How to Buy Bitcoin with Credit Card or Debit Card FAQ (Frequently Asked Questions)
Many companies and private sellers would prefer that you pay for your bitcoin with a wire transfer or a bank transfer because these are irreversible. On the other hand, if you buy bitcoin with a credit card or a debit card, and you do not receive the bitcoin, then the transaction may be reversed.
What Are the Fees When Buying with Credit Card or Debit Card?
You are going to have to pay a 1% to 3% charge for using your credit card because the card issuer will charge that amount to the company taking your card payment. Any other fees, such as transaction, withdrawal or deposit charges, are at the discretion of the exchange or broker.
Can I Buy Bitcoin with Credit Card or Debit Card in My Country?
If you have access to the internet, then you might be able to buy bitcoin with a credit card or debit card in your country – it depends on the laws of the land. For example, China may be very big in terms of how much bitcoin mining they are doing, but exchanges are illegal there.
Ultimately, you should start by looking for services offered in your language and then research them thoroughly to ensure trust. The US and the UK are both places that have healthy cryptocurrency market offerings.
The most unexpected place you can buy bitcoin is at ATMs. Believe it or not, there are ATMs where you buy bitcoin with a credit card or debit card and then place your hardware wallet into the ATM, and the bitcoin is transferred to your wallet.
What Are The Withdrawals and Limits of Credit Cards and Debit Cards
Limits are set by the exchanges and the brokers. For example, Virwox limits your purchases to 400 Euros, Dollars or 380 British pounds, unless you have your account verified. Yet, withdrawal limits into debit cards are almost limitless (withdrawing into credit cards usually requires a third party like PayPal or Skrill).
What Are The Pros and Cons of Buying Bitcoin with a Credit or Debit Card
The downside to buying with a debit card or credit card is that people will discover your details, and you do not know whom to trust. Credit cards may offer protection, but maybe not for bitcoin; it depends on your card issuer.
Sometimes, if you buy with a card, they may not send your currency to an exchange. Keep in mind that if the broker/website asks for your bitcoin wallet address, you should probably give them a private one and not the wallet address of an exchange. Some bitcoin sellers are reluctant to pay/transfer cryptocurrency into your account on an exchange website. Here are a few other pros and cons:
- Buying with a credit card offers some protection against fraud
- Every broker and seller accepts debit cards
- Many sellers and brokers accept credit card payments
- Some brokers use your bank information to verify your account
- Buying with a debit card is usually the most cost-effective purchase method
- Your bank may be able to reverse a credit or debit card purchase if needed
- Buying with a credit card will incur additional fees
- Your credit card company will call your purchase a cash advance
- Unscrupulous companies may keep your debit card information
What Is a Bitcoin Prepaid Card?
A bitcoin prepaid card works like a secured bank card or a PayPal Access card, except that you load it up with bitcoin currency instead of fiat currency. It makes buying in stores and online with bitcoin more convenient and may even be safer and more secure. It is also handy if you wish to purchase bitcoin from an ATM and you do not have a hardware wallet.
In most countries, getting a prepaid bitcoin card is as simple as finding an online card issuer as there are no restrictions such as credit ratings. You cannot use a bitcoin card instead of a debit or credit card if the merchant doesn’t accept bitcoin, however. If the merchant does accept bitcoin payments, then the merchant will probably be happy to accept your bitcoin card. Ultimately, the best bitcoin card is one that is secure, and that doesn’t charge large service fees. Always use a reliable card that you have researched yourself. There are plenty of options such as CryptoPay, Wirex and Uquid.
Can You Buy With a Credit or Debit Card on an Exchange?
Most exchanges will welcome people who buy with a credit or debit card. Though, there will be an additional charge of 1% or more if you use a credit card.
What’s the Difference Between Buying With an Exchange and a Broker?
A broker may offer a better price than an exchange, and some exchanges do not accept fiat currency payments. Buying from a broker will often require additional ID whereas exchanges often let you buy right away without needing to identify yourself fully.
Can You Buy Using Credit or Debit Cards on a Peer-to-peer Exchange?
On peer-to-peer exchanges, people prefer wire transfers, but most exchanges allow people to buy and sell using debit cards. Depending on the host website, you may also be able to buy bitcoin from other people using a credit card.
What Is the Best Exchange to Buy Bitcoin With a Credit Card or Debit Card?
There are plenty to choose from, with the most popular being CEX.io, Coinmama and Coinbase. The best peer-to-peer exchanges are LocalBitcoins and Paxful.
Can I Buy Anonymously With a Credit Card or Debit Card?
Typically, you cannot buy anonymously because your information is given by your card issuer. You will need to use a third-party wallet such as PayPal if you wish to hide some of your details.
Can I Sell Directly to My Credit Card or Debit Card?
You may sell bitcoin on a peer-to-peer exchange and then have your fiat payments paid into your credit or debit card. However, you are not able to buy or sell bitcoin and store/transact it with your credit or debit cards.
Are There Easier Ways to Buy Bitcoin?
The easiest way is to find companies like VirWox, who allow you to buy bitcoin with PayPal and do not ask for identification or verification.
What Is the Quickest Way to Buy Bitcoin Online?
If you are new to bitcoin and wish to buy quickly, then use a company like Virwox because it doesn’t require verification and signing up is quick. Otherwise, you may sign up with other exchanges, wait to be verified, and then you should be able to buy bitcoin fairly quickly once you are all set up and your account is active.
Will My Visa / Mastercard Block Any Bitcoin Transactions?
Yes, they will block transactions if it appears that you are acting as an exchange or broker in contravention to local/national laws. In other words, if you have set yourself up as a broker or exchange service, and you are trying to use your personal Visa or Mastercard to transact your business, then Visa/Mastercard have the right to freeze and close your accounts. Otherwise, for regular buying and selling of cryptocurrency, there is no reason why your transactions would be blocked, or accounts would be frozen.
Does It Matter the Currency My Credit Card Account Is in?
Your card company will convert your currency when you buy, but if it has to, then you will not get a market rate for your conversion, and there will probably be extra fees for the currency conversion. It is always better to buy with the same currency in order to avoid these fees.
Are There Similarities Between Visa/Mastercard and Bitcoin?
There is no similarity between Visa/Mastercard and bitcoin. Even though Visa/Mastercard send currency, and bitcoin sends cryptocurrency, the way they work is very different. Bitcoin is decentralized, which means you do not have to rely on a single bank or company to hold, move and secure your transaction.
Can Bitcoin Replace Visa or Mastercard?
If bitcoin becomes a global single currency, then it will replace Visa or Mastercard, but at the moment, it will remain a separate wealth-transfer system.
Are There Credit Cards or Debit Cards I Can Store Bitcoin on?
In the future, we may see fiat currency and cryptocurrency sitting side by side in your debit card and credit card accounts, but right now there is no way to hold fiat currency and cryptocurrency in the same account.
Note From The Writer
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