In January 2020, approximately 5.8 percent of the Ghanaian population (15 years or older) owned at least one credit card. This shows an increase from the comparison of 2018, where there was just 0.9 percent ownership of credit cards. With these facts above, you can rightly guess the significant possibility of buying bitcoin with your credit card. However, this depends on whether you have a credit card. But if that’s the case, you can buy Bitcoin with a friend’s or relation’s credit card. Meaning of Bitcoin, why buy it with a credit card, etc are all-inclusive in this article.
What is Bitcoin?
They often describe Bitcoin (BTC) as a cryptocurrency, a virtual currency, or a digital currency. However, it is a type of money that is completely virtual. You could see it as an online version of cash. Because you can use it to buy products and services online. But not all shops accept Bitcoin for payments, and some countries have banned its use.
They also see bitcoin as a computer file that they store in a digital wallet app on a smartphone or computer. You can send the Bitcoins or a part of one of them to your digital wallet. Also, you can send it to friends, relatives or other people.
Why should I buy Bitcoin with a credit card?
Just like every other cashless mode of transaction. There are reasons you should buy Bitcoin with a credit card.
The following are the reasons you should buy Bitcoin with a credit card:
- The platforms of credit card providers are user friendly. And you can buy Bitcoin instantly.
- You wouldn’t have to rely on bank transfer alone before you can buy Bitcoin.
- It is more convenient and secure to buy Bitcoin with your credit card.
- You don’t have to fill out advanced forms before buying the Bitcoin.
- The credit card can automatically make exchanges for FIAT currencies, which you could use to make purchases.
- With the credit lines, buyers can purchase more Bitcoin than they have liquid assets. However, it is risky, but it is sometimes helpful to buyers.
What are the cons of buying Bitcoin with a credit card?
In the world today, having a Bitcoin is absolutely commendable. But there are some cons that come with buying Bitcoin with a credit card.
The following are the cons of buying Bitcoin with a credit card:
- Credit card online platforms that perform the transactions will charge you higher fees for the transactions. However, this depends on the exchange rate. And these fees can be as high as 5%.
- Credit cards are very convenient to use in the purchase of Bitcoin. But the amount of Bitcoin you can purchase with it will be lower than other methods. Just like the way you can’t buy a house with a credit card. The same logic applies here.
- The purchases of Bitcoins you make with your credit card will affect your credit ratings. Just like every other purchase, especially if the amount of purchase is high.
What ways can I buy Bitcoin with a credit card?
Most companies accept credit card payments online. Also, most exchanges and marketplaces that deal on Bitcoin accept credit cards.
Some ways you can buy Bitcoin with a credit card are:
- Exchanges
Exchanges are platforms that trade crypto currencies like Bitcoin. They act as a third-party for the buyers and sellers. They finesse the funds during transactions. These platforms work hand in hand with traders who want to make money and move large amounts of Bitcoin.
- Peer to Peer
Here, people who want to buy Bitcoin search for others who want to sell it. When they find them, they negotiate prices and make transactions between and among themselves.
- Crypto Enabled ATMs
Some Automated Teller Machines (ATMs) let buyers to purchase bitcoin at a physical kiosk quickly. These kinds of ATMs are springing up and you can locate them with maps. They function typically like standard ATMs by allowing you to pay a fee to buy Bitcoin with your credit card. Once you are through with the purchase, the ATM will transfer the funds into your wallet.
- Dedicated Apps
There are various Apps that let buyers to buy Bitcoin and directly import it into their wallets. With these apps, you can buy Bitcoin securely and have them instantly available in your wallet. Most times, there are no intermediary fees and your assets remain secure.
Note: You need to transfer the Bitcoin you have purchased into a wallet to use it.
Will I lose all my money if I buy Bitcoin with a credit card?
As a first timer, you could fear losing all your money in the purchase of Bitcoin with your credit card. But you don’t need to be afraid of that once you are sure of the Bitcoin amount you want to purchase. However, you give away your money for Bitcoin you receive (you lose the money when you purchase Bitcoin). So, if the Bitcoin price goes down, you will get less money back. But if the money goes up, you will get more money if you sell the Bitcoin. Therefore, it’s all about the risks that come with investment and business at large.
Conclusion
Bitcoin is currently the most expensive cryptocurrency in the world today. Bitcoin’s interest has really increased exponentially in recent times. Many people continue to regret not investing in Bitcoin when it was in the growing stage. However, it’s better late than never to buy Bitcoin with a credit card. Just like the way industry standards for online purchases accept credit card payments. Especially with credit cards offering a quick and convenient way for you to gain Bitcoin. Using credit cards to buy Bitcoin could be an excellent option for people looking to use Bitcoin to purchase goods.
Other related articles:
How to get a Credit card in Ghana