How To Buy Cryptocurrency Using a Prepaid Card

In the fast-evolving digital landscape, getting into cryptocurrency is easier than ever.

As it gains global acceptance, more people are turning to unconventional investments, with prepaid cards emerging as a popular choice.

This method offers anonymity, easy use, and efficient fund management.

Whether you’re an experienced investor or a crypto beginner, Cryptopolitan’s guide on using prepaid cards for cryptocurrency ensures a secure and seamless transaction, meeting the needs of a diverse user base.

Can you buy crypto with a prepaid card? 

Yes, you can buy cryptocurrency using prepaid cards on exchanges like eToro, CEX, and Coinmama.

A prepaid card is like a debit card with pre-loaded funds, separate from a bank account.

Using prepaid Visa or Mastercard gift cards should work, as they typically enable bank transfers for buying digital currencies.

While many crypto exchanges accept gift cards, some platforms may not allow direct purchases with them.

In such cases, using third-party payment platforms like PayPal is recommended for buying cryptocurrency.

Generally, there are no policies against buying and selling digital assets with prepaid cards on licensed exchanges.

Notably, Mastercard has collaborated with Bybit to launch the Bybit Card in the UK and EU markets, supporting a core group of cryptocurrencies.

While some exchanges don’t accept prepaid cards, investors can still deposit funds through third-party platforms like PayPal, Venmo, Skrill, Neteller, or Stripe.

Exchanges where you can buy crypto with a prepaid card

Debit and credit cards are common for buying cryptocurrency, but credit cards may have high fees. Debit cards are faster but may incur higher fees than bank transfers. Consider your time preference; use a debit card for quick purchases. During the May 2022 crypto crash, quick buyers caught a 20% bounce.

Prepaid cards offer secure cryptocurrency purchases, vital for both new and experienced traders. Note that not all 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

For buying cryptocurrency with a prepaid card, eToro is our top recommendation. It’s beginner-friendly, and you can complete purchases within minutes.

Opening an account is swift; just enter personal details, upload ID for verification, and provide proof of address.

After verification, buy from 60+ supported cryptocurrencies.

To buy, add funds to your wallet through the deposit page. Choose the amount, payment method, and confirm on your device.

Upon completion, you will receive a confirmation message. eToro prioritizes security, holds tier-1 licenses, complies with US regulations, and is regulated in European countries.

With over 27 million users globally, FCA, ASIC, and CySEC regulate it, making it a preferred exchange.

Crypto.com – Buy cryptocurrency with Prepaid Card and 250+ Cryptocurrencies

Buying cryptocurrency on Crypto.com with a prepaid card is a breeze.

Add your card as a payment option, verify details on the user-friendly interface, then head to the “Trade” section, enter the desired amount, and click “Buy.”

Confirm with two-factor authentication, and your crypto should appear in your wallet.

Trade 250+ cryptocurrencies, including against Tether (USDT) or the native token Cronos (CRO).

Crypto.com offers interest on crypto holdings, with an annual percentage yield (APY) of up to 6%, but a three-month lock-in is required.

Flexible terms with a lower APY are also available. Similar to Binance, Crypto.com has its own NFT marketplace and offers a metal VISA prepaid card

Coinbase – Buy cryptocurrency with a Prepaid Card in the US

Coinbase, the world’s second-largest cryptocurrency exchange, is widely used in the US for buying digital assets with prepaid cards, bank cards, and wire transfers.

It has two platforms: Coinbase for beginners and Coinbase Pro for experienced traders.

The KYC process is required before buying crypto, and transactions can be completed in under 10 minutes.

Fees vary by payment method, with a 2.5% deposit fee for prepaid cards.

Coinbase prioritizes security with features like two-factor authentication and insurance for USD balances.

Almost 98% of customer funds are stored offline for enhanced protection.

CEX – Buy cryptocurrency and Get Crypto Loans

CEX, a regulated crypto exchange operating in over 200 countries, including all 48 US states, was established in 2013 and officially became an exchange in 2016.

With licenses and strict adherence to regulations, CEX offers 100+ cryptocurrencies.

Notable for its top-notch customer service, CEX prioritizes security by storing most assets in cold wallets.

The purchasing process mirrors other exchanges, requiring account creation and payment details.

A reasonable 2.99% deposit fee applies. CEX stands out with features like crypto staking for earning interest and collateralized loans, allowing users to access cash without selling their crypto.

Coinmama – Most accessible platform to buy cryptocurrency

Coinmama, a global crypto exchange operating in 200+ countries since 2013, boasts a user base exceeding 3 million.

The platform, available in multiple languages, stands out by offering a self-custody mobile wallet.

With a 5% transaction fee for prepaid card purchases (limited to Visa and Mastercard), Coinmama supports assets like Tether, USD Coin, Bitcoin, and Ethereum.

This mobile wallet grants users complete control over their digital assets, emphasizing security and direct ownership without reliance on third-party custody services.

Conclusion

The dynamic crypto markets and the rising popularity of prepaid cards have combined to provide investors with an accessible pathway.

Mastering the process of buying cryptocurrencies with a prepaid card is crucial for security, efficiency, and transaction flexibility.

Despite potential challenges and fraud risks, armed with the right knowledge, anyone can safely navigate the cryptocurrency landscape.

FAQs

1. Benefits of Prepaid Cards for Buying Cryptocurrency:

   • Control over spending
   • Enhanced privacy
   • Access for those without traditional banking
   • Often no credit check required

2. Can I use any prepaid card to buy cryptocurrency?

   • Check if your prepaid card is accepted at your chosen exchange
   • Some cards may have restrictions based on issuer or country

3. How secure is it to use a prepaid card for buying cryptocurrency?

   • Generally secure, but use trusted exchanges
   • Exercise discretion with card details
   • Regularly monitor transactions for security

4. Are there any fees associated with buying cryptocurrency with a prepaid card?

   • Fees may apply; check exchange and card issuer’s fee structure

5. Can I buy all types of cryptocurrencies with a prepaid card?

   • Purchase popular cryptocurrencies like Bitcoin and Ethereum
   • Availability varies across exchanges and card types

6. How long does it take to buy cryptocurrency with a prepaid card?

   • Generally instant, but delays possible due to network or exchange processing

7. Do I need a digital wallet to store the cryptocurrency purchased with a prepaid card?

   • Yes, a digital wallet is necessary to store purchased cryptocurrency

8. Is it possible to remain anonymous while buying cryptocurrency with a prepaid card?

   • Offers additional privacy, but complete anonymity challenging due to KYC regulations

9. What are the challenges of buying cryptocurrency with a prepaid card?

   • High transaction fees
   • Lower spending limits
   • Potential card acceptance issues
   • Difficulty retrieving funds if lost or stolen

10. Can I sell my cryptocurrency and load the money back to my prepaid card?

    • Depends on exchange and card issuer policies
    • Verify if the platform allows this feature