Nowadays, people tend to buy Bitcoin with a debit card due to a smooth and hassle-free process. Since there is no central bank controlling cryptocurrencies, it’s important to understand that each provider chooses its own fee rate. Also, the process to buy Bitcoin with a debit card depends on the crypto exchange or trading network chosen. Importantly, when users want to buy Bitcoin with a debit card it is a requirement to have a Bitcoin wallet.
Additionally, for beginners and both veterans, it has become simple to buy Bitcoin online using a debit card or a credit card payment method. Actually, it is more convenient, particularly when purchasing small amounts. With some sites, the process is instant, while others may take a little while to transfer the BTC. However, on some sites, it takes a few days to complete the transaction.
How to buy Bitcoin with a debit card instantly
An increasing number of people are turning to digital currencies now. Remarkably, the process to buy Bitcoin with a debit card instantly has become hassle-free. The method has become secure, straightforward, and all costs are transparent.
Initially, there are requirements that have to be followed when you want to buy Bitcoin with a debit card. Firstly, when you want to buy BTC, the debit card should be in the name of the customer. Users are not allowed to make an operation using a friend or a family member’s card. Here are some facts to consider when buying BTC with a debit card:
- Purchasing limit with a debit card
- Verify if the exchange supports the type of debit card you are using
- Cryptocurrency regulations within your jurisdiction
- How much private information you want to disclose (verification processes differ)
- Extensive research on the crypto exchange
How to buy Bitcoin with a debit card instantly
In this day and age, it has become easier to buy Bitcoin with a credit card instantly. Moreover, the fees charged on most exchanges are relatively low. Notably, customers can buy Bitcoin with a credit card instantly from any trustworthy place across the globe at any time.
Similar to when you want to buy Bitcoin using a debit card, a verification process is also required when you buy BTC with a credit card. Furthermore, to buy Bitcoin with a credit card instantly customers can use various fiat currencies. These include all the major fiat currencies, such as USD (US Dollar), Euro (Euro), JPY (Japanese Yen), RUB (Russian Ruble), AUD (Australian Dollar), and many more.
Buying Bitcoin with a credit card will enable you to pay later, similar to the fiat credit processes. Most exchanges now offer seamless services for people who want to buy Bitcoin with a credit card. However, you need to check whether the provider is secure and check the underlying fee before you decide where to buy.
Verification process when buying Bitcoin online
Creating an account
When you want to buy Bitcoin online, the first step is creating an account by adding your details. Know Your Customer (KYC) regulations require crypto exchanges to know their customers. Users are advised to enter the correct details then connect their debit card to the crypto exchange offering the services. Thereafter, enter an amount you would like to spend and the cryptocurrency amount you would like to buy. Moreover, in order to purchase BTC, the customer should have a valid and trusted crypto wallet to store the cryptocurrency.
ID verification process
Users will get their accounts verified before they buy Bitcoin online. Unfortunately with exchanges such as Coinbase, users cannot bypass the ID verification process. Depending on the exchange, one can upload either a driver’s license, passport, and a photo ID.
During the verification process, there is a need to make sure that the photo is clear. The text on the document should be readable. Also, some verification processes even require a selfie. Meanwhile, verification time processes differ. Some exchanges take 10 minutes of verification for level one while some take 6 hours on average for level two and three verifications. On the other hand, exchanges can also take between 24 and 72 hours for confirmation.
Depending on the exchange, users can receive the purchased Bitcoin instantly or after a while. Please ensure that your Bitcoin address is correct as all transactions are irreversible and it will not be possible to change the address later on.
Where can I buy Bitcoin with a debit card?
Firstly, BTC can be bought using a debit card from an ATM at convenient locations. Similar to receiving cash at the end of the transaction, BTC will be sent to your wallet. They’re especially beneficial for unbanked people to gain access to cryptocurrency.
