Beginner’s Guide to Buying Bitcoin with a Prepaid Card
Although purchasing Bitcoin with a debit or credit card is the quickest and most convenient method, it is not usually the most secure. A prepaid card, on the other hand, is not only a safer way to acquire Bitcoin, but it also comes with a number of additional benefits.
We’ll go over where and how to buy Bitcoin using a prepaid card in this tutorial โ it’s a lot easier than you may think, and there are a few well-regulated crypto exchange companies to pick from.
Where Can I Purchase Bitcoin Using a Prepaid Card?
Here’s a rundown of the top 5 crypto exchanges for purchasing Bitcoin with a prepaid card.
eToro is a regulated cryptocurrency exchange that charges no fees on deposits made in US dollars.
Crypto.com
Buy Bitcoin and over 250 other cryptocurrencies using a prepaid card.
Coinbase
In the United States, you can buy Bitcoin with a prepaid card.
CEX
Get crypto-collateralized loans by purchasing Bitcoin.
Coinmama A platform where you may buy Bitcoin with a prepaid card that is easy to use.
We’ll take a deeper look at these crypto exchanges for prepaid cards, as well as their features and fees, in the sections below.
Buying Bitcoin using a Prepaid Card โ Steps that are quick
To buy Bitcoin with a prepaid card in a matter of minutes, follow these steps:
Make a user account โ The first step in purchasing Bitcoin with a prepaid card is to open an account with a cryptocurrency exchange, such as eToro.com. Fill in your name, address, and email address, as well as a password, to register. To authenticate your identification, upload the required documents.
Deposit funds โ Link your prepaid card to your account โ eToro offers live chat assistance 24 hours a day, 7 days a week to help you with this. Enter the desired deposit amount and confirm the transaction request on your device. Deposits in US dollars are free of charge.
Search for Bitcoin in the top menu bar and select “Trade” from the results.
Buy Bitcoin โ Enter the quantity of Bitcoin you want to buy โ a fraction of a Bitcoin can be purchased โ and click “Open trade.” Your Bitcoin will be promptly deposited to your crypto wallet.
Cryptoassets are an unregulated, extremely volatile investment commodity. There is no investment protection in the United Kingdom or the European Union.
Top Prepaid Card Exchanges for Buying Bitcoin
Debit and credit cards+9 are the most prevalent payment methods used to purchase Bitcoin. Although handy, the latter may not be the best solution (overinflated costs being one concern).
Debit cards may have greater costs than bank transfers (ACH or SEPA), but they are speedier and processed quickly. In the end, it’s a matter of personal preference. Being able to acquire Bitcoin instantaneously can be beneficial in situations such as the May 2022 crypto meltdown, when investors who bought the dip received a 20% return.
Beginners and seasoned traders alike are concerned about the safety of using a prepaid card to purchase cryptocurrencies. However, not all cryptocurrency exchanges accept prepaid cards. The following are some of the greatest platforms that now accept prepaid cards:
1. eToro – A regulated cryptocurrency exchange with no fees on deposits made in US dollars.
Our choice for the finest overall platform for buying Bitcoin with a prepaid card is eToro. The software is extremely user-friendly, allowing you to buy Bitcoin in a couple of minutes.
The process of establishing an account is also painless. Simply complete your personal information and upload a copy of your government-issued ID as well as a proof of address document to verify your identity. After that, you can buy Bitcoin or one of the other 60+ supported cryptos on the exchange by simply searching for it.
To buy bitcoin, you’ll need to put money into your wallet. Enter the amount on the deposit screen, choose a payment option, and check the transaction request on your device. After the transaction is completed, you will receive a confirmation message.
Other payment methods, such as credit/debit card, bank transfer, or buying Bitcoin with PayPal (all of which are supported by eToro), have minimal and competitive fees. eToro accepts the largest range of deposit options, and if you have any problems using your prepaid card to buy BTC, support is available via live chat.
Unlike Binance, which has a number of regulatory concerns in the United States, eToro follows all applicable legislation and has many tier-1 licences to operate in the United States. It is also regulated in a number of European countries, with plans to expand their operations to other Asian countries in the near future.
This implies that your money is safe in the eToro crypto wallet, which prioritises security. Because of all of these advantages, eToro is the favoured method of trading for more than 27 million people all over the world. The FCA, ASIC, and CySEC govern the platform.
Cryptoassets are an unregulated, extremely volatile investment commodity. There is no investment protection in the United Kingdom or the European Union.
