If you are ready and resolved to start investing in and buying Bitcoin or any of the “altcoins” that comprise the fast-developing world of cryptocurrencies, then besides knowing where you can resort to doing so, you also need to know how you can pay.
In the past buying Bitcoin and other cryptocurrencies with a credit or debit card used to be really hard, the option was not given extensively by vendors and the process was rather confusing, especially for newbies. Luckily, however, nowadays this is no longer the case, and buying crypto with your credit or debit card is both possible and fairly easy, meaning you could use this payment option, which ranks high in terms of speed and convenience.
Before proceeding to use your credit card or debit card to buy Bitcoins, for example, remember that you need to have set up a wallet for the safe storage of your newly acquired coins. Also, do keep in mind that credit card fraud is a real problem in the crypto industry, as much if not more than everywhere else, so do not rush to hand out your card details on sites that are not verified and credible.
The process of buying cryptocurrencies with a bank card has been made easy and smooth primarily due to the emergence of online crypto exchanges that serve most regions of the world and accept debit and credit cards as a method of payment.
Such credit/debit cards accepting Bitcoin exchanges include Coinbase, Coinmama, CEX.io, and Bitpanda. Each of these credible and popular exchanges serves different areas of the world and allows interested buyers to buy up to a certain amount’s worth of Bitcoin per week, using your debit or credit card, charging usually a flat percentage fee for each of these transactions. Obviously, to be able to use any of these exchanges you first need to check whether your country of domicile is serviced by them. If you are covered in terms of location, then you simply need to open an account and follow the required KYC verification processes.
Before we delve further into the matter of buying crypto, and primarily Bitcoin, via credit or debit card, it is important to know that the fee percentage varies not only from one exchange to another but also depending on the size of your purchase, as well as your country and the specific rules and regulations that are enforced by watchdogs and regulators in each jurisdiction. It is therefore almost impossible to provide credible information on this topic, while you may find specific information about what applies in your own country by consulting our country-specific guides.
But, first things, first. Read below a comprehensive list that aims to clarify the main points to consider and aspects to be aware of, before proceeding to buy crypto using your credit or debit card.
This mini-guide is part of the How to Buy Crypto and Bitcoin - Investing in CryptoCurrency Section, which breaks down all the elements involved in buying cryptocurrencies so you can make an informed decision.
Must Know Facts And Tips Before Buying Crypto With Your Card
- Be aware of the risks involved
Risk is present when using a credit or debit card to buy Bitcoins, as sketchy companies may well set up a Bitcoin selling façade with the aim of simply collecting your card info. In such card fraud cases, the information collected is then used to make purchases with your card without your consent and knowledge. To mitigate such risks it is important to choose the exchange or service provider that you will pass your credit card info to very carefully and make sure it has a good reputation and is regulated and known to watchdogs. Moreover, to avoid nasty surprises, it is also sensible to have a clear picture about how your credit card issuer, be it a bank or other financial institution, handles the purchase of bitcoins or other altcoins, because many don’t allow them or other charge cash advance fees on such transactions. It goes without saying that when using a trusted exchange, it is impossible to make a bitcoin purchase with a stolen card or complete such a transaction anonymously. i.e. without providing a photo I.D. as proof for verification purposes. Not that we thought you were after that, but just for the record ????.
- But, how risky is it really?
Well, the risk is directly linked to the quality, transparency, accountability, and trustworthiness of your chosen exchange or service provider, since any information you submit online is always at risk of being hacked or stolen. You shouldn’t worry too much though, because Bitcoin exchanges are completely aware of such dangers since they are constantly under attack due to the nature of their business. To battle such attacks, they are investing heavily and ensure they utilize the best security and protective measures available to protect themselves as well as your own personal information as to their client.
- The pros and cons of it all
In terms of ease, the method of purchasing Bitcoins using your debit/credit card, is undoubtedly one of the easiest ways available. The same goes when it comes to speed and one could comfortably argue that buying with your card is both convenient and fast, while also being simple and accessible even for those who are less technical.
On the other hand though, it is usually not possible to buy large amounts of Bitcoin with a debit or credit card, since exchanges usually impose relatively low limits on this. Of course, you could offset this by simultaneously buying from multiple exchanges, provided your country is served by several.
Another downside is the associated cost since the fees charged are higher than other transactions due to the increased risk of fraud and scams. For example, when buying through a bank transfer you could save on fees, and perhaps you should go with this option especially if you seek to buy larger amounts of Bitcoins.
Moreover, since most exchanges do not allow the use of prepaid debit cards, it is impossible to use one of those to buy Bitcoin. If you want to use such a card then, your only option would be to search for local Bitcoin sellers who accept payment via a prepaid card on exchange platforms such as LocalBitcoins.
