Buy Bitcoin With Debit Card

How To Buy Bitcoin With Debit Card Or Credit Card

The Ultimate Guide To Buying Bitcoin With A Debit Card

Buying bitcoin may seem intimidating but it’s actually very simple.

Every newcomer to bitcoin should know where they can buy bitcoin from and how to do it.

In this guide, we streamline how you can buy bitcoin with a debit card or credit card from any exchange with easy to follow instructions.

Why Debit Card Is An Effective Method For Buying Bitcoin

A debit card uses funds directly from a bank account with money owned by you. A credit card, on the other hand, must be verified by your credit card issuer before the transaction can go through. Many exchanges will also accept prepaid debit cards as long as an identity is attached to it.

Is It Safe To Purchase Bitcoin With A Debit Card?

Buy Bitcoin With Debit Card

There was a period when purchasing bitcoin using a debit card was difficult, but things have changed now.

With a licensed digital currency exchange, the process of purchasing bitcoin with a debit card is not only instant and convenient but also secure and oftentimes insured (as is the case with Coinbase).

After buying bitcoin from an exchange we recommend that you move your bitcoin to a personal cold storage wallet such as the Trezor One, Trezor Model T or KeepKey for safekeeping. To learn more about why see the section on keeping your bitcoin safe.

Types Of Debit Cards

The most commonly encountered forms of debit cards and credit cards are those issued by VISA, Mastercard and American Express.

Advantages

  • Convenience
  • Speed
  • Security

Buying bitcoin using your debit card gives you a faster and more convenient way to buy bitcoin. When purchasing with a bank transfer digital exchanges may delay up to 3-8 days for you to get the bitcoin you purchased, thereby making it difficult for you to perform instantaneous transactions.

Banks that allow the purchase of bitcoin with a debit card include Ally Bank, Simple Bank, USAA, and Goldman Sachs.

Disadvantages

  • Fees
  • Lower purchase limits

The first disadvantage of buying bitcoin with a debit card is that you will incur a very high fee. A digital exchange like Coinbase, for instance, charges a 1.49 percent fee for purchasing bitcoin with a bank transfer. On the other hand, they charge a fee of 3.99 percent if you buy bitcoin using your debit card.

The other disadvantage is that buying bitcoin with a debit card attracts a purchasing limit. Purchasing limits increase when any of the following occurs:

  • Identity verification
  • A bank account is linked
  • A phone number is linked to your account
  • Purchase history is established

Banks that strictly ban or limit the purchase of bitcoin with a debit card include Bank Of America, Chase, Citigroup, Wells Fargo, Discover, Capital One, TD Bank, and PNC Bank.

Requirements

Before we delve into how you can buy bitcoin with your debit card, you must first know the necessary requirements.

Private Documents

Currently, the United States Securities And Exchange Commission (SEC), demands that all users who are registering for an exchange must first properly verify their identity before being able to trade.

Every exchange requires that you verify your identity in one way or another i.e. phone verification, identity verification, etc. Most exchanges will ask for multiple forms of identity verification such as a driver’s license, state ID or passport in addition to a social security number (SSN).

In addition, some exchanges will ask for a bank statement or proof of address along with a selfie to verify your address and credit card or debit card.

A Secure Web Connection

Bitcoin is money with its own protocol so it requires an Internet connection.

If you should trade your bitcoin on Wi-Fi that is either public or unsafe, you will be vulnerable to attacks from cyber hackers.

Bank Account, Debit Card or Credit Card

You will need fiat currency like U.S. dollars or any other currency to carry out a purchase for bitcoin. Your wallet is connected directly to the bank that issued your debit card or credit card. Be sure to find a bitcoin-friendly bank that will let you buy bitcoin with a debit card or credit card smoothly.

Where To Buy Bitcoin With Debit Card

Generally, purchasing Bitcoin with either a debit or credit card was once very difficult to achieve. Fortunately, exchanges such as CEX.IO, Coinbase, and Coinmama have made the process not just simple but swift as well.

Bitcoin can be purchased from the comfort of your room or while traveling on a smartphone. Many people are attracted to the idea of being their own bank and trading their own cryptocurrency and exchanges make it simple to do so.

 CompanyWebsiteFeesCountries SupportedCustomer ServiceRatingMore Information 
1
CEX IO logoCEX.IO
cex.io2.99%Every country except for a few (see banned countries)Knowledge Base9.2Read Review
2
Coinbase App LogoCoinbase
coinbase.com3.99%102 countries (see full list)Knowledge Base9.0Read Review
3
Coinmama LogoCoinmama
coinmama.com5.00%190 countries (see full list)Knowledge Base8.9Read Review
4
BitIt LogoBitIt
bitit.io3.90%50 countries (see full list)Knowledge Base8.8Read Review
5
Changelly Exchange LogoChangelly
changelly.com5.00% + 0.25%Every countryKnowledge Base8.8Read Review

How To Be Secure On Bitcoin Exchanges

If you are purchasing large amounts of bitcoin on an exchange it would be wise to enforce a few security measures for peace of mind and the safety of your money. The first thing you can do is add a strong password that is impossible to guess. In addition, make sure to enable 2-Factor Authentication (2FA) as an extra security layer.

