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When Bitcoin first appeared, many people around the world were skeptical. Now everybody wants in on the action. And the most FAQ is: “Can I buy Bitcoins with a prepaid card?”
Well, the answer is yes you can.
In this post, I give you a step by step guide on how to do so. I will also list the best exchange sites where you can buy Bitcoins with prepaid card.
Where you can buy Bitcoins with a prepaid card?
There are several sites where you can get Bitcoins with a prepaid card. Here are the top six.
Coinmama rates among the best Bitcoin exchange sites. Allows you to buy using a prepaid card.
- They charge 6% operations fee
- Available worldwide
This favorite Bitcoin broker will show you how to buy Bitcoins with prepaid card.
- Charges a $3.99 fee
- “INSTANT BUY” option for prepaid
- Available in the US, Europe, Australia
- Trusted and secure
Bitpanda accepts Bitcoins prepaid card. What does it offer?
- 5% fees
- Easy to use
A reputable Bitcoin exchange broker that provides services globally.
- It allows you to buy Bitcoins with prepaid
- 5% fee levy charged
It offers a wide range of platforms to buy and sell Bitcoins, including via prepaid card.
- Charges 1% on transactions
- Available globally
- No buying or selling limits
It’s a new player on the scene but has a good reputation already. They undertake verification process and openly display fee charges.
- Available worldwide
- 3% fee on transactions
How to buy Bitcoins with prepaid card
Another FAQ has been “Can you buy Bitcoins with prepaid card?” Well, we know we can. Let’s then try to find out how to buy Bitcoins with prepaid card.
There may be many site Exchanges out there, but purchasing Bitcoins with prepaid card is a simple six-stage process.
These are the best websites that offer instant ways to buy Bitcoins using your prepaid card:
The exact procedure may slightly differ, but it will be something like this:
Step 1: Find a wallet.
- Download a wallet to your computer’s drive, Smartphone or tablet.
- For beginners, I recommend Coinbase because it is easy to download and navigate. It also allows you to login to some devices.
Step 2: Select a good exchange.
- This level requires that you be careful as you choose because there are many scammers out there.
- We mentioned a few of the best exchange website earlier. Choose one of them. I recommend, again, Coinbase, Coinmama or Cex.io for their ease of use.
Step 3.: Open an account
- sign up using your name and email
- Click create account
Step 4: Select payment option
- In settings mode, find the payment method option
- click and choose buy with credit card/debit card
- add your prepaid card as a payment option
Step 5: Verify your account
- Key in your ID and submit
- Verification will take a short while.
- Once verified, you are ready to buy your first coin.
Step 6: Buy Bitcoins
- Most of the exchanges have great user interfaces. It won’t be challenging to locate the “BUY BITCOIN.”
- Buy with prepaid card using the funds in your account.
- Move your Bitcoins to your wallet.
The pros and cons of buying Bitcoins with Prepaid card
Purchasing Bitcoins with prepaid card certainly has its pros and cons.
- Easier than handling cash
- Fastest way to get the Bitcoins
- Controlled spending since you can only spend what is on your card.
- Verified accounts provide some sense of security.
- Risk of losing card information to fraudsters
- Limitation on amount of Bitcoins one can buy
- No anonymous transactions
Other methods of buying Bitcoins
There are several different methods available to Bitcoins. While some will link to your wallet, here is a list of the more “direct ways”:
- By face to face cash transfer between seller and buyer
- At bitcoin ATMs where you can buy
- Through mobile apps on Android and iOs
- Gift cards, western union, and PayPal
How to know if a bitcoin exchange is safe?
The number of Bitcoin exchange websites keeps increasing, as Bitcoins keep getting more common. From one hand, it is good, because as a user you have a wider range of options to choose from. From the other hand, with the increase of Bitcoin exchange platforms, the number of scams increases as well. To avoid additional issues and misunderstandings here is what you need to check to find out whether a Bitcoin exchange website is legit or not:
- Fees: Make sure the website you choose, offers fair fees. Depending on the payment option you choose, not only the fees may vary from one another in a certain website (e.g. usually buying Bitcoin with a credit card is more expensive than with bank transactions), but also it may vary from website to website.
- Limitations: Double-check what are the minimum and maximum amount of Bitcoins a website enables you to purchase. Also, note that many websites allow users buying Bitcoins anonymously and with no registration in case of small purchases.
- Security: This is probably the most important feature that you have to pay attention to, especially if you do not want to lose all of your investment. Read the terms/conditions of the website, and see whether the conditions are reasonable enough. Also, as you know, you cannot buy Bitcoins unless you have a Bitcoin wallet. To make the process smoother many Bitcoin trading websites offer their users getting an online Bitcoin wallet from their website. It is very convenient but you have to be aware of possible risks, such as becoming a victim of a hack, theft, etc. The more secure a website is the more enjoyable experience you will have.
- Reputation: When it comes to investments, no one wants to waste money on untrustworthy companies. This case is not an exception. Make sure the website you are buying Bitcoins from is not a scam and has a good experience of buying/selling Bitcoins.
- Ratings and Reviews: These appear to be a good way of learning about a website’s reputations. Check forums, comments, and groups where people share their experiences of dealing with certain companies.
How to keep your Bitcoins safe
To do this, you need a wallet. A wallet is a software that receives, holds and manages your Bitcoins. It is a series of codes that allow you access to the Bitcoins. There are four main categories of wallets:
These four split into two: hot wallets and cold wallets
Hot wallets are merely those that use an internet connection like a website or Smartphone. Hot wallets are best for routine transactions but make poor storage that may not be secure.
Cold wallets on the hand are electronic devices designed for cold storage away from the internet, e.g., hardware wallets.
When choosing the best wallet, consider the following:
- Security- is the wallet secure from external threats like hacking?
- Reputation – how is the public perception? Is it positive or negative?
- Ratings – does my choice rank higher or lower? Lower is a ‘no.’
- Support – do I have support from the parent company or website?
Regarding the above considerations, the best hardware wallets on the market with a high degree of security are Ledger Nano S, KeepKey and Trezor. However, one standard feature among them is their hefty price.
So, how do you keep your Bitcoins safe after purchasing them? Follow the simple guide below.
- Move your Bitcoins to your offline wallet immediately after buying
- Secure your wallet using private keys/codes
- Create backups of the codes/keys and keep them in a secure place- write it somewhere and keep it in a safe place
- Create an encryption for the wallet- this guarantees you additional security.
Bitcoins are real, and the value of a single Bitcoin has appreciated so much so that trading in them is a real business. You have read about how to buy Bitcoins with a prepaid card and learned how to store them. Now go on and make it a reality.
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