Even more, transactions on Bitcoin ATMs are convenient for travelers and they occur in real-time. Additionally, the process of buying BTC on an ATM takes less time. Below are the advantages and disadvantages of using an ATM to purchase BTC.
|Rapid and easy way to buy BTC. Some Bitcoin ATMs support a 15-second operation — from scanning your Bitcoin QR code to clicking “send”.||Bitcoin ATMs charge high transaction fees due to added expenses for machine maintenance, rent, regulatory measures, volatility, and other costs.|
|Some ATM machines do not require any form of verification. Thus, transactions are anonymous.||Being exposed in public, using an ATM is not suitable for larger transactions.|
|No bank account required.||Due to restrictions, Bitcoin ATMs are only located in a few areas across the globe.|
Various crypto exchanges and social trading networks also accept debit cards for purchasing BTC. Below are some of the examples:
- Coinbase Crypto Exchange
Coinbase is one of the most popular digital asset trading platforms. It is based in San Francisco. Additionally, the Coinbase exchange supports over 100+ countries. The crypto exchange has a user-friendly interface that makes it easy for newcomers to buy Bitcoin online.
Buying bitcoin with a debit card is a popular payment method on the Coinbase crypto exchange. Moreover, the service is only accessible in geographical areas that include the United Kingdom, the United States, Canada, Europe, and Australia.
All those that want privacy in their transactions might have to consider other crypto exchanges. Coinbase requires additional information than other exchanges. Despite that, if a debit card is used in Coinbase, delivery of bitcoins is instant once ID verification has been completed.
|Offers instant buy option with a debit card||Coinbase is able to track how you use your BTC, therefore reducing privacy.|
|User-friendly for beginners||Purchases done through a bank transfer can take up to 5 days.|
|High liquidity and buying limits|
- Coinmama Crypto Exchange
Coinmama crypto exchange was launched in 2013. Remarkably, Coinmama is among the first exchanges to accept debit cards when purchasing Bitcoin. The crypto exchange serves 195+ countries across the globe. Upon payment, the crypto exchange delivers cryptos to the wallet immediately.
Coinmama offers high limits when you choose to buy Bitcoin with a debit card. The crypto exchange offers a limit of $5,000 worth of BTC per day. Furthermore, it allows the purchasing of $20,000 worth of BTC per month. Transactions at Coinmama are exclusively between the client and the exchange. Notably, Coinmama sells cryptocurrencies out of its own personal inventory. When you buy Bitcoin with a debit card, Coinmama charges a 5% momentum fee. Moreover, the exchange delivers BTC directly to the user’s wallet.
|Services available in 195+ countries||Offers high fees when users buy Bitcoin with debit cards|
|Offers high limits for buying Bitcoin with a debit card|
|Fast and responsive customer service|
eToro also supports users who want to buy Bitcoin with debit cards. It is a well known regulated broker and exchange. Similar to most exchanges, the client has to first register and create an account with eToro. The social trading network has partnered with Simplex in order to maintain transaction security.
|User-friendly interface||The exchange does not allow crypto deposits|
|Offers low fees and high limits|
- CEX.io Crypto Exchange
Among the exchanges that allow users to buy BTC with debit cards is the CEX.io exchange. Users can become a crypto owner in just minutes. The exchange allows quick purchases of top cryptocurrencies when using a debit card. Overall, you can buy bitcoin with a debit/credit card instantly. The whole process for purchasing crypto on CEX.io only takes 5 minutes. In order to secure your account and funds, the exchange strongly recommends enabling 2FA.
Following then, users can select any of the supported cryptocurrencies to buy and the fiat currency to pay with. The minimum amount you can spend is 20 USD/EUR/GBP. The calculated purchase amount includes a commission for the service.
|Competitive fees including 0.2% trading fee||Extensive verification process which takes longer|
|Supports many countries and regions||GBP market lacks liquidity|
|Trusted exchange||Limited countries available|
|Relatively high exchange rates|
- BitPanda Crypto Exchange
The first step before you buy Bitcoin with a debit card on BitPanda is to create an account. Secondly, you must select Visa/Mastercard since you are buying Bitcoin online. Then, select the amount of crypto that you want to buy.
|Low fees||Better suited for EU customers|
What is more, popular cryptocurrency exchanges such as Binance, Huobi, and OKEx also permit users to buy BTC with debit cards.
International restrictions in buying Bitcoin with a debit card
Purchasing cryptocurrencies differs in various countries. However, in general, when buying bitcoin online, most services will ask you to provide all personal and customer documents in accordance with the AML policy and international KYC requirements.