Most importantly transfer your bitcoin to a cold wallet early and often.

Best Exchanges For Buying Bitcoin With Debit Card

The following are digital currency exchanges that permit the purchase of bitcoin with a debit card (our top recommendation is CEX.IO with Coinbase a close second).

CEX.IO

CEX IO Bitcoin Exchange Platform

CEO:Oleksandr Lutskevych
Headquarters:London, United Kingdom
Founders:Oleksandr Lutskevych, Dmytro Kalynovskyi, Victoria Polyakova, Peter Ivanov
Founded:2013
Website:www.cex.io
Customer service:Knowledge Base

CEX.IO is one of the best options for you to buy bitcoin with your debit card. CEX.IO has been in operation since 2013 and is based in London, United Kingdom. CEX.IO has six coins listed on its platform including Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, and Bitcoin Gold.

This exchange offers a high level of security. CEX.IO has a good liquidity policy, as well as cross-platform trading through its website and mobile app.

CEX IO Home Page - Bitcoin Exchange You Can Trust

CEX.IO has over 2 million users according to their website, and they offer margin trading for individuals who want near 100 percent uptime. CEX.IO is present in about 95 percent of countries around the globe.

This digital currency exchange allows the purchase of bitcoin using different currencies including Dollars (USD), Rubies (RUB), Euros (EUR), and Pounds Sterling (GBP).

The verification process of CEX.IO is quite extensive and requires about thirty minutes to complete.

Supported Countries

Residents of Afghanistan, Bosnia and Herzegovina, Bangladesh, Bolivia, Burundi, Democratic Republic of the Congo, Central African Republic, Cuba, Algeria, Ecuador, Ethiopia, Iraq, Iran, Iceland, Cambodia, North Korea, Laos, Lebanon, Libya, Morocco, Nepal, Pakistan, Somalia, South Sudan, Sudan, Syria, Uganda, Vietnam, Vanuatu, Yemen, and Zimbabwe may not be able to pay by card.

Fees And Limits

CEX.IO charges a fee of 2.99 percent for debit card purchases. Additionally, there is a fee of 2.99 percent when you sell your Bitcoin using your debit card.

There is a limit to how much bitcoin you can buy on CEX.IO. The minimum purchase amount is $20. The daily purchase limit is $1000. The weekly purchase limit is $3000. These limits are, however, for basic members. You can submit further verification if you would like to increase your daily maximum deposit and withdrawal limits.

Fully verified users of the platform have the opportunity to purchase as much as they can afford.

Pros

  • Supported worldwide
  • Low fees (2.99%)
  • Established and trustworthy

Cons

  • Verification procedure requires private information
  • Lengthy verification time

How To Buy Bitcoin With Debit Card On CEX.IO

CEX IO - Sign Up
  • Go to the ‘Cards’ tab on the menu. Click on ‘Add new card’.
CEX.IO Add A Debit Card
  • Enter your debit card information. CEX.IO accepts both Visa and MasterCard. Click proceed.
CEX.IO Enter Card Information
  • You will need to verify your card and identity with a selfie.
CEX.IO Selfie And Identity Verification
  • Once your card is successfully verified you can deposit funds or purchase bitcoin directly.
CEX IO - Manage Payment Cards
  • Go to the buy/sell tab or your payment card and make sure ‘payment card’ is the payment method. Enter the amount you would like to deposit or purchase.
CEX.IO Payment Methods
  • You will then be asked to confirm your payment method and 3-4 digit CVV/CVC code. Place the order.
CEX.IO 3 Digit CVV/CVC Code Verification Step
  • After the order is placed you have officially deposited cash or purchased bitcoin instantly on CEX.IO.

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Coinbase

Coinbase Company Official Logo

CEO:Brian Armstrong
Headquarters:San Francisco, California
Founders:Brian Armstrong, Fred Ehrsam
Founded:2012
Website:www.coinbase.com
Customer service:Knowledge Base

Out of all the exchanges, Coinbase is probably the most accessible and beginner-friendly as they have the backing of a large number of venture capital investors. Coinbase has been in operation since 2012 and is based in San Francisco, California.

As an exchange, Coinbase is very serious about its security and keeps less than 2% of customer funds online and the rest in offline storage. If you are a United States resident, up to $250,000 worth of your cryptocurrency stored on the Coinbase servers is protected by FDIC insurance.

With a Visa or Mastercard debit card, users are able to purchase bitcoin in small amounts and withdraw using a bank account, wire transfer or PayPal. There is no deposit fee charged by Coinbase to move currency onto its platform, so it works well as a wallet too. Make sure to use a combination of a strong password and 2-Factor Authentication to ensure the protection of your account.

Coinbase Wallet - The Easiest And Most Secure Crypto Wallet

Coinbase Pro is a subsidiary of Coinbase. Coinbase Pro gives users access to a simplified coin exchange system for individuals who are comfortable with trading cryptocurrency. Coinbase Pro is available in 77 countries as of 12/23/19.

Supported Countries

Coinbase is available on 6 continents and on over 100 countries around the world (see full list).

  • Africa
  • Asia
  • Australia
  • Europe
  • North America
  • South America

Fees And Limits

Coinbase charges a fee of 3.99 percent for bitcoin purchases with a debit card.

