how to buy cryptocurrency with a credit card

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. This also means that many of the protections you’d normally get for purchases from your credit card won’t apply. So don’t expect to be able to file a claim to refund your crypto purchase if your currency loses value.

Read on to see what you should consider before using your credit cards to invest in cryptocurrency. So, to even begin buying crypto with a credit card, you first need a credit card company and a crypto exchange that allow it. Before using a credit card, you should research to know whether it supports Bitcoin purchases. Also, choose an exchange that supports credit card payment.

how to buy cryptocurrency with a credit card

We have broken down the process of buying crypto with credit cards on INX and most regulated exchanges in this section. Keep in mind that credit card interest rates are variable and aren’t exactly low. Credit card companies may treat it as a cash advance, which can come with higher interest rates and fees plus a no interest-free period. This can add an extra cost to your crypto purchase, especially if you’re holding onto that balance for a while. Beyond the fees and complications, the big consideration when buying cryptocurrency with a credit card — or at all — is the uncertainty of digital currencies.

Will my credit card company allow me to buy cryptocurrency?

Delivered quickly to any wallet, no hidden fees or third-party custody. For additional security, consider transferring your cryptocurrency to a private cold wallet, especially if you’ve purchased a significant amount. Hardware wallets are often recommended for their security features. Review the transaction details, including fees and the total cost. Cryptocurrency prices can be volatile, so ensure you’re comfortable with the price and fees before proceeding. Enter your credit card details, including the card number, expiration date, and CVV code.

Then, navigate to the buy section, select the cryptocurrency you want to purchase, enter the amount, and choose your credit card as the payment method. First of all, buying crypto with a credit card is one of the easiest ways to seamlessly transition from the traditional financial world into the digital space. Most cryptocurrency exchanges accept credit cards and allow you to exchange your fiat currencies for crypto. The crypto exchange will charge you 3% or more to use your card — and yes, that’s on top of whatever they charge for the trade in the first place. That means you’re likely paying at least 6% in fees just to use your card. Cryptocurrency purchases are treated as cash-equivalent transactions, which fall under the scope of a credit card cash advance.

There are many different cryptocurrencies, like Bitcoin, Bitcoin Cash and Ethereum. Unlike many other purchases, crypto transactions are generally irreversible. If something goes wrong, getting a refund can be difficult, if not impossible.

  1. Instead, pay for cryptocurrency purchases with cash — via a bank account or wire transfer, for example — or with other crypto you already own.
  2. You will then be redirected to your bank’s one-time password transaction page.
  3. For one thing, you’ll first need to find a cryptocurrency exchange.
  4. The exchange will need to verify to validate that the transaction is real and no fraudulent traces are found.

We have also included handy tips to keep your transactions smooth and secure, with a list of recommended places to buy crypto with credit cards. Instead, pay for cryptocurrency purchases with cash — via a bank account or wire transfer, for example — or with other crypto you already own. Buying Bitcoin with a credit card means you’ll have to select a card and exchange that supports Bitcoin purchases and credit cards respectively. Even though the process is seamless, transactions aren’t instant. Every purchase incurs a fee and making payment with a credit card requires an additional fee of 3.24% to 3.34%.

How Long Does It Take to Buy Bitcoin With a Credit Card?

BitPay does not limit the amount of crypto you can buy through our app. However, our partners Simplex and Wyre may impose daily transaction limits that vary by purchasing currency. To better understand how much crypto you can buy, please check default daily limit details provided by Simplex and Wyre. It is safe to buy crypto with a credit card when you use reputable exchanges like INX to buy your crypto. You must also take necessary security measures like enabling two-factor authentication and using secure internet connections. After you have confirmed the purchase, the cryptocurrency/fund will be added to your account on the platform.

how to buy cryptocurrency with a credit card

To buy Bitcoin, you may consider using P2P marketplaces such as Paxful which allow you to trade directly with individuals while eliminating the middleman. Some software wallets such as Lobster allow you to trade seamlessly and anonymously. Exchanges are also great options, but just a handful give room for optional identity verification, hence you may want to choose these. We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Simplex, a Nuvei company, is the industry leader, providing global on/off ramps to the entire fiat to crypto ecosystem.

How to buy crypto with BitPay

Finally, many credit cards come with some level of purchase protection in the form of cashback. This can be reassuring and helpful, especially for new buyers in the crypto space in case of scams. Cryptocurrency investors can now buy and sell Bitcoin exchange-traded funds (ETFs).

Since buying Bitcoin with a credit card is convenient, one will expect it to be instant. However, this doesn’t seem to be the case because the exchange must verify the transaction and ensure no scam is involved. Mercuryo allows you to buy cryptocurrency seamlessly and hassle-free. BitPay supports Bitcoin, major altcoins, tokens and stablecoins. We are constantly evaluating and adding new cryptocurrencies to our platform.

After buying crypto, you can choose to hold, swap or spend your crypto. Hold and grow your assets in BitPay’s non-custodial wallet to gain a return on your crypto investment. Spend crypto through the BitPay Card, buy gift cards or spend directly with BitPay merchants. Some companies may allow it, while others might restrict such transactions. Check with your credit card issuer for their specific policies. What does the law say about buying crypto in your country/state?

The Securities and Exchange Commission (SEC) approved 11 ETFs in January 2024 for trading on several exchanges, including the NYSE Arca and the Nasdaq. Among the funds are the Grayscale Bitcoin Trust (GBTC), the Bitwise Bitcoin ETF (BITB), and the Hashdex Bitcoin ETF (DEFI). To do this, enter your full name, card details, and billing address. Researching these cards gives insight into the fees each payment company charges. OWNR’s intuitive interface makes it suitable for use by professionals and even newbies. They ensure a reasonable rate for any crypto purchase you make on their platform.

The crypto exchanges that do take credit cards will charge you for the privilege, and those fees can add 3% or more to your transaction. When swapping dollars for Bitcoin or any other cryptocurrency, it’s important to understand that an exchange may charge a fraction of the transaction cost. In most cases, an additional fee is charged when investors decide to fund their accounts using credit cards. Some crypto exchanges charge higher fees for credit card transactions compared to other payment methods. Remember, buying cryptocurrency with a credit card can have additional fees and risks compared to other payment methods. Always check with your credit card provider to understand the terms and potential additional costs.

You have complete control over your crypto and keys when you store with BitPay. The INX Digital Company inc. is an expert in the field of finance, crypto and digital securities. 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 Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. The exchange will need to verify to validate that the transaction is real and no fraudulent traces are found.

Yes, most exchanges and credit card companies limit the cryptocurrency you can buy using a credit card. These limits can vary, so it’s important to check with your credit card issuer and the exchange. Yes, many cryptocurrency exchanges and platforms allow you to purchase cryptocurrencies using a credit card. However, it’s important to check if your specific credit card provider and the exchange platform support this option. If you’re depositing funds, enter the amount you wish to deposit and confirm the transaction.


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