Bitcoin (BTC) has been one of the most discussed topics in the financial industry ever since late 2017 when it hit its all-time high (ATH) at $20,000 per coin. This allowed the entire crypto industry to step out of the shadows and finally present its full potential to the world.
People buy Bitcoin for various reasons, including: pseudonymous payments, for investment, instant cross-border transactions and many more.
Steps to Buy Bitcoin with Debit Card
- Choose a Bitcoin exchange you wish to use and create an account
- Make sure to provide accurate KYC information to have your account validated
- Once you get your account, find a 'Deposit Funds' or 'Buy Cryptocurrency' option on it
- Select debit card as your payment option, and add your card details
- Choose how much BTC you wish to buy and make your purchase
Other Methods of Buying Bitcoin with Debit Card
Crypto exchanges are everywhere, and you don't need to use a centralized one to buy bitcoins with a debit card. Instead, decentralized exchanges are far more prominent — the procedure doesn't require you to deposit the funds into the exchange's wallet, but rather allows direct payments.
Alternatively, there are P2P (Peer-to-Peer) exchanges, where you can enter into an agreement with another user and send them money directly in exchange for BTC. Meanwhile, the coins they previously had put into escrow would be delivered to you.
Lastly, if none of the exchanges available in your region allow you to buy Bitcoin with a debit card directly, you can purchase any other cryptocurrency, such as Tether (USDT), and use this coin for buying BTC.
However, given that we are talking about Bitcoin here, this is likely not going to be the case. Still, it can be a useful thing to remember if you ever decide to buy some altcoin and find it is unavailable.
Advantages and Disadvantages of Buying Bitcoin with Debit Card
Buying Bitcoin with Debit Card Fees
So far, everything seems to indicate that buying Bitcoin with a debit card is a great idea. However, one thing you need to keep in mind is fees.
Transaction fees for credit and debit cards are always high, whether we are talking about crypto purchases or other forms of use. However, buying digital currencies can often come with even higher fees.
The reason for this is that many sites that sell BTC and allow debit cards also happen to use third party payment systems. This often makes the process of integrating debit card payments easier, but also more expensive, as third parties charge their own fees. Then, there is the fee that the bank wants you to pay.
It’s possible that the site itself will throw in its own fee, as it might have to make its own payments to your bank.
In the end, your transaction fee may be anything from 2.5% to 10% of your deposit. Although transactions are relatively fast, they come at a cost. Bank transfers are cheaper but also take longer.
Prepaid Debit Cards
There does appear to be a difference between debit and credit cards. There are companies that allow you to buy bitcoin with a prepaid debit card. Cryptopay is a company that provides a prepaid card where you can load up with your cryptocurrencies from your wallet. They work online, offline and internationally and make it very easy for customers to use millions of businesses worldwide.
Advantages of a prepaid debit card:
Advantage 1: Low commission
Advantage 2: Free worldwide delivery
Advantage 3: Both chip & pin and virtual cards are available
Advantage 4: Accepted anywhere major cards are Prepaid debit cards are the easiest way to cash out your bitcoins.
Buy bitcoin with debit cards through brokers
When you buy bitcoin through a broker, you are not actually owning the underlying asset. This means that you can take advantage of the price movement without actually owning the cryptocurrency. A broker has many advantages compared to crypto exchanges, the main one is that it is regulated. Regulation means you are protected in the case of insolvency of the broker. This is not the case with exchanges and opens you up to more risk than perhaps you should have. Debit cards are one of the most popular routes to buying bitcoin. The process with brokers is very simple, they offer great customer support and can talk you through the whole process, although you shouldn't need their help because it is simple that easy.
Buying bitcoin with debit cards on exchanges
With Bitcoins increasing popularity over the past few months, lots of people are looking to invest in Bitcoin and debit card is the most popular way to buy them. The reason being is because a debit card is the first thing you can use to buy anything online. As a child you would have grown up with maybe some pocket money (cash) but when you got your first bank account, you will have used a debit card. Therefore, nearly everyone has one! When it comes to the procedure of purchasing the cryptocurrency it is important to use reputable sources.
How to get a bitcoin wallet
Before we continue, we need to understand that bitcoins are stored in electronic wallets. You must have one, but it is a fairly simple process as most exchanges offer you them on their platforms. It is advisable to get a secure one that can be downloaded onto your computer. The most reliable and fastest way to buying bitcoins includes debit card and also using wire transfers. The transaction is immediate, which makes the exchanges a lot more comfortable than those that can take a few days to land. Below, we will brief you on how to buy Bitcoins with debit card on various top-rated exchanges.
1) Buy Bitcoin with Debit Card On Coinbase Exchange
Coinbase is considered as one of the largest exchange dealing in Bitcoins. It has a large clientele base in various countries including UK, Europe, Australia, Singapore, Canada and the USA. Customers can buy Bitcoins with debit card up to $150 per week at Coinbase. The company charges 3.99% fee on all transactions made through a debit card. Those who spend over $100 at one time are entitled to a bonus offer, which can change depending on when you buy your crypto! To buy Bitcoin with debit card from Coinbase, follow the steps highlighted below:
- You need to create your account at Coinbase.