You are permitted to purchase different digital currencies from the platform daily, depending on your account verification level. New users are able to purchase $250 a week with a debit card. At the highest tier of verification, $50,000 is the purchase limit.

The bitcoin network miner fee for transactions and exchanges is minimal.

Pros

  • High liquidity
  • Large purchasing limits
  • Ability to buy bitcoin instantly with a debit card
  • Accessible (iOS and Android versions are available as well)

Cons

  • Slow bank transfers
  • Coinbase may monitor how and where you spend your bitcoins

How To Buy Bitcoin With Debit Card On Coinbase

Coinbase - Sign Up
  • Enter your phone number. Coinbase will send you a code. You will then be requested to type in that code to verify your phone number.
  • Verify your identity.
Coinbase - Verify Your Identity
  • Link a payment method. Go to your settings and ‘Link A New Account’.
Coinbase - Link A New Account
  • Choose debit card as a payment method and enter your card details.
Coinbase - Add A Payment Method
  • Enter a $ amount or BTC amount for how much bitcoin you would like to purchase.
Coinbase - Buy And Sell Bitcoin In $ Or BTC
  • Your purchased bitcoins are added to your wallet instantly on Coinbase.

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Coinmama

Coinmama Logo

CEO:Asaph Schulman
Headquarters:Bratislava, Slovakia
Founders:Asaph Schulman, Nimrod Gruber, Martin Koelbaek, Guy Ben-Yossef, Yaki Oliel
Founded:2013
Website:www.coinmama.com
Customer service:Knowledge Base

Coinmama is a bitcoin exchange that specializes in the purchase of bitcoin with either a debit card or credit card. Coinmama has been in operation since 2013 and is based in Bratislava, Slovakia.

Coinmama has an easy to use interface and is an excellent digital exchange for purchasing bitcoin. Different packages are offered on Coinmama for buying bitcoin. You are also allowed to specify the amount of bitcoin you want to purchase.

Coinmama - Homepage Dashboard

Coinmama does not provide you with a digital wallet to store your purchased Bitcoin. If you also want to store the Bitcoin you bought, the exchange will ask for a wallet address. We recommend using a cold wallet for the wallet address, but ultimately the choice is yours to make.

Once you have verified your account and your purchase is carried out, you will receive your bitcoins in minutes. The Coinmama platform has an excellent customer service program should you have any questions.

Overall, Coinmama is a reputable and secure platform for getting started with purchasing bitcoin with a debit card or credit card.

Supported Countries

Coinmama is supported in over 190 countries and is constantly adding more.

Fees And Limits

This digital currency exchange charges a 5 percent fee for credit card and debit card purchases.

Coinmama has a higher purchasing limit than most exchanges as well as instant delivery. You can buy $5,000 worth of cryptocurrency per day and $20,000 of cryptocurrency per month on the exchange. Coinmama has a minimum purchasing limit of $60.

Pros

  • Available worldwide
  • High purchasing limits
  • Dependable and trustworthy

Cons

  • High fees
  • Delay in processing time

How To Buy Bitcoin With Debit Card On Coinmama

  • Create an account on the platform using your email, name, and country of residence. Check your email for account verification.
Coinmama - Sign Up
  • Verify your identity. A driver’s license, state ID or passport is required.
Coinmama - Verification - Enter Your Personal Details
  • Click on the ‘Bitcoin’ button on the menu to proceed to the purchase screen.
Coinmama - Bitcoin Purchase Menu
  • Various packages will be displayed. Choose your preferred plan or enter your desired amount of bitcoin in $ or BTC.
Coinmama - Bitcoin Packages
  • Enter your wallet address to receive bitcoin.
Coinmama - Enter Your Wallet Address
  • Enter your card information. Click ‘Pay Now’ when you are finished.
Coinmama - Enter Your Card Information
  • Congratulations! You have officially purchased bitcoin on Coinmama.

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BitIt

BitIt Logo

CEO:Nicolas Katan
Headquarters:Paris, France
Founders:Nicolas Katan, Ugo Mare, Simon Potier
Founded:2015
Website:www.bitit.io
Customer service:Knowledge Base

BitIt has been in operation since 2015 and is developed, hosted and regulated in Paris, France. BitIt is one of the most convenient platforms for buying and selling crypto-assets. Through its simple and intuitive e-commerce platform, users are able to acquire cryptocurrencies in minutes.

BitIt enforces the highest security standards for the protection of your data. Users can buy bitcoin on this platform using multiple payment methods including credit card or debit card. The app supports Visa, American Express, Maestro, and MasterCard.

BitIt - Instant, Easy And Secure Cryptocurrency Purchases

To get started with buying bitcoin on BitIt you will need to provide a form of identity verification, proof of residency, current bank statement, and a selfie of you holding your credit card or debit card.

Supported Countries

BitIt is available in more than 50 countries around the world (see full list).

Fees And Limits

BitIt supports a multitude of currencies including EUR, USD, JPY, DKK, GBP, SEK, NOK, TRY, AUD, CAD, CNY, HKD, KRW, SGD, and ZAR. Credit card and debit card transactions incur a transaction fee of 3.9%.

