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Can You Buy Bitcoin In Nigeria With A Debit Card?
- One of the various methods to buy bitcoin and other cryptos with fiat money is through debit cards.
- Debit cards come with special hazards in addition to convenience and quickness.
- You’ll comprehend the benefits, drawbacks, and costs of utilizing a debit card to buy bitcoin after reading this article.
To buy Bitcoin in Nigeria, some users use wallets or bank transfers. Although these methods have the lowest costs, they can be slow for someone who values comfort and speed. Debit cards are the greatest choice in this scenario. When buying Bitcoin in Nigeria, you can use a VISA or Mastercard Debit card and pay regular costs. Various cryptocurrency exchanges also offer the option to buy and sell Bitcoin through a bank transfer, a deposit in fiat currency, or an e-wallet.
Check to see if your card issuer and payment network permit the desired transaction type if you’re interested in buying Bitcoin using a Debit card. There are several reasons why Debit card companies restrict cryptocurrency purchases. To safeguard cardholders from fraud, losses, market volatility, and the current ban, banks in Nigeria may restrict such transactions. Though, you can get virtual debit cards from eligible FinTech platforms.
Note: Before starting any crypto transaction with your Debit card provider, we advise double-checking to make sure your Debit card is appropriate.
What Kinds of Debit Card Fees Are There?
There are numerous types and sizes of Debit card fees. According to your circumstances, we’ve listed the most frequent costs you might encounter below.
Fees for transactions
Exchanges for cryptocurrencies levy a small fee for transactions made with debit cards. This is typically more expensive than other widely used payment options, such as bank transfers. Costs at most crypto trading platforms are among the lowest, ranging up to 2%. Any additional charges will be made by the bank and/or Debit card company.
Payday loan costs
You borrow money from your Debit card company directly when you receive a cash advance. Fees range from 3–5% of the total. For instance, there would be $6–10 in costs for a $200 cash advance.
Cash advances are sometimes used to facilitate Debit card cryptocurrency transactions. You will have to pay $5 or 10% of the transaction value in this case, whichever is higher. Therefore, if you spend $1,000 on cryptocurrencies, your Debit card company may charge you a fee of $100.
Note: If you pay your monthly bill in full and on time with Debit cards, you have a 20-day grace period to pay off purchases. However, interest is charged on cash advances from the first day.
If these fees don’t suit your preference, you should use other options. Other payment options won’t ever be charged a cash advance fee because they only take Debit cards from VISA and Mastercard.
Foreign exchange commission
Customers who use a Debit card to buy Bitcoin on a platform operating outside the US like Nigeria are probably charged a foreign transaction fee. Users that use domestically issued Debit cards to buy Bitcoin with other fiat-issued currencies are likewise covered by this scenario. The average foreign transaction fee is 3% of the transaction value. For instance, a $1,000 BTC purchase would include a $30 fee.
Why Should I Use a Debit Card to Buy Bitcoin In Nigeria?
Here are all the advantages of using a Debit card to buy Bitcoin And Other Cryptocurrencies, which frequently exceed the drawbacks now that you are aware of the fees involved.
1. You can use a Debit card to make investments without having cash on hand
Every crypto user is aware of how quickly the market changes. A few days could mean the difference between purchasing a coin at its lowest point or, worse yet, at its highest point. Maybe your paycheck will come next week. If you have a Debit card and enough cash on hand, you won’t need to worry. Simply make your monthly payments at the end of the month to avoid being charged interest by your Debit card company.
2. Quick and immediate
Debit cards’ quickness makes it simple for new users or investors to buy Bitcoin using Naira. Transactions with Debit cards are finished in a matter of seconds.
Bank and wire transfers, on the other hand, often take three to eight days. As a result, until the transaction is finished, the bitcoin cannot be removed from the exchange. A Debit card is a perfect option for investors wishing to buy the drop in a bear market rapidly due to the instantaneous quickness it provides.
3. Easily understandable
For newbies who don’t want to struggle with the complex procedures on more sophisticated crypto exchanges, Debit cards are the perfect payment option. Particularly for those new to cryptocurrency, using a Debit card for payment is comfortable. All you need to do is input your card number, expiration date, and CVV. Additionally, cryptocurrency exchanges and platforms that accept Debit cards are frequently highly logical and user-friendly.
4. Receive benefits from staking
A widespread myth is that “all the transaction fees amassed will wash out incentives gained from Debit card crypto purchases” however, this relies on how you spend your cryptocurrency. Nowadays, a lot of cryptocurrency financial products, like staking, provide alluring yields. For others, these items represent a potent passive income vehicle. For instance, it’s simple to buy Bitcoin with your Debit card and then stake it to earn up to 20% APY.
What Are the Dangers of Using a Debit Card to Buy Bitcoin?
You should be aware of the potential risks involved with the process now that you are aware of the advantages of using a Debit card for crypto.
1. Your Debit card data may be in danger
The crypto world of today is overrun with exchanges promoting their distinctive advantages. These exchanges vary in their legitimacy as companies. But a lot of these exchanges are swindles that prey on newbies or individuals hoping to earn quickly. Although Debit cards feature robust fraud protection, every user should be able to spot scams and stay away from them. We advise consumers to always conduct adequate research before making any cryptocurrency purchases.
2. Your credit rating might be affected
The quantity of credit you use is referred to as credit usage. It has a big impact on your credit score as well. Your credit score increases as you use more credit. Your credit score can suffer if you take on too much debt. In the worst-case scenario, this damage increases as you fall behind on your Debit card payments each month. We advise people to only buy what they can afford to lose in order to prevent this scenario. Start modest, especially for newcomers, and think about making a recurring buy to implement a dollar-cost averaging method.
You should be aware that banks and Debit card companies have daily limits on the amount of money you can spend. Users that buy cryptocurrency in bulk should make sure they stay within their daily allotment. The Debit card transaction will be rejected if not.
How Can I Use My Debit Card to Buy Bitcoin In Nigeria?
Have you thoroughly investigated the Debit card issuer? If yes, follow these steps to begin using a Debit card to buy Bitcoin. For this guide, we’ll be using Binance, though these instructions work well for other crypto trading platforms.
Step 1: The first step is to sign into your Binance account and select [Buy Crypto] followed by [Credit/Debit Card].
Step 2: Select your preferred fiat currency and input the desired fiat amount. The system will immediately show you how much cryptocurrency you can purchase and how much you will be charged.
Step 3: Enter your Debit card information after clicking [Add new card]. Please be aware that only your own Debit cards may be used for payment.
Step 4: Type your billing address into the box and select [Add Card].
Step 5: Verify your payment information a second time and approve the order.
Note: Binance will recalculate the price and the quantity of cryptocurrency you receive after one minute. For the most recent market price, select [Refresh].
Step 6: You will be taken to the OTP Transaction Page for your bank. Then you input your one-time OTP and verify the transaction. Afterward, your purchase is complete.
Bottomline: Can You Buy Bitcoin With Debit Card In Nigeria?
One of several ways to buy Bitcoin in Nigeria is using a Debit card. Debit cards are quick, easy, and don’t need cash on hand, despite having higher transaction costs. Users that want a more economical strategy may think about making a bank transfer. Bank transfers, on the other hand, can take days to process, unlike Debit cards. It’s essential to educate yourself on the benefits and drawbacks of each payment option before choosing one that works for you.