How to Buy Crypto with Zelle [2024]

Summary: Zelle Pay does not offer cryptocurrency investment services directly on its platform. Nonetheless, Zelle customers in the US can use their funds to purchase digital assets such as Bitcoin (BTC) and Ethereum (ETH) through cryptocurrency brokers like Interactive Brokers and deposit USD using Zelle Pay.

Can you buy crypto with Zelle? 

Yes, you can buy crypto with Zelle, but you need to connect to a licensed cryptocurrency exchange that accepts USD through the Zelle mobile app. As mentioned above, it is because Zelle does not offer crypto trading or the buying and selling of Bitcoin directly through its platform.

How to buy crypto with Zelle?

For buying Bitcoin or other cryptocurrencies with Zelle Pay in the US, consider using Interactive Brokers. They’re a trusted platform offering a suite of investment options, including some cryptocurrencies. With Interactive Brokers, you get access to advanced trading tools and analytics, enhancing your crypto investment strategy.

How to buy crypto with Zelle: Step-by-Step

You can get started in minutes with four simple steps:

• Step 1: Create an account on Interactive Brokers and complete your verification;
• Step 2: Enter the USD amount you want to deposit on the Interactive Brokers platform;
• Step 3: Connect Zelle Pay to deposit your selected fiat currency;
• Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

Disclaimer: Interactive Brokers LLC is regulated by NFA but note that NFA’s oversight doesn’t extend to virtual currencies or their exchanges and custodians. Trading digital assets like cryptocurrencies carries high risks suitable only for those who can afford potential losses. Details on these risks are available in IB‘s “Disclosure of Risks of Trading Digital Assets.” IB doesn’t execute or custody digital assets; such transactions and custody are solely through Paxos Trust Company or Zero Hash LLC, where assets are not SIPC protected.

About Zelle

Zelle is a US-based peer-to-peer payment app that allows users to send and receive money directly from their bank accounts. The service enables you to electronically transfer funds from your bank account to another registered user’s bank account directly through your banking app (for Zelle-participating financial institutions) or the Zelle app. To send money via Zelle, you don’t need to know the recipient’s bank account details, only their phone number or email address. 

How does Zelle work?

Zelle is a person-to-person payment service that allows users to send and receive money directly from their bank account using their mobile app or online banking platform.

You can sign up with Zelle through the bank’s mobile app or online platform, where you can link your bank account. Unfortunately, Zelle doesn’t accept most prepaid cards; the only prepaid cards the platform can accept are those issued by banks in the Zelle network, such as the Chase Liquid Card or the PNC Smart Access Card. Similarly to PayPal or Neteller, Zelle acts as a third party payment platform that allows sending and receiving money directly to and from your bank account.

To send money, you simply need the recipient’s email address or phone number, select the amount you want to send, and confirm the transaction. The recipient will receive the money in their bank account within minutes if they are already signed up with Zelle. If not, they will receive an email or text message with instructions on how to enroll.

To receive money, you simply need to enter your email address or phone number. Once the sender has sent the money, it will be deposited directly into your bank account. It is important to note that Zelle transactions are typically irreversible, so it is important to make sure you are sending money to the correct recipient.

For example, First Republic Bank has partnered with Zelle to enable their customers a convenient payment method to send and receive money quickly between their family and friends who are using different banks.

Zelle crypto policy

While the US bank doesn’t provide access to crypto trading directly from its platform, Zelle customers can use Zelle Pay to buy digital assets through regulated exchanges. 

Though Zelle doesn’t have any clear guidelines regarding the purchase or sale of cryptocurrencies, each financial institution that uses Zelle may have its own crypto policies in place. As such, checking with your bank first to see if they allow cryptocurrency transactions before using Zelle Pay to buy digital assets is recommended. 

That said, since Zelle enables users to send and receive money using only an email address or phone number, it will be more difficult for banks to track and block cryptocurrency transactions like with more traditional methods such as wire transfers.

Zelle crypto trading fees

Cryptocurrency trading often involves commission fees based on the trade value, spreads and/or markups. Be sure to consider any custody fees or additional charges when choosing a trading platform.

How to buy crypto safely

As a relatively new technology, cryptocurrencies are highly speculative and subject to extreme price volatility, making them much riskier than traditional asset classes such as stocks or bonds. In addition, fraud and cybercrime in the crypto sphere are particularly rampant, putting both seasoned and inexperienced investors at risk.  

Furthermore, although cryptocurrency broker-dealers in the US are required to register with FINRA, which imposes several requirements on them, including implementing and maintaining both anti-money laundering (AML) and customer identification programs (CIPs), crypto assets themselves are not regulated. 

Fortunately, there are steps you can take to ensure you’re being careful when buying crypto. Let’s look at a few tips on what you should do when getting started with digital assets and how to best protect yourself and your money.

How to buy crypto safely – tips

• Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks are; 
• Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
• Choose a reputable exchange: Ensure the exchange is licensed by the appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where your money is kept and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
• Secure your account: Use two-factor authentication and a strong password to protect your account;
• Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
• Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
• Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Couldn’t buy crypto with Zelle? Check out our list of other banking guides and find your suitable bank.

FAQs: 

Can you buy crypto with Zelle?

While Zelle doesn’t offer crypto trading directly through its own platform, customers can use licensed third-party crypto brokers to buy digital assets with their Zelle account.

How to buy crypto with Zelle?

You can buy crypto with Zelle Pay through a licensed third-party cryptocurrency platform.

What crypto exchanges does Zelle allow?

Customers can connect their Zelle account to a FINRA-licensed cryptocurrency exchange to buy crypto. 

What is Zelle’s crypto policy?

Zelle’s crypto policy allows its customers to use its services to buy, sell and trade digital assets through regulated exchanges. 

How does Zelle work?

Zelle is a third-party payment platform, a link between banks. To send money with Zelle, you need the recipient’s email address or phone number, select the amount you want to send, and confirm the transaction. The recipient will receive the money in their bank account within minutes. If they still need to sign up with Zelle, they will receive an email or text message with enrollment instructions.