Should You Buy Bitcoin With A Credit Card
Probably not, and there are lots of reasons why.
- Transaction fees: This fee is typically a percentage of your purchase, so if youre planning to spend quite a lot on bitcoin itself, it can grow quite large quite quickly.
- Cash advance fees: Because youre basically swapping USD for another form of money, credit card cryptocurrency purchases may include extra-high cash advance APRs and a cash advance fee, on top of the transaction fee.
- Foreign transaction fees: Many cryptocurrency exchanges are based outside the U.S., which means you may have to pay a foreign transaction fee. Fortunately, you can avoid this fee by using a card with no foreign transaction fee.
- Risky debt: Unless youre using a 0% introductory APR offer or paying off the purchase before the current billing periods due date, youll have to pay interest on your investment . Credit cards have fairly high interest rates, so this could quickly offset any gains you might see in terms of bitcoin value.
Why Do I Have To Buy Bitcoins With Credit Card In Order To Buy Other Cryptocurrencies
This is because most other cryptocurrencies are traded against Bitcoin. The liquidity for altcoins against the US dollar is often very poor. But on the other hand, the liquidity against BTC is usually very good. So it’s easy to get other currencies once you have bitcoins, but not easy to get other currencies without having BTC first.
Can You Buy Less Than One Bitcoin
Yes, it is possible to buy less than one bitcoin.
Each bitcoin is divisible to the 8th decimal place, meaning each bitcoin can be split into 100,000,000 pieces. Each unit of bitcoin, or 0.00000001 bitcoin, is called a satoshi.
When buying Bitcoin, you donât have to buy a full bitcoin and can easily buy less than one.
Most Bitcoin exchanges will let you specify the amount of fiat currency you want to spend and in exchange sell you the equivalent amount of Bitcoin. For example, if one bitcoin is worth $250, and you want to buy $125 worth of bitcoin, youâll receive 0.50 bitcoinâassuming there are no fees.
Vice-versa, most Bitcoin brokers also let you specify the amount of bitcoin you want and will charge you the equivalent in fiat. For example, if you want to buy 0.25 bitcoin and 1 bitcoin is $300, youâll be charged $75.
So, yes, itâs 100% possible to buy less than one bitcoin. Companies like will let you buy as little as $1 worth of bitcoin.
Read Also: How Much Is Amex Annual Fee
Buy Crypto With Credit Or Debit Card
To buy Bitcoin and other popular cryptocurrencies using Visa or Mastercard credit and debit cards, enter the amount you would like to purchase along with your wallet address and press “Continue”. You’ll be directed to our affiliate Simplex for processing of your transaction.
If for any reason your transaction isn’t approved, please try again with our secondary solution below offered through Moonpay which also accepts credit and debit cards including Google Pay and Samsung Pay compatibility
Youre Our First Priorityevery Time
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
Also Check: Can You Get An Unlimited Credit Card
Buying Bitcoins With A Credit Card Summary
The easiest way to buy Bitcoins with a credit card would probably be CEX.io. Here are the steps:
eToro disclaimer: This ad promotes virtual cryptocurrency investing within the EU , UK & USA which is highly volatile, unregulated in some EU countries and the UK, no EU or UK consumer protections & not supervised by the EU or UK regulatory framework. eToro USA LLC Investments are subject to market risk, including the loss of principal.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
CFDs are not available to US customers.
If you want to read in depth about additional exchanges that accept credit cards, keep on reading. Heres what Ill cover:
How Can You Buy Bitcoin With A Credit Or Debit Card
Bitcoin is on the rise, and if youre one of the many people who dont yet own any, you may be pondering how to buy Bitcoin with a credit card or debit card.
While its not as straightforward as buying other assets such as stocks or commodities, it is possible to purchase Bitcoin with a credit or debit card. Here are a few steps to help you get started:
Pros And Cons Of Using A Credit Card To Buy Cryptocurrency
You can buy crypto if you dont have the cash.
If your credit card allows it but many major ones dont the purchase could earn rewards or count toward a sign-up bonus.
Cash-advance penalties, such as fees, higher APR and loss of a grace period.
Extra fees from the cryptocurrency exchange.
