One prevalent method for purchasing Bitcoin involves using a credit card. Buying Bitcoin (BTC) with a credit card is one of the fastest methods. Many major cryptocurrency exchanges, including Binance, Coinbase, OKX and MEXC, accept credit cards.
However, there are often additional fees to buy Bitcoin with a credit card, as well as Know Your Customer (KYC) checks to complete when first registering with a cryptocurrency exchange.
Additionally, not all credit card companies allow crypto purchases, with many credit card providers and banks usually limiting the value and frequency of cryptocurrency purchases.
Why buy Bitcoin with a credit card?
There are several reasons to buy Bitcoin with a credit credit, including:
Fast and safe transactions
Buying Bitcoin via a credit card is almost instant on major exchanges. It can be performed easily on a mobile device, allowing buyers and traders to quickly take advantage of market moves. In contrast, a bank account transfer might take several days to process, by which time the market and Bitcoin price may have changed.
Often, the cryptocurrency exchanges that accept credit cards are regulated and will use high levels of encryption. These exchanges will require KYC and Anti-Money Laundering (AML) checks for security and compliance. Although the checks don’t phase many cryptocurrency buyers, some privacy advocates in crypto might be reluctant to provide extensive personal information.
Purchasing Bitcoin with a credit card is a beginner-friendly option for new cryptocurrency investors already familiar with using their credit cards for online transactions. There may be some protection from the credit card company if something goes awry.
It’s important to note that there may be no protection, depending on the scenario. A fraudulent transaction on a cryptocurrency exchange where the buyer doesn’t receive the Bitcoin could be a situation where a card company will investigate the transaction and consider a chargeback, although there is no guarantee.
Straightforward withdrawals
Bitcoin buyers who subsequently sell their assets can quickly withdraw fiat funds to their bank…
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