Topic: Avoiding banking challenges (how do you buy crypto?) - page 2. (Read 385 times)

Guys, I think I might be okay to buy crypto even via my bank but could do with your advice.  It appears as though my country hasn't banned crypto outright.  Read this especially the bit I've put in bold:

... has banned the sale of cryptocurrency derivatives products to retail investors ... the regulator declared that the sale, marketing, and distribution of any derivatives including contracts for difference, options, futures, and exchange-traded notes (ETNs) by any local or foreign company is banned.  The Authority said derivatives based on digital assets like bitcoin (BTC) or ethereum (ETH) are ill-suited for retail consumers due to the harm they pose ... the ban does not affect the trading of virtual currencies such as bitcoin, which are not regulated by the Authority ...

And this:

... you can still buy Bitcoin and other cryptocurrencies.  The Authority isn’t stopping people buying bitcoin or other cryptocurrencies directly, but it’s banning the sale of products which track cryptocurrency prices.  These include unregulated transferable cryptoassets which are tokens but not “specified investments” or e-money ...

Both extracts are from reputable websites not just someone's random blog.  In my ignorance I had thought 'derivatives' covered the basic buying of bitcoin, ethereum etc, however if I'm reading the above correctly, I can legally still buy within my country, would you agree based on the above?

Note my plan would basically be to buy crypto over maybe 24-36 months using dollar cost average approach then sit on it for x years.  I'm not interested in regularly trading crypto or using it for other purposes e.g. buying stuff.  I think however I still need to be cautious around my bank as I've read some people have run into difficulties, even though it's only credit card transactions the bank has banned.  I'm also reading some horror stories when people try to get a property mortgage or remortgage.  Some banks are rejecting applications when they discover the applicant holds crypto

Also, sorry if a stupid question, if I simply intend to buy crypto and sit on it, can I complete buying transactions with the likes of Kraken?

I'm guessing you are from Nigeria? Anyways you should go back to binance exchange, it's what people from Nigeria are using presently, yea binance exchange have p2p escrowed set up for people like yourself, you get transfer from another nigerian like yourself and you send coins to them, binance exchange will be the middle man

People from banned countries have no other choice so they are still trading on platforms like LBC with no issues, all you need to do is to find your trading partner who is having good reputation and less negative feedback in the recent history.If you care about your bank details then you can't trade at all.

If the status is ban then price is going to be lot higher when you are buying with fiat, and you can check this with any p2p platforms.

Thank you all for your replies to my questions.  On further investigation, it appears as though the authority responsible for financial activity in my country has indeed banned the buying and selling of cryptocurrency for retail consumers.  The likes of eToro is registered in my country with the authority and their terms indicate cryptocurrency transactions with customers from my country will not be fulfilled, so I can't for example use eToro.  It's slightly confusing (hence why LOTS of research is required beforehand) in that many companies still seem to advertise the buying and selling of cryptocurrency for consumers in my country, stating the transaction can be completed via credit or debit card.  For many (most) consumers, this is simply no longer possible.  In short, the buying advice on many websites seems to be outdated for my country.  No doubt I could try it and see if I'm successful (lucky), however I don't want to risk my bank account in this way.

So it looks as though my options will be limited to first transferring my funds to a third party as suggested in your replies e.g. Bank > Revolut > Exchange or to consider P2P.  I know I'm stating the obvious here, however I want to identify the most secure and straightforward way to buy cryptocurrency without unnecessarily alerting my bank.

It's interesting because some experts in the financial sector have suggested my country's outright ban on crypto is unwise, because it moves investors away from legitimate platforms such as eToro onto platforms that may offer less security, because investors still want to invest in crypto and will look for ways to circumvent the national ban.

You have to give your bank details to your trade partners and I don't know how secure your trading history and bank details will not be leaked. It can be leaked by exchanges, third party companies that provide KYC services or by your trade partners.

You are not correct that on P2P market or OTC market, you can get higher or lower price than on centralized exchanges. It depends on the offer you choose to open your trades.

So what is the status of cryptocurrencies in your country?

Some bank block their customers even when the cryptocurrency is legal in their jurisdiction then the reason could be money laundering, in this case if you use any local exchange or sites like e-toro then you will be fine.

