Bitcoin Payment Systems That You Have to Know – Bitcoin is a digital currency stored on an open and decentralized payment system. People can make money online and work from home through bitcoin. Bitcoins produced by people, and running computers all around the world, increasing business and using software to solve mathematical problems.
They can be used to buy things electronically. In that sense, it is like conventional dollars, yen, or euros, that is also traded digitally. However, bitcoins have the important characteristic. Decentralized payment system makes it different with conventional money.
This currency is not backed by the government or any country’s central bank. Therefore, you should remember that trade only what you can afford to lose.
Bitcoin Payment System
In this time, many people make money online. One of the choices that they can take is bitcoins. They use bitcoin to trade goods or services with vendors who accept Bitcoins as payment. If you want to buy bitcoins, you have some choices of the payment system. You can buy bitcoin with a credit card, bank account, and PayPal.
1. Buy bitcoin with credit card
It seems more difficult to buy Bitcoins with a credit card. The reason that buys Bitcoins with a credit card is not available all around the world. So many exchanges need to protect themselves in order to offer this service and not all of them have the technology to do so. You can use this exchange to buy bitcoin with a credit card.
This is the largest Bitcoin broker worldwide. Users are allowed to buy up to $150/week of Bitcoins via a credit card. Credit card transaction will be charged 3.75% convince fee. Coinbase is opened in 33 countries around the world. You will receive an additional $10 Bitcoin bonus when buying more than $100 Bitcoins.
There are the steps to buy Bitcoins with a credit card on Coinbase.
– Create a Coinbase account
– Go to “setting” – “payment methods” add payment method
– Click “credit/debit card”
– Enter your card’s information
– Once the card is confirmed, you can go to “buy/sell” and buy your Bitcoins
– The bitcoin will be sent to your Coinbase wallet
Pros: Relatively low fees, user-friendly interface, established reputation
Cons: Support takes time to respond, Not available worldwide
Overall rating: A
CoinMama specializes in Bitcoin purchases through a credit card. They don”t limit you to a maximum amount of Bitcoins that you can buy. But, they take a premium fee for their services. You can buy Bitcoins up to $150 without verification.
There are the steps to buy Bitcoins with a credit card on CoinMama.
– Open CoinMama homepage
– Choose how many Bitcoins you want to buy
– Enter the price either in BTC or in USD or choose one of the offered packages
– Click button “buy Bitcoins” and you will be taken to the sign-up page.
– Do verification by submitting a photo ID document
– Enter your own Bitcoin address
– Enter the payment detail and place your order.
Pros: respectable company, good support, fast service
Cons: Limited states in the US
Overall rating: A
CEX.IO is an option to buy Bitcoins using a credit card. This has become a multi-functional bitcoin exchange and trusted by over 450.000 users. CEX.IO works in Europe, United States, and some countries in South America.
There are the steps to buy Bitcoins with a credit card on CEX.IO.
– Open an account
– Click on ”Wallet” and “Fund” and next to the requested currency
– Choose using credit card to get your Bitcoins instantly
Pros: high buying limits, reputable company
Cons: higher exchange rates, limited countries available
Overall rating: B+
2. Buy bitcoin with bank account
Besides using a credit card, you also can buy bitcoin with a bank account. The are some exchanges which can be used to buy Bitcoins.
In the United States, you can buy Bitcoin with a connected bank account via ACH bank transfer. In Europe, you can buy with your bank account via SEPA transfer. A flat 1.49% fee is charged by Coinbase for all transactions.
– High liquidity and buying limits
– Instant to buy
– Newcomers are easily to get bitcoins
– This exchange may track how and where you spend your bitcoins
– Purchases through bank transfer can take up to 5 days to complete
SEPA, SOFORT, and Online Bank Transfer are bank account payments which are accepted by BitPanda.
– Reliable and trusted broker
– Buying bitcoins with credit/debit card has lowest fees
– Fees are not shown openly on the site but instead included in the buying price.
By funding their account with ACH transfer, US customers can purchase Bitcoins on Gemini.
– Regulated and trustworthy exchange
– Instant deposit lets you buy coins quickly
– Somewhat confusing to use new buyers
– Not yet available in all United States
3. Buy bitcoin with PayPal
The fact is you can not buy bitcoin very easily. Paypal has been a favorable Bitcoin in the last year but it is still an issue to find credible places to buy Bitcoins with Paypal in 2018.
If you are only looking to profit from Bitcoin’s price swings, you can buy Bitcoin with Paypal through eToro. eToro has a platform which will allow you to buy Bitcoins with Paypal but you will not be able to withdraw or send them to other people. You only can sell them for fiat currency.
Pros: variety of payment methods accepted, relatively low fees
Cons: You don’t actually own the Bitcoins, not available in the US.
There are steps to buy bitcoins with PayPal through Virwox.
– Go to Virwox
– Open a free account
– Fill out our personal details
– Activate your account
– Change your password
– Fund your account through Paypal
– Buy SLL either with USD or with SLL
– Withdraw your bitcoins
Pros: – a reliable method which has been around for a long time
Cons: -high fees
4. Bitcoin exchange rate
Bitcoin exchange rate to the US Dollar and other major currencies is determined by demand and supply as with other global exchange rates. Although many see Bitcoin as a store value against government-backed fiat currencies, the traded value of Bitcoin has proven volatile through various booms and busts in demand.
Bitcoin is the way to make money online and you can work from home.