Buying bitcoin with a credit card has never been easier than it is today, with widespread acceptance increasing daily. Buying bitcoins with a credit card is generally the quickest and also the most expensive way to acquire bitcoins. You will need to validate your identity before buying with a credit card.
The quickest, easiest, and most obvious way to get bitcoins is through Coinbase, one of the world’s largest exchanges. The advantage of buying and keeping your bitcoins on Coinbase is that the coins are almost completely safe. Coinbase supports instant buying and selling for bitcoin and Litecoin.
Coinbase is possibly the most secure exchange in the world. It is under scrutiny by the US and all dollar deposits are FDIC insured, with third-party insurance for all cryptocurrencies.
Buying bitcoins with a credit card on Coinbase is a low-fee system, as buying with credit cards goes; the standard fee is 3.99%. The bitcoins are delivered instantaneously, but you need to register with Coinbase and submit identification documents.
In early 2018, multiple Coinbase users reported a credit card glitch, with one customer being hit for up to $67,000 with a repeat of the same transaction over and over. Coinbase tweeted that the issue was with Visa, and banks and card companies have been trying to crack down on cryptocurrency purchases for some time.
This is partially because people had been buying cryptos using their credit cards and then selling the cryptos to pay off their credit card debt.
Coinbase is rectifying the issue and returning user funds, but this could be quite difficult for those suffering from a liquidity problem with bills to pay.
If you already have a bitcoin wallet and need to get your bitcoins fast with a credit card, then Changelly is the way to go. They have a neat interface that is really easy to use, not to mention quick.
You simply select your cryptocurrency and select your payment method on the page. Select the amount of bitcoin that you want along with your wallet address. Then you select your payment method and key in your payment details.
If you are using this service for the first time, you will need to input your personal details for verification. You will also input your phone number and answer a call, or else upload a picture while holding your bank card.
Once verified, your bitcoins are on their way. Changelly charges a whopping 5% along with a 5% fee for their processing partner Simplex. And some additional fees may be charged. Such incredible fees are way too much for any type of sensible investor, despite cryptocurrency predictions, and there are far cheaper methods of acquiring bitcoins.
But at least Changelly are transparent about their fees. It is the easiest and most user-friendly way to enter the cryptocurrency market, but at a massive premium.
Local Bitcoins is a huge online bitcoin market place connecting buyers and sellers. It has been around a long time and has many advantages.
Each seller on the platform has a reputation comprised of feedback. So, a 5-year trader with millions of dollars of successful trades is unlikely to rip off a client for $1,000 and damage his reputation. You select a seller to suit your preferences. You can filter sellers by acceptable payment methods (credit cards) and also by price, feedback etc.
It was one of the first bitcoin marketplaces and registration is quick and easy. Initially there were many reports of scams but as time has gone by, this has turned out to be a safe, quick, easy, and secure bitcoin exchange. Just make sure to get a reputable seller and you are good to go.
Local Bitcoins have a very good process that protects buyers and sellers equally. The sellers have to have their bitcoins in the Local Bitcoins wallet.
When a trade is initiated the bitcoins are automatically sent into escrow. The buyer then releases payment and clicks the “I have paid” button. When the seller receives the payment he or she then releases the bitcoins from escrow into the buyer’s wallet.
Both parties then leave feedback. If the seller does not release the bitcoins, then the buyer can file a dispute for the funds left in escrow.
Local bitcoins is arguably friendlier to buyers than to sellers, as some buyers can use the chargeback scam, the seller accepting payments that are later charged back. When buying bitcoins, you are completely protected with the escrow system.
Bitstamp claims to be the world’s first fully licensed exchange. They offer a large variety of payment methods and even allow people to cash out into gold. Like nearly all services, credit card purchases require identity verification.
Once your account has been verified you simply link your card and buy your bitcoins. Bitstamp follows a staggered fee system of 8% for purchases up to $500 and 5% for purchases above $5,000. The more you buy the lower the fee.
Virwox has been around since 2007 allowing the purchase of something called “Linden Dollars,” a currency used in virtual gaming. In 2011 Virwox added support for bitcoin.
Few companies have been around so long in the digital currency space. This is an indirect method to gain exposure to bitcoins with a credit card. First, you need to purchase Linden Dollars with your credit card and then exchange Linden Dollars for bitcoin.
Unfortunately, this will mean two stages of fees, one for buying Linden Dollars and another conversion fee from Linden Dollars to bitcoin. The price is slightly higher than the market average with the benefit of competitive prices and instant servicing.
Buying Bitcoins with a Credit Card
Other notable places to buy bitcoins with a credit card include IndaCoin, BitPanda, Bitcoin.com and Coinmama. Each exchange will have advantages and disadvantages but generally speaking you are paying around 4-8% in fees when buying bitcoins with a credit card on any exchange.
If you want bitcoins instantaneously on an exchange, then buying with a credit card is the best option. If you want to save 2-3%, there are many other options.