How to Purchase Bitcoin With a Credit Card? Key Takeaways
A credit card is one of the easiest and fastest ways to purchase Bitcoin. Research the credit card and exchange before purchasing. Consider debts, exchange fees, and scams before purchasing Bitcoin. Using credit cards offers high security, simple withdrawals, fast purchases, and dollar cost-averaging. When it comes to Bitcoin, one of the biggest questions that comes to an investor’s mind is: “How do I obtain Bitcoin with a credit card”? Bitcoin is the world’s biggest cryptocurrency by market capitalization.
Presently, it is being traded on many exchanges worldwide. In today’s crypto world, the use of a credit card is one of the fastest and easiest means of buying Bitcoin and other cryptocurrencies.
However, as an investor, purchasing Bitcoin with a credit card without having a good understanding of how to go about it may be tricky. While this option offers many benefits, there are things to consider before you get started.
If you love to acquire crypto with plastic money, then keep reading to discover the right way to go about it.
Steps to Buy Bitcoin With a Credit Card While it’s relatively easy to buy Bitcoin with a credit card, you must consider factors like the card’s type and the choice of exchange that supports it. When buying Bitcoin with plastic money, below are the steps to follow:
Research the Credit Card Before investing in cryptocurrency with a credit card, the first thing is to do adequate research. Not all of them support Bitcoin purchases, therefore, it’s vital to research the card or the payment company to make the right choice. The following are the cards that support the specific coin purchases:
SoFi American Express Visa Mastercard For each of these, there are different fees, therefore researching gives you an idea of what the payment company charges.
Research the Exchange Aside from the credit card, research the exchange you wish to use. This is because some online trading platforms support the purchase of crypto using plastic money, while others may prefer peer-to-peer (P2P).
Even when the trading platform supports purchasing Bitcoin with plastic money, make sure the process is instant to avoid long delays.
Did You Know? Vancouver, Canada was the first city in the world to have a Bitcoin cash machine.
Link the Credit Card After finding the best trading platform that suits your needs, the next step is to verify the account by providing personal details to meet KYC (know-your-customer) requirements. To do this, link your card by following the steps below:
Click on Add New Enter full name, CVV, billing address, card number, and expiry date Click on Buy Bitcoin and enter the desired amount Choose the pay with credit card option You’ll be redirected to the bank’s OTP (one-time password) transaction page and the digital coin will be deposited into your wallet upon a successful transaction.
Factors to Consider When Purchasing Bitcoin With a Credit Card Acquiring Bitcoin with plastic money is often seamless when done correctly. However, in doing so, take note of these important factors:
Debt Due to the high volatility of Bitcoin, it’s quite risky to invest. It’s even more risky if there is a debt accruing just to obtain digital currency with plastic money. This is equivalent to paying high interest on a volatile investment.
Exchange Fees Before purchasing Bitcoin with a credit card, consider the trading fees. Generally, there’s a fraction of the transaction cost that goes to the trading while swapping the fiat for Bitcoin.
The above graph indicates the increasing prices of Bitcoin over the years.
However, using this payment method may attract additional costs.
Scams While there are several crypto markets to obtain Bitcoin, it’s vital to choose a legitimate trading platform. Be careful with the sensitive account information and look out for red flags.
Do not share the crypto exchange password and banking details with anybody. Also, make sure that there’s a little padlock right beside the exchange’s domain name. This ensures that the platform is secure and cannot access the information haphazardly.
Benefits of Buying Bitcoin With a Credit Card Now let’s delve into the benefits of purchasing Bitcoin with plastic money. They include:
Fast Bitcoin Purchases If you’re looking for a fast way to acquire Bitcoin, then credit cards are the way to go.
Compared to other traditional payment types like bank transfers that may take days to process, plastic money allows transactions to be processed within seconds. This ensures the fast acquisition of the digital coins.
High Security While several crypto exchanges support credit cards, you should go for the regulated crypto traders. This is because they are regulated and authorized by different financial bodies in the UK, US, Cyprus, and Australia.
The risk of falling victim to fraud is also minimized since the platforms use encrypted tools that disallow them from seeing the details being imputed into their sites . Therefore, rest assured that the bank details are safe and secure.
Simple Withdrawals Purchasing Bitcoin with plastic money makes it easier for you to cash out. According to anti-money laundering (AML) regulations, individuals must use the same payment method to make their withdrawals.
Therefore, withdraw money to the same credit card whenever you decide to sell the virtual currency. The withdrawal process is also fast and hitch-free because the banking details would have been saved on the exchange’s system.
Great for Dollar-Cost Averaging Dollar-cost averaging is a great long-term strategy when investing in Bitcoin. It allows purchasing the crypto at fixed prices and refined intervals. Using a credit card for dollar-cost averaging makes it easy to obtain Bitcoin, since there is no requirement to enter the banking details during every purchase.
Unlike bank transfers, using a credit card for dollar-cost averaging takes just a few minutes, to complete the payment on the respective dates.
Conclusion Buying Bitcoin with a credit card is highly advantageous. However, it is not without one or two risks.
Therefore, to get the most out of it, you must follow the steps above and use the right credit card that supports Bitcoin purchases and an exchange that supports plastic money payments. review different crypto trading and choose the one that best meets your needs.
