Swan Bitcoin Review: Buy Bitcoin With Bank Account

Description

Swan Bitcoin is a platform that facilitates automatic bitcoin purchases, making it a tool for steadily increasing how much bitcoin you hodl. The platform aims at being the most accessible and user-friendly way to obtain bitcoin. You can sign up for inexpensive Bitcoin purchases, and have your bitcoin automatically transferred to a wallet of your choice.

Staying close to the principles of what Bitcoin represents, Swan lets you withdraw your bitcoin upon purchase, or by regular intervals, by connecting a Bitcoin address with your Swan account. You may pick any amount in USD and any period, such as every day, week, or month. This method of dollar-cost averaging into Bitcoin helps you to incentivize saving and overspending.

Swan Bitcoin Features and Benefits

Swan Bitcoin empowers users of all levels to invest and manage their Bitcoin holdings. Here’s a breakdown of their key features:

• Savings and Automated Recurring Buys: Build your Bitcoin stack consistently with recurring buys (daily, weekly, or monthly) regardless of the market’s ups and downs.
• Instant Buys: Swan lets you purchase it instantly using your bank account.
• Swan Bitcoin IRA: Invest in Bitcoin for your retirement with Swan’s IRA option.
• Bitcoin-Collateralized Lending: High net worth investors and institutions can access dollar liquidity through Swan’s lending program. Their Bitcoin lending program uses your Bitcoin as collateral, ensuring it’s never loaned out (non-rehypothecated) for maximum security.
• Swan Business and Swan Private Client Services: High net worth investors, family offices, and businesses can access concierge services for large Bitcoin purchases, strategic tax-loss harvesting, and even Bitcoin inheritance planning.
• Swan Vault: Increase your Bitcoin’s security with Swan Vault’s collaborative multi-signature custody. This feature also simplifies inheritance planning for your digital assets.
• Advisor Services: Financial advisors can leverage Swan’s tools and support to seamlessly integrate Bitcoin into their client portfolios.

How to Buy Bitcoin on Swan

To buy Bitcoin on Swan, there are three methods available. The first method is through a Savings Plan or Recurring Buys ( dollar-cost averaging (DCA)). To make a recurring Bitcoin buy on Swan, you will need to specify the amount you want to buy in USD and the frequency (for example, daily, weekly, monthly). The advantage of dollar-cost averaging is the long-term strategy that hedges against price volatility and price swings. It also removes the emotion from trading and encourages a buy-and-hold mentality, which can end up being more profitable on the market.

To set this up, log into your Swan account, scroll down to the “Create Savings Plan” button, and choose the dollar amount and cadence for your purchases. Select your payment method, accept the terms and conditions, and activate your savings plan. Recurring purchases under $2,500 unlock after 10 days, while those over $2,500 unlock after 30 days.

The second method is Instant Buys. After logging in, click the “Buy Now” button, select the amount of Bitcoin you want to purchase, and review the purchase details. Choose your funding account and click “Buy Now” to complete the transaction. Instant purchases under $2,500 unlock in 10 days for most customers and 5 days for long-standing customers, while those over $2,500 unlock in 30 days for most customers and 10 days for long-standing customers.

The third method is Convert Now. After logging in, navigate to the deposits section and ensure you have “Cleared Deposits” available in your account, as Convert Now buys can only be executed with cleared funds. Click “Convert Now,” select the dollar amount of cleared deposits you want to convert to Bitcoin, and confirm your purchase. Your Bitcoin will be available for withdrawal after 24 hours, as Convert Now purchases unlock within 24 hours of purchase once the funds have cleared.

Can You Sell Bitcoin on Swan?

Swan Bitcoin’s current platform does not provide a direct avenue for selling Bitcoin on the front end as its primary focus lies in accumulating and holding Bitcoin for long-term investment purposes. However, if you still wish to sell your Bitcoin through Swan, you can reach out to their customer support for assistance. To initiate this process, you can submit a ticket through their web form or contact them via email at [email protected]. When contacting customer support, you’ll need to specify the exact amount of Bitcoin you wish to sell in BTC and provide the last 4 digits of the bank account where you want the USD proceeds to be deposited.

It’s important to note that there is a 0.99% fee for selling Bitcoin through Swan, and due to high transaction volumes, the processing time can take up to 48 business hours. Additionally, it’s essential to be aware of any Bitcoin tax implications associated with selling Bitcoin, as it may be considered a taxable event in your jurisdiction. For alternative options for selling Bitcoin, you might consider using Bitcoin exchanges that facilitates selling Bitcoin for USD and allows you to transfer the funds directly to your bank account.

Bitcoin Gifts and referral program

Swan Bitcoin allows users to purchase and share Bitcoin with others through their application. By sending a gift to another user, Swan will walk them through the process of creating an account and convert the dollar value of the gift into Bitcoin.

In addition, Swan also has a referral program. Anyone can join SwanForce as an affiliate. Once you join SwanForce, you get a link unique to you. Site visitors can enroll in Swan with your link. When they do so, they obtain a $10 Bitcoin incentive. Additionally, you earn 25% of their Bitcoin fees during the first year of Bitcoin acquisitions as an affiliate. There’s also a reference control panel to help you track your referrals and revenues.

