While the cryptocurrency revolution is taking the world by storm, Bitcoin has emerged as the undisputed biggest player in the crypto world.
There are a plethora of ways to invest in Bitcoin today. However, as an investor, you shall be looking at safe and convenient ways to invest in crypto.
If you're looking to know how you can invest in Bitcoin safely through debit cards, this post is for you. Read on to know more.
There are many reasons that may drive you to invest in Bitcoin. You might simply want to join the crypto revolution. You might want to add a new dimension to grow your business and find success in the market.
The potential is endless with Bitcoin and crypto. All you need is to identify ways to invest in it that are safe, convenient, and don't cost you much. You need to be aware of platforms and payment methods that risk your security and charge you hidden fees.
Credit cards, debit cards, bank transfers, and payment wallets such as Google Pay and Apple Pay have emerged as some of the most prominent payment methods to buy and sell Bitcoin. They are safe, quick, and easy to understand and operate.
We've looked into some of the most convenient payment methods to buy Bitcoin and make your crypto investing easier. Let's dive in.
Credit cards and debit cards are some of the most common ways used by investors to buy Bitcoin. In nature, they are similar to buying Bitcoin with automated clearing house transfers. This is of course after you've chosen a platform to trade crypto through.
To buy Bitcoin with credit card, you'll first need to enquire whether the exchange you choose allows the crypto exchange or not. Many exchanges don't allow crypto for various reasons, the most prominent of them being the risk of fraud and high processing fees.
Moreover, the charge for credit card processing is an additional charge over and above the transaction fees and processing fees a crypto transaction often has associated with it. This is because Bitcoin purchases are treated as cash advances and interest rates are usually high on them.
You stand to earn a few lucrative rewards for choosing a credit card as your payment option to purchase Bitcoin, however, they are in Bitcoin only. So, a regular Rewards Credit Card will be a Bitcoin Rewards Credit Card
a.How to buy Bitcoin with a credit card
Follow the given easy steps to buy Bitcoin via credit card as your payment option on the crypto exchange:
Most platforms have a limit of minimum and maximum Bitcoin you can buy with a credit card. It usually depends on your KYC levels and account limit.
Many platforms pride themselves in offering no maximum limit on how much crypto you can buy through your card.
However, you need to be responsible for your spending. Having no limit on your spending is suitable for big traders that make trades in huge amounts. For rookie traders, having a spending limit helps you curb overspending.
Popular payment wallets such as PayPal, Apple Pay, and Google Pay offer another easy way to buy Bitcoin. We'll be focusing on the most popular one — PayPal. There are primarily two ways to use PayPal to buy Bitcoin:
a)Connect account — You'll need to connect your PayPal account to your bank account or your debit card. This way, you'll be using PayPal as the merchant to go through transactions and make payments.
The actual money goes in and out of your bank account. The primary source still remains your bank and PayPal is only a merchant to make it happen.
b)PayPal balance — You'll put money in your PayPal wallet, transferring it from your bank account. Then, you'll be using this balance to directly purchase Bitcoin from a crypto exchange.
Here, the payment made will not involve your bank account or bank, but what you have in your PayPal wallet.
Currently, there are four prominent cryptocurrencies that can be purchased directly through PayPal. They are Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. Moreover, you'll be able to use Bitcoin to purchase goods and services via PayPal — just like you would use regular money.
You'll be charged a transaction fee for each purchase of Bitcoin you make through PayPal. This amount is in correspondence with the dollar amount of the purchase of Bitcoin.
However, there is one big disadvantage when you buying Bitcoin through PayPal. The Bitcoin you purchase is not technically yours. It remains on PayPal and cannot be transferred to any other platform such as a crypto wallet or personal wallet.
One way to overcome this issue is to resort to using PayPal as a payment option on an exchange i.e., a merchant to buy Bitcoin through rather than the PayPal wallet. This way, you will be able to buy Bitcoin and transfer it to different platforms with ease.
Put simply, Bitcoin ATMs are in-person exchanges for Bitcoins. Just like you would get cash out of an ATM by using your card, you can use a Bitcoin ATM to purchase Bitcoins.
Here is how you buy Bitcoin through Bitcoin ATMs:
Bitcoin ATMs are fairly easy to use and have been gaining prominence in recent years. The only challenge they face is available. It's not easy to find a bitcoin ATM everywhere or easily. That said, this issue is also being tackled.
More and more Bitcoin ATMs are being available for use by the general public. One popular example of this was seen when retail giant Walmart made Bitcoin ATMs available on its premises in October 2021.
Only two charges come with an ATM Bitcoin purchase. A purchase fee and a conversion fee accompany a Bitcoin purchase through an ATM. This fee is charged for converting the fiat currency to Bitcoin.
However, both fees are low in comparison to what other methods charge traders for the same transactions. Another factor to note is that you need to have government-issued identity proof to be able to make a purchase at the Bitcoin ATM.
One direct way to purchase Bitcoin is through another user. This informal way of buying and selling Bitcoin is being regulated through some exchanges known as peer-to-peer exchanges. To buy Bitcoin through a peer-to-peer exchange, follow these steps:
Peer-to-peer exchange runs like any other platform where users sell and buy products amongst themselves. LocalBitcoins is an example of such an exchange. You have the option to search for the best deals and make transactions as you please.
A disadvantage of peer-to-peer exchange is that the person you trade with can turn out to be fraudulent. Although there is no anonymity on these exchanges and people need to reveal their identities to trade, users can just as easily fake their identities to defraud innocent users, especially novice users who don't know much about how the platform works.
The exchanges have come up with a handy way to combat this issue. They have rating systems for users, letting people know how credible a user is before they trade with them.
Bitcoin and cryptocurrency have revolutionized the market in just a decade of their emergence. As more and more traders look to invest in the biggest cryptocurrency, it's important to recognize ways that are safe and convenient.
Credit cards, debit cards, and payment wallets such as PayPal and Google Pay have emerged as some of the most popular payment options for traders all over the world.
Some alternative options such as Bitcoin ATMs and P2P exchanges have also found success with certain traders.
Let us know in the comments what you think are the most efficient ways to buy Bitcoin with ease.
Atreyee Chowdhury is a freelance content writer with more than 10+ years of professional experience. She is passionate about helping SMBs and enterprises achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, travel, and experiment with different cuisines in her free time. You can follow her on LinkedIn.
Also, you can trade Bitcoin anonymously with decentralized exchanges. I use Crypton exchange launched by UtopiaP2P ecosystem. It is an anonymous platform with no KYC registration and without personal data requirements.