How to Buy Bitcoin with a Prepaid Card

How to Buy Bitcoin with a Prepaid Card?

Buying Bitcoin and cryptocurrencies with a prepaid card is very similar to buying with a debit/credit card. The difference is that prepaid cards aren’t linked to your checking account. You load the prepaid card with funds and spend it wherever you like. Although there are numerous ways to buy bitcoin with prepaid cards, in this article I will list out the best services in terms of price, safety, and anonymity.

Whichever service you use, the basic procedure is as follows:

How to Buy Bitcoin with a Prepaid Card

Step 1: Download and set up the BTC wallet

  • Download a wallet that supports Bitcoin on your mobile or PC.

Step 2: Select an exchange that supports prepaid purchases

  • Depending on price, safety, and anonymity, select the best exchange.

Step 3: Create an account

  • Register with your name and email.

Step 4: Select your payment option

  • Go to your account settings.
  • Click link debit/credit card.
  • Add your prepaid card.

Step 5: Get verified

  • Submit verification documents.
  • Wait for a verified email.

Step 7: Buy Bitcoin with a prepaid card

  • Locate the “Buy” button on the exchange.
  • Use your prepaid card to buy Bitcoin.

Step 8: Withdraw Bitcoin to the wallet

  • Locate the “withdraw bitcoin” button.
  • Enter your Bitcoin wallet address.
  • Click withdraw.
  • Click the withdrawal confirmation sent to your email.

Where to buy Bitcoin with a prepaid card?

LocalBitcoins

localbitcoins - buy bitcoin with prepaid cardThis is a peer to peer exchange. You are buying directly from sellers. So, if you want to buy bitcoin with a prepaid card, you have to sort all available offers that accept credit cards as payment.

You have to browse offers that are available in the country you are located in. If you are outside the US, you will find that there aren’t many sellers willing to take credit card payments in exchange for Bitcoin. You will also find that sellers mark up the price of Bitcoin when taking credit card payments as a payment method.

But, do not worry. There is a way around this. If you have a PayPal account, link this prepaid card to your PayPal. Then you search for offers that take PayPal as a payment method. Mark up of Bitcoin price is noticeably lower compared to credit card offers.

Additionally, some prepaid cards come with their own bank account. Which means you can transfer money from this account to another bank. So, you can search for offers that take “national bank transfers” as a payment method. This payment method has the lowest mark up out of the 3.

Buying form LocalBitcoins is anonymous and they do not require you to verify identity. But, some sellers may ask for your ID documents when buying from them. LocalBitcoins takes no fees from buyers.

Pros:

  • No ID verification.
  • No fees.

Cons:

  • Seller’s mark up.
  • Bitcoin is not delivered immediately by the seller.

Coinmama

coinmama - buy cryptocurrency with prepaid cardCoinmama is another exchange that can be used to buy Bitcoin and other cryptocurrencies with prepaid cards. This exchange supports over 200 countries. Coinmama supports Visa/Mastercards. Your prepaid card will also work if it is Visa/Mastercard supported.

Bank transfers are also enabled by Coinmama for some countries. You can utilize this feature if your prepaid card also has a bank account linked to it.

Coinmama requires you to verify identity before buying cryptocurrencies. They take a fee 0f 5% for card purchases and 0% fee for bank transfers.

Pros:

  • 200 countries supported.
  • Reliable and trusted.
  • Quick delivery.

Cons:

  • ID verification required.
  • High fees.

Binance

binance - buy cryptocurrency with prepaid cardBinance is another exchange that lets you buy cryptocurrency with a prepaid card. They are partnered with Simplex and Indacoin to enable this feature. Binance takes a fee of 3.5% of your total amount or a fixed fee of $10 (Whichever is higher).

Binance is not just a bitcoin buying service; it is also a trading platform. They support 99% of the countries in the world. If your prepaid card is funded by your local currency, please be aware that, when buying cryptocurrency from Binance, your local currency is first converted to USD or EUR.

After the purchase, your cryptocurrency is delivered within 10-30 minutes.

Pros:

  • Good reputation.
  • Low fees.
  • Easy to use interface.

Cons:

  • Requires verification.

CEX

cex - buy cryptocurrency with prepaid cardCEX is a platform where you can buy as well as trade cryptocurrency. CEX supports Visa, MasterCard, bank transfer, and cryptocurrency as payment methods. Prepaid cards can also be used if your prepaid card supports Visa or MasterCard.

For card payments, CEX charges a fee of 2.99%. For bank transfers, CEX takes no fee. You are required to verify your identity before buying cryptocurrency.

CEX supports almost all countries restricting only to a few. They are registered in the UK and have MSB status in FinCEN. The website is compliant with PCI DSS standards.

Pros:

  • Low fees.
  • 99% of countries supported.
  • Strong security.

Cons:

  • Requires verification.

Paxful

paxful - buy Bitcoin with prepaid cardPaxful is another peer to peer exchange. How quickly your bitcoin is delivered entirely depends on the seller. Until the seller verifies your payment, Bitcoin is held in escrow. Just like LocalBitcoins, you can use your prepaid card to buy Bitcoin. You have to sort all sellers that accept “credit card” as a payment method.

If you have already connected your prepaid card to PayPal, you can sort sellers that take “PayPal” as a payment method. Whichever option you choose, be aware of the seller’s Bitcoin mark up.

Paxful takes no fee and verification is not required.

Pros:

  • No verification.
  • No fees.
  • All countries supported.
  • Multiple payment methods.

Cons:

  • Seller’s mark up.
  • Bitcoin not released immediately.

Coinbase

coinbase - buy Bitcoin with prepaid cardCoinbase is probably the easiest way to buy Bitcoin and other cryptocurrencies. Buying Bitcoin with a prepaid card is also supported here. Just like CEX, Coinbase requires you to verify identity.

Unfortunately, as of now, Coinbase is only supported in 42 countries. The majority of cryptocurrency is stored offline. Cryptocurrencies stored on their servers are covered by their insurance policy.

Buying cryptocurrency from Coinbase can’t be any easier. You can use your prepaid card to buy from Coinbase. They charge a fee of 3.99%. However, this exchange requires you to go through a long verification process before letting you buy.

Pros:

  • Easy interface.
  • Low fees.
  • Secure storage.
  • Complaint with many standards.

Cons:

  • Majority of countries not supported.
  • Strict verification.

What is the best way to buy Bitcoin with a prepaid card?

Now with all the above exchanges that let you buy cryptocurrency with a prepaid card, you may be wondering, what is the best exchange? Well, in fees wise, CEX has the lowest fee. In terms of anonymity, your best options are LocalBitcoins and Paxful. In terms of safety, there is no one exchange that is essentially secure than the other. All exchanges listed here have a somewhat similar reputation and compliance.

Conclusion

These are the top exchanges to buy Bitcoin and cryptocurrency with a prepaid card. If your prepaid card supports Visa/Mastercard, you can use any one of the exchanges listed above. However, I will advise you to choose the best exchange based on your requirements.