Best Crypto Bank Accounts in 2022

How Do Crypto Banks Work?

The term crypto bank is somewhat subjective, as it can refer to a number of different services. First and foremost, there are no traditional financial institutions that allow you to deposit and store crypto assets. There are, however, digital-only challenger banks like Revolut that, in addition to checking accounts and debit cards, allow you to buy and sell cryptocurrencies.

You then have so-called crypto-friendly banks. For instance, Monzo is a great example here – not least because it allows you to use your account at crypto exchanges. This is means that – on the proviso, the exchange is regulated, you can deposit and withdraw funds to and from exchanges without having the transaction blocked.

Ultimately, the best Bitcoin bank accounts in the market form a crucial bridge between fiat money and digital currencies. That is to say, you should be able to perform everyday financial services – such as sending and receiving funds and withdrawing cash from ATMs, as well as having access to crypto exchanges and investment products.

On the other hand, our research concluded the best alternative to a crypto bank is Aqru. As we discussed in our Aqru review, this provider allows you to deposit funds in US dollars, euros, or British pounds. You can also fund your account with crypto and best of all – earn up to 12% per year in interest. In essence, Aqru offers a similar framework to a conventional savings account.

Cryptoassets are a highly volatile unregulated investment product. 

Are Crypto Banks a Good Idea?

Over the course of the next decade, there is every chance that traditional financial institutions will begin offering bank accounts that support both fiat money and crypto assets.

After all, some of the biggest banks in the US – notably, Wells Fargo, JPMorgan Chase, and Goldman Sachs already have departments that are dedicated exclusively to cryptocurrency.

With that said, in its current form, crypto bank services available in the market are fragmented.

• For example, if you’re looking to deposit crypto into a safe interest-bearing account, the best option in 2022 is Aqru.
• However, Aqru does not offer local checking accounts or a personalized debit card.
• You then have the likes of Monzo – which allows UK clients to use their accounts at crypto exchanges – alongside access to a debit/credit card issued by MasterCard.
• However, Monzo itself does not offer crypto trading services.

The key point here is that there is no provider offering all of the crypto/fiat banking services that you might require through a single hub.

Instead, you will likely need to open an account with various providers.

Are Crypto Banks Safe?

The best crypto bank account providers in the market will ensure that your funds are kept safe at all times. Safety and security will, however, vary from provider to provider.

In the sections below, we discuss some of the most important safety nets that you should look for when choosing the best crypto bank account for your needs.

Deposit Insurance

If you’re looking for a Bitcoin bank account that supports fiat money in addition to digital currency – then it’s a good idea to assess whether or not there is an insurance program in place.

For example:

• When using Monzo, GBP deposits are covered by the FSCS up to the first £85,000
• US clients with USD balances are covered by the FDIC at Coinbase up to the first $250,000
• Nuri accounts are covered by the European deposit guarantee scheme up to the first €100,000

It is also important to check whether the deposit protection scheme is offered by your chosen crypto bank account – or through a third-party partnership.

Moreover, the deposit scheme in question might only be available to residents of certain countries, so this is another metric to check off before choosing a provider.

Regulation

In addition to a deposit protection scheme, you should also explore the regulatory standing of your chosen crypto bank.

For example, Coinbase is regulated by the SEC while Monzo is authorized and licensed by the FCA. In the case of Aqru, the platform is approved by regulators in the European nation of Lithuania.

Ultimately, if you come across an unregulated entity when searching for the best crypto bank for your requirements – the provider in question should be avoided.

Crypto Deposit Security 

Another thing to consider in your search for the best crypto bank in the market is the security offered on your digital asset deposits. After all, when you deposit cryptocurrencies into a platform, your chosen provider will be responsible for keeping the funds safe.

At a minimum, the crypto bank should keep the vast majority of client digital tokens in cold storage. Additionally, multi-sig technology should also be a minimum requirement, as should the implementation of an insurance policy.

Account Security 

The best Bitcoin banks that we came across offer a range of security tools on client accounts. For instance, two-factor authentication ensures that log-in attempts require access to a secondary device.

This can come in the form of an SMS code sent to your cell phone or an email confirmation link. Additionally, some Bitcoin banks require an extra security step when you sign in from a new device.

