- 1 The wide array of gift cards available on the market and what they mean for the bitcoin industry.
- 2 The peer-to-peer aspect of buying bitcoins with gift cards (why it’s best to use gift cards on peer-to-peer marketplaces)
- 3 More than just a profit
- 4 Buying bitcoin with gift cards on a P2P marketplace: the trade process
- 5 Choosing a gift card
- 6 Searching through the list of offers
- 7 Starting the trade
- 8 Completing the trade
- 9 The other side of the road
- 10 Gift cards, the pioneer
What a truly wonderful time to live in. Bitcoin has been in our lives for 10 years now and it continues to surprise us every single day. It stands the test of time, which a lot of people didn’t believe it would. It’s amazing to think that now, we now live in a world where it is incredibly easy to buy bitcoin. Bitcoin has evolved to the point that there are hundreds of payment methods available. Can you imagine that? From being traded to pizza to the point of being able to trade bitcoin for almost anything.
In this article, we’re going to focus on one payment method: gift cards.
The wide array of gift cards available on the market and what they mean for the bitcoin industry.
With more and more newly developed technology, streaming services, online shopping websites, and video game networks coming up, the use of gift cards has never been more abundant. Nowadays, you can buy almost ANYTHING with gift cards.
For example, you can buy video games using the PlayStation Network and Xbox gift cards. You can buy music and the latest Apple product with iTunes gift cards. You can buy groceries, gasoline, and more with Walmart gift cards. You can online shop to your heart’s desire with Amazon gift cards. Last but not least, you can buy bitcoins with… well, ANY gift card.
The peer-to-peer aspect of buying bitcoins with gift cards (why it’s best to use gift cards on peer-to-peer marketplaces)
Lately, it seems as if the popularity of peer-to-peer marketplaces has been rising. One could even say that there is a revolution brewing. The popularity is increasing and it’s not hard to see why.
Compared to a traditional Bitcoin exchange, peer-to-peer marketplaces have lower fees. They have lower fees because buyers and sellers can directly connect by accepting offers and are then tasked to complete the trade on their own. On traditional bitcoin exchanges, a middleman is used to complete the trade for them. This means higher fees.
Peer-to-peer marketplaces are not affected by regulatory restrictions. One example that comes to mind is when all withdrawals were frozen for a month in China. This happened because The People’s Bank of China intervened with the trading process. The interference from The People’s Bank of China affected two of the largest bitcoin exchanges (which were traditional bitcoin exchanges). Imagine being a user on one of those exchanges. As a user and a trader, that is NOT something you’d want to happen to you.
Peer-to-peer marketplaces have security measures like escrow services to keep buyers and sellers safe. An escrow service is essentially a third party that would hold all the coins of the trade until all proper requirements are submitted. The coins will then only be released once the trade is completed and both parties are happy.
Unlike traditional bitcoin exchanges, peer-to-peer marketplaces add a personalized touch to the trading system, allowing for faster and more efficient trades.
Essentially, peer-to-peer marketplaces have revolutionized the way people buy bitcoins. On some platforms, gift cards are the leading payment method and there and hundreds of thousands of people trading gift cards every day.
More than just a profit
Peer-to-peer marketplaces have also shown that it’s not only here to help the mere individual earn a profit, but also to give back to the community. One example of this is the #BuiltWithBitcoin initiative by Zamzam water and Paxful. This campaign has promised to build 100 schools in Africa (with the second school already built) as well as provided scholarships for female Afghan refugees.
Campaigns like this are showing use that bitcoin isn’t just about making ourselves rich, but it also presents a faster way we can others across the globe. And all these are possible with bitcoin and the blockchain technology.
Buying bitcoin with gift cards on a P2P marketplace: the trade process
Although the specific trade process will depend on the specific peer-to-peer platform you’re using, there is usually a basic skeleton that this process follows:
Choosing a gift card
If you already have a gift card, then you can skip to the next step. If you don’t have a gift card yet, you may be wondering “how am I supposed to choose among all these gift cards?”
