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How to Buy Cryptocurrency With a Debit Card in 2024
Debit cards are a standard payment method for cryptocurrency purchases across exchanges and brokers. They are also readily accepted with peer-to-peer crypto marketplaces.
This guide helps you purchase cryptocurrency with a debit card. We explore the different platforms, considerations, pros, and cons that involve the use of a debit card to buy cryptocurrency.
Top Cryptocurrency Brokers That Accept Debit Cards
Have a look at our top recommendations where you can use your debit card easily.
- Coinbase: The best cryptocurrency exchange for beginners who want to buy crypto with a debit card.
- Binance: The world’s largest crypto exchange that offers over 500 coins and a wide range of payment methods.
- Crypto.com: The best crypto trading platform for trading crypto on your phone.
- eToro: Popular multi-market broker that is regulated in 7 jurisdictions around the world.
What Is a Debit Card Cryptocurrency Broker?
These are brokers who accept the use of debit cards for the purchase of cryptocurrencies such as Bitcoin and Ethereum.
These brokers integrate with payment network processors such as Visa and Mastercard. Banks who operate on these processors can allow their clients to buy crypto from brokerage firms easily.
Crypto brokers are gaining traction by offering a variety of trading instruments useful for professional trading. There is also an array of crypto offerings available although these may be limited to the main cryptocurrencies.
What Crypto Platforms Accept Debit Cards?
Crypto traders can buy crypto with a debit card on a majority of reputable platforms. Care should be taken where a debit card is used since the card links the platform directly to the bank account. Users may be subjected to fees, although many platforms offer incentives on the first debit card deposits.
Platforms are also increasingly only accepting 3D secure Visa and Mastercard debit cards. This protocol makes it secure for online transactions. Some of the platforms to buy crypto with a debit card are:
P2P Marketplaces
These are non-custodial marketplaces that provide a medium where crypto sellers and buyers meet. A majority of P2P platforms deal with the major cryptocurrencies only, especially Bitcoins. Sellers register on the platform and advertise their crypto, defining the number, price, and other terms of trade. Buyers then browse the offers and select what suits them.
Buyers have to filter for sellers who accept debit cards as a form of payment. The purchase is protected through the use of an escrow service.
Due to the nature of the trading model, many P2P platforms are available in many jurisdictions. They are also not subject to heavy regulations, unlike brokers and crypto exchanges.
Some popular P2P platforms that accept debit cards include Remitano, Binance P2P Localcryptos, and LocalBitcoins.
Crypto Exchanges
Exchanges are the most popular method to purchase cryptocurrency using debit cards. They are custodial platforms that can hold funds and crypto-assets. Users deposit fiat currency or crypto to the exchange which is exchanged for a cryptocurrency.
Almost all exchanges have integrated debit card services on their platform. Buyers consider the method easy and secure. Some of the top exchanges that accept debit card payments include Coinbase Pro, Coinmama, and CEX.io.
P2P Lending Platforms
Just like the P2P marketplaces, these platforms run without a central authority. They facilitate engagement between borrowers and lenders. Lenders earn interest on their cryptos, while borrowers get low-interest loans.
For example Ethereum loans collateral can be in the form of fiat or crypto. Traders can deposit funds using debit cards. Examples include BTCPOP and AAVE. Also you can get crypto loans without a collateral.
Brokers
Crypto brokerage firms are intermediaries between crypto markets and traders. Like P2P marketplaces, many brokers provide a limited range of crypto compared to exchanges. Brokers, however, provide advanced trading options like a contract for differences (CFDs), spread betting, margins, and futures.
Investors can leverage their investment and stand to gain a lot more. Examples of brokers who accept debit cards are eToro and Binance.
How to Buy Cryptocurrency With a Debit Card?
The prerequisite for a successful purchase is finding a good exchange platform. Consider the reputation, security, and fees before opening an account. Exchanges can be accessed online and through mobile apps.
Here are steps on how to buy cryptocurrency with a debit card:
Step 1: Opening an Account
You will be required to provide your KYC information (Know your customer data). Where debit cards are involved, most exchanges will require full KYC verification. This requires the submission of personal details and a government-issued ID.
