How Can I Use My Debit Card to Buy Bitcoin? Know Four Best Ways to Buy Bitcoin By Debit Card

The question arises by Beginners how to use a debit card to buy Bitcoin. So, here is complete detail

The prodigious adoption and unprecedented momentum of cryptocurrency have seen many first-time investors looking for avenues to purchase their first Bitcoin. This article discusses how user scan buy Bitcoin using their debit cards.

 Purchasing Bitcoin using your debit card may not be as straightforward as it sounds. If you plan to buy Bitcoin from a crypto exchange, for example, not all exchanges will accept debit cards because of the scope of a fraud. However, things are changing, and many exchanges have implemented services to detect fraud and allow debit and credit card purchases. This article will delve into some methods of buying Bitcoin using your Debit card.

Before You Begin to Buy Bitcoin

Before investing in Bitcoin, you need to keep a few things in mind.

·        An Exchange to Purchase Bitcoin: Before you can start buying Bitcoins, you may need to create a cryptocurrency exchange account and a method of payment. Several platforms also ask for KYC (Know Your Customer) details; hence, you also require personal identification documents. (It is recommended to have a personal cryptocurrency wallet outside the exchange account to keep your crypto assets more secure.)

 

·        Avoid Mentioning About Your Extensive Holdings: Privacy and security are two crucial issues for Bitcoin investors. Although Bitcoins are not a physical commodity, it is a bad idea to brag about extensive holdings. Malicious actors who gain access to the private keys on the blockchain can authorize transactions. Hence, it is a good practice to keep your private keys secret.

 

·        Transactions are Confidential But Not Anonymous: Any user can view the history of transactions that are made on the blockchain, including yours. Hence the transactions are confidential but not anonymous because the user's public key always appears next to a transaction. Thus, Bitcoin transactions are more traceable and transparent than cash, and they can get used anonymously.

 

Ways to Buy Bitcoin Using Debit Card

There are several methods of buying Bitcoin using a debit card. You can go through the following methods and choose one per your convenience.

1.   Crypto Exchanges

Signing up for any crypto exchange allows you to buy, hold and sell cryptocurrency. You can choose an exchange that will enable you to withdraw the cryptocurrency to your personal online wallet as a good practice. Today, popular exchanges like Coin base, Kraken, Gemini are not decentralized and require users to verify customers according to KYC norms. After the exchange verifies your identity and legitimacy, you can connect a payment option. You can either connect your bank account directly or link a debit or credit card. ( An important point to note here is that when you have decided to buy Bitcoin using your debit card, you are not being truly anonymous as your Bitcoin purchase on a centralized exchange using a debit card may be traceable to an extent. On the other hand, several decentralized exchanges (DEX) do not require users to provide personal information to buy cryptocurrencies and hence offer better anonymity to users.)

 

2.   Bitcoin ATMs

Bitcoin ATMs are like in-person Bitcoin exchanges. You can deposit cash into the ATM and use it to buy Bitcoin, which you can transfer to a secure digital wallet. However, in recent times, Bitcoin ATMs have evolved and provided users with the easiness of buying Bitcoin using debit cards as well.

On easy and quick way to purchase Bitcoin through ATMs is through Pay Depot. It does not let you get stuck to debit card processing or bank transfers. You can use their high-end technology to sell or buy Bitcoin for cash without waiting days for the transaction to complete. Pay Depot has many ATMs scattered across the US.

 

3.   P2P Exchanges

Decentralized exchanges match up sellers and buyers anonymously to facilitate every aspect of the Bitcoin transaction. However, there are peer-to-peer (P2P) exchanges that offer a direct connection between the users. Local Bitcoins is an example of a P2P exchange. You cancreate an account and post a buy or sell request for Bitcoins. You can also add various payment methods like a bank account, debit card, credit card, etc. The exchange will then show you a list of offers, and you can choose your trade partners to transact Bitcoins.

 

4.   Through a Broker

buy bitcoin through broker

A brokerage account will let you sell and buy Bitcoins by placing a request through market orders submitted through the platform. The broker will fill the buy order on your behalf and charge a commission. Following are the steps to buy Bitcoin through a broker:

· Choose a broker.

· Open your online account: You may need to give contact information, physical address, SSN, etc.

· After the broker approves your account, you can add portfolio holdings, convert between cryptos and track your profits.

· Link your Debit card (Most brokers support Visa and Mastercard payment cards).

· Get a Crypto wallet.

· Buy your Bitcoins; place a Bitcoin buy order and wait for the broker to fill it up.

 

Importance of Crypto Wallets

Bitcoin and crypto wallets are secure places to store your digital assets. Keeping your crypto outside the exchange and in your crypto wallet will ensure you have complete control over the private keys of your funds. Another advantage of a crypto wallet is that you can store funds away from the exchange and mitigate the risk of your exchange getting hacked and losing your funds.

You have many options when it comes to selecting a Bitcoin wallet, such as Payperless Crypto Wallet. Its prime advantage is that there is no KYC process, and you can sign up and directly start trading. Wallets like the seare a secure option to store your funds as they generally offer robust encryption technologies to keep your crypto from falling into the hands of adversaries. Furthermore, on Payperless, crypto transactions are free of charge, which will save you from hefty transaction fees. It is not recommended to use an exchange wallet for long-term or large cryptocurrency holdings.

 

A Note For Customers in The UK And Europe

People residing in the UK or Europe can only use their debit card to buy cryptocurrency if it supports3D Secure protocol. Through this technology, you do not have to pre-fund the account to purchase Bitcoins, and you can buy them instantly without waiting for the completion of a bank transfer.

You can contact your debit card provider to determine if your card supports it. Some banks require you to complete several security steps before authorizing the transaction using 3D Secure like text messages, security questions, etc.

 

Final Words

This article discussed several ways to buy Bitcoin using a Debit card. Using a Debit or Credit card is only one of the many ways one can purchase cryptocurrency. There are several other ways available that may seem far more convenient. Nonetheless, there are some best practices that cryptocurrency buyers, especially first-time users, must adopt while investing in Bitcoin, such as not keeping their Bitcoins on the exchanges at all times and move them somewhere where they are more secure, such as Bitcoin wallets like Payperless if you intend to keep them long term. Also, you can your use bitcoin to buy things.

References

1.    Ofir Beigel, (Aug 12, 2021). "6 Ways to Buy Bitcoin with a Debit Card."

https://99Bitcoins.com/buy-Bitcoin/debit-card/

2.    Chauncey Crail,  Dia Adams (Jul 27, 2021). "Can I Buy Cryptocurrency With A Credit Card?" https://www.forbes.com/advisor/credit-cards/can-i-buy-cryptocurrency-with-a-credit-card/

3.    Charles Munyi (July 22, 2021). "How To Buy Bitcoin With A Debit Card"https://www.benzinga.com/money/how-to-buy-Bitcoin-with-a-debit-card/

4.    Luke Conway (May 31, 2021). "How to Buy Bitcoin" https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-Bitcoin.asp

5.   Coin base. "How do I buy cryptocurrency with a credit or debit card in Europe and the UK?"

https://help.coinbase.com/en/coinbase/getting-started/add-a-payment-method/how-do-i-buy-digital-currency-with-a-credit-or-debit-card-in-europe-and-the-uk