Debt, if you dont pay off your entire monthly credit card bill.
Impact on your credit score.
Potential for scams or a foreign-exchange fee.
You May Have To Pay A Transaction Fee
The cryptocurrency exchange may charge a transaction fee when you use a credit card or a debit card to purchase cryptocurrency, which they will disclose to you at the time of your transaction. Using ACH takes a few days to post to your account, but its usually free. Youll have to make a choice between fast and expensive, or slow and free. Rushing to buy because you think prices may go up again may not be the wisest decision.
Recommended Reading: Where Are Visa Gift Cards Accepted
Decide How Much To Buy
As Bitcoin is a volatile asset, you must decide carefully how much you want to invest in the cryptocurrency. Factors like government regulations, supply and demand, investor and user sentiments, and media hype constantly cause fluctuations in Bitcoins price.
However much Bitcoin you decide to buy with your credit card, make sure you can pay it off in full when your next statement comes through.
Can You Buy And Sell Crypto Instantly
Sure. You can buy bitcoin and a number of other cryptocurrencies at CEX.IO by using the service. This service is available in our mobile app as well. You can also place a market order on the spot market, and it will be filled instantly. We have gathered advanced trading tools and implemented proprietary software that ensures our customers can trade bitcoin with high liquidity and tight spreads.
Recommended Reading: How To Get Spotify Premium Free Trial Without Credit Card
Pros And Cons Of Buying Crypto With A Credit Card
Few advantages come with using a credit card to buy cryptocurrency. Among them is convenience. Because cryptocurrency can be a volatile, risky investment, taking on debt to make such an investment is ill-advised. It can also be quite expensive. Platforms accepting credit card payments often tack on additional fees for credit card transactions, and since credit card companies often treat cryptocurrency purchases as cash advances, you can expect to be charged a higher interest rate and see interest accrue immediately.
Advantages Of Buying Bitcoins With A Credit Card
As with most purchases, the biggest advantage of buying bitcoins with a credit card is the ability to earn rewards. Just be sure your purchase isnt categorized as a cash advance if it is, you probably wont earn rewards.
The other reason people buy bitcoin with a credit card is financial leverage. If instead of a cash advance, your bitcoin acquisition is treated as a purchase, a credit card lets you use large credit lines to potentially profit from major price swings.
If thats your motivation for buying bitcoin with a credit card, be careful: Spending more than you can afford could land you in massive credit card debt.
You May Like: Who Needs Visa For Turkey
Impact On Your Credit Scores
First, think about how much of your available credit youll be using.
The percentage of your credit limits youre using known as your credit utilization ratio is a major factor in calculating your credit scores. Generally, the more available credit you use, the lower your scores will be.
Doing something like maxing out a credit card to buy bitcoin could negatively impact your credit.
Though your scores will bounce back once you pay off that debt, you shouldnt significantly reduce your available credit if youre soon applying for a new credit card, auto loan or mortgage.
The Pros And Cons Of Buying Cryptocurrency Using A Credit Card
- Print icon
- Resize icon
If youve been paying close attention to digital currency, then youve probably heard about how high the value of bitcoin was. In 2018, the value of a single bitcoin reached almost $20,000. That value has since gone down, but it still hovers around the $3,000 mark making bitcoin one of the most valuable cryptocurrencies in the world.
Bitcoin and other cryptocurrency value can fluctuate. If you time it right, you can make a lot of money trading cryptocurrency.
What is cryptocurrency?
Cryptocurrency isnt easy to explain, but well give it a shot. Basically, its a form of digital currency. Bitcoin is the most well-known one but there are lots of other ones.
To work, cryptocurrency uses cryptography to make sure that the transactions are secure. Cryptography is the process of converting ordinary text into unintelligible text, which is how it stays secure.
A small history of cryptocurrency
There have been lots of attempts to create digital currencies. In 2009 an anonymous programmer-or a group of anonymous programmers-known as Satoshi Nakamoto came up with bitcoin. Satoshi Nakamoto said that bitcoin was invented to be a peer-to-peer electronic cash system.
To complete a transaction, you input your private key. All the details of the transaction, except your private key, are available in a public ledger that can be accessed by everyone in the network.
