Up until recently, most credit card companies wouldn’t want to touch Bitcoin purchase with a stick. Yes, there are still limitations to buying Bitcoin with a Discover card, but there’s a loophole we’ll help you to exploit.
Check through most Bitcoin exchanges, they all have something in common, they rarely accept credit cards. It can be quite frustrating that after taking time out to sign up on an exchange, filing out KYCs, you discover that you cannot make a purchase using your Discover card.
At CoinList, we’ll be saving you the troubles of trial and error by showing you the best route to making a Bitcoin purchase using Discover Card.
Buying Bitcoin with a credit card is very risky because the fees charged both by the exchange and the card issuer might cause you to owe more money.
Discover Card is one of the credit cards that does not support Bitcoin transactions. Owned by Discover Financial, the card has been the subject of discussion in recent times. The holders are looking for ways to invest in Bitcoin to no avail.
The Current Stance
Discover Financial, the parent company for Discover Card and the third-largest credit card company in the United States has continually squeezed on crypto.
As much as the company has denied its millions of cardholders access to cryptocurrency purchases, there are still other options.
In this CoinList article, you will learn how to purchase Bitcoin using a Discover Card.
Step #1: Withdraw Your Funds and Deposit in an Exchange
The restrictions on credit card payments for Bitcoin purchases are also disabled on some cryptocurrency exchanges. The option you will likely see is buying crypto via debit cards.
In the case of Discover Card, the restrictions are much. The company that issued the card (Discover Financial) doesn’t want the holders to invest in cryptocurrencies just yet.
Since you are bullish on Bitcoin and want to invest using your Discover Card, here is the process:
Redeem Your Cash Back Rewards
Your first line of action is to redeem the cashback rewards on your Discover Card. You may want to wait for a couple of days before taking the next step.
Transfer Your Cash Back Rewards to Your Local Bank Account
One of the advantages of using the Discover Card is that you are allowed to withdraw your cashback rewards.
With the rewards now ready, consider transferring them to your local bank account. This might take some time, as well depending on your bank’s network.
Transfer Your Funds to an Exchange
Your cashback rewards have now been converted to cash. It is now ready to be spent. What you will do here is to transfer the funds in your bank to a cryptocurrency exchange.
Ensure that the exchange supports the deposit of fiat money. Coinbase is an example of a cryptocurrency exchange that supports fiat money deposits.
Once the funds are in your wallet on the exchange, navigate to the “Market” section to buy Bitcoin.
You can enter the amount you want to splurge on buying Bitcoin and wait for your order to fill.
Step #2: Use a P2P Platform
Peer-to-Peer finance or P2P for short is the primary financial system created by Bitcoin. The idea is to stall the limitations in traditional financial systems, as can be seen in the restriction of Discover Card users from investing in Bitcoin.
Consider using a P2P platform, because the process is usually fast and secure. Below are the steps to take when spending your Discover Card cashback rewards for Bitcoin on Paxful, a P2P platform:
Paxful is the most popular P2P platform for buying Bitcoin with your Discover Card. It is a Peer-to-Peer (P2P) finance marketplace that “enables you to buy Bitcoin directly from other users like yourself, without involving banks or corporations.”
The process is pretty simple. Below are the steps to take:
Create Your Paxful Account
Sign up for an account on Paxful using your email address or telephone number. You will also be required to enter your full name and create a password.
Once this is done, you will automatically have a new Bitcoin wallet where you can store the BTC you purchase.
Search for Offers
As a P2P cryptocurrency marketplace, Paxful allows the sellers to publish the number of Bitcoins they have, the amount they are looking to sell the coins, and the payment methods they accept.
You can use the filtration tabs to find the best offers. Then, choose a payment method, in this case, the Discover Card.
Specify the number of Bitcoins you want to purchase, as well as the type of currency you want to pay in.
Live Interactions with the Seller
You can then start the trade by opening a live chat with the seller. Follow the instructions given by the seller, including specifying the number of BTCs you want.
You may also be required to give the information of your Discover Card to the seller. Don’t worry about the security, because every transaction is held in escrow until completion.
The seller will also attempt to bill you. Follow the instructions given at this stage to make the payment.
Receive Your Bitcoin
If the transaction is successful, the seller will directly release the Bitcoin you paid for to your Paxful wallet.
Conclusion: You Can Purchase Bitcoins with Your Discover Card
Discover Card might not be available for direct purchase of Bitcoin from a cryptocurrency exchange. However, using peer transactions via Paxful and converting your cashback rewards to cash for an onward deposit on an exchange are the two best options you have now.
Go ahead and try them and let us know how it turned out.