5 Best Crypto-Friendly Banks You Need to Know About in 2024

Cryptocurrency is growing fast, and more people are using it worldwide. According to Crypto.com, the number of crypto holders rose by 34% in 2023, from 432 million in January to 580 million in December. This growth was driven by Ethereum’s Shanghai Upgrade and interest from institutions in launching a Bitcoin ETF. In 2024, the number of crypto users is expected to rise even more, possibly surpassing 992.5 million by 2028, as reported by Statista.

As interest in decentralized finance (DeFi) grows, people are looking for banks that can integrate traditional financial services with cryptocurrency support. This article highlights the top five crypto-friendly banks to watch in 2024. These banks make it easy to buy, sell, and store digital currencies safely. We’ll explore how they support crypto, their unique features, and why they stand out.

What Makes a Bank Crypto-Friendly?

A crypto-friendly bank offers services specially designed for managing digital assets. These banks connect easily with major cryptocurrency exchanges. You can easily buy, sell, and transfer cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). They provide secure storage solutions, like wallets and vaults, with advanced encryption. This helps protect your digital assets from theft and cyberattacks. Many crypto-friendly banks offer debit and credit cards. You can spend your cryptocurrencies like cash at online and offline retailers. These banks often have rewards programs where you earn crypto on purchases. Some even provide interest-bearing accounts for earning passive income on your crypto.

Overview Table of Top 5 Crypto-Friendly Bank

Top 5 Crypto-Friendly Banks 2024

1. Ally Bank

Ally doesn’t support direct crypto trading but offers crypto-backed investments. You can invest in crypto trusts, Bitcoin futures, and crypto stocks with Ally Invest. You can also link your bank account to trusted exchanges like Coinbase. These features make Ally one of the most crypto-friendly banks in the USA.

Ally offers convenient banking features like early direct deposits and overdraft protection. You won’t pay typical bank fees, like maintenance or low daily balance fees. Your Ally account includes a debit card that you can freeze using the app. Cash deposits are FDIC-insured up to $250,000 per account, but crypto deposits are not covered.

Key Features of Ally

• Crypto-friendly mindset: Ally supports investments in crypto assets.
• Connect to popular exchanges: Link your account to exchanges like Coinbase.
• Invest in crypto assets: Access trusts and stocks through Ally Invest.
• Competitive yields: Earn 0.25% on savings and over 4% on CDs and money markets.

Pros

• Competitive interest rates
• No monthly fees
• 24/7 customer support
• User-friendly online platform
• Wide range of products

Cons

• No physical branches
• Limited cash deposit options
• Possible ATM fees
• No business accounts

2. Juno

Juno is simple enough for beginners and powerful for crypto experts. The app offers an easy way to enter the crypto world. You can set up direct deposits or automatic bill payments. Juno provides all the convenience of a bank, plus extras like Apple Pay and Google Pay integration.

You can earn up to 5% on cash deposits and get up to 5% cashback on everyday spending. Juno is a global app with offices in Singapore, the US, and India. It aims to make crypto markets accessible to everyone.

Juno offers 40 different coins and tokens and stays updated with the latest trends. It includes cryptocurrencies like Hedera that aren’t available on many other platforms.

Key Features of Juno

• Wide selection: Access 40 cryptocurrencies.
• User-friendly app: Designed for beginners and experts alike.
• Direct deposit support: Set up deposits easily.
• High savings yield: Earn 5% APR on savings.

Pros

• Seamless crypto integration
• High interest rates
• No monthly fees
• Innovative features
• Strong security

Cons

• Limited physical presence
• Relatively new institution
• Fewer services
• Potential fees for crypto transactions
• Limited customer support options

3. Revoult

Revolut provides payment services, investments, currency conversions, and more in one app. You can invest in over 50 individual cryptocurrencies or choose baskets of crypto tokens. This allows you to bet on promising sectors of the crypto market.

The Revolut app is popular among travellers and remote workers worldwide. It offers a range of services suitable for nearly anyone. You can use a prepaid debit card to spend cash or crypto easily. You can also freeze and unfreeze the card with a few clicks for safety. Other popular features include access to stock investments and savings rates of up to 4.25% APY with a premium membership.

Key Features of Revolut

• Wide crypto selection: Buy or sell over 150 crypto assets.
• Crypto baskets: Invest in crypto grouped by market sector.
• Versatile debit card: Use cash or crypto with a prepaid card.
• Low trading fees: Pay only 0.49% with a premium plan.

Pros

• Wide range of services
• Low fees for international transactions
• User-friendly app
• Instant transfers
• Global reach

Cons

• No physical branches
• Some features require a paid subscription
• Limited customer support
• Possible account restrictions based on location

4. Monzo

Monzo doesn’t offer direct access to cryptocurrencies. However, this UK-based payment app supports customers in the crypto economy. You can easily connect Monzo to reputable exchanges like Coinbase. Some exchanges, like Binance, aren’t supported due to warnings from the Financial Conduct Authority (FCA).

Monzo lets you connect all your accounts in one app, giving you a complete financial picture at a glance. Monzo also supports US customers through Sutton Bank, offering FDIC insurance for up to $250,000 per account. This insurance does not cover crypto funds.

Key Features of Monzo

• Crypto exchange friendly: Connect to reputable exchanges like Coinbase.
• Unified banking: Access multiple bank accounts with one app.
• Affordable banking: No monthly fees or account minimums.

