The bank system of making payments via Credit/Debit Cards is by far the most popular and universal means of payment. This is so because banks were the oldest method of payments before the new systems such as Skrill, Neteller, e-wallets, etc were introduced at the wake up of the 21st century. It is therefore not surprising to find out that; a lot of people who seek to buy the most popular cryptocurrency today, prefer to do so using this traditional method to which virtually everyone has been exposed. Therefore, buying Bitcoin with Credit/Debit Cards is the most common and preferred method by the masses who have not been exposed to using other payment methods. Added to this, making payments with Credit/Debit Cards enables one to pay instantly for Bitcoin using his fiat currency deposited at the bank.
Based on these convictions, we have described in this work, the simple way of buying Bitcoin with Credit/Debit Cards. We have further provided the list of the exchanges that allows one to buy Bitcoin using Credit/Debit Cards. In all, this work will help you understand the benefits of buying Bitcoin with Credit/Debit Cards. And for those still wondering about the best method to use in buying Bitcoin today, you might find using Credit/Debit Cards the best option for you.
What is Bitcoin?
Bitcoin is a digital currency created in 2009; as an online method of making payments. It was delivered by an unknown founder called Satoshi Nakamoto as a revolt against the centralized means of payment using fiat currencies – which gave the government total control over the individual’s funds. People wanted to have more control and privacy over their wealth. Others preferred to transact anonymously and for this reason this digital currency was created.
Where can I buy Bitcoin today?
There are two most popular methods of buying Bitcoin today. Either to buy directly from the various crypto exchange (or brokers) or to buy from merchants who have become the middlemen for buying and selling Bitcoin today. Amongst these two options, the best place to buy Bitcoin is through an exchange or brokers. This is because most exchanges and brokers operating today are regulated by the government. On the contrary, it is not so when it comes to buying from merchants. The greatest number of disappointments comes from buying from merchants.
Who are the founders of Bitcoin?
The identity of the founder of Bitcoin remains unknown till the present time. However, people often used the name Satoshi Nakamoto to refer to the founder of Bitcoin. Nonetheless, the identity of this Satoshi Nakamoto is still a mystery and unknown to the public. There have been a lot of investigations so far on finding the founders of Bitcoin. The first major public investigations ended with Dorian Nakamoto who was rumored to be Bitcoin’s founder. However, Dorian publicly denied this claim.
Others considered Craig Wright to be the real founder of Bitcoin based on his claims. However, critics believe he is just seeking public attention for his personal gains.
Step-by-step guide on how to buy Bitcoin with Credit/Debit Cards
There are five important steps to follow when seeking to buy Bitcoin with Credit/Debit Card. We have simplified them below:
Step 1: Select an exchange that includes credit/debit cards payment options:
Not all exchanges have the option of buying Bitcoin with credit/debit cards. Therefore you need to make proper research if the exchange you have chosen, has included the payment option for using either Credit/Debit Cards. We have further provided in this work the list of ten best crypto exchanges to buy Bitcoin using Credit/Debit Cards.
Step 2: Sign up for an account with the Exchange:
Once you have confirmed that the exchange has made provisions for making payments via Credit/Debit Cards, then you can boldly proceed to sign up for an account with the exchange. This requires you to enter your basic identification details such as Name, Phone number, Country, Address, Email, etc.
Step 3: Verify your Identity:
Often after completing your registrations, some exchanges require more details from you before you can become fully eligible to use their platforms. Here, they require you to upload your identity documents to confirm that the information you have provided during your registrations is correct. To do this, you may be requested to upload your Government approved Identity Card and any proof of address.
Step 4: Link your credit/debit card to the exchange for making payments:
The next step after completing the identification verification process is to add your credit/debit card as your chosen method for payment. To do so, you will need to go to the payment methods options and click on debit/credit cards. Once you do this, you will be requested to provide your debit/Credit card details such as the Name on the Card, Card number, etc.
Step 5: Place your order:
The final step after you have linked your Credit/Debit Card to the exchange is to place your order for the desired amount you wish to buy. The amount will be charged from your account once you place the order. However, to avoid cases of failed transactions, you need to make sure you have up to the amount you wish to buy on your credit/debit cards including the extra bank charges.
