Bitcoin and blockchain technology have made inroads in the mainstream society but, to be fully accepted they still have a long way. Many people are taking an interest in the cryptocurrencies and the number of investors are increasing day by day. The trading volume of Bitcoin on a daily basis continues to testify the interest of the public. A number of crypto exchanges and other online platforms offer different options for buying Bitcoin. Bitcoin can also be bought through credit cards, debit cards and PayPal.
Points to Consider when Buying Bitcoin with Debit Card
- Exchange: Not all cryptocurrency exchanges offer debit card purchase of Bitcoin even if you can make deposits for trading with debit card. There are other online platforms too that have the option of buying Bitcoin with debit card.
- Location: Many Bitcoin or cryptocurrency exchanges operate all over the world or just in specific locations. Based on the country or locality these exchanges may have their own views on Bitcoin and transactions. You need to check out whether the crypto exchange operates in your locality and what are the legal restrictions there.
- Speed: The speed of the transactions, purchasing and receiving Bitcoin, matter a lot. When buying Bitcoin with credit card, most of the crypto exchanges offering the service claim that the buyers will instantly receive the crypto coin. The verification process often asked by the exchanges may delay the end process a little.
- Fees: The fees charged by the cryptocurrency exchanges for debit card purchase of Bitcoin may vary due to the region of operation, and speed of the process. The debit card company may also charge something if you are buying Bitcoin with it. A foreign transaction fee may also be applicable. For instance, if an American debit card is used to buy Bitcoin from an exchange based in another country then, the debit card company may charge something. The foreign transaction fee is also applicable when buying Bitcoin with credit card.
The Process of Buying Bitcoin with Debit Card
- The wallet: It is important to choose a wallet before taking a step towards buying as you will need to store the purchased Bitcoin. You can choose from a mobile, online or hardware wallet to store the Bitcoin you purchased with debit card.
- The exchange: The cryptocurrency exchanges have become a popular zone for trading as well as buying Bitcoin. Coinbase, Bitpanda, Coinmama, and CEX.io are some of the popular crypto exchanges that provide the option of buying Bitcoin with debit card.
- Linking the debit card: The debit card needs to be linked to the account in case of many cryptocurrency exchanges. This will make the process easier for both the exchange and the buyer.
How to Decide on an Exchange when Buying Bitcoin with Debit Card?
- Coin limit: Many cryptocurrency exchanges put a daily limit and monthly limit on the amount of Bitcoin purchase with debit card. Some of the exchanges may put a limit on the first purchase and then increase the amount for subsequent purchases.
- Security: As for security, the exchange should have data encryption and two-factor authentication (2FA) system in place. This way the payment process will be secure and you will also receive Bitcoin in a secured way.
- Fiat currency option: Another thing to check out is the currency you are buying Bitcoin with. The debit card payment option may be provided by the crypto exchange but the option may not be available for all fiat currencies. For instance, most of the exchanges approve of debit card payment in USD and/or EUR but AED may still not be a valid option for all exchanges. Moreover, depending on the fiat currency used to make the payment the fee and the daily and monthly limits may also vary.
Where to Buy Bitcoin with Debit Card?
Coinbase is one of the most popular cryptocurrency exchanges worldwide that offer Bitcoin purchase with debit card. The citizens of US, Canada, Europe, UK and Australia can avail this service. You will be able to buy up to $150 or €150 of Bitcoin per week through debit cards at Coinbase. The exchange charges a fee of 3.99% for debit card purchase. Coinbase offers $10 or €10 worth of Bitcoin free to the buyers when they purchase above $100 or €100. The buying process requires you to select the amount and debit card as the payment mode. The process is described elaborately below:
- Firstly, you need to register for a Coinbase account if you do not own one. This way you will have the option of storing your Bitcoin securely and do not have to find other methods of storing Bitcoin.
- The verification process will start that will require your ID proof.
- After registration, you need to link your debit card to your Coinbase profile. You will have to enter your debit card details like card number and name, expiry time, CVC number and ZIP code. You will see a confirmation dialog box with “Buy Bitcoin” option.
- You simply need to enter the amount and click on “Buy Bitcoin Instantly”. The coins will be sent to your Coinbase account.
Coinbase offers high Bitcoin buying limits and the process is easy to follow for the beginners even.
Cards accepted: Visa, Mastercard
Coinmama too offers Bitcoin purchase with debit card but 6% is charged for risks and processing. From Coinmama, you will be able $5000 worth of Bitcoin on daily basis while the monthly limit is $20000. The amount of crypto coins purchased is delivered instantly once the verification process is over. However, Coinmama is available for only some of the countries in the United States. Like in the case of Coinbase, you need to open an account on Coinmama. The process is quite easy and you have to mention your name, country of residence, date of birth, gender, home address, ID number, and choose the document issuing country. You will find the “Buy Bitcoin” option on the Navigation bar. Click on that and select the amount you want to purchase—0.5, 1, 1.2 or 2 Bitcoin. You can also scroll down and select your own amount. After selecting debit card as the payment option, you will have to give your Bitcoin wallet address. You will have to enter the debit card details and an email and a 4-digit SMS pin confirmation is done. A unique verification system—Coinmama asks the buyers to take a selfie with your debit card where your name, the card’s expiration date, first and last four numbers are clearly visible. You will receive a confirmation email at the end of the process. You will hardly have to wait for 30 minutes to receive Bitcoin in your wallet.
Cards accepted: Visa, Mastercard
Bitpanda allows purchase of Bitcoin with debit card through their platform with only 3% to 4% fees. However, only European residents can take advantage of this exchange. You will have to keep in mind that the fee will be displayed in the buy price after you have completed the purchase when buying Bitcoin with debit card from Bitpanda. Like Coinbase and Coinmama, you will need to open an account on Bitpanda by giving your email id and other details. To start the process, you need to select “Buy” from the top menu bar. Then, choose the debit card option and enter the amount you want to purchase, and confirm it. You will have to agree to Bitpanda’s exchange rate and the “Current Price” will show you the rate you are getting. Remember that Bitpanda’s fees are incorporated in the exchange rate. The time given to lock in your exchange rate and confirm is just 1 minute as the Bitcoin market is exposed to fluctuations usually. The verification process usually involves a SMS or phone call. After the process is completed, you can store received Bitcoin in your wallet.
Cards accepted: Visa, Mastercard (3d-Secure)
CEX.io offers citizens of Europe, the United States, and some countries in South America to buy Bitcoin using debit card. To make the process secure and to prevent frauds, CEX.io demands extensive verification process that may take as long as 30 minutes. The advantage is that the trading average fee is 7% that is included in the exchange rate. You can choose the amount you want to purchase from the package- $200, $500, and $1000 or place your own amount. It is a trusted exchange and supports many countries so, check out whether you will be able to avail its services from your region.
Cards accepted: Visa, MasterCard
Coinhouse operates in most of the European countries and offers the option of buying Bitcoin using debit card. Even though it has slightly higher exchange rates, the exchange has high buying limits. You will have to open an account at Coinhouse and confirm your account. You will be able to buy €2000 worth of Bitcoin per day and up to €10000 per month. The exchange delivers Bitcoin instantly to your wallet.
Cards accepted: Visa, Mastercard
As you can see there are many crypto exchanges that offer buying Bitcoin using debit card. So, make sure you have selected a secure wallet and have enough balance in your account for debit card purchase.