Monzo Bank is a popular online bank based in the United Kingdom that provides banking and financial services to over 5 million customers. However, Monzo does not currently allow direct crypto purchases through their banking platform. Let’s walk through the process for you to buy crypto with Monzo Bank, using a regulated crypto exchange for secure transactions.
Summary
To buy crypto with Monzo Bank directly is not a common practice, as the bank does not currently offer this service. Instead, Monzo customers typically use specialized cryptocurrency exchanges or platforms to buy digital assets. We will focus on understanding and managing crypto investments alongside Monzo’s traditional banking services, providing insight into external platforms for purchasing cryptocurrencies.
Based on our expert research, the top recommended exchange for Monzo users is eToro. eToro is regulated in the UK by the Financial Conduct Authority (FCA) and allows fast GBP deposits from Monzo accounts. You can visit eToro’s website here to get started.
The Growth of Crypto in the UK
Cryptocurrency adoption is rising rapidly in the United Kingdom. According to a February 2022 survey by the UK Financial Conduct Authority, around 2.3 million adults now own crypto assets, a significant increase from 1.9 million in 2021. The FCA estimates crypto ownership could double again in the next year.
Bitcoin and Ethereum remain the most popular cryptocurrencies held by UK investors. However, new altcoins like Solana, Cardano and Polkadot are also gaining traction. The growing crypto market is prompting more UK banks and financial institutions to explore ways of engaging with digital assets.
Key Facts and Statistics
- Monzo generated £355 million in revenue in 2023, a 130% increase from 2022.
- Monzo reported a £116 million net loss in 2023, compared to £119 million in 2022.
- Monzo had £5.94 billion in total customer deposits in 2023.
- The number of Monzo users reached 7.4 million in 2023, up 27.5% from 2022.
- In 2023, there was £33.6 billion in total card spend by Monzo users, a 37.7% year-over-year increase.
- Monzo was valued at £3.7 billion in its latest 2021 funding round.
- Monzo has raised £743 million in total funding since launch.
- 75% of Monzo users are under the age of 34.
- The average Monzo customer deposit increased from £142 to £359 from 2018 to 2019.
- Monzo employs around 1,500 people in the UK and US as of early 2022.
Step-by-Step Guide to Buy Crypto with Monzo Bank
Follow these steps to easily purchase cryptocurrency as a Monzo Bank user:
Step 1: Sign Up for an eToro Account
eToro is currently the best cryptocurrency exchange for Monzo users due to its FCA regulation, low fees, and support for GBP deposits. Visit eToro’s website and register for a new account. Provide your personal details during signup.
Step 2: Verify Your Identity
Complete eToro’s Know Your Customer (KYC) checks by uploading an ID document like a passport or driver’s license, along with proof of address. Verification can take 1-2 days.
Step 3: Deposit GBP into eToro
Once verified, navigate to eToro’s deposit screen. Select “GBP” as your currency, then choose a deposit method linked to your Monzo account, like bank transfer or debit card.
Step 4: Buy Cryptocurrency
Use the GBP funds to purchase your desired crypto assets like Bitcoin, Ethereum, Litecoin, etc. You can buy, sell or hold cryptos on eToro’s easy-to-use platform.
What is Monzo’s Stance on Crypto?
While Monzo does not directly offer crypto trading, it recognizes the growing demand among customers. By permitting transfers to regulated UK crypto exchanges, Monzo enables customers to safely access digital asset investment opportunities while maintaining regulatory compliance.
However, Monzo does occasionally block crypto-related transactions if they perceive higher risk, as part of their general risk management policies. Overall, Monzo maintains a neutral stance on crypto – neither outright banning it nor directly integrating it.
What If Monzo Declines My Crypto Purchase?
If Monzo blocks your transaction to a crypto exchange, you have a couple options:
- Open an account at another UK bank that is more crypto-friendly, such as Revolut or Starling Bank. You can use this account just for crypto purchases.
- Use a crypto exchange that accepts other GBP transfer methods compatible with Monzo, such as Faster Payments, PayPal, or debit card deposits.
- Consider periodically transferring funds from Monzo to your preferred crypto exchange to avoid large blocked transactions.
Conclusion
While Monzo Bank currently does not allow direct crypto trading, customers can reliably invest in Bitcoin, Ethereum, and other major digital currencies by using a regulated UK crypto exchange. eToro provides a secure and cost-effective platform for Monzo users to fund accounts with British Pounds and access the cryptocurrency market.
By following the proper steps, Monzo customers can safely incorporate crypto into their investment portfolio. As always, only invest funds you can afford to lose and continue learning about crypto assets.
Frequently Asked Questions
Does Monzo allow crypto purchases directly?
No, Monzo does not currently allow customers to buy crypto directly through their platform. You need to use a third-party exchange.
What is the best UK crypto exchange for Monzo users?
Based on fees, regulation, and deposit options – eToro is generally the best fit for Monzo account holders who want to buy crypto.
Can I transfer GBP from Monzo to crypto exchanges?
Yes, Monzo allows transfers of British Pounds to regulated UK crypto exchanges like eToro. This provides a way to fund a crypto purchase.
What verification is needed on eToro?
eToro requires ID verification, such as a passport or driver’s license, along with proof of address. Verification takes 1-2 days in most cases.
Does eToro have trading fees?
eToro charges a competitive trading fee structure with spreads around 1% on crypto trades. There are no commissions.
