While it is almost easy to buy Bitcoin online, finding a safe and trustable platform is the challenge.
Table of Contents
- Buy Bitcoin with Credit Cards
- Buying Bitcoin
- Using BingX to Buy Crypto
- Supported Crypto Purchase Platforms
- Buy Bitcoin Using Credit Cards
Investing in Bitcoin or any of the various cryptocurrencies available nowadays can seem like a challenging prospect. Still, with the right tools and the appropriate knowledge, people can do it safely and profitably. Some of these tools at the disposal of traders and investors are currency exchanges and wallets.
For traders and investors to realize the highest levels of value for the money input, minimizing the overhead costs that come with these transactions will be necessary. The process of buying Bitcoin with credit cards has to be made more efficient to accomplish this.
There are different ways by which you can purchase Bitcoin, including coin exchanges, Bitcoin ATMs, and P2P (Peer-to-Peer) exchanges. While most people choose to carry out their transactions using coin exchanges, these might not be suitable for many for several reasons, such as:
- High Transaction Fees: Credit card processors typically place high interest rates on cryptocurrency purchases, in addition to cash advance fees. Whenever traders decide to buy Bitcoin with credit cards, they risk adding additional charges to these initial transaction costs. These initial costs may often be high to begin with, and credit card processors can put additional charges onto your costs without alerting the buyer.
- Credit Rating Impact: Credit card companies will often treat Bitcoin and crypto purchases as cash advances. This result is that users might find their credit rating being lowered, especially if they make hefty purchases using their cards. This will negatively impact their risk profile and make accessing loans and credit harder for them in the future.
- Fraud Risks: Numerous platforms do not protect investors from the risk of fraud and losing their money in the process efficiently and effectively, especially for inexperienced traders.
These factors vary according to which platform is in use by any individual, and the crypto environment is growing safer and more efficient as processes and technologies are refined.
Using BingX to Buy Crypto
Traders can minimize the costs involved in buying Bitcoin with credit cards by going through an intermediary processor such as BingX that not only safeguards them from potential fraud but minimizes the attached expenses in these types of transactions.
BingX offers three convenient methods for users to buy crypto. The first method is through credit card transactions, allowing users to easily purchase cryptocurrencies using their credit cards. The second method is peer-to-peer trading, where users can engage in direct crypto trading with other individuals on the platform, ensuring competitive pricing and a seamless trading experience. Lastly, users can also use their existing crypto holdings in their crypto wallet to buy additional cryptocurrencies, providing flexibility and convenience in managing their digital assets.
BingX makes low-cost Bitcoin purchases possible by offering users the option of initially purchasing a cryptocurrency known as USDT (United States Dollar Tethered) before providing them the option of converting it into Bitcoin or another crypto of their choice. What makes it worthwhile to purchase USDT is that its price is pegged on the US Dollar, meaning that its price will be consistently pegged at the value of one dollar. Doing this will minimize the fluctuations associated with most other cryptos.
Once an investor has made the USDT purchase, they will be free to convert it to the crypto of their choice via third-party crypto payment gateways accessed through a portal provided on the application. Users will bypass the high transaction charges that come with making Bitcoin purchases using their credit card. These charges are exceedingly high because they combine payment gateway charges with mining fees going towards the miners.
Supported Crypto Purchase Platforms
Listed below are some of the service providers supported on BingX, where you can convert your money into USDT before exchanging it for Bitcoin. They have different transaction costs attached to their services and have additional requirements for traders.
- Moonpay: Moonpay is one of the most popular crypto payment platforms globally, with more than 100 million customers spread out across 150 countries. Users can use more than 160 currencies to purchase over 90 different cryptocurrencies, including Bitcoin, Litecoin, XRP, TRON, Dash, Dogecoin, and more. It is considered one of the safest and user-friendly platforms for beginner traders and investors due to its speed and simplicity. Still, its major downside is high transaction fees (10% of the transaction amount plus a $25 processing fee).
- Advcash: This relatively new entrant into the crypto service market caused excitement when they announced their plan to introduce the Advcash crypto debit card, which promised to make crypto purchases and trading as streamlined as they've ever been, and it has grown to a popular and trusted name in the industry. They handle all major cryptocurrencies on their platform, including Bitcoin, Ripple, ZCash, Ethereum, Litecoin, and more promised for the future. Visa card users will face a 2.5% transaction fee, while Mastercard users will be charged 3.5%.
- Coinify: This open-source platform developed in Denmark focused on the security of user's crypto holdings, and it has grown to be one of the most well-known players in the industry. It seeks to bridge merchants and users who would like to use crypto for payments ad purchases in the 15 cryptocurrencies it supports. Users can expect to face transaction rates of 3.5%
- Banxa: With a vision of providing access to a fairer and more equal financial system for people worldwide, Banxa focused on transparency and regulation in its efforts. It has grown to become one of the global leaders in the industry. Users can expect to pay transaction fees at the rate of 2.5% for their crypto purchases.
In line with the financial regulations governing the operation of these platforms in some parts of the world, many traders can expect to face various KYC (Know Your Customer) requirements when getting started on these platforms.
These requirements will typically involve filling out forms listing personal details to prevent fraud, money laundering, and other illegal activities. The level of KYC obligations faced will be dependent on the particular platform in question, so traders who value the privacy of their personal information will still have viable options.
Buy Bitcoin Using Credit Cards
Bitcoin and other popular cryptocurrencies continue to grow as viable investments and continue to increase the reach of their usefulness as more and more businesses begin to accept them as modes of payment. Traders can avoid high transaction fees by using BingX to purchase USDT before using it to procure Bitcoin. Investors and traders seeking to buy Bitcoin with credit cards can visit the BingX website here to get started.
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