Credit Card to Buy Crypto: Buy Cryptocurrency with a Credit Card

How Can You Buy Cryptocurrencies Using a Credit Card?

Cryptocurrencies are now becoming more competent in the fields of investing, trading, purchasing, and much more. As they are surfacing everywhere, it is now becoming easier for us to buy crypto from various exchanges. But the bigger question is, can I purchase or buy a cryptocurrency with a credit card? The most definite answer to this question is "yes". Various popular crypto exchanges help you make a crypto purchase using multiple means. If you want to buy cryptocurrency with a credit card, then this is a place for you to collect all the pieces of information. 

Key Highlights

  • There are various crypto exchanges that help you make crypto purchases with a credit card.

  • Some of the popular exchanges that allow credit cards for crypto purchases are Binance, Kucoin, and Revolut. 

  • Every exchange charges you a Commission or service fee when you use a credit card to purchase or deposit any crypto.

  • Credit card companies consider cryptocurrency purchases to be cash advances, and you must pay cash advance fees and interest simultaneously.

Can a Credit Card Be Used to Buy Cryptocurrencies?

As stated earlier, you can buy crypto with a credit card. There are various crypto exchanges that help you make crypto purchases with a credit card. All you need is to set up your payment method in your account. Whenever you purchase cryptocurrency with a credit card, it is a convenient and secure purchase for you at the same time. However, you must know that every trading platform has a unique approach to credit card use. You must know whether your credit card is accepted on the exchange or not. Also, you must determine whether the crypto token you want to buy can be purchased with a credit card and, most importantly, whether your credit card issuer allows crypto purchases.

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How Do You Buy Cryptocurrencies with a Credit Card?

If you want to buy cryptocurrency with your credit card, it is as easy as making any other purchase with your credit card. However, several factors must be considered.

Find Which Credit Card Supports Crypto Purchases

When you plan to purchase any cryptocurrency with a credit card, first, you need to research whether the card and payment company allow or support the purchase of cryptocurrency. Some credit cards that support crypto purchases are American Express, MasterCard, and Visa. Note that every card has its own unique fees and terms. 

Find the Exchange

Many exchanges support the purchase of cryptocurrency with credit cards, but many crypto exchanges are not allowed to do so. While some exchanges support the purchase of cryptocurrency with credit cards, the process may not be instant as it requires a validation process to ensure there is no fraud. Some of the popular exchanges that use credit cards for crypto purchases are Binance, Kucoin, and Revolut. 

Link Your Credit Card

Once you find a suitable exchange and credit card that meets your requirements, all you need is to verify your account by providing personal information to meet the "know your customer" requirements. Then, link your credit card to the exchange, click "add a new card," and enter your full name, credit number, CVV expiry date, and billing address. Once you click on the cryptocurrency you want to buy, enter the amount, pay with a credit card, and follow other instructions to deposit the cryptocurrency into your wallet.

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Key Considerations for Buying Cryptocurrency Using Credit Cards

When you purchase any cryptocurrency with a credit card, you can expect fees from both the exchange and credit card issuer. Therefore, it is important to consider every cost for each purchase you make while using a credit card.

  • Crypto Exchange Fees: Every exchange charges a Commission or service fee when you use a credit card to purchase or deposit crypto. The fee depends on the exchange and other factors, such as vendor location, the purchase amount, and the type of credit card you use.

  • Credit Card Company Fees: Some credit card companies also incur fees when you purchase a cryptocurrency with a credit card. The common types of fees are:

    • Cash Advance Fees: Many credit card issuers treat cryptocurrency as a cash advance, meaning every crypto purchase is subject to cash advance fees. Cash advanced fees can be either $10 or 5%, whichever is greater.

    • Cash Advance Interest Rates: Many cards have higher annual percentage rates of over 25% for cash advances. The interest is variable and subject to market changes; however, it starts to accrue on the day you make a purchase and will continue accumulating until the credit is paid off.

    • Lower Credit Limit: Cash advances often have a lower credit limit than the cardholder's overall credit limit. If you want to buy large cryptos, you may find it challenging to make a large purchase from a credit card.

Final Words

You can purchase cryptocurrencies with a credit card instantly, but that often comes with high fees that would reduce the value of your investment or even minimise the returns. A few advantages also come with using a credit card while buying cryptocurrency. The first is convenience; however, you are advised not to make an investment by taking a debt as cryptocurrencies are highly volatile and extremely risky investments. Platforms that accept credit card payments also charge additional fees for credit card transactions. As credit card companies see cryptocurrency purchases as cash advances, you also have to pay cash advance fees and interest at the same time. Therefore, there might be better choices than purchasing a cryptocurrency with your credit card.

Frequently Asked Questions

Is it secure to buy cryptocurrencies with a credit card?

Yes, it is safe to buy crypto with a credit card, but it is advisable to contact a credit card representative to discuss the fees that may apply. Also, make sure you do not spend any more money than you already have available to pay down your credit card balance.

Can I buy a Crypto using a credit card reward?

There is a new form of credit card reward program called a crypto reward card. With this card, you can earn cryptocurrency as a reward for using it. You are also allowed to trade the reward points you earn from cryptocurrencies.

Can I take a credit card bill using crypto?

Yes, you can use cryptocurrency to make payments if your vendor allows you to purchase or accept the cryptocurrency directly.

How long does it take to buy crypto with a credit card?

Indeed, buying cryptocurrency with a credit card is convenient, but it may take time because the exchange needs to verify the transaction and ensure it is free of scams.

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Win Harrison 01 Feb, 2024

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