Exchanging Visa or MasterCards gift cards to cryptocurrencies could seem difficult at first, but there is no need to worry because this article will offer you solutions that will help you exchange your prepaid cards to cryptocurrencies.
What are Prepaid Cards?
Prepaid cards are great gifts for special occasions, including birthdays, for when you have no idea what the recipient wants. Since Visa or MasterCards cards are accepted globally, providing a credit card to people so that they can enjoy shopping on- and off-line just makes sense.
People give prepaid gift cards so that you will have money to spend as you like, without actually giving cash.
In addition, gift cards will always be worth a certain amount of cash, the same way as using a prepaid balance. You can log onto your website as a card user and check the amount remaining on your gift card or contact customer service.
Visa or MasterCards prepaid cards work just like regular cards do and maybe used in-store or online. However, unlike regular cards, gift cards are not linked to any bank account, which makes them less useful for high-priced purchases. Some others would like to exchange them for something else like Bitcoin.
Where to pay with Credit Card?
If you have been wondering where you can use your prepaid card for purchasing cryptocurrencies, you can now be content. Various sites are accepting debit cards for acquiring Bitcoins, like Coinbase, Bitpanda, Cex.io, Localbitcoins, among others.
A number of websites where you can buy Bitcoins with your prepaid credit card are listed below:
Bitcoins can be purchased here, with your prepaid card.
It has an INSTANT BUY option.
There is a 3.99% fee.
Coinbase is available in Australia, Europe and the US.
This site offers some of the best rates and accepts prepaid card purchases. It is available globally and charges a 5.50% fee.
It is secure.
This site is new to the market, but already depends on its good reputation. It uses a verification process and is transparent with its fees.
Available around the world.
It has a 3% transaction fee.
The Procedure for Purchasing Cryptos with a Prepaid Credit Card
The procedures for purchasing cryptocurrencies may differ slightly, but you can use the following general procedure:
Find a Wallet
You need to download a wallet to the drive of your computer, tablet or smartphone, or, as an alternative, get a hardware wallet.
Select a Good Exchange
Because there are a lot of scammers on the web, you need to be cautious. Do a background check in order determine whether or not the site is reputable before spending your money.
Open your Account
Register, using your name and password; then click on ‘open an account’.
Choose your payment option
Go to your settings mode and find your preferred payment method.
Click on it and choose debit/credit card.
Then, you can add prepaid card as your payment method.
Verification of Account
Type in your I.D. and then enter. The verification process will take a while, so don’t leave. When the process finishes, you will be able to buy your first cryptocurrency.
Benefits from Using Prepaid Cards for Purchasing Cryptos
It’s a very good idea to purchase your cryptos with a prepaid credit card because it is one of the simplest means of buying cryptocurrencies.
Most people already know how to make online purchases using prepaid debit or credit cards so it can be easier for buyers to use credit cards for purchasing cryptos like Bitcoin.
This option helps avoid giving too much information, which Bitcoin appears to oppose; companies like Coinbase and Bitpay have to adhere to business regulations in the countries where they operate.
It’s important that users realize that almost every exchange platform requires them to undergo an I.D. verification process. Some may be annoyed by having their I.D. scanned, providing proof of address, and even scanning both front and back of their card.
However, using a prepaid card will allow you to remain anonymous.
Disadvantages of Using a Prepaid Card for Purchasing Cryptos
If you decide to buy cryptos using a gift card, you will discover that there are very few Bitcoin exchanges that deal with gift cards.
The reason is that by accepting payments with a plastic card opens the door to high bank rate charges and fraud, which Bitcoin exchanges try to avoid.
Credit card payments are reversible. Merchants may refuse credit card payments for up to two months after using the card.
Because transaction payments are usually irreversible, it is difficult for merchants to sell Bitcoins with credit card payments.
It is difficult to buy considerable quantities of Bitcoins with a credit card, and there is a big risk of scams and fraud.
Nonetheless, companies have discovered other means of fraud prevention, which has made buying Bitcoins with a credit card much easier.
How to be secure
A cryptocurrency user must be able to control the private keys. The reason for this is that with control over the keys, you cannot control your cryptos.
For example, Circle users may use a prepaid Visa or MasterCards gift card, but they also have to depend on Circle’s making sure that their private keys are offline, securely hidden in a vault, in order to avoid fraud and/or theft.
If a person wishes to use Bitcoins, he or she must have another computer or device that is always offline; this second computer is used to store all your cash and will be used only for transactions taking place offline.
Any money you want to spend is always maintained in a ‘hot wallet’, with the understanding that it is at risk. One device can operate solely with Bitcoin and the other would act as a personal bank.
If you have wondered if you can use your prepaid card to buy cryptos, you have reached the right place. This article contains a complete guideline that will lead you through the subject of buying cryptos with your prepaid credit card, so grab you prepaid credit card and buy your very first crypto!
The views and opinions expressed are the views of Crypto Currency 10 and are subject to change based on market and other conditions. The information provided does not constitute investment advice and it should not be relied on as such. All material(s) have been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.
Changes in rates of exchange may have an adverse effect on the value, price or income of an investment.
Past performance is no guarantee of future results and the value of such investments and their strategies may fall as well as rise.