Once you are verified, you can buy up to 1500€ of bitcoin per week using your credit card or debit card. The deposit fee is 0.15% with a minimum fee of 3€.

The minimum sell amount is 50€ and the maximum sell amount is unlimited.

Pros

  • Supports many currencies
  • Large selection of cryptocurrencies
  • High purchasing limits
  • Ledger and Trezor wallet support

Cons

  • Lengthy verification

How To Buy Bitcoin With Debit Card On BitIt

BitIt - Sign Up - Create An Account
  • Fill in the required profile information.
BitIt - Account Profile
  • Verify your identity by uploading a driver’s license, passport or state ID.
BitIt - Identity Verification
  • Head over to the ‘Buy’ tab and pick ‘Bitcoin’ as your crypto. Select ‘Credit/Debit Card’ as your payment method. Choose the amount you would like to purchase in $ or BTC. Lastly, select a wallet address to send the bitcoin to. If you have a Ledger or Trezor hardware wallet, you can connect them here for instant processing. Proceed to payment.
BitIt - Buy Bitcoin With Debit Card
  • Enter your card details. Finalize your order.
BitIt - Enter Card Details
  • You have successfully purchased bitcoin on BitIt.

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Changelly

Changelly Exchange Logo
CEO:Konstantin Gladych
Headquarters:Malta, European Union
Founders:Konstantin Gladych, Ilya Bere
Founded:2013
Website:www.changelly.com
Customer service:Frequently Asked Questions

Changelly is an instant cryptocurrency exchange with over 2 million users and is one of the most accessible exchanges for trading between cryptocurrencies. On Changelly, you also have the option of buying bitcoin with a bank card. Changelly has been in operation since 2013 and is based in Malta, European Union.

To give its customers the best rate, Changelly makes bids and asks from different cryptocurrency exchange platforms including Binance, Poloniex, and Bittrex then selects and suggests the best available rate. Changelly accepts fiat currencies in USD, EUR, and GBP and provides safe and fast transactions without revealing user identities.

Changelly - Home Page Dashboard

The service requires an email address to create an account. Alternatively, you can create an account using an existing Twitter or Facebook profile.

Supported Countries

Changelly can be used from any country, however, transactions must be in either USD, GBP or EUR.

Fees And Limits

Changelly charges a 0.25% service fee along with the bitcoin network fee for exchanges. Simplex charges a 5% processing fee for credit card and debit card fiat to crypto purchases.

Changelly has a minimum purchasing limit of $50 if paying with a debit card or credit card. The daily purchasing limit is 20,000 USD and the monthly purchasing limit is 50,000 USD.

Pros

  • Low fees
  • High exchange limits
  • 24/7 live chat support

Cons

  • Limited payment methods

How To Buy Bitcoin With Debit Card On Changelly

Changelly - Sign Up
  • From the homepage select ‘Buy Crypto’. Choose the crypto pair you would like to exchange. In this case, we will select USD/BTC as the exchange pair. Enter the amount you would like to purchase either in USD or BTC.
Changelly - Choose Payment Method In USD or BTC
  • Select ‘Pay With Visa/Mastercard’.
Changelly - Pay With Your Bank Card
  • Enter a destination bitcoin wallet address.
Changelly - Select Bitcoin Wallet Address
  • From here you will be brought to a Simplex checkout screen. Enter your card details. Pay now.
Changelly Simplex Checkout Screen
  • You have now successfully purchased bitcoin on Changelly.

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BitPanda

BitPanda Logo

CEO:Eric Demuth
Headquarters:Vienna, Austria
Founders:Christian Trummer, Eric Demuth, Paul Klanschek
Founded:2014
Website:www.bitpanda.com
Customer service:Knowledge Base

BitPanda has been in operation since 2013 and is based in Vienna, Austria. This digital currency exchange is distinct from other exchanges due to the presence of many different payment methods on its platform. BitPanda has competitive fees and only sells cryptocurrency to a limited number of countries.

BitPanda offers fiat deposits in Euros (EUR), Dollars (USD), British Pounds (GBP) and Swiss Francs (CHF) using a variety of payment methods including Visa or Mastercard debit card, Zimpler or bank transfer (SEPA).

The BitPanda platform is straightforward and easy to use for beginners.

BitPanda Dashboard For Trading

Supported Countries

BitPanda is supported in 54 countries (USA and China are not included due to regulatory reasons). BitPanda is Europe’s leading cryptocurrency platform.

Fees And Limits

Purchases, sales, and transactions are processed in real-time. BitPanda charges a 1.49 percent fee for every cryptocurrency purchase and a 1.29 percent fee for every sale.

With a debit card or credit card, BitPanda users are able to deposit 2.500,00 EUR daily and 300.000,00 EUR monthly. BitPanda users have an unlimited trading limit.