- Upload supporting documents to get your account verified.
- Select the payment method and the card product you wish to use (Visa debit or mastercard debit).
- Fill in your debit card details.
- Enter the amount of Bitcoin that you wish to buy using your debit card.
- Proceed to payment page and press “submit” to authorize the purchase.
- Get your purchased bitcoins transferred to your E-wallet account.
- It’s the most highly regarded on the market
- It offers great customer support
2) Buy Bitcoin with Debit Card On CoinMama
CoinMama is the specialist broker that offers bitcoin sale and purchase online. Customers can buy bitcoins with debit card as well as other methods including credit card, wire transfers, and cash. CoinMama allows its customers to purchase a high volume of bitcoins, up to $20000 a month and it has a maximum of $5000 daily limit.
- Go to CoinMama’s webpage and click on the “signup” tab.
- Fill in your details on the registration form.
- Attach a proof of your identity.
- Wait until your account is approved.
- Select the bitcoin amount that you would like to purchase.
- Enter your Visa or Mastercard debit card credentials.
- Proceed by clicking the “submit” button.
- It is available worldwide
- It offers highest limits to purchase Bitcoins
- It allows you to buy bitcoins with debit card and various other payment methods
3) Buy Bitcoin with Debit Card From BitPanda
BitPanda is another trusted name when it comes to the selection of a reliable source to purchase Bitcoin. The company is based in Austria and customers are allowed to make payments using debit cards/credit cards. A fee of 3-4% is charged on every transaction made with a debit card. The company is known for its excellent customer support. The only issue is it’s not available worldwide. Its services are only available to the residents of European countries. Buying bitcoin with debit card from BitPanda is more or less similar to all other exchanges.
- Register yourself on BitPanda’s website.
- After registration and submitting proof of identity you need to wait for your account to be verified.
- Once verification of your account is done, you can select the amount of bitcoin you want to purchase.
- Add your payment method and enter the debit card’s details.
- Click continue to proceed with payments.
- Enter your blockchain encrypted account number of your wallet to get your bitcoins transferred to your e-wallet account.
- BitPanda offers the most competitive pricing structure for all types of transactions
- It has a good reputation across Europe
Is Buying Bitcoin with a Debit Card the Best Method?
Buying Bitcoin with a debit card includes purchasing the coin on various exchanges — centralized, decentralized, P2P — with the money that you already own, and have stored into your account. This method has its benefits, as mentioned above — mostly the greater speed of purchase and the fact that you won't spend the money you don't have.
However, there are other payment methods worth considering. With credit cards, for example, the procedure is pretty much the same. However, you don't have to just use the money you already own, but can borrow from your bank as much as you want, or until you reach the limit.
With PayPal, it’s unlikely you will be able to directly deposit your payment into exchanges. However, you can use PayPal for BTC purchases on P2P exchanges, since the process has you sending payments to people directly, you can buy Bitcoin almost instantly at the usual 5% fee.
Lastly, there are bank transfers, which are likely the cheapest of the bunch — but, as mentioned before, these tend to last a bit longer.
Frequently Asked Questions
Bitcoin purchases with debit cards are available around the world, except in countries where banks are forbidden from servicing crypto businesses, such as in China.
Debit card purchases are safe, yes. Of course, in order to ensure that safety, you should only trade at well-known, reputable exchanges. Otherwise, you risk being scammed.
The crypto industry is only just starting to see regulation coming in, so scams are still prevalent. We recommend only using an exchange that follows regulatory frameworks to purchase bitcoins to avoid being scammed.
As long as you use a well-known platform, the biggest risk you face is that of losing your investment if the prices change suddenly. Therefore you should never invest money that you cannot afford to lose.
This depends on your bank and its stance towards the crypto industry. If you try to buy BTC without knowing how the bank feels about it, it might halt the transaction and even freeze your account. It is better to inquire first and know where you stand.
No, there is no such thing as instant Bitcoin purchases. Every Bitcoin transaction needs to be recorded on the blockchain, and the confirmation process lasts for at least 10 minutes, provided that the transaction has a high enough fee to be included in the next upcoming block.
This is completely up to you. You can spend them, trade them, or hold them and see if their value will grow.
Unlike traditional markets, the crypto market doesn't have open and close time. You can, therefore, buy BTC at any time of day and night.
There is no simple answer to this, as it depends on where you live, how much you are willing to spend on BTC, and many other factors. Rest assured — there are exchanges for every type of trader and investor. However, you might have to do some extra research to figure out the best option for you.
Unfortunately, no. Bitcoin doesn't work like traditional money, and as such, it cannot be withdrawn to a card. You can only sell it back for fiat currencies, and withdraw those to your card.