As cryptocurrencies are becoming more popular day by day, the conveniences are increasing. Nowadays, Crypto ATMs or Bitcoin ATMs also settle for bank cards. Hence, this ensures fast and seamless transactions. In a Bitcoin ATM, you can now buy Bitcoins with the help of your credit card. But, how to use Bitcoin ATM with credit card? All you need to do is insert your card into the ATM slot in exchange for cryptocurrencies or Bitcoins in particular.
In this article, you will learn about how to use credit card to buy Bitcoins at a Bitcoin ATM. Apart from that, you will also learn how Bitcoin ATMs work with credit cards. In addition to that, this article also discusses important factors one needs to consider before using credit cards in Bitcoin ATMs. Also, you shall learn how to find a card that is compatible with Bitcoin ATMs. Hence, to learn more, read on to the end of the article.
How To Use Bitcoin ATM With Credit Card? – An Overview
When it comes to market capitalization, Bitcoin is one of the largest cryptocurrencies. With the help of Bitcoin, you can trade almost every exchange across the world. Furthermore, since cryptos like Bitcoin have created a lot of hype, many investors are looking for ways to tap into the Bitcoin market.
According to BankRate – “Some Bitcoin ATMs are bidirectional, meaning you can both purchase and sell Bitcoin at them. In the latter case, you can enter the amount of Bitcoin you’d like to exchange for cash, and collect the cash or have it deposited onto your debit card. Bitcoin ATMs can also be used to send Bitcoin to another person.”
As people are using Bitcoin ATMs to sell and buy Bitcoins quickly and conveniently, they can now do so with credit cards. Nowadays, with Bitcoin ATMs, you can purchase Bitcoins with cash as well as cards (both debit and credit cards).
To use a credit card to buy Bitcoin, you need to have a card verification value card number and the expiration date of the card. To buy Bitcoin through a Bitcoin ATM, you will have to register yourself beforehand. Hence, while you are about to buy a Bitcoin from an ATM, you will need to just insert the card in the slot or scan the card near the screen.
However, you must know that buying Bitcoin through a credit card is not easy, but it surely has certain benefits. Nevertheless, it is also important for investors to consider before they try to buy Bitcoins with credit cards. Also, they need to ensure that they are doing it correctly.
What Are The Benefits Of Bitcoin ATMs That Accept Credit Cards?
One of the primary aspects of using a credit card at a Bitcoin ATM is safety. Basically, you can add an extra layer of security to the transaction if you use a credit card. This is because if you use a bank card, there are fewer chances of fraud or unauthorized transactions. Hence, you will have a peace of mind while you are making a transaction.
Furthermore, as Bitcoin ATMs are accepting credit cards, the possibilities for cryptocurrency transactions are increasing. Using credit cards can not only help people learn more about cryptocurrencies but also allow them to explore more about Bitcoin.
Apart from that, since credit card transactions are more convenient, newcomers to cryptos can also try investing in them. As a result of their higher accessibility, people are adopting cryptocurrencies faster, and innovations are also increasing in this area.
Factors To Consider Before Using Credit Card In A Bitcoin ATM
According to Investopedia, “Buying Bitcoin with a credit card means you’ll have to select a card and exchange that supports Bitcoin purchases and credit cards, respectively. Even though the process is seamless, transactions aren’t instant. The exchange will need to verify to validate that the transaction is real and no fraudulent traces are found.”
The same is true for Bitcoin ATMs. Here are some of the major factors you need to consider before you purchase Bitcoins with the help of a credit card:
Credit Card Transaction Fees
If you want to use your credit card in a Bitcoin ATM, you need to be aware of credit card fees. When you use it for Bitcoin transactions, the fees can be a bit high and can range from 2% to 10% of the amount in question. Here, the fees you are paying basically include a combination of various charges. These charges are the credit card network’s charges, the ATM operator’s charges, and the credit card issuer’s cash advance fee.
Use A Suitable Credit Card
Since credit card transactions include high fees, it is better not to use credit cards during Bitcoin transactions. Furthermore, you will also need to ensure that your credit card complies well with Bitcoin transactions. Apart from that, the credit card issuer might also treat the transaction as a cash advance. As a result, you can incur additional interest rates, which can impact your credit score as well. Hence, it might affect your creditworthiness.
Credit Card Alternatives
If you want to buy Bitcoin at a Bitcoin ATM, you can also use cash or debit card. These are good alternatives to a credit card. However, there can be some fees for debit card purchases as well. But, as compared to credit cards, debit card transaction fees are typically less. On the other hand, cash purchases seem the most cost-effective option.
Security Of The Card
A crypto transaction is a financial transaction at the end of the day. Hence, you will need to be aware of threats and issues. Therefore, you need to keep your transaction secure by staying vigilant. Hence, you must always make sure that you are working with a reputed ATM operator. Also, ensure that you are not connecting with public Wi-Fi when you are performing a Bitcoin transaction through a Bitcoin ATM.
How To Find A Credit Card That Is Compatible to Bitcoin ATMs?
