How to Buy Bitcoin and Crypto with Ally Bank in 2023

Having started in 2009 with the introduction of Bitcoin, cryptocurrency has continued to spread its tentacles into all regions of the financial system. It is fast becoming an established investment option for many investors due to its popularity in the last decade, offering a juicy Return on Investment (ROI) challenging to harvest outside the crypto market.

What Is Cryptocurrency?

Cryptocurrency is usually currency in a digital or virtual format that is cryptographically secured; This renders it almost impossible to counterfeit. Underlying cryptocurrency is blockchain technology, a distributed ledger enforced by a dispersed network of computers. The fact that cryptocurrencies are often not issued by any central authority makes them potentially impermeable to manipulation by governments or other third parties.

Read more: Top 3 Ways to Buy Bitcoin with Apple Pay Instantly in 2023

5 Ways to Choose a Cryptocurrency Exchange

The need for a valid and reliable exchange when trading cryptocurrency is paramount either to a crypto amateur taking first steps into the world of digital assets or an expert looking for advanced trading features; Selecting the right cryptocurrency exchange is crucial. Below are a few important factors to consider when choosing an exchange:

a) Security:

This is a top priority, and crypto traders are advised to search for platforms that make use of high-standard security measures, including Two-Factor Authentication (2FA), cold storage for customer cash, and encryption. Verify the exchange’s track record to be sure there haven’t been any significant security lapses in the past.

b) User Interface and Experience:

For newbies, an easy-to-use interface is of great importance. The platform should host an easily relatable interface; This should support easy navigation and execution of trades. Other features to look out for are; Real-time market data, order books, and several charting tools. Exchanges with configurable user interfaces and access to a wide range of trading tools may be preferred by experienced traders.

c) Liquidity:

This refers to the ease with which a customer can either buy or sell cryptocurrencies at the desired price. Tighter bid-ask spreads on trading platforms with more liquidity lessen the impact of trading commissions and slippage. Trading volume and order book depth are good indicators of the liquidity of an exchange.

d) Trading Fees:

Another important factor to consider is the fee structure of the exchange. This fee structure varies, with some platforms charging a percentage fee per trade, while on the other hand, some have a fixed fee per transaction.

e) Regulatory Compliance:

Users are to verify the viability of exchanges and their conformity with applicable laws and necessary permits for seamless operation in that region. This conformity fosters trust in the authenticity of the site and safeguards user payments. Exchanges that have completed external audits or possess security certifications provide another level of credibility.This article provides an all-inclusive informative guide for cryptocurrency amateurs and experts on how to purchase Bitcoin and other cryptocurrencies with Ally Bank through the eToro cryptocurrency exchange.

Creating an Account on eToro

To get started, the first step is to create an account on eToro. Head to their website and select the ‘Join Now’ option to begin. You’ll need to provide some personal details like name, email, and phone number. A strong and unique username and password would be required to keep the account secure. After entering the required details, simply click on the ‘Create Account’ button. The user will then need to verify both email address and phone number. Documents submitted will be reviewed for account verification by the platform within a few business days.

Funding the Account

After successful completion of account verification, users can fund it via their Ally Bank account. To do this, sign in to your Ally Bank account and go to the ‘Transfers’ section. Select ‘External Transfers’ and input the amount to be transferred to eToro.

Afterwards, visit eToro and click on the ‘Deposit Funds’ button. From here, choose ‘Bank Transfer’ as the payment option and comply with the directions to finish the transfer.

Once the account is funded, cryptocurrency transactions can be enacted. 

Once your account is funded, you can start buying cryptocurrency. Navigate to the eToro dashboard and choose the cryptocurrency you wish to purchase. To invest a certain amount, click the “Trade” option and enter the desired amount.

About Ally Bank

Ally Financial Inc. is a top 25 United States financial holding company that renders financial products for individuals, companies, auto dealers, and corporate customers. Ally Bank, a subsidiary of Ally Finance, is an online bank that provides digital financial services. It is renowned for its offer of competitive rates, low transaction fees, and no account balance requirements.

The history of Ally dates as far back as 1919, before a major revamp in 2009 before undergoing a significant transformation in 2009 with a distinctive brand, a revolutionary strategy, and an unwavering devotion to its clients.

Ally Bank also makes provision of funding capital for equity sponsors and middle-market businesses. Additionally, it has one of the largest full-service car finance businesses in the country, an additional vehicle-focused insurance firm, and a developing wealth management and brokerage platform. 

Ally offers credit cards, investment accounts, mortgages, auto lending, personal loans, and checking and savings accounts. The customer service at Ally Bank is excellent.

While Ally Bank does not have a direct trading option available to offer cryptocurrency trading, it makes provision for its customers to make investments in cryptocurrencies via brokers accredited by the Financial Crimes Enforcement Network (FinCEN).

Ally Bank’s Cryptocurrency Policy

The bank has several options available to its customers to aid exposure to crypto markets; Some of these are coin trusts, Bitcoin futures, and cryptocurrency ETFs. It must, however, be noted that they cannot trade cryptocurrencies like Bitcoin or Ethereum directly through their accounts on the platform. Fortunately, Ally Bank crypto users can engage in such cryptocurrency-related transactions and investments through their Ally online banking account to deposit or withdraw funds to and from regulated crypto exchanges.The bank advises customers who are interested in the cryptocurrency market to treat it as a speculative market and take into account both their investing objectives and the possible risks involved. They advise choosing a reputable broker, like eToro, and making sure customers comprehend the terms and circumstances as well as any fees or expenses involved before immediately buying or selling cryptocurrencies.

Frequently Asked Questions

Can I Trade Crypto From Ally Bank Through Ally Invest?

Customers cannot directly trade cryptocurrencies with Ally Bank but can explore the crypto market in other ways: 

• Investing in cryptocurrency using funds like Grayscale Bitcoin Trust (GBTC) and Orsprey Bitcoin Trust (OBTV).
• Investment funds that own cryptocurrency futures, such as ProShares Bitcoin Strategy ETF (BITO).
• Businesses engaged in the cryptocurrency industry include Coinbase (COIN) and PayPal (PYPL).

It is to be noted that these are samples and not suggestions, as trading should be by personal preferences.

Is Ally Bank FDIC Insured?

Ally Bank is FDIC-insured with registration number FDIC No. 57803. The federal government insures banking commodities from Ally up to $250,000 per depositor for each type of account ownership. This ensures financial security in the case of bank failure.

How Can I Create an Account with Ally Bank?

Opening an account with Ally would require a social security number, full name, street address, and date of birth. Registration is usually done within a short time frame, estimated at five minutes.