Are you wondering if buying a bitcoin with your credit/debit card is easy or difficult, or you got stuck while trying to buy a bitcoin? This is what you should know about bitcoin.
Bitcoin is a digital currency and can also be considered as an alternative central bank.
Although not all countries accept Bitcoin as a means of payment, it is widely recognized in the world as providing lower transaction fees than other online transactions.
Bitcoin is a valuable currency which in today’s time is very much accepted as a medium of payments.
Created in January 2009 by Satoshi Nakamoto, Bitcoin is a decentralized digital currency with tremendous high. Since the launch of Bitcoin, the market has experienced high growth and also a great fall, but this should not discourage you from buying as the 1btc is $63701.50.
Bitcoin makes use of a decentralized ledger system also known as blockchain, for helping store and trade Bitcoins.
Generally, Bitcoin is safe as all of its transactions are verified by a meteoric amount of computing system through a mining process.
This article will enable you to clearly understand how to buy bitcoin with a credit or debit card.
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How to Buy Bitcoin with Credit or Debit Card?
You can buy a bitcoin with your credit or debit card, and these are a few processes you need to go through in order to buy a bitcoin without falling into the wrong hands.
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Step 1
The first step to being a bitcoin owner is by creating an account with a trustworthy platform.
Having signed up for a cryptocurrency exchange will allow you to be active enough and also enable you to hold, sell and buy bitcoins. As a new user, it is advisable to create your own personal wallet.
Types of Wallet
A personal online wallet can be either, cold or hot wallet.
1. A cold wallets is also regarded as a hardware or offline wallet and the main use of a cold wallet is for safekeeping your private details even when you’re not active online. This can create safety because these wallets provide the private keys to your coins with no Internet connection.
2. Hot wallet: is quite similar to the cold wallet but different in the sense that, a hot wallet is an online wallet that works on Internet-connected gadgets like smartphones or computers. With the hot wallet, they generate private keys based on an Internet connection.
Step 2
Your next step is to choose a crypto exchange platform where you can buy and sell your bitcoin. It is crucial to conduct your own personal research as some of these Crypto exchanges participate in fraudulent activities.
A Crypto exchange platform enables traders to trade/exchange one cryptocurrency for another or buying of bitcoin with a credit or debit card using fiat currency.
Step 3
Here are a few things that will be required of you when choosing a payment method: you’ll need some of your personal information/documents, such as your name, email address, passport, and other important information relating to the terms of the exchange platform.
Step 4
Once you’ve completed your registration on the platform of your choice, it will require you to verify your account.
Step 5
After verifying your account, you need to input your account details for buying and selling of bitcoins and confirm your details carefully.
The last step is to Place your order and Buy Bitcoins.
What to look out for when choosing a crypto exchange
1. You need to check how genuine and safe the crypto exchange platform is.
2. Look out for the type of security they make use of.
3. The available payment options.
Where You Can Buy your Bitcoin?
There is multiple online cryptocurrency exchanges that will enable you to trade and buy bitcoin, and you can also buy from a friend/family who own bitcoins directly.
Literally, Bitcoin is a digital currency that is stored securely as a digital asset. You can buy your bitcoin from:
1. Bitcoin ATMs
Bitcoin ATM is a stand-alone device that enables public users to buy or sell bitcoin or other cryptocurrencies.
Members can insert cash into the Atm and use it to buy bitcoin that is then transferred to online wallets for other users.
Bitcoin ATMs work solely on the Internet connection and often make use of QR codes to transfer tokens to digital wallets.
2. Peer-to-peer Crypto Exchanges
Peer-to-peer exchange services provided a direct connection between users.
P2P exchange is managed by a distributed network of computers in order to exchange specific assets, data, information, between users or groups of persons without the involvement of a central authority.
Here is platform that offers a P2P exchange; BitValve Exchange, Bitcoins Exchange, BitValve Exchange, LCS Exchange, WazirX Exchange, and others.
3. Mainstream Brokerages
Mainstream brokerages are not as popular as other P2P exchanges because of uncertainty surrounding the regulatory status of cryptocurrencies.
One of the famous exchange platforms that offer mainstream brokerages is Robinhood Markets, and they charge little to nothing as commission for crypto trades.
Things to Look out for When Buying Bitcoin with your Credit/Debit Card?
It is very important to make your own personal research concerning where you want to trade or buy your bitcoin.
These are important information to look out for when buying a bitcoin with your credit or debit card:
1. A genuine online sites will request for a know your customer (KYC) while normally include your name, photo ID, proof of address and email are usually required.
2. Before proceeding with any transaction, you need to verify the exchange carefully.
3. You need to verify the Bitcoin address you have entered so you won’t make mistake of sending them to the wrong address.
4. Carefully calculate the charges for buying Bitcoin with your credit card.
5. You need to monitor/track your transaction status
What are the Advantage of Buying Bitcoin with a credit or Debit Card?
When bitcoin was lunched in 2009, only a few persons participate in its buying and this makes the payment options limited and the whole trading difficult.
But in recent times, it is made easy and available, even though it is not accepted worldwide.
One of the advantages of buying bitcoin with a credit card: it enables investors to pay in Fiat currencies, making it easy for easy buying and selling of bitcoin. When bank transfers usually take days, making use of a credit/debit card is quite faster.
When you purchase a bitcoin for trading, there is a big chance of getting more than you expected, and making use of a credit/debit card for these transactions will guarantee a faster and more efficient winning.
