You’ve signed up for a crypto exchange account, but now what? There are a lot of ways in which you can fund the account, but which way is best? If you’re looking for the answer to either of these questions then you’re in the right place, as we’re going to break down the best ways to fund a cryptocurrency exchange account.
Before getting to the best methods, we’ll first outline some of the factors you should value as a customer looking to make a deposit. Let’s jump in.
What You Value as a Customer
When it comes to what you should value as a customer when you’re funding an exchange account, there are a few key factors to consider. The first factor is the speed of each funding method, some methods are nearly instantaneous, while others may take multiple days.
There is often some sort of tradeoff in fees for the differences in speed, but that’s generally on your side of the transaction, as exchanges (at least ones you should be using) don’t charge fees on deposits. This means you may pay cash advance fees if you use a credit card to instantly fund your account, whereas a bank transfer will cost you nothing but take longer.
The other two factors to consider are reliability of the funding method, and what’s available to you in your jurisdiction. Not every funding method can be used by every user of an exchange due to their geographical location. Likewise, not every funding method is as reliable for every user. What is best for you will depend on your specific situation.
The Best Ways to Fund an Exchange Account
Below we’ve outlined some of the best ways to fund your exchange account. They’re not necessarily in order from best to worst as each method’s viability will depend on your specific circumstances. For each method we’ll outline the speed, fees you’ll likely face, and ease of use.
1. Bank Transfer (ACH, SEPA, Interac)
A bank transfer isn’t the fastest method to fund an exchange account, but it has zero fees, and is quite reliable. There are a variety of methods of bank transfer depending on your jurisdiction, with some being quicker than others, but it’s a surefire way to easily fund your account and should take somewhere between 1-3 business days.
2. Debit or Credit Card
Using a debit or credit card is often a much faster way to fund your account as it’s nearly instant, however, there are often much higher fees when compared to other funding methods. This is because if you use a credit card you’ll often pay a fee of over 3% to the payment processor, plus the cash advance fees on your credit card, then there’s also the possibility of an exchange rate fee. Credit cards are easy to use but come at a price. Even a debit card will often incur over 1% in fees.
3. PayPal
PayPal is a less common funding method but is quite fast and reliable when it’s available. This is doubly true if you’re funding from your PayPal balance to an exchange like Coinbase, who are probably the biggest exchange that allows PayPal deposits and withdrawals.
4. Wire Transfer
Wire transfers are like bank transfers in terms of time to process, but are only necessary if you’re funding an exchange in another jurisdiction. There should be little to no fee but there will likely be an exchange rate if you’re sending money overseas.
5. Other Methods (Cash App, Skrill, Apple Pay, ETC.)
Cash App and other similarly easy to use e-payment methods should generally have low fees or a flat fee such as 1 Euro per deposit. They’re faster than bank or wire transfers, and are a great alternative to using a credit card. The only issue is that compatibility isn’t always there.
Honorary Mention: Crypto Transfer
If you already own crypto then it’s one of the fastest ways to fund an exchange account. Bitcoin will likely be the slowest method, taking about an hour, but most other crypto deposits will take under 30 minutes. There should be no deposit fees for using crypto to deposit, but there will be the transaction fee required to send the funds to the exchange (network fee), which will depend on the crypto used.
What is the Process of Funding an Exchange Account?
In order to fund your exchange account, follow these basic steps:
- Log in to your exchange account
- Locate the deposit button, likely either directly on the landing page or on your account dashboard
- Click “Deposit” and then choose the method with which you’re going to fund the account
- Follow the instructions provided by the exchange such as the email address used for an e-transfer, or banking info required for a bank transfer. If using a credit/debit card you just have to enter your card information
- Send the funds or complete the purchase, then wait until you get an email from the exchange saying your deposit is complete
- That’s it! You can start using your funds.
Frequently Asked Questions About Crypto Exchange Deposits
A crypto exchange account is your account on an exchange platform such as Binance. It’s used for making deposits, withdrawals, and trades on the exchange.
Funding a crypto exchange account can be nearly instant to a few business days. It depends on which method you use.
There are generally no deposit fees for funding an exchange account if you use a bank transfer, e-payment method, or crypto. However, other methods such as using a credit card often incur cash advance fees and fees of over 3% by the payment processor.
Yes, it’s safe to fund a crypto exchange account assuming the exchange is reputable and regulated.
You cannot fund an exchange account with cash unless you’re depositing that cash into a bank account or e-payment account and then using that method to fund your exchange account.
