Buy Bitcoin With Prepaid Card In 2021 In 4 Easy Steps – EconomyWatch.com
If you’re an investor looking to buy Bitcoin with a prepaid card, you are at a great advantage because most exchanges support this method. But first, is your card really a prepaid card? There’s some confusion in this area. Prepaid cards are not linked to your checking account. You only get to use them after loading funds on the card. Their usage is limited to the amount they carry. You can acquire a pre-loaded prepaid card or get an empty one and fund it yourself. Bitcoin providers in the US have efficient methods of investing in Bitcoin with your prepaid card. Stick with us to know how and where you can buy Bitcoin with the prepaid card in the US 2021.
How to Buy Bitcoin with Prepaid Card – Step by Step Guide 2021
- Find an Exchange: eToro is our number 1 choice for buying Bitcoin with prepaid card in the US 2021
- Create an Account: Register for a trading account and provide you KYC information to complete this stage.
- Activate your Wallet: Deposit funds in your trading wallet to blow life into it.
- Buy Bitcoin: You’re on the right track! Open a trade to buy Bitcoin now.
Benefits of Buying with Prepaid Cards
One thing about investing in crypto is that you want to be able to get into the market as soon as an opportunity shows up. So let’s say there’s some fundamental news that has just come in, and everyone is rushing to invest in a particular asset. The worth of it will start shooting up, and the more you delay to get it, the more it gets expensive. Prepaid cards facilitate instant purchases of cryptocurrencies. If you own one already, you should be proud of yourself. This is an advantage for you to catch Bitcoin at the best entry price. This trait of prepaid cards also removes the anxiety of waiting for funds to reflect in your wallet. On top of that, you save tons of time that you would have spent waiting for Bitcoins to arrive if you had opted for an alternative method like bank transfers.
Cases of financial fraud and bank account hacking are on the rise. Just as safety and anti-fraud agencies are working round the clock to combat this issue, so are fraudsters in upping their game. You might be wondering why you should buy a prepaid card when you already own a bank-account debit card. Do they solve the same problem? Partly yes, and no. Why? Because while both of them allow you to make online payments, your bank debit card exposes your entire bank account to fraudulent loss of money.
If your prepaid card information is stolen, you cannot lose more than what was is in the card. Albeit, it’s a tough nut for anyone who might try to access your prepaid card in an unauthorized manner. First, they must bypass the two-factor authentication, which is practically impossible. In some cases, they might also need a way to circumvent biometric security, and this also not just going to happen. Lastly, you can always deactivate your card via a mobile phone app in case you lose it.
In today’s world, no product sells like convenience. Unlike credit cards, prepaid cards don’t leave you with a bill when you use them to invest in BTC in the US. You’re using the money you already have—no debts and repayments. No paying interest since this is the hard-earned cash you’re spending. Transacting with this card is faster than traditional bank transfers. Once you initiate a transaction, it goes through immediately. This is different from using a debit card because some transactions have to wait for confirmation- this may last longer. Your prepaid provider covers the cost of your BTC transaction and deducts the money from your wallet.
Easy to Acquire
Anyone can get a prepaid card within a matter of minutes. You do not need to go through complex procedures to own one. All it takes is filling a short form, paying for the card, and it will be out in a flash. Have all your personal information ready when going to get one. This includes your phone number, email address, and physical address. Some providers don’t require you to make any payments as long as you can load your card with a certain minimum. Remember your card cannot start operating until you activate it by adding some funds to it. You can purchase these cards online, in your comfort, or from a nearby store. Although they resemble bank debit cards, applicants don’t need a good credit history to own one.
Bitcoin Prepaid Card Account Regulation
Prepaid cards gained popularity like wildfire due to the high number of citizens that were not eligible for credit cards or bank accounts in the US. They offer an easy way of banking to many. At the same time, these cards were the easiest route for money laundering and other financial fraud. The Consumer Financial Protection Bureau introduced some laws to regulate Bitcoin-Prepaid card transactions in 2017. These regulations were mainly to protect the consumer. Issuers of such cards are now required to offer liability protection, just like in the case of bank accounts.
The issue of controlling money laundering through prepaid cards is still pending. However, concerns are rising because this remains the weakest link for drug traffickers, hackers, and terrorists to transform illegal proceeds into legal spending power. Visa and Mastercard argue that as long as a crypto exchange is compliant, there is no reason for alarm. This means that Bitcoin providers like eToro have a responsibility to play in ensuring that they only deal with law-abiding customers. While this is somehow possible through account application KYC procedures, it’s still a long shot.
Having said that, there is a limit to how much you can spend on buying BTC in the US with your prepaid card. Most cards have a maximum card value of $10,00 with an online daily spending limit of $5,000. A few premium cards like NexCard and Brinks Mastercard have a higher maximum card value of $15,000 to $20,000. The spending limit remains unchanged even with a high maximum card value. This means you can comfortably purchase up to $5,000 worth of BTC every single day.
Where to Buy Bitcoin with Prepaid Card
Let us now get to the crux of the matter. Now you have a prepaid card, and you know the pros of using it to get Bitcoin in the US. But we’re not done. You need to find a good crypto exchange to invest in Bitcoin in the US 2021 using a prepaid card. We have done the dirty work for you and come up with information on two top brokers. eToro ranked number 1.
eToro is a multi-asset online broker that supports cryptocurrency trading in the US. If you’re looking for a user-friendly platform for buying Bitcoin with a prepaid card in the US, eToro is your go-to broker. Its platform has an easy flow and arrangement of information. It’s basically a DIY trading platform. It doesn’t matter that you’ve never come in contact with an exchange. It won’t feel like you’re trading Bitcoin with a prepaid card for the first time with eToro. We consider safety a crucial part of our search for a top broker to buy cryptocurrencies with prepaid cards in the US. eToro’s security is intact.
The broker holds US licenses that require it to keep client funds in a segregated account. eToro has several other tier-1 licenses across the world. It’s regulated in Australia, UK, Cyprus, and even Israel; currently seeking papers to operate in the entire Asian market. Your trading platform comes with a two-steps verification to keep away unwanted persons from accessing it. Trade over to 16 virtual coins with this platform, including Bitcoin, Ethereum, and Litecoin. If you want to try out other markets, you’ll have access to over 2000 of them; indices, forex, stocks, name them. You’ll find all of them on one platform.
We will not be doing justice if we move to the next stage before telling you why over 19 million investors globally love eToro. You see, all investors look for platforms that help them make as many returns as possible. On the contrary, brokers are also in business. This sometimes creates a conflict when crypto exchanges charge their client’s exorbitant fees without a satisfactory explanation. eToro is one of the few platforms that offer commission-free trading when you buy your Bitcoin with prepaid cards.
That is not enough; there are no gimmicks or extra fees to this. Account opening is free and easy—no management or ticketing charges. Purchase your BTC with prepaid cards using eToro and enjoy your profits. The only charges you part with will be a small withdrawal cost of $5 if you’re using bank transfers. You can access your eToro trading platform from your android, iOS phone, and on your PC too.
|Withdrawal charges||$5 for bank transfers only|
|Extra fees||$10 per annually after a year of inactivity|
|Commission-free trading||Lacks advanced technical analysis tools for the pro trader|
|Free Deposits with eToro|
|Do-it-yourself trading platform|
|Access over 2000 markets|
|CFTC and NFA protection|
67% of all retail investor accounts lose money when trading CFDs with this provider.
Coinmama is not necessarily the mother of cryptos like it tries to sound, but it is one of the leading providers of virtual currencies. The exchange was the first to allow buying of Bitcoin through debit and credit cards when it started operating. It operates in 220 nations globally, including the world superpower, the United States. The exchange was born in Slovakia back in 2013 and later started attracting the interest of investors across the world. Its mother company, New Bit Ventures, is an Israeli company.
Due to its status of serving many regions, Coinmama supports multiple languages and has a friendly interface for everyone. You can participate in Bitcoin trade with a prepaid card on Coinmama. Just make sure it’s either Visa or Mastercard because they do not support anything short of that. It’s worth bringing to your attention that Coinmama deducts 5% from every purchase of BTC you make using a prepaid card. This is a major turn-off, but sometimes the fee may be worth it considering their prompt services and good support. You’ll find BTC purchases a bit expensive on this platform; they come at an extra 2%.
In terms of safety, Coinmama does not save customer payment information. You can be sure that they will never share your data with third parties. You will be safe from fraudsters while using the digital coin provider to purchase Bitcoin in the US with a prepaid card. The company does not support peer-to-peer buying and selling of cryptocurrency or trading. Anytime you buy BTC with Coinmama, the company sells to you directly out of its holdings, making it much safer. Unlike eToro, the exchange does not hold any digital coins. Initially, one would only buy Bitcoin and Ethereum from this broker.
Today it has expanded to support Litecoin, Ethereum Classic, Ripple XRP, Cardano, Bitcoin Cash, and QTUM. You will join a client base of Coinmama’s 500,000 clients if you decide to open your account with them. If you are one of those individuals that love doing business from their iPhone or Android phone, you’ll have to swallow the bitter pill when it comes to this platform. They only offer a web browser platform. Customer support is only available by email. This is a severe issue since email communication can be slow and ineffective during emergencies.
|Inactivity fees||10% a month after 12 months|
|Easy to use platform||High costs of trading|
|No minimum account balance||Only accessible via a web browser|
|Wide payment options||Limited customer options|
|Zero fees for deposit through cryptos|
67% of all retail investor accounts lose money when trading CFDs with this provider.
eToro – Buy Bitcoin with Prepaid Card
1. Set up your Bitcoin Account
An essential step now is to set up your trading account. Go to www.etoro.com to start. Click on “Join Now” and wait to be redirected to a short sign-up form. You will choose a username, submit your email address and create a password to access your eToro account. Click on “submit,” and whoop! You’re done. Log in to your new eToro platform using your username and password. You can choose to finish creating your user profile or to start trading immediately. This is only possible up to a maximum transaction of $2,000. Beyond that, you will have to finish setting up your profile. We prefer doing all this once and for all to avoid future conveniences.
2. Provide KYC information
Verify your account to be eligible for serious Bitcoin investments. To do so, click on “Complete Profile” on the top far left of your platform. Next, submit your full name and date of birth, then click “Next.” Now, upload a good picture of your legal identity documents, followed by a recent utility bill that carries your physical address. The utility bill should be less than six months old; otherwise, eToro will not accept it. As soon as you are done, take a break and have a glass of water. Check your email now; in just ten minutes, your account verification will be complete. Almost done, hold your horses.
3. Fund your eToro wallet
Now that you have a verified account, you need to add some money to your platform. An empty wallet doesn’t look good at all. At the far bottom left, click “Deposit Funds,” then select “Credit/Debit Card.” Fill in your card number in the appropriate section, add your name as it appears on your card, insert the amount you want to invest in Bitcoin, and click “Deposit.” Refresh your browser and check the “Available” section at the foot of your platform, not far from the “Deposit Funds” button. Your new balance should be already updated.
4. Buy Bitcoin
Breath in and out! Your Bitcoin will be in your wallet soon. But wait one more step. At the top of your platform is a search bar labeled “Search eToro.” Find any asset you want by looking it up here. Today, we’re only interested in BTC. So type “Bitcoin” or “BTC” and then enter. Select it when it comes up and click on “Trade,” here, you will say how much you want to put in your first investment using eToro, then click “Set Order.” You made it! Again, at the foot of your platform, next to “Available Balance,” you’ll see the amount of BTC you just bought in terms of USD. It appears in the “Total Allocated” section. Access your trade from the “Portfolio section” on the left grey pane of your platform. It doesn’t get easier than this.
Conclusion – Buy Bitcoin with Prepaid Card
You don’t have to crack your head to buy Bitcoin with a prepaid card using eToro. We agree that such guidance, as in our article, is vital. That is why we go all out to provide this information to you. Many of us have grown with a view that investing is something for a mythical elite group. Yet, we have access to the internet, can afford to start investing, even if it’s in small amounts. Prepaid cards are the best for purchasing Bitcoin in the US. They are secure, convenient, and easy to use. Furthermore, anyone can get them without a big hustle.
Don’t let your mind buy into the multiple online campaigns that follow you wherever you’re browsing. We have given you our top picks based on our experience. eToro stands out because of commission-free trading, user-friendliness, and service to an extensive customer network of over 19 million users. Who gives you all this information for free? You must be a lucky one. We won’t take your time any further. You need to start investing in BTC before it gets too expensive. Visit eToro with 0% commission and start your journey. You have our blessings!
eToro.com – #1 Platform to Buy Bitcoin
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