Can you buy bitcoin with a credit card?
1. Visit the chosen cryptocurrency exchange.
Read Also: What Bank Issues Saks Credit Card
How To Buy Crypto With A Credit Card
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Remember: A cash advance does not usually involve a grace period and will begin incurring interest immediately.
Example: How To Buy Bitcoin With A Credit Card On Coinmama
Coinmama is one of the few exchanges that allow for credit cards, not just the debit versions. Like weve mentioned, signing up for Coinmama requires a KYC process. You must have either your drivers license or passport scanned and ready before being able to buy Bitcoin. And make sure to have both sides of your drivers license ready! You can upload yours as a common jpg file.
But you dont only need your documents scanned. Youll have to take a selfie with the document, and a piece of paper with the writing Coinmama and the date of the application.
They really want to know if its you.
It should only take a few minutes to finish the application process. Youll immediately receive a confirmation email letting you know it could be up to a day before you can buy crypto. If your scan was high quality, there shouldnt be any issue reviewing your documentation. And once the process is finished, youll get another email saying youre good to go.
So once you are ready to buy, how can you go about it?
You have a few options. You can buy bitcoin for set amounts, such as $100 or $1000. Or, you can set your own price by bitcoin or the fiat equivalent.
This screenshot from Coinmama shows its buying options.
Once you click Buy BTC, the process is fairly simple.
Yes, its that simple.
This is the payment form for credit cards on Coinmama.
Read Also: How To Stop Interest Accruing On Credit Card
How To Buy Bitcoin With Credit Card Beginners Guide
The fastest and most convenient way to buy Bitcoin online is with a credit card. You will, however, first need to open an account with a trusted cryptocurrency exchange that not only supports credit card deposits but low fees.
In this guide, we discuss where to buy Bitcoin with a credit card in less than five minutes from start to finish.
Alliant Cashback Visa Signature Credit Card
The Alliant Cashback Visa® Signature Credit Card is a rare Visa card that allows crypto purchases but youll still find the same cash advance hurdle as the other cards on this list. That means a minimum fee of $10 or 3% of your total transaction, whichever is greater.
This card offers 2.5% cash back on all purchases up to $10,000 spent each billing cycle. Of course, industry-leading rewards dont come free this card has a $99 annual fee, but it is waived the first year.
Also Check: Can I Pay Credit Card With Debit Card
How To Buy Bitcoin At Cexio: A Step
The first step is registration, where you need to enter a valid email address and set a strong password. Dont forget to enable two-factor authentication to make your account even more secure. Note that only one account per user is allowed. If you are already registered, then just log in to your account to buy crypto.
The next step is account verification. Different verification levels open access to various payment methods, and establish new limits for deposits and withdrawals. For card payments, you need to complete identity verification at a minimum, or the first stage of verification. You can find more information about payment options and verification limits on our page.
After account verification, you will be able to buy and sell cryptocurrencies in several ways:
- Instant Buy/Sell
- Spot trading
- Exchange in the CEX.IO mobile app
The Instant Buy/Sell service is one of the most convenient and fastest ways to buy bitcoin on CEX.IO. It was designed to make crypto purchases with debit and credit cards straightforward. The whole process takes a few minutes.
In order to buy bitcoin instantly with a debit card via Instant Buy/Sell, follow the next steps:
Go to the page on the CEX.IO website
Buy Bitcoin With Credit And Debit Card Instantly
Buying with credit and debit cards is coming soon. Watch this space!
Recommended Reading: When To Pay Credit Card To Boost Credit Score
Fees To Consider When Buying Bitcoin With A Credit Or Debit Card
When you buy Bitcoin with a credit or debit card, there are a few fees to consider. First, there is the transaction fee charged by the card company.
This fee is typically around 3% of the total transaction. Second, there is the exchange rate between Bitcoin and your local currency.
This rate can fluctuate greatly depending on the market. Finally, a service fee may be charged by the website or company that you are using to purchase Bitcoin.
This fee is typically around 1% of the total transaction.
When considering these fees, it is essential to remember that Bitcoin is a volatile asset, and its price can fluctuate greatly.
For this reason, you only need to invest an amount you are comfortable losing.