Cryptocurrencies are digital assets that have gained popularity in recent years as an alternative form of money and investment. However, not all banks and financial institutions support crypto transactions, and some may even charge fees or impose restrictions on them. If you’re an Ally Bank customer, you might be wondering if you can buy crypto with your account and how to do it safely and efficiently.
This article will show you how to buy cryptocurrencies with Ally Bank, what the fees are, and whether Ally Bank is a crypto-friendly option or not in the U.S. Finally, we’ll give you some background information about Ally Bank and its services as well. Let’s begin!
Let’s dive in!
Can I Buy Crypto with Ally Bank?
Yes, you can buy crypto with your account as an Ally Bank customer, but not directly. Ally Bank does not offer cryptocurrency spot trading, which means you cannot buy and sell digital assets like Bitcoin and Ethereum directly through the bank’s online platform. However, using a licensed U.S. cryptocurrency exchange that accepts transactions from Ally Bank will still allow you to invest in crypto.
There are many cryptocurrency exchanges available in the U.S., but not all of them are licensed and trustworthy. Some of them may charge high fees, have poor security, or offer limited options. Therefore, it’s important to choose a reputable and reliable cryptocurrency exchange that is regulated by FinCEN and meets your preferences.
How to Buy Bitcoin and Crypto with Ally
If you want to buy Bitcoin or other cryptocurrencies using your Ally Bank account or card, select a U.S.-licensed exchange. Buying Bitcoin and other cryptocurrencies with your Ally Bank account is not as hard as it may seem. Follow these steps to buy Bitcoin and crypto with Ally:
- Choose a licensed U.S. crypto exchange that supports Ally Bank in terms of transfers. There are many options to choose from, but some of the most popular and reputable ones are Coinbase, Gemini, Kraken, eToro, and Binance U.S. These exchanges are licensed and regulated by U.S. authorities, which means they comply with the highest standards of security and transparency. They also offer a wide range of cryptocurrencies, low fees, and user-friendly interfaces.
- Create an account on the cryptocurrency exchange of your choice and complete your verification. You’ll need to provide some personal information, such as your name, email, phone number, address, and social security number. You’ll also need to verify your identity by uploading a photo of your ID card, driver’s license, or passport. This process may take a few minutes or hours, depending on the exchange and the verification level you choose.
- Enter the USD amount you want to deposit on the exchange platform and connect your Ally Bank account to transfer your funds. You’ll need to provide your Ally Bank account number and routing number, which you can find on your online banking dashboard or on your checks.
You’ll also need to authorize the exchange to access your Ally Bank account by entering your online banking username and password. This is a secure and convenient way to transfer your funds without having to use wire transfers or other methods that may charge fees or take longer.
- Once your funds are available on the exchange, you can browse through the list of cryptocurrencies and select the one you want to buy. You can also use advanced trading tools, such as margin trading, futures trading, or options trading if you have more experience and knowledge in crypto trading.
- Execute your trade and enjoy your crypto investment. You can either keep your crypto on the exchange platform or transfer it to a secure wallet of your choice.
What are the Fees?
The total amount of fees you’ll pay for buying crypto with Ally Bank will depend on several factors, such as the exchange you use, the cryptocurrency you buy, the payment method you choose, and the market conditions at the time of your transaction. Here are the main types of fees you’ll encounter:
Ally Bank fees: Ally Bank does not charge any fees for transferring funds to and from your account via ACH or wire transfer. However, if you use a credit or debit card to buy crypto on some exchanges, you may incur a cash advance fee of 3% or $10, whichever is greater. You may also have to pay interest on your credit card balance if you don’t pay it off in full every month.
Cryptocurrency exchange fees: Cryptocurrency exchanges charge different types of fees for their services, such as trading fees, deposit fees, withdrawal fees, and margin fees. These fees also include deposit, withdrawal, spread, and transaction costs.
Blockchain network fees: Blockchain network fees are also known as mining fees or gas fees, and they are paid to the miners or validators who process and confirm your transactions on the blockchain.
Is Ally Bank Crypto-Friendly?
Ally Bank is a crypto-friendly bank in the U.S.F that allows its customers to buy, sell, and hold cryptocurrencies using their accounts. Ally Bank customers can buy, sell, and hold various cryptocurrencies, including Bitcoin, Ethereum, Solana, stablecoins, and more, through exchanges that are regulated by the U.S. Financial Crimes Enforcement Network, or FinCEN.
By choosing a regulated exchange, Ally Bank customers can have peace of mind that their crypto investments are not only secure but also fully compliant with the law. However, it does not offer cryptocurrency spot trading, which means you cannot buy and sell digital assets directly through the bank’s online platform.
About Ally Bank
Founded in 2009, Ally Bank is the digital-only banking division of Ally Financial, Inc., which is headquartered at Ally Detroit Center in Detroit, Michigan. Ally Bank is known for its competitive interest rates, low fees, and 24/7 customer service. It also has no minimum balance requirements or monthly maintenance fees for its online accounts.
Ally Bank offers a range of financial products and services, such as checking and savings accounts, credit cards, investment accounts, mortgages, auto financing, and personal loans.
Bottom Line
Buying crypto with Ally Bank is possible and easy if you use a regulated U.S. cryptocurrency exchange that supports Ally Bank. Ally Bank is a great option for customers who want to enjoy the benefits of online banking and crypto investing in one place.
