Payment Methods When Buying Bitcoin

There are many different payment methods to use when transferring money to a trading place to buy Bitcoin. Among the trading places we list, the vast majority of players offer payment methods that we Swedes are used to when it comes to online shopping. 

Bank transfer, Swish, Card payment, and E-wallets are all common and frequently available payment methods for purchasing Bitcoin.

Bank transfer

A common payment method for transferring funds to a trading platform is a direct bank transfer.

Most trading places cooperate with Trustly, which is a well-known payment actor in online trading in Sweden and the Nordics.

Trust is a safe way to send and receive money because the transaction is verified with BankID. After which it is possible to buy Bitcoin directly.

Swish

Swish can today be used by brokers to buy Bitcoin. The Swish in Sweden today has over 7 million users, which makes it a popular option when buying Bitcoins. With Swedish brokers that let you buy Bitcoin, there are limits on how much you can buy, often the limit is 25,000 kroner per week by using Swish as a payment method.

Visa, MasterCard, and other cards

This is a very good Available Payment Methods When Buying Bitcoin

Paying by credit card to buy Bitcoin is safe with the trading venues and brokers we list.

When you transfer money to trading locations using card payment. The transfer takes place immediately and the card information is not saved. In rare cases, it takes a day or so for the money to arrive.

Nowadays, you also need to approve your card payment with BankID, which more or less eliminates the risk of being exposed to card fraud.

E-wallets

Skrill, Neteller, and Paypal are all well-established and secure e-wallets often available as payment methods on merchant sites.

Using an e-wallet for payment of Bitcoins provides additional security where one does not have to provide payment details directly to the trading place. The e-wallet can be seen as a secure intermediary for your payments.

Other Ways To Buy Bitcoin

When you want to buy Bitcoin, you should decide whether you want to own the currency or instead invest by trading certificates or contracts that follow the price trend. Both ways have different pros and cons.

One can buy Bitcoin as a security in the form of a certificate called XBT or in the form of a contract called CFD. When you choose to invest in Bitcoin in this way, you do not own the currency itself and therefore do not need a digital wallet.

Pros and cons of the different methods

When you have invested in Bitcoin certificates, you cannot send, receive and pay with the currency because you do not own any actual Bitcoin.

When you own real Bitcoin, you have to pay a 30 percent capital tax on the profit you make when you sell the currency, something you can avoid by buying Bitcoin as a certificate.

Annual fees and brokerage are other disadvantages of buying Bitcoins in the form of securities rather than the actual currency.

In Sweden, it is common to use popular online brokers to invest in Bitcoin and other popular cryptocurrencies. Then in the form of an XBT certificate, which we tell you more about below.

CFD certificate (Contracts for Difference)

It is possible to buy Bitcoin as a CFD contract with what is often called a trading broker. With a CFD contract, you speculate on the value based on the price in the underlying market. CFD contracts are leveraged products, which means that with a small deposit you can be exposed to a large position. This makes CFD contracts a high-risk product.

The leverage principle means that you can make a lot of money by speculating on whether the price will fall or rise. This principle then also works in the opposite direction, which can mean large losses. 71% of clients lose money on CFD trading with provider IG Trading according to themselves. This is worth taking into account before starting to buy Bitcoin as a CFD contract.