Article Overview:This is a comprehensive guide to cryptocurrency wallets that everyone should know. We've compiled a list of the different types of crypto wallets and explain the need for you to have one.
- Do You Need A Bank Account For Bitcoin Account
- Do You Need A Bank Account For Bitcoin Accounts
- Do You Need A Bank Account For Bitcoin Wallet
The main purpose of the creation of Bitcoin as a decentralized currency was to give the masses the power to control and manage their own money. You might ask yourself:
In a nutshell, if you do intend to buy Bitcoin with a credit card, bank account, or any other fiat currency payment method, then you’ll need to upload a copy of your government-issued ID, and in. Although you would automatically have a wallet when you open a cryptocurrency exchange account (exchange-hosted wallet), you do not have control of the private and public keys. Having control of your keys means having control of your coins. Exchanges work like a bank; it is a third-party service provider that you trust to keep your coins safe.
“Well, do I not have full control of my money?”
Since the money you deposit in the bank is usually used to lend it out to others, you technically do not have full control over it.
What you own is simply an IOU, or a promise by the bank to pay you. It might seem crazy, but our current monetary system has many fundamental flaws that elude most of us.
Bitcoin - and cryptocurrencies - offer you the power to have absolute and total control over your money.
And given the fact that Bitcoin and other cryptocurrencies have been increasing in value, it is vital to have your own cryptocurrency wallet to store and manage your coins.
Learn How to Make Over 100% Returns Investing in Crypto
What is a Crypto Wallet?
Simplified Definition: It’s a software program that stores your coins
Technical Definition: It’s a software program that stores your private and public keys (they come in pairs), enabling you to send and receive coins through the blockchain, as well as monitoring your balance.
First off, digital wallets are quite different as compared to your physical wallet. Instead of storing money, digital wallets store private and public keys.
Private keys are like your PIN number to access your bank account, while public keys are similar to your bank account number. When you send Bitcoin, you’re sending VALUE in the form of a transaction, transferring the ownership of your coin to the recipient.
In order for the recipient to spend the newly-transferred Bitcoin, his private keys must match the public address that you sent the Bitcoins to. (Read also: Guide to Forks: Everything You Need to Know About Forks, Hard Fork and Soft Fork)
Ownership of your private keys gives you total control over the funds associated with your corresponding public keys. That’s why it is vital to make sure you keep your private keys secretly hidden so that ONLY YOU know your private keys.
If any other person gets hold of your private keys, they will have control over your coins. It is also equally important to have a back-up of your private keys, so as to protect yourself from accidental loss.
You'd also lose your funds if you cannot recover your lost private keys.
(Read also: Guide on Privacy Coins: Comparison of Anonymous Cryptocurrencies)
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Can I Just Keep Them on an Exchange to Avoid the Complexities?
You could, but you wouldn’t want to. Although you would automatically have a wallet when you open a cryptocurrency exchange account (exchange-hosted wallet), you do not have control of the private and public keys.
Having control of your keys means having control of your coins. Exchanges work like a bank; it is a third-party service provider that you trust to keep your coins safe.
However, there is always a probability of the exchange shutting down or being hacked, resulting in a loss of coins (case in point: Mount Gox Exchange).
Given the lack of regulatory frameworks on exchanges and cryptocurrencies as a whole, as well as the infancy of the industry, the best way to keep your coins safe is to have total control of your coins. You can only have absolute control by having your own wallet.
In addition, participating in ICOs require you to have your own private wallets, from which to invest from. You cannot invest in ICO's through your exchange account.
Here's a Beginner's Guide to ICO Investing: How to Participate in ICOs.
(See more: Guide to Decentralized Exchanges: Comparison of Popular DEXs)
It can be intimidating choosing the right wallet, but do not worry! We’ve compiled the various types of wallets for different coins according to their price, level of security and mobility for your convenience.
Disclaimer: For the purpose of simplicity, this guide does not list full client wallets such as Bitcoin core, Mist or Parity since downloading the entire blockchain may not be a user-friendly experience, even though we admit that it’s the safest way of storing your coins.
