Many banking institutions were initially skeptical about cryptocurrencies. Some cited their decentralization and high volatility as significant threats to the traditional monetary systems. However, Bitcoin’s rapid success has seen institutional investors suddenly shift towards crypto. Several leading banks have adopted Bitcoin today, offering their customers cross-border money transfers, custodial services, and virtual investment management solutions. Thanks to reliable crypto exchange platforms such as quantum-ai-trading.com, you can quickly move funds from your bank account to a crypto wallet and vice versa for daily purchases, investments, and long-term storage.
Banks have played a critical role in bridging the gap between the traditional financial systems and the crypto industry. However, a handful of banks still do not recognize crypto. Here’s a guide on how to choose a Bitcoin-friendly bank.
Licensing
Most countries that allow cryptocurrencies have established laws recognizing crypto businesses. Thus, cryptocurrency-based businesses are legitimate commercial enterprises, subject to licensing. The requirements vary across states, countries, and regions, but all the businesses that conduct crypto transactions must obtain relevant certification and licenses to operate.
The licensing serves as a measure for consumer protection, ensuring you have a cover in case of disputes with Bitcoin transfers or asset management. Thus, you should ensure that the bank you intend to use in transacting Bitcoin is licensed to provide crypto services. Choosing a licensed bank will also guarantee good customer service.
The bank you use to process Bitcoin payments, invest in crypto, or store your assets should be licensed to offer those services in your state, country, or region. A trusted bank will display its licensing number on the website for proof of legitimacy.
Crypto Services
Bitcoin has created multiple opportunities for banks to increase their portfolios and incomes. However, that does not mean you will always find all the crypto services you need from banks that accept Bitcoin. Some Bitcoin-friendly banks only offer crypto exchange services, while others cater to a wide range of crypto investment solutions.
Most crypto-friendly banks offer cryptocurrency conversion, trading, and payment processing services. Also, they provide custodial and virtual asset management services. Some banks will also offer alternative crypto investments such as futures and stocks for those who may not wish to invest in Bitcoin directly. Nevertheless, choose a bank that provides various Bitcoin-related services for convenience.
Choosing a Bitcoin-friendly bank that offers all-inclusive crypto services will ensure greater convenience if you may wish to invest in digital assets in the future. Such a bank can advise you on the most suitable Bitcoin investments that meet your goals and expectations. Besides, it would also enable you to understand the crypto market better.
Customer Support
Bitcoin is a decentralized currency whose transactions occur on the blockchain network without third parties. However, dealing with banks can sometimes come with unique challenges since many are still new to crypto. Besides, you want to ensure that the bank will not hold your payments and keep you waiting for several hours or days before getting confirmation.
Reading the customer reviews of a few Bitcoin-friendly banks online will give you a better picture of their customer services. Besides, you may ask some of your friends or family who have used banks to transact Bitcoin before for recommendations. Although the basis of their testimonials is mainly individual experiences, they can give you a better picture of what to expect from different Bitcoin-friendly banks.
Overall, there are several Bitcoin-friendly banks across the globe today. These guidelines will help you choose the best bank to transact and invest in Bitcoin safely and efficiently.
