I'm not sure they can make bitcoin and cryptocurrency any more complicated. It seems that once you have a grasp on the topic, you want to go make a small investment, yet to learn there is another learning curve to purchasing cryptocurrency.
If this sounds like you, then you're in the right place. Here you will learn how to buy bitcoin with a credit card, and it only takes a couple minutes and your done!
Different Ways To Buy Bitcoin
There are a few ways you can purchase bitcoin with your credit card. Here we'll discuss those options and let you be the judge on what works best for you.
The reason it seems hard to find out how to purchase cryptocurrency and bitcoin directly with your debit or credit card, is because cryptocurrency is such a new concept and is a totally digital system independent of the banking systems. There are companies, however, that are dedicated to creating a platform that allows you to carry all your cryptocurrency in one location, and make purchases from that same location anywhere in the world.
How To Buy Bitcoin With Changelly
Changelly is a universal platform that allows anyone to purchase bitcoin or cryptocurrency from USD or EUR currencies. This option, however, requires that you have a bitcoin wallet set up already. A wallet is essentially a digital version of your wallet. That may sound like common sense, but you'd be surprised at how many people confuse themselves with that concept. Imagine it as the safe place to digitally store your cryptocurrency.
You can have a bitcoin wallet on a cryptocurrency exchange such as Binance, Bittrex, or HitBTC for example. Each of these are cryptocurrency exchanges where you can buy and sell cryptocurrency. It's free to set up an account at any one of these locations, I recommend any one of them as they are all very trusted and credible exchanges.
Once you have your bitcoin wallet, you will have a bitcoin address which is a long code identification with a series of numbers and letters. Each address is unique to each user, so when purchases and transfers are made, these addresses serve as identifying which wallet the money is being sent to.
How Changelly Works
Changelly serves as the middle man between the bitcoin wallet and the purchaser. Their service allows you to purchase bitcoin using your debit or credit card, and they send the bitcoin directly to the indicated wallet address. It's as simple as that!
The best part about Changelly is, they are big enough that some cryptocurrency exchanges are even allowing you to start purchasing bitcoin directly on the exchange by integrating the Changelly payment gateway on their website. So, in other words, rather than having to go to Changelly to start your purchase, you can do it right on the respective cryptocurrency exchange who has integrated Changelly's services on their website.
To better explain exactly how Changelly works, see the infogrphic below to illustrate the concept:
There are basically 2 steps to purchasing bitcoin directly with a credit or debit card through Changelly. They are:
- Enter your purchase information (credit card info and bitcoin address) on Changelly
- Changelly sends your purchase to your said bitcoin address
Purchase Bitcoin instantly right here with Changelly within just a few seconds. Simply click the dropdown link on the “Pay With” row and select “USD” (US Dollar). Then click the drop down link on the “You Get” row and select BTC (Bitcoin), then click the green “Exchange” button to get the process started. It will take you directly to Changelly to complete the process.
How To Buy Bitcoin With Coinbase
Coinbase operates in a very similar way as Changelly, with one slight difference. Rather than needing to have an established bitcoin address before making your purchase, you can simply set up a free account and purchase bitcoin through Coinbase, and choose to keep it in your Coinbase account.
Should you choose to do so, you have the option to send your bitcoin to another cryptocurrency exchange if you want to begin trading other cryptocurrencies. To illustrate this example, see the infographic below to show the difference between Coinbase and Changelly.
The main difference between Coinbase and Changelly, is that Coinbase creates an account for you to keep your Bitcoin in. Its essentially like your bank account, and you have the choice to send it to a cryptocurrency exchange or receive Bitcoin from a cryptocurrency exchange.
What's the difference between a cryptocurrency exchange and a wallet?
This is a common question causing confusion to new consumers in the cryptocurrency market. You probably already understand cryptocurrency, you just don't know it yet. How? It's really not that much different than how our current monetary system works in terms of transfering value.
The easiest way to explain this concept is to parallel it to our current money and banking systems process. In order to hold your money in safe location, you open a bank account at a local bank. This bank account simply allows you to store your money in a safe location.
But what if you want to invest in the stock market? In order to invest in the stock market, you need to open up a brokerage account with an investment bank, and send money to your brokerage account at the investment bank from your local bank account.
Once the money is received, you can then begin buying and selling stock. Should you want to cap your gains in the stock market and use the money, you simply send the money back to your bank account.
Coinbase is similar to your bank account in this scenario, and a cryptocurrency exchange is like an investment bank where you can buy and sell cryptocurrency.
Changelly differs the most, in that you are simply buying Bitcoin and sending it directly to your investment account all in one transaction.
Which option should you choose?
If you want to get into the cryptocurrency investing market, you might as well send your Bitcoin directly to an exchange to begin trading. If this sounds like you, then your best bet is to start with Changelly.
If you are looking for an easy way to simply buy bitcoin and hold it without doing any further cryptocurrency trading, then Coinbase is your best option. Plus, if you open a free Coinbase account through our partner link here, you will get $10 in free Bitcoin after you make a deposit of $100.
Whichever your choice of path, be sure to do your research before investing in new cryptocurrencies. Only invest amounts that you wouldn't be devastated loosing, since cryptocurrency is known to be very volatile in nature. This is mainly due to the new concept of the cryptocurrency market.