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How to Buy Bitcoin With Your Card via Online Exchanges?
The cryptocurrency craze makes people of all ages and income levels around the world think about the methods of investing in crypto money. Among the crypto coins, Bitcoin was the first to receive immense attention from the wide public. It allows the people to eliminate the middleman and the central authority from the process of selling and buying money and promotes the idea of decentralization of financial flows and independence from banks.
Over the past nine years, the Bitcoin industry has grown significantly. Now, people store digital money in online wallets, and the highest level of anonymity is granted to the users during the transactions. Currently, it is not only possible to receive and trade Bitcoins but also to use them to pay for the services and products.
So, How Can I Get Bitcoins?
With the increasing popularity of cryptocurrencies, many people show interest in owning them. Today, three basic methods to obtain Bitcoin exist:
Accept them as the payment
You can get Bitcoins as payment for services or products if you give your customers such option. The cryptocurrency is becoming a more widely accepted payment method, and you do not need much effort to get it.
Engage in mining
You can also get the crypto money by mining. It is the initial method for receiving Bitcoins. But as more coins were retrieved, mining tasks became more complicated. Besides, it requires professional hardware which is rather expensive.
An alternative and convenient way of gaining Bitcoins is to purchase them.
How to Buy Bitcoin?
Nowadays, a variety of platforms offers Bitcoin buy/sell options, just like the number of people willing to get them. You can buy them from the Bitcoin Investment Trust, at a Bitcoin ATM, through a local exchange, or during face-to-face meetings. And to become an owner of Bitcoins, you can choose from several payment options, including wire bank transfers, payment cards, PayPal, and cash. Still, the most preferred and secure way to gain BTC is to buy them using your card of any type, including Visa and MasterCard.
It is especially convenient to buy Bitcoins with your credit card through the exchange services. They seem to be the best option for obtaining the coin. But unfortunately, not everyone knows what exchange service to use as there are plenty of them on the market. All of them claim to be designed to enhance the experiences of the customers. At the same time, many users feel concerned about the security and safety of the services. But there are no reasons to worry when using the trustworthy exchanges with decent reputation.
The most popular and reliable exchanges include Coinbase, Kraken, CEX.IO, Coinmama, and Bitstamp. All of them enable exchanging cryptocurrencies for the fiat money. While Coinbase, Bitstamp, Coinmama, and CEX.IO provide the option of buying cryptocurrencies via card or bank transfer, Kraken and Gemini work with bank transfers only. Still, they all claim to ensure the high-level user service and favorable conditions for cooperation. You should simply register and pass verification at a respective platform to further be able to buy cryptocurrencies.
To support their functioning, online exchanges take a fee for the transaction. The fee schedules differ among the service providers. Some of them, like Coinmama and Coinbase, charge the same amount of money from any deal. In contrast, the platforms like Bitstamp and CEX.IO have the fees that vary depending on the trade volume. Still, apart from trading commissions, the exchange may take other types of fees. For example, Coinmama charges 5% for credit/debit card transactions. Coinbase states on their site that banks may charge an additional commission. And both Bitstamp and CEX.IO have the withdrawal/deposit fees when talking about credit/debit cards transactions.
up to 0.25%
up to 0.2%
Using a Card at an Online Exchange
It is easy to use your card for a purchase since almost everyone has a regular card for everyday payments. And the whole process is entirely habitual because it is similar to how we usually pay for goods and services on the web. In particular, the simple procedure is practical for the newbies who just wish to enter the Bitcoin market.
Still, to ensure that you are not a fraudster and provide high level of security, online exchanges require some verification. So, to start trading on exchanges, users first need to link and verify their cards. Verification is an essential step after which you will be able to carry out all kinds of operations. But first, you will be asked to provide some information to prove the ownership of the card. It prevents from stealing the payment details and takes around 8 minutes.
The first step is to provide your card details. It is a standard procedure, and you need to provide your name, card number, and expiry date. You will also need to enter CVV/CVC code from the back of your card. Nothing complicated.
Then, it is also necessary to pass a small charge verification. It proves that the card is active and serves as a proof of belonging. The system takes a little sum of money from your card, usually up to $2. And all you need to do is to input the charged amount in a respective field. But it is critical to enter the exact amount.
The mentioned two steps are required for every exchange. But some platforms may also require additional proofs. They can ask you to make a selfie with a card. It is a usual situation for the exchanges that care about legal compliance. And an important notice about such measures is that the respective services always guarantee the security of personal data.
You Are Done!
You see, making those steps takes only a little time but ensures security! Then, you are either instantly allowed to buy and sell Bitcoins or still need to wait while the compliance team checks everything. And soon you may trade on the platform. Congrats!
Due to the growing popularity of crypto money, buying Bitcoin may nowadays seem a profitable investment. And the increased number of services offering the platforms for trading the cryptocurrency adds to the overall craze. In this situation, buying Bitcoins with a card may appear the most convenient way for the purchase. Due to the availability of online exchange platforms, the procedure is simple like paying with a credit card online. You just do several steps and get a chance to purchase Bitcoins.