Pros

  • Low fees
  • Multiple payment methods
  • Easy verification process
  • Dependable and trustworthy

Cons

  • Available to European countries only

How To Buy Bitcoin With Debit Card On BitPanda

BitPanda - Create An Account
  • Verify your profile and link your debit card.
  • Select the cryptocurrency you want to purchase. In this case select Bitcoin.
BitPanda - Choose Cryptocurrency To Purchase
  • Select ‘BTC Buy’.
BitPanda - BTC Buy
  • Choose your preferred method of payment. In this case, we will pay with a debit card in Euros.
BitPanda - Choose Payment Method
  • Select the amount you want to buy in Euros or BTC.
BitPanda - Select The Amount Or The Value Of Bitcoin You Would Like To Buy
  • Accept the terms of purchase by clicking on ‘Summary’.
BitPanda - Accept Purchase Terms And Buy Now
  • Finally, click on ‘Buy now’ to purchase bitcoin instantly on BitPanda.

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Luno

Luno Logo

CEO:Marcus Swanepoel
Headquarters:London, United Kingdom
Founders:Carel van Wyk, Marcus Swanepoel, Pieter Heyns, Timothy Stranex
Founded:2013
Website:www.luno.com
Customer service:Help Center

Luno has been in operation since 2013 and is based in London, United Kingdom. The Luno platform enables users who reside in Europe the ability to buy bitcoin using bank transfer, debit card or credit card after depositing funds. Users can place buy and sell limit orders to trade cryptocurrency at desired price points. Compared to most exchanges, Luno has relatively low fees due to the use of a maker/taker fee schedule.

Luno enforces first-class security policies and adheres to strict internal security practices. Upon signing up, the Luno exchange automatically enables 2-Factor Authentication (2FA) for enhanced security.

Luno Wallet - Homepage Dashboard

Supported Countries

Luno is based in Europe and supports the following countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, and United Kingdom

Fees And Limits

Users are able to add up to 2 cards on their Luno account.

Deposits are free. With a debit card, you can deposit up to EUR 1,000 per transaction with a monthly card deposit limit of EUR 5,000. After you reach your limit you are still able to make deposits using other payment methods.

Depending on your verification level and country of residence, each trade will incur a taker fee of between 0.15% to 1.00%.

Withdrawals can be performed only using bank transfer and incur a fee the amount of which depends on the country you live in.

Pros

  • Trusted throughout Europe
  • Strict security
  • Free deposits

Cons

  • Withdrawal fees

How To Buy Bitcoin With Debit Card On Luno

Luno Wallet - Sign Up
  • Verify your identity.
Luno Wallet - Verify Your Identity
  • Select your payment method and enter your card details.
  • Choose how much bitcoin you would like to purchase. Place your order.
Luno Wallet - Buy Bitcoin
  • You have now purchased bitcoin on Luno.

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Wirex

Wirex App Logo

CEO:Pavel Matveev
Headquarters:London, United Kingdom
Founders:Dmitry Lazarichev, Pavel Matveev
Founded:2014
Website:www.wirexapp.com
Customer service:+1 (855) 500-0217

Wirex has been in operation since 2014 and is based in London, United Kingdom. Buying bitcoin is made easy with the Wirex app and digital platform. To buy bitcoin with your debit card on Wirex, register on their platform, and verify your identity. You will then get access to a cryptocurrency linked bank account.

To add funds to your Wirex Visa card, you just add money to your Wirex account. This can be done with credit card, debit card, bank transfer, depositing cryptocurrency among other methods.

Wirex App Dashboard And Debit Card

After that, you can use that same card to purchase bitcoin at any time. Wirex users earn 0.5% cashback in bitcoin for making purchases with their Wirex cryptocurrency debit card.

Supported Countries

Wirex is supported in over 202 countries (see full list).

Fees And Limits

Wirex fees begin with a £1 monthly account management fee, regardless of your account activity.

Wirex withdrawal fees for ATMs in Europe are £1.75 per transaction and £2.25 per transaction outside Europe.

ATM withdrawals are limited to £250/€250/$250 per day. Credit and debit card top-ups are limited to £7,500/€8,000/$10,000 per day. There is also a maximum card balance of £15k/€16k/$20k.

The maximum account balance is unlimited.

Pros

  • Low transaction fees
  • Easily transportable
  • Many ways to top up card

Cons

  • Monthly fee

How To Buy Bitcoin With Debit Card On Wirex

Wirex - Sign Up
  • Hit the ‘Exchange Currencies’ button
  • Choose ‘BTC’ or ‘Card’ as your source
  • Choose the currency you wish to sell on the exchange and set a target amount
  • Enter the amount you wish to spend from your card or BTC wallet and hit ‘Exchange’ and ‘Confirm Exchange’.
  • You have now purchased bitcoin with Wirex.

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Bitstamp

Bitstamp Logo

CEO:Nejc Kodrič
Headquarters:London, United Kingdom; Luxembourg
Founders:Nejc Kodrič, Damijan Merlak
Founded:2011
Website:www.bitstamp.net
Customer service:+1 (646) 568-9784

Bitstamp has been in operation since 2014 and is based in London, United Kingdom and Luxembourg. Asides having features that allow you to buy Bitcoin using your credit card, Bitstamp will enable you to buy Bitcoin through a bank transfer, SEPA transfer, etc. You are required to provide a means of identification when you want to buy Bitcoin with your debit card.

Bitstamp Dashboard - Debit Card or Credit Card Payment Method

Supported Countries

Bitstamp is supported worldwide.

