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Table of contents
- Credit/Debit Card Bitcoin Exchanges
- What Is Bitcoin and How Does It Work?
- Can You Buy Cryptocurrency With a Credit Card?
- Using a Credit Card to Purchase Cryptocurrency
You can still convert one crypto into another inside the wallet, but you can't open limit orders, for example. If you're not a trader, a wallet that lets you buy BTC with a debit card is probably better and easier than an account on Binance. These are websites that exist in the grey zone, meaning that they accept just about any means of payment and sell dozens of cryptocurrencies, but their activities are completely unregulated.
Some have a license, while some aren't even registered as companies. You can find them on the aggregator bestchange. Bestchange interface. Most of these services have some form of a KYC: full name, email address, and phone number but they don't require any scans or selfies. You can even find 'grey' exchangers that allow you to buy bitcoin with a credit card instantly and with no verification.
However, remember that such services are also the least secure. You'll have to transfer them the money and hope for the best because there's no real guarantee that the exchanger will honor its part of the deal.
Plus, they tend to offer unfavorable rates with high hidden fees. But if your main problem is how to buy bitcoin with a credit card and no verification, half-official exchangers are your only option. P2P sites. The most famous P2P crypto platform is LocalBitcoins.
Credit/Debit Card Bitcoin Exchanges
There you buy from individuals, not from companies, and there are hundreds of offers to choose from. Simply select your country, enter an amount and a currency, and pick 'Credit card' from the list of payment options. LocalBitcoins interface. LocalBitcoins used to be a bastion of independence and anonymity.
What Is Bitcoin and How Does It Work?
Just a couple of years ago, you could easily buy Bitcoins with a debit card and no verification. But in September , the website introduced an obligatory KYC to comply with the law. Is it possible to buy Bitcoin instantly with a credit card and no verification?
- Can I Buy Crypto With a Credit Card? - NerdWallet.
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You'll often see ad banners offering you to buy Bitcoin with a credit card instantly. But once you head over to the site, you'll discover that the process isn't instant at all. You'll need to complete a KYC first, and that can be quite laborious! On any secure, regulated platform you'll have to provide your full name and address, emails, plus a scan of your photo ID and your selfie holding the ID.
Many sites also ask for proof of residency like a utility bill or a bank account statement and even a photo of the credit card. On top of that, you'll have to make sure that the scans and photos are of the correct format and size: no more than 2MB, no less than xpx, with all the letters clearly legible, and so on. We've even seen sites demand a selfie with the credit card in one hand and the ID in the other! You'd need a third hand to make that selfie — or someone to take a picture of you. The whole process can take anything from 30 minutes to a whole day. If a document doesn't fit the requirements, your KYC application will be rejected and you'll need to send another file.
Can You Buy Cryptocurrency With a Credit Card?
Why do crypto exchanges make it so difficult? Why not just let users buy Bitcoin with a credit card and no verification at all? The reason is that whenever fiat and cards are involved, there's always an intermediary bank. And no bank will ever work with an exchange that doesn't verify the identity of its customers.
The risk of money-laundering and other illegal activity is too high. So any website that promises that you can buy bitcoins with a credit card instantly and with no verification is most likely a shady or even illegal operation. For example, our new CoinsPaid wallet will also require users to pass a KYC if they want to buy bitcoin instantly with a credit card. The difference is that the verification will be smooth, quick, and painless — it won't spoil your experience of using the wallet.
Watch out for hidden fees. Before you buy crypto with a credit card, make sure to check two things:. Credit card fee vs.
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It can be much cheaper to send money from your bank account, especially in Europe with its SEPA system. For instance, here are the fees on Coinbase:. Coinbase fees Europe. As you can see, a SEPA transfer will cost you just 0. Mostly because of the acquiring bank's commission.
They can exceed 3. Of course, you'll have to wait for a day or two at least for the wire transfer to be processed. But if you want to save money, it's better to use a bank account rather than buy bitcoin with a debit card. Exchange rate. If the fee is attractively low, it can be because the commission is included in the exchange rate — and thus hidden from you.
As an experiment, we compared quotes on several sites at the same time on October 30, This means that the LocalBitcoin seller's price is 8. Buying Bitcoin with a debit card: is there any difference? So far we've discussed how to buy Bitcoins with a credit card.
Using a Credit Card to Purchase Cryptocurrency
But what if all you have is a debit card? The good news is that almost all exchanges that accept credit cards also allow you to buy bitcoin with a debit card instantly. However, some regional types of debit cards may not be accepted. The fees and KYC rules will usually be the same for debit and credit cards.
Thus, on a transparent and legal platform, you won't be able to buy Bitcoin with a debit card and no verification.
Credit or Debit card? If you have both a prepaid card and a credit card, it's probably better to buy bitcoin instantly with a debit card — at least if you live in the US or Canada. A recent study by global investment platform eToro found 43 percent of millennial online traders trust crypto exchanges — platforms where you can buy and sell cryptocurrencies — more than the U. With crypto sparking so much interest, some exchanges offer the convenience of buying cryptocurrencies with a credit card.
Cryptocurrencies are virtual currencies that can be used to pay for goods and services just as you might use dollars, euros or pesos. In fact, some governments have warned their citizens about the risks of investing in cryptocurrencies for that very reason. However, some disagree, pointing out that the speculative nature of cryptocurrencies makes them an appealing component of a long-term investment strategy.
See related: J. Morgan Chase becomes first major U. While crypto exchanges such as Coinmama, CEX. IO and Bitstamp let consumers use a credit card to buy cryptocurrencies, finding a credit card issuer in the U. Last year, several of the biggest card issuers , including Bank of America, Chase, Citigroup, TD Bank and Capital One all banned the purchase of cryptocurrencies via their credit cards. However, you may have better luck with some smaller banks or credit unions that have not officially banned the practice of buying cryptocurrencies with a credit card. American Express allows you to purchase cryptocurrencies, but in very limited circumstances, says representative Melissa J.
See related: Bitcoin credit cards? The U. Securities and Exchange Commission in issued an alert warning investors that using a credit card to invest comes with a number of risks. For example, some scammers pressure investors to use credit cards to fund their investments, the SEC says. The pros of buying cryptocurrencies with a credit card include being able to invest regardless of how much cash you have on hand and being able to take advantage of rewards earned through your spending.
If your credit card issuer charges a transaction fee, that too could take away from your profits. Then there is the possibility of damage to your credit score if you find yourself unable to pay off the balance or make payments on time. Some may think they can avoid credit card interest by using a 0 percent promotional offer, but that too can be problematic, says Melinda Opperman, executive vice president at Credit.
Another drawback is that a lot of crypto exchanges charge hefty service fees, Bensonoff points out. For example, CEX. IO charges an extra 2. There are also scams surrounding cryptocurrencies. Bottom line: Investing is risky by nature. Do you want to risk your credit profile along with your money? The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.
Tamara E. Holmes is a freelance journalist who has written extensively about personal finance, health and business. She has reported and edited for print and online news organizations for more than 15 years, with her work appearing in numerous magazines, newspapers and websites.
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