Pros

• No monthly fees
• User-friendly app
• Instant transaction notifications
• No foreign transaction fees
• Savings pots and automated savings

Cons

• No physical branches
• Limited cash deposit options
• Basic account types
• Potentially slow customer support

5. Wirex

Earn crypto rewards with the Wirex card or easily buy, sell, and exchange cryptocurrencies. This mobile-first app travels with you, letting you spend in local currency wherever you go. Choose from over 37 cryptocurrencies, including BTC, ETH, DeFi picks like MKR or AAVE, and meme coins like DOGE.

Use your Wirex Card to earn up to 8% back in crypto rewards for online purchases. Rewards are paid instantly in the platform’s token, WXT. Wirex also offers an innovative X-Account, which invests in DeFi protocols to earn up to 20% average equivalent rate (AER), compounded daily to maximize yields.

Key Features of Wirex

• Leverage trading: Trade crypto pairs with Wirex Multiply.
• High yields: Earn up to 20% AER with an X-Account.
• Crypto rewards: Get rewards for card purchases.
• Guaranteed returns: Earn a guaranteed APR with Wirex Duo.

Pros

• Supports multiple fiat and cryptocurrencies.
• Up to 8% Bitcoin rewards on purchases.
• Global spending with Wirex Visa card.
• Low fees and competitive exchange rates.
• User-friendly interface.
• Strong security features.

Cons

• Limited cryptocurrency selection.
• Not available in all countries.
• Slow customer support.
• Transaction limits for high-volume users.
• Subject to regulatory changes.
• No interest in crypto or fiat holdings.

Challenges Faced by Crypto-Friendly Banks

Crypto-friendly banks tie together traditional finance and cryptocurrency, but they face challenges. Here are some challenges they faced:

1. Regulatory Uncertainty: Regulations around cryptocurrencies change often. You must deal with complex and changing laws to stay compliant. Different countries have different rules, which can be confusing.
2. Security Risks: Cryptocurrencies are targets for hackers and cybercriminals. You need to invest heavily in advanced security measures. This helps protect digital assets from theft and cyberattacks.
3. Compliance Costs: Implementing anti-money laundering (AML) regulations can be expensive. You need strict compliance measures, which require significant resources.
4. Volatility: The cryptocurrency market is highly volatile. You must manage risks from price fluctuations to protect financial stability.
5. Limited Public Trust: Many people view cryptocurrencies with scepticism. You need to build trust and educate the public about digital currencies.
6. Integration with Traditional Systems: Integrating cryptocurrency services with existing systems can be challenging. You must ensure easy exchanges between traditional and digital currencies.
7. Competition: Many crypto-friendly banks are growing. You need to offer unique services to attract and keep customers.
8. Lack of Infrastructure: Some regions lack the infrastructure for supporting crypto transactions. You may need to invest in the necessary technology.
9. Liquidity Issues: Ensuring liquidity for crypto transactions can be tough. You need to manage assets carefully to meet customer demands.
10. Insurance Limitations: Traditional insurance often doesn’t cover crypto assets. You need to find ways to protect digital assets without conventional insurance.

Pros and Cons of Crypto-Friendly Banks

Crypto-friendly banks combine traditional banking with cryptocurrency services, letting you manage both types of money in one place. They make it simple to manage your cryptocurrency and provide robust security for your digital assets. It has both pros and cons listed below:

Pros

• Easy integration with major crypto exchanges for smooth transactions.
• Offers crypto debit cards, loans, and interest-earning accounts.
• Advanced security measures protect digital assets.
• Provides legal protections and compliance with financial regulations.
• Earn cryptocurrency rewards on card purchases.
• Combines crypto with traditional banking services like loans and savings.
• Allows quick conversion between crypto and fiat currencies.
• Offers tools for tracking transactions and preparing tax reports.
• Provides unique products like crypto-backed mortgages.
• Offers educational tools to help users understand cryptocurrencies.

Cons

• Changing laws can affect the availability of services.
• Not available in all countries due to strict regulations.
• Some banks charge higher fees for crypto transactions.
• Risk of cyberattacks despite strong security measures.
• Cryptocurrency values can fluctuate significantly.
• Some banks may not support all cryptocurrencies.
• Accounts can be frozen if suspicious activity is detected.
• Banks collect personal information for regulatory compliance.
• Managing both crypto and fiat assets can be complex.
• KYC and AML regulations reduce transaction anonymity.

Conclusion

In this article, we reviewed the five best crypto-friendly banks in 2024. These banks offer various services, from everyday banking to advanced trading platforms supporting personal and business crypto transactions.

The banking and crypto world is changing fast. More banks see the need to include digital assets in their services. Crypto-friendly banks are leading this change, connecting traditional finance with cryptocurrencies. As regulations become clearer and technology advances, these banks will offer more innovative solutions. This makes it easier to manage crypto assets alongside regular financial tools.

Crypto-friendly banks combine traditional services with advanced crypto features. This provides a full solution for your financial needs—research which of these top banks fits your needs best.

Read also: Best Cold Storage Wallets: Secure Your Crypto Assets

Frequently Asked Questions (FAQs)

Disclaimer: The information in this article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a financial advisor before making any banking or investment decisions.