How to Purchase Bitcoin Using a Prepaid Card – The 7 Best Methods In 2022
Prepaid cards have long been a convenient method of payment for products and services. Today, prepaid cards are increasingly used to purchase cryptocurrency. As an alternative to credit cards, platforms are rapidly accepting these cards as a method for users to acquire bitcoin. While purchasing bitcoin with a prepaid card may not be the least expensive way to purchase the world’s largest digital asset, there are a number of advantages for the buyer.
This article describes how to purchase Bitcoin with a prepaid card and which exchanges offer such transactions.
How to Purchase Bitcoin Using a Prepaid Card – Quick Guide
Follow these steps to buy Bitcoin with a prepaid card:
1. Create an account on a cryptocurrency exchange. Find and evaluate the top crypto exchanges and trading platforms that accept prepaid cards for Bitcoin purchases. eToro is an example of an ideal site for Bitcoin prepayment purchases.
2. Complete ID verification. Prepaid cards are considered cash and are therefore subject to stringent identification verification regulations.
Make a deposit with a prepaid card. Connect the card to the platform or choose prepaid cards from the list of accepted payment options. Determine the expenditure amount and fund the account.
Invest in Bitcoin. Select BTC from the list of assets and fund your account to purchase Bitcoin.
Can Bitcoin Be Acquired With A Prepaid Card?
Bitcoin can be purchased with prepaid gift cards. Several cryptocurrency exchanges permit the purchase of Bitcoin with a prepaid card in a few straightforward steps. Paxful is an example of a trading platform that allows customers to purchase Bitcoin with prepaid cards. Prepaid cards, sometimes known as daily cards, are comparable to debit and credit cards, with the exception that they are not issued by a bank or financial institution. The prepaid card may be loaded with cash, used to purchase Bitcoin, and reloaded when funds are depleted.
Where Can I Purchase Bitcoin Using a Prepaid Card?
There are a variety of ways for acquiring Bitcoin with prepaid cards. Below, we examine the top crypto exchanges that permit consumers to purchase Bitcoin with prepaid cards.
1. eToro Offers the Lowest Fees
eToro is a global financial company that provides a comprehensive solution for crypto trading via three products: a trading platform, an advanced cryptocurrency exchange, and a crypto wallet. Beginners and seasoned coiners alike can open an account in a matter of minutes. They are only need to create a username, email address, and password. Users must authenticate their identity and address in order to use all supported features of the platform.
eToro offers access to additional markets, including as Stocks, Commodities, ETFs, Indices, and Forex, in addition to its support for over 120 cryptocurrencies. eToro offers a virtual portfolio option with a $100,000 sample account balance. Use this practice account to replicate actual market transactions. The platform also has a social trading function that enables users to connect with more than 25 million other users and locate top-performing traders to imitate.
To purchase Bitcoin or other assets, customers must fill their accounts with a deposit method, such as a debit or credit card. Mastercard-owned Maestro prepaid cards are also supported by eToro. The minimum and maximum debit card deposit amounts are $10 and $40,000 per transaction, respectively. Additionally, the approved fiat currencies for prepaid cards include the
USD, GBP, EUR, and AUD are the four major currencies.
In the following steps, eToro customers can buy Bitcoin with prepaid cards.
Register for an account and finish the verification procedure.
Link your account to your prepaid card and transfer funds.
Purchase Bitcoin. eToro also allows users to purchase Bitcoin fractions.
Using a prepaid card to trade on eToro will incur a flat 1% fee in addition to the spread. Although the prices are not inexpensive, the site is user-friendly and accessible in numerous regions. eToro, for example, has many regulatory authorities depending on the location. In Australia, the Australian Securities & Investments Commission (ASIC) regulates eToro. Other regulating authorities include the FCA and CySEC in the United Kingdom and Europe, respectively.
2. Coinbase – Best For Beginners
Coinbase, headquartered in San Francisco, was formed in 2012 to facilitate the buying, selling, and storage of bitcoin. Today, Coinbase is a publicly traded cryptocurrency exchange. Additionally, it is geographically fragmented and is currently accessible in over 100 countries.