Fees And Limits

Bitstamp charges an 8 percent fee on purchasing $500 or €500 worth of Bitcoin. A 7 percent fee is charged when you purchase $1000 or €1000 worth of Bitcoin, a 6 percent fee is charged when you buy $2500 or €2500 worth of Bitcoin, and you are charged a fee of about 5 percent when you purchase $5000 or €5000 worth of Bitcoin.

Pros

  • Supported worldwide
  • Multiple payment options
  • Great reputation

Cons

  • Not very user-friendly
  • Lengthy verification process

How To Buy Bitcoin With Debit Card On Bitstamp

Bitstamp - Sign Up
  • Verify your identity.
Bitstamp - Verify Identity
  • Go to ‘Deposit.’
  • Choose your payment option. In this case, choose ‘debit card.’
  • Then go ahead and deposit funds using your debit card.
  • After your deposit is authenticated, go to the ‘Buy/Sell’ option and choose ‘Buy BTC.’
  • Enter the amount you desire to purchase and then click on ‘Buy BTC.’
  • You have now successfully purchased bitcoin on Bitstamp.

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Robinhood

Robinhood Logo

CEO:Baiju Bhatt
Headquarters:Menlo Park, California
Founders:Baiju Bhatt, Vladimir Tenev
Founded:2013
Website:www.robinhood.com
Customer service:Knowledge Base

Robinhood has been in operation since 2013 and is based in Menlo Park, California. This digital currency exchange began as a fee-free stock brokerage and expanded recently into the world of cryptocurrency. The significant advantage of this platform is that it does not charge any fee for any purchase of cryptocurrency.

Robinhood began trading in Bitcoin and Ethereum, and also have the market data for about 15 other digital currencies. A Robinhood stock account is different from Robinhood Crypto.

Robinhood Dashboard - Mobile App And Desktop Portfolio

When you have purchased your Bitcoin, it is stored in the same Robinhood account you used in storing your stock, and you also share a login. The digital exchange began using a mobile app but have now added a web version.

Supported Countries

To own a Robinhood account, you will need to have a legal U.S. residential address within the 50 states or Puerto Rico. Exceptions may be made for active U.S. military personnel stationed abroad.

Fees And Limits

Robinhood is commission-free, now and forever. Robinhood doesn’t charge you fees to open your account, maintain your account, or transfer funds to your account.

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) do charge a small fee for stock sell orders. They charge these fees for all sell orders, regardless of the brokerage (read more).

How To Buy Bitcoin With Debit Card On Robinhood

Robinhood -Sign Up
  • Navigate to the cryptocurrency’s Detail page.
  • Enter the amount you’d like to purchase into the order window on the right side of the screen.
  • Click Review.
  • Confirm your order.
  • Check your investment portfolio to view your purchased bitcoin on Robinhood.

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Paxful

Paxful Logo
CEO:Ray Youssef
Headquarters:New York, New York
Founders:Ray Youssef, Artur Schaback
Founded:2015
Website:www.paxful.com
Customer service:Knowledge Base

Paxful has been in operation since 2015 and is based in New York, New York. The fast-growing Paxful exchange is a person-to-person marketplace that supports over 300 payment methods. Paxful users can buy and sell bitcoin with practically every payment method known to man including debit card, gift card, prepaid card, ApplePay, PayPal, Chime Bank, Simple Bank, and GreenDot.

The Paxful exchange uses an escrow system in conjunction with a Paxful Bitcoin Wallet to ensure the security of each trade. Paxful has excellent customer service and 2-Factor Authentication for those who want to secure their free bitcoin wallet.

Paxful - Homepage Marketplace Dashboard

There is also a Paxful Wallet app available on iOS and Android smartphones for those who want to send, receive or trade bitcoin on the go.

Supported Countries

Paxful is available in all countries except for the following: Burundi, Central African Republic Sanctions, Cuba, Crimea region, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, South Sudan-related Sanctions, Sudan and Darfur, Syria, Yemen

Fees And Limits

Paxful does not charge a fee to buyers. There is only a 1% fee for the seller from the amount of a sale. For gift cards, this becomes a 5% fee for iTunes and Google Play; and 2% for every other gift card. The fee for bank transfers is merely 0.1%.

Paxful has four verification tiers:

Level 1: Requires email and phone verification. The trading volume limit is up to $1,500.

Level 2: Requires ID verification. The trading volume limit is up to $10,000.

Level 3: Requires address verification. Trading volume can be $10,000 and higher.

Level 4: Requires additional verifications such as EDD (Enhanced Due Diligence) or CDD (Customer Due Diligence). May be requested for significantly high volume institutional/corporate accounts.

