The cryptocurrency Bitcoin has made many headlines over the years detailing its large gains and losses in value. Despite this volatility, Bitcoin gains popularity as an investment vehicle each year, and there are now more options for investing than ever before. And while all crypto investing carries a certain amount of risk, modern platforms are now more secure and trustworthy than in the past.
Even for those unfamiliar with Bitcoin, cryptocurrency, or even technology in general, it’s never been easier to invest with confidence. In fact, there are several fast and convenient method to enter the market. In this guide, you’ll learn where and how you can start investing in Bitcoin and the advantages associated with certain payment methods.
How to Buy Crypto With Your Debit Card
Since it’s a digital currency, you need a digital method of payment to start investing. Many crypto exchanges and ATMs don’t accept credit cards. When you buy bitcoin with debit card, it’s important to note that you must first have what’s known as a digital wallet. These wallets store a person’s cryptocurrency in the cloud and provide a place for them to send and receive Bitcoin.
When your wallet is set up, buying with a debit card is an easy process:
- Create an account with the crypto exchange of your choice and verify your identity.
- Add your debit card as your preferred payment method.
- Start a transaction and specify what currency you want to purchase. Different exchanges may not offer every cryptocurrency.
- Enter the dollar amount you want to purchase.
- Confirm your transaction.
You should receive your new Bitcoin in a short amount of time, sometimes as little as half an hour.
Advantages to Buying Bitcoin With Debit
Alternatives to buying Bitcoin with a debit card include credit cards, bank transfer, and cash via a Bitcoin ATM. Using your debit card has clear advantages over each alternative method.
Security is paramount when it comes to investing in crypto, and debit cards are more secure than bank transfers. While all reputable crypto exchanges invest heavily in security, there ist still a risk inherent in putting your information online. Paying with a debit card protects your bank account information and potential bad actors.
Debit cards can also be a much cheaper way to buy Bitcoin. One big reason is that many credit card companies process buying Bitcoin as a cash advance transaction and will charge a fee accordingly. Like with anything bought with a credit card, you will have to pay your card’s APR on the amount. Debit cards avoid these costs.
Debit cards are faster than bank transfers, wire transfers, and money orders. These methods take days to process compared to the mere minutes it takes to process a debit card.
Where to Start Buying Cryptocurrency
Cryptocurrency exchanges are the easiest way to start investing in Bitcoin. These exchanges operate much like any other financial exchange, except you are buying, selling, and trading crypto instead of stocks or commodities.
Many traditional brokerage firms, such as RobinHood and Fidelity, now offer Bitcoin investments for those interested. Investing via brokerage usually means lower fees but fewer options than dedicated exchanges.
Finally, you can use a Bitcoin ATM to buy and sell Bitcoin using cash. These ATMs allow users to enter their exchange account information, select the amount they want to purchase, and deposit the specified amount of cash.
Getting started investing in Bitcoin may make your head spin at first if you’re not familiar with the crypto world. However, doesn’t need to be intimidating. In fact, there are now several easy ways to start investing, with many safe and secure payment options, such as debit cards, available.