How to Open a Bitcoin Bank Account


Although still far off from mass adoption by traditional banks, Bitcoin bank accounts are becoming more and more common. In many cases, traditional banks will not let you open a bank account with BTC but instead, link your account to a crypto trading platform. However, some online and other newer banks have come to market that allow people to store their Bitcoin, but without FDIC protections.

It’s tough storing your dollars or preferred fiat currency under a mattress, but that becomes even more complicated with digital assets like Bitcoin. Instead, you could get a “cold wallet” on a USB and stick it under your mattress. Luckily, you don’t need to put USBs with Bitcoin under your mattress, as there are many options for storing your Bitcoin. If you are looking for a Bitcoin bank account, we’ll help you understand your options, which are expanding over time.

How to open a Bitcoin bank account

If you want to trade Bitcoin, the first order of business is to go to any cryptocurrency exchange website, such as Kraken, Coinbase, or Bit Stamp. You will receive a verification code in your email and follow those directions. You can then start depositing funds immediately. If you want a Bitcoin bank account in a more standard bank, that can be complicated. However, more options are emerging all the time.

Can I open a Bitcoin bank account in a regular bank?

The short answer to this is yes, but it might be hard to find a bank that offers this service, and it could look a little different than a traditional bank account. Is a Bitcoin bank account legit? As Bitcoin is unregulated, traditional banks will not offer FDIC protection of up to $250,000 as they would if you were to hold U.S. dollars in an account. However, many digital and online banks now offer Bitcoin bank accounts, and even traditional banks are beginning to delve into the industry. A Bitcoin bank account at your local Wells Fargo or Chase branch might be closer than you think.

Bitcoin bank accounts in the U.S.

Here are some of the banks that offer cryptocurrency accounts.

Wyoming Charter Banks

Wyoming created a charter in 2019 that enables crypto-based companies to become a special type of bank called a special purpose depository institution. Three crypto banks with this charter include Kraken, Avanti, and Custodia. These crypto banks can hold customers’ dollars as well as crypto but can’t lend money like traditional banks.

Vast Bank

This bank lets customers buy, sell, and hold cryptocurrency in an account alongside regular bank accounts. It is federally regulated and has FDIC insurance for its U.S. dollars, but any government entities do not insure the crypto. Vast Bank is a brick-and-mortar bank located in Tulsa, Oklahoma.

Pro Tip

NCR Corp enables 650 U.S. banks to offer Bitcoin purchases to an estimated 24 million customers. This includes community banks and credit unions that will be able to offer cryptocurrency trading through mobile applications. They are trying to provide a Bitcoin bank platform to more and more banks to help them legitimately create a Bitcoin bank.

Ally Bank

Ally is an online bank that allows you to buy and store crypto. However, it does not allow you to trade crypto. If you want to gain exposure to trading crypto, Ally offers other options for investing, such as their offerings of the Grayscale Bitcoin Trust. These brokerages can help you find more options for investing in crypto.

Are Bitcoin bank accounts becoming more prevalent?

The answer to this is yes, at least so far. In fact, when the SEC filed its complaint against Coinbase, in regard to treating cryptocurrencies as a security, it made sure to say, “All cryptocurrencies are securities with the EXCEPTION of Bitcoin. This means that from a regulatory standpoint, it looks like, among all the cryptocurrencies, Bitcoin is going to be treated differently. But what does this mean for banking? Caspar Sauter, co-founder of D8X, sees more growth for cryptocurrencies ahead. “Within the next few years, banks will offer digital asset banking services that go far beyond simply Bitcoin accounts,” he says. “Swiss banks such as Sygnum already offer such services today for a variety of cryptocurrencies. With increased regulatory clarity due to MiCA in the European Union, other European banks are likely to follow suit.”

We also spoke to Ishan Bhaidani, the founder of SCRIB3. “Yes, Bitcoin bank accounts are definitely a thing of the future. But it’s more likely that Web3 crypto wallets will emerge as primary mediums of transaction where banks are obsolete,” he says. “Take an example like Coinbase. Is Coinbase a bank? Coinbase certainly has many features like a bank for Bitcoin: Bitcoin Debit Cards, Bitcoin loans, Bitcoin purchases and sells. But what I think we are more likely to see is the emergence of an all-powerful financial services platform.”

What is the Bitcoin Bank trading bot?

Bitcoin Bank is not an actual bank; it’s a Bitcoin trading bot, according to its website. This is not to be confused with a bank account, and Bitcoin Bank reviews seem to be mixed. One review says that the Bitcoin Bank team is really good, but the service can sometimes lag. Other Bitcoin Bank reviews are more of a mixed bag.

  • There are also competing “trading bots” and trading services that compete with Bitcoin Bank. Valio revolutionizes trading by connecting traders to capital in a secure, non-custodial marketplace. For traders and asset managers, Valio offers the chance to trade on behalf of others and build a track record that increases returns and trader recognition. Created by market leaders at OpenHedge and Premia, Valio is set to launch on LayerZero with integration on Arbitrum and GMX.
  • Another crypto trading protocol is Delorean Exchange. The Delorean Exchange is a yield swap protocol on Arbitrum for buying and selling future yields with user-specified terms. Sellers receive tokens upfront, while buyers get access to yield without exposure to fluctuations in the price of the underlying tokens.

