Different Methods to Buy Bitcoin
- Using PayPal to Buy Bitcoin
- Using Credit Card to Buy Bitcoin
- Other Methods to Buy Bitcoin
Bitcoin, by many, is been considered a primary asset to invest in. The recent price surges have caught a lot of media attention and are driving a lot of new investors towards the crypto market. Even the process of investing in Bitcoin is very easy, which has resulted in extending its reach to common people instead of just a few rich folks.
Bitcoin can be purchased from mainstream services such as PayPal and various crypto exchanges. Another way through which an investor can own Bitcoin is by investing in companies that have Bitcoin on their balance sheets.
Using PayPal to Buy Bitcoin
Two methods can be adopted to buy Bitcoin through PayPal.
First: – It is more convenient of the two methods. Cryptocurrencies can be purchased through a PayPal account that is connected to a payment mechanism such as a bank account.
Second: – PayPal account balance can be used to buy cryptocurrencies from a third-party provider. This option is not so convenient because few parties allow the purchase of Bitcoin through PayPal on their platform.
Four cryptocurrencies can be purchased directly over the PayPal platform; they are Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
Using Credit Card to Buy Bitcoin
The process of buying Bitcoin through a credit card is similar to buying Bitcoin with a debit card or through ACH (automated clearing house) transfers. To buy Bitcoin, a person will be required to enter his credit card details and authorize the transaction. But buying Bitcoin with credit is not at all recommended. The reason being:
A credit card is not accepted as a mode of payment by all exchanges because of the risk of fraud and the processing fee associated with it. This can also be regarded as a blessing in disguise for the consumers. The reason is, apart from transaction fees, a user may have to pay processing fees that the exchange may pass on to its consumers.
Another reason is that buying cryptocurrency from a credit card can be expensive. Credit Card companies may charge heavy fees and high-interest rates on such transactions as they treat Bitcoin purchases as cash advances.
Other Methods to Buy Bitcoin
Bitcoin ATMs are like in-person Bitcoin exchanges. These ATMs can be used to buy Bitcoin, through cash, which is inserted into these machines to make the purchase. Once purchased, the Bitcoin can be transferred by the users to their wallets through these machines.
These exchanges allow buyers and sellers to come in direct contact with one another. Through these exchanges, users can post their request to buy and sell Bitcoin, along with the payment information. Allowing users to directly choose the trading partner with whom they wish to transact.
There are very few mainstream brokerages that offer Bitcoin trading and purchasing options to their users. This is because of the uncertainty that has surrounded the regulatory status of Bitcoin.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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