2. Crypto.com – Buy Bitcoin and 250+ Cryptocurrencies with a Prepaid Card.
Because of the user-friendly design, purchasing Bitcoin using a prepaid card on Crypto.com is equally simple. You’ll be led to the payments getaway after adding your prepaid card as a payment option. There, enter the card’s data and get it confirmed.
After that, look for Bitcoin and click “Trade.” After you’ve entered the quantity of Bitcoin you want to buy, click the buy button. Most prepaid cards need two-factor authentication, which means you must either enter a pin or use your biometrics to authenticate a transaction request. . As soon as your request is confirmed, your Bitcoin should appear in your wallet.
Over 250 cryptocurrencies can be traded against Tether (USDT), Bitcoin, or Cronos, the platform’s native asset (CRO).
Apart from trading, the platform also allows users to earn Bitcoin interest. Bitcoin’s annual percentage yield (APY) can reach 6%, but it comes with a three-month lock-in period โ adjustable terms are available for a lower APY.
The site also has its own NFT marketplace (similar to Binance), as well as a prepaid card โ a metal VISA card.
If you hold and stake the exchange’s cryptocurrency, CRO, you can get a discount on trading expenses. When their prepaid card benefits were altered in mid-2022, it plummeted in value, and it could be an excellent investment now.
Cryptoassets are an unregulated, extremely volatile investment commodity. There is no investment protection in the United Kingdom or the European Union.
3. Coinbase – Buy Bitcoin in the United States using a Prepaid Card
Coinbase is the world’s second-largest cryptocurrency exchange by volume. The platform is a popular way to acquire Bitcoin in the United States using a prepaid card, as well as other bank cards and bank wire.
It has 89 million users worldwide as of 2022. On the platform, there are over 100 cryptocurrencies available, and they are regularly adding the greatest new altcoins.
Purchasing Bitcoin through Coinbase is, once again, simple and user-friendly. Coinbase was created with the goal of providing an easy-to-use platform for newcomers. Coinbase Pro, on the other hand, is primarily geared toward helping traders and has a more complicated design and technical indicators.
To buy Bitcoin, you must first complete the KYC process. After that, all you have to do now is use your prepaid card to add funds to your wallet, search for Bitcoin, and complete the transaction after entering the quantity of Bitcoin you want to buy. This procedure can be completed in within 10 minutes.
When it comes to transaction fees, Coinbase has a convoluted system. A 2.5 percent deposit fee is applied to all deposits made with a prepaid card. There are a variety of additional payment options available, such as purchasing Bitcoin with Apple Pay, and the fees for each one vary.
Coinbase takes security very seriously, and offers two-factor authentication and biometric fingerprint logins as examples. Coinbase features AES-256 encryption for digital wallets and is guaranteed for all USD balances in the event of a breach. Coinbase keeps 98 percent of its customers’ money in offline wallets, safe and secure from online hackers.
Coinbase allows you to buy bitcoin with a prepaid card.
Cryptoassets are an unregulated, extremely volatile investment commodity. There is no investment protection in the United Kingdom or the European Union.
4. CEX – Buy Bitcoin and Borrow Cryptocurrencies
CEX.IO is a well-known licenced cryptocurrency exchange that operates in over 200 countries, including all 48 states in the United States. The company was founded in 2013 and became a cryptocurrency exchange in 2016; it presently has over 100 users.
cryptocurrencies
The exchange conforms with all applicable legislation and holds the essential licences to operate in the United States. To maximise security, they also keep the majority of their digital assets in cold wallets. CEX.IO is particularly well-known for its client support, which is an area where many major cryptocurrency exchanges fall short.
Buying Bitcoin on CEX is similar to buying Bitcoin on any other exchange. Create an account, enter payment details, and start trading. The charge for depositing funds is also typical, at 2.99 percent of the amount deposited.
Crypto staking is also supported on the platform, allowing users to earn interest on their holdings. Another noteworthy feature is its crypto-collateralized loans, which allow users can borrow cash or fiat by pledging their crypto assets as collateral. This can be useful in situations where users require cash but do not want to trade their cryptocurrency.
CEX.IO has a lot of functionality, which can be intimidating for newcomers. Another area where CEX.IO falls short when compared to the competitors is liquidity. Despite a few drawbacks, the site is one of the finest for buying Bitcoin with a prepaid card.
On CEX, you can buy Bitcoin with a prepaid card.
Cryptoassets are an unregulated, extremely volatile investment commodity. There is no investment protection in the United Kingdom or the European Union.
