24.11.2021 Crypto Basics

Can I Buy Bitcoin With a Credit Card?

Today cryptocurrencies, led by bitcoin, have become one of the most recognizable and coveted assets among ordinary users and investors globally. Almost 200 million users trade cryptocurrencies, and this number is set to double every year. Newcomers can buy bitcoin or alternative coins with a credit card and other payment methods through multiple channels.

How to buy crypto with a credit card

Each of the digital currency holders makes their first purchase in exchange for fiat currency, usually USD. The most common way to buy bitcoin is with a credit card. Cardholders have a wide range of options to choose from: they can purchase digital assets from crypto digital wallets, private individuals, an ATM, physical exchanges and online crypto exchanges. Each of the presented methods has disadvantages and advantages, and the range of cryptocurrencies itself can vary significantly. Let’s look closer at them.

Where to buy bitcoin with a credit card

Cryptocurrency from a private person 

You can conduct a transaction directly with another user using a designated website. It is similar to a bulletin board, where some users post ads and others contact them and discuss the terms and conditions of buying crypto. The main advantage of such transactions is the absence of high fees in favor of online services.

There is also a rating system, and you can leave a review about the seller or buyer. This reduces the risk of fraud in part. However, in general, peer-to-peer trading sites remain the least secure solution.

Buying bitcoin through crypto exchanges

Currently, one of the most popular crypto exchanges in the world is Coinbase, Binance, and crypto.com. Most exchanges have several significant advantages: 

  • compliance with high standards and legal requirements; 
  • buying bitcoin with prepaid Mastercard or VISA;
  • accessing to a wide range of cryptocurrencies;
  • buying bitcoin with a prepaid debit card.

At the same time, the exchanges aim at experienced players who make money on short-term cryptocurrency fluctuations. The average user may be intimidated by the need to learn new concepts and complex tools. Moreover, the verification process of the user’s account will not allow him to make the purchase instantly.

Another option to buy bitcoin and other alternative coins such as Etheurem would be through a physical exchange. This exchange is similar to the one we see at airports where people trade fiat currencies. Instead, people can exchange exchange fiat curccienc for bitcoin at the best available market rate plus commission. Physical exchanges are slowly becoming more prevalent in many countries such as Turkey and the United States.

Buy cryptocurrency in a wallet

A crypto wallet is not only a tool to store bitcoin and other cryptocurrencies, but it is also a tool to buy them instantly. Usually, a third-party payment provider is involved in these operations. The wallet has minimum and maximum limits for the transactions, and the commission depends on the wallet and payment provider. 

Since all cryptocurrencies are only information objects without material form, they can be stored in the same virtual wallets. A cryptocurrency wallet is a program that is installed on a specific device or hosted on the Internet. 

A wallet is required for owning digital money and any transactions with it. Digital currencies do not leave their internal network, even when exchanged for ordinary money but can transfer from one wallet to another.

A crypto wallet is not only a tool to store bitcoin and other cryptocurrencies, but it is also a tool to buy them instantly. Usually, a third-party payment provider is involved in these operations. The wallet has minimum and maximum limits for the transactions, and the commission depends on the wallet and payment provider. 

Since all cryptocurrencies are only information objects without material form, they can be stored in the same virtual wallets. A cryptocurrency wallet is a program that is installed on a specific device or hosted on the Internet. 

A wallet is required for owning digital money and any transactions with it. Digital currencies do not leave their internal network, even when exchanged for ordinary money but can transfer from one wallet to another.

Buy bitcoin via ATM

This method is simple because everyone has to withdraw money from debit cards in cash ATMs in everyday life. You need to load any amount that meets the minimum and maximum limits set for this crypto ATM. The ATM will print a receipt with the details and confirm the transaction.

The disadvantage is the weak penetration of cryptocurrency ATMs, which are not available in all the cities. It is getting easier to buy bitcoins in the USA with credit cards due to the proliferation of crypto ATMs. 

Cryptocurrency prospects

In the latter case, the limited supply of most cryptocurrencies plays an important role. For example, the amount of circulating bitcoins technically cannot exceed 21,000,000 coins. Keeping the volume of coins at the same level, combined with capital injections, ensures a stable growth in the BTC rate. 

Moreover, today we can see significant adoption of crypto technology in many countries. Global companies start to accept popular crypto like bitcoin and ethereum as a payment currency and invest in digital coins themselves. Therefore, cryptocurrencies will have high prospects both as a means of settlement and as an investment asset.

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