Purchase Cryptocurrency with Amazon Gift Cards: P2P Marketplaces Offer Solution (But Watch for Premiums)

Using Amazon Gift Cards to Purchase Cryptocurrency

Is it possible to make this transaction?

Yes, purchasing cryptocurrency with an Amazon gift card is feasible, but your options are constrained. The sole viable method involves utilizing a peer-to-peer (P2P) cryptocurrency marketplace.

P2P Crypto Marketplace Dynamics

How do these marketplaces operate differently?

P2P marketplaces differ from cryptocurrency exchanges in their functionality. On P2P platforms, direct purchases of cryptocurrency are facilitated between buyers and sellers, with sellers having the flexibility to accept a wide range of payment methods, including physical cash, digital wallets, and gift cards.

Drawbacks of P2P Marketplaces

What are the potential pitfalls?

A notable drawback of P2P marketplaces is the reduced exchange rates for cryptocurrency purchases, particularly when employing unconventional payment options such as gift cards. Conversely, cryptocurrency exchanges employ order books, enabling more efficient exchange rates but lacking the payment flexibility offered by P2P platforms.

Recommended P2P Marketplaces for Amazon Gift Card Crypto Purchases

Where should you look?

Paxful

What makes Paxful standout?

Paxful is a popular P2P marketplace where cryptocurrency sellers accept a vast array of payment methods, including Amazon gift cards. Users can negotiate deals directly with sellers, agreeing on price and payment arrangements. Paxful's extensive platform easily connects buyers with sellers based on the desired cryptocurrency and payment method. Sellers accept over 350 payment options on Paxful.

What rate can you expect?

The best premium found for purchasing Bitcoin with an Amazon gift card on Paxful was 12%. Thus, a $100 Amazon gift card would yield approximately $88 worth of BTC. Ethereum, USDT, and USDC stablecoins are also purchasable using Amazon gift cards on Paxful, but premiums tend to be higher than for Bitcoin.

NoOnes

What's unique about NoOnes?

NoOnes is a P2P platform specializing in Bitcoin, Tether, and USD Coin trading. Sellers can accommodate various payment options, including Amazon gift cards. Filters are provided to refine searches based on specific criteria, but only offers relevant to your country of residence should be considered.

What rates can you anticipate?

At the time of writing, only one Bitcoin seller on NoOnes was found to accept Amazon gift cards, with a very high premium. Assuming the most favorable rate, a $100 Amazon gift card would net $63 worth of Bitcoin.

LocalCoinSwap

What sets LocalCoinSwap apart?

LocalCoinSwap emphasizes user privacy in its P2P marketplace. It facilitates trading of multiple cryptocurrencies, including Bitcoin, Ethereum, BNB Chain, Celo, and TRON, as well as tokens on their respective blockchain platforms. LocalCoinSwap's non-custodial design ensures user control over their cryptocurrency assets.

What premiums should you expect?

When purchasing Bitcoin on LocalCoinSwap using an Amazon gift card, expect a premium of 15% or more. Patience may yield better deals, as sellers offering lower premiums may eventually list on the platform.

CoinCola

What's noteworthy about CoinCola?

CoinCola is a P2P marketplace tailored for cryptocurrency and gift card exchanges. Users can purchase cryptocurrencies using gift cards, but they must find sellers willing to accept them. Sellers can be filtered by accepted gift cards and offered cryptocurrencies, and users can also view minimum and maximum transaction amounts. Amazon gift cards are acceptable payment options for Bitcoin, Ethereum, and USDT purchases on CoinCola.

What premiums can you expect?

At the time of writing, CoinCola sellers were charging exceptionally high premiums on Bitcoin and Ethereum sales for Amazon gift cards. The most competitive Bitcoin rate found was 0.560, resulting in only $56 worth of Bitcoin for a $100 Amazon gift card.

Cautionary Points

What should you keep in mind?

Sellers on P2P crypto marketplaces generally offer less favorable exchange rates. Amazon gift cards typically incur premiums of 10% or more, resulting in reduced value for your cryptocurrency purchases. Using gift cards on P2P marketplaces is considered one of the least efficient methods of acquiring cryptocurrency. Consider alternative methods to avoid excessive premiums.

The most efficient approach is to deposit funds from your bank account to an exchange like Kraken or Coinbase and trade directly for cryptocurrency using spot markets.

Be vigilant against scams

P2P marketplaces employ escrow systems and reputation metrics to prevent fraud, but there is still a risk of dishonest sellers stealing funds. Reputable marketplaces provide educational resources to assist users in identifying potential scams and protecting themselves from fraud.

Conclusion

The bottom line

While purchasing cryptocurrency with an Amazon gift card is possible, be aware of the reduced value you will receive due to high premiums charged by sellers. Our curated list of P2P marketplaces supporting Amazon gift cards offers a starting point in your search.

Consider our comprehensive guide to cryptocurrency investing for additional insights on alternative methods of cryptocurrency acquisition.