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Buying bitcoins via credit and debit cards is one of the most popular and convenient ways to purchase Bitcoin.
The thing is this…
The best ways to buy Bitcoin with a credit or debit card in Q4 of 2020 are:
Below, we’ll list some of the best exchanges out there that accept card purchases along with some basic details about them.
Let’s jump right into it!
Based out of San Francisco, California, Coinbase is considered by many to be the most beginner-friendly exchange. It accomplishes this through its beautiful yet simple user interface. Coinbase is a brokerage, meaning that instead of buying Bitcoin and other cryptocurrencies from other users, you are buying directly from Coinbase.
As far as fees go, Coinbase charges 3.99% on credit and debit purchases. Due to the lower fees involved, it’s recommended to use your bank account when making large purchases.
Coinbase’s fees are on the lower end compared to other brokerages mentioned later in this guide.
Coinmama is another beginner-friendly cryptocurrency brokerage that focuses on credit and debit card purchases. They offer instant delivery and sell Bitcoin, Ethereum, Ripple, Litecoin, and more to 46 US States, and most countries.
Coinmama doesn’t provide its users with a wallet on the exchange. Instead, users are asked to provide a wallet address to send the purchased cryptocurrency to. As long as you have your own wallet, this shouldn’t be an issue!
Coinmama charges a fee of around 5% for credit and debit purchases with instant delivery and high purchasing limits of a max of $5,000 daily and $20,000 monthly.
Click here to see a step by step guide on how to purchase Bitcoin on Coinmama.Visit Coinmama Read Review
Bitpanda, called by some the Coinbase of Europe, is a popular brokerage that sells Bitcoin, Ethereum, Ripple, and more for US Dollars, Euros, British Pounds, and Swiss Francs. The exchange has several payment methods such as bank transfers, credit cards, debit cards, Skrill, Neteller, and more.
When it comes time to transact on the exchange, Bitpanda charges 1.49% for buys, and 1.29% on sells making them an extremely competitive option.
Headquartered in London, UK, CEX.io offers security, high liquidity, and cross-platform trading. They support an extremely wide array of countries making them available to most people.
CEX.io appears to have little no fees at first glance. They are able to do this by charging a premium on the Bitcoin price. We estimate this comes in around a 7% premium on average.
When it comes to purchasing limits, it really depends on your accounts verification tier. The first level has daily deposits of $500 and $100 withdrawals while the highest tier has unlimited in each category. Payment methods include cards, bank transfers, and more.Visit CEX.io Read Review
There are two factors that affect the amount of Bitcoin you receive. These are the exchange fees, and the going price of Bitcoin.
Small differences in exchanges pricing is a common thing in cryptocurrency, so keep an eye out when making your purchases.
The Bitcoin halving also has greatly affects the price, so be sure to follow a Bitcoin halving countdown to keep track of when it’s going to happen.
Absolutely yes! With the price of Bitcoin being in the thousands, many potential investors have started to become intimidated by its high price.
Did you know Bitcoin is divisible to the eighth decimal place? (sometimes even more). This small denomination is known as the “Satoshi” after the initial creator of Bitcoin.
Several cryptocurrency exchanges allow for the purchasing of Bitcoin and other cryptocurrencies.
The most popular cryptocurrency exchange, Coinbase, allows users to purchase as little as $2 at a time! This is not recommended, due to Coinbase’s minimum purchase fee, but can certainly be done!
The exchange Coinbase allows users to buy cryptocurrency such as Bitcoin instantly when a credit or debit card is used. This is great for buying dips in the price.
On most exchanges, if a credit or debit card is used, you will have instant delivery of your Bitcoins. This is perfect for buying the bottom, or catching a big move right before it happens.
Buying Bitcoin using a credit or debit card is a much faster way of obtaining cryptocurrency.
If you were to use your bank account, exchanges will make you wait 3-8 days to receive your cryptocurrency, making you unable to move it off the exchange. This can be inconvenient, so some users decide to use a card for their purchases.
If time is not a concern, consider using a bank transfer to purchase Bitcoin, as you will save on purchasing fees.
There are two main disadvantages of buying Bitcoin with a card. The first is the higher fees associated with the process. For example, Coinbase charges a 1.49% fee for buying Bitcoin with your bank, but a 3.99% fee if you were to use a credit or debit card.
The other disadvantage of buying Bitcoin with a card is the purchasing limits. Due to the risks exchanges face when users purchase Bitcoin with a card, they offer lower limits. These limits can be increased when:
If you reach your limits on one exchange, try using a combination. As stated above, we recommend Coinbase, Coinmama, and Bitpanda. Limits are replenished on exchanged slowly over the course of the week, so depending on how patient you are you could just use one exchange.
Absolutely! Coinbase and other exchanges are required to ask for this information in order to comply with government regulations. There has been no data breaches or anything of the sort so far. However, there is always a chance of your information being used, so it is important to be aware that it is possible.
Absolutely! The fees associated with this method are higher than a credit or debit card, but it certainly is possible. To learn more, check out our in-depth guide to buying Bitcoin with Paypal.
To sell your Bitcoin or other cryptocurrencies on an exchange after purchasing, just go to the appropriate page or tab, for example, Coinbase has a Buy/Sell tab where users can buy and sell on the same page.
Most exchanges will charge a fee for selling, usually around 1%-2%. The exchange CEX.io will allow users to sell Bitcoin and receive funds directly to their credit card.
Due to issues with liquidity and regulations, it is difficult for exchanges to offer altcoins directly for fiat. To get around this, just buy Bitcoin first, and send the purchased Bitcoin to crypto to crypto exchange like Binance to buy alt-coins.
This is up to you and depends on how much experience you have trading, and how much you are willing to risk when trading. There is definitely some serious gains that can be made if done properly.
This will really depend on the country you reside in, which coins you traded, and whether you profited or loss. For more information on cryptocurrency taxes and your different software options, check out our guide!
At the moment, the market rate for Bitcoin credit and debit card purchases is hovering around 5%. Although that might seem like a lot for a regular currency transaction, it is easier to justify given the security risks exchanges face, and the potential gains cryptocurrency including Bitcoin have to offer.
Using a bank transfer will almost always be the most cost-effective option when purchasing cryptocurrency, but it is important to be educated about your different payment options.
Lastly, before purchasing Bitcoin, it is important to learn about the different options you have for storing your Bitcoin. Leaving cryptocurrencies such as Bitcoin on an exchange for an extended period of time is not recommended.