The Ultimate Guide To Buying Bitcoin With A Debit Card
The introduction of cryptocurrency has changed a lot about the financial market. Transactions are now carried out in a secure, convenient, and straightforward manner.
Bitcoin is a product of cryptocurrency, and innovation has made it possible for those who intend to buy this coin to do that on several platforms. This article plans to explain in detail all about cryptocurrency, Bitcoin, and how you can purchase them using your debit card.
What Is The Crypto World Like?
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 any control of transactions going on on its platform.
Decentralization is achieved via a distributed ledger technology which is called Blockchain, which doubles as a financial transaction database. The foremost decentralized cryptocurrency issued was Bitcoin, which was issued in 2009. In that same year, Bitcoin was released as open-source software.
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. Examples of some of them include Litecoin, Ethereum, etc.
Should You Buy Bitcoin With A Debit Card?
The popular means of purchasing bitcoins can be from the bank, using debit or credit cards. The rules and processing time differs depending on the method of payment you choose. There was a period, however, when purchasing bitcoins using a debit card was difficult, but things have changed now.
There are a lot of companies who now accept debit cards for the purchase of bitcoins. The processes involved in the purchase are now quick and convenient. For you to be able to buy bitcoin, however, you will need a wallet to store the bitcoins. There are digital currency exchanges that allow the use of debit cards to facilitate the purchase of bitcoins.
Buying Bitcoin on digital exchanges used to be very difficult; however, with the advancement of technology, most cryptocurrency platforms have created innovations that make the purchase of cryptocurrency simpler.
Bitcoin can be purchased from the comfort of your room. This singular act of allowing Bitcoin purchases with debit cards has attracted many people to the idea of trading in cryptocurrency.
What Are The Benefits Of Buying Bitcoin With Debit Card?
Buying Bitcoin using your debit card gives you a faster and more convenient way to buy bitcoin. Digital exchanges will delay up to 3-8 days for you to get the Bitcoin you purchased when purchasing with a bank account — therefore making it difficult for you to move it off your exchange.
Some people are still, however, concerned about the security of their card information. A lot of digital exchanges have beefed up their security protocols, and are coming up with new ways to guarantee a fraud-free experience on their sites.
What Are The Disadvantages?
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 for purchasing Bitcoin with your bank. On the other hand, they charge you a fee of 3.99 percent were you to buy Bitcoin using your debit card.
The other disadvantage is that buying Bitcoin with a debt attracts a purchasing limit. Owing to the risks which digital currency exchanges face, they offer a purchasing limit. Purchasing limits increase when any of the following occurs: when a bank account is linked, when you provide identity verification, when you link a phone number to your account in the site, and finally when a purchase history is established.
Some of the digital currency exchanges that permit the purchase of bitcoin via debit card are as follows:
This bitcoin exchange is one of the most reputable in the world. Coinbase guarantees ease and convenience in getting bitcoin via your debit card. They have four coins listed on their site. Coinbase has a 2-Factor authentication system. There are present in over 33 countries around the world.
The first step is to create an account. Link the payment option you would like to use. Then you can begin the purchase of bitcoin. To purchase Bitcoin on Coinbase using your debit card, you will be required to provide a means of identification and other information they may request. The verification process is fast and straightforward.
Compared to other digital exchanges, the fee charged on purchasing Bitcoin using the debit card stands at 3.99 percent. Compared to other exchanges, Coinbase has a low buying limit.
You will be permitted to purchase different digital currencies from the platform daily, depending on your account verification level. At the highest tier of verification, $50,000 is the purchase limit.
There is no deposit fee charged by Coinbase to move currency onto its platform. Instead, the transaction fee comes in when you are about to purchase the Bitcoin.
Coinbase Pro is another subsidiary of Coinbase. Coinbase Pro gives users access to a more refined coin exchange system for those individuals who are comfortable with trading cryptocurrency. They are available in 27 countries around the world.
Steps involved in buying Bitcoin using your debit card on this platform include:
- Create an account and then confirm your email.
- Enter your phone number, and then Coinbase will send you a code. You will then be requested to type in that code.
- Verify your identity and then link the account.
- Choose your preferred payment option, which is a debit card.
- Then make your purchase.
Coinmama has a fantastic user interface and is an excellent digital exchange to buy Bitcoin. Different packages are offered on Coinmama. You are allowed to specify the amount of Bitcoin you want to purchase if that amount is not available in the packages they have on offer.
Coinmama also does not provide you with a digital wallet to store your purchased Bitcoin. If you also want to send the Bitcoin you bought, the exchange will ask for a wallet address.
Coinmama, based in Israel, is also present in the United States, and several countries around the world. The platform has an excellent customer service program.
This digital currency exchange charges 5 percent for credit card and debit card purchases. Coinmama also has a higher purchasing limit 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. They also have a minimum of $60 purchasing limit.
Buying Bitcoin on this platform involves the following steps:
- Create an account on the platform.
- You will then be requested to fill in some information to verify your identity. Your photo will be requested as well as a means of identification.
- Click on the payment option, which is using a debit card.
- Various packages will be displayed. Choose your preferred plan or enter your desired amount.
- Enter your wallet address and your card info.
- Make payment
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.
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.
LocalBitcoins, though a coin exchange, is now operating more like a peer-to-peer network of users across the world. LocalBitcoins is present in many countries around the globe.