Five major benefits of buying Bitcoin with Credit/Debit Cards
There are five major advantages of buying Bitcoin using Credit/Debit Cards. We have discussed them below:
- Simple: The processes involved in buying Bitcoin with Credit/Debit is very simple compared to other methods. Thus, all you need to do is to link your debit/credit to the exchange and proceed to place your orders. Also to make the process easier, the exchange saves your card details after you enter it for the first time, such that in subsequent times you don’t have to fill it again. Therefore, all you have to do is to proceed to place your orders.
- Very Fast: Making payments with Credit/Debit Cards is very fast. Once you place your order, the money will be deducted from your account immediately and you will receive the Crypto you have paid for from the exchange.
- Secure: Buying Bitcoin with Credit/Debit Cards is very secure. Here, the money is refunded to your bank account in cases of failed transactions. Also, it helps to reveal the identity of the receiver too.
- Traceable: Making payments with Credit/Debit Cards helps to keep a record of all transactions with the exchange. Often the bank keeps records of the receiver and you can easily trace them with the evidence (invoice) provided by the bank after payments or through your bank account statement.
- Making Payments with Fiat Currency: Buying Bitcoin with Credit/Debit Cards gives one the privilege of making payments using his fiat Currency. Often banks do an automatic conversion to the denominated currency of the receiver.
What are the disadvantages of Buying Bitcoin with Credit/Debit Cards
There are some disadvantages associated with buying Bitcoin with Credit/debit card. We have explained them below:
- High Charges: Often there are high charges deducted for making payments using Debit/Credit cards, especially when there is a need to convert the fiat currency used in making payments to a foreign currency.
- Limits to amounts purchased: A major disadvantage of using Credit/Debit Cards in buying Bitcoin is the limitations placed by the banks on the maximum amount to be purchased daily. This varies according to country. Some banks place the daily limit of purchase as $10,000 while others leave theirs as $50,000.
- Not allowed in all countries: Because Bitcoin is not yet a legal tender globally, many countries restrict their citizens from buying Bitcoin with their credit/debit cards.
- Risky: Buying Bitcoin with Credit/debit cards could be considered risky as it requires one to enter one’s card details and private pins on the exchange. This could be dangerous as some fraudulent dealers who store this data on their platform might proceed to deduct more money from the client’s account without his consent.
What is the minimum amount of Bitcoin to buy with a Credit/Debit Card?
There is usually no minimum on the amount of purchases one can make using his Credit/Debit Cards. However, some exchanges place limits on the minimum amount of Bitcoin one can purchase from their platforms using Credit/debit cards. For instance, the minimum amount indicated by eToro is $50, while the minimum for Coinmama is $30. On the other hand, there is no minimum amount required for buying Bitcoin using Credit/Debit Cards on Luno exchange.
List of Countries where one can buy Bitcoin with Credit/Debit Cards
Australia: The Australian Transaction Reports and Analysis Centre (AUSTRAC) recognizes Bitcoin as digital property and subject to taxation.
Canada: The Canadian is considered a Commodity by the Canadian Revenue Agency and taxable.
United Kingdom: Bitcoin is recognized as a digital asset in the UK and all crypto traders are required to pay taxes on their income.
United States: The US treasury recognizes Bitcoin as a convertible currency that is equivalent to fiat currencies. To this end, the US internal revenue services considers Bitcoin as taxable assets.
European Union: The European Union recognizes Bitcoin as a digital asset and subject to taxation.
El Salvador: Here Bitcoin is considered a legal tender.
Countries where buying Bitcoin with Credit/Debit Cards are prohibited
China, Egypt, Bahrain, Burundi, Cameroon, Zimbabwe, Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, Tunisia, Nigeria Gabon, Georgia, Guyana, Kuwait, Lesotho, Libya, Macao, Maldives, Vietnam.
Is Bitcoin a reliable digital asset?
The unexpected crashes we have seen on many digital assets today, especially the recent crash in Luna before they created a new coin, had made us very skeptical about every other Cryptocurrency. However, the fact remains that Bitcoin has the strongest network, with a definite supply that protects its users from rug pulling. Also being the oldest cryptocurrency created, it has since then remained stronger, unlike other cryptocurrencies that have faced crises at some points. Many therefore consider it safer than any other Cryptocurrency.