Even if Bitcoin doesn’t have the same speed and functionality as some of its newer rivals, it dominates cryptocurrency by brand recognition and has the first-mover advantage, emerging as a store of value owing to its durability and scarcity. BTC is an excellent long-term investment, so acquire a few crypto coins and hold onto them for at least one year. Bitcoin can’t be purchased through a bank or an investment company (not yet, at least), so you’ll have to use a cryptocurrency exchange where you can exchange US dollars (or other currency) for digital assets.
Most exchanges allow you to purchase Bitcoin in just a few clicks using various payment methods, including bank transfer, debit/credit card, and PayPal, to name a few. People love the convenience of debit cards, so it doesn’t come as a surprise they’re the most popular payment type. Buying BTC using a Visa or Mastercard card has never been easier as a result of the introduction of anti-fraud systems, but pay attention to the fact that cryptocurrency exchanges charge a small fee for debit card transactions. Processing the payment takes anywhere between 24 and 48 hours.
You Can Buy Bitcoin on An Exchange If Your Debit Card Is 3D Secure
If credit seems the most obvious choice, you’d better think again. There’s the risk that the credit card company will block the Bitcoin purchase before the transaction is even initiated due to limited mainstream acceptance. Even if the credit card issuer agrees with the purchase, the cryptocurrency will be treated as a cash advance, and you’ll be charged a fee, typically 3% or 5% of the overall amount you request. Each exchange has stipulations regarding credit card use, so see if you can buy Bitcoin with debit card and what types of credit cards may be accepted. For example, some exchanges only take Visa and Mastercard cards.
3D Secure is required for all debit card orders, so you can acquire BTC instantly without having to wait for the bank transfer to complete. For your information, 3D Secure is a security protocol that prevents fraud in online transactions; in case of a loss or theft, your card can’t be used by a third party for online shopping. Indeed, the protocol is far from perfect, but having 3D Secure enabled is better than having absolutely no protection in place. It’s (very) likely that your bank enrolled your card in 3D Secure when it was issued. Still, if you have doubts, reach out to your debit card provider or try to add the card to your account on the exchange.
Here’s The Typical Flow for Buying Bitcoin With A Debit Card on An Exchange
As you’re now considering buying Bitcoin, these are the steps you’ll need to accomplish to start investing in cryptocurrency:
- Choose a suitable crypto exchange. Find a reliable and trustworthy exchange that mediates the exchange of fiat money for cryptocurrencies or other digital assets. Factors to consider before deciding on an exchange are jurisdiction, ease of use, liquidity, storage, reputation, and trading fees. You can have insurance protection through the crypto exchange you’re using.
- Open an account. Exchanges have different requirements for collecting information, but you can expect to provide your name, contact information, and social security number. It’s necessary to ensure the platform isn’t used for illegal activities, like money laundering, but the exchange must strike a balance between user experience and protecting profits.
- Link your debit card. You can buy Bitcoin or any other digital asset by linking your debit card to your account. To add your credit card to your profile, log into your account and go to “Add payment method.” Next, select a debit card and enter your card number, expiration date, and the CVV/CVC code.
- Get a crypto wallet. This step is optional. An exchange acts as a digital bank, meaning you can store your BTC and access certain financial services, such as loans. You can keep your digital coins at the exchange, but you have limited control over your assets. The private key belongs to the exchange. A non-custodial wallet allows you to retain full ownership of your assets, which comes with challenges.
- Buy Bitcoin. Make your first BTC purchase. Nearly every cryptocurrency exchange offers market and limit orders, not to mention stop-loss orders. Equally, you can place a stop-limit order that allows you to set a minimum price at which you’re willing to sell. Once you get the hang of buying Bitcoin, you can explore other options.
What Can You Do with Your Bitcoin?
If you have a crypto wallet, you can hold Bitcoin for long periods, hoping that its value will increase because the supply is fixed. After all, you’re not skilled enough to profit from short-term trades amid the volatile cryptocurrency market. You can use a crypto exchange to turn your BTC into cash. All you have to do is to decide the amount you’d like to sell, agree to the rates, and the money will be available to you (to spend on whatever you want). Binance runs a renowned peer-to-peer platform. Not only can you buy Bitcoin P2P, but you can also conduct asset trading without a hassle.
At present, you pay for goods and services using Bitcoin across several merchant outlets. For example, you can buy a gift card for a friend or relative – it’s a better option than getting them something they don’t want or need. You can purchase gift cards for countless brands, including but not limited to Amazon, Nike, and Xbox. In case you didn’t already know, you can use cryptocurrency to pay bills online. AT&T, for instance, accepts direct payments, so start paying your phone and cable bills right now.
All things considered, it’s not at all hard to understand why debit cards are the most popular payment method for buying Bitcoin from an exchange. The transaction can be finalized in just a few moments with little delay. You can acquire crypto coins on your PC or mobile phone without having to worry that you’ll go into debt from the purchase.