- Is there hope that fees might get lower?
As things stand and also given the fact that during the last two years many large banks have banned the use of their debit and credit cards for the purchase of Bitcoins and cryptocurrencies in general, the fees for purchases made with debit or credit cards do not seem likely to decrease. The fees charged by card payment processors are at least around 3% per transaction, and crypto exchanges accepting card payments not only pass off this fee, but also add on top of that a small percentage as their own profit. If demand for this service increases, however, it would be possible to achieve lower fees if one or several exchanges manage to cut a better deal with payment processors.
- Can you buy only Bitcoin or altcoins as well with a card payment?
The short answer to this is that it depends on the cryptocurrency exchange you choose and which coins are available and supported by them. Different exchanges offer different cryptos for purchase, but Bitcoin, being the oldest, most established and the one with the most widespread use, is available everywhere. Other popular altcoins, such as Litecoin and Ethereum also seem to be readily available, but for lesser-known, more exotic cryptos can only be obtained if you first buy Bitcoins and then exchange them for other cryptocurrencies on dedicated crypto exchanges, such as Binance, Changelly, Kraken or Poloniex.
The reason why you need to buy Bitcoin first using your credit card and then move on to exchange the Bitcoin to obtain other cryptocurrencies is that most other cryptos are actually traded against Bitcoin. Getting hold of Bitcoin is relatively easy nowadays, but other cryptocurrencies are not so readily available for purchase if you don’t hold some BTC first. Bitcoin also usually enjoys very good liquidity against major fiat currencies, such as USD and EUR, whilst the liquidity for altcoins is very poor.
Therefore, it makes sense, especially when you are a newbie in cryptos and especially when buying via debit or credit card for the first time, to choose Bitcoin over any other cryptocurrency. Despite holding huge potential for profits, buying and owning Bitcoin will also allow you to either use it instead of fiat money or exchange it for any of the altcoins offered at crypto exchanges.
Credit Vs Debit Transactions for buying Bitcoins
The biggest hindrance when wanting to buy Bitcoins using a credit card is the fact that most banks do not authorize this type of transaction and do not allow the credit cards they issue to be used for buying Bitcoins. However, there are credit card providers that are flexible enough and do accommodate the purchase of Bitcoins through the cards they provide.
As already mentioned, the other pain point of the process is the fact that credit card Bitcoin purchase transactions attract fees over 3%, which means that the transaction becomes more expensive, while some card processors consider a Bitcoin purchase to be a cash advance, and thus charge even higher fees on it.
When using a debit card to buy Bitcoin, on the other hand, the fees charged are lower, while some exchanges only accept debit cards and not credit cards, to avoid the associated risk, since debit cards use money that you actually have in your account, while credit cards money that you “borrow”. The only problem when wanting to use a debit card in order to pay for the Bitcoins you buy is again the fact that many banks and card providers, and processors do not allow debit cards to be used for buying crypto.
Extensive research is then what is needed to enable you to use the fast and convenient method of buying Bitcoins and other cryptocurrencies using a debit or credit card, as you need to find the right, reliable crypto exchange or service provider to open an account with and ensure that, according to where you live and which cards you have, it will be possible to make such a transaction.
Once you choose the most suitable exchange to open an account with, complete the verification process and connect your card, the process of acquiring your first Bitcoin, or even part Bitcoin, is almost instant and your cryptos can then be sent to your wallet for secure storage.
Our gift to you, listen to this little-known secret and own a BTC today!
Bitcoin transactions using a debit or credit card are a very convenient and fast method, especially for novices to get their hands on some hot Bitcoins, provided they can overcome the various regulatory or precautionary measures that are being adopted in almost all countries in the world. Doing so depends largely on choosing the right crypto exchange or service provider, and in this regard, our guide has a great gift for you, in the form of a very useful tip.
It has recently come to our attention that the online Bitcoin scenery has being enriched through the entrance of a new, innovative, and dynamic entrant that promises to further simplify the process of buying and sending Bitcoin, in a manner that is fast, secure and convenient, since card payments in Euro are accepted, and what is more, at a low fee.
Though it may sound too good to be true, Zeply.com claims to take away all your worries and hassle when it comes to buying Bitcoin using a credit card. Their KYC policy is designed to be as streamlined and smooth as possible, ensuring that you can set up an account, verify it and make a card-paid purchase in literally a matter of minutes!
The entire philosophy governing Zeply is to be able to provide a simple-to-use and extremely fast payment platform, without jeopardizing safety and security along the way. Through this new platform, anyone interested can very easily become owners of Bitcoins and start actively exploring the wonderful and promising world of cryptocurrencies.