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Can I Buy Crypto With a Credit Card?

how to buy cryptocurrency using credit card

Limitations also exist as to what types of credit cards may be accepted by exchanges. Some exchanges may only take Visa or Mastercard credit cards. For one thing, you’ll first need to find a cryptocurrency exchange.

  1. Cryptocurrency purchases are treated as cash-equivalent transactions, which fall under the scope of a credit card cash advance.
  2. Remember, buying cryptocurrency with a credit card can have additional fees and risks compared to other payment methods.
  3. Cardholders also face a high risk of burrowing themselves into deep debt that can be hard to climb out of.
  4. Finally, many credit cards come with some level of purchase protection in the form of cashback.

Enter your wallet information to confirm where you’d like to receive your crypto. BitPay partners with multiple partners to offer you the best possible price on your crypto purchases. You’ll be taken to a partner’s website to complete your transaction.

How to buy crypto with BitPay

Enter your credit card details, including the card number, expiration date, and CVV code. Some platforms may also require billing address verification. Generally, you must use a CeFi (Centralized exchange) to buy crypto with your credit card. The process is usually simple and straightforward, depending on the exchange you opt for. But for regulated exchanges like INX, you have to complete a KYC verification. Finally, many credit cards come with some level of purchase protection in the form of cashback.

how to buy cryptocurrency using credit card

Most large U.S. credit card issuers don’t allow the purchase of cryptocurrency, while others penalize cardholders with fees. All in all, buying crypto with credit cards is the ultimate example of can versus should. Using a credit card to purchase cryptocurrency essentially means taking on debt for a very uncertain investment. If that investment doesn’t pan out, you’re still on the hook for your credit card debt. Moreover, you may wind up with interest or other fees that make your initial purchase all the more expensive to pay off.

It is important to note that this service is only available to USD cards at the moment, and withdrawals to the cards are not allowed. The exchange will need to verify to validate that the transaction is real and no fraudulent traces are found. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

Is there a limit to how much crypto I can buy with a credit card?

We believe everyone should be able to make financial decisions with confidence. Swap Bitcoin, Ethereum, Dogecoin and all of your favorite coins. You have complete control over your crypto and keys when you store with BitPay.

While buying cryptocurrency can seem intimidating, BitPay makes it easy for novices and tenured crypto enthusiasts to buy crypto. You can buy crypto instantly in the BitPay app or through the BitPay website online. Select the amount you want to convert to crypto and the cryptocurrency you’d like to buy.

We cover the most important things you should keep in mind in this section. We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation.

Bring your own wallet or use the BitPay Wallet to store, swap and spend after you buy. This will typically involve providing your email address and creating a password. You will need to complete the verification process required by the platform. While it is simple enough to buy crypto with a credit card, there are some things you should consider before you buy. It’s not just about the ease and speed; you need to know the potential pitfalls and how to navigate them.

Few advantages come with using a credit card to buy cryptocurrency. Because cryptocurrency can be a volatile, risky investment, taking on debt to make such an investment is ill-advised. In addition to checking with your credit card company, you should also look for a cryptocurrency exchange willing to accept credit cards for deposits or purchases. Some only allow direct deposits from banks, cash deposits or debit card purchases.

What to Consider Before Buying Crypto with a Credit Card

Over the last five or so years, cryptocurrency has gone from niche gimmick to trading floor buzzword. Part of what led to such a quick rise in fame was the extremely volatile nature of cryptocurrencies like Bitcoin. Cryptocurrency purchases are treated as cash-equivalent transactions, which fall under the scope of a credit card cash advance. So, on top of the exchange’s credit card fee, you’ll likely be charged a cash advance fee, which can mean another 3% to 5% charge per transaction. Moreover, cash advances start accruing interest as soon as they hit your account, often at a higher-than-standard APR. BitPay gives crypto enthusiasts a safe, simple and quick way to buy cryptocurrency.

Before making any purchases with a credit card, research the exact cost for each purchase and what the monetary benefit will be (or will not be) before incurring the charge. As noted above, the hardest part will likely be finding a credit card issuer and a cryptocurrency exchange that allow such transactions. All this means you’ll need to look hard for a credit card company that doesn’t outright block cryptocurrency purchases. And if you’re diligent enough to find an issuer that can be used to buy crypto, be prepared to pay for it — again. With all the buzz around cryptocurrency these days, you may be thinking of whipping out the old credit card and joining in on the crypto craze.

However, since most issuers that allow crypto purchases classify them as cash advances, you probably won’t earn credit card rewards. Similarly, cash advances don’t usually count toward a sign-up bonus spending requirement, so you won’t even get the benefit of a welcome bonus for your troubles. With just your average credit card, debit card or Binance Pay wallet, you are now able to purchase crypto in an instant. There are a variety of methods, including fiat gateways, peer to peer services, and more.

Follow the instructions and get your Bitcoin deposited into your wallet, provided the transaction is successful. So, to even begin buying crypto with a credit card, you first need a credit card company and a crypto exchange that allow it. The exchange may charge a commission fee and/or a service fee for using a credit card to purchase or deposit crypto. Check with your specific credit card issuer to find out if it allows cardholders to purchase any type of cryptocurrency. Here’s what you need to know about buying cryptocurrency with a credit card.

Besides, credit card transactions are processed quickly, so they are fast. This means you can buy crypto almost instantly, which is handy, especially in a market where prices can change in a blink of an eye. The process is usually incredibly easy; you can buy crypto from almost anywhere worldwide if you have internet access and a valid card. If you’ve ever made an online purchase, you’re already equipped with the know-how.