How to Buy Bitcoin with a Prepaid Card

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If you’re interested in buying Bitcoin with a prepaid card, then you will be glad to know that many platforms who accept Visa and Mastercard offer this option.

Prepaid cards are different from debit cards as they are not linked to your checking accounts. Prepaid cards allow you to buy goods or services with money that you loaded on the card beforehand.

Although this method of acquiring Bitcoins is not the most popular, there are a few services that enable you to buy the coins using prepaid cards. Below we will be listing a few of these services:

Exchanges That Support Prepaid Cards

– Coinmama

Coinmama is an exchange based in 2013 which currently operates from Slovakia. It was among the first exchanges to have a debit and credit card option for purchasing BTC. The platform’s prepaid cards work only for services that support Visa/Mastercard.

In addition to Bitcoin, they also support other major altcoins like Ethereum, Ripple, Cardano, Qtum, and Ethereum classic.

Pros:

  • Supports multiple languages
  • Many payment options
  • Can be used in more than 220 countries

Cons:

  • You cannot sell cryptos
  • Expensive trading fees (5.9%) and card fees (5%)
  • Bank transfers can be made only in EU countries

– Coinbase

Coinbase is one of the most popular and trusted exchanges in the space which has been dealing with cryptos since 2012. The company is compliant with many regulatory requirements, an aspect that may be an issue for users that do not want to give their ID documents. They also support buying coins via a prepaid card.

The fees are lower when compared to Coinmama, being a plus for those that want to buy regularly. Although they have a small crypto selection, Coinbase is constantly adding new ones. In addition to BTC, ETH, ETC, LTC, ZEC, BCH, they also support less popular altcoins such as ZeroX, district0x, DAI, Civic, Golem, Loom Network, and Basic Attention Token.

Pros:

  • Easy-to-use interface
  • Allows you to instantly buy crypto
  • Acceptable trading fees (± 1%) and card fees (3.99%)
  • Has insurance from FDIC

Cons:

  • Has support only for 32 countries.
  • Accounts require extensive verification

– CEX

CEX is a crypto exchange based in London which began operating back in 2013. The trading platform is known for offering cheap card payment methods for buying cryptos. It supports Bitcoin, Bitcoin Gold, Bitcoin Cash, Dash, Ethereum, Ripple, ZCash, and Stellar.

The fiat options supported are Dollars, Pounds, Euros, and Rubles.

Pros:

  • Simple interface
  • Low fees: trading (± 0.25%) and card fees (± 3.5%)
  • Decent exchange rates
  • Good customer support

Cons:

  • High fee for instant buy/sell (± 7%)
  • Does not accept US clients

– LocalBitcoins

LocalBitcoins is a peer-to-peer platform from Finland launched in 2012. They support a wide array of payment options including iDEAL, PayPal, Western Union, and Amazon gift cards among many others. An escrow service is also available, having the mediator role between buyers and sellers should a disagreement occur.

Pros:

  • Transfers have no limits
  • Supports many fiat currencies
  • Many payment options
  • An escrow service is available
  • Low 1% fee on all transactions

Cons:

  • Higher rates
  • Some users reported frauds
  • Low liquidity depending on the region

– Paxful

Another peer-to-peer BTC marketplace, Paxful is a platform which links buyers with sellers. The platform supports a slew of prepaid card types, including the Google Play Gift Card, eBay Gift Card, or the PlayStation Network Gift Card.

Paxful can be accessed by users from almost all countries and also supports conversion in your local currency to facilitate the trading process. The only coin they offer support for at the moment is Bitcoin.

Pros:

  • Transaction fees (1%) incur only for sellers
  • A long list of payment options
  • Features an escrow service

Cons:

  • High exchange rates because the users set the prices
  • Low liquidity on certain cards
  • Higher probability of getting scammed

Buying BTC with a prepaid card | Step-by-step guide

Step 1: Install a BTC wallet 

  • Download and install a wallet that supports Bitcoin.

Step 2: Select an exchange that supports the prepaid option

  • Look for an exchange which suits your price range and other requirements.

Step 3: Sign up for an account

  • Register for an account by using your name and email.

Step 4: Select the payment option

  • Locate in the settings section the payment method option button.
  • Select the buy with credit card/debit card.
  • Add as a payment option your prepaid card.

Step 5: Verify your account

  • Submit your ID documentation or other requested documents.
  • Your identity will be verified shortly.
  • After this procedure is completed, you can start buying coins.

Step 6: Buy Bitcoins

  • Locate the “BUY BITCOIN” button in the exchange’s user interfaces. This should be easy to find.
  • Use the prepaid card which is loaded with the funds in your account to buy Bitcoin.
  • Withdrawal your Bitcoins to your wallet.

Final Thoughts

With this, we conclude our article regarding how and where you can buy Bitcoin by using a prepaid card. Keep in mind that this is not the cheapest option for purchasing the coin, as there are several other alternatives that are more budget-friendly and incur lower fees.

In spite of the astronomical exchange rates on some of these platforms, paying by card probably represents the fastest and most convenient option for users in some countries.

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