Since the very beginning of Bitcoin, the question of how to buy Bitcoin has been central. This strange new form of cash invented by the mysterious Satoshi Nakamoto existed outside the normal financial channels. Many methods were tried, wire transfers, direct face to face sales, exchanges, etc.
Of all the methods created, gift cards seemed like the least plausible at the beginning. Yet, online there is a thriving market of exchanges where people convert gift cards to Bitcoin and the other way around.
The reason is that global brands like Amazon, Steam, Walmart, and others have created gift card markets that reach beyond individual countries. These are great to buy cryptocurrencies like Bitcoin in countries where these types of assets are restricted.
So, in this article, we'll see the best ways to buy Bitcoin with gift cards.
How to buy Bitcoin with gift cards?
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So, as discussed before, gift cards have emerged as one of the more versatile ways to buy Bitcoin in countries where cryptocurrencies are restricted. Any of these cards from major global business work. Some examples are Netflix, iTunes, Amazons, Steam, etc.
The method picks up speed as Bitcoin's price keeps climbing, and predictions for its rice multiply. Many are the people who are entering the BTC market for the first time. And in this environment, gift cards are one of the easiest ways to buy some Bitcoin.
Generally, this is done by accessing a peer-to-peer exchange, which allows for gift cards. The process of how to buy Bitcoin with a gift card is no different than any other p2p operation. The steps on how to buy Bitcoin with a gift card are:
Register in a p2p exchange
As explained before, only the p2p model is open to gift cards. Both peers have to agree on the gift card's value since these are not standardized products.
Add funds to your account
This can mean charging the digital gift card on the platform to buy Bitcoin or funding the web wallet with some Bitcoin depending on if you are selling or buying.
Choose an offer
If you are selling, making sure the gift card amount is less than the asking price. Remember, you are trying to buy a gift card at a discount. On the other side, make sure the gift card's total value's conversion rate is equal to the offered amount of Bitcoin.
Lock your funds in escrow
Once an offer has been selected, the assets will be placed in an escrow account until both parties confirm they agree. Review all the information and accept or reject the offer.
Review
Once the operation has been completed, it is essential to review the other party. P2p marketplaces are highly dependent on reputation. So, it is a good practice to give feedback on good and bad experiences.
What are the most popular gift cards to buy Bitcoin?
Source: Smart bitcoin Investments
In the world, there are thousands of brands that offer gift cards. It is possible to use any of them to buy Bitcoin, but smaller retailers will be less popular. The more global the brand, the easier it is to use it in a p2p exchange. Right now, the most used gift cards are:
Amazon
As the largest online retailer globally, Amazon's gift cards work in almost any country on the planet. This makes them very easy to trade for Bitcoin. And they are the type of card with the highest volume at the moment.
Google Play
Next, we have gift cards from Google. A large number of Android phones have made the Google Play Store the biggest in the market. As such, its gift cards are used by millions, making them very easy to trade.
Steam
As the most significant digital gaming store, Steam is a global brand. Anyone with an account can use Their gift cards on their platform. As gamers are online people, there is a strong correlation between crypto users and gamers. This is why many use crypto to purchase gift cards, to get games at discounted prices.
League of Legends
One of the most prominent Esports in the League of Legends has a massive audience. This has made its gift cards a very liquid form of asset, especially in Asia, where the game has the biggest audience.
Walmart
Finally, we have the biggest retailer on the planet Walmart. As a global brand, there are Walmart stores on every continent. The one drawback is that gift cards are sold in the local currency of the country.
This can mean some people lose purchasing power when exchanging for US dollars. Even so, many people trade in these cards.
There are other options, such as iTunes, Playstation Store, Xbox, etc. But trade in these cards is smaller because these brands tend to concentrate in wealthy countries, not so much in developing nations, who engage more in the gift card to Bitcoin trade.
As said before, this type of exchange is only possible in a peer-to-peer marketplace. This list will be composed exclusively of these platforms and explain how to buy Bitcoin using them. Some are exclusive to the crypto market. Others allow for different kinds of transactions apart from buying cryptocurrencies. There is no way to rank them in a hierarchical order, so evaluate them individually. The options are:
- Remitano
- Paxful
- Local Bitcoins
- Airtm
Remitano
Remitano is a 8-year old crypto exchange platform that offer multiple gift cards as payment methods in P2P. The fee is quite competitive 1% for advertiser, compared to Paxful's 5%.
Pros:
- Friendly and helpful Customer Support Team
- Low fee
- Trade gift cards with 7 coins
Cons:
- UI still needs improvement
Paxful
Source: Paxful
Paxful is a bi p2p marketplace for cryptos. Besides gift cards, they have other payment methods that make it very versatile. Sadly, this popularity has come at a cost. The platform has attracted many scammers, and many offers on the site are false. It is imperative to be very careful when using the site.
Pros:
- Many different payment methods
- High trade volume
- Easy to use UI
Cons:
- A high number of scams
- Low-security screening of users
Local Bitcoins
Source: Local Bitcoins
The oldest p2p crypto exchange, it has full support for gift cards. It supports any payment method there is on the planet in its mission to expand crypto adoption.
Of course, as a relatively small exchange, it has few employees, and customer support can be prolonged when problems happen. It also has a high number of scams.
Pros:
- A high volume of trades
- Many payment methods
- Available anywhere on the planet
Cons:
- Lack of screening for users
- Poor customer support
- Low variety of cryptocurrencies to buy
Airtm
Source: Airtm
A relatively new exchange, Airtm, is not only for crypto as it allows for FIAT currency exchange, gift card trade, and virtual credit cards. There are many options on the platform. As crypto is not its primary business, it has a lack of dedicated support for it.
Additionally, it has many tutorials online, including ones on how to buy Bitcoin on their platform. The marketplace is also very active in LATAM, but not in any other region of the world. So, it is not very global.
Pros:
- Many options besides crypto
- Full support for gift cards
Cons:
- Lack of global reach
- Low support for crypto markets
Conclusion
Now you know how to buy Bitcoin with gift cards. These have transcended their original purpose with the introduction of cryptocurrencies. Now, they are one of the most popular and censorship-resistant ways to buy Bitcoin on the planet.
As such, they are gaining a vast market share in developing nations. The method benefits the seller who gets the BTC and the buyer who gets to pick up gift cards at a discount.
Of course, this is not the only method to buy Bitcoin, and there are other platforms to create a Bitcoin account.
Credit cards are also one of the most convenient ways to do so. Regardless of which method one chooses, it has never been easier to buy cryptocurrencies for those looking to enter the market.
Disclaimer: The content in this article is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice. Remitano bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links.
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