Do you want to purchase Bitcoin with a credit card?
Well, if yes then the following post by smart bitcoin investments empowers you to use your credit card in an easy and hassle free manner.
- Although, most of the cryptocurrency exchanges offer credit/debit card payments, yet signing up becomes quite a lengthy and herculean process before you actually are able to buy/sell bitcoins.
- It seems that there is a list of other formalities like fulfilling the requirement associated with ‘Know your customer’ (KYC). Since, this is a time taking process which in most of the cases takes weeks.
- There is always an increasing danger of using your credit card for Bitcoin related payment, due to the threats associated with hacking related activities.
However on other hand, it is true that we use credit cards for our daily use especially while purchasing so many essential items. However, many of the times your credit card company doesn’t allow you to purchase Bitcoin, yet there are few exceptions, where you can actually use your credit card.
Coinmama, Bitpanda, Cex.io, Bitstamp etc are the perfect platforms for you to purchase bitcoins.
There working methodology of using credit card for buying Crypto
Pay a transaction fee
While you use a credit card for cryptocurrency exchange you have to understandably pay a transaction fee
Pay cash advance
When the transaction is associated with cash advance, you will be paying a cash advance fee as well. The usual advance fee is $5 or 10% of the total transaction amount. (whichever holds a greater value). For example, if you are purchasing $1,000 of cryptocurrency, then you are liable to pay $100 as a fee to the credit card issuer.
Foreign transaction fee
If the crypto currency is not in US, then you are liable to pay a foreign transaction fee which is normally 3% through your credit card
Other than that, you also face the limit to the extent of cryptocurrency you can actually purchase. You can know your actual limit while going to “Account Settings” after you have logged in.
Your credit card information is at risk
Do you know that various cryptocurrency exchanges know how easily you can fall prey to their nefarious design as you are already crazy to earn huge profits? This is where they find it easy to cheat on you. Hence, you need to ensure credit card fraud protection on your credit card. However, still you need to be very alert towards choosing the specific payment method.
Let’s now talk about buying Bitcoin with Credit Card with the lowest fees
Bitstamp is a crypto trading exchange which was founded in 2011 It is centered in Luxembourg.
Method at which Bitstamp work
- After registering for an account and getting the necessary formality of verification done, customers can purchase BTC through credit card. It is to note here, that it offers a pretty long verification process where users have to provide complete list of information such name, email address, residence proof along with a ‘scanned photo –ID’
- So, as the verification process is achieved, users are able to make the payment through credit card.
- The exchange also works towards trading Bitcoin Cash, Ripple, Litecoin along with Ethereum.
- If you have completed the complete verification process, then you can purchase Bitcoins values of up to 5,000 EUR/USD on a daily basis. Or if you consider monthly, then it amounts to 20,000 EUR/USD per month.
One of the associated charges which you can’t overlook at the time of purchasing through your credit card is the fee of 5%. In short, you have to pay a Bitstamp fee of 5%. Here, it is important to mention that you may be subjected to an additional fee if you use Visa or MasterCard.
What is the level of safety linked with Bitstamp?
Talking about the volatile market condition, Bitstamp can be considered as one of the safest exchanges. The team seems to be very serious in terms of ensuring its safety where 98% of the funds are done offline. While talking about online funds, they are completely insured against concerns like theft.
Although, it did report of a hacking activity way back in the year 2014 and then in 2015, but it did a remarkable job while dealing with the issue by adding more security features in the minimum possible time.
Likewise, it added SMS-text alert service to warn customers in case of any hacking activity where it ends the possibility of repetition with respect to the same mistake.
The transparent functioning of the exchange is in itself reflective of the fact that it gives so much importance to the safety and security aspect. It is operating with a vision and it has ensured that it has completed all the formalities associated with paperwork when it comes to taking required permission from relevant authorities as it has become a fully licensed first ever crypto exchange by a European nation.
Finally, the post tells you the proper method of buying bitcoin with a credit card with the lowest fees. We have covered details relevant to what kind of exchange will be suitable for you based on the minimal low fee associated with the same.
Although, everyone looks for an exchange where by using a credit card to buy Bitcoin can become safe, easy, cheap and quick, yet it is also true that you may not find all the facilities or qualities at a single place, where Bitcoin is also not an exception.
It has become an obvious choice as it doesn’t store much funds in the online mode. Therefore, if you are looking for a crypto currency which consists of more trading features where you equally have to pay less fees, then it has become obvious choice for many. Although, it is true that the verification process of Bistamp may be longer when you compare the same with other exchanges, however it is also true that you get worth the value if you actually wait for it.