Buy Bitcoin with a Debit Card
Buying Bitcoin with a debit card has become relatively easy in the past few years with the introduction of anti fraud systems for Bitcoin exchanges. However, these systems are quite expensive to operate and therefore exchanges will usually charge a premium for buy Bitcoin with a debit card.
The fastest way to buy Bitcoin with a debit card would be through CEX.io. Here are the steps:
- Visit CEX.io
- Decide on a deposit amount
- Complete the id verification process
- Enter your Bitcoin address
- Complete the payment with your debit card
If you want a summarized review of each exchange with its pros and cons keep on reading. Here’s what I’ll cover:
- Where Can I Buy Bitcoins with a Debit Card?
- Conclusion — Is it Safe to Buy Bitcoins with a Debit Card?
1. Where Can I Buy Bitcoins with a Debit Card?
Using your debit card to purchase Bitcoins isn’t as easy as it sounds. Some exchanges are afraid of fraud and therefore don’t accept debit cards. However, many exchanges have started implementing services to detect fraud and are more open to credit and debit card purchases these days.
As a rule of thumb and exchange that accepts credit cards will also accept a debit card.
Pros: Enables buying bitcoins with credit card for low fees, Reputable company, high buying limits,
Cons: Extensive verification process to increase buying limits, Limited countries available, relatively high exchange rate
CEX.IO allows for the buying of bitcoins for low fees via credit card. Customers can also purchase for free with bank transfers.
CEX.IO is one of the oldest Bitcoin exchanges still operating. It came into being in London in 2013 and has served three million customers since then.
In the early days, CEX.IO’s main product was a cloud mining pool called Ghash.io. At one point, this pool made up 42% of the Bitcoin network’s hash power. Ghash.io shut down in 2015 as management focused on their exchange business.
In addition to Bitcoin, CEX.IO supports trading with dozens of other digital currencies, including Ethereum, Bitcoin Cash, Litecoin, Dash, Ripple, and many more.
You can buy cryptocurrency using Visa or MasterCard directly, or deposit funds to your account using ACH, SEPA, or SWIFT bank transfers.
CEX.IO has a good reputation for security. The exchange claims to have never lost a single cent of user funds.
CEX.IO has obtained the relevant licenses to operate legally in a number of countries. It is registered with FinCEN in the United States and as a Money Services Businesses in the United Kingdom. This means that you’ll need to satisfy Know Your Customer (KYC) and Anti-Money Laundering (AML) laws by verifying your identity in order to unlock CEX.IO’s full suite of features.
All in all, CEX.IO offers many features you’d want in a cryptocurrency exchange.
Pros: Suitable for beginners, great support, Free stock and ETF trading, Seamless account opening, Social trading experience
Cons: Limited countries available, long process to withdraw your coins
eToro is a well-known Israeli fintech company and a social trading broker, established in 2007.
eToro serves UK clients through a unit regulated by the Financial Conduct Authority (FCA) and Australians through an Australian Securities and Investment Commission (ASIC) regulated entity. All other customers are served by a Cypriot unit that is regulated by the Cyprus Securities and Exchange Commission (CySEC).
eToro is considered safe because its UK and Australian arms are regulated by top-tier financial authorities and it is a well-known fintech company.
eToro offers commission-free stock trading. Account opening is fast and seamless. It has innovative features like social trading, which lets you copy the strategies of other traders.
Important! 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. CFDs are not offered to US users. Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
Pros: User-friendly interface, Relatively low fees, Established reputation, Very high liquidity
Cons: Support takes time to respond
As the leading mainstream cryptocurrency exchange in the United States, Coinbase has become a standard on-ramp for new crypto investors. Coinbase offers a wide variety of products including cryptocurrency investing, an advanced trading platform, custodial accounts for institutions, a wallet for retail investors, and its own U.S. dollar stable-coin.
Coinbase was founded in 2012 and is a fully regulated and licensed cryptocurrency exchange supporting all U.S. states except Hawaii. Coinbase initially only allowed for Bitcoin trading but quickly began adding cryptocurrencies that fit its decentralized criteria.
Its list expanded to include Ethereum, Litecoin, Bitcoin Cash, XRP, and many others with the promise of more as long as its requirements are met.
Pros: Low fees, intuitive interface, multiple payment options
Cons: Better suited for EU customers
Bitpanda began its journey under the name Coinimal in October 2014. The platform gained attention with its simplicity — making it easier for both experts and novice traders to step on to the cryptocurrency trading scene.
Today, the platform has evolved to provide an array of digital assets — including 46 cryptocurrencies, four metal tokens, and three different Bitpanda crypto indices.
In addition, the team at Bitpand has also introduced several other financial management tools that aid in the process of online trading.
Here is an overview of the key features found at Bitpanda:
- Buy and sell digital assets and tokens directly — 24 hours a day, seven days a week
- More than ten options to pay for digital assets — with bank cards, e-wallets, and SEPA bank transfers
- Fast and convenient transactions with fully-automated order systems
- Create price alerts for supported digital assets
- Set up a personal savings account to automatically buy digital assets
- Unlock trading discounts with the Bitpanda Ecosystem Token
- Gain access to competent and reliable support
Bitpanda was designed specifically for newbie traders who want an easy to use interface to access cryptocurrency. That said, the platform has also expanded to accommodate the needs of professional traders.
6. Conclusion — Is It Safe to Buy Bitcoins with a Debit Card?
As long as you’re using a trusted exchange using your debit card to buy Bitcoins is perfectly safe. The main thing I would advise is not to keep the Bitcoins on the exchange after you buy them, but move them to your own Bitcoin wallet.
Keep in mind that while using your debit card may be convenient but it’s also more expensive. If you’re buying a relatively large amount of coins and you have the option I suggest always using a bank transfer. However if the amount isn’t that big sometimes paying the extra 3%-5% is worth the time saved.