The option to buy Bitcoin with gift card is one of a number of ways to trade the world’s oldest and most popular cryptocurrency. Apart from the buy Bitcoin with gift card option, you can also buy through some other ways.
For instance, with a crypto debit card, direct transfers, crypto and other digital wallets and checkouts. But before delving into the details of how to buy Bitcoin with gift card, it is pertinent to first take a brief look at what a gift card actually is.
Gift Card Explained
A gift card is a type of prepaid card that can be obtained at banks or other financial institutions as well as from retailers. It is a simple and convenient alternative to cash which you can buy and gift a loved one or friend.
Like other prepaid cards, gift cards are preloaded with a specific sum of money. Hence, the card user can spend only the amount loaded on the card. While some prepaid cards are reloadable, others are not.
With the advent of blockchain and cryptocurrencies, people can now buy Bitcoins with gift cards., for example, buying Bitcoins with Amazon gift card or with Visa gift card.
What does a typical gift card look like? Gift cards come in different design formats that include physical cards fitted with magnetic stripes and digital cards you can send through mobile apps or email.
They may be open loop or closed loop in nature. The former is accepted almost everywhere while the latter can only be used in one store or outlet.
How To Buy Bitcoin With Gift Card
Let’s say you are a crypto newbie looking to buy Bitcoin with Amazon gift card. Here are the steps you will pass through to achieve your objective:
Choose A Cryptocurrency Exchange
Choosing a cryptocurrency exchange is usually the first step for anyone wishing to buy Bitcoin with gift card. A crypto exchange will enable you to link your gift card to the Bitcoin you want to buy.
Note that not all crypto exchanges accept gift cards as a payment method. Luckily, many exchanges not only accept gift cards, but also have their own branded Bitcoin gift cards.
Some exchanges that will enable you buy Bitcoin with gift card include Binance, Bitvalve, CoinCola, and Paxful.
Set Up Your Account
After you have carefully selected a crypto exchange, the next step is to register or open your account on the exchange. Here, you will be mandated to provide credentials such as your full name and email address as well as a password.
Upon creating your account, you may be subjected to KYC and other verification procedures. The KYC process is meant to further familiarize you with the exchange and to secure your account.
Link Your Gift Card
Linking your gift card to your account should be a breeze if you follow the crypto exchange’s instructions. Typically, you may be asked to:
- Go to the “Payment Methods” page or section and click “Add a new card” or a similar instruction.
- Provide your card details (e.g., number, CVV code, and expiration date).
An authorization fee may be charged by some exchanges. So you may need to have some funds in your account even at that early stage.
Buy Bitcoin
Congratulations on your successful linking! Now, all you have to do to buy is to fill out your order and then place it. After this simple procedure, the exchange will provide you with details of all cryptocurrency sellers on its platform.
Choose your preferred seller and then make contact with them to start negotiating. After the negotiation, pay the required fee and your Bitcoins will be credited to your wallet.
Note that prepaid cards are subjected to a variety of charges when used to buy cryptos. Some of these fees may include exchange fees and transaction fees.
You may even be charged for adopting a gift or other prepaid card as your payment method. The charges you’ll likely incur can be a function of the kind of prepaid card you are using.
It is important to take note of these fees since they can significantly impact the cost of your overall transactions.
Advantages of Buying Bitcoin With Gift Card
Bitcoin is not revolutionary and disruptive for no reason. Here are some reasons people will want to buy Bitcoin with gift card:
Anti-Censorship
One of the primary reasons Bitcoin was developed is the override excessive government control of financial systems all over the world. That is why blockchain systems are known as Decentralized Autonomous Organizations (DAOs).
DAOs enable people to buy and sell cryptocurrencies without much interference or control by third parties such as governments, banks, and middlemen.
Increasing Adoption
Blockchain has forced its way into reckoning in the finance industry, even as governments scramble for appropriate laws to govern cryptocurrencies. Finance systems all over the world continue to adopt blockchain technologies in their day-to-day operations.