The outstanding aspect of Coinbase is its user-friendly interface, which facilitates a flawless trading experience for both novice and expert traders. Due to its user-friendliness and support for a variety of assets, Coinbase has become the platform of choice for many novice crypto buyers. The exchange has access to more than 30 million customers worldwide.
Purchasing Bitcoin using a prepaid card is straightforward because the exchange accepts both Visa and MasterCard debit cards. These procedures must be taken to add a prepaid card:
Select Add payment method from Payment methods Prepaid card
Enter your credit card information.
Two tiny, temporary debits are deducted from your account.
Check your card’s transaction history for the two amounts.
Input the two amounts on Coinbase to finish the card verification and adding process.
To purchase Bitcoin with a prepaid card, consumers must select their card from the Buy page’s payment methods dropdown. Note that Coinbase does not yet handle prepaid cards or other cards without a billing address. Before adding a prepaid card, consumers must often present a valid photo identification.
Coinbase allows consumers to purchase Bitcoin beginning with as little as $25. Coinbase charges a transaction fee of 0.50% and a prepaid card purchasing fee of 3.99%. There may be additional fees; see our review of Coinbase for details.
Finally, Coinbase insures the digital assets kept in its users’ wallets on their behalf. The Federal Deposit Insurance Corporation (FDIC) insures U.S. dollar accounts to avoid the loss of user funds in the event of a breach.
Best for Gifting Prepaid Cards: Binance
The largest cryptocurrency exchange in terms of trading volume and liquidity is Binance. As of the close of business on 17 May 2022, Binance’s 24-hour volume was about 16 billion U.S. dollars, which was more than double the volume of the second-ranked exchange. Binance, founded in 2017, is a safe and secure marketplace for buying and selling cryptocurrencies through a streamlined process. According to Binance, customers are only three steps away from acquiring their first Bitcoin: create an account, verify their identity, and purchase Bitcoin.
In addition to prepaid cards, Binance offers a variety of payment methods for purchasing Bitcoin, including bank transfers and cash. The exchange accepts deposits in numerous fiat currencies, including AUD, USD, EUR, INR, CNY, and RUB. It also enables the usage of stablecoins to purchase cryptocurrencies, including Binance USD (BUSD), Tether (USDT), and Coinbase USD Coin (USDC).
Binance also has a function that allows users to create giftable prepaid cards. The prepaid cards can be redeemed on the Binance platform and the funds can be used to fund a wallet. Additionally, Binance prepaid cards can be used to spend cryptocurrency at multiple retail locations.
Binance offers relatively cheap costs for prepaid card transactions. Users should anticipate a 0.10 percent spot-trading cost and a 4.50 percent debit card fee. Additionally, they can purchase a fraction of a Bitcoin for a measly $15.
Crypto.com – Best App To Purchase Bitcoin Using Prepaid Card
Crypto.com was founded in 2016 and is one of the leading global cryptocurrency exchanges, with over 10 million members. Crypto.com is an outstanding mobile crypto exchange app since it provides a comprehensive digital asset trading and investing ecosystem that is accessible from a mobile device and is currently accessible in 90 countries globally. Its digital asset ecosystem consists of its own blockchain, Crypto.org Chain, a local token called CRO, and a crypto visa card, among other things.
The platform is one of the best mobile applications for purchasing Bitcoin and other digital assets. There are numerous payment options, such as debit cards, credit cards, and prepaid cards. Crypto.com offers a streamlined, user-friendly experience for customers wishing to buy Bitcoin with a prepaid card.
Simply add a prepaid card as a payment option and verify it before using the app to purchase Bitcoin. Locate BTC, then click “Trade.” Enter the dollar amount you wish to spend on Bitcoin, and the purchase will appear in your BTC wallet.
Additionally, Crypto.com offers prepaid Visa Cards that function identically to traditional bank credit cards. The Crypto.com Visa Card enables consumers to accumulate and earn rewards through common purchases such as paying for a Spotify subscription, reserving an Airbnb, and traveling abroad. All prizes are paid in CRO, the native currency of Crypto.com, and put into a Crypto Wallet. In the Crypto.com mobile app, users can load their crypto card using a fiat wallet, crypto wallet, or debit/credit card. To gain knowledge regarding Crypto.com VISA cards.
