Since it was created a little more than ten years ago, Bitcoin has gained a lot of popularity. In 2010 and 2011, hardly anyone was intrigued by the world of cryptocurrencies. But right now, it appears like everyone is moving toward the digital coin. Given this, a lot of individuals are interested in learning how to purchase Bitcoin using a prepaid card.
Prepaid cards are a clever method for customers to use their own money to pay for goods and services. Prepaid cards are now available for use with cryptocurrency.
We’ll go through where and how to buy Crypto with prepaid card in this step-by-step guide. It’s simpler than you may think, and there are a number of trustworthy cryptocurrency exchange platforms to pick from.
Where to Buy Bitcoin with a Prepaid Card
Prepaid cards are now being used to buy Bitcoin by a growing number of consumers. The number of services that enable purchasing Bitcoin with a prepaid card has increased as a result of this. Here are a few places where you may use a prepaid card to purchase Bitcoin.
1. Coinbase
Without a question, one of the most well-known brands in the world of cryptocurrency exchanges is Coinbase. Since its 2012 start, this US-based service has grown rapidly, and it now offers its services to 32 countries, including the ability to buy cryptocurrency using prepaid cards. Additionally, Coinbase supports at least 32 nations and works with four digital currencies, including Bitcoin.
Again, purchasing bitcoin through Coinbase is easy to understand for beginners. The standard Coinbase account is designed to be a user-friendly trading platform for newcomers. While the design and technical indicators of Coinbase Pro are more complicated and geared toward helping crypto enthusiasts.
2. Paxful
As a result of its ability to link Bitcoin traders worldwide, Paxful is frequently referred to as the eBay of bitcoin. Prepaid cards are one of the many possibilities this site offers users when it comes to the variety of payment methods when purchasing bitcoin.
3. Coinmama
One of the easiest exchanges to use to purchase cryptocurrency with a prepaid card is Coinmama. This crypto exchange was established in 2013 and has since been in operation. The exchange allows cryptocurrency traders to purchase and sell well-known coins, including Bitcoin.
With a presence of more than 200 countries, Coinmama is one of the few cryptocurrency exchanges to cater to such a broad market.
The platform supports a wide range of languages because of its broad appeal. The platform’s 5% transaction cost when purchasing Bitcoin with a Prepaid card is a drawback. Additionally, for Prepaid card purchases, they only accept Visa and Mastercard.
4. CEX.io
In addition to Bitcoin, CEX.IO is a well-known, licensed cryptocurrency exchange that has been operating since 2013, and it is based in London, United Kingdom. Prepaid cards are one of the payment methods that CEX.io accepts.
This reputable exchange has the appropriate permits to operate in the US and complies with all applicable laws. To maximize security, they also keep the majority of their digital assets in cold wallets. Additionally, CEX.IO has a solid reputation for customer support, an area where many significant crypto exchanges fall short.
Similar to other exchanges, CEX has a similar procedure for purchasing Bitcoin. Open an account, enter your payment details, and start trading. A typical transaction fee of 2.99% of the deposit amount is charged when making a deposit of cash.
5. Crypto.com
The user-friendly interface of Crypto.com, which was established in 2016, makes purchasing Bitcoin with a prepaid card simple. You will be taken to the payment getaway after adding your prepaid card as a payment option. Enter the card information there to have it confirmed.
Once finished, click “Trade” after searching for Bitcoin. As soon as you’ve entered the quantity of Bitcoin you want to buy, click the buy button. With two-factor authentication enabled on the majority of prepaid cards, you must either input a pin code or authenticate a transaction request using biometrics. As soon as the request is approved, your bitcoin should appear in your crypto wallet.
How to Buy Crypto with Prepaid Card
Companies that sell prepaid cards have simplified the process of purchasing cryptocurrency with a prepaid card. The majority of purchases are made with prepaid cards, which are used by billions of cardholders to pay for products and services. These payment cards are becoming popular, and more cardholders are interested in learning how to purchase Bitcoin using prepaid cards.
Prepaid cards are not an easy way to purchase bitcoin. Prepaid bitcoin transactions, however, provide the customer with a number of benefits.
