Bitcoin is a decentralised digital asset created by Satoshi Nakamoto to work as a store of value and medium of exchange. Since 2009, the digital currency has experienced steady growth. It is transforming the cryptocurrency world like never imagined before, with its price forecast to rise even further as demand increases and supply dwindles.
A debit card is a major payment method that deducts money from the cardholder’s checking accounts to pay for purchases. It eliminates carrying around a lot of cash. Many crypto exchanges accept debit cards as a payment method for purchasing Bitcoin, offering value for money.
Steps to Buy Bitcoin With Debit Card
Purchasing Bitcoin with a debit card is not as easy as it might sound. Some cryptocurrency exchanges are afraid of the risk of fraud and are not willing to accept it. However, there are enough companies that you can partner with whenever necessary. So, many trading platforms do not accept direct trading.
The process of using debit cards to buy Bitcoins is quick, and it can be done in less than 15 minutes. Here are the most important steps:
- Create a Bitcoin wallet: There are plenty of Bitcoin wallets out there. But you need to take care to choose the most efficient and secure one. If you are in doubt, turn to bitcoin.com for a comprehensive list. Here, you can store, transfer and manage your cryptos.
- Have an active debit card: The process is simple. Ask your bank to activate your debit card and deposit the amount adequate for the purchase into the account.
- Register with Bitcoin trading platform: This is the place where you can buy and sell Bitcoin. Select a platform that accepts your debit card.
If you want to use a peer-to-peer marketplace, do some online research. After that, look for sellers that accept debit cards.
Best Places to Buy Bitcoin With Debit Card
Unlike obtaining a Bitcoin wallet, which is simple, finding the most reliable cryptocurrency platform that accepts debits cards requires one to carry out some research. The level of difficulty depends on different factors, including the country and location. Some jurisdictions have placed strict rules on buying cryptocurrency.
But using debit cards to buy or sell Bitcoin remains one of the most efficient and convenient ways to trade Bitcoins instantly. We understand the difficulty of choosing a suitable Bitcoin exchange. We have compiled a detailed list of the top alternative places where you can buy BTC using debit cards with ease.
Pros and Cons of Buying Bitcoin With Debit Card
What Are the Transaction Fees on Debit Card?
Whenever purchasing Bitcoin with debit cards, you need to know the transaction fees. It is cheaper than credit cards. However, trading platforms charge different rates. At the same time, the debit card issuer will also charge you an additional fee. For example, Bitpay Debit card withdrawals cost 2 USD in the United States and 3 USD abroad. Each transaction outside the US costs 3%.
Most platforms charge approximately 2.5% of domestic transactions irrespective of the transaction value. Other than Visa and Mastercard debit cards, there are several others. So, you need to do simple online research to find out the exact transaction fees on your preferred prepaid card. You also pay bank transfer fees to the financial institution that transfers the money to your debit card. Irrespective of the cost, buying Bitcoins with a debit card remains one of the best cost-effective and reliable methods.
BTC to Debit Card: Can I Transfer Bitcoin to Debit Card?
Assuming you have bought Bitcoins and they are stored in your wallets, you need a credible way to transfer them to your debit card. How can you do this? Debit cards store money in the form of fiat currency. So, you need to find a way to convert your Bitcoin into fiat currency before you can transfer it to your debit card. Look for a suitable crypto exchange that can allow you to withdraw funds via your debit card.
Debit cards are safe and hardly allow the reversal of funds. So, once you have partnered with the right cryptocurrency platform, you are safe to start the process of transferring your Bitcoin to a debit card. Send the coins to the trading platform and have them deposit the amount in your debit card. Some platforms have also automated this process. Overall, the process depends on your chosen exchange. However, please note that there is no way to send the funds to your card directly.
Debit Card to Bitcoin: Is It Possible to Convert My Debit Card Funds to BTC?
As in the above case, you cannot directly convert your debit card funds to Bitcoin. The systems are currently incompatible. Remember, Bitcoin is more volatile than fiat currency, and the transactions are often irreversible. Debit card funds can be reversed. Besides, unlike typical debit card funds, Bitcoins are decentralised currencies. While new developments in the financial services industry show this may change after a short while, it is best to learn the indirect methods of converting the funds to BTC.
Evaluate the pros and cons of your chosen platform before deciding to buy Bitcoin with a debit card. Most of them have a simple signup process. Once you verify your identity, you can convert the funds. The best exchange should have an escrow system that ensures your funds are safe. But do not expect to get anonymity since debit cards operate in centralised systems. They validate your identity before allowing you to buy Bitcoin with a debit card.
Frequently Asked Questions
Yes. It is possible to buy Bitcoin using debit cards, but you must choose a trading platform that accepts it as a payment method. You also need to have a crypto wallet where the seller will send Bitcoins. Once you pay using your debit card, they will send you the digital currency.
The number of people investing in Bitcoin is historically high today since many individuals believe it will soon replace the fiat currency. However, the reality is that only a few merchants have already fully embraced digital assets as a mode of payment. For that reason, you need to convert your Bitcoin to debit card cash, which you can use to make almost any type of purchase. Besides, you can withdraw the money if you prefer to settle some of your bills in cash.
You can buy Bitcoin using a debit card by following simple steps. You start by creating a Bitcoin wallet. You then start a transaction on your preferred cryptocurrency trading platform. After that, you enter your Bitcoin address and pay with your debit card. And that is all.
You cannot buy Bitcoin using a stolen MasterCard or Visa card since you cannot pass the ID verification stage. If you are thinking about buying Bitcoin with a debit card, please note that trading platforms follow a strict verification procedure. Again, using a stolen debit card is illegal. So you should not even attempt it. Due to all the users’ safety, you cannot even buy Bitcoin using a debit card anonymously.
You can buy Bitcoins from more than 180 countries using your debit card. But ensure that the prepaid card has the MasterCard or Visa logo. Also, ensure you confirm whether it permits international payments or not. You can buy the digital asset in your home or office’s comfort if you are in the United States, the United Kingdom, France, Australia, Spain, Korea, India, and several Arabic countries.
Many exchanges require their customers to go through the Know-Your-Customer (KYC) process or ID verification procedure. The good news is that this can take you as few as 3 minutes to complete. If you are new to the buying and selling of cryptocurrencies, you will still spend under 15 minutes.