Should You Buy Bitcoin With A Credit Card
At the beginning of 2017, a single bitcoin was worth US$997.69. It has now passed the US$4,000 mark. If you go back to the beginning of 2013, it was worth $13.30. You don’t have to be a genius in mathematics to understand how monumental its growth has been. And while investors do warn that a correction may be overdue, they’re far from pessimistic. Yes, bitcoin is not immune from the vicissitudes of human nature that account for the falls in traditional currencies. But as of yet there’s no sign that its growth is slowing down.
Should you buy bitcoin? If you have money that you’re looking to invest, there’s a good chance the answer is yes. The good news is that, its rise in value has been accompanied by an increase in the number of ways you can purchase it.
It’s no longer so difficult to buy bitcoin with a credit card. It is actually one of the easier ways to invest in bitcoin. Since good credit cards help earn rewards and manage your spending and debt, many credit card holders want to use their cards for everything, after all. Here’s how you can go about it.
Get a bitcoin wallet
Using a bitcoin wallet is the best way to secure your bitcoins. A bitcoin wallet keeps your bitcoins safe, as well as provides the easiest way to make use of your bitcoins. Make sure you have one before you buy bitcoins, as you won’t want your online currency to be at risk for any amount of time. Bitcoin wallet hardware is generally considered more secure, but there are some excellent software options available.
Start looking for an exchange
There is already a large amount of bitcoin exchange companies out there. The number is only growing with bitcoin’s popularity. But what factors do you need to take into account to choose which one is best for you?
Check out the fees
Every bitcoin exchange will charge a commission on all credit card transactions. This is usually about 3.75% or more. This is in contrast to debit card purchases, which are generally free of charge.
Some websites will offer bonuses on money spent. Coinbase, for example, gives you an extra $10 when you buy more than $100 worth of bitcoin. Of course, this won’t be your main consideration, but it does leave you with a feeling of goodwill towards the company.
All exchanges have buying limits on a daily or monthly basis. If you plan on investing a large amount of money in bitcoin, you’ll need to choose a service with high buying limits. Some service providers have monthly limits as low as $600 a month, while others will allow you to buy $5,000 worth of bitcoin per day.
Some will have no intention of withdrawing their bitcoin value any time soon. They want to watch their money grow, ideally investing more and more over the days and months. But withdrawal options will always be a concern. In case things go south, it’s important to know you can get your money out fast. Certain service providers make it easier than others, with options of which currency you’d like your value paid out in, and better transaction speeds.