One common misconception people seem to have with buying Bitcoin is whether or not they will receive the funds instantly. Depending on where people live, there are a few possible scenarios that may occur. Although we would all love instant purchases through traditional finance, it is not a valid option in most cases.
Using A Bank Transfer To Buy Bitcoin
This is one of the most common ways people buy bitcoin through exchange platforms. Every exchange in the world will accept bank transfers, but that doesn’t mean they will be instant. One Coinbase user on Reddit found that out the hard way, as his transfer is still pending for nearly a week now.
Buying Bitcoin with a bank transfer hinges on a few different aspects. First of all, not all Bitcoin exchange platforms allow for instant bank transfers, particularly not when it is a user’s first time buying cryptocurrency. Touching upon the Coinbase topic again, they mention users can instantly buy BTC, but that is not always the case. Using a bank transfer or debit card will not speed up this process unless the user has linked and verified a credit card as well.
Other Bitcoin exchanges in the world simply do not use a payment transfer system that completes transfers quickly. Sending an ACH transfer, for example, can take anywhere from one to five business days. Exchanges will lock in the amount of Bitcoin to be sold for the fiat currency value at the time of the rotor. If the Bitcoin price declines in the mean time, that is rather unfortunate for the user.
In Europe and Asia, most bank transfers are settled the same day, assuming they are either domestic or part of a network such as SEPA. Other transfers will clear within a few business days. Do keep in mind both the customer and exchange rely on the inner workings of the banking system. If transfers take to long, it usually has to do with the banks, and not the exchange or user.
Credit Cards Are Faster but Not Always Supported
The obvious solution would be to buy bitcoin with a credit card, but that may be a lot harder than people assume. Very few exchanges accept credit cards, due to high fraud and chargeback rates. In fact, 247exchange, Circle, and soon Coinbase are some of the only platforms supporting credit cards.
Services that make use of credit cards, such as Skrill, NETELLER, or PayPal, are not widely accepted either when it comes to buying Bitcoin. A cryptocurrency transfer cannot be refunded or charged back in case of fraudulent payments. Credit cards, on the other hand, can, and it would be easy for malicious individuals to request a chargeback and keep the bitcoins as well.
Bitcoin ATM and Peer-to-peer Transfers With Cash
Although these are technically two different options, they sort of fall into the same category. Rather than using centralized platforms, a Bitcoin ATM or peer-to-peer purchase can save users a lot of time. This also gives a bit more freedom as to which payment method is used, although most transactions will be completed with cash.
Finding a Bitcoin ATM can be quite a challenge, though. Despite there being several hundreds of these machines in operation all over the world, they do not span the globe just yet. Moreover, a Bitcoin ATM or a peer-to-peer transaction usually results in paying a premium price for Bitcoin. But that is the price to pay for a quick and convenient solution.
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