Swan Bitcoin Fees

Swan Bitcoin offers a transparent fee structure as of January 2024. A flat fee of 0.99% applies to all Bitcoin purchases regardless of the method (wire transfer, direct deposit, recurring transfer, or instant purchase). This fee is deducted directly from the purchase amount. For instance, a $100 purchase would have a $0.99 fee taken out, resulting in $99.01 being used to buy Bitcoin. Your bank statement would still reflect a total debit of $100.

If you use Swan Private’s services for tax-loss harvesting (selling Bitcoin at a loss to offset capital gains), there’s a combined fee of 1.29% for both the sell and re-buy transaction. Individual Retirement Accounts (IRAs) have a monthly fee structure. For accounts under $100,000 USD, a $20 monthly fee applies. Accounts with a balance of $100,000 USD or more incur an annual fee of 0.25%. It’s important to note that these Bitcoin IRA administration fees are deducted from your linked bank account, not your Bitcoin holdings.

The good news is that Swan Bitcoin avoids several other potential fees: there are no monthly fees for standard accounts, no inactivity fees, no withdrawal fees, no overdraft fees, no custody fees, and no hidden spreads added to the Bitcoin price.

Swan Bitcoin Limits

Swan Bitcoin lLimits are increased automatically based on your purchasing history and daily limits are reset at midnight Pacific Time (PT).

Swan Referral Program ($10 Bitcoin Bonus)

Swan also has a referral program. Anyone can join SwanForce as an affiliate. Once you join SwanForce, you get a link unique to you. Site visitors can enroll in Swan with your link. When they do so, they obtain a $10 Bitcoin incentive. Additionally, you earn 25% of their Bitcoin fees during the first year of Bitcoin acquisitions as an affiliate. There’s also a reference control panel to help you track your referrals and revenues.

In which countries is Swan Bitcoin available?

Swan Bitcoin is a US service. However, international clients can also become a customer. They can fund their accounts by international bank wire, unless they have a US bank account. If you would like to cut costs, you could use a virtual bank account such as those of Revolut and Wise to make cheaper wire transfers. These accounts allow you to have US bank details.

The platform currently serves citizens of many countries, including those in North America, Europe, Oceania, and Asia. Citizens of the following countries can sign up at Swan: Bermuda, Canada, Mexico, Israel, Germany, France, Norway, Hong Kong, Italy, Brazil, Denmark, Finland, Jamaica, Colombia, Iceland, the Philippines, the Dominican Republic, Australia, El Salvador, Egypt, the Netherlands, Hungary, Poland, Spain, Switzerland, Panama, Portugal, Singapore, South Africa, as well as the majority of European countries.

Swan will not serve or expand in the following countries: Afghanistan, Belarus, Burundi, the Central African Republic, China, Cuba, the Democratic Republic of the Congo, Ethiopia, Iran, Iraq, Kosovo, Lebanon, Libya, Mali, Myanmar, Nicaragua, Nigeria, North Korea, Russia, Somalia, South Sudan, Sudan, Syria, Ukraine, and Yemen.

Is Swan Bitcoin Legit and Safe?

Swan takes data protection as well as traffic seriously. Your information is secured with military-grade file encryption; all traffic means the market standard encryption. Swan likewise uses the Facility for Web Security Benchmarks to set its security requirements. Customers will also discover that Swan desires you to take control of your Bitcoin asap, indicating you are motivated to move your Bitcoins to your cold wallets. And your Bitcoin will be stored with Fortress.

It’s worth noting that Swan Bitcoin’s custodian, Fortress, experienced a hack in 2023. Although Swan asserts that no user funds were compromised, the incident sparked concern within the Bitcoin community. There’s considerable unease surrounding Fortress’s overall business practices and senior management.

Is Swan Bitcoin a Good Exchange for You?

Swan Bitcoin can be a good option for investors seeking a safe and user-friendly platform to buy and hold Bitcoin. Launched in 2019, Swan focuses solely on Bitcoin, making it ideal for Bitcoin purists. They suport various buying preferences such as recurring buys (perfect for Dollar-Cost Averaging) and instant purchases. Notably, Swan offers zero fees on your first $10,000 in Bitcoin purchases, making it an attractive option for beginners on a tight budget. After that, a flat 0.99% fee applies to all purchases. For security conscious users, it is important to know that Swan supports auto-withdrawal to your own self-custody wallet.

However, it’s important to consider some limitations. Swan Bitcoin is a centralized exchange requiring KYC (Know Your Customer) verification, meaning it’s not as anonymous as some peer-to-peer, non KYC exchanges. Additionally, they don’t currently support the Lightning Network, a faster and cheaper way to transact Bitcoin. While Swan offers perks like free Bitcoin withdrawals and automated withdrawal options, if you are seeking complete privacy or advanced functionalities like the Lightning Network might need to look elsewhere.