocurrencies and able to process the exchange of 500+ cryptocurrency pairs within the eToro wallet. With over 27 million active users, it’s fast becoming one of the go-to platforms for first-time crypto traders and investors.

My Overview

I like eToro a lot as a crypto investor. I like the fact, you can transfer crypto assets housed within an eToro Money crypto wallet to an external wallet. The only downside for me is the wallet itself, which is a custodial one that doesn’t give you access to its private keys.

Robinhood has supported the buying and selling of cryptocurrencies on its platform since 2017. Currently, Robinhood users can buy and sell over 35 cryptocurrencies with U.S. dollars at some of the lowest average costs.

My Overview

I think Robinhood is a particularly good crypto-friendly bank if you’re U.S. based. It’s a fully regulated U.S. institution, offering a one-stop-shop for buying and selling Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and a few more altcoins. It’s good to see commission-free crypto trading offered here, but the Robinhood Crypto account houses assets within a custodial account like eToro, which is a downer in my opinion.

Wealthsimple Crypto is one of the fastest-growing fintech companies in the world. Launching in 2014, this Canadian platform is now widely available in the U.S. and the UK. Bitcoin and Ethereum have been available to trade since August 2020 in Canada, but the platform has since expanded to multiple altcoins like Dogecoin, Polygon, and UniSwap.

My Overview

Unfortunately, the Wealthsimple crypto trading function is only open to Canadians, not those in the U.S. or UK. Although no commission is charged, the spread is higher than those offered on peer-to-peer crypto exchanges like Coinbase. It also uses a custodial wallet, overseen by Gemini Trust Company, with no opportunity to take full custody of the wallet.

Cash App proudly markets itself as one of the easiest ways to buy Bitcoin. Owned and operated by leading fintech giant Square, Cash App makes it easy to drop BTC into private crypto wallets, without the need for using a custodial wallet.

My Overview

I think Cash App is a great platform for simplifying the Bitcoin banking space. It’s easy to buy and sell Bitcoin – and there are even opportunities to trade traditional equities within the Cash App platform. You can also move Bitcoin into private wallets, while the Cash App Cash Card is easy for me to sell Bitcoin immediately for USD and get access to the cash via my nearest ATM.

Revolut is a popular challenger bank, serving in the UK, U.S., and much of Western Europe. With Revolut, cryptocurrencies are embedded and treated the same way as any fiat currency asset.

My Overview

Revolut is another big winner in my eyes, allowing you to take multiple positions on cryptos at a touch of a button. Funds generated by selling cryptocurrency for USD can be spent directly via the Revolut debit card. The Revolut mobile app also allows you to monitor real-time prices on the go. It’s FDIC-insured too and boasts an award-winning anti-fraud platform, which gives me peace of mind.

WeBull is an online broker which offers support for trading cryptocurrencies, as well as stocks, options, and ETFs. Users can invest in Bitcoin and at least 16 other altcoins, including Dogecoin, Litecoin, UniSwap, and Stella Lumens.

M1 Finance is known by many as a banking “super app”, capable of combining equities, ETFs, IRAs, credit cards, and much more. Within M1 Finance, you’ll have direct access to buy into crypto-focused stocks such as Microstrategy, COIN, and more.

Like M1 Finance, Questrade welcomes retail traders buying into crypto-focused equities. In fact, Questrade offers its own pre-built crypto stock portfolios for retail investors to buy into for those passionate about crypto’s future. Trades can also be placed on crypto stock portfolios commission-free.

MoonPay is one of the simplest on-ramps for buying cryptocurrency using fiat currency like USD or CAD. There are application integrations for businesses which make it possible for them to accept crypto payments for goods and services. Typical fees start from 1% plus crypto network fees, but the platform sets a maximum fee of 4.5% plus crypto network fees.

What Makes a Good Crypto Friendly Bank?

Let’s run through the core features that make the best crypto-friendly banks stand out from the crowd to crypto adopters.

Ease of use for customers

One of the main bugbears of buying and selling cryptocurrency is an inadequate or confusing user experience. Cryptocurrency payments are irreversible transactions, and so it’s never been more important to ensure assets are sent to the right wallet.

If someone loses their private keys, gets hacked, or simply sends funds to the wrong wallet address, it can be almost impossible to retrieve funds and restore security to their crypto wallet. That’s why many of the best crypto-friendly banks opt to take custodianship of their customers’ crypto assets.

By handling the private keys of your custodial wallet, you’ll never have to worry about putting your private keys in the hands of cyber-criminals. The best custodial wallets have an intuitive platform, allowing users to buy and sell crypto assets and transfer between fiat and crypto balances.

Security is always a priority

We place huge importance on the security of your crypto assets and your personal data. You should look for banks which implement robust encryption protocols and two-factor authentication (2FA) to safeguard accounts from unauthorized access.

It’s equally important to make sure that your chosen banks meet regulatory guidelines for crypto transactions, including anti-money laundering (AML) and Know Your Customer (KYC) policies.

Banks with transparent policies, strong insurance and cold storage solutions can also offer more peace of mind, minimizing the risk of being a victim of asset theft or cybercrime. Look into your chosen bank’s history and make sure they’ve not been involved in severe hacking incidents which may indicate inadequate security controls.

Banks have to be reliable

Reliability is another hallmark of a crypto-friendly banking institution. A reliable crypto-friendly bank will have a proven track record of uptime, quick transaction times, and secure handling of crypto assets.

Look out for banks that offer transparent, 24/7 customer support and are regulated and licensed in the jurisdictions which cover your region.

Innovation: Additional features for convenience

What makes the best crypto-friendly banks? It’s not just the basics like low transaction fees and secure logins.

First and foremost, look for decentralized finance (DeFi) integration. Some banks connect direct to DeFi platforms, offering the chance to stake your crypto assets and generate yields.

Some banks may also encourage crypto investors to leverage their assets as collateral, securing loans in traditional, fiat currencies. Both features are another way of helping crypto natives to extra maximum value from their holdings.

Native App: Banking on the go

There’s no two ways about it, we live in a 24/7 connected world. Thanks  to our mobile devices, we can stay in touch or keep tabs on information at the tap of a smartphone screen.

The mark of a good crypto-friendly bank is one with a native mobile app, allowing users to complete cryptocurrency transactions through native iOS or Android applications in a secure and stable environment. Before picking a crypto-friendly banking platform, be sure to check reviews of their native apps to ensure they have positive feedback.

Enticing rewards and benefits

It’s also worth looking for a crypto-friendly bank which rewards customers for holding their assets with them. They may be able to accrue interest or rewards on their crypto. This could be anything from rewards on a debit card associated with the crypto bank to the ability to earn interest on your Bitcoin or staking rewards on leading altcoins.

Wide- spread availability

Since the regulation of cryptocurrency remains uncertain, it’s still difficult to speak with any certainty over the availability of certain crypto-friendly banks in your region. For now, make sure to monitor the latest legislation surrounding cryptocurrency in your nation and focus your attention on crypto-supported banks and apps which can operate legally in your region.

Agility Between Crypto and Fiat Currencies

Although cryptocurrency is being used more widely to pay for goods and services, the reality is that you’ll still need to use some fiat currency. Therefore, it’s important to be fluid between your usage of crypto and fiat currencies. If you’re likely to be splitting your spending between crypto and fiat currency, make sure your nominated crypto bank account makes it easy to move to and from USD, CAD, GBP, and other major fiat currencies.

• M1 Finance vs. Robinhood
• Wealthsimple vs. Questrade
• Cash App vs. Robinhood
• Robinhood vs. WeBull