Bitcoin is one of the world’s most successful cryptocurrencies. As a result, investors have to seek places they can use to purchase this virtual currency. Many exchanges such as Binance, Coinbase, and eToro offer investors a place to buy this digital money. Such sites allow investors to purchase Bitcoin with USD, their national currencies, or debit and credit cards. Here is what you should know when purchasing this virtual currency with a credit card.
Create an Account
Creating an account is the first step Bitcoin users will need to buy with a credit card. When creating an account, the Bitcoin user must sign up with an email and password on the exchange. On top of that, some crypto exchanges require their users to pass the Know Your Customer process. So, when the Bitcoin user has created an account, signed up, and has passed the Know Your Customer process, they are ready to use the crypto exchange to purchase this virtual money with a credit card.
Create a Wallet
After creating an account with a reliable and reputable exchange, one has to set up a wallet. However, some crypto exchanges come with a wallet that links to the platform. Purchasing this digital money with a credit card will be deposited into the linked wallet. However, if an exchange does not have an inbuilt wallet, you must create one separately.
The third process of purchasing this digital currency with a credit card is buying Bitcoin. While purchasing, the Bitcoin user must indicate the total credit number, the expiration date and the CVV code.
Once the Bitcoin user has provided the exchange with these details, the user will input the number of Bitcoins they want to purchase. Moreover, one can buy amounts less than 1 BTC because this digital money is divisible up to 100 million units. Perhaps you may use Bitindex Prime to trade using bitcoin as it is a reliable trading platform.
Amount of Money Involved when Purchasing Bitcoin with a Credit Card
Buying this digital currency with a credit card is fast and easy, but it can also be pretty expensive. In the end, several fees can contribute to the cost of your transaction, including the credit card issuer and the Bitcoin exchange broker.
Various charges that contribute to credit card transactions being expensive include:
- Your preferred exchange to buy this virtual currency with a credit card will charge its transaction fee
- There are card issuers that view a Bitcoin purchase as a cash advance. As a result, your purchase will incur a cash advance fee and attract high-interest rates.
- Other times, as a credit card holder that wants to purchase this digital money using it, you will be requested to pay a credit card surcharge. The surcharge will apply on top of any other fees charged.
How safe is it to Purchase Bitcoin with a Credit Card?
The security of purchasing this digital currency with a credit card relies on how secure the Bitcoin exchange is. So, before settling on any crypto exchange, read its reviews to determine if its services are reliable. On top of that, check the exchange rates and your interest rate too.