Coinmama – Top Choice for Gift Cards
Coinmama was formed in 2013 with the intention of facilitating Bitcoin purchases. Since then, the exchange has expanded to service more than 3 million consumers in 190 countries. Currently, customers can acquire Bitcoin with a debit card, credit card, or bank wire transfer. To purchase Bitcoin with a prepaid card, consumers must first sign up for a Coinmama account, get verified, and create a cryptocurrency wallet.
Coinmama provides a user-friendly and intuitive trading platform, but the crypto options are limited. The platform does not permit trading between cryptocurrencies, and customers may only sell Bitcoin through the portal. In terms of security, Coinmama does not store user funds on the platform. To initiate a money transfer, users require a crypto wallet.
Coinmama enables users to buy and sell cryptocurrencies with a variety of payment options, including Fedwire, SWIFT, Apple Pay, Google Pay, and Skrill, among others. Bitcoin can also be purchased with Visa or Mastercard credit cards, debit cards, prepaid cards, virtual cards, and gift cards. However, a 5% expedited fee is assessed when this payment option is utilized. Simply multiply the quantity to be purchased by 1.05 to determine the overall expense.
CEX.IO Is the Best Option for Payment Card Types
CEX.IO is an excellent platform for purchasing Bitcoin with a prepaid card and 70+ other cryptocurrencies. There are numerous prepaid and debit card options available. Users must form an account, link a payment card, and pass identity verification in order to acquire Bitcoin with a prepaid card. Users can now navigate to the Buy/Sell page and select a currency from the Buy drop-down menu. There are normally four boxes containing the most often purchased quantities of digital files. Enter the amount, and the fiat equivalent will be calculated for prepaid card deposits.
After selecting the amount, customers can click the Buy button to view the transaction details, which include the price, amount, number of fiats to be paid, and deposit commission. After verifying the purchase, the Bitcoin is deposited into the customer’s CEX.IO account. On the Finance page, users may always check their account balance.
CEX.IO’s fees are based on a maker/taker basis. A maker order increases market liquidity but cannot execute instantly. Depending on the trading volume, the charge for these orders ranges from 0% to 0.16%. Taker orders eliminate market liquidity, and orders are executed promptly. Based on trading volume, fees range from 0.1% to 0.25 %. When using Visa or MasterCard, a deposit of up to 2.99% applies.
Paxful Is Best For P2P Prepaid Transactions
Paxful is a prominent P2P (Peer-to-Peer) trading platform that enables individuals to trade cryptocurrencies directly with one another. It connects buyers and sellers, who can utilize more than 350 various payment methods, including prepaid cards. To purchase or sell Bitcoin, consumers must compare posted offers and select the one that best meets their requirements. Paxful safeguards every transaction with an escrow account, and funds are only released upon confirmation of payment.
Paxful allows Bitcoin purchases with prepaid debit cards. Begin by registering for an account, which includes a Bitcoin wallet at no cost. Choose a prepaid debit card as the method of payment and peruse the available deals from different sellers. Users must authenticate their identification prior to successfully making a transaction.
Paxful does not assess a fee for the purchase of cryptocurrencies. However, vendors are charged a fee that varies by payment type. The fees for the majority of payment methods range between 0.5% and 1%. This cost could go up to 5% when Amazon gift cards are used to purchase Bitcoin.
Advantages of Using a Prepaid Card to Purchase Bitcoin
Using a prepaid card to purchase Bitcoin can offer significant advantages over other payment methods. Included among the benefits are:
• Buy Bitcoin Instantly: Due to the quick processing period for prepaid cards, consumers will receive Bitcoin in their wallets virtually immediately after purchasing Bitcoin. This is a significant advantage over payment methods like bank transfers, which can take up to five days to execute a transaction.
• They are beginner-friendly: Compared to other payment options, prepaid cards are exceptionally easy to use and beginner-friendly. Simply submit the card information and verify it, and you’re ready to make your first Bitcoin purchase.