If you want to get started opening a free Ether (and ERC20-compliant) online wallet, please read this Guide to Cryptocurrency Wallets: Opening a MyEtherWallet (MEW).
Alternatively, if you want to open a free Bitcoin online wallet, please have a look at this Guide to Cryptocurrency Wallets: Opening a Bitcoin Wallet.
I'm Aziz, a seasoned cryptocurrency trader who's really passionate about 2 things; #1) the awesome-revolutionary blockchain technology underlying crypto and #2) helping make bitcoin great ‘again'!
We may receive advertising compensation when you click certain products. Before jumping into this page, an important disclosure.
Although it may seem hard to buy bitcoin without a bank account, services that allow the unbanked to buy bitcoin often deliver your coins faster. You also maintain more of your privacy when you use services that don't require a bank account
There are two good ways to buy bitcoin without a bank account: with credit card, or with cash.
We'll show you exchanges that work for both methods.
Credit Card: Option #1 to Buy Bitcoin without a Bank Account
Credit card is one way to buy bitcoins without a bank account. The main benefit is that the delivery of coins is fast.
The exchanges in the table below allow you to buy bitcoin with credit card.
- Bits of Gold
- Crypto exchange based in Tel Aviv
- Buy with card, cash or bank transfer
- Supports Bitcoin & Ethereum
- SwyftX
- Crypto exchange based in Australia
- Supports credit card buying
- Easy to use interface
- Luno
- Best for Nigeria, South Africa, Indonesia, Malaysia
- East to use interface
- Trusted exchange
- eToro
- Supports Bitcoin, Ethereum & 15 other coins
- Start trading fast; high limits
- Clean & easy trading interface
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
- Coinbase
- High liquidity and buying limits
- Easy way for newcomers to get bitcoins
- 'Instant Buy' option available with debit card
- Coinberry
- Crypto exchange based in Canada
- Very high buy and sell limits
- Supports credit & debit card, Interac, wire
Cash: Option #2 to Buy Bitcoin without a Bank Account
Cash is the second option. Below you can find exchanges that allow you to buy with cash.
Local Bitcoins provides escrow and offers a number of payment methods for buying bitcoin with no bank account. Cash deposit, Western Union, face-to-face cash trade, Amazon gift card are all offered on top of many other payment methods. Local Bitcoins provides escrow, but be sure to buy from sellers with previous trade history and positive feedback.
We may receive compensation when you use LocalBitcoins. Please visit LocalBitcoins for its exact pricing terms.
- Can be private, fast and easy
- In-person trades require no personal information
- Purchases of bitcoin can be made quickly via cash deposit
- Beware of scams; always follow the rules!
- Harder to buy large amounts of bitcoins compared to large exchanges
- Slightly to significantly higher prices than regular exchanges; premium for higher privacy
Do You Need A Bank Account For Bitcoin Account
LibertyX lets you buy bitcoin with cash at a number of retail stores across the United States. You'll have to verify your identity before buying, making LibertyX less private than some of the other options. You can buy up to $1000 worth of bitcoin. You'll be charged a 1% fee on all purchases, but if you sign up with Facebook you can buy your first $1000 fee free. Your bitcoin should arrive a few minutes after your payment is made.
- Easy and fast way to buy bitcoins with cash
- Low 1.5% (plus store fee) rate for cash purchase method
- Daily $1000 limit is fairly high for a convenience service
- Participating stores add their own variable fee
- Some verification is required which lowers the expected privacy level of cash purchase
- Attaching your Facebook account further degrades privacy
Coin ATM Radar helps you find Bitcoin ATMs in your area, where you can by bitcoins with cash and no bank account.
- Our map makes it super easy to find a Bitcoin ATM near you
- Bitcoin ATMs often have 5-10% fees per purchase
Do You Need A Bank Account For Bitcoin Accounts
On top of the options listed above, it's always possible to buy bitcoin at your local meetup or from a local Bitcoin ATM. Use Coin ATM Radar to find a Bitcoin ATM in your area.
Do You Need A Bank Account For Bitcoin Wallet
The availability of the services listed above may vary by location.