How to Buy Bitcoin with Credit Cards and Debit Cards
Once you have decided to purchase Bitcoin, the immediate question before you is, “how to go about it?” Using your credit card or debit card to purchase Bitcoin is an efficient way to do so.
This guide will help you familiarize yourself with the steps required to purchase Bitcoin in this manner.
1. Overview
Purchasing Bitcoin online with a credit or debit card is not a complicated process. It involves using the services of cryptocurrency exchanges or peer-to-peer cryptocurrency marketplaces.
We will cover some of the most reputable services that accept credit and debit card payments for Bitcoin. However, it is important to note that depending on your individual banking institution or country of residence, there may be some restrictions on using your credit or debit card for this purpose.
If you happen to fall into that category that does not mean that you cannot purchase Bitcoin. We would suggest that you look at our other guides pertaining to “how to buy Bitcoin with cash” and “how to buy Bitcoin with PayPal” in order to learn how to use other viable alternatives.
2. Fees
When it comes to processing fees, it is important to remember that these will be either fixed, as is common on cryptocurrency exchanges — or they will vary, as is often the case when using a cryptocurrency peer-to-peer marketplace. The reason that this is so is that the latter consists of many individual sellers — each one being able to stipulate their own set of selling conditions.
3. Verification Requirements
Whether you choose the cryptocurrency exchange or marketplace option to purchase your Bitcoin with a credit or debit card, there will be some that impose identification verification requirements before engaging in any transaction. Others will make identification verification a requirement only when you surpass a determined amount of Bitcoin purchases.
For the most part, any cryptocurrency exchange option will result in some sort a verification requirement. Peer-to-peer marketplaces are the best place to look for purchasing options without identification verification. Even so, that would have to be contingent upon finding a seller that has no such requirements.
The simple fact is that if you are using a credit or debit card you should be prepared to encounter identification requirements. They are in place in order to minimize fraudulent transactions. For those of you seeking a more anonymous route for purchasing Bitcoin, you may want to consider some of the cash options that we have discussed in other sections.
4. Other Requirements
Whenever you purchase Bitcoin, be it with a credit card or any other form of payment, you need to have a Bitcoin wallet in order to receive your purchase. On some cryptocurrency exchanges, they offer buyers the option of setting up a Bitcoin wallet through their platform. Others expect you to have one before purchasing on their site.
Setting up your own Bitcoin wallet is a fast and simple process. We have articles and guides that you can use as a reference to getting one on your own. If you already have one, all that you will need when purchasing Bitcoin will be your public Bitcoin key or address. This you will enter on the platform that you are using to make your purchase. That is how the seller will know where to send your Bitcoin once you have completed payment with your credit or debit card.
5. CoinMama
CoinMama is a cryptocurrency exchange that allows you to instantly purchase Bitcoin using a credit card or debit card. CoinMama operates in 188 countries including the United States. However, in the U.S. it only operates in 26 states.
CoinMama requires users to register for an account on their platform. If the amount of Bitcoin to be purchased is worth less than $150 USD, they do not require the user to upload images of their identification. Any amount over that will require such a submission.
Once you have opened an account on CoinMama — a process that takes less than five minutes — you will be able to purchase up to $5,000 USD worth of Bitcoin per day, with a monthly ceiling of $20,000 USD.
If you are required to submit an image for verification, the process is a speedy one. It normally takes less than 15 minutes for you to be verified and approved.
Fees for credit card and debit card transactions on CoinMama are equal to six percent of the purchase price.
In terms of speed and ease of the transaction process, CoinMama is one of your best options. It should also be noted that it has been in operation since 2013 and is considered one of the oldest and most reputable instant cryptocurrency exchanges.
Visit CoinMama Now6. Changelly
Changelly is another cryptocurrency exchange that allows you to purchase Bitcoin with your Visa- or Mastercard-branded credit or debit card.
The process is fairly straightforward. From Changelly’s homepage, you click on a button that is labeled “purchase with Visa or Mastercard.” You are then redirected to a page where using drop-down menus you must select the amount of Bitcoin that you want to purchase in USD or the amount of Bitcoin that you wish to accumulate. It will automatically convert it to the amount that you have to pay in USD.
If you have a credit or debit card denominated in Euros, you can change your quotation currency to Euros.
The next Step involves you entering your Bitcoin address and solving a CAPTCHA. Once you do that, you are redirected to Changelly’s payment processor where you must enter your credit card information. Once your payment has been accepted and processed, your transaction will be complete.
Most transactions will be completed in 10 to 30 minutes. In terms of fees, Changelly charges five percent of the purchase amount as a processing fee and the payment processor charges an additional five percent. In other words, you’ll be paying ten percent of the purchase price in transaction fees.
Visit Changelly Now7. CEX.io
Winding up our selection of cryptocurrency exchanges that accept credit and debit cards, is CEX.io. A cryptocurrency exchange that is registered as a money service business in the United States and the United Kingdom, it is an established presence in the cryptocurrency market.
In order to use a credit card or debit card to purchase Bitcoin, you must first register the card with CEX. This requires you to enter all of the pertinent information about your credit card and allowing CEX to validate it. Once it is validated, it becomes an approved payment method and you can use it to make purchases of Bitcoin on the platform with a click of the mouse.
Bitcoin purchased with a credit or debit card incur a 3.5 percent fee and take 1-2 days to appear in your CEX account. Once your Bitcoin is in your CEX account you can withdraw it to your Bitcoin wallet.
In order to avoid having to send imagery of your identifying documentation, you have to keep your Bitcoin purchases below $400 USD per day with a $2,000 USD monthly cap. If you decide to undergo the identity verification process, your daily limit is increased to $10,000 per day with a $100,000 USD monthly cap.
Visit CEX.IO Now8. Paxful
Paxful is a peer-to-peer cryptocurrency marketplace. This means that individual buyers purchase their Bitcoin from individual sellers. Paxful merely performs the role of broker and escrow agent to make sure that both buyer and seller are protected.
In order to use a debit or credit card to pay a seller for their Bitcoin, buyers must submit their identification information, inclusive of proof of address, to Paxful. Once that is done, Paxful will allow buyers to use their Visa, Mastercard or Amex cards as payment. It should be noted that Paxful is one of the few platforms that allow you to use American Express to purchase Bitcoin.
In terms of fees, they can vary greatly. This is due to the fact that each individual seller can set their own set of conditions and fees for the buyer. The fees that you should expect from sellers willing to accept credit card and debit card payments range from 5 to 25 percent.
Security-wise, users can rest at ease knowing that Paxful is handling the processing of the payment. Therefore, your credit card infomration is never revealed to the seller. Also, since the seller has to place the Bitcoin they are selling in escrow with Paxful, you can rest equally at ease knowing that once your payment is approved your Bitcoin will be released to your Bitcoin wallet. Buyers may use their own Bitcoin wallet or use Paxful’s free web-based wallet.
Visit Paxful Now9. Conclusion
Using a credit card or debit card to purchase Bitcoin is one of the most secure ways to do so. Provided that you stick to platforms that are established and have good reputations, it can make the process of purchasing Bitcoin a breeze.
In terms of privacy, however, it does not compare to cash-based payment systems if anonymity is your main concern. Primarily due to fraud prevention measures, purchasing Bitcoin with a credit or debit card will usually require undergoing a verification process either for your identity, for the card that you are using for payment, or for both.