Can you name the currency that exists electronically even today? Yes, it is none other than bitcoin. Released as open-source software, the code can be examined and included in the network. It is a peer-to-peer version of e-cash that permits online payments in a hassle-free manner. With the help of this specific technology, it is possible to send payment from one party to other without depending on any financial institution. In this article we will talk about step-by-step guide to purchase bitcoin with credit card or paypal.
Bitcoin removes the dependency on third parties, thus letting them have complete control over their money.
What Makes Bitcoin a Great Investment?
If you are deeply interested in Cryptocurrency, then for your kind information; it is something more than money. It is the fuel for an entirely new system where an individual will be able to make moves as desired. Bitcoin is a decentralized network that allows you to own the fund. As no bank or financial institution will be holding your money, you will have complete freedom on your assets.
As the funds will remain with you round the clock, they will be at your discretion. No third party will be able to access the same. If you are planning to utilize the benefits of this new technology, then why not start today? Yes, you can purchase Bitcoin either by utilizing a credit card or PayPal. Want to know how? Here is the guide……
Step-by-step Guide to purchase Bitcoin with PayPal
PayPal is one of the fastest and safest ways of sending and receiving money, making payments through online mode and setting up a merchant account. Today, it has been recognized to be among the largest e-payment processors. Post signing up, you will be able to secure all your transactions through round-the-clock prevention.
If you are planning to purchase Bitcoin with the help of PayPal, then below is the guide that you need to follow:
Step -1: Signing Up
First and foremost you need to register your name by logging in to the website of PayPal. Some of the most popular tools that can be utilized for signing up include e-Toro, xCoins, Coinbase, LocalCryptos, and LocalBitcoins. You may utilize any one of them!
Step-2: Loading of the account
Post-signing-up, it is your turn to load money into your account. It is possible to deposit the money with the help of a credit or debit card. Also, you may utilize your bank account for transferring money online. Once your PayPal account gets loaded, the balance will automatically get reflected.
Step-3: Purchasing by any of the tools mentioned in Step-1
Once money gets loaded into your PayPal account, you will be ready to make your purchase. It is possible to carry on with the purchase by utilizing any of the tools. The procedures have been mentioned in a short below:
- e-Toro and Coinbase – For making your purchase successful by utilizing the e-Toro and Coinbase platforms, firstly you need to connect your PayPal account to e-Toro or COinbase. Afterward, the desired amount needs to be deposited from PayPal to either of the platforms. Finally, returning to the purchase option; get the amount deducted.
- LocalCryptos and LocalBitcoins – On the way to utilize the platforms of LocalCryptos and LocalBitcoins, it is advisable to have a check on peers that accept PayPal mode of payment. The seller will be releasing the crypto to an escrow service provider before a transaction. It will prevent scamming and fraudulent activities.
Step-4: Receiving crypto in the wallet
This is the final step when you will be ready to receive the cryptocurrency in your wallet. A wallet address already exists in LocalBitcoins and LocalCryptos. Post the release of the cryptocurrency, the balance will get reflected in your account.
In the case of e-Toro and Coinbase, the crypto will be sent directly to the wallet. Post the completion of the transaction, the balance will automatically get reflected in your account.
Now, you are ready to carry on with your desired transactions through a few clicks or tapping!
Step-by-step Guide to purchase Bitcoin with Credit Card
Alternatively, it is possible to buy Bitcoins by making use of your credit card as well. But, it may not be the same as purchasing any item from an e-store. In short, it is a bit risky and expensive. It is possible to carry on with your purchase provided, the respective card issuer and the network permits the same. Some credit card issuers block purchasing of Bitcoins due to variable reasons. Better research about the same in-depth before finalizing.
The decline of the purchase of Bitcoins through credit cards is done to prevent the cardholders from scamming. Market volatility, fraudulent access to details, and financial losses are some high-level risks that are associated with credit cards. Also, certain limitations exist at the time of purchasing with the help of a credit card.
Working of the Entire Process
If you are planning to make generous use of a credit card for buying Bitcoin, then it is high time to know the entire process. Here it is:
- A transaction fee has to be paid – At the time of buying Bitcoin using a credit card, then a specific amount of transaction fee needs to be paid. The amount will be disclosed to you at the time of making the transaction as the charge fluctuates.
- A specific amount may be required to pay in advance – Is the transaction processed as cash in advance? Are you using American Express? If yes, then a specific amount of money is required to pay in addition to the transaction fee.
- A foreign transaction fee may be incurred – Is the Bitcoin purchase based outside the United States of America? Yes! Then you have to pay a foreign transaction fee. Typically, the fee is a maximum two-to-three percent of the transaction amount.
- The daily limit exists – A daily limit exists in case the purchase is done with the help of credit cards. You may check the limit after logging in to your account.
These are some vital points that you need to consider at the time of using a credit card for buying Bitcoin.
What are Some Dark Sides of Using Credit Card for Buying Bitcoin?
After coming across some vital points associated with buying Bitcoins using a credit card including American Express, it is high time to know some dark sides as well. Here they are:
- Your personal information may be at a risk – If you try to make your purchase Bitcoin randomly without any research, then your information may be at a risk.
- Credit score may get impacted – The more credit gets utilized, the higher will be the score affected. There are times when users fail to keep track of the amount of purchase. Finally, a time comes when their score starts becoming even worse.
These are some risks associated with the buying of Bitcoin using a credit card.
It is possible to purchase Bitcoins using both PayPal and credit cards. But, keeping the convenience and safety in high consideration; it will be better to opt for PayPal.