With the increasing popularity of Bitcoin in the world right now, the most common question people are asking is how to buy them. Different Bitcoin exchanges have different payment methods when buying Bitcoins ranging from electronic payment, bank transfer and the use of credit and debit cards. Debit cards are usually the most convenient because they are cheaper and they don’t require lengthy processing when making payments. However, using them may be a little tricky for some. Unfolding below are five important tips to buying Bitcoin with a debit card.
- Create a Bitcoin wallet
A Bitcoin wallet is akin to a bank account, the difference being the former is used for storing Bitcoin while the latter is used for storing fiat money. Storing your Bitcoins in a Bitcoin exchange is never a good idea due to the poor security measures employed in regards to storing coins. On the other hand, wallets are the best alternatives since they employ high levels of security that keeps your coins secure and out of reach from hackers. After buying Bitcoins in an exchange, transfer them to the wallet you’ve set up for enhanced security, preferably hardware of paper wallet.
- Choose a reputable Bitcoin exchange
Bitcoin exchanges are platforms where you can buy or sell Bitcoins. As noted earlier, different Bitcoin exchanges have different payment methods when buying Bitcoin. Choose an exchange that enables you to buy Bitcoin with a debit card in a smooth and fast way. When choosing an exchange, it’s also important to select an established exchange that is reputable and reliable for trading so that you don’t experience hitches or be scammed in the process.
- Check the fee charged for every purchase
Another important factor when buying Bitcoin is the fee charged. Different exchanges have different ways of charging fees for every Bitcoin purchased using a debit card. Some exchanges charge a flexible fee depending on the number of Bitcoins you want to buy while others have a flat fee regardless of the number of Bitcoins you want to buy. Compare the fees in different exchanges and settle on one that best suits your needs.
- Check the purchase limits
Exchanges usually have a daily or weekly purchase limit when buying Bitcoin with a debit card. This is usually because of technical capabilities that are required when buying Bitcoins. If you intend to buy Bitcoins in bulk (which is more profitable), then it’s important to look for an exchange that supports high buying limits.
- Use instant exchanges
The Bitcoin market is highly volatile which means prices can drift in a matter of seconds. As a trader, you would want to take advantage of price volatility in order to buy Bitcoins at the lowest possible prices. Choosing an exchange that enables you to buy Bitcoins instantly or in a few minutes with your debit card is not only convenient but also profitable for you since it enables you leverage the different prices offered by the market trends.
Generally, buying Bitcoins has never been made this easy. By combining the above tips, you can begin your journey to a successful Bitcoin investment.
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