It is worth noting that not all Bitcoin ATMs you find will accept credit cards. Hence, you will need to find a Bitcoin ATM that accepts credit cards. Here are a few ways to do that:
1. To search for a Bitcoin ATM that accepts credit cards, you need to use a Bitcoin ATM locator website or an app. There are websites like CoinMap or Coin ATM Radar that allow you to search for Bitcoin ATMs in your area. Hence, you can search for your nearest Bitcoin ATM that accepts credit card transactions.
2. You can also check the website of the Bitcoin ATM operator. On the website, you can check a list of their payment methods as well.
How To Use Bitcoin ATM With Credit Card? – Here Are The Steps
The following are the steps you need to take if you want to use Bitcoin ATM with credit card:
1. Use a Bitcoin ATM mapping website or app to locate a Bitcoin ATM near you. After you find a suitable ATM, go to the location.
2. Use a government ID to verify your identity in the ATM machine. You can either use your SSN, passport, driver’s license, etc. However, to ensure your ID works, you will need to register yourself on the company’s server beforehand and on the Bitcoin exchange.
3. Go to the ATM and navigate through the interface to choose the Bitcoin option.
4. Here, you will need to specify the Bitcoin amount that you want to purchase with your credit card.
5. Select the “Credit Card” option as the payment method in the Bitcoin ATM while you are about to make your payment. Also, enter your credit card information and your identity information in the next section.
6. Before the payment, the ATM screen will show the transaction amount and the breakdown of the amount. Here, you can check all the fees that you need to pay for the transaction. Make sure to review these fees before you proceed to buy Bitcoins through a Bitcoin ATM.
7. Once you purchase a Bitcoin through a Bitcoin ATM, the Bitcoin will go to your wallet. Hence, you will need to provide the address of your digital wallet. You can do that by scanning the QR code available through your wallet app.
On the other hand, you can also manually enter the address of your Bitcoin wallet app. Apart from that, make sure you double-check the address of your Bitcoin wallet. Hence, this will ensure that you do not accidentally send your Bitcoin to the wrong recipient.
Further Steps To Take
8. After reviewing your details and finalizing the transaction, follow the prompts on the screen. Furthermore, to confirm the purchase, you will also need to enter your credit card PIN.
9. After the transaction is complete, you will receive a receipt from the Bitcoin ATM. This will contain the transaction details of the Bitcoin and also the breakdown of the transaction amount. Hence, after the purchase is complete, you will receive the Bitcoin in your Bitcoin wallet after a few minutes or even instantly in some cases.
What Are The Fees Of Bitcoin ATMs?
Whether you use a credit card or not, the fees of Bitcoin ATMs are generally high. In some cases, Bitcoin ATMs can even charge up to 20 percent of the transaction. Furthermore, there are situations in which Bitcoin ATMs do not disclose the cost of the transaction to their customers. Hence, before any transaction at a Bitcoin ATM, research about the potential fees.
On the other hand, the cost of a Bitcoin transaction in a crypto exchange is quite low. In general, transactions on crypto exchanges are less than 1 percent.
Downsides Of Using Credit Card At A Bitcoin ATM
When you use your credit card to withdraw funds from any ATM, the credit card issuer views the purchase as a cash advance. The same happens when you purchase Bitcoin with a credit card at a Bitcoin ATM. This is not a good thing, and the following are some of the major cons for it:
- In cash advances, you will have to pay a higher annual percentage rate, which is not really the case with general purchases.
- If you use a foreign exchange to buy Bitcoin, you will have to pay for the foreign exchange fees as well. Generally, this fee is 3%.
- When you take an advance, you will have to pay a fee of 3% to 5%. The credit card issuer will deduct this balance from your account.
- In addition, you have a 21-day grace period if you want to pay off your purchase before you pay the interest. However, this works when you pay the balance every month in full. But, despite this, your cash advances start accruing the interest of the amount from the first day.
- There are lower credit limits if you use credit cards to buy Bitcoins at a Bitcoin ATM.
- If your issuer considers the crypto purchase as a cash equivalent, the spending will not qualify for rewards.
What Are The Alternatives To Using Credit Cards In Bitcoin ATMs?
You already know that using a credit card at a Bitcoin ATM can be expensive due to its high transaction value. Hence, here are some of the following options you need to consider:
- Debit Card: Although there are some fees for debit card purchases, they are mostly lower than credit card fees. Hence, you can use your debit card on a Bitcoin ATM.
- Cash: One of the most cost-effective options to buy Bitcoin is using cash. In general cases, the fees are minimal, and it mostly depends on the Bitcoin ATM operator.
- Online Exchanges: Online exchanges are still the best place to buy Bitcoin. Although you might have to pay some transaction fees, they are obviously lower than credit card transactions.
Wrapping Up
Hope this article was helpful for you to learn how to use Bitcoin ATM with credit card. Follow the steps mentioned above to successfully buy Bitcoin from a Bitcoin ATM. However, you must know that using a credit card can be a costly option. Hence, consider the transaction costs before you use a Bitcoin ATM.
Do you have more information to add on how to use a Bitcoin ATM? Consider sharing your information in the comments section below.
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