In the fast-paced digital world, buying cryptocurrency has never been easier. With its rapid expansion and growing acceptance globally, more people are turning towards this alternative form of investment. Among numerous payment methods available, prepaid cards have emerged as a popular and convenient choice for buying cryptocurrency.
This method offers anonymity, ease of use, and a simple way to manage funds. Whether you’re a seasoned investor or a beginner exploring the world of digital currencies, this Cryptopolitan guide will give insights into buying cryptocurrencies using a prepaid card, ensuring a seamless and secure transaction.
Can you buy crypto with a prepaid card?
Yes, it is possible to purchase cryptocurrency using prepaid cards at various exchanges such as eToro, CEX, and Coinmama.
A prepaid card is a payment card that has funds pre-loaded onto it, even those used as gift cards. It functions like a debit card but isn’t connected to a checking or savings account. To use it, you have to add money to the card beforehand, and then, it can be used to purchase items or withdraw cash.
So, purchasing cryptocurrency using a prepaid gift card, such as a prepaid Visa debit or gift card, or a prepaid Mastercard, should be possible since these cards typically authorize bank transfers for buying digital currencies.
While most specialized crypto exchanges accept gift cards, some trading platforms or brokers may not allow direct purchases of cryptocurrency and other cryptocurrencies with gift cards. In such cases, it is suggested to use third-party payment platforms like PayPal for buying cryptocurrency.
As for the policy, you can buy and sell digital assets using prepaid cards through licensed exchanges as there are no policies prohibiting it. In collaboration with the Bybit exchange, Mastercard has also launched a cryptocurrency card called Bybit Card in the UK and EU markets, which supports a core group of cryptocurrencies.
Some crypto exchanges do not accept prepaid cards, but investors can still deposit funds through third-party payment platforms such as PayPal, Venmo, Skrill, Neteller, or Stripe.
Exchanges where you can buy crypto with a prepaid card
Debit and credit cards are the most commonly used payment methods to purchase cryptocurrency. However, credit cards may not be the most suitable choice due to high fees. Nevertheless, they are convenient.
Using a debit card to buy cryptocurrency may be quicker, but it may also result in higher fees compared to using a bank transfer (ACH or SEPA). When deciding between the two options, consider your time preference. If you need to purchase cryptocurrency right away, using a debit card may be helpful. This was particularly useful during the May 2022 crypto crash, as those who bought when the market was low were able to catch a 20% bounce.
Using a prepaid card is a secure way to purchase cryptocurrency, which is a concern for both novice and seasoned traders. However, it is important to note that not all cryptocurrency exchanges accept prepaid cards. Some of the best platforms that currently accept prepaid cards include:
eToro – Regulated Crypto Platform with Zero Fees on USD Deposits
Our top recommendation for buying cryptocurrency with a prepaid card is eToro. It’s very easy to use, even for beginners, and you can complete your purchase within minutes. Opening an account is also a quick process. You just need to enter your personal details, upload a copy of your government ID for verification, and provide proof of address. Once verified, you can buy cryptocurrency or any of the other 60+ cryptocurrencies supported on the exchange by searching for them.
To buy cryptocurrency, you must add funds to your wallet. You can do this by going to the deposit page, entering the desired amount, choosing your payment method, and confirming the transaction on your device. Once the transaction is complete, you will receive a confirmation message.
eToro has obtained multiple tier-1 licenses and complies with all required regulations to operate in the US. It is also regulated in various European countries and plans to expand its operation to more Asian countries in the near future.
Your funds are secure in the eToro crypto wallet because security is a top priority. Over 27 million people worldwide prefer eToro as their exchange because of these benefits. The platform is regulated by FCA, ASIC, and CySEC.
Crypto.com – Buy cryptocurrency with Prepaid Card and 250+ Cryptocurrencies
It’s easy to buy cryptocurrency with a prepaid card on Crypto.com using the user-friendly interface. Simply add your prepaid card as a payment option and follow the prompts to enter and verify the card details on the payments gateway.
After completing the previous step, go to the “Trade” section and search for cryptocurrency. Then, enter the desired amount of cryptocurrency, and click on the “Buy” button. Since many prepaid cards use two-factor authentication, you will need to confirm the transaction request either by entering a pin or using your biometric data. Once the transaction is confirmed, your cryptocurrency should be reflected in your wallet shortly.
You can trade over 250 cryptocurrencies on the platform, which includes trading against Tether (USDT), cryptocurrency, or the native token Cronos (CRO).
In addition to trading, the platform allows users to earn interest in cryptocurrency. The cryptocurrency APY can reach up to 6% annually, but a three-month lock-in period is mandatory. However, users can opt for flexible terms with a lower APY. Like Binance, it also has its own NFT marketplace and they also offer a metal VISA prepaid card.
Coinbase – Buy cryptocurrency with a Prepaid Card in the US
The Coinbase platform is the second-largest cryptocurrency exchange in the world, based on trading volume. Many people in the United States use it to purchase cryptocurrency using prepaid cards, as well as other bank cards and bank wire transfers.
Coinbase offers two different platforms for buying crypto using a prepaid card: regular Coinbase and Coinbase Pro. The regular platform is designed specifically for beginners and is very user-friendly. Coinbase Pro, on the other hand, is geared more toward experienced traders and can seem more complicated due to its technical indicators and appearance.
