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How to Buy Crypto With a Credit Card
If you’re thinking of buying cryptocurrencies with a credit card, this guide will show you how. Discover the platforms supporting credit cards and what the considerations are along with a step-by-step guide.
Top Cryptocurrency Brokers That Accept Credit Cards
Almost every platform accepts credit cards so it can be difficult to sift through the many options available.
To save you time, we’ve listed the top beginner-friendly platforms below to help you get started right away:
What Crypto Platforms Accept Credit Cards?
Apart from brokers, there are many other types of platforms that let you buy cryptocurrency using a credit card, such as:
Exchanges:
Exchanges let you invest in top coins using traditional currencies, like USD. They retain control over any coin you buy until you send it to a wallet that you control. Coinbase is an example.
P2P Platforms:
P2P platforms connect buyers and sellers directly. You can try Paxful, which lets you buy a range of cryptocurrencies.
Wallets:
Wallets let you buy cryptocurrency, view your balance, send transactions and connect to applications. Bitcoin.com Wallet, for example, is beginner-friendly and lets you buy your first BTC directly from the wallet.
How to Buy Cryptocurrency With a Credit Card?
Here are the specific steps involved in buying cryptocurrency from Pepperstone:
Step 1: Create an Account
Sign up for Pepperstone by creating an account with an email and password.
Step 2: Verify Your Account
Verify your account by uploading a valid proof of identity (e.g. passport or driver’s license) and proof of address (e.g. bank/credit card statement, internet bill).
Step 3: Fund Your Account
Fund your account by following the instructions to deposit fiat funds into your new Pepperstone account. Click on the drop-down menu and select credit card.
Step 4: Make Your First Cryptocurrency Purchase
Make your first Cryptocurrency purchase by navigating to the page of the specific coin.
Step 5: Confirm
Confirm the transaction.
How to Withdraw
Follow these steps to withdraw using Pepperstone.
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Step 1: Click on the ‘Funds’ tab in your ‘Secure client area’
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Step 2: Click on the ‘Withdraw funds’ tab to find all withdrawal options, and select credit card.
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Step 3: Confirm the withdrawal request via email (within an hour), or if your account has 2 Factor Authentication (2FA) enter the code from the authenticator app.
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Step 4: Here, you’ll be redirected to your account, where you may need to log in again.
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Step 5: Now, your request is confirmed and the withdrawal request will move to ‘Pending’, Pepperstone will then verify the request and finalise the process, the funds can take up to 5 days to appear on your credit card.
What Should I Look for in a Credit Card Cryptocurrency Broker?
Here are some things you should take into consideration when choosing a platform to make your crypto purchase:
Fee Charges:
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Find platforms that offer the lowest fees for the services you require. Credit card payments usually incur some of the highest fees.
Reputation:
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Read online reviews to check a platform’s reputation and level of customer service.
Speed:
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Some brokers are faster than others. In the rapidly-changing world of crypto trading, where prices fluctuate every second, you should aim for the quickest broker possible.
User-friendliness:
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Some crypto trading platforms feature a better user interface and are more user-friendly than others.
Location:
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You want to ensure the provider you use is not restricted in your location.
Availability:
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Always first check that the platform supports credit card payments before you sign up.
Should I Buy Cryptocurrency Using Credit Cards?
- Credit card transactions are instant, which means your funds will become available in your broker account seconds after the transaction is confirmed
- Major credit card brands have higher security protocols, making all credit cards safer
- The familiar process involved when buying and selling
- The fees involved may be higher
- Buying and selling process may take longer than alternatives
- Credit cards only work with fiat money
- Not available to all brokers
- The rewards offered by crypto credit cards at the moment are limited
Is Using a Credit Card the Best Method to Buy Cryptocurrency?
It is one of the most convenient methods, but the high fees associated with credit card payments are something you should consider. The inability to earn rewards is another deterring factor.
Cryptocurrency Credit Cards to Earn Rewards
Different crypto trading platforms offer their own credit cards so that users can earn rewards. But you must always read the terms and conditions before signing up, especially those related to fees. Some of these cards include:
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Bitpay Mastercard
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BlockFi Visa Card
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Coinbase Visa
What Are the Alternative Payment Methods to Buy Cryptocurrency With?
Most cryptocurrency exchanges and brokerage platforms support many other payment methods including:
Mobile Payments:
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Many brokers accept mobile payment methods, such as Apple Pay, which are fast and convenient. However, they are less popular compared to credit cards at the moment.
PayPal:
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Many platforms accept PayPal as a payment method. If you have an account already, this may be a preferred option.
Bank Transfer:
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Many cryptocurrency platforms will let users deposit and withdraw money using a bank transfer.
Wallets:
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Digital wallets like Skrill let you buy certain cryptocurrencies.
Debit Cards:
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This is accepted by many platforms.
Final Thoughts
Finding a platform that accepts credit card payments is relatively easy. Pepperstone offer this option and the process as outlined above is often seamless even for beginners.
It is always worth noting that profits are not guaranteed and you should only invest with money you can afford to lose. Moreoever, to easily purchase cryptocurrencies using your credit card, consider applying for the best crypto credit card available, which offers seamless transactions and competitive