What are the Risk of Buying Bitcoin with a Credit or Debit Card?
Generally, bitcoin is a trade of decision making and risk, the value is inconsistent as it often fluctuate from time to time, bitcoin is volatile.
For bitcoin, everything associated with it is risky. Bitcoin is a decentralized digital currency, meaning there are no government regulation here, selling and buying of bitcoin with your credit or debit card is at your own risk.
Although, regardless of some fraudulent activities of a few cryptocurrency exchange, buying and selling of bitcoin is genuine.
1. Hacking
One of the most disturbing concerns of buying bitcoin with a credit/debit card is “hacking.”
It is widely believed that a blockchain technique is far better than that of a traditional electronic transfers, but it does makes it alluring to hackers.
A lot of bitcoin owners do not make use of mining operations: when users make purchases and share bitcoin on other online cryptocurrency exchanges.
These online markets become a target, making it easier to become a victim of fraud and this affects you directly because these hackers focus on these bitcoin exchanges in other to de-fraud hundreds of active accounts of members.
False Bitcoin
Bitcoin accounts and cryptocurrency accounts are not protected by any government program as they often see them as a competition, and a rival to fiat currencies.
With the consistent rise and fall of bitcoin, this decentralized digital currency has gain the attention of both investors and fraudsters.
With bitcoin you can never be too careful, starting from what platform you choose to trade, to making sure you won’t get duped when you make use of your credit/debit card.
Bitcoin frauds in most case target to obtain personal information like security codes and this can make hackers get access to digital wallets and defraud users.
What are the Popular Exchange Sites for Bitcoin Trade?
Cyptocurency is the new financial deal in recent times and with the ridiculous stories of fraudulent activities can at times discourage you from trading on any Crypto exchange platform.
But here are few list of popular and trusted exchange sites for both beginners and old players:
1. Binance:
Binance was created in 2017 as one of the best crypto exchange that offers more cryptocurrencies than other cypto exchange and they offer lower fees than other Cyptocurrency exchanges.
There are over various cryptocurrency available on the platform, such as Ethereum (ETH), Bitcoin (BTC), Cardano (ADA), Chainlink (LINK), VeChain (VET), Litecoin (LTC), Uniswap (UNI), Binance.us payment fees usually range from 0.1%-5%
2. Coinbase:
Coinbasewas created in 2012 and it is a decentralized company and it is one of the best site for beginners and they make buying and selling Bitcoin easy.
Basically, Coinbase platform help users with a huge number of cryptocurrencies, although the transaction cost can be a bit scary, and poor customer service, but they are good at what they do.
There are several cryptocurrencies on coinbase such as Bitcoin (BTC), Cardano (ADA), Ethereum (ETH), USD Coin (USDC) and others. Coinbase payment method and fees: Debit/Credit card 3.99%, Crypto Conversion 2%, Bank Account 1.49%, Wire Transfer $25 and other fees.
3. Robinhood:
Robihood is a cryptocurrency platform that offers commission-free stock and user friendly, making it easy to use.
However, Robinhood is not totally free but they offer great services.
4. Gemini:
Gemini is one of the best crypto exchange with maximum security against fraudulent activities.
They offer more than 50 cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Zcash and others. Gemini payment fees ranges from 0.5% to 3.99%.
5. eToro:
was created in 2007, and they are available in countries like Cyprus, America and others.
They offer 17 cyptocurencies and social trading to members with lower rates.
Cyptocurencies available on eToro are: Litecoin, Bitcoin Cash, Ethereum, Chainlink, Stellar, VeChain and others. eToro payment fees ranges from 0.75% to 2.9%.
6. Kraken:
Kraken was launched in 2013 by Payward Inc. and the CEO of Kraken is Jesse Powell.
Basically, Krakan offers a wide trading firm for its members and they offer Cryptocurrencies like Ethereum (ETH), EOS (EOS), Bitcoin (XBT), Monero (XMR), DOT, ADA, DOGE, XMR and others.
Kraken payment fees ranges from 0% to 0.26% per trade, and 3.75% + €0.25 for credit card purchases.
FAQ
You can buy bitcoin from a friend or Cyptocurrency exchange platform like, coin base, Gemini, or others.
Bitcoin is a decentralized digital currency and it is legal to buy bitcoin with a credit/debit card.
You can sell your bitcoin to a friend/family or other crypto exchange.
Depending on the platform you are trading with, payment fees may vary.
It is essential to make research on the platform you will be trading with as there are lots of scammers looking for who to defraud but generally it is safe to buy bitcoin with a credit/debit card.
Conclusion
Cryptocurrency is one of the big deals in the financial market. Buying bitcoins used to be very hard but in recent times, it is made easy as you can purchase bitcoin from your account directly.
Equally, buying and selling bitcoin can in most cases be risky so it is advisable to make research and study the platform and the market carefully.
I hope this overview answers most of your questions on How to buy bitcoin with your credit/debit card.
References
- Investopedia – https://www.investopedia.com/terms/b/bitcoin.asp
- Forbes – https://www.forbes.com/advisor/investing/how-to-buy-bitcoin/
- Nerdwallet – https://www.nerdwallet.com/article/investing/what-is-bitcoin
- Coincasso – https://coincasso.com/blockchain-academy/why-buying-bitcoin-with-a-credit-or-debit-card-is-a-good-idea/
