Some of our customers might not know how to use Bitcoin – and that’s okay! This new type of currency is still strange and foreign to many, and it might even seem a little bit scary. But we’re here to help. We truly believe that there are a lot of good reasons to use Bitcoin, and today, we’ll help you figure out how to do just that. The biggest hurdle for most is setting up payments, particularly if you want to get your credit card involved. This guide will make it simple.
Step 1: Set Up A Bitcoin Wallet
The first thing that you need to do before you can buy any Bitcoin is to set up a Bitcoin wallet. Much like you keep your money in a checking account, you need somewhere to store your Bitcoin when you aren’t using it. Like all other currency, it needs to be parked somewhere!
You’ll want to set up a wallet on a reputable site, such as Coinbase or BitPay. Visit their pages, and follow the given sign-up instructions to get started on your first journey into cryptocurrency.
If you already have a cryptocurrency wallet, you can move on to the next step.
Choose your wallet source carefully. You will be relying on this organization to keep your Bitcoin safe, just as you would rely on a bank to keep your money safe. You don’t want to give your money to just anyone! Take the time to do a little bit of research before you make your account.
Step 2: Find a Bitcoin Exchange
In order to use a credit card to buy Bitcoin, you will need to use a Bitcoin exchange site. These broker sites do the work of backing your money as you turn it into Bitcoin, so they typically charge a small fee for the exchange.
Sites like Coinbase, BitPay, and (very soon) Square have different rates for how much it costs to exchange money from credit cards, debit cards, and to transfer money between accounts. Depending on how you plan to use the money and how much you want to put into your Bitcoin wallet, you’ll want to compare them and see what is best for you.
As with the Bitcoin wallet sites, you’ll want to make sure that you do some research before you choose an exchange site. They all have different rules, country limitations, sign-up processes, and other factors that may determine whether or not a site will work for you.
Take it slow; choose a great site but checking into what they offer before you commit.
Step 3: Add Your Credit Card
It’s almost time to buy your Bitcoin! Since you want to use your credit card to do, you’ll need to do an exchange on one of the broker sites that we talked about in Step 2, and they’ll need your credit card information to do that.
Once you have signed up on your chosen site and verified your identity according to their regulations, you can add a credit card to your account. Usually, this can be done on your home dashboard or in your account settings depending on which broker site you are using.
Step 4: Buy Bitcoin
Once your credit card has been added to your Bitcoin broker site, you can buy Bitcoin. Every site will have a different layout, but you will likely need to enter the following information to make your purchase:
- • Type of cryptocurrency you want to buy
- • How much Bitcoin you want to buy
- • Where you want it to be deposited
- • Which payment method you want to use
Choosing where to have the money deposited can be confusing if you are using different websites as your exchange broker and Bitcoin wallet. But don’t worry – you’ll just need to check what your Bitcoin address is on your Bitcoin wallet. Then, you can enter this address as the wallet destination when making your exchange.
If you are using the same site for exchanging and storing money, you can directly deposit without needing to look up your Bitcoin address.
Final Tips & Reminders
Those four steps are all it takes to learn how to use your credit card with Bitcoin, but there are some more things that we think you need to know and remember when working with cryptocurrency.
- • Be sure to use a reliable site to buy and store Bitcoin, especially when purchasing Bitcoin with a credit card. If you enter your CC information into a scammy website, you are putting yourself at risk for fraud.
- • Check with your credit card company before buying Bitcoin to find out how they will handle this type of transaction. Some companies will treat this type of purchase as a withdrawal, and that will cause you to be charged a cash advance fee if applicable to your account.
- • Buying Bitcoin this way is very easy, but it isn’t your only option. Consider exchanging money from a bank account or Paypal account instead if this method does not seem right to you.
- • There are limits on how much money you can buy with a credit card on most exchange broker sites because of the high liability of this type of purchase. Keep this in mind when making your exchange plans.
Get Buying With Bitcoin
It’s actually pretty simple to buy your first set of Bitcoin with a credit card, isn’t it?