In recent times, for example, the likes of JP Morgan, BlackRock, Standard Chartered, Goldman Sachs, HSBC, and other key finance industry players have deepened their involvement with blockchain.
Top-Performing Asset
Bitcoin has constantly remained the top cryptocurrency by market capitalization. As it grows in popularity, its price has skyrocketed. One Bitcoin was exchanged for about $500 in May 2016.
By August 13, 2024, just one bitcoin was valued at $58,948, a staggering 11,690% growth.
Opportunity For Stock Trading
Bitcoin is now an ETF in leading economies such as the US, Germany, Australia, Canada, and Brazil as well as in tax havens like Switzerland, Liechtenstein, Bermuda, Guernsey, and Jersey.
With other countries also considering to adopt the policy, you could be in a position to invest in stocks with your Bitcoin in the future if you decide to buy Bitcoin with gift card today,
Can Improve Your Finances
Bitcoin investments have turned many people into overnight millionaires. So converting your gift card to Bitcoin could be your first step towards becoming richer than you ever imagined.
Disadvantages Of Buying Bitcoin With Gift Cards
Even with its numerous merits, buying Bitcoins with gift cards is not without some cons. Here are some of them:
- Higher Fees: The transaction costs for someone looking to buy Bitcoin with Visa card, for example, will often be higher than when purchasing crypto with other payment methods.
- Lower Integration: As noted previously, some crypto exchanges do not accept gift cards as a payment method, thus limiting buying options.
- Fraud: The cryptocurrency landscape experiences its fair share of fraud incidents. Fraudulent platforms and sellers can defraud you of your gift card.
- Bitcoin Volatility: Bitcoin’s relatively higher level of volatility makes it a higher-risk asset to invest in. It is much more volatile than both gold and fiat money. Though the price of Bitcoin usually rebounds from declines, the coin’s price history shows a trend of volatility.
Is Buying A Gift Card With Bitcoin Possible?
Thus far, the main focus has been to buy Bitcoin with gift card. But you can also buy gift cards with Bitcoin.
Assuming you want to buy Visa gift card with Bitcoin, then crypto exchanges you can consider include CoinCola, BitValve, and Paxful, among others.
Tips For Buying Bitcoin With Gift Card
Internet-based transactions require some level of caution and knowledge. The following tips will help assist you use your gift card to buy Bitcoin via a cryptocurrency exchange:
Research
Knowledge is power. You need to gather as much relevant information as you can through research and due diligence in other to make optimal decisions. It is important to understand an exchange’s terms and conditions before opting in.
Use An Esteemed P2P Exchange
If you wish to boost your chances of having a good customer experience, then try to work with a reputable P2P crypto exchange. Such exchanges usually have an extended working base and a huge number of positive user reviews.
Keep Track Of Bitcoin’s Exchange Rates
The internet has plenty of resources through which you can monitor Bitcoin exchange rates and other cryptocurrency news. Knowing the prevailing exchange rates will ensure nobody swindles you and that you buy at the most favourable rate.
Choose A Low-Cost Crypto Exchange
Because of the likelihood of prepaid cards attracting higher transaction costs than other payment methods, it is necessary to select an exchange that charges the least possible transaction costs.
Prioritize Security
Fraud is not uncommon among crypto exchanges. Use as many cybersecurity measures as possible to protect your crypto exchange account and digital wallet.
A password was mentioned previously as part of the account setup process. You need to have a strong password. You should also take advantage of extra security measures such as two-factor authentication and VPN.
Additionally, it is ideal to always use a personal computer for your crypto transactions.
Wrapping Up
If you need to buy Bitcoin with gift card, then no need to worry because the process is not only simple but also very convenient, as long as you adhere to instructions.
But, before settling for a crypto exchange, try to do thorough research and due diligence. Be sure to choose a low-cost and reputable P2P exchange, secure your crypto account and know the exchange rate of Bitcoin.