Step 2: Select Debit Card as a Payment Method
From the variety of funding methods, select the debit card option. Fill in the debit card information required including card number, card expiration date, card security code (CVV/CVC), and a valid postal code.
The card’s validity may be checked, and you may need to authorize the transaction through your mobile or bank app.
Step 3: Initiate the Trade
Select the cryptocurrency, e.g. Bitcoin; you wish to buy. Enter the number of Bitcoins or the amount you wish to spend on the cryptocurrency.
Step 4: Execute the trade
Click buy and confirm the transaction details. Finalize the transaction.
How to Deposit and Withdraw via Debit Card
Depositing and withdrawing with a debit card should be straightforward in most brokers and exchanges.
Deposit
There are two ways to make a deposit:
Approach 1
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Step 1: Select “Buy”, and choose the cryptocurrency you want to buy, e.g. Ethereum.
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Step 2: Enter the amount you wish to spend.
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Step 3: The next interface will require you to enter a payment method. Select debit card. Fill in the card details. Most exchanges will require a complete match between the address on the exchange and the debit card.
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Step 4: A payment request will be triggered to the bank. (You may receive a transaction confirmation request from the bank)
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Step 5: Money will be deposited to your account on the exchange, which will allow you to complete the crypto purchase.
Approach 2
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Step 1: Find the payment options link on the exchange/broker.
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Step 2: Select the debit card option and enter the amount you wish to deposit.
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Step 3: Buy the cryptocurrency of your choice.
Withdraw
Getting money out of the exchange is one of the most critical processes for many investors. It is advisable to use a Visa/Mastercard fast funds enabled debit card that facilitates real-time payment processing.
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Step 1: Click the withdrawal link.
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Step 2: On the interface, confirm the funds are available.
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Step 3: Select debit card as your preferred withdrawal option and enter the amount to withdraw.
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Step 4: Confirm the transaction details and finalise the transaction
What Should I Look for in a Debit Card Cryptocurrency Broker?
Here is what you should consider when searching for a debit card cryptocurrency broker.
Security
The first step is to choose an exchange with legitimate security provisions. Your data, crypto assets, and funds need to be protected.
Some aspects to check include cold offline storage, 2FA, insurance for assets on the exchange, bug bounty programs to identify security loopholes, and notifications when fund transfers occur.
Jurisdiction
Not all platforms are not available in all countries. Even in a country like the USA, some exchanges do not operate in specific states.
Low Withdrawal and Deposit Charges
Like credit cards, debit cards may be subject to fees on deposit and withdrawal. For instance, platforms like Coinmama charge a 5% fee on debit card deposits.
The good news is that some of the top brokers generally do not charge fees for debit card deposits or withdrawals, e.g., eToro and Avatrade brokers. Traders should note that there might be minimum deposit requirements.
Variety of Trading Options
For those seeking to trade crypto assets, especially Bitcoins, there are a variety of trading instruments available on some exchanges. Some of the popular trading options are CFDs and spread betting. Crypto margins and futures are also available in some of the brokers.
Reputation
It cuts across customer service, security, availability, and fees. We recommend investors sign up to established and authentic crypto brokerage firms. Browse third-party websites or on forums like Reddit and discord to check their reputation.
Ease of Use
Simplicity is vital even for brokerages and exchanges. Platforms like Coinbase are easy to use and navigate.
This takes away most of the worry while trading. The tradeview, payment options, indicators, and charting tools should be easily accessible.
Risk Management
Features like Stop Loss, Trailing Stop Loss, and Take Profit are paramount to automate and make trading easy, prevent losses, and lock in profits.
Regulatory Approval
Traders need to engage crypto brokers certified by regulatory bodies in their countries. This will ensure disputes are easily resolved. Unregulated brokers may be out to scam people. Some of the heavily regulated brokers are Avatrade and Plus500.
Should I Buy Cryptocurrency Using a Debit Card?
Here are some of the pros and cons of buying cryptocurrency with a debit card.
- Using a debit card is an easy way to directly purchase cryptocurrency with fiat currency.
- Easy and fast way to purchase crypto assets even for non-technical individuals.
- Debit cards that utilise 3D security are better secured to avoid online fraud.
