Buy Bitcoin with a credit card

Bitcoin is a digital asset that can be bought either with cash or a bank card. Alternatively, you can buy Bitcoin using an e-wallet of a payment system such as PayPal or Skrill. The easiest way to buy BTCs for cash is to use a BTC ATM (with prepaid debit or credit). However, there are at least three reasons why you should not use BTC ATMs. First, the ATM network is very underdeveloped, so the probability of finding the nearest kiosk - especially if you live in a small town - is quite low. Secondly, ATMs charge quite high transaction fees. Thirdly, they impose quite strict limits on the maximum amount per transaction.

The development team of the world's first cryptocurrency set out to provide a way of transferring value (sending money) over the global network. At the time Bitcoin was introduced to the world, there were already many payment services and gateways working with fiat money (national currencies). However, based on distributed ledger technology, BTC is a new kind of money that uses a whole new concept. The first feature of BTC that sets it apart from traditional payment systems is the use of advanced data encryption technology that makes it virtually impossible to compromise the network in which it circulates. In addition, blockchain is a decentralized network with no central regulator or intermediaries, making financial transactions fast and cheap.

One of the reasons why many people want to buy Bitcoin (e.g., from a bank card) is its high security. All data stored in the decentralized database (blockchain) is encrypted using the SHA-256 algorithm, which is virtually unhackable. To find the key to decrypt data encrypted using this algorithm, a huge number of variants must be tried, far more than there are atoms in the Universe. Although there have been a few cases of the theft of digital assets from exchangers, that was possible only because users stored their savings in exchange wallets, which are far less secure than those connected to the decentralized network.

Another potential vulnerability of BTC (with prepaid debit) is the so-called 51 attack when one person or organization gains control over a large part of the decentralized network. However, as the Bitcoin blockchain has grown to enormous proportions in recent years, this vulnerability is becoming less and less realistic to exploit in practice.

The only problem a newcomer may face stems from the decentralized nature of digital currencies. So, since there is no single supervisory authority, there is no one you can turn to for help in case you mistakenly send digital coins. Moreover, if you lose your private key, you cannot regain access to your crypto wallet and all your crypto savings will be lost forever. Therefore, before you buy Bitcoin (with prepaid debit) with a bank card, it's a good idea to think about security measures.

As of today, we still cannot say for sure who exactly Satoshi Nakamoto, the purported creator of the first digital assets, is. However, we do know that a person or organization bought the domain and posted a digital document called Bitcoin: A Peer-to-Peer Electronic Cash System. When you read this document, you will find that it outlines a digital payment system that is free from the control of government agencies and any third-party entities. In essence, the document described Bitcoin as it was when it first appeared to the world in 2009. According to Satoshi Nakamoto (the purported creator of the cryptocurrency), the main problem with traditional banking systems is that banking organizations have repeatedly violated user trust. The Bitcoin platform was released on 9 December 2009. Until 2010, Nakamoto was involved in refining the platform but then decided to step away from the project. Today, many experts from various companies and organizations around the world are working to improve the software used by Bitcoin.

There are many methods to buy Bitcoin with a card (as well as a prepaid card), including buying cryptocurrency through exchangers, crypto platforms, online brokerage services, direct transfer from one crypto wallet to another through the Bitcoin peer-to-peer network and by using an ATM. We recommend opting for centralized crypto platforms that perform KYC (Know Your Customer) identity verification to their users. Although you will have to make some effort to create digital copies of your identity documents, centralized platforms provide a high degree of security for your personal and payment information. In addition, centralized crypto platforms charge fairly low fees. For example, if you decide to buy Bitcoin from a card (credit) through J2TX (with prepaid debit), you will pay a commission of less than 1% of the amount in the transaction.

Traditional banking systems use a centralized database to enter transaction information with timestamping. Under the strict control of government agencies, such systems are highly regulated and supervised. While the Bitcoin network shares many similarities with traditional bank registries, there are some key differences that anyone wishing to buy cryptocurrency, for example, using a bank card (credit or debit), should be aware of. First, the Bitcoin network is open to anyone with a device connected to the World Wide Web. Second, the BTC network is not controlled by anyone, as there is no central hub that performs management functions. Thirdly, all the entries to the Bitcoin registry are irreversible, that is, they cannot be edited or deleted. Finally, the BTC units circulating in the network are not present in the physical world. However, they have real value due to the trust of members of the large cryptocurrency community. In addition, BTC has real value due to the ever-increasing demand for crypto and shrinking supply.

In peer-to-peer networks, mining is a mechanism through which consensus is reached between all nodes. Blockchain is a structure resembling a chain of blocks, where each block stores a certain number of transactions. To make this chain post-acquisitive, each new block contains a link to the previous blocks. Before a new block is added to the chain, special nodes in the network perform complex mathematical calculations to ensure that all transaction data is secure. The first mining node that succeeds in solving the cryptographic puzzle receives a fixed reward in the form of a few BTC generated by the network. In this way, mining is used not only to provide consensus but also to issue units of money on the network.

In simple terms, it is a bundle of private and public keys giving you access to your crypto savings. In its modern form, a crypto wallet is a software that allows you to manage your tokens. Using a good Bitcoin wallet, you will be able to buy, send, sell and exchange digital assets. Keep in mind that there are three types of crypto wallets - cold, hot and hardware. A hot wallet is an online service that always communicates with the network, which makes it more vulnerable. A cold wallet is a software solution that only connects to the Bitcoin network when you want to make a transaction. Finally, a hardware wallet is a device with internal memory that stores your authentication data (keys). Typically, hardware wallets are used to store large amounts of cryptocurrency because they are the safest and most secure.

The price of Bitcoin cryptocurrency is determined by the same factors as the price of fiat currencies. This means that the value of a token depends on supply and demand. Keep in mind that there are many additional factors that determine the cryptocurrency's value, including economic, political and others. For example, having reached a price of around $70,000 per coin, Bitcoin collapsed in 2022 and continues to disappoint crypto investors with a rather low value relative to its peak price. And there are two reasons why digital gold is going through its bad times right now. The first is the cryptocurrency ban imposed by the Chinese government in 2022. The second is the negative economic environment in the world due to the Russian Federation's invasion of Ukraine. On the other hand, the falling price of BTC makes it more affordable for those who want to buy cryptocurrency (e.g., with a credit bank card).

There are several important benefits of cryptocurrency that make it so popular and in demand:

• Protection against fraudulent transactions. Bitcoin uses an advanced SHA256 data encryption algorithm that is virtually impossible to crack.
• Rapid settlement. Payments are usually made within 10 minutes through the crypto network, which is much faster than the speed of transactions in traditional banking systems.
• The ability to transfer units of money directly from user to user through a peer-to-peer network where there are no intermediaries.
• The possibility to make payments from anywhere in the world where there is access to the internet. Importantly, such payments have low fees.

Finally, cryptocurrency uses blockchain, an advanced technology that has found many applications and is rapidly taking over the world today.