The cryptocurrency market seems to have entered a bit of a slump lately. Bitcoin’s price has dropped from an all-time high of $65.000 almost 50%. In the past two months, the price has been trending just above the $30.000 level, allowing investors to buy bitcoin at a discount.
One of the best ways to acquire some of the most popular cryptocurrencies on the planet is by using your credit card. In this post, we explore the risks of buying BTC with this method and will give you a comprehensive list of all the places where you can purchase BTC with your CC.
But first, let’s have a look at Bitcoin’s advantages and why you should even consider investing in it.
Why should you buy Bitcoin?
Bitcoin is a decentralized digital currency that has proven to be quite resilient over the years. Its value has been gradually increasing over the years, from a starting price of $0.03 to the current price of $30.000.
As such, it’s considered to be a great store of value to hedge against inflation. Moreover, bitcoin offers many advantages as both an investment asset or a digital currency for exchanging value over the internet, including:
- Financial freedom – bitcoin is decentralized, which means that you are the only one that is responsible for your funds. And because there’s no central governing body behind the bitcoin network, no one can shut it down or revoke access to your funds.
- Cheap remittances – bitcoin is borderless and needs no intermediaries to register transactions. Without expensive trusted parties like banks in the middle, international bitcoin transactions are fast and cheap, especially compared to their FIAT counterparts.
- Steady long-term returns – bitcoin is a deflationary currency with a fixed maximum supply of 21 million coins. This means that over time, bitcoin becomes more scarce, and with the increased demand and popularity, its price constantly rises in the long term.
What is KYC and why do exchanges require it?
Before you purchase Bitcoin with your credit card, you will most likely face what is known as a “Know Your Customer” procedure, or KYC. Only regulated exchanges can sell bitcoin for FIAT money, and credit cards fall in this category.
To comply with regulations, exchanges must require the identity of anyone trying to purchase cryptocurrencies on their platform. This usually includes the name and address of the individual. Moreover, exchanges usually require that this data is supported by a recent copy of an ID document such as your passport or driving license and/or a selfie while you create your account.
These procedures are required so that governments and law enforcement agencies can track that Bitcoin is not used for money laundering schemes, funding terrorism, or other criminal activities.
In any case, if you wish to buy Bitcoin with a credit card, you will have to undergo a thorough identification process. Consequently, you should have some ID documents on hand to make the procedure as frictionless as possible.
Buying Bitcoin with a credit card – best options
There are many different ways to acquire Bitcoin, but credit cards remain some of the easiest and beginner-friendly methods out there. All you have to do to buy BTC with a credit card is to create an account on one of the different types of platforms depicted below and follow the procedure.
With that said, it’s almost obligatory to have a Bitcoin wallet prior to making your purchase. There are different types of wallets, serving different purposes, offering various levels of security. In our example, we will assume you are using a mobile wallet, like the Exodus wallet.
Cryptocurrency exchanges
Centralized cryptocurrency exchanges are arguably the most popular way to speculate on the price of bitcoin. But did you know that they allow you to buy BTC with a credit card as well?
The procedure is quite simple – just create an account on the crypto exchange of your choice that supports FIAT currencies. Then follow the instructions to buy your BTC with a credit card.
Worth noting is that when you purchase Bitcoin on a crypto exchange, your coins will be kept on an online wallet, controlled by the exchange. To regain custody of your BTC, you should immediately withdraw them onto your previously created Bitcoin wallet.
Popular exchanges that accept credit cards include Binance, Kraken, and Coinbase.
Crypto brokers
Crypto brokers are platforms that sell a small selection of cryptocurrencies and accept a wide variety of payment methods, including credit cards.
Simply create an account, follow the ID procedure and order your BTC. The main advantage here is that they will send you your coins directly to your wallet.
Popular brokers are Paybis, Coinmama, and Kriptomat.
Bitcoin ATMs
Finally, if you are lucky enough to have a Bitcoin ATM in your proximity, these machines are some of the best ways to buy BTC with a credit card. They function like regular ATMs, only instead of cash, you get BTC!
What’s great is that for lower limit purchases, they won’t require an extensive KYC procedure, as in most cases just a phone number will suffice.
Conclusion
Bitcoin is a great asset to accumulate, because of its ever-appreciating value. Buying BTC with your credit card remains one of the easiest ways to enter the cryptocurrency market and take part in the financial revolution that is happening as we speak.