Crypto exchanges usually support a variety of payment methods for customers to buy or deposit, including bank transfers, credit cards, debit cards, and bank wires. The payment methods vary and depend on the conditions of each exchange. Some exchanges do not have a way to withdraw funds in FIAT currencies and payments can only be made via cryptocurrencies. In order to withdraw your coins, you will need to generate an address using the wallet you intend to receive the coins. Steps to fund your trading account also depend on your location but this can be check on the official website of each crypto exchanges. Even if you reside in a region where they don’t yet support buying and selling, you can still use some crypto exchanges as a free, hosted wallet to store and transact with the digital currency.
Brokers also accept deposit via credit card, debit card, PayPal, Skrill and bank transfer. The payment methods vary and depend on the conditions of each broker. In the most case, all client funds are held in segregated client bank accounts and they are not at risk in case of bankruptcy. Withdrawals can be usually made via credit card, debit card, PayPal, Skrill and bank transfer. All withdrawal methods have minimum amount thresholds and this can be check on the withdrawal screen. Withdrawal requests usually take up to 1 business day to process and they are subjected to a withdrawal processing fee. The major difference between brokers and exchanges is that with brokers you are actually trading a CFD(Contract For Difference), most of the time. On the exchanges, traders and investors can really buy coins.
How to fund your trading account?
Users usually have to complete the following steps to fund their trading account:
- Email verification, complete your profile to sign up as an individual
- 2-step verification code provided by SMS to your phone
- Upload ID, this can be the passport, driver license or ID photo
- Payment method, the payment methods vary and depend on the conditions of each exchange
On the payment methods page of each broker or exchange, clients can find all important information about deposits and withdrawals. Bank account verification requires banking username and password. Additional security questions (as well as a PIN) may be requested depending on your bank’s security procedures. The deposit verification procedure may initiate two small test deposits to your account, once the deposits have reached your account, you can verify the amounts and bank account is verified.
Credit or Debit Card
- Funds purchased via this option will usually be credited to your account instantly
- When ID verification is complete, clients should enter their card information (The address must match the billing address for the card)
- Usually, 2 pending charges will be made to your card (two small charges)
- Clients transfer their money (fiat currency) to their broker/exchange account through credit or debit card
- By selecting your card on the payment methods, clients can now make a purchase
Bank Wire Deposit
- The name on the bank wire must match the legal name on your account for the wire to be accepted
- It is also very important to include the Reference Number
- Wired funds will typically appear in your account within 1 business day after you send them
- After the deposit has cleared, you can now make a purchase
- Clients transfer their money (fiat currency) to their broker/exchange account through bank wire
PayPal
- Clients will need to first verify their ID to enable PayPal as a payout method
- Once their identity has been verified, they must go to the payment method page and select “PayPal Account” as the payment method
- By selecting PayPal as the payment method, clients can now make a purchase
- Clients transfer their money (fiat currency) to their broker/exchange account through Paypal
- Some exchanges only offer selling to a linked PayPal account and don’t yet offer the ability to buy digital currency or deposit funds using PayPal
Skrill
- Clients will need to first verify their ID to enable Skrill as a payout method
- Once their identity has been verified, they must go to the payment method page and select “Skrill Account” as the payment method
- Clients transfer their money (fiat currency) to their broker/exchange account through Skrill and they can now make a purchase
- Sending money to an email address or another Skrill wallet costs 1.9% of the amount sent, with the charge capped at €20
- For transactions involving currency conversion, Skrill adds a fee of 3.99% to their wholesale exchange rates
The example of buying a bitcoin on crypto exchange
- Go to the Buys page
- Enter the amount in BTC or your local currency that you wish to buy
- Select the wallet you wish to have your funds deposited into.
- Select your desired payment method.
- Confirm the order is correct and click “BUY”
