The Basics Of Bitcoin
In order to understand how to buy Bitcoin with a credit card, you first need to know a little more about the currency itself, including what it is, how its generated, and more pertinent information.
What is Bitcoin?
Bitcoin is a virtual online currency that everyone can buy or sell on the network. The Bitcoin transaction process happens via online peer-to-peer technology and is managed by Bitcoin servers. Each time these servers communicate, they update and share information concerning each user’s number of Bitcoins.
Generating Bitcoin
Bitcoin is generated via ‘mining’ and defined by an algorithm that has a fixed rate and finite supply to be mined. Therefore, we know how much Bitcoin has been generated and is in circulation to be traded.
Fundamental influence of Bitcoin
Determining the value of Bitcoin is different from other currencies in that it is not fiat and has no precious metal backing to it. Also, the very nature of Bitcoin means it is subject to instability. Bitcoin can be affected by factors outside those influences impacting forex markets. Bitcoin is heavily affected by government regulations, consumer speculators, investors, and its adoption by mainstream corporations as proper payment for their services.
Making Money Trading Bitcoin
There are numerous ways to make money with Bitcoin trading. Most profit-making occurs when trading Bitcoin against the US dollar, which is known as BTC/USD pairs. First, find a top Bitcoin CFD trading broker. Then, invest in this cryptocurrency the same way you would with a physical currency – buying low and selling high. As Bitcoin is highly volatile, you should be able to identify its dips through research.
Here at TopBrokers.Trade, we take pride in providing the best possible online trading broker comparison, reviews and ratings. These reviews enable you to select the best trading platform for your needs. We don’t just help you to pick a great place to trade, but also do everything that we can, to show you how to get started. For more information on CFD Trading, please see our tutorial: The Basics of CFDs.
How to Buy Bitcoin with Credit Card
These days it seems easier than ever to buy Bitcoin with credit card, but the issue is knowing which method to choose. Below, we will discuss how to buy Bitcoin with credit card.
The reason many exchanges do not let you buy Bitcoin with credit card is because of chargeback issues sellers wish to avoid. Many exchanges must protect themselves so that they can offer this Bitcoin-purchasing service, and not all of these brokers have the technology to do so.
It is complicated to buy Bitcoin with a credit card. Even though credit companies have been amenable to Bitcoin during the past two years, it is still not easy to find reputable places to buy Bitcoins with Credit Card or alternate payment methods in 2018.
The reason there are problems with buying Bitcoin with credit card is the high number of chargeback cases created by scammers. These swindlers buy Bitcoin with Credit Card or other ePayment methods and then claim they didn’t receive their Bitcoin in order to keep their cash and Bitcoins.
If you’re looking to buy Bitcoin with credit card for trading purposes, take a look at our suggested brokers.
Trade Bitcoin Online With CFD Services
If the purpose of your trading is to take advantage of Bitcoin’s volatility, your best option is to use an online platform that allows CFD services. A few CFD platforms that allow this kind of trade with Bitcoin, please see the current list above. Many of these online trading brokers work with most countries around the world, not including the United States.
These platforms are a good option if you just want to trade in Bitcoin because they accept multiple forms of payment, including Paypal, major credit cards, and wire transfers. The ability to buy Bitcoin with credit card is especially useful. Also, keep in mind is that if you trade through a forex platform, you will pay the lowest commissions possible (when compared to alternatives). Forex companies use an exchange rate that is aggregated from different Bitcoin exchanges.
Bitcoin Trading with a Regulated Broker
Because of Bitcoin’s rocky reliability history, it’s important to find a regulated broker. Because of the tenuous nature of this cryptocurrency’s ownership, reliability and trust with your online Bitcoin trading broker are even more valuable than with any other currency.
The amount of competition and players in the Bitcoin market can intimidate new purchasers, who may not know what to look for. So, keep these things in mind before you decide on the right online broker for Bitcoin trading:
Regulation
Use a regulated Bitcoin Broker or Exchange. The regulatory body develops rules and services to protect the market, as well as its traders and investors. The UK’s Financial Conduct Authority (FCA) is an example of this body. Open your trading account with a regulated broker to avoid safety hazards.
Customer Service
Bitcoin trading happens online, 24 hours a day, so customer support needs to be available at all times. Many brokerages have a local UK office so that their customers can talk to a live support person. The office’s ability to answer your questions about important aspects of Bitcoin trading indicates its reliability and trustworthiness.
A good broker should also be transparent, keeping its details in the open for everyone to see.
Account Types
A good broker for Bitcoin should offer either multiple account options or customizability. He or she should even have a separate account for beginners. Look for a Bitcoin Broker with competitive spreads and easy deposits/withdrawals.
Tradeable Assets
Don’t just focus on Bitcoins when selecting your Broker. Also, there are many other types of investment alternatives offered. These include Forex (FX) currencies, ETFs, stocks or shares, CFDs, futures or options.
Fees
Bitcoin costs money, and, unlike buying stocks or bonds, Bitcoin brokers usually charge a fee that is a percentage. You may want a broker that charges a flat rate fee instead of a percentage.
Liquidity
It’s essential to consider the liquidity an exchange can have, especially with Bitcoin, where everyone is looking to buy and sell. Liquidity is the ability to sell without affecting the price.
Your money may be at risk when trading CFDs; therefore, it is generally suitable to more experienced traders. Also, you will not be able to keep your Bitcoins, but, instead, you will take the profit you made from your CFDs.
For more information on CryptoCurrency and Forex Trading, please see our tutorial: The Basics of Cryptocurrency.
