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A Guide To Buy Bitcoin Using Prepaid Cards – Cheapest Option?

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Lots of people are investing money by acquiring bitcoins and there are many ways to buy bitcoin. One can use other currencies, cash, bank transfer, debit or credit cards and prepaid cards to buy bitcoin. Prepaid card is becoming one of the popular payment methods for bitcoin purchase. A prepaid card is entirely different from a debit card. The debit has a direct link with your active bank account.

A Guide To Buy Bitcoin Using Prepaid Cards

When payment is made using a debit card, the money will be directly reduced from the bank account. But in case of the prepaid card, the money is preloaded into the card and it has no direct link with the bank account.

Prepaid card option is offered by many exchanges that support visa/MasterCard payments. Not only bitcoins, many other altcoins such as Etherium, Bitcoin cash, etc. can be bought using this method. There are many companies offering prepaid cards such as Google, eBay, Amazon, etc.

buying bitcoin using prepaid cards

Exchanges Supporting Prepaid cards

  • Coinmama: Coinmama is an exchange currently working from Slovakia. It was established in 2013 in Israel. It is one of the first exchanges to provide credit and debit card payments. They also support payment using prepaid cards to buy bitcoin, Ethereum, Ripple, etc. Coinmama charges an additional 5% for card payment and serves in over 180 countries.
  • Coinbase: Coinbase is an exchange based on the US and is established in 2012. It serves about 32 countries and supports four digital currencies including bitcoin. It has a service fee of 3.99% for the prepaid card-based transactions.
  • CEX.io: It is an exchange operation from 2013 and is situated in London. It is one of the exchanges supporting prepaid cards with a service fee of 3.5%. It supports most of the popular currencies and is operational in almost all countries.
  • LocalBitcoins: LocalBitcoins is an exchange that was established in 2012 in Finland. It is a peer-to-peer exchange with a wide variety of payment methods. It has a very low transaction fee, which is around 1% per transaction.
  • Paxful: It is also a peer-to-peer exchange platform that supports a wide variety of prepaid cards including google pay, eBay, and Amazon. Paxful also has a 1% transaction fee.

Steps for Buying Bitcoin Using Prepaid cards.

  1. Install a bitcoin wallet: There are many wallets available that support bitcoin. Install any one of them.
  2. Select an exchange supporting prepaid payment cards: Select an exchange on the basis of the transaction fee, Security, reliability, etc. Also, create an account using your name and mail id
  3. Select payment option:  In the list of payment options select prepaid cards option (Use your prepaid card number).
  4. Account verification: KYC should be completed before proceeding with transactions. You can use your id proofs to complete the verification.
  5. Complete the transaction: Buy your bitcoin with the prepaid card which should have funds preloaded in it. Transfer the coins to your wallet (Use your VTC address).

Thus buying bitcoins with your prepaid cards is an easy form of purchasing. It is to be kept in mind that prepaid cards are not the cheapest option for bitcoin purchases. More budget-friendly options are also available in the market.

Fred Harris is a writer and performer who got involved in cryptocurrencies at the start of 2017 when he was hired to work at a Bitcoin-related company. He's passionate about cryptocurrency, digital rights, IT, and tech and has been an avid writer and follower of the crypto and blockchain space since 2015. He is specialized in machine learning, artificial intelligence, blockchain technology, and big data.

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