Hate the banks? How to buy, trade, and cash out crypto if you don’t have a bank account

Unbanked means not having a bank account. The reasons for this can be the requirements of banks to have a lot of money to deposit, high fees, expensive maintenance, and other expenses. Also, among the barriers may be the lack of a valid ID or the inability to get to a bank branch (e.g., the person is disabled or has guardianship). Also, a person may not trust banks or the government. A user nicknamed platniumperson shared his advice on Reddit. He claims that he hasn’t had an account at the bank since 2008.

Doing cryptocurrency transactions without a bank account is possible using:

• cryptocurrency ATM,
• P2PPeer-to-peer is a type of cryptocurrency exchange method that allows traders to trade directly with one another without the need for a centralized third party to facilitate the transactions.,
• prepaid card,
• to use local cryptocurrency rewards. For example, by running various errands or tasks.

How to cash out cryptocurrency without a bank account:

• buying goods and services directly with cryptocurrency.
• Buying a prepaid card with cryptocurrency. But it’s worth checking all the terms and conditions carefully. Otherwise, you could be cheated.
• Most exchanges have debit cards if you have no problems with KYC (the documents are valid).

Important nuances:

• A prepaid card is a debit card linked to a bank account. However, unlike a regular debit card connected to the holder’s checking account, a prepaid card is linked to a special account into which the cardholder cannot deposit money, only withdraw it. Some cards allow for a refund. Otherwise, the store must give you cash or another prepaid card.
• When you use an exchange card, your cryptocurrency becomes not yours and can be frozen, as can your bank account.
• It’s almost impossible to freeze a prepaid card (especially if you haven’t gone through KYC).

If you want to know more about cryptocurrency ATMs, we have already written in detail about how they are built and how to use them. Cryptocurrency ATM or Bitcoin ATM (BTM) allows you to buy or withdraw BTC and altcoins. You don’t need a bank card to use it, just a cryptocurrency wallet.

Also, if you decide to use a crypto-exchange card, it is worth reading this article. In it we have collected the most popular and large platforms, and we list all the pros and cons of each of them.