How to Buy Bitcoin and Crypto With a Debit Card
For decades, investors have profited by putting their money into stock market benchmarks like the S&P 500 and Nasdaq Composite. However, neither of those indices has come anywhere close to bitcoin's enormous returns over the past five years, as the leader of crypto has created innumerable millionaires.
As alternative investments increase in popularity, some people continue to buy bitcoin, opting to go with the proven winner despite its meteoric rise. However, others have their sights set on altcoins — crypto assets other than bitcoin — that can potentially outperform BTC’s gains going forward.
No matter which digital assets you target, if you want to buy cryptocurrencies, you will need a payment method like a debit card to make it work. You can also use your credit card, checking account and other options. But some people prefer using debit cards due to their ease of use, the fact that purchasing investments with them won’t immediately put you in debt and, as a bonus, receiving rewards in some instances.
If you want to buy crypto or bitcoin with a debit card, you can follow the steps in this guide to get started.
Open a brokerage account
Some crypto enthusiasts aren’t concerned with keeping their transactions private. They are happy to have a brokerage firm like Coinbase or Robinhood know about their transactions and offer a seamless experience. Brokerage accounts also let you keep your stocks and crypto in one place. If this includes you, all you have to do is create an account and start buying crypto.
But some crypto traders prefer anonymity, which brokerage accounts do not allow even if you use an anonymous crypto wallet. Companies like Best Wallet, for example, allow you to make private crypto transactions, but the moment you connect your digital wallet to your brokerage account, it is no longer private.
Create a crypto wallet
For those who prefer anonymity when purchasing crypto or bitcoin with a debit card, an external crypto wallet doesn’t go through scrutiny if you keep it private. That’s a nice perk for people who want to remain anonymous and one of the main appeals of crypto, since the use of fiat currencies make it almost impossible to conduct private transactions.
Financial institutions track your deposits, withdrawals, credit card usage, debit card usage and other information. However, if you use a debit card in conjunction with a digital wallet to buy crypto, the bank doesn’t receive any information.
Digital — or hot — wallets like those offered by Best Wallet allow you to conduct crypto transactions without any oversight. You can keep your wealth a secret and use bitcoin for purchases in the future.
Steps to buy crypto or bitcoin with a debit card using Best Wallet
If you want to use a debit card to buy bitcoin or other crypto assets, you may want to do so by creating a digital wallet through a provider such as Best Wallet. You can follow these steps to accumulate crypto with your debit card.
Step 1: Get the Best Wallet app
You can download the BestWallet via the App Store or Google Play. Out of more than 2,600 reviews, the app has a 4.4 out 5 rating in the App Store. It also has a 4.3 rating out of 5 based on more than 28,500 reviews on Google Play.
Best Wallet will request that you enable biometric authentication and set a PIN when you create an account. These measures will boost your digital wallet’s security.
Step 2: Go to the “Buy” section
The Best Wallet app has a simple interface that makes it easy to buy crypto. You can head over to the “Buy” section and choose which crypto you want to purchase.
Best Wallet offers access to thousands of crypto assets. Very few platforms offer their users that many options.
Step 3: Provide the amount you want to invest
When you head to the “Buy” section, Best Wallet will ask you to select a cryptocurrency and how much you want to invest in it.
The digital wallet allows you to make fractional investments. If you want to buy $5,000 worth of bitcoin, for example, Best Wallet will show you what fraction of a bitcoin you can purchase with $5,000 (since BTC is currently trading above $100,000).
However, you can also choose from numerous altcoins that are less expensive and more volatile.
Step 4: Enter your debit card details
The order ticket will give you the opportunity to enter a payment method. Best Wallet will pull from this payment method and tack on a 3% transaction fee when you make the purchase.
Because Best Wallet allows you to buy crypto with a debit card, you just have to enter the details on your card to get started. Then, the company saves your debit card information so it is easier to make more investments in the future.
Step 5: Review and submit the order
If you are happy with the order, you can submit the transaction and accumulate bitcoin or thousands of other cryptocurrencies in your digital wallet. Importantly, Best Wallet gives you anonymity when you trade crypto. Just make sure you do not connect your Best Wallet to any brokerage account to preserve your privacy.
Is it worth it to buy crypto and bitcoin with a debit card?
It’s better to use a debit card for crypto purchases than it is to buy the digital assets with a credit card. Debit cards have much lower transaction fees, meaning that your crypto position doesn’t have to go up as much just to break even.
Debit cards also prevent you from getting into debt since you aren’t borrowing from a line of credit. However, you should not use a debit card to buy crypto if it will trigger an overdraft fee, so be mindful of your balance before proceeding with any purchase.