Can you buy Bitcoin with a Credit Card?

Bitcoin is the most popular type of cryptocurrency and can be bought with credit and debit cards. Cryptocurrencies convert ordinary text into unreadable text in order to ensure that transactions are secure. 

How do I buy Bitcoin with a credit card? 

Buying Bitcoin with a credit card involves a multistep process, involving a digital platform called an exchange. Exchanges are like digital brokerages and facilitate the sale and purchase of Bitcoin. Coinbase and Coinmama are examples of popular exchanges.

You also need to create a virtual wallet in order to buy Bitcoin. A Bitcoin wallet is a software where Bitcoin is stored. It doesn’t store Bitcoins exactly but rather the private address (key) that keeps them secure.

To buy Bitcoin with a credit card:

1. Choose an exchange platform and log onto it 
2. Select the amount of money you want to spend and the amount of Bitcoin you want to purchase 
3. Create a virtual Bitcoin wallet 
4. Input your card details into the exchange 
5. Have your Bitcoins sent to your wallet 
6. Wait for your Bitcoin wallet to reflect the transaction

What are the pros and cons of buying Bitcoin with a credit card?

Using a credit card to purchase Bitcoin is an extremely easy process, allowing you to buy Bitcoin even when you’re strapped for cash. With a rewards card, you can also obtain benefits for buying Bitcoins, which can be large purchases. However, most exchanges have credit card fees (for example, Coinbase has a 3.99% fee), are notorious for scamming and can cause you to overspend. 

What are the alternatives to Bitcoin exchanges? 

The two most popular alternatives to Bitcoin exchanges are Bitcoin ATMs and Peer-to-Peer exchange platforms. Bitcoin ATMs are similar to regular ATMs, where you enter your credit or debit card into a physical ATM. However, instead of getting cash in hand, your Bitcoins are sent to your virtual wallet. Peer-to-Peer exchange platforms are exchanges that facilitate more direct connections between users. Users can create an account and provide details about pricing or how much they want to buy, thus choosing whom they want to transact with. Although they aren’t anonymous, they allow you to look around for the best deals.

What are some tips for buying Bitcoin with a credit card?

1. Research your exchange thoroughly before committing to it and make sure that it is legitimate 
2. If you want extra security, use a hardware wallet 
3. Consider the best payment method for your exchange. Sometimes some payment methods have highest fees than others