Pros

  • Escrow System
  • Security
  • Diverse Payment Methods
  • Global Support

Cons

  • Beware Of Scams

How To Buy Bitcoin With Debit Card On Paxful

Paxful - Create An Account
  • Verify your email address and phone number.
  • Go to the main menu and click on the ‘Buy Bitcoin’ button.
Paxful - Buy Bitcoin
  • Select ‘Debit/Credit Card’ as your payment method. Enter in how much bitcoin you would like to buy (in dollars). Click ‘Search For Offers’.
Paxful - Buy Bitcoin With Debit Card Or Credit Card
  • Here you can view all the open offers for your chosen method of payment and the merchant feedback score, limits and sale price. Click on ‘Buy’.
Paxful - Open Offers For ANY Credit Card Or Debit Card
  • This will take you to the vendor’s terms of trade screen where you can see all of their requirements before opening the trade.
Paxful - Buy Bitcoin With Debit Card Or Credit Card Terms Of Trade
  • From here you will be taken to the vendor’s trade screen where you can talk with the seller and upload any supporting documents to complete the trade. Once the payment has been sent, hit the ‘Paid’ button and wait for the seller to release the bitcoins.
Paxful - Buy Bitcoin With Debit Card Or Credit Card Vendor Trade Screen
  • Once the bitcoins have been released to your bitcoin wallet you have successfully completed the trade. Feel free to leave feedback for the other person.

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LocalBitcoins

LocalBitcoins

CEO:Nicholas Kangas
Headquarters:Helsinki, Finland
Founders:Nicholas Kangas, Jeremias Kangas
Founded:2012
Website:www.localbitcoins.com
Customer service:Knowledge Base

LocalBitcoins operates as a peer-to-peer network for users across the world. LocalBitcoins has been in operation since 2012 and is based in Helsinki, Finland.

This exchange does not hold any cryptocurrency of its own. Instead, it functions as an intermediary that facilitates transactions between those seeking to buy bitcoin and those looking to sell bitcoin.

Users of this network are not required to abide by any marketplace. This makes the site different from other digital currency exchanges. What it does also is that the trader determines the value of his/her cryptocurrency. LocalBitcoins help to serve as a mediator when disputes arise between a buyer and a seller.

The presence of escrow on the network gives it a higher level of security. The presence of the escrow on the network means that the money is held in a distinct place until both the seller and the buyer have verified the transaction. If the buyer does not meet the requirements for a purchase, then the money is returned.

LocalBitcoins Bringing Bitcoin Everywhere

The network quick search system allows you to spell out the amount worth of bitcoin you want to buy, the currency of your choice, your location, as well as your payment option. You are allowed to pay with a debit card.

Supported Countries

LocalBitcoins is available in every corner of the world.

Fees And Limits

Although LocalBitcoins does not charge a fee for the purchase or the sale of bitcoin, they do charge a 1.00 percent fee to advertisers when a trade is completed.

Pros

  • Available in every country of the world
  • Supports many payment methods
  • Private and simple

Cons

  • Beware of scams
  • Difficult to buy large amounts

How To Buy Bitcoin With Debit Card On LocalBitcoins

LocalBitcoins - Sign Up
  • Verify your account via an email confirmation link that is sent to you.
  • Go to the LocalBitcoins dashboard. Select ‘Credit Card’ as your payment method.
LocalBitcoins - Select Credit Card As Payment Method
  • Offers will populate based on your search query.
LocalBitcoins - Search Results For Buying Bitcoin With Credit Card
  • Select ‘Buy’. You will be given a set of instructions to follow to complete the transaction.
LocalBitcoins - Buy Bitcoins Using Credit Card
  • Upon completing the terms of the trade, the seller will release your bitcoin to your bitcoin wallet on LocalBitcoins.

Navigation

Exchanges With The Lowest Fees

CEX.IO and Coinbase seem to have the lowest fees for buying bitcoin with a debit card or credit card. Deposits with a debit card on Luno are free, while every trade incurs a taker fee. Profitable deals can also be found on Localbitcoins where the platform fee is only 1%

Exchanges With The Fastest Processing Time

Coinbase, CEX.IO, Changelly, Bitstamp, BitPanda, and Luno have the fastest transaction times, so you will receive your bitcoins instantly on these platforms.

Exchanges With The Best Security

CEX.IO, Coinbase, and Coinmama provide superior security on their platforms. Every exchange is a hot wallet, so no matter which exchange you use, we recommend that you move your bitcoin offline to a cold wallet.

Is It Safe To Purchase Bitcoin Using Debit Card?

Using your debit card to purchase bitcoin from a digital exchange is safe if those exchanges can guarantee the safety of your card and bitcoin. It is advisable, however, to move your bitcoin into a cold wallet for safekeeping.

Are You Allowed To Buy Less Than One Bitcoin?

You are allowed to buy less than one Bitcoin. There several digital currency exchanges that allow you to buy less than one Bitcoin. Coinbase, for instance, allows users to purchase as little as $2 worth of Bitcoin at a time.

How To Get The Best Price

The price of bitcoin and the fee charged by the digital exchange are two factors that affect the purchasing price. The price of bitcoin is impacted by the number of users, market capitalization, velocity, scarcity, and major news media.

Different exchanges may offer varying rates. You can use a platform such as Changelly to trade at the best market rate. Additionally, some exchanges will let you set limit orders that execute at a certain price point.

What If I Don’t Have ID?

If you don’t have a photo ID for identity verification you might have a difficult time purchasing bitcoin from an exchange due to AML and KYC laws.

Can I Purchase Bitcoin Anonymously?

You can purchase bitcoin anonymously on Changelly which requires no photo ID – just phone verification.

AML And KYC Laws

Anti Money Laundering (AML) and Know Your Customer (KYC) regulations are designed to protect against illegal and/or fraudulent activity. Thus identity verification is a requirement for every cryptocurrency exchange in the United States.

