Buying Bitcoin/Cryptocurrency Using Alternative Methods

The most popular way to buy Bitcoin and other cryptocurrencies seems to be with debit and credit cards. However, there are, in fact, several alternative methods which you can use instead.

PayPal

As one of the most recognisable eWallets in the world, PayPal is used by millions of people. Nevertheless, this payment option is not accepted at most cryptocurrency exchanges. PayPal normally charges merchants (or exchanges) considerably high fees, which are oftentimes passed on to the client. The advantage of using PayPal is that funds are normally transferred instantly, so you can buy crypto immediately.

You can use Paypal to buy Bitcoin on LocalBitcoins, as long as you find sellers willing to accept this payment method. Coinbase also supports the use of PayPal, however, it is currently only accepted for withdrawals.

Skrill

Skrill is similar to PayPal but charges much lower fees to merchants. As a result, the number of exchanges which accept this payment method is much higher. This eWallet option allows the instant transfer of funds to exchanges and even includes a feature which lets you purchase crypto directly from your wallet. This option is only suitable if you’re planning to speculate on the value and eventually sell, as you are unable to move your crypto to other wallets.

If you are indeed planning to use or transfer your coins, then you can use Skrill to buy Bitcoin on EXMO and Bitpanda, with the latter charging the lowest fees for such transfers. LocalBitcoins is also an option, as long as you find sellers willing to accept Skrill.

Cash or Cheques

Although buying crypto with cash or cheques looks like an outdated concept, it is still popular, especially in areas with limited access to online banks and wallets. These payment methods come with virtually no fees, but also pose the highest potential for fraud. As a result, these payment methods are only recommended when you are buying Bitcoin from friends or family, or if you are using a P2P crypto exchange which rates sellers.

Bank Transfers

You can buy Bitcoin and other cryptocurrencies with a bank transfer in a variety of exchanges. Although such transfers are slow, sometimes taking up to 5 business days, there are several advantages to this payment method.

Many exchanges charge little to no fees for deposits made via bank transfer, and, similarly, banks themselves charge low fees, especially SEPA transfers. If you opt to use this payment method, then exchanges including Coinbase Pro, Coinmama, CEX, and Kraken are all available to you.

Bank transfers are also sometimes accepted on LocalBitcoins, although you should be careful of using this payment method here. These payment methods are not reversible at any point, so once you send the funds it is almost impossible to get them back. At the same time, the platform offers an escrow service which protects both buyers and sellers.