Understanding Bitcoin Payment Methods

Guest  |  Jan 28, 2021

We know how bitcoins can be confusing for beginners and even the pros. bitcoin trader site will help you find and choose a payment method for purchasing your bitcoins.

Where Should Bitcoins Be Bought from?

  • The bitcoins can be bought on the internet via debit card, credit card or a bank transfer.
  • Now bitcoins can be obtained from the bitcoin ATM Vestibules around you.
  • Purchasing bitcoins through cash payments and/or via cash deposits.
  • PayPal’s revolutionary innovation also allows users to convert PayPal to Bitcoin online.
  • The aforementioned information just outlines the forums where bitcoins can be bought from. The information above was just a short summary of the places and sources you can purchase bitcoins from. Let's dive into the details now.

    Investors will have to exchange their local currency like Japanese Yen or U.S. Dollars into bitcoin units, in order to purchase bitcoins. Following are the 4 most common payment methods:

    Purchasing Via Credit/Debit Card

    One of the most common ways of doing online shopping is via credit or debit cards. Therefore, purchasing bitcoins online via the credit card can be a convenient and familiar way for investors.

    Pros of purchasing bitcoin via credit or debit card?

    • Paying online using bank credit or debit cards is a way people are mostly familiar with, therefore can be an easy and convenient way to buy bitcoins.
    • Bitcoins are instantly delivered to the payer, upon the completion of payment verification online.
    • Cons of purchasing bitcoin via credit or debit card?

      • A relatively higher fee will be charged upon online purchase via credit cards; given that you are not in a hurry and have the time to wait, perhaps go for a bank deposit as its fees are relatively lower.
      • A relatively less private way to purchase your bitcoins given your identification will be required to purchase via credit card.
      • Please go through our complete guide on ways through which you can purchase bitcoins with a credit or debit card. how to buy bitcoins with credit card or debit card.

        Purchasing via Bank Transfer

        One of the best ways to purchase bitcoins is through Bank transfer.

        Pros of Buying Bitcoins via bank account or transfer?

        • One of the best and most preferred ways of buying bitcoins in bulk.
        • The fees charged on bank transfer is relatively the lowest, giving you the best price for buying bitcoins in the market.
        • Cons of Buying Bitcoins via bank account or transfer?

          • A comparatively less private way to purchase your bitcoins given your identification will be required.
          • The biggest disadvantage is the time it takes i.e. up to 5 days for a bank transfer to complete in the U.S.
          • Go through our complete guide on ways through which you can purchase bitcoins with a credit or debit card. how to buy bitcoins via bank transfer.

            Purchasing via Cash

            Cash deposit is unarguably one of the fastest and most private ways bitcoins can be purchased. Upon confirmation of cash payment, it can take as low as 2 hours to receive the bitcoins!

            Pros of Cash Exchanges?

            • They are more private, as no identification or personal information is required in most cases.
            • The short amount of time makes it very instant and valuable for investors.
            • What are cash exchanges bad for?

              • The users have to pay a cost for obtaining such privacy. The Bitcoin ATMs charge a 5-15% premium cost beyond the market’s rate, which varies across areas within this range.
              • There might be a possibility of getting scammed or robbed, therefore one needs to be extremely alert and in accordance with the rules laid out by the exchanges.
              • Bitcoin ATMs are situated throughout the world which allow you to buy bitcoin using cash.

                Just insert cash into the machine, and the bitcoins will be delivered to your wallet.

                Our Bitcoin ATM map will guide you towards your nearest Bitcoin ATM.

                Pros of Bitcoin ATMs?

                • They tend to be more private and securer, and in most cases do not require any personal or private information of the user.
                • Using an ATM can be a much more convenient way than most others, given you have it in your area.
                • Cons of Bitcoin ATMs?

                  • The users have to pay a cost for obtaining such privacy. The Bitcoin ATMs charge a 5-15% premium cost beyond the market’s rate, which varies across areas within this range.
                  • Purchasing via PayPal

                    Users of PayPal cannot buy bitcoins directly with PayPal. Also, according to its Terms & Conditions, PayPal does not allow its users to sell bitcoins for PayPal.

                    Strategists at Bitcoin Pro do not suggest buying bitcoins via PayPal. Claiming that the buying fee PayPal charges is relatively higher and also there is a possibility that the user’s PayPal is linked with their credit cards which can themselves be used to purchase bitcoins at a comparatively much lower fee.

                    However, there are a few hacks to get around this. You can buy other digital tems with PayPal and sell those items for bitcoin. It's all explained in our guide on how to buy bitcoins with PayPal.

                    Advantages of Purchasing Bitcoins via PayPal?

                    • Given the condition that you already possess PayPal Credit, it is a much more convenient and quick way of buying bitcoins i.e. converting your PayPal Credit into Bitcoin.
                    • Disadvantages of purchasing bitcoins via PayPal

                      • The charges incurred with PayPal are beyond 12% - Therefore buying the bitcoin with cash or a credit card sounds like a more sound plan for an investor.
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