What Is A Bitcoin Wallet?

Rather than your standard leather wallet, a bitcoin wallet is made up of two unique and single coded keys called a public key and a private key

A bitcoin wallet address is a hashed version of your public key. The public key is known as the location wherein transactions are deposited. It is also the exact key that shows up on the Blockchain ledger as the user’s virtual signature. 

The bitcoin private key is a randomly generated string (numbers and letters), allowing bitcoins to be spent.

Why Buying Bitcoin With A Credit Card Can Be Risky

Purchasing bitcoin with a credit card has a number of risks associated with it including cancellation, chargeback, extra fees or getting your credit card closed down. Your transaction may get denied by the exchange or the bank that issued your card.

Factors To Consider Before Purchasing Bitcoin With A Credit Card

Before using your credit card to buy bitcoin, there are some things that you should first consider. They include:

Limits

Every exchange sets a limit for credit card purchases in a bid to restrict fraudulent activities. Every exchange sets a limit for credit card purchases in a bid to restrict fraudulent activities.

Transaction Fees

Whenever you purchase an item with a credit card, most retailers will include a credit card processing fee onto the price. Likewise, when you buy bitcoin with a credit card, you can expect a small transaction fee to be tacked on to your purchase. 

Foreign Transaction Fees

If you use an American credit card to purchase bitcoin on an exchange that is based outside the United States, your card issuer may charge a foreign transaction fee.

Cash Advance Fees

In the early parts of 2018, both MasterCard and VISA began grouping virtual currency purchases as cash advances. This does not only mean increased fees, but it also signifies that interests begin accruing at once.

Its Effect On Your Credit Scores

Before making a purchase, you should consider how much of your credit you will be making use of. Your credit utilization ratio, which is a percentage of credit usage, is a huge factor in calculating your credit score. 

Debt

We advise against purchasing bitcoin with a credit card unless you can pay it off in full that exact month.

If you are making use of credit cards to get rewards, that is fine. But if you are using your credit card because you cannot afford bitcoin, you might as well wait until you can afford it.

Alternatives To Debit Card Or Credit Card

If you prefer buying bitcoin with another payment method, have a look at alternatives like bank transfer or bank wire which usually has lower fees but may require more time to process.

Cash

You can also buy bitcoin with cash at an ATM which is instant but usually has high fees associated with it.

P2P Marketplace

Paxful and Localbitcoins are person-to-person marketplaces that make use of an escrow system for transactions. Users of these platforms have a plethora of payment methods to choose from including debit card or credit card, and even gift card.

The State Of Cryptocurrency

While commercial banks use a centralized system that is regulated and monitored by a central governing body, which is called the Central Bank, cryptocurrency operates on a decentralized system where no one has control of transactions on its platform.

Decentralization is achieved via a distributed ledger technology called Blockchain, which doubles as a financial transaction database. The foremost decentralized cryptocurrency issued is bitcoin, which was issued in 2009.

Statistics have revealed that since the release of the bitcoin in 2009, other digital currencies have found their way to the market, numbering over 2,000.

Can I Buy Bitcoin With Paypal?

Absolutely! The fees and risks associated with this payment method are higher than a credit card or debit card, but it is definitely possible. If you want to learn how then have a look at our in-depth guide to buying bitcoin with Paypal.

How To Choose The Best Bitcoin Exchange

Choose a digital currency exchange platform that meets your needs best in terms of accessibility, fees, limits, security, and processing time. In particular, look out for the following factors.

  • Supported currencies
  • Cryptocurrency and token options
  • Availability in the region you reside
  • How friendly their user interface is
  • Speed in which purchases process

Build a relationship with your favorite exchange and be sure to utilize a debit card or credit card issued by a bitcoin-friendly bank for best practices.

How To Keep Your Bitcoin Safe

On June 19th, 2011, the Mt. Gox bitcoin exchange was compromised after a hacker allegedly used credentials from an auditor’s computer to transfer approximately 850,000 bitcoins illegally to himself. This was the first instance of a bitcoin exchange being hacked and, as a result, bitcoin exchanges have had to introduce stricter security protocols to their systems.

On August 2nd, 2016, Bitfinex customers were compromised after their segregated wallets were breached, losing about 119,756 bitcoins in the process. This hack is the 2nd biggest breach of a bitcoin exchange platform ever.

Bitcoin exchanges store your bitcoin in what is called a hot wallet, meaning your bitcoin can still be accessed digitally by someone else. For this reason, we recommend that you store your bitcoin in an offline cold wallet, especially if you own a large amount of bitcoin.

There are numerous types of cold wallets – including paper and hardware wallets – with many more being created now and in the future. The most popular companies currently manufacturing hardware wallets today are Trezor and KeepKey. With these types of cold wallets only you have access to your private key and seed phrase.

What Is Bitcoin?

Bitcoin is a peer-to-peer cryptographically secure digital currency introduced by Satoshi Nakamoto in 2009 right after the 2007 banking crisis and the 2008 subprime mortgage financial crisis. As a product of the blockchain, bitcoin has introduced many innovations to the financial market. The blockchain ensures that transactions are carried out in a secure, transparent, and straightforward manner.

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