Buying Bitcoin with a credit card could possibly be the most convenient way to buy Bitcoin. On the user’s side of the transaction, it is simple. It looks like any other purchase online, except for the fact that you would have to set up a bitcoin wallet before hand to send your coins to – we always recommend you have a secure wallet for which you control the private keys. In fact, the provider takes almost all the risk in this kind of transaction. Here are some of the curious facts about buying Bitcoin with a credit card that you should know, including some tips.
Buying Bitcoin with a Credit Card: Behind the Platform
Buying Bitcoin with a credit card comes down to using a service provider that you can trust. On the other side of the transaction, the provider is the one assuming the risk. That risk might result in higher purchasing fees. Here is why the provider takes almost all the risk when you buy Bitcoin with a credit card:
- Bitcoin transactions are immutable.
- Credit card transactions can be reversed.
- Therefore, the seller takes the risk of delivering Bitcoin to a buyer that can cancel the credit card transaction after they receive the corresponding amount in BTC.
- The only risk on the buyer’s side is falling into a possible scam or credit card theft scheme.
- If you are going to buy Bitcoin with a credit card, make sure the provider is a well-established entity that can be trusted with your credit card information.
Where do you Buy Bitcoin with a Credit Card?
There are a few exchanges that can be trusted with your credit card information. Here is a short list of those we recommend:
If trust is the main issue on your side and you are entertaining the possibility of buying Bitcoin from other providers, then there are a few steps you can take to minimize the risk:
- Make sure the exchange accepts your credit card, and that your credit card company allows you to purchase cryptocurrencies.
- In some cases, credit card companies and exchanges have agreements between them. Check with your credit card company if you see an exchange supports your credit card.
- Look for an exchange that offers services in the country where you live.
- Prepare for the KYC process. Depending on the exchange’s service area and location and your own citizenship, you may be required to undergo a lengthy process, but in most cases, only well-established exchanges require these lengthy KYC processes.
After the KYC Process
The KYC process might introduce some inconvenience into the transaction. Scammers are less likely to be interested in launching such a process because they want to take your money as fast as they can. This doesn’t mean that a scammer will always avoid placing some sort of KYC mechanism on your purchase. Remember, scammers are constantly refining their skills, so make sure you check the site you want to buy Bitcoin from thoroughly.
On legitimate sites, once you have been approved through the KYC process and given your credit card information to the exchange, you are basically one click away from buying Bitcoin with your credit card.
Easy as Pie!
KYC processes aside, as more exchanges take the risk of enabling credit card payments, buying Bitcoin will become increasingly easy. This is convenient for you and it might help increase Bitcoin adoption. Just remember, when you buy Bitcoin with your credit card, your identity and your credit card will be forever linked to that purchase. So, if this is something you are not comfortable with, you can check all the other ways you can buy Bitcoin anonymously. Otherwise, buying Bitcoin with a credit card is extremely easy and convenient.