- Card issuers and exchanges charge hefty fees. For instance, Coinmama charges a 5% fee on crypto purchases via debit cards.
- Many banks have a limit on the amount debit cardholders can use on their cards.
- It is not possible to buy cryptocurrency anonymously using debit cards.
- Exchanges will require traders who use debit cards to verify their personal information, exposing their personal information.
Is Using a Debit Card the Best Method to Buy Cryptocurrency?
There are better ways to purchase cryptocurrency, like bank transfers. However, Debit cardholders have the advantage of fast deposits, which investors can take advantage of during volatile markets. Debit cards suffer from the possibility of higher deposit fees and limits.
What Are the Alternative Payment Methods to Buy Cryptocurrency With?
Alternative payment methods depend on the platform and jurisdiction. For instance, a payment option like ACH transfers is available in the USA but not in China. Some platforms like Paxful provide about 300 payment methods. Some of the more common payment methods are:
Bank Transfers
Bank transfers are the most preferred method of deposit to crypto exchanges. They are mostly free and can allow for bigger deposit limits in some jurisdictions.
Bank transfers may take three to five days while instantaneous in other cases. Some of the popular banking systems acceptable on exchanges/brokers are:
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SEPA – Europe
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ACH transfers – USA
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Faster payment – United Kingdom
Wire Transfers
Mainly used to wire money from one entity to another electronically. Examples of wire transfer systems are Fedwire and SWIFT.
PayPal
It is an online payment service that operates globally. Some exchanges/brokers offer PayPal as a funding and withdrawal option. Other notable companies that offer similar payment solutions include Apple Pay, Google Pay, Neteller, Venmo, Payoneer, and Skrill.
Credit Cards
Although not the best way to fund your account due to high fees, you are likely to find a credit card option where there is a debit credit card option. Visa and Mastercard cards are readily accepted in some exchanges like CEX.io.
Cash in Person
crypto vendors and buyers can meet and conduct the exchange. This is popular for individuals who want to buy crypto assets anonymously.
Gift Cards
Some popular gift cards include iTunes and Amazon gift cards. Investors can find platforms, especially P2P platforms, where sellers accept gift cards.
Final Thoughts
Many platforms allow traders to buy crypto with debit cards. Debit cards are linked directly to accounts that have funds.
Debit cards are a valuable method because transactions are processed within a reasonably short time. On the downside, the card issuer and exchange may levy a fee on the deposit.
FAQs
Can I buy cryptocurrency anonymously with a debit card?
It is impossible to buy cryptocurrency anonymously because debit cards bear personal information. Partial anonymity may be achieved when using P2P platforms to connect with a crypto seller.
How fast is buying cryptocurrency with a debit card?
The speed depends on the platform. A majority of exchanges have given a one-hour wait period. However, platforms like eToro process debit card deposits almost instantly.
Do I need a crypto wallet?
Many exchanges provide wallets where users can store their cryptocurrencies, e.g., Gemini wallet. Investors should immediately transfer their crypto assets to an external wallet. There are many desktop, mobile, and tablet wallets you can easily download online, e.g., Exodus and infinito wallets. For significant investments, we recommend the use of hardware wallets like Ledger.
Are there low fees when using a debit card to buy cryptocurrency?
Yes, some exchanges and brokers do not charge debit card deposits. Some exchanges/brokers charge a fee for debit card deposits, which may be as high as 5%.
Can I hold cryptocurrency in my debit card account?
No, investors cannot hold cryptocurrency in their debit card accounts.
Can I buy other cryptos using a debit card?
Yes, investors can use their debit cards to purchase cryptos such as Bitcoin, Ethereum, and Litecoin.
Can I buy cryptocurrency with a debit card instantly?
Timelines vary depending on the broker/exchange and bank. Most exchanges may take upto one hour. Expect transaction processing to take more than 10 minutes on most exchanges.
Is a debit card the easiest way to buy cryptocurrency?
This will depend on your jurisdiction and exchange. In the UK, faster payments are easier and quicker than debit cards. Compared to bank transfers, debit cards are easier in many regions globally.
Does Coinbase accept debit cards?
Coinbase accepts debit cards that support 3D-secure.
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