Let’s face it! Bitcoin is becoming more popular every day. So individuals are looking for a fast way to acquire it and profit from the price changing. In the following guide, I will show you how to buy bitcoin with your credit card, PROs, and CONs and how to find the best exchange rate.
A few years ago, it used to be impossible to buy Bitcoin with a credit card or a debit card. The main issue of that was the possibility of a chargeback. Fraudsters purchased Bitcoin with stolen credit cards from exchange companies.
When the credit card owner disputed the transaction and then asked the banks for a chargeback, the banks wanted to get the funds back from the exchange company.
As Bitcoin and all other cryptocurrencies are non-refundable, the fraudsters kept the bitcoin, and the exchangers had to return the funds and get the loss. But now, with advances in technology and companies redefining their platforms, it is becoming much easier, so exchangers are more confident in accepting credit card payments for Bitcoin.
Now that the history lesson is over, let’s talk about getting some bitcoin.
Purchase Bitcoin with a Credit Card PROs and CONs
Before anything else, let’s take a little bit bout the advantages and disadvantages.
Here are the main PROs and CONs of purchasing Bitcoin and other cryptocurrencies with a credit card.
Check them carefully to have a complete understanding before proceeding:
Purchase Bitcoin with a CC PROs
- You can get bitcoin very fast, literally in minutes, while a bank transfer could take 4-5 days.
- It’s a straightforward process as most cryptocurrency exchangers are beginner-friendly.
- Being fast, you can protect yourself from cryptocurrency volatility as the funds will not be locked.
- You can take a loan or a cash advance on your credit card and invest it directly into crypto.
Purchase Bitcoin with a CC CONs
- The fees associated are quite high, sometimes around 5-8%.
- Most credit cards have low purchasing limits.
- Some banks ban or make the purchase of cryptocurrencies difficult.
- You can’t trade anonymously as adding funds by CC requires Id verification.
Now that you have a clear picture of the PROs and CONs of purchasing bitcoin with your credit card, you can decide for yourself if you want to do it or not. Personally, I did it many times, especially when I know that a cryptocurrency price will rise soon, and I want to benefit from that.
How to purchase bitcoin with Credit Card?
You can purchase Bitcoin with your credit or debit card on many different cryptocurrency exchanges. Still, the process can be somewhat difficult for the newbies due to the exchanges’ interface, their commission structure, or their financial infrastructure. In addition, most of them require extensive document verification. Also, some exchanges lack a lot of cryptocurrencies and rare crypto-tokens.
At the moment, many exchangers offer you cryptocurrencies if you pay with your credit card.
After you check their fees and conditions, you should signup for an account, pass the KYC verification and add money with your credit card. But what if I tell you there is a way to check how to find the best rate you can get for purchasing bitcoin or other cryptocurrencies with your credit card?
How to find the best rate?
The solution for finding fast the best rate for your cryptocurrency exchange is exchanger monitor services, such as BestChange.com.
In short, BestChange.com is a directory of selected, trusted, and reliable cryptocurrency exchangers. You can find out where you can buy/sell/exchange dozens of popular cryptocurrencies and e-currencies or purchase those with debit or credit cards or various payment systems on their website.
How to use BestChange.com to exchange crypto/fiat/e-currencies
- On the panel on the left, select the currency that you have and the currency you want to buy/exchange to;
- The center of the page will show a list of reliable and trusted exchangers that work with this exchange direction. By default, the exchangers with the best rates are at the top of the list;
- You can use the Calculator feature to check the exact amounts you will get after the conversion;
- Choose an exchanger that suits you, click on it to go to its website, and follow the instructions to make an exchange.
You can easily find the best exchanger to purchase Bitcoin with your credit card by selecting Credit Card on Source and Bitcoin on the destination in their table of cryptocurrencies.
As you could see in the picture above, there are some huge differences in the prices you have to pay for a Bitcoin on these exchanges. Check the reserve, the min amount, and select the best exchanger for you. Don’t forget to read the reviews of the chosen exchange to make sure it is reliable.
Can you buy and sell Bitcoin instantly?
Is it risky giving up my ID to buy?
Can I buy bitcoin with a credit card anonymously?
What are the benefits and advantages of buying bitcoin with a credit card?
How do I determine the best way to buy?
Currently, if you want to buy Bitcoin with credit cards, keep in mind that the market rate is around 5% for each transaction. It may look like a high transaction fee for regular currency transactions, but you’ve seen the benefits.
This option is also easier to justify given the high-security risks exchanges face, as I’ve presented at the beginning of this article.
Now you know how to purchase Bitcoin with your credit card. Have questions, or you need help? Let me know in the comments form below.
This article provides information for educational purposes. Daily Money Saving does not offer advisory or brokerage services nor recommend specific investments, including stocks, securities, or cryptocurrencies.