Although you can use a credit card to buy cryptocurrency, it is generally something that should be avoided due to the volatility that cryptocurrencies can experience. This option is not as convenient as the first one because very few third-party sites allow users to buy Bitcoin with the PayPal button. Four cryptocurrencies Bitcoin, Ethereum, Litecoin, and Bitcoin Cash can be purchased directly through PayPal. First of all, not all exchanges allow purchases of Bitcoin with credit cards due to the associated processing fees and the risk of fraud.
The other disadvantage of using PayPal is that very few exchanges and online merchants allow the use of the payment processor to purchase payment. People can insert cash into a machine and use it to buy Bitcoin that is then transferred to a secure digital wallet. When you decide you’re ready to sell your Bitcoin, you can place a sell order through your exchange, just like you did when you originally bought your BTC. Once you are logged in, you can buy bitcoin instantly using various payment methods, although there may be a fairly high price for those instant purchase privileges.
For example, American Express and Chase count cryptocurrency purchases as cash advance transactions. Some banks classify bitcoin purchases as “cash advances” on credit cards, which will generate an additional fee. You must add a bank account, debit card, or credit card to make your first bitcoin purchase on most exchanges. Bitcoin cannot yet be purchased through your bank or investment company, although some organizations are working to achieve that possibility in the future.
If you want to buy Bitcoin or other digital currencies as an investment, it’s important to keep costs to a minimum. On each transaction, Coinbase charges a spread (an adjustment to the purchase or sale price of an investment) of approximately 0.5%, plus a commission. Although exchanges like Coinbase or Binance remain some of the most popular ways to buy Bitcoin, they aren’t the only method. Depending on the platform you use, you may be able to buy it at the touch of a button or you may need to enter the Bitcoin (BTC) quote symbol.
