Buying Bitcoin with a Credit Card or Debit Card (Beginner's Guide)

Most crypto investors understand the benefits of owning Bitcoin. The common hurdle is the actual buying process. How do I buy Bitcoin? Can I use credit and debit cards? This is a common question in the crypto space.

Using a credit card or debit card is one of the quickest and most convenient ways of purchasing the Satoshi Nakamoto coin. This article explores Bitcoin in detail and guides new investors on buying Bitcoin with debit and credit cards.

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Here are the top reasons why Bitcoin is a good investment

● Bitcoin is a "trustless" system

Bitcoin does not have a central authority or issuer and uses blockchain technology to record and authorize transactions. Powerful computers or "nodes" verify and confirm transactions, which can't be altered once recorded in the public ledger. This is why Bitcoin is "decentralized" - it is not controlled by any central bank.

● Bitcoin is secure

Bitcoin transactions are encrypted within a blockchain and secured with cryptography, making it impossible to hack.

● Built-in scarcity 

BTC is capped at 21 million coins. Investors are clamoring for a piece of the pioneer cryptocurrency. As the supply declines and demand increases, the value is poised for growth.

● Bitcoin has high liquidity

The vast number of brokerage firms and crypto exchanges makes Bitcoin highly liquid. You can instantly exchange it for cash or assets like gold at low fees. It is an excellent investment for short-term profit or long-term benefits.

● Bitcoin is highly speculative

The price of Bitcoin is extremely volatile and subject to large fluctuations. Experienced investors who understand the market's nature can take advantage of this volatility and use margin to realize significant profits.

Step 1:  Explore The Payment Options

The process of buying Bitcoin can be complicated for the non-initiated. Numerous Bitcoin payment options make it even more confusing. Below are some payment methods you can use to purchase Bitcoin.

     ⭐ Credit card or Debit Card

Most crypto trading exchanges allow you to fund your account with a credit card or Debit Card. But charges can be steep, ranging between 1.5% and 3%.

     ⭐ PayPal

PayPal is a common way of buying Bitcoin on Coinbase or LocalBitcoins. Also, you can buy crypto on the PayPal platform. PayPal allows users to invest as little as $1 in Bitcoin, but it's not transferable to other accounts.

     ⭐ Buying Bitcoin with other cryptocurrencies 

You can also exchange or trade Bitcoin with crypto assets stored in a digital wallet or exchange. But you have to find platforms that allow you to exchange Bitcoin with other crypto assets.

     ⭐ Bitcoin ATM

These ATMs allow you to buy Bitcoin using cash and transfer them to your crypto wallet. Using a Bitcoin ATM is easy, and is becoming a popular option in Australia. Currently, there are over 50 Bitcoin ATMs in the country.

As mentioned, buying physical Bitcoin at an exchange requires a wallet for storage. Various wallets are available for mobile, desktop devices, and external storage devices.

Step 2:  Know the popular ways to "Buy" Bitcoin

There are two main ways of investing in Bitcoin: buying spot Bitcoin and Bitcoin derivatives, such as trading CFDs (Contract For Difference). Buying is also referred to as "going long," while "going short" means to sell.

Buying the actual Bitcoin is not the most suitable way of making it in the crypto market. In fact, it has a couple of disadvantages, including funding restrictions and high transaction fees. In addition, it is prone to hacking, and you can't make money when the market falls.

The crypto derivatives space is moving to fill the space, enabling traders to buy and sell cryptocurrencies at a lower cost. As a result, it has experienced rapid growth.  The cryptocurrency derivatives market is worth 2 million U.S. dollars and is expected to proliferate by the end of this year.

Step 3:  Where to buy cryptocurrency with a credit/debit card? 

Now let's explore platforms that allow you to buy cryptocurrencies using credit and debit cards.

Bitcoin derivatives Broker that Accept credit/debit card

The fastest way to buy Bitcoin with a credit card is to trade Bitcoin derivatives. This means trading contracts, such as CFD, Futures, and Options. This method allows investors to speculate on price and jump into the market fast, just like in stocks.

Buying BTC with credit/debit cards is easy on Mitrade. The platform also offers other convenient purchase methods such as wire transfers, bank transfers, Visa/MasterCard, POLi, and Skrill/Neteller.

Mitrade is an ASIC-regulated Forex broker based in Australia that provides 300 popular instruments, including cryptocurrency; the others include forex, indices, U.S. shares, and commodities.

Investing in Bitcoin derivatives requires relatively small capital and leverage (Bitcoin is from 1- 10). For example, you can use 1:10 leverage to buy 0.1 Lot BTC ($406 based on the current price).

