Buy Bitcoins Instantly with a Debit Card on Coinbase
Coinbase is a widely-used payment platform for the cryptocurrency, Bitcoin. Despite the popularity of the startup, users have often complained how difficult it was to purchase Bitcoin through the system. Recently, Coinbase announced that users will be able to buy Bitcoin instantly with their debit cards.
Under the old system, a user would have to link his banking information to his Coinbase account, and then wait for two small deposits to hit their bank account, which is similar to the banking verification used by PayPal. After verifying the amount of the two deposits, users could purchase Bitcoin, but still had to wait up to five days for the cryptocurrency to show up in their account. The company eventually added an instant payment option, but that was only available for users who had a credit card on file as a backup payment source.
The new system currently accepts Visa and MasterCard debit cards. When a person makes an instant buy with a debit card, he must pay a 3.75% fee, compared to the 1% fee charged for transactions funded through a bank account. Also, users must go through an identity verification process before they can actively use their debit cards to make transactions.
Perhaps the biggest drawback to the new debit card function is the daily purchase limit of just $250, compared to $10,000 for a bank account. These rates may change after the new system has been out for a while, but the low limits may be a reason for people to continue using their bank accounts.