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.
Asides from protecting against fraud, this feature also shields the buyer against double-paying.
LocalBitcoins is available in over 248 countries around the world. The network provides a wide range of features alongside its security features. They have one of the simplest means of registration.
- Create an account.
- Choose your username and password.
- Verify your account via an email confirmation link that is sent to you.
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. To buy it is simple.
All you have got to do is to contact a seller, and if they accept your offer, you will then be set a set of instructions to follow to complete the transaction.
The coins will be released to you on the seller, confirming that the specified amount has been paid. Although LocalBitcoins does not charge a fee on purchase or the sale of Bitcoin, they, however, charge for a 1.00 percent fee to the advertiser and when a trade is completed.
This cryptocurrency company is based in France and offers cryptocurrency, including Bitcoin. Bitit provides one of the best platforms to buy cryptocurrency. Also, they provide one of the most convenient platforms to those that are new to the cryptocurrency world.
You can buy Bitcoin from this platform using your debit card. The site supports the use of Visa, American Express, Maestro, and MasterCard. The steps involved in purchasing Bitcoin using your debit card from this platform include:
- Create an account.
- Fill in the required information.
- Once your details are verified, you can start buying Bitcoin.
- You are allowed to purchase €1500 worth of Bitcoin using your debit card, and you are also entitled to buy up to €2500 worth of Bitcoin weekly.
In addition to having a wider reach and speed compared to other exchanges, they have a high transaction fee of about 6.9 percent. This excludes any additional fee that the debit card company will charge.
This digital currency exchange is distinct from other exchanges due to the presence of different methods of payment on its platform. Their rates and fees are highly competitive, and they only sell cryptocurrency to those in Europe.
The BitPanda platform is straightforward and easy to use for beginners, and they can buy cryptocurrency without any hitch. However, many people who prioritize privacy will have an issue with this platform because they always require an ID upon registration.
This exchange charges a 2.99 percent fee on every cryptocurrency purchase and a 1.29 percent fee on every sale. Depending on the payment method you opt for, external payment providers will charge between 1.5-3.6 percent fee. The total amount of cryptocurrency you are allowed to buy is dependent on your verification level.
To buy Bitcoin on this exchange, follow these steps:
- Create an account on BitPanda.
- Link a payment method after you must have filled in the required information.
- Select the cryptocurrency you want to purchase, in this case, Bitcoin.
- Select Buy. Then select Bitcoin again.
- Key in your preferred method of payment, in this case, a debit card.
- Select the amount you want to buy.
- Accept their purchase conditions by clicking on Summary.
- Finally, click on Buy now.
CEX.io is another good alternative for you to buy Bitcoin with your debit card. They have been in operation since 2013 and based in London, United Kingdom. CEX.io has about eight coins listed on its platform.
This exchange offers you a high level of security. There also offer a good liquidity policy, as well as cross-platform trading through their website, mobile app, etc.
They have over 2 million users according to their website, and they offer a margin trading for individuals who want to and near 100 percent uptime. There are present in about 99 percent of countries around the globe and are also present in 24 states in the United States.
This digital currency exchange allows you to purchase Bitcoin using different currencies. These currencies include Dollars, Rubies, Euros, and Pounds Sterling.
CEX.io charges a fee of about 3.9 percent on any deposit via your debit card. There is a 2.9 percent fee when you sell your Bitcoin using your debit card.
Residents of Nigeria, Qatar, Oman, Yemen, Iraq, Saudi Arabia, and some countries in Europe are subjected to a lengthy application process. Purchase Bitcoin on CEX.io using your debit card with these steps:
- Create an account.
- Deposit funds. They accept both Visa and MasterCard. The platform will then take a 3.5 percent deposit fee.
- Enter an order on the buy and sell tab.
- You will then be shown limit and market order. Then fill in the order.
- Your purchase of Bitcoin will be successful after the order is placed.
There is a limit to how much worth of Bitcoin you can buy on CEX.io. The daily purchasing limit is $1000. The weekly purchasing limit is $3000. These limits are, however, for basic members.
Users of the platform who have a verified account have the opportunity to purchase as many as they can afford. They also have privileges of incentivizing users to obtain the validity of their accounts.
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 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.
To buy Bitcoin on the Bitstamp digital currency exchange, follow the following steps:
- Register on Bitstamp.
- 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.’
Wirex is a digital currency exchange available in the United Kingdom and some other countries. Buying Bitcoin on this digital platform is now made easy. To buy Bitcoin with your debit card on Wirex, register on their platform, and complete your KYC. You will then get access to a cryptocurrency linked bank account.
After that, you can now top-up your debit card and then use that same card to purchase Bitcoin at any time.
Is It Safe To Purchase Bitcoin Using Debit Card?
Using your debit card to purchase Bitcoin from digital exchanges is safe if those exchanges can guarantee the safety of your card. It is advisable, however, to move the Bitcoin once it is purchased into a wallet.
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 the Bitcoin and the fee charged by the digital exchange are the two factors that affect the price. There are, however, few differences between the price of Bitcoin sold by different exchanges. So ensure you be on the lookout for such differences.
To Wrap It Up
You must choose a digital currency exchange platform that meets your needs. Several other currency exchange platforms allow you to buy bitcoin using your debit card asides these.
Cryptocurrency is the new trend, and it is going to be the ground on which future transactions will be carried out.