• Prepaid cards are easy to obtain: Compared to standard debit or credit cards, prepaid cards are easier to obtain. In most situations, in order to qualify for a standard credit card, applicants must undergo a credit check, and the entire procedure can be tiresome. To obtain a prepaid card, users need only complete out the necessary forms and load the card with the relevant funds.
• Less irresponsible spending: Prepaid cards allow customers to spend just the available balance. This ensures that cardholders cannot overdraw their accounts, as spending is restricted to the available balance.
Negative Aspects of Purchasing Bitcoin Using Prepaid Cards
Using prepaid cards to purchase Bitcoin has the following disadvantages.
• Not all issuers support cryptocurrencies: not all prepaid card-issuing organizations are crypto-friendly. As a result of their perceived threat to the traditional banking system, many banks avoid or even prohibit transactions using digital currency.
• Purchasing Bitcoin with a prepaid card may incur more fees than with other payment options. On CEX.IO, for instance, the bank transfer deposit fee is $0, whereas the prepaid card deposit fee is 2.99%. Additionally, Coinmama adds a 5% express fee for using prepaid cards.
• Fewer platforms: The usage of prepaid cards to purchase Bitcoin is not supported on a significant number of exchanges. In most transactions, the use of gift cards is also less popular.
• No anonymity: Bitcoin and other cryptocurrencies are designed to preserve privacy. Unfortunately, this benefit is lost when purchasing Bitcoin with a prepaid card, as KYC (Know Your Customer) is frequently required.
The majority of platforms do not permit the use of prepaid cards to purchase big amounts of Bitcoin. Frequently, bank transfers are designated for large transactions.
Purchasing Bitcoin Using a Prepaid Card – Comprehensive Guide
As prepaid cards enter the crypto realm, the topic of how to buy Bitcoin with a prepaid card is frequently posed. Using eToro as an example, this section will detail the processes for purchasing Bitcoin using prepaid cards.
Step 1- Create an account with a cryptocurrency exchange.
Users must first create an account with their chosen exchange. In most situations, they must create a username, supply their entire name, email address, and phone number, and generate a password. After registering, the user is prompted to verify the email address linked with their new account.
Step 2 – Verify identification
After confirming their email address, users must pass additional verification steps. They may first need to confirm their phone number. The exchange or platform will send an account-linked phone number a verification code. Users must also provide a legitimate government-issued ID, such as a driver’s license, passport, or any other acceptable form of identification. As part of the identification verification process, individuals must also present an address verification document, typically a utility bill.
Step 3: Load a prepaid card with funds.
After verification, the account is now prepared for its initial deposit. The majority of platforms offer various account funding alternatives, including bank transfer, Neteller, PayPal, Skrill, Credit/Debit card, and others. In this instance, consumers must select Credit/Debit card since they wish to purchase bitcoin with a prepaid card. To transfer funds, they must link the prepaid card account to their exchange. Users are required to complete an additional verification procedure to certify that the card is legitimately theirs. They can then proceed with account funding.
Check the minimum beginning deposit requirement before creating an account. Some platforms impose a minimum deposit amount for users to begin trading, while others have no minimum.
Step 4: Acquire Bitcoin
Once the account has been funded, users can purchase bitcoin. Simply search for Bitcoin, enter the amount you wish to purchase, then press the buy button. Most exchanges permit consumers to purchase a fraction of bitcoin’s current value.
Frequent Requested Information
Am I Required To Complete KYC Before Using My Prepaid Card?
Before using a prepaid card, users must provide personal information to authenticate their identification and satisfy Know Your Customer (KYC) processes. In order to comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules, cryptocurrency exchanges and platforms are needed to complete this procedure.
How quickly can Bitcoin be purchased with a prepaid card?
Using a prepaid card to purchase Bitcoin is nearly instantaneous. Simply input your card details, confirm the transaction, and your Bitcoin will appear instantaneously in your account or wallet.
Conclusion
Several cryptocurrency exchanges accept prepaid cards as payment methods for purchasing Bitcoin. Prepaid cards may not be the cheapest way to purchase Bitcoin, but Bitcoin enthusiasts will appreciate the rapid transaction rates, ease of use, and convenience.