Step 1: Choose a Bitcoin Exchange.
Prepaid cards are accepted by a number of Bitcoin exchanges for Bitcoin purchases.
Step 2: Make a User Account
Following your selection of a Bitcoin exchange, you will proceed to set up an account there. Your prepaid card will be used to deposit money into the account, which you can then use to buy the necessary amount of Bitcoin.
Step 3: Deposit funds into the newly created account.
To make the process of purchasing Bitcoin easier, you must deposit money once you’ve created an account with the exchange of your choice. Naturally, the money you deposit must be the converted value of how much BTC you plan to purchase.
Step 4: Choose Bitcoin and make a purchase.
The next step is to choose Bitcoin and the desired amount of BTC from the drop-down menu. Simply click “Open Trade,” and you will then have the option to choose the number of Bitcoins you want to buy later on depending on how you funded your account.
Step 5: Choose the required Bitcoin amount and make the purchase
The final step is to buy the precise amount of Bitcoin that you require. Then, depending on how much money you deposited into the account, you can choose the quantity of Bitcoin you desire by clicking “Open Trade.”
What Benefits Can Buying a Bitcoin with a Prepaid Card Offer?
Why would you use a prepaid card to purchase BTC when there are so many other payment alternatives available? Prepaid cards are superior to other alternative payment methods in many respects, with secure transactions being one of them.
A Prepaid Card’s ease of use
Using credit cards is one of the most popular ways to purchase cryptocurrency. The issue is that, depending on their credit history, not everyone can obtain one. Even if they can, getting a credit card requires a lot of effort. You only need to enter your card information, and you are ready to purchase Bitcoin.
High Security
Although improbable, there is a chance that your bank information will be compromised. If you use a credit card, there is also a chance that someone will steal your information and use it to make an unauthorized purchase of bitcoins. It’s recommended to use a prepaid card because it’s always better to be safe than sorry.
Additionally, since it is not linked to a bank account, taking it will only give you access to the money that has been loaded on the card.
Prepaid bank cards provide an additional degree of protection through the use of biometrics to verify transaction requests. There are very few ways for someone to access these.
And last, you may always disable your card in a couple of minutes. Security is therefore the last thing you should be concerned about.
Instant Crypto Purchases
When compared to methods like bank transfers, which could take days to complete, using prepaid cards guarantees that you receive your Bitcoin almost instantaneously. By doing this, tension is reduced and time is not wasted waiting for bitcoin to appear in the Bitcoin wallet.
If you choose a different payment method, it may occasionally take days for the money to appear in your wallet. For instance, processing a wire transfer can take up to 5 days.
What Are the Drawbacks of Using a Prepaid Card to Buy Bitcoin?
Prepaid card use has a few drawbacks, including the following:
KYC
Anonymity is one of the concepts underpinning cryptocurrencies. Users lose this privilege when purchasing Bitcoin using prepaid cards because the KYC verification process is typically necessary when utilizing this method.
Greater Fees
Prepaid cards typically charge higher fees when purchasing bitcoin than other options. For instance, a bank transfer may simply cost 1% as opposed to the 5% that certain sites charge.
Limited platforms
When you plan to buy crypto with prepaid card, keep in mind that it cannot be used on all platforms to make significant Bitcoin purchases. If you want to acquire a substantial amount of Bitcoin all at once, this is a huge issue.
Conclusion
Despite the existence of numerous cryptocurrency exchanges, it is significant to emphasize that purchasing bitcoin via prepaid cards is not simple. Prior to beginning, you should confirm that you are dealing with authorized exchanges. This will assist you in protecting the security of your credit card information and negotiating fair prices for purchases.
They will keep your information secure during the trading procedure. Given that purchasing cryptocurrency with prepaid cards is becoming a regular practice, you must take all necessary security measures.
Although interest in buying and selling cryptocurrencies has grown, it is important to remember that exchange platforms are centralized and vulnerable to hacking. So, always be vigilant and do your own research.
What is your experience buying crypto with prepaid card? Let me know in the comments below.
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