Sure, there are risks that come with the cryptocurrency market, but more and more investors seems to be willing to take those risks due to the potential of making a profit. This is especially true for the most well-known cryptocurrency the Bitcoin. As many new investors join the digital currency markets the options to buy or sell Bitcoin increases.
The cryptocurrency´s DNA is digital, therefore the obvious way to trade should be over a network or online. Now, what are the options to buy bitocoin over the net?
Besides cash, making a bank transfer is the most common and secure method of payment for bitcoin sellers. Exchanges and independent bitcoin sellers prefer this option, since the risk is taken by the buyer. Most of the time the seller sends the bitcoin once the bank transfer is confirmed, which could take up to a couple of days depending on the bank sending and receiving the money. Suring this time, the buyer has already sent the money yet still has no Bitcoin to show for it, so you should always double check who you are trading with.
Credit Card or Paypal
Credit card companies didn´t allow the transactions for Bitcoin in the past, yet with more and more customers wanting to get into cryptocurrency investment, some options were needed. It seemed absurd that in an era where everything could be bought online, that you couldn’t purchase a digital currency online with a credit card.
The main concern of the credit card company is that it would be used as a tool for the customer to make illegal transactions.
Credit card users are able to cancel transactions or chargeback by submitting a complaint about the business. For example, they could state that their Bitcoin was never received, even if it was. Since there is no regulations on the bitcoin trade, it is very difficult for the credit card company to track if the bitcoin was actually received or not, therefore will be obligated to cancel the transaction. Since, bitcoin transactions are irreversible the seller could be left with nothing but air, and the buyer will keep his money and also received the bitcoin.
The risk does not only apply with credit card transactions, the chargeback issues can be also experienced with Paypal, since they also allow customers to cancel transactions.
Exchanges around the world are now able to take credit cards and Paypal as a method of payment to buy bitcoin online, however they need to protect themselves. These are some options:
- Coinbase: known as the largest bitcoin exchange is open to receive online payment though credit card. It has an intuitive platform and relatively low fees per transaction. Users from 33 countries around the world are able to trade up to $150 in bitcoin.
- Coinmama: is an exchange specialized in bitcoin transactions with credit cards. They take a premium fee for your transactions, but for some users this is worth it, as without verification you are able to trade up to $150. The verification allows users to trade up to $5,000 on daily basis and up to $20,000 a month. Coinmama provides great support and fast service, but is limited to the US only.
- CEX.IO: this is an exchange with more than 450,000 users that allows transactions with credit cards. Users from Europe, US and some countries from South America are able to trade through this exchange.
- Coinhouse: is another exchange that allows users to buy bitcoin with credit cards Visa or MasterCard online and even a prepaid debit card. Once the account is set up, users will be able to purchase up to 2,000 euros in bitcoin per day and up to 10,000 euros per month.
- VirWox: is worldwide open exchange that allows trading bitcoin with credit cards, debit cards or Paypal without any verification.