How to Choose the Best Crypto Bank Account?

When searching for the best crypto bank account for your requirements, there are a number of important metrics to consider.

We discuss these core factors in more detail in the sections below:

Eligibility   

The first thing to check is whether or not you are eligible to open an account with your chosen crypto bank.

For example, while Revolut accepts clients from the US, Europe, and several other regions, Monzo accounts can only be opened by those based in the UK.

Conventional Banking Services   

Next, you’ll need to see what conventional banking services are offered by your chosen provider. At a minimum, you should be offered a local bank account in your desired region.

For example, Revolut offers unique UK, EU, US, and a number of other regional bank accounts to all registered users. Monzo and Nuri, on the other hand, only offer a local UK and German bank account, respectively.

Debit Card   

You will likely want access to a debit card when you open an account with a crypto bank. In doing so, this will allow you to spend your fiat and crypto funds in the real world.

This should include ATM withdrawals as well as online and in-store purchases. As long as the card is issued by Visa or MasterCard – you should be able to use it anywhere globally.

Crypto Services   

By searching for the best crypto bank for 2022, you likely want access to specific services linked to the digital asset industry.

For example, if you want a crypto bank account that allows you to buy and sell digital assets at the click of a button, you might consider Revolut. If crypto staking is more of interest, Coinbase is worth considering.

It is, however, important to check whether your chosen crypto bank offers digital asset services directly – or if they are using a third-party provider. If it’s the latter, you might want to consider it.

Interest Accounts    

When you deposit funds into a traditional bank account, you will likely be paid a rate of interest. With that said, it goes without saying that banks in the US and Europe pay virtually nothing in interest – with yields rarely exceeding 1%.

Once again, this is why we like Aqru as the best alternative to a crypto bank, as you will earn an APY of 7% on Bitcoin and Ethereum, and 12% on stablecoin deposits.

How to Set Up a Crypto Savings Account

If you’re ready to start earning interest on your crypto deposits in a safe and secure environment, we will now show you how to get started with Aqru.

As noted, you can deposit fiat money or crypto assets here and earn interest without needing to lock your funds away.

Step 1: Register an Account

To get started with Aqru, you will first need to register an account. This is somewhat similar to opening a bank account, insofar that you will need to provide some personal information and contact details.

However, unlike a traditional bank account – which can take several days to open, registering at Aqru takes a matter of minutes.

Step 2: Verify Identity 

Similarly, just like a traditional bank account, Aqru is legally required to verify your identity before it can start offering you fiat or crypto services.

To get verified near-instantly, you will need to upload a copy of your government-issued ID – such as a passport or driver’s license.

You will also need to have your country of residency validated via a proof of address document. This can be a bank account statement, for instance.

Step 3: Deposit Funds 

Now that you have a verified account with Aqru, you can now make a deposit. As we mentioned earlier, this top-rated provider accepts deposits in both crypto assets and fiat money.

If opting for the latter, you can deposit US dollars, euros, or British pounds via a debit/credit card payment or bank transfer.

If you wish to deposit crypto, Aqru will provide you with a unique wallet address for the respective token. Then it’s just a case of transferring the funds from an external wallet or exchange.

Step 4: Earn Crypto Interest 

As soon as you have made a crypto deposit, you will start earning interest. This will be paid out on a daily basis and you can your balance in real-time 24/7.

If you made a deposit in fiat currency, you can choose the crypto that you wish to earn interest on. For the highest rate possible with virtually no volatility risk – consider a stablecoin. In doing so, you’ll earn an APY of 12%.

Conclusion

In its current form, the crypto bank industry is extremely fragmented. For instance, while one provider might offer local bank account numbers and the ability to buy crypto, interest-earning opportunities might be non-existent.

In conclusion, we found that the best alternative to a crypto bank account is Aqru – which enables you to deposit fiat and crypto money – and earn a yield of up to 12% per year.

And, as all interest accounts are flexible, you can withdraw your funds at any given time – 24/7.

Cryptoassets are a highly volatile unregulated investment product. 

Frequently Asked Questions on Crypto Bank Accounts