1. Coinbase

Coinbase is a top-rated global broker. It is available in Australia and offers instant transactions. Bitcoin purchases are subject to a fee of 3.99% per transaction. The exchange offers dozens of major coins, including Ethereum, Bitcoin Cash, XRP, and EOS. Coinbase boasts top-notch security that ensures your crypto assets are safe. Besides Debit cards, you can also use bank accounts, Google pay, and bank wire payment methods.

2. CoinSpot

Established in 2013, CoinSpot is a well-known cryptocurrency exchange based in Australia. It comes with an array of features, including an intuitive and easy-to-use interface. They avail over 100 crypto coins for trading, including BTC, Ethereum, and Litecoin. In addition, CoinSpot supports over-the-counter trading.

3. CoinJar

CoinJar is an established cryptocurrency broker in operation since 2013. Users can buy and sell cryptocurrencies using iOS and Android apps and other trading applications. CoinJar supports buying digital currency instantly using MasterCard and Visa debit and credit cards. In addition, it allows users to deposit Australian dollars using BPAY, Blueshyft, and PayID. What's more, you can link your bank account or the CoinJar app.

4. Independent Reserve

Established in 2013, Independent Reserve is a popular exchange in both Australia & New Zealand that offers cryptocurrencies buying. Payment Methods include EFT, Osko/PayID, POLi, and SWIFT. In addition, Independent Reserve has top-tier underground vaults for optimum security and data protection.

5. Coinmama

Coinmama has a worldwide presence and charges a 4.9%-5.9% commission fee for BTC purchases. The company has an easy-to-use platform for buying a range of popular cryptocurrencies using fiat currency. Coinmama allows users to buy and sell Bitcoin and Ethereum using credit cards instantly.

6. Kraken

Established in 2011, Kraken is among the globe's most established cryptocurrency exchanges. It is the largest in E.U. based on the average daily trading volume. Kraken is available in all countries and allows bank wire, SEPA, ACH, and SWIFT deposits.

Read more:  >>15 Leading Cryptocurrency/Bitcoin Exchanges In Australia

To buy or sell Bitcoin with a credit card instantly with Mitrade, follow these steps: 

◆ Enter the platform and create an account

To register an account, you need to click on the trading platform. You will get a demo account automatically with USD 50000 virtual funds. You can start to practice trading without any risk. 

- mitrade platform -

◆ Choose a deposit method

Deposit money once you are ready to trade in a live account. Mitrade provides multiple payment ways, with MasterCard, Visa, or bank transfer being the most recommendable.

- mitrade payment ways -

◆ Take your first position

After you succeed with the deposits, you can start your trading. You should analyze the bitcoin price, and decide to buy or sell. I place a Buy order in Mitrade, the mini deposit is 0.01Lot,  I control the leverage as 1X, at the same time, you can also set up the Take Profit, Stop Loss, and the others. 

- place a buy position on mitrade - 

◆ Why Choose MiTrade？

Mitrade is an ASIC-regulated CFD broker focused on online trading in over 300 global markets. It has a simplified mobile app and web-based trading platform that allows you to start trading anytime, anywhere, with low spreads and fast execution.

FAQ

●  What are the Bitcoin trading conditions on Mitrade?

Each market on Mitrade displays important information) such as leverage, margin, fee, spread, trading period). Visit the Mitrade trading app to view.

*The above data may change with time. For the latest market data, please go to the Mitrade trading platform.

●  When is the best time to buy Bitcoin？

The unwritten rule in trading is purchasing an instrument cheaply and selling it at a high price. Sometimes the condition is more complicated than it sounds. Finding the best time to buy is tricky and even more difficult with cryptocurrencies which are more volatile than stocks.

If you intend to invest in crypto, you should believe in its potential and be willing to commit to it for years. 

If you prefer short-term trading to make money quickly, you should opt for day trading, which means you trade on small price movements. In other words, buy on dips and sell on rallies within a day. 

Trading is a risky venture, and you might lose more money than you earn.

●  Is it possible to buy Bitcoin using a credit card anonymously?

Buying Bitcoin anonymously with a credit card can be pretty much tricky. Most Bitcoin exchanges demand customers to give comprehensive identity verification (KYC) before utilizing a credit or debit card. This is owing to governments' anti-fraud security measures. However, you can trade privately or use peer-to-peer platforms like Paxful and LocalBitcoins which allow users to buy Bitcoin anonymously but at a higher fee.