Pro Tip

With Bitcoin, start small. Bitcoin is not regulated as of yet, meaning there are many unregulated brokers, and until it’s regulated under FDIC, there is no way to make a Bitcoin bank 100% safe. If you are considering opening a Bitcoin bank account, opening an exchange account, or making a bank transfer to an exchange, start small. If you want to actively trade Bitcoin, opening up a demo account to do some demo trading is the smart move. Remember, in the world of cryptocurrency, don’t spend what you can’t afford to lose, even with a Bitcoin bank account.

Cryptocurrency (decentralized) vs. Traditional banks (centralized)

Traditional banks

Traditional banks are what most people use to hold their fiat currencies, such as United States dollars (USD) or British pounds (GBP). Obviously, people trust their fiat currency and traditional banks, but there are some limitations with traditional banks.


Here are some of the benefits and drawbacks of traditional banks to consider.

  • FDIC insurance. The FDIC covers up to $250,000 of depositors’ money per bank. You can make claims for that money, but you cannot make Bitcoin bank claims.
  • Easy to access and utilize. You can swipe a debit card or write a check with traditional bank accounts. This might happen with Bitcoin bank accounts but will require a lot of Bitcoin bank work.
  • Currency is stable. Unless you are dealing in Argentinian pesos, a U.S. dollar-based bank will provide much more stability as the USD is much more stable than Bitcoin.
  • Central bank involvement. It can be affected by central bank policies, which can cause inflation.
  • Fees and slow transaction times. Traditional banks are notorious for having high fees, and the transaction time is not instantaneous.
  • Technology limitations. Unfortunately, most traditional banks are not prepared for massive changes in technology. Banks that offer Bitcoin bank accounts might be able to change more quickly.

Bitcoin and cryptocurrencies

Bitcoin is a new exciting option but can be riskier than traditional currencies.


Here are some of the benefits and drawbacks of cryptocurrencies to consider.

  • Decentralized. The decentralized nature of Bitcoin and cryptocurrencies mean that they are not beholden to central bank governance and monetary policy. Many say this is what will separate Bitcoin as a store of value in the future.
  • Accessibility. Anyone can purchase Bitcoin, even with an anonymous wallet. In the cases of traditional banks, they will always require an official I.D. such as a passport or driver’s license.
  • Portability. Cryptocurrencies are very portable and can be sent and received instantaneously. Traditional banks using the SWIFT system or a domestic transfer can sometimes take a good amount of time.
  • Security concerns. As a digital asset, Bitcoin is able to be hacked and stolen much easier than fiat currency. However, law enforcement has become much smarter about being able to track stolen Bitcoins via a public ledger.
  • Usability. You can write a check for U.S. dollars, but you cannot write a check for BTC. Bitcoin’s lack of usability and adoption is a problem.
  • Lack of protection. The FDIC does not insure Bitcoin, meaning that all crypto in your wallet is at risk. Even the banks that offer Bitcoin bank accounts that also have dollar accounts only offer protection on the dollar accounts.


How much money do I need to open a Bitcoin account?

You can open up an account on an exchange like Kraken and start trading with as little as $10. Traditional banks that offer Bitcoin bank accounts are few and far between, but if you find one, the minimum opening amount will depend on the bank.

How much can Bitcoin $100 buy?

As Bitcoin prices fluctuate, the answer to this question changes all the time. But recently, it has been quite a lot. For example, in August of 2023, 100 Bitcoins were equal to almost $3 million.

How much does it cost to cash out Bitcoin?

Any time you cash out Bitcoin, you will need to pay either a flat fee, or the exchange will likely take part of the margin as a fee, as they do with all crypto assets.

Can Bitcoin be used as a bank account?

No, you either need a bank account or a wallet either on or off an exchange to hold Bitcoin. You should never store Bitcoin somewhere and expect it to act as a bank account. Bitcoin itself should never be used to store your money as you would in a bank. Instead, it should be treated as an investment that can swing in either direction.

Key takeaways

  • Although still far from mass adoption by traditional banks, Bitcoin bank accounts are becoming more and more common.
  • Bitcoin is unregulated and, therefore, completely uninsured by the FDIC. Although some banks have created Bitcoin bank accounts, the money is not safe and is subject to crypto volatility.
  • Fiat currency held in traditional bank accounts has downsides as well, such as money being eaten by inflation due to central bank politics, as well as transaction time and fees.
  • Few traditional banks offer Bitcoin bank accounts. But some, such as Vast, and some online banks have taken the plunge and now offer Bitcoin bank accounts.
View Article Sources
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  2. Kraken Will Be First US Crypto Bank. Here’s Why It Matters – Decrypt
  3. Fiat Currency: Understanding the Currency of Trust – SuperMoney
  4. Cold Wallets Explained: The Ultimate Protection for Your Cryptocurrency – SuperMoney
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  7. Is Crypto Dead or Just in Hibernation? – SuperMoney
  8. What is the Bitcoin Lightning Network? – SuperMoney
  9. JPMorgan Opens Up To Crypto Trading – SuperMoney
  10. Is Bitcoin Worth Your Time and Money? – SuperMoney