Trading unused gift cards for bitcoin
Bitcoin has evolved a lot throughout its 10 years of existence. With the emergence of peer-to-peer marketplaces, it is now incredibly easy to buy bitcoin. There are hundreds of payment methods available on these peer-to-peer marketplaces and they not only make it easier to buy bitcoin, but some would also even argue that they make the trading process more efficient.
Among those hundreds of payment methods, there is one that stands out: gift cards. What are gift cards? Gift cards are pre-paid stored-value money cards that you can use as an alternative to cash. You can actually buy bitcoins with these and some peer-to-peer platforms even specialize in gift card trades. There are also a lot of options when it comes to gift cards. You can buy bitcoin with Amazon gift cards, iTunes gift cards, Steam gift cards, and many more. So if you’ve got some extra unused gift cards lying around, maybe you should consider using them to buy bitcoin.
How buying bitcoins with gift cards works
Obviously, how buying and selling with gift cards works will depend on the peer-to-peer platform you use. As an example, let’s use Paxful’s trading process. Paxful is one of the world’s leading peer-to-peer bitcoin marketplaces. Majority of the trades done on Paxful are done with gift cards so one could say that gift cards are their specialty.
Step 1 – Choosing an offer
Let’s say that your Paxful account has been made and is ready to go. The first step would be to search through the list of available offers and choose one that suits your preferences. When it comes to choosing an offer, there are 4 things that you should consider:
- How much bitcoin you’ll be getting on the dollar – This is how much bitcoin you’ll be getting with the vendor’s profit percentage already deducted. Make sure that you choose an offer that will get you the most bitcoins possible for the dollars you’re putting in.
- Reliability of the vendor – On Paxful, there is a reputation system that can help you determine whether or not a vendor can be trusted. In addition to that, you can also view the transaction history of each user. By looking at previous trades, you can gauge if the vendor is safe to trade with or not.
- Offer terms and instructions – When it comes to peer-to-peer bitcoin trading, vendors will always have payment instructions for the buyers. As a buyer, you should make sure that you can follow all these terms and instructions to the dot if you want to trade with a vendor. If you can’t follow them but still continue with the trade, it can be taken against you.
- Availability of the vendor – Even if all the other things are checked off your list, the unavailability of a vendor can hinder trade progress completely. The payment window can expire and then the trade will conclude without anyone receiving what they want. Make sure that your potential vendor is available before starting a trade.
Once you take these into consideration, you should be able to find your ideal offer.
Step 2 – Completing the trade
After choosing an offer, you’ll be directed to an individual trade page. This is where you’ll be submitting your payment. Usually, if you’re buying bitcoins with gift cards, the vendor will usually ask for these as payment: (1) the gift card code and (2) a picture of the gift card (with the code shown) as well as the receipt of when you bought it with cash (this is to prevent any sort of chargeback). Once you’ve submitted all the requirements that the vendor needs, he/she will need to verify it. This is usually done by checking if the code works.
Step 3 – Releasing of the bitcoins from escrow
When the vendor is verifying your payment, be sure to be patient as this may take some time. Once your payment has been verified, the vendor will then release the bitcoins from escrow – a security service that protects both buyers and sellers. After the trade is complete, be sure to leave appropriate feedback for your trade partner as other users will look at this as an indicator for safety.
Gift cards, the easy way to get your hands on some bitcoins
As you can see, trading your unused gift cards for bitcoins is extremely easy and once you learn how to minimize the risks, it becomes extremely secure. All it takes is 3 simple steps and you’ll have your bitcoins. The best thing is that it doesn’t really matter what kind of gift card you have. With so many options available, you should be able to see offers for all kinds of gift cards.