Cryptocurrency Exchange Payment Methods
Making crypto trades all starts with a single deposit. No matter how large or small, the process of buying and selling Bitcoin (BTC), Ethereum (ETH) et al requires you to fund an account using a recognized payment method. Below are some of the most popular, efficient, and safest cryptocurrency exchange payment options:
PayPal: An online wallet, PayPal allows you to deposit, store, transfer, and withdraw funds to various sites. PayPal deals in fiat currencies, which means this method is only compatible with fiat-to-crypto exchanges and online brokers such as eToro.
Credit/Debit Card: The most popular payment method, credit/debit cards such as Visa and MasterCard allow you to send money directly from your bank account.
Bank Transfer: With some countries making it difficult to use credit cards, bank transfers are the next viable alternative. If you’re using an online broker or a fiat-to-crypto exchange, you can send funds from your account using the faster payment mechanism. This means your deposits should be processed instantly.
Digital Tokens: The original cryptocurrency exchange payment method, digital tokens are the only way to trade if you’re using a crypto-only platform. Regardless of how you obtain digital tokens such as Ripple/XRP, you’ll need to send them from your crypto wallet to an exchange.
The Safest Cryptocurrency Payment Options
The aforementioned cryptocurrency payment options are considered secure. However, you need to use a recognized method in order to ensure your funds are never in danger. With regards to the leading payment methods, you’re protected in the following ways:
- Visa/MasterCard: Using a credit/debit card is great because both are overseen by regulators such as the Financial Conduct Authority (FCA). Additionally, credit/debit card payments are insured by your supplier. Finally, these options also offer authorisation features such as Verified by Visa.
- PayPal: Sending money from one online source to another is more efficient which, in turn, makes it more secure. The other benefit of using PayPal, in addition to regulatory oversights, is the addition of two-factor authentication.
- Digital Coins: All cryptos are secure by nature. As well as being decentralised and secured by cryptography, sending funds is anonymous. Therefore, it’s tough for fraudsters to target you or your funds.
Cryptocurrency Exchange Fees: How Charges Will Differ by Payment Method
Depending on the cryptocurrency exchange payment method you choose, the fees you pay can change. In general, deposits using digital coins are the most cost-effective. For example, if you read our HitBTC review, you’ll see that you can fund your account for free using Bitcoin (BTC), Litecoin (LTC), and more.
The same is true of the BitFinex Exchange. However, you will have to pay a minimum fee of $60 or 0.100% when you use fiat money, i.e. credit/debit cards or bank transfer. In addition to deposits, you may have to pay a withdrawal fee. For example, as noted in our eToro guide, PayPal is a viable option, but you’ll have to pay a $25 withdrawal fee when you use this method.
Cryptocurrency Payment Methods by Exchange
In general, there are three types of crypto exchange. Each one will allow you to make payments using a selection of methods. To help you find the right platform for your needs, here are the type of exchanges you can use:
Online Brokers: These platforms accept fiat cash via Visa, MasterCard, and bank transfer. The added advantage of brokers is that they also accept PayPal payments. eToro and Plus500 fall into this category.