Although there are plenty of people who are willing to sell you cryptocurrency in person, the best, safest way to conduct a Bitcoin transaction is by using a verified online Money Services Business (MSB). Here are the top safest ways to buy Bitcoin with a credit card.
Choose a Highly Secure Cryptocurrency Wallet
Before you acquire any type of cryptocurrency, you'll need a Bitcoin wallet. You can download a free app for what's known as a "hot wallet," which is a cryptocurrency wallet that is internet-connected. Non-internet-connected (offline) cryptocurrency wallets are known as "cold wallets," which can cost approximately $100, and only store certain cryptocurrencies. They are, however, considered more secure and less vulnerable to regulation than their free counterparts.
Bitcoin currency exchanges are online services that serve as cryptocurrency traders for buyers and sellers. The exchange platform connects buyers with sellers for the best market price. Buyers and sellers who use exchange services are charged transaction fees based upon the cryptocurrency transaction volume.
Before buying cryptocurrency of any kind, remember the following tips.
- Check that your credit card allows the purchase of cryptocurrency. Numerous banks have announced that they will no longer authorize the purchase of cryptocurrency with their credit cards. These include Bank of America, J.P. Morgan Chase, and Citigroup. Moreover, Discover currently doesn't allow their cardholders to make Bitcoin purchases.
- Make sure the Bitcoin exchange or seller accepts the card you want to use. While most exchanges will accept Visa and Mastercard, not all of them will accept American Express.
- Look for an exchange with strong customer support. Whether you select an exchange or online purchase platform, a service that offers solid customer care features and good communication is the safest option. Avoid services whose operations are opaque; transparency is crucial.
Be aware: If privacy is a serious concern for you, buying Bitcoin with a credit card may not be the best option, since credit cards are inherently less private transactions than cash purchases.
CoinFlip offers one of the top safest ways to purchase Bitcoin with a credit card. As a licensed MSB, CoinFlip delivers a foolproof resource for not only purchasing Bitcoin and other cryptocurrencies with a credit card or debit card, but with cash through one of our secure Bitcoin ATMs. To learn more about how to buy Bitcoin with a credit card or cash, visit CoinFlip's FAQ page.