Learn Where & How to Buy Bitcoin With Debit Card - A Beginner's Guide

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:

1. 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.
2. 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.
3. 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.

Whenever purchasing Bitcoin with debit cards, you need to know the transaction fees. It is cheaper than using a credit card to buy Bitcoin. 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.

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.