What Is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
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Best Cryptocurrency Trading Platform that Works Automatically xploittraders is committed to taking a leading position in the international investment market thanks to a good combination of highly efficient equipment for cryptocurrency mining and a team of professional traders by electronic currency.
The use of attracted investments can significantly increase the volume of mining and trade deposits on popular crypto exchanges. Participation in the xploittraders investment program is accessible to all interested users of Bitcoin, the base currency by which the company operates. Depending on the size of your deposit the company offers profits from 2.5% to 8% on a daily basis, forever. Your accruals are every 24 hours and you’re able to withdraw $10 and more in instant mode.
How to Buy Bitcoin with PayPal
It is also possible to buy Bitcoin through payment processor PayPal. There are two ways to purchase Bitcoin using PayPal. The first, and most convenient method, is to purchase cryptocurrencies using your PayPal account. The second option is to use the balance of your PayPal account to purchase cryptocurrencies from a third-party provider. This option is not as convenient as the first one because very few third-party sites allow users to purchase Bitcoin using the PayPal button.
Four cryptocurrencies – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash – can be purchased directly through PayPal. With the exception of Hawaii, residents of all states can either use their existing PayPal accounts or set up new ones.
To set up a crypto account with PayPal, the following pieces of information are required: Name, Physical Address, Date of Birth, and Tax Identification Number. There are a number of ways in which you can buy Bitcoin through PayPal.
Some of them are:
- Existing balance in your PayPal account.
- A debit card linked to your PayPal account
- Bank account linked to your PayPal account
It is not possible to use a credit card to purchase Bitcoin using PayPal. During the purchase process, PayPal will display a price. However, the inherent volatility of cryptocurrency prices means that those prices are subject to change quickly. You should make sure that you have sufficient funds in your account to make the purchase.
When you buy Bitcoin directly from PayPal, it makes money off the crypto spread or the difference between Bitcoin’s market price and the exchange rate between USD and the cryptocurrency. The company also charges a transaction fee for each purchase. These fees depend on the dollar amount of purchase. For example, a flat fee of $0.50 is charged for purchases between $100 to $200. Thereafter, the fee is a percentage of the overall dollar amount. For example, a fee of 2% of the total amount is charged for crypto purchases between $100 to $200.
One disadvantage of purchasing cryptocurrencies through PayPal is that you cannot transfer the crypto outside the payment processor’s platform. Therefore, it is not possible for you to transfer cryptocurrencies from PayPal’s wallet to an external crypto wallet or your personal wallet.
The other disadvantage of using PayPal is that very few exchanges and online traders allow the use of the payment processor to purchase payments. eToro is among the few online traders that allow the use of PayPal to purchase Bitcoin on its platform.
How to Buy Bitcoin with Credit Card
The process to purchase Bitcoin with credit cards is similar to the one for buying the cryptocurrency with debit cards or through automated clearing house (ACH) transfers. You will need to enter your credit card details with the exchange or online trading firm and authorize the transaction. In general, however, it is not a good idea to purchase Bitcoin with credit cards. There are a couple of reasons for this.
First, not all exchanges allow Bitcoin purchases using credit cards due to associated processing fees and the risk of fraud. Their decision to do so may work out in the best interests of customers. This is because credit card processing can tack additional charges onto such transactions. Thus, in addition to paying transaction fees, you will end up with processing fees that the exchange may pass onto you.
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The second reason is that credit card purchases can be expensive. Credit card issuers treat Bitcoin purchases as cash advances and charge hefty fees and interest rates on such advances. For example, American Express and Chase both count purchases of cryptocurrencies as cash advance transactions. Thus, if you purchase $100 worth of Bitcoin using an American Express card, you will pay $10 (current cash advance fee for such transactions) plus an annual percentage fee of 25%.
An indirect method of purchasing Bitcoin using a credit card is to get a Bitcoin Rewards credit card. Such cards function like your typical rewards credit card except they offer rewards in the form of Bitcoin. So, they invest cash back earned from purchases into Bitcoin. An example of a Bitcoin Rewards card is the BlockFi Bitcoin Rewards Credit Card3. Beware, however, that the annual fee on these cards may be steep and there may be additional costs associated with the conversion of fiat currencies into crypto.
Alternate Ways of Buying Bitcoin
While exchanges like Coinbase or Binance remain some of the most popular ways of purchasing Bitcoin, it is not the only method. Below are some additional processes Bitcoin owners utilize.
Bitcoin ATMs act like in-person Bitcoin exchanges. Individuals can insert cash into the machine and use it to purchase Bitcoin that is then transferred to a secure digital wallet. Bitcoin ATMs have become increasingly popular in recent years; Coin ATM Radar can help to track down the closest machines.