In 2009, Bitcoin made its entrée a unique trading asset. Since then, it has been getting more traction in the news and media. Over the past few years, Bitcoin has been going up and down; but now appears set for continued success. For more information about it, visit Bitcoin Smarter.
As Bitcoin becomes increasingly popular, its use in online purchases also increased.
Credit cards are widely used by consumers. But there are still many who aren’t aware of how they can be used to buy cryptocurrency online.
However, this isn’t mind-bending as long as you know the proper way. You can buy bitcoin with your credit card, but you should consider the fee structures of the bank and the crypto trading exchanges you are using.
Gone are the days when buying Bitcoin using your credit/ debit card was a nut-cracking job!
Things to dwell on before using a credit card for buying Bitcoin
- Do your thorough research to validate the data privacy protocols of the exchange you want to deal with. Ensure that the trading exchange is regulated and has a good track record. The reputation and history of that exchange do matter.
- You would not want some sketchy crypto exchange to steal your credit card details- and make purchases on your behalf.
- You need to know how your credit card company deals with Bitcoin purchases before making any decisions.
- In some cases, bitcoin purchases are treated differently than other online purchases. Credit card companies may lower credit limits or even close accounts if customers purchase cryptocurrencies.
- Bitcoin is highly volatile; sometimes, its value goes down instead of up. If that happens, you might owe more on your credit card purchases made using bitcoins than they are actually worth.
- It’s not recommended for most people to buy bitcoins using their credit cards because they are too risky and expensive. You are going to take some big chances when doing something like this.
How to Buy Bitcoin With Credit Card
It’s important to remember that cryptocurrencies aren’t regulated by any government authority. So investing in crypto may be risky. But if you’re looking for a fast, safe, and convenient way to buy bitcoin, then this method could be worth considering.
Get a Crypto Wallet
Most cryptocurrency traders and exchanges offer free crypto wallets. The setup of a wallet is precise. What is worth considering is keeping the credentials of your crypto wallet safe.
Once the wallet is set, you are good to go for the next step.
Verify your Identity
Some crypto exchanges may require identity verification on purchasing cryptocurrency worth above $100.
As with other online purchasing, simply respond to the authentication process of your credit card company for a secure transaction.
Tracking your Order
You need to monitor the status of your crypto order online from the moment you place an order for it through its delivery into your digital wallet.
And with your Bitcoin lending in your wallet, you have all the freedom of managing your cryptos as investment, trading, or spending them.
Bitcoin Rewarding Credit Cards
Interestingly, there are credit card providers that offer rewards on purchasing Bitcoin. Here is a quick peek:
BlockFi Credit Card
BlockFi offers a great deal of flexibility with its Bitcoin rewards program. You can earn more bitcoin rewards if you spend more money.
SoFi credit card
SoFi was the first financial services firm to offer customers the ability to redeem reward points directly into cryptocurrencies.
Brex credit card
Brex Credit Card is for merchants. Every time you redeem 10,000 Brex Points for Bitcoin (BTC) or Etherum (ETH), $7 worth of BTC or ETH will be added to your wallet.
Venmo credit card
Venmo users can now use their cashback rewards to purchase cryptocurrencies without paying transaction fees.
Crypto.com rewards Visa
Depending on which card you choose, crypto.com may offer a different reward percentage for every card.
Experts recommend using other modes of payment than using a credit card. You can use a credit card to purchase Bitcoin, but you will pay fees along the way. Dollar-cost averaging is a smart strategy, but it may not help you if you buy too much or too little. Other methods also exist to earn rewards for cryptocurrency purchases so, crypto rewarding credit cards are not the only way.