Following the rules and regulations of the EU and the US, it is now required for all platforms to verify their users’ identities before a transaction is started. To clarify, it is now mandatory for all licensed cryptocurrency exchanges to operate with a specific set of guidelines
Residents from the USA should provide some additional details like state, zip code, and SSN. Users from the UK should additionally provide their last name, date of birth, address, and postcode.
24/7 live support system
Crypto exchanges offer 24/7 support either through calls or emails for customers buying BTC. In the event that a customer needs assistance, an all-around clock global support is offered. A team of experts works around the clock to provide an efficient resolution.
Types of debit cards accepted for purchasing Bitcoin
Before making a purchase, it is required to have knowledge of the types of debit cards accepted by the crypto exchange. The most common types of debit cards accepted to buy BTC include Visa, Mastercard, and American express. More so, when using a debit card the money is deducted directly from the account.
This year, PayPal launched a crypto trading platform for the US community, as well as accepting Bitcoin. PayPal obtained a conditional cryptocurrency license from the New York State Department of Financial Services (NYSDFS), commonly known as the BitLicense. Moreover, users can purchase Bitcoin directly through PayPal. However, they are not able to use the coins outside of its platform.
Processing fees when buying Bitcoin with a debit card
Coinbase charges a flat 3.99% fee on all purchases via debit card, which is among the lowest for European and US customers. In detail, users can purchase $150 or €150 of BTC per week using a debit card. Furthermore, verified US residents can transact up to $25,000 in a day. However, they have to verify their phone number, photo ID, and personal information.
Conversely, Coinmama charges a 4.9%-5.9% fee due to the risks and processing fees that come with credit and debit card payments.
CEX.io offers packs of crypto in commonly purchased amounts at set prices. These prices are calculated at the current market rate and frozen for 120 seconds to mitigate the risks connected with price fluctuations. Moreover, the exchange offers a low 0.2% trading fee.
When using BitPanda, in the “Current Price” field, you can also see the exchange rate you are getting. It will likely be 3-4% above the market rate since BitPanda’s fees are included in the exchange rate. Additionally, users have 60 seconds to lock the exchange rate and confirm.
At Paxful, vendors can set their own rates and decide their margins. Select the offer that suits you the most while buying and create offers that have the best chance of converting.
For transaction fees, eToro charges 1% and an additional 4% is charged by Simplex on debit card purchases. Thus, the overall fee per transaction is 5%.
Pros and Cons of buying Bitcoin with a debit card
Seamless services: Buying BTC using a debit card is very easy and fast. Similarly, when shopping online, using a debit card does not require much technical stuff. Hence, it’s user-friendly for both beginners and veterans.
Elimination of the middleman: Purchasing BTC with a debit card does not require an intermediary. After the payment, BTC will be transferred to the customer’s wallet. Therefore, there is no need for a third party.
Real-time charges: When you buy Bitcoin with a debit card, prices are charged in real-time.
Rewards and benefits: These are offered when you purchase BTC using a debit card. However, it depends on the specific debit card and the rewards being offered.
Buying limit: Customers can only purchase smaller amounts of BTC when using a debit card. There is a stipulated amount depending on the crypto exchange. The daily and monthly purchase limit is lower when you buy Bitcoin with a debit card.
Security: Some exchanges are unregulated. This means that they are not permitted to sell or operate in specific countries. Users have to research first and learn if the exchange is regulated in a specific jurisdiction. Moreover, be careful as sketchy companies will collect card information from users in order to hack funds.
High fees and low purchase amounts: When buying Bitcoin online with a debit card, fees are higher due to transaction fees added. Moreover, users are only permitted to purchase lower amounts of BTC.
Scams and fraud: In order to buy BTC using a debit card, one has to use an exchange. The exchange will then convert the fiat currency to BTC. However, there is a need to verify if the crypto exchange can be trusted. Some exchanges are scams that may steal card information from clients. Hence, the need to thoroughly research if the exchange is legit.
Fake chargebacks: These lead to the majority of scams when purchasing with a debit card. In this case, users receive BTC, and later on, a payment reversal from the debit card is initiated.