The first thing you can do is choose a popular gift card on your platform of choice. Some of the more popular options include iTunes gift cards, Amazon gift cards, and Walmart gift cards. The point is, by choosing a popular gift card, you can expand the list of offers you’re going to see. If the gift card is more popular, you have a higher chance of finding a good offer that suits your preferences.
Searching through the list of offers
Now that you have chosen a gift card, you’ll now need to familiarize yourself with what makes a good offer. Obviously, what makes a good offer differs per platform, but I’ll give you a few general tips to help you sort out the good offers from the rip-offs.
First, you’ll want to see how much bitcoin you’ll be getting on the dollar. This has to be the first thing you look for because it decides how much bitcoin you’ll be receiving. On peer-to-peer platforms, sellers can usually set their own price. This means that they also set their own profit percentage (how much money they’ll be making off the trade). Look for an offer where you’ll be getting a decent amount of bitcoin per dollar. (Pro tip: if the offer looks like it’s too good to be true, that means it usually is.)
Once you’ve found an offer where you’ll be getting a decent amount of bitcoin, you’ll need to see if you can comply with the seller’s requirements. To prevent wasting any time, be sure to go through the seller’s requirements thoroughly as there may be requirements that you may not agree with. The seller has full control over what he/she requires from the buyer. If you want your bitcoins, you’ll need to follow these requirements. If you find an offer with requirements you can follow, we can move on.
Lastly, you’ll want to see if your potential trade partner looks reliable and active. Each specific peer-to-peer platform will have their own red flags, but usually, inactivity is a major red flag. For example, Paxful, one of the biggest peer-to-peer marketplaces, has a seller reputation system and several other key factors to look at before trading with anyone. Be sure to do your research about the red flags of the peer-to-peer platform you want to use.
Starting the trade
Once you’ve checked off “good deal” and “reliable trade partner” off the list, you can then move on to actually starting the trade. When the trade starts, you’ll have to submit all the requirements to the vendor as per his/her instructions. When it comes to gift cards, the requirements usually include a receipt of the gift card bought with CASH (this is to prevent sellers from falling victim to chargeback scams).
Some peer-to-peer platforms will have a live trade chat feature where you can send instant messages to your trade partner. This will allow you to clarify any confusions regarding your payment. It will also help the seller verify your payment faster (this is why your trade partner has to be active).
Completing the trade
After you’ve submitted your payment, you’ll then have to wait for the seller to verify your payment. Once the seller has verified your payment, he/she should then release the bitcoin(s) from escrow and the trade will be complete. Congratulations!
The other side of the road
Trading your bitcoins for gift cards also works just as well. This means that if you have some bitcoin laying around, you have a lot of options to choose from.
As said before, you can buy a LOT of things with gift cards (video games, Apple products, groceries, gasoline, etc.). By selling your bitcoins for gift cards, you’re technically buying all these things with your hard-earned bitcoins. The best part is, these gift cards usually come at a discounted price compared to buying them at the nearest convenience store. This will allow you to find great deals on the offers list!
Gift cards, the pioneer
The advantages and disadvantages of bitcoin have been long debated by the community. With gift cards, we can add another point to the advantage list. Gift cards have truly changed the way we buy bitcoin. Because of gift cards, we now have a ton of payment methods to use for buying bitcoin. This allows even more people to get into bitcoin trading thus enabling a growing bitcoin community. This just brings us one step closer to mass adoption.
Not only did gift cards change the way we buy bitcoin, but it has also changed WHAT we can buy with bitcoin. With the wide array of gift cards available, the scope of what we can buy with our bitcoins has grown. The gift cards that can be bought are also discounted so people save even more by using bitcoin.
Gift cards have definitely revolutionized the bitcoin game by allowing people to make an easier profit and allowing us to make the world a better place. If you haven’t tried it out, give it a shot! I wish you nothing but the best on your trading adventure!