If cryptocurrencies are completely banned in your country then the only option for you is to trade via peer to peer trading platforms like LBC and Paxful which needs KYC or decentralized peer to peer trading platforms like Localcryptos where you no need to provide any information but the prices are going to be higher than market price.

You have to read the law and find restrictions on crypto tradings in your nation. Do you know any restriction on cryptocurrency in your nation?

If it is not, it would come from your card (Trading history, bad record with money flow from dark markets, money laundering). I know if a card is stolen by hackers, and used to buy bitcoin with stolen fiat. If the victim files a report to police officially. Police takes actions and send freeze request to bank, your card will be frozen.

It will unfrozen only if you proved that you are victim of hacker or the stolen money will be sent back to the victim.

You can side step your bank by transferring your FIAT to a Revolut account and then transfer
those funds to your exchange.

This is my preferred method and works flawlessly.

As RickDeckard posted dont by Bitcoin directly on Revolut because its a custodial service,
you dont actually own the Bitcoin because you cannot move it off the Revolut platform.

You can also use  a PayPal service like wesellcryptos.com

https://bitcointalksearch.org/topic/--5316165

Im using Binance P2p for buying and selling my crypto if its available in your location you can try this one its very simple and easy to transact without worrying from your bank account since your transaction involves bank to bank only or other payment option available on your location thats how easy for me to exchange crypto. 

My country has also banned the conversion of Crypto-currency into your local bank account, recently but before the banned, I have always made use of peer 2 peer, it's more like a service to me, and I haven't had any reason to regret it, because I peer with trusted person that has a service on the forum, and I think peer2peer can be on some exchanges, this helps citizens of countries like man that has a ban on crypto-currency to go-by.

eToro is a established broker like many others around the globe. I see no reason for your bank to consider this as a shady activity since you're basically deciding to take part of your liquidity and use it to invest in the financial produts that are offered by eToro (that can range from stocks, Exchanged Traded Funds and others).
It doesn't make sense for your bank to ask you where the funds came from (because they know that they came from eToro in this case). In my country, for example, you are responsible for presenting your capital gains at the end of your fiscal year (whether you send the gains to your bank account or let them sit at a broker like eToro). So if you decide to cash out your investments to your local bank you should basically do the right thing and report them in your tax reports (assuming that crypto is taxable in your country - I ask you to look for further information on this one).
At the end of the day it's your money you're talking about. If your bank starts putting restriction on how you should use YOUR money then I would seriously look for another alternative.

I advice strongly against using PayPal (or even Revolut if you're from Europe) for your crypto transactions. The reason is quite simple : They don't let you withdraw your investments (BTC, LTC for example) to a wallet of yours. So you're basically stuck with your investments in a platform that only allows you to trade in their environment which is, by itself, not the wisest decision you could make.

In your case, considering you've just arrived to this "world" I would try to create an account at established exchange and do whatever investments you have planned. The main ones are either Coinbase, Kraken or even Binance.
Whenever you can (and considering the amount invested) always try to move your investments out of any CEX (centralized exchange) you may end up using.

Hi All

I'm new to the forum although have been lurking for a while!  Hoping to start my crypto investment journey this year.

As part of my investigations into starting up, I've discovered my bank (which I don't want to leave) has banned its customers from using credit cards for crypto exchange and broker transactions.  On further investigation it seems debit card transactions are also increasingly being blocked.  Some customers have had their accounts closed which I obviously want to avoid, especially if this then affects things like credit ratings.

This got me thinking and I'd be grateful if those more knowledgeable than me could answer my questions below

1.  Brokers such as eToro trade in more than crypto e.g. stocks, currencies.  So if I transferred money directly from my bank to a company such as eToro which isn't exclusively crypto, is this likely to be flagged as a banned company from my banks perspective, or is my transaction likely to go through without any queries?  Also, if eToro is then transferring funds back into my bank account, is this likely to be queried?  I'm wondering if my bank has the right (I think they probably do?) to ask what I'll be using eToro for and/or what the incoming eToro funds were generated from.  If that question was posed to me, I wouldn't want to misinform them by saying 'oh it was trading in stocks' when in reality it came from trading in crypto.

2.  To avoid this, am I better to use something like PayPal for my crypto transactions?

3.  If you're comfortable sharing this information, what method do you use for your outgoing and incoming crypto transactions?

Thanks all