In order to buy cryptocurrency, you will need to complete the KYC process first. Once that is done, you can add funds to your wallet using your prepaid card, search for cryptocurrency, and confirm the transaction after entering the amount of cryptocurrency you want to buy. This entire process can be completed in 10 minutes or less.
The transaction fees on Coinbase vary depending on the payment method used. If you deposit funds using a prepaid card, there is a deposit fee of 2.5% on the total amount. Other payment methods, such as purchasing cryptocurrency with Apple Pay, also have their own unique fees.
Coinbase values security and provides authentication tools such as two-factor authentication and biometric fingerprint logins. In the event of a breach, Coinbase is insured for all its USD balances and uses AES-256 encryption for digital wallets. Almost 98% of customer funds are stored in offline wallets to ensure they are protected from online hacks.
CEX – Buy cryptocurrency and Get Crypto Loans
CEX is a regulated crypto exchange that operates in more than 200 countries, including the 48 states in the US. Established in 2013, CEX became an exchange in 2016 and currently offers over 100 cryptocurrencies.
CEX is a US-based exchange that operates within all regulatory guidelines and holds the necessary licenses. To ensure the highest level of security, they store most of their digital assets in cold wallets. CEX is known for providing excellent customer service, which is an area where many other major crypto exchanges struggle.
To purchase cryptocurrency on CEX, the process is the same as any other exchange. First, create an account, then input payment information and proceed with trading. The deposit fee is reasonable at 2.99% of the deposit amount.
The platform has two interesting features for users. First, users can earn interest on their crypto holdings through crypto staking. Second, users can obtain cash by using their crypto as collateral for a loan, rather than selling their crypto.
Coinmama – Most accessible platform to buy cryptocurrency
Coinmama is a crypto exchange that operates in over 200 countries, making it unique in serving a large and diverse demographic. It has been around since 2013 and has amassed a user base of over 3 million people worldwide.
The platform accommodates multiple languages due to its wide reach. However, when buying cryptocurrency with a prepaid card, it charges a transaction fee of 5%, and only supports Prepaid card purchases made with Visa and Mastercard.
Coinmama offers a self-custody mobile wallet that empowers individuals with complete authority over their cryptocurrency. It supports Tether (USDT), USD Coin (USDC), Bitcoin (BTC), and Ethereum (ETH), the Coinmama crypto wallet ensures a secure and trustworthy platform for purchasing and safeguarding digital assets. Users can enjoy the benefits of direct ownership without the involvement of intermediaries or reliance on third-party custody services.
The evolving nature of cryptocurrency markets and the increasing use of prepaid cards have converged to create an accessible route for investors. Understanding the mechanics of buying cryptocurrencies with a prepaid card is a critical step for any investor, ensuring security, efficiency, and the flexibility of transactions. While it’s important to stay aware of potential challenges and fraud risks, armed with the right knowledge, anyone can safely navigate the cryptocurrency landscape. This comprehensive guide, coupled with the FAQs, aims to demystify the process, providing a practical roadmap for the exciting journey into the world of digital currencies.
What are the benefits of using a prepaid card to buy cryptocurrency?
Prepaid cards offer numerous benefits, including better control over spending, enhanced privacy, easier access for those without traditional banking services, and often they don’t require a credit check.
Can I use any prepaid card to buy cryptocurrency?
While many exchanges accept prepaid cards, it’s essential to check whether your card is accepted at your chosen exchange. Some cards may have restrictions based on the issuing company or country.
How secure is it to use a prepaid card for buying cryptocurrency?
Using a prepaid card is generally secure. However, like all transactions, it’s crucial to use trusted exchanges, maintain discretion while handling card details, and monitor transactions regularly to ensure security.
Are there any fees associated with buying cryptocurrency with a prepaid card?
Yes, fees may apply when buying cryptocurrency with a prepaid card. They may vary based on the cryptocurrency exchange and the card issuer. Always check the fee structure beforehand.
Can I buy all types of cryptocurrencies with a prepaid card?
We can purchase most popular cryptocurrencies like cryptocurrency and Ethereum with a prepaid card. However, availability might vary across different exchanges and depend on the specific type of prepaid card.
How long does it take to buy cryptocurrency with a prepaid card?
Generally, the process is instant. Once the transaction is confirmed, the cryptocurrency is transferred to your digital wallet. Delays may occur based on the network congestion or exchange’s processing times.
Do I need a digital wallet to store the cryptocurrency purchased with a prepaid card?
Yes, you need a digital wallet to store your cryptocurrency. A digital wallet provides you with a public and a private key to manage your assets.
Is it possible to remain anonymous while buying cryptocurrency with a prepaid card?
While prepaid cards do offer an additional level of privacy compared to other payment methods, complete anonymity is challenging due to Know Your Customer (KYC) regulations that many exchanges follow.
What are the challenges of buying cryptocurrency with a prepaid card?
Challenges may include high transaction fees, lower spending limits, potential card acceptance issues on exchanges, and the difficulty of retrieving funds if the card is lost or stolen.
Can I sell my cryptocurrency and load the money back to my prepaid card?
The ability to sell cryptocurrency and load money back onto a prepaid card depends on the exchange and card issuer policies. Some platforms may allow this feature, but always verify in advance.