Buying Bitcoin with credit card or PayPal: an overview
How can you become a Bitcoin trader/investor?
To facilitate your entry into the world of cryptocurrency, there are several crypto trading platforms and online crypto exchanges, and brokerages from which you can purchase bitcoin and start trading. A verified and reputed platform is all you need for a safe transaction. 1kdailyprofit is one such reliable and user-friendly site that has helped hundreds of traders and investors make their foray into the crypto arena a profitable one.
Once you select the crypto exchange from where you want to conduct crypto trading, you have to register your mode of payment to set up your account. It includes the submission of your id-card such as your driver’s license and other documents like your proof of address and passport. The number of documents required for verification varies for different portals. You can make your payments by providing your bank details from where the amount against which you buy cryptocurrency is withdrawn. Credit card, PayPal or debit cards – these are the payment options you have.
Buying Bitcoin with a credit card
Bitcoin can be purchased with a credit card but both the credit card issuer and the crypto exchange from where you conduct your transactions must allow you to use the credit card option. Even if you have permission to pay through your credit card, it is generally not advised as it can be very expensive. Each transaction is considered an advance payment so you end up paying more. Also, your trading platform may charge extra on the usage of credit cards. Altogether, the expense incurred is rather prohibitive in using credit cards for cryptocurrency transaction payments. Not all exchanges accept credit card payments and even if they do, mostly, Visa and Mastercard are allowed. Some exchanges that allow transactions with credit cards are eToro, Binance, and Coinbase.
If you do buy Bitcoin with a credit card, the steps are similar to when you use other payment modes including identity verification. Only, you will be depositing the funds from your credit card.
Purchasing Bitcoin with PayPal
PayPal is one of the pioneers of digital commerce on the global scene for the last two decades. Its technological innovations have helped people gain access to the global economy. PayPal enables them to make payments that are safe and convenient for all types of financial and commercial services. Like in other sectors, PayPal offers its services in the crypto market too. Payments to buy your cryptocurrency can be made with PayPal.
Not all crypto trading online sites accept PayPal as a mode of payment but there are several platforms that accept this mode of payment. So, you need to find them. Also, if you wish to buy Bitcoin with PayPal, you have to pay a sizeable fee to do so as buying Bitcoin with PayPal comes at a premium. But there are options to buy Bitcoin without paying a deposit amount.
Several crypto exchange platforms are available to US traders and investors where Bitcoin can be purchased via PayPal without the payment of an initial deposit. First, however, you have to open an account with that particular online site. Then, you accept PayPal as your selected payment choice. You can start trading right after you make a minimum payment of $10. For traders, who make payments with non-USD currencies, a minimal deposit of 0.5% has to be made. There are other cryptocurrencies on offer too that you can buy with PayPal and you can buy them according to your choice. Investing in varied cryptocurrencies is an effective way to mitigate your risks. If you incur a loss if a currency underperforms, it can be compensated with the profits from another cryptocurrency.
Benefits of using PayPal
- Transactions are processed faster
- Quicker withdrawals
- PayPal’s Purchase Protection for Buyers offers added security
- Login details are encrypted. It ensures that the username and password are not visible to the online platform.
There are several methods of safe and convenient payment methods that you can opt for when buying your Bitcoin. Each mode has its pros and cons. So, you must make an assessment after an in-depth analysis as to which will benefit you the most.