5. Coinmama โ The most user-friendly Bitcoin exchange.
Coinmama is available in more than 200 countries throughout the world, making it one of the few crypto exchanges with such a diverse clientele. Since its inception in 2013, the platform has grown to service more than 3 million users all around the world.
The platform supports several languages due to its broad reach. The disadvantage is that when buying Bitcoin using a Prepaid card, the platform levies a transaction fee of 5%. Additionally, for Prepaid card purchases, they only accept Visa and Mastercard.
The platform’s accessibility adds to the platform’s inconvenient nature. There is no mobile app for Coinmama; it is solely available on the web.
Coinmama also has quick customer service and does not disclose your personal information with third parties or save your payment information. These are some of the benefits.
Why Use a Prepaid Card to Purchase Bitcoin?
Why should you buy Bitcoin with a prepaid card when there are so many other options? Prepaid cards outperform any other alternative payment mechanism in a variety of ways, one of which is secure transactions.
Prepaid cards are debatably the greatest option to buy Bitcoin because of a number of factors:
Instantly Buy Bitcoin
If there’s one thing we know about cryptocurrencies, it’s that they’re extremely volatile. This means that, in addition to somewhat larger risks than standard assets, there is a greater chance of profit. One example is Dogecoin’s immediate reaction to Elon Musk’s tweets.
If you want to trade cryptocurrency, you need to be able to think on your feet all of the time, thus being able to buy crypto quickly is crucial. You can do so with ease using a prepaid card.
If you choose an alternate payment method, it may take days for funds to appear in your wallet. Wire transfers, for example, can take up to five days to complete. If you already have an account and have completed the KYC process, prepaid cards are one of the finest ways to buy cryptocurrency.
It’s Simple to Get a Prepaid Card
Credit cards are 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, obtaining a credit card is a time-consuming process.
Prepaid cards, on the other hand, are available immediately. All you have to do now is fill out the needed form and pay the required fee. After that, you’ll receive your prepaid card in no time.
It’s worth noting, however, that in order for the card to be activated, you must first deposit funds into it (thus the term “pre-paid”). After that, you can spend those dollars to purchase cryptocurrency.
Prepaid Cards are a Time-Saving Option
Prepaid cards are simple to obtain, as previously stated. It’s just as simple to use one.
Unlike debit cards, which require confirmation, a transaction can be completed quickly. Prepaid cards, not only debit cards, are faster than practically every other alternative payment method accessible on crypto exchanges at processing transactions.
The primary advantage of prepaid cards is that you don’t have to pay interest on your purchases, unlike credit cards, where interest (APR) accumulates over time. As a result, you’ll be able to buy even more cryptocurrency with the money you’ll save on the monthly interest you won’t be paying. It’s a win-win scenario.
Spends Consciously
When we use a credit card, we all wind up spending far more than we intended. When it comes to crypto, there’s a potential we can do the same.
The cryptocurrency markets are always shifting, and we can occasionally make rash judgments that lose us our hard-earned money. You can end up trading with a lot more money than you can afford if you use a credit card.
That isn’t an issue with prepaid cards because you’ve previously calculated how much you need to invest and avoided making any judgments you’ll later regret.
Exceptionally safe
Your bank account information could be hacked, however this is uncommon. If you use a credit card, there’s a chance that someone will take your information and use it to withdraw money from your account. It’s better to be safe than sorry, which is why using a prepaid card is a good idea.
To hack a prepaid card, one must first get beyond two-factor authentication, which they can only do if they have access to the authentication code needed to complete a transaction. Being hacked is practically impossible if you don’t share your bank card information with anyone. The use of biometrics to validate a transaction request adds another degree of security to prepaid bank cards. . It’s nearly impossible for a third party to gain access to these.
Only if your card is stolen can someone use it โ but you’ll never lose more than the funds in your wallet, which can be negligible if you only deposit a significant amount when making a purchase. Finally, you can deactivate your card in a matter of minutes at any time. As a result, security is the last thing on your mind.
When you buy cryptocurrency with a credit card, you must pay a fee. You may be charged a fee for depositing funds into your wallet, and you may also be charged a fee for a cryptocurrency purchase transaction.
Almost all of the major crypto exchanges enable consumers to buy cryptocurrency with a prepaid card, with varying fees. The majority of them require a deposit of between 2 and 5 percent.
eToro has no costs for USD deposits, which is only one of the platform’s many benefits.
