There are lots of valuable things rather than money in this world, such as gold, diamond. Bitcoin also one of the valuable things due to the demand of the people. It has value relative to goods and, services, and other traditional currencies. Let’s discuss what is Bitcoin and how to buy Bitcoin with a credit card or bank transfer.
What is Bitcoin?
Bitcoin can be distinguished as a digital currency, a cryptocurrency, or a virtual currency that is like an online version of cash that is controlled by a centralized network of users. Each Bitcoin can be considered as a computer file that is stored in a program called a digital wallet on a smartphone or computer. Goods and services are traded with vendors who accept Bitcoins as payment. Whole Bitcoin units can be subdivided into decimals and, 0.00000001 Bitcoin consider as the smallest bitcoin unit.
Why people give value to Bitcoin?
Before you buy Bitcoin, you should understand it’s values. Some people like it because Bitcoin is not backed by any country’s government or central bank. Bitcoin has better liquidity than other cryptocurrencies. And also, Bitcoins make easy international transactions. Further, compare with other digital payment methods Bitcoin comes with low transaction fees. People have the opportunity to spend their Bitcoins fairly anonymously. Nobody is able to know what is your account number. Furthermore, there is a zero risk of inflation with bitcoins. And also, you can easily use bitcoins in any situation as well as any country without any pains of contacting local banks.
What is the process of getting Bitcoin?
- The first step is to buy Bitcoins is to download a digital wallet to store Bitcoins for future trading or buying.
- One of the important things is when registering for digital wallets as part of the U.S. Securities and Exchange Commission’s Anti- Money Loundering Policy requires verifying users’ identities. And also, users will need to verify their identity by using some personal documents such as Social Security Number and driver’s license.
- Another important thing is, make sure of the security of your internet connection. Trading Bitcoin on public Wi-Fi network or an insecure is caused to attacks of the hackers.
- When completing the above tasks, users can use a traditional payment method like a credit card, debit card, or bank transfer to buy Bitcoin from an online market namely Bitcoin exchange. Then it transfers to the digital wallet.
What are the ways to buy bitcoins by using credit cards or bank transfers?
Since 2013 Coinmama supplies a brokerage service to buy several types of cryptocurrencies including Bitcoin and, it specializes in Bitcoin purchases through credit cards. We list is at #1 because it’s the easiest way to buy Bitcoin comparing the others on the list. They provide faster and reliable service and Coinmama accepts only visa and master cards. Purchased made via credit cards, Coinmama will charge a 4.9%-5.9% fee due to the risks and processing fees. Further, Coinmama provides high limits to buy Bitcoins. $5,000 worth of bitcoin per day and, it allows buying $20,000 worth of Bitcoins per month.
Now Coinmama provides an option to buy Bitcoins via bank transfers with a 0% processing fee. Create a Coinmama account, obtain approval for the purchase, and place the order, these few steps help you to buy bitcoins through bank transfers. Coinmama offers this opportunity by using SEPA (Europe), SWIFT (worldwide), and Faster payments (UK).
Europeans widely use Coinmama but Some American States such as Florida, Hawaii, New Mexico, Oregon, and Vermont are unable to use Coinmama.
CEX.IO is also one of the main companies that provide brokerage services. You can buy Bitcoin through credit cards via CEX.IO. Visa, Master Card, and PayPal Debit Master Card are the only cards that are accepted by CEX.IO. And also CEX.IO comes with fee of 2.99% for purchases via credit card.
CEX.IO allows buying bitcoins via bank transfers and fees for buying with bank transfers are zero. CEX.IO introduced three specific account levels to users such as Basic accounts, Verified accounts, and individual business and Corporate accounts. Basic accounts can buy Bitcoins up to $400 worth per day and $2,000 per month but you cannot buy basic accounts via bank transfer. Verified accounts can buy up to $10,000 worth of Bitcoins per day and up to $100,000 per month via credit card as well as bank transfer. The last account is Individual Business and Corporate accounts which can purchase an ultimate number of Bitcoins.
CEX.IO operates in the United States, Europe, and some countries in South Asia. CEX.IO does not work in some US States. They are Alabama, Alaska, Arizona, Arkansas, Colorado, Guam, Idaho, Kansas, Louisiana, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Tennessee, Texas, U.S. Virgin, and Island.
Bitpanda is previously known as Coinimal which is one of the biggest names that come up with Bitcoin exchange. It is Europe’s leading company. US dollars (USD), Euro (EUR), British Pound (GBP), TRY and Swiss France CHF are the currencies that accept by Bitpanda. Credit card transfers are a very popular payment option for Bitpanda. Bitpanda charges 1.49% for buying because it uses third-party payment services and credit cards.
Bank transfer is one of the payment methods of Bitpanda but there is a specific payment method namely SEPA (or the Single Euro Payments Area) which is the new format for cross-border Euro (EUR) bank transfers. EU members are the only persons who can use this payment method to buy Bitcoins.
Another important thing is Bitpanda introduces different levels of verification based on information that you provide. The first one is a verified email. At this level, you are not able to buy Bitcoins. Another level is the Verified phone number. Here, you can buy Bitcoins via any payment method excluding a credit card. Using SEPA transfer, and Bank transfer, you can purchase bitcoin up to 50EUR per day. The last level is a Verified ID. At this level, you can purchase Bitcoins up to 350EUR per day and up to 10,000EUR per month via credit card. and also, you can buy with other payments including bank transfer and SEPA transfer, up to 5,000EUR worth of Bitcoins per day and up to 75,000 EUR worth of Bitcoins per month.
All EU countries, the UK, and some middle eastern countries are supported countries of Bitpanda but now Bitpanda pro works worldwide besides the USA and China.