Buying Bitcoin With a Credit Card: It seems like every time you turn on the TV there is another news report about the rise of bitcoin. Many of these reports talk about whether or not bitcoin is a good investment, but few tell you how to start investing in bitcoin and the best ways to pay for your bitcoins.
Buying bitcoins via credit and debit cards is one of the most popular and convenient ways to purchase Bitcoin.
But how do you pay for those bitcoins? Can you pay with a debit or credit card? The answer is yes you can. Read on and find out, how it is possible, what bitcoins is all about and things to look out for.
What Are Bitcoins?
For those who are still confused about what bitcoin actually is – don’t worry! It’s confusing. Bitcoin is often called either a cryptocurrency or a digital currency. It earned the title of cryptocurrency because of the way bitcoin is ‘mined,’ and how it ensures its security.
In order to create new bitcoins, computers must solve cryptographic mathematical problems. Once the bitcoins exist, however, they are not minted as physical coins or printed as bills – but are rather just digital goods.
Bitcoins and other cryptocurrencies are novel because they’re the first currencies that aren’t connected to a government or country.
5 Convenient ways of Buying Bitcoin Either with your Credit or Debit Card
Highest limits for buying bitcoins with a credit card
Reliable and trusted broker
Some of the highest fees among credit/debit card bitcoin brokers
Luno allows users in Europe to purchase bitcoins with a credit card or debit card. The company offers very low fees.
We may receive compensation when you use Luno. Please visit Luno for its exact pricing terms.
Trusted exchange that has been around for a long time
Free deposits and low withdrawal fees
Users should not store bitcoins in Luno’s wallet service
Bitpanda is a Bitcoin broker located in Austria. You can purchase coins with a credit/debit card for 3-4% fees. Only residents of Europe can use Bitpanda.
Our guide will show you how to buy bitcoins with a credit card on Bitpanda.
We may receive compensation when you use Bitpanda. Please visit Bitpanda for its exact pricing terms.
Some of the lowest fees for buying bitcoins with credit/debit card
Reliable and trusted broker
Fees aren’t shown openly on the site but instead included in the buying price
CEX.io lets you buy bitcoin with a credit or debit card. It’s one of the oldest Bitcoin exchanges and works in the United States, Europe, and some countries in South America.
Verification process is extensive and can take up to 30 minutes to complete. CEX is only available in some US states.
Support for many countries and regions
Low 0.2% trading fee
Established and trusted exchange
Verification process is extensive, requiring much personal information (including a photo) and incurring a long delay
GBP market lacks liquidity
Scams to Look Out For
There are potentially some scams that you should watch out for to protect yourself against having your bitcoins stolen or against credit card fraud.
Below are some various vices you should be mindful of;
phishing scams. The scammers either create a fake site or mirror an existing digital currency exchange or digital wallet site in order to try to get you to share your bitcoin wallet key or your credit card details. Once they have your info, they steal your money. These bitcoin phishing scams are on the rise making it more difficult for you to know which sites are legitimate and which are looking to defraud you.
The other common scam is for people to pretend they’re going to sell you bitcoins via Ebay or an in-person exchange like localbitcoins.com and then to not actually send your bitcoins to you after charging your card.
If your credit card is stolen and used to purchase bitcoins then your credit card is likely to cover you, but if you are defrauded because you aren’t given the bitcoins you’re owed you might not you’re your money back. That’s because it’s very hard for your credit card company to verify whether or not you received the bitcoins since bitcoin exchanges are anonymous and can’t be tracked.
Whether you use a credit card or debit card to buy bitcoins is up to you, but its important to realize that there are significant extra costs involved in purchasing bitcoins that way and it could open you up to fraud.