How To Buy Bitcoin With A Credit Card And Other Cryptocurrencies

How To Buy Bitcoin With A Credit Card And Other Cryptocurrencies

There are many restrictions for US Residents to buy bitcoin. This guide shows you the fastest, easiest and most secure way to buy bitcoin and other crypto.

How to Purchase Bitcoin

First, you’ll need to create an account on an exchange. Set up your account with Coinbase and then you’ll automatically have an account on GDAX.  Once on GDAX, you can withdraw funds from your bank to your GDAX account to buy/sell crypto.

Bitcoin Exchanges:

Bitcoin Security Settings:

It seems like there are more security verifications needed to make a crypto wallet on an exchange than there is to make an account at your local bank.  cut, security is well worth it over the risk of having your money stolen.

Setting Up Two-Factor Authorization:

Imagine walking around with money sticking out of your pockets.  It’s eventually going to get stolen.  Adding two-factor authorization is like having the terminator around your money.  You’re protected.

There’s multiple guides online on how to use it, but here’s a quick breakdown.  Download the Google Authenticator app.  It will register with just your device.  Enable two-factor authorization on your account.  You’ll see a secret code / barcode to scan.  Scan it and it will enable two-factor authorization.  It takes a minute and is well worth the security.

How do I buy bitcoin? By funding my account first:

I didn’t understand how to buy cryptocurrency until April 2017.  There were many restrictions on my accounts and I wasn’t comfortable with wiring money.  Those restrictions are still there, but I’ll explain the easiest way to fund multiple wallets and buy all types of available currency.

Coinbase is my go to for funding all exchanges.  Feel free to use my referral code:

https://www.coinbase.com/join/590b63f4ee8dc500b0f2f24c

When you first open your account, funding limits will be very small.  After a few months the limits will gradually increase. Do not buy directly from Coinbase unless you have to due to the fees.

How to buy bitcoin with a credit card:

  • 3.99% to buy cryptocurrency with a credit card

I only use the credit card option if I’m trying to get a spend bonus from a credit card.  The purchase will be instant, but you’ll only be limited to $500 purchases for the first few weeks.  You credit card purchase limit will slowly go up as your account gains credibility through age.

How to buy bitcoin with a debit card:

  • 2.99% to buy cryptocurrency (Bitcoin/Ethereum/Litecoin) with a bank account or debit card

The purchase will be instant, but when you buy with a fee you immediately lose that money. You’ll want to go into GDAX for free trading if you have the cash and patience.  With Coinbase, link and verify your bank accounts.  You won’t need to use Coinbase for any buying/selling (due to fees), you just need to link up your bank account.  To buy cryptocurrency for free, you need to use GDAX.com.

Depositing funds into GDAX:buy bitcoin

buy bitcoin

 

And then the amount you’d like to deposit into GDAX.  It will take up to 4 business days to transfer money in.

 

How to buy cryptocurrency with GDAX:

As of August 2017, GDAX only supports Bitcoin, Ethereum and Litecoin.  To buy/sell cryptocurrency with no fees, use “Limit Orders”.

Limit Buy = You set a price at least 1 cent below the trading price.  When the trading price reaches your price, it will fill that order from people with Limit Sells at this price.

buy bitcoin

Example 1:

  • Ethereum is trading at $300.00
  • You set a limit buy for $299.99
  • Ethereum drops to $297
  • Your order for Ethereum at $299.99 is filled (at $299.99)

Example 2:

  • Ethereum is trading at $300.00
  • You set a limit buy for $299.99
  • Ethereum jumps up to $305
  • Your limit buy won’t go through and your order will still appear as “open”

“Limit Sell” is the opposite of Limit Buy.  If Ethereum is at $300 the lowest price for a Limit Sell you can place is $300.01.  If the price keeps dropping and never pops back up, your orders will remain.  In this case, you’d want to use a “Stop Loss” order (GDAX charges fees on all non-limit orders).

btc limit order

 

If you’d like to buy other cryptocurrency such as Ripple, Dash, Monero, (you name it!) this follow up post will help: How To Buy Cryptocurrency Not On Coinbase



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