Looking forward to buying bitcoins with your debit card? You may already know that using credit or debit cards is probably ones of the fastest ways of purchasing bitcoins. Other ways to buy bitcoins also exist such as:
- Bank transfer
- Cash transactions
- Bitcoin ATM
- P2P platforms
- In person transfer
Out of all of these methods, using credit cards or debit cards is not only the fastest but also the safest way to purchase bitcoins, albeit it is also the most costly. But if you prefer processing speed and safety of transaction over cost then this is the option for you.
If you have made up your mind to buy bitcoins instantly using your credit card or debit card then the mode of purchase left for you is the bitcoin exchange.. Bitcoin exchanges allow users to buy bitcoins using their card or bank account. There are numerous bitcoin exchanges in the market right now and for an amateur cryptocurrency enthusiast this may be all too confusing.
Which Bitcoin Exchange Should You Choose?
As mentioned above, there are many bitcoin exchanges to choose from. We can help you narrow down your choice so that you can easily decide which exchange to use.
The first thing to consider here is the authenticity of the exchange. Since there are too many exchanges it is only natural for some of them to be scam exchanges. This is where you will have to use your due diligence skills to make sure that you steer clear of any suspicious exchange. A good rule of thumb is to look at how long the exchange has been operating in the market. Generally, the older the exchange the more authentic it will be.
Also Read: How to Buy Bitcoin in Hong Kong
But this is not necessary. New exchanges may also be trustworthy but it is usually very difficult to differentiate a good exchange from a bad one, in their early stages. You can do a quick search on google to check if there are any negative reviews or you can consult your cryptocurrency community. Those who have been using cryptocurrencies for a long time, will be able to guide you in a better manner.
You can check the authenticity of any exchange using the factors presented below:
- Cost of transaction: Exchanges will charge a cost on each transaction, make sure you compare several exchanges because the rates should not vary too much between exchanges. A few points up and down is considered normal but if it does not follow the trend, better avoid it.
- Processing time: Transactions through credit and debit cards should happen instantly, if the exchange takes time to transfer bitcoins on card based transactions then it is better to avoid it.
- Data sharing/ security: Laws and regulations require exchanges to share the user data with the relevant authorities. If any exchange offers you a way to circumvent this regulatory requirement then look elsewhere. You can use cash transactions if you do not want to share your data but if any exchange says that you can use your cards to transact anonymously then you are being scammed.
Whichever exchange you opt for in the end, make sure to carry out proper due diligence to look for any red flags. Make sure that you check the rate that you are getting from the exchange. Bitcoins, do not have a standardized rate, so each exchange will offer you a different rate but their rates will not deviate by a lot. If any exchange is offering rates that appear too good to be true then it is better to steer clear.
Top Bitcoin Exchanges On The Market
- Coinbase
- Coinmama
- Paxful
- LocalBitcoins
- BitIt
These exchanges have been in the market since quite a time and they have collected good user reputation over the time and they offer competitive rates. Coinbase and Coinmama are two of the most trustworthy bitcoin exchanges.
Before you choose an exchange, make sure that you check the coverage area of the exchange because many exchanges are limited by jurisdiction.
Getting Registered On The Exchange
Once you have chosen the bitcoin exchange of your choice, next you will need to set up your account on the exchange. If you have already got a bitcoin wallet then good for you, If not then you should get one at this point or if you are new to this then exchanges like Coinbase can help you, they provide online wallet feature as well. More experienced and frequent bitcoin users however prefer to keep their bitcoins safer in a hardware wallet but if you are new then you can experiment with an online wallet just to get a hang of things.
In order to get registered with an exchange you will have to complete a few forms. You will be required to provide your basic credentials and then the exchange will ask you for your identification and verification. You will be required to submit your identity documents like your social security card or your driver’s license or passport and bank account details in some cases, the verification process may take as long as a week.
Once your account is verified by the exchange, you can now buy bitcoins. You will simply need to select your card in the payment options, enter the relevant details and then select the amount of bitcoins that you need to buy. You can purchase partial bitcoins. Once the transaction is processed, the bitcoins will be transferred into your account. In this simple manner you can buy bitcoins instantly using the bitcoin exchange of your choice.
