The Ultimate Guide To Investing In Bitcoin With Xapo

Xapo Bank is a private bank headquartered in Gibraltar, which operates globally and is licensed as a virtual asset currency provider by the Gibraltar Financial Services Commission. Xapo was founded in 2013 by Wences Casares and COO Federico Murrone with the aim of making the bitcoin currency more secure and accessible. The company originally established a bitcoin wallet service that combined cold storage vaults with a bitcoin-based debit card. The Xapo Wallet operates through a mobile app and online and includes the ability to transfer funds to and from the Xapo Vault. Xapo Bank provides unparalleled security for your Bitcoin with its status as a fully licensed bank and Bitcoin custodian. The bank uses decentralised multi-party computation (MPC) technology and a global network of hidden bunkers protected by armed guards to keep your Bitcoin safe. Xapo Bank also offers a BTC savings account that allows you to earn interest on your Bitcoin and access your savings anytime, anywhere.

Xapo Bank: Crypto-Enabled Banking

Xapo Bank is a fully regulated bank based in Gibraltar that bridges the gap between crypto and traditional finance. It was built in 2013 to be a safe place for your Bitcoin, with unparalleled security and best-in-class protections. Xapo Bank is the world's first Bitcoin-enabled bank to fully integrate traditional finance with crypto, allowing members to benefit from the safety of a US Dollar bank account and the flexibility of blockchain payments, all in one powerful app.

With Xapo Bank, you can send and receive BTC, stablecoins, and traditional currency from one account. The bank offers a seamless and secure way to invest in both USD and crypto, with a transparent 1% fee on every buy and sell trade. Xapo Bank also provides a Mastercard with a 1% reward in BTC on all spending and good conversion rates for foreign currencies.

Xapo Bank's security features include 2FA and biometrics, as well as top-tier protocols such as decentralised multi-party computation (MPC) technology to protect against hackers, phishing, and internal breaches. The bank also has a robust Deposit Guarantee Scheme, demonstrating its commitment to security and customer trust.

Xapo Bank offers its members the ability to secure and grow their wealth with competitive interest rates. You can earn up to 1% annual interest on your BTC, paid out daily, and 4.1%-4.6% annual interest on your USD. The bank also provides access to global financial markets, allowing you to diversify your portfolio with US stocks and a handpicked selection of cryptocurrencies, including Ethereum, Cardano, and Polygon.

With Xapo Bank, you can enjoy the convenience of a banking app that blends the power of crypto with traditional banking, providing unparalleled flexibility and security for your financial needs.

Xapo's Bitcoin Interest Mission

Xapo Bank's Bitcoin Interest Mission is focused on helping its customers grow their Bitcoin savings and wealth. The bank offers a BTC savings account that allows customers to earn interest on their Bitcoin holdings, with interest paid out daily. This sets it apart from traditional savings or investment funds, where generating interest on digital assets like Bitcoin can be challenging.

Xapo Bank is committed to exploring new methods and strategies to help its customers grow their balances confidently. They are taking the lead by using their own Bitcoin reserves to test and perfect interest-generation strategies before introducing them to customers. This hands-on approach ensures that the strategies are not just tried and tested but also tailored to support and amplify the customer's growth journey.

The bank's exploration involves two main paths: Institutional Opportunities and Decentralized Finance (DeFi) Protocols. By assessing collaboration opportunities with institutional partners, Xapo can offer its customers yield-generating opportunities, including lending programs and emerging financial instruments in the Bitcoin finance realm. At the same time, the bank carefully explores the range of innovative protocols offered by DeFi, balancing potential returns with the inherent complexities of the DeFi ecosystem.

Xapo Bank understands that the economic climate is ever-evolving, and the landscape for Bitcoin is constantly reshaping. As a result, the bank remains agile and adapts to market changes. This includes occasionally adjusting interest rates to reflect current market conditions, always with a focus on maximizing the interest generated for its customers.

The bank is committed to passing on the bulk of the gains to its customers, ensuring their wealth is secured and expanded. The amount retained by the bank is used to continuously upgrade and refine the services offered, benefiting the customers' overall financial journey.

With its Bitcoin Interest Mission, Xapo Bank aims to bridge the gap between traditional banking and the innovative world of Bitcoin, providing its customers with a unique combination of security and earning potential.

Xapo Bank Card: Spending and Cashback

The Xapo Bank Card can be used to pay for goods and services at participating merchants that accept the card programme being used. The card can also be used to withdraw money from ATMs. It is important to note that Xapo Bank does not guarantee that a particular merchant or ATM will accept the card, so it is advisable to check with the merchant or ATM operator before attempting a transaction.

The Xapo Card is linked to your Xapo Account, allowing you to spend the balance in your account. You can use the card to make payments or withdraw cash from ATMs after activating it by following the provided instructions. The card also has a 4-digit PIN that you set during the application process and must be signed on the signature strip before use.

Xapo Bank offers a cashback program where you can earn cash or similar rewards on qualifying purchases made with your Xapo Card. The cashback will be credited to your Xapo Account if you meet the applicable requirements. It's important to note that cashback will not be earned for denied or failed transactions or any part of a purchase made with store credit, gift certificates, or other payment types. The transaction must be successful and made directly with the Xapo Card.

Xapo Bank members can earn 1% cashback, paid in satoshis, for every card transaction they make. This cashback is offered on all card transactions, including those made abroad, with no additional fees charged on foreign exchange transactions. The cashback amount will be credited to your Xapo Bank app every month.

Xapo Bank Vault: Security Features

Xapo Bank, founded in 2013, is a fully licensed and regulated Bitcoin-enabled bank based in Gibraltar. It offers a range of security features to protect its customers' Bitcoin holdings. Here are some of the key security measures provided by Xapo Bank:

• Multi-Party Computation (MPC) Technology: Xapo employs MPC technology to enhance the security of its customers' Bitcoin. MPC wallets improve security by dividing the Master Private Key into multiple shards, which are then stored in secure, secret locations worldwide. This approach mitigates risks such as hacking, phishing, and internal breaches, as a single point of compromise cannot lead to losses. Each shard is required to sign the blockchain transaction during each transfer, ensuring an additional layer of protection.
• Regulatory Compliance and Financial Transparency: As a regulated entity, Xapo Bank complies with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules, enhancing the security and integrity of its platform. The bank also undergoes annual audits by a Big Four firm and evaluations by the Gibraltar Financial Services Commission to maintain robust defences against cyber risks, fraud, and financial crime.
• Bitcoin Custody and Reserves: Xapo Bank holds over 26,000 Bitcoins in reserve, protecting its customers' assets against system hacks, third-party theft, or even the bank's bankruptcy. The bank does not lend or utilise its customers' Bitcoin, ensuring that their holdings remain secure and accessible at all times.
• BTC Vault: Xapo offers a BTC Vault, a separate wallet with additional security features. This vault provides extra layers of security, such as PIN confirmation and 48-hour transfer delays, ensuring that balances are kept entirely separate from the customer's BTC Account, Savings account, and card.
• Standard Security Features: In addition to its advanced security measures, Xapo Bank also provides standard security features such as two-factor authentication (2FA) and biometrics, adding further protection to its customers' accounts.
• Global Network of Hidden Bunkers: Xapo also prioritises physical security by maintaining a global network of hidden bunkers protected by armed guards. This measure ensures the safety of its customers' Bitcoin holdings in the real world.

Xapo Bank: Stock Market Access

Xapo Bank is a fully regulated, private bank based in Gibraltar, offering its services globally. It was founded in 2013 by Wences Casares and COO Federico Murrone, with the aim of making Bitcoin more secure and accessible.

Xapo Bank offers its members access to US Dollars and Bitcoin in one place: the Xapo Bank app. As a crypto-enabled bank, it successfully bridges the gap between traditional banking and crypto.

With Xapo Bank, you can access the stock market and invest in blue-chip US-listed companies, such as Adobe and Tesla. You can also buy fractional shares. This can all be done from the convenience of the Xapo Bank app, without the need for a separate account.

Xapo Bank provides an easy and affordable way to invest in the stock market, particularly US stocks. With as little as $10, you can buy and sell whole or fractional stocks. The app allows you to manage your portfolio and grow your wealth, offering a seamless combination of traditional banking and crypto.

Xapo Bank's security measures are also noteworthy. They offer decentralised multi-party computation (MPC) technology and a global network of hidden bunkers protected by armed guards to safeguard your investments.

Frequently asked questions