Learn Where & How to Buy Ethereum With Debit Card - A Beginner's Guide
Ethereum is an open-source platform that Vitalik Buterin proposed in late 2013. The Ethereum blockchain has experienced steady growth since then, and its native currency has emerged as the second-largest by market capitalisation. The blockchain-based system was officially launched in 2015, with 72 million Ether (ETH), to empower individuals to transfer money and use the smart contract functionality to create dApps.
Debit cards are payment systems that deduct funds from customers’ checking accounts to pay for purchases. They eliminate the need to carry cash around, and people can buy Ethereum coins securely with debit cards.
Steps to Buy Ethereum With Debit Card
The cryptocurrency world has experienced significant growth over the years due to the emergence of several credible payment methods. It means the buying and selling of ETH has become incredibly easy. In 2020, you can buy Ethereum with a debit card. If you choose, you can also use the same payment method to buy Bitcoin or any other major crypto coins. Moreover, you can use a debit card or perform a bank transfer, depending on your requirements.
Purchasing Ethereum with a debit card is the best alternative when you do not have ready cash. But it is an expensive alternative. If you cannot buy directly from your exchange, use the traditional route.
Here are the best steps to follow if you intend to purchase ETH with a debit card:
- Activate your debit card: If you have a bank account, ask the bank to issue you an active debit card. You will pay a small fee and likely get the card on the spot.
- Create an Ethereum wallet: You need to create a trusted wallet. Remember, this is the place where you will store your crypto coin. Some cryptocurrency exchanges have wallets, but it is advisable to create one that you have full control over and is safe from hacks.
- Register with a credible cryptocurrency exchange: Choose a trading platform that accepts debit cards and register. You will most likely need to upload your photo ID. As such, have one ready to avoid unnecessary delays.
If you are one of the people who do not like this traditional exchange route, you can consider a more flexible option. Peer-to-peer marketplaces are designed for people who need small amounts of ETH within the shortest time possible. You can buy from multiple sellers on these platforms if you need larger amounts.
Best Places to Buy Ethereum With Debit Card
Finding the most reliable and affordable platforms where you can buy Ethereum with debit cards is more challenging than opening a trusted wallet or activating the card. Using debit cards can be convenient and affordable, but if you are working with the worst exchange or broker, you are likely to lose a lot of money and time.
We have been in the industry for several years and have used our extensive experience to identify and list for you some of the best places to buy ETH with a debit card.
Pros and Cons of Buying Ethereum With Debit Card
What Are the Transaction Fees on Debit Card?
Some of the factors that could determine your transaction fees are merchant type, method of capture and the card-issuing bank’s size. If you are a merchant operating under Mastercard’s “Merit III Tier 1”, the debit rate is 0.70% plus a flat rate of 0.15 USD. The prepaid rate is equal to the debit rate. Non-exempt transactions receive a rate of 0.05% in addition to 0.21 USD. For standard debit cards, holders do not pay the prepaid rate. These Mastercard debit fees are similar to Visa. When making a foreign transaction, you may also be required to pay a fixed rate.
If you are using either Visa or Mastercard, you should not expect a significant difference in transaction fees. However, before choosing any debit card, you should take your time to verify the prevailing rates. Even though debits cards are more affordable than credit cards, you do yourself a lot of favour by ascertaining the costs in time. The fees are never static.
Some crypto exchanges will also charge you as high as 10%. Many companies charge 4.5% as card processing fees. Other exchanges will not charge you any amount other than the card processing fees for your first debit card purchase. However, for all other purchases, you pay an additional 2.5% as service fees. When the money hits your wallet, you also pay a small fraction to the company.
ETH to Debit Card: Can I Transfer Ethereum to Debit Card?
Yes, you can indirectly and directly transfer ETH to your debit card. Choose a crypto trading platform that accepts your debit card. Most of them accept Visa and MasterCard debit cards.
Initiate the transaction by transferring your cryptocurrency to the company. Or, if you are using a third-party service, send the digital asset to them. The exchange will do the same. After a short while, you will have the money on your debit card.
Debit Card to Ethereum: It Is Possible to Convert My Debit Card Funds to ETH?
If you have some money on your debit card and would love to convert it to Ethereum, we can help you do it with ease. You can work with a crypto trading platform and achieve your goal in the comfort of your home. To do this, choose an exchange or broker with funds, is reliable and supports debit cards. Send the money to their bank account, and have them convert it to the crypto coin. You will receive the digital currency in your trusted wallet, where you can store and manage it as you want.
Frequently asked questions
Yes, but most cryptocurrency exchanges currently support Visa and MasterCard. So, you are better placed to get the service fast if you are using a Visa or MasterCard. Since activating these debit cards is easy, getting the service should not be a problem. At the same time, you can consider working with sellers in your peer-to-peer marketplace, as many of them are flexible and may be willing to accept your alternative method of payment.
Yes, crypto exchanges will require their new users to go through KYC (Know Your Customer) despite the payment method being used. But this process is safe and straightforward. Upload a scan of your ID. Make sure it is of the best quality. After that, you will provide your details. The best places to buy ETH have a well-trained team on standby to review that information before granting users the chance to purchase the coin.
You must cover the card processing fees. It differs, but the average cost is 4.5%. The trading platform will also charge you as per their pricing policy. Many of them charge about 2.5%, but a few others require as much as 10%.
Yes, thanks to technological advancement, debit cards allow you to complete the transactions in fewer than 10 minutes. However, if you are purchasing for the first time, you may take a little more time, given that you need to verify your identity first. If your bank takes longer to process the transactions, you can opt to use the seller’s service in your peer-to-peer marketplace.
Debit cards are accepted across that world and are affordable. They are also a regulated form of payment that is easy to use. Other than that, your debit card can help to keep you out of debt. They restrict you to spend what you can afford. Since Ethereum is highly volatile, making purchases on credit may lead you to a severe personal economic crisis if things fail to go as planned.
No, currently, all licensed trading platforms that observe the law ask their users to verify their accounts. In the past, it was still possible. But the government has taken measures to secure all users by making ID verification a mandatory requirement. So, as a law-abiding citizen, you should not try this.
Due to the volatility that characterises the cryptocurrency market, it is difficult to tell you when you should buy this crypto coin accurately.