The world is changing fast, with the introduction of blockchain technology a lot has changed in the last decade. While it is true that the world has been slow to embrace cryptocurrencies, but this doesn`t mean that technology isn`t moving fast. Blockchain technology has proven that it has the potential to bring forth the next financial revolution. The concept of tokenization of assets is becoming popular quite rapidly and this shows that blockchain technology has opened a new path in the financial world.
It will, however, be unfair to forget that Bitcoin introduced the blockchain technology. Although the world has been slow to embrace bitcoins we are slowly getting there. If you are among those who are interested in bitcoins then you have come to the right place.
Where To Buy Bitcoin
Back in the days when bitcoins were first introduced, it was quite difficult to purchase bitcoins but now it has become as easy as ordering articles from Amazon. There are numerous ways to buy bitcoins, you can buy them through bank transfer, through cash transactions, bitcoin ATMs, in-person sale or through your credit and debit cards.
Nowadays, you can buy bitcoins instantly with a credit card from trustworthy exchanges. Credit cards, however, are one of the fastest and most efficient ways of purchasing bitcoins, albeit with a slightly higher cost of transaction as compared with other methods of buying bitcoins. Credit cards offer that extra layer of protection because when you purchase your data is shared with the relevant regulatory agencies. This means that the exchange that you are using to purchase bitcoins, is regulated and thus the risk of a scam is low as long as you use a trustworthy exchange.
What Is A Bitcoin Wallet?
In order to purchase bitcoins, you will have to complete a few pre-requisites. You must have a digital bitcoin wallet before you can receive bitcoins. A digital wallet is simply a place where you will store your bitcoins. I digital bitcoin is similar to a real-world wallet where you store your cash and cards. There are many different types of bitcoin wallets such as paper and hardware wallet, these have the highest level of security as they are offline.
There are also desktop, mobile and online wallets, that have a lesser level for security but they are still very secure and allow easy accessibility. The choice of bitcoin depends on the frequency of your transactions and your bitcoin stash. If you are a frequent user and use bitcoins for daily transactions then you may be better off with a mobile wallet whereas if you have got a lot of bitcoins and you are more of an investor then you will be better served with a hardware wallet.
What Is A Bitcoin Exchange?
Once you have got your bitcoin wallet, you will need to look for a suitable bitcoin exchange. A bitcoin exchange is an online platform that acts as an exchange where you can trade your dollars or your respective currency for bitcoins, similar to a foreign exchange where you trade one currency for another.
There are many bitcoin exchanges working and if you are a newcomer into the world of cryptocurrencies then you may be scammed. So tread carefully. Not every bitcoin exchange is going to be trustworthy. For this, you will need to carry out your due diligence first.
Look for exchanges that are old and have generated customer goodwill over the years. Furthermore, look at the rates offered. Bitcoin does not have a set price, so every exchange is going to offer you a different price but the variation in prices will not be too much. If an exchange offers a price that varies too much from the average then know that something is amiss.
Some of the best-known bitcoin exchanges are mentioned below with a brief introduction of each one including Coinbase, Coinmama, and BitPanda.
Coinbase is one of the oldest and biggest bitcoin exchange operating right now. Coinbase operates in the US, UK, and Europe and offers a lot of options. It has got a very simple interface that is helpful for newcomers and amateur bitcoin enthusiasts. Coinbase also offers competitive rates and instant buy options on debit cards. The service of Coinbase is impeccable and very quick. If you transact through cards then as soon as the payment is validated you will receive your bitcoins.
Coinbase, however, tracks the usage of bitcoins, this means that if the bitcoins are used in any illicit or illegal activity then Coinbase will know and this information may be passed on to relevant regulatory authorities.
Coinmama is also one of the oldest and most reputable bitcoin exchanges, second perhaps only to Coinbase. Coinmama has got slightly higher rates on credit cards and it also offers high limits on transactions. Users can purchase bitcoins for up to $5000 daily or $30,000 each month.
Formerly known as Coinimal, BitPanda is another well-reputed bitcoin exchange that has been active in the market since the last six years, t is one of the leading bitcoin exchanges in Europe. BitPanda offers a digital wallet and a bitcoin exchange service. In addition to bitcoins, BitPanda also deals in other cryptocurrencies. Bitcoin has a completely automated system, which means that once your account is verified, everything happens on the automated system so as soon as your transaction gets verified, the bitcoins are transferred instantly. It is a stated aim of BitPanda to make bitcoin transactions as fast and efficient as possible. BitPanda also supports multiple currencies and offers market competitive fees.
Hopefully, this article will help you in buying bitcoins using your credit card. Remember to carry out your own due diligence before choosing any bitcoin exchange, the three bitcoin exchanges that we have discussed are only to give you an idea of what to expect.