Bitcoin is an online currency that you can use to buy and sell goods and services. It is a cryptocurrency with no physical coins or paper money. Bitcoin was produced in 2009 by Satoshi Nakamoto, an anonymous programmer. Bitcoin has become popular because banks or governments like regular currencies do not regulate it, so the value of one bitcoin varies depending on how much people are willing to pay for it — making it more volatile than other currencies. You can buy bitcoins instantly with your credit card through some sites (although they usually charge higher fees) and then trade them on many exchanges to make a profit when their price changes. In this blog post, I’ll show you where to get started buying
Some of the best ways to buy bitcoin on a credit card are Coinbase, BitStamp Coinmama, Kraken LocalBitcoins (only private) Cex.io (only personal). This article will focus on purchasing bitcoin using Coinbase since it’s one of the easiest and safest ways to get into bitcoins. After your initial verification via email, you’ll be able to buy bitcoin instantly using your credit card or sending a bank transfer.
Coinbase is one of the safest options for buying bitcoins online in the United States because all customers’ data are encrypted with AES-256-CBC and backed up with offsite servers.
You can pay by bank wire, SEPA transfer, Interac Online, iDEAL, SOFORT, GIROPAY/EPS, Giropay/Netteler, TrustPay, CashU, Western Union, MINT, MyBank (SEPA) Buy Bitcoins using Paypal account (instant) – Paxful Paxful is an international Bitcoin exchange where you can purchase.
- What is Bitcoin
- How to buy Bitcoin on a credit card
- Why should I buy Bitcoin on a credit card
- Benefits of buying bitcoin with a credit card
- Disadvantages of buying bitcoin with a credit card
- FAQs about buying bitcoin with a credit card
Let’s know bitcoin a bit first
What is Bitcoin?
Bitcoin is a cryptocurrency, a type of electronic money that you can buy and sell things online. It’s created from computer software using a complicated system of digital encryption. The idea was first given in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the concept of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority.
The value of bitcoins has gone through various cycles of appreciation over time, depending on media hype and perceived value. You can’t hold bitcoins as you do with traditional currency — it only exists electronically — but many companies accept it as a form of payment. One of the biggest reasons for its rise in value is that it’s an easy way to move money across international borders. There are very few fees associated with Bitcoin transactions.
How to buy Bitcoin on a Credit card?
You can purchase a Bitcoin with a credit card instantly, without registration or verification.
To buy Bitcoin using your credit card, you need to open the Coinbase website and click “Sign up” (if you aren’t an existing customer) or go to the log-in page (“Sign in”). Fill out all of the signup forms, including preferred username, email address, and password. After successfully creating an account for Coinbase, log into that account, click the “Buy/Sell Bitcoins” button, and choose the preferred payment method by clicking the corresponding radio button (Credit Card / Bank Account). Put the number of bitcoins you want to purchase and select a particular payment method (credit card or bank account). Then go through the formalities for buying bitcoins using a credit card (insurance, etc.) and wait until the exchange is completed.
If you use your bank account or SEPA transfer to buy BTC via Coinbase, it may take up to five days for the transaction to complete. For faster purchase of bitcoins on Coinbase, we recommend choosing their credit card payment method if this option is available in your country.
Why should I buy Bitcoin on credit card?
It’s safe to buy bitcoin through a credit card on Coinbase because the website uses modern security protocols and protects all customers’ data with SSL encryption.
Benefits of buying bitcoin with a credit card
There are many reasons why you should consider buying bitcoins with your credit cards:
Buy bitcoin on a credit card
- Access to instant purchasing without registration or verification (for most countries).
- Possibility to buy any sum (from $1) at once;
- Instant access to bitcoins after purchase;
- Legal status of cryptocurrencies is not defined yet in many jurisdictions. Still, Coinbase guarantees that they will be operational until at least till 1st of July 2018 (this may change depending on future regulations of cryptocurrencies).
- Coinbase is one of the biggest and most reputable online exchanges;
- High limits on buying bitcoins with credit cards (up to $1,000 daily and $5,000 monthly for most countries).
Disadvantages of purchasing bitcoin on credit card:
- High commissions (for example, 3.99% at Coinbase);
- low speed of transactions due to new regulations and security issues;
- long transaction time (from several hours up to several days depending on chosen payment method);
- The possibility that your buy bitcoins order will not be fulfilled if the seller does not want to sell it at the current price.
FAQs about buying bitcoin on credit card:
How can I trust Coinbase?
Coinbase is an American company which is known for its strict verification process. Following their policy, they disclose information about their employees and team members to the public. Coinbase also keeps 99% of customers’ cryptocurrency funds in cold storage (offline). Their servers use a type of 2-factor authentication with security access tokens to further protect customer accounts, and an SMS two-factor authentication system protects all sensitive transactions.
Is it possible to buy bitcoins on a credit card without an ID?
If you do not have a photo ID or passport, Coinbase will require additional proof of residencies such as bills with your name on them or bank statements from the past three months. If you have neither of them, Coinbase will allow you to still buy bitcoins on the credit card but with a limit of $150 per week.
How long does it take to get bitcoin after buying?
Bitcoin transaction time mainly depends on chosen purchase method: bank transfer usually takes several days; credit card purchases – one business day. If you opt for an instant purchase, there is a chance that your order will not be fulfilled if the seller has not found any buyers willing to pay for this particular bitcoin amount at the current price. Buying bitcoins on credit cards is always a quick process as far as your payment methods are concerned; some banks may require additional verification and delivery time (1-7 business days).
How many confirmations do I need for my Bitcoin transaction to be considered complete?
At least six confirmations are required. Coinbase allows instant buying bitcoins with credit cards, which means that your Bitcoin purchase is confirmed after one network confirmation of the respective blockchain.
How much money do I have to pay for my Bitcoin order?
The current price at Coinbase is multiplied by 1.49%, so if you buy $100 worth of bitcoin on a credit card, the total transaction cost will be $101.49. You’ll have to pay your purchase in US dollars or Euros according to their exchange rate for cryptocurrencies at the moment of the order placement.
In which countries can I buy bitcoins with a credit card?
Currently, Coinbase supports purchases and sales of BTC in 32 countries: Australia, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Finland, Croatia, France, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia . Slovenia, Spain . Sweden, Switzerland . The United Kingdom and Vatican City. In some countries, there is a hurdle on the number of bitcoins you can buy per day with a credit card (in the USA – up to $1 000).
If you want easy and quick access to bitcoin by using a debit or credit card. Coinbase offers a great way to do so with various payment options. There are limited purchases per week through PayPal, but most purchases can be made through credit cards. To sum up, buying bitcoins on Coinbase is one of the safest ways to purchase this cryptocurrency. Coinbase has high limits on daily/monthly sums that can be bought for verified customers (up to USD 1,000 daily and $5,000 monthly). Also, they commit to support cryptocurrencies until at least the 1st of July 2018, even under new regulations. Still some disadvantages, including long waiting time for transaction completion, the possibility of your order not being fulfilled by the seller if he doesn’t want to sell it at the current price, or high commissions for buying bitcoins with credit cards.
In a nutshell,
Bitcoin is a cryptocurrency, which means any government or bank does not control it. It can be used to purchase goods and services anonymously with no mediator between the seller and buyer. The purchase of bitcoin on a credit card has become more popular; because people don’t need to pay in cash at an ATM for their investment. However, they still get the anonymity of using bitcoin when buying from websites that accept this payment method. The main advantages are convenience and privacy while shopping online if you use your debit card instead of bitcoins. Disadvantages include incurring high-interest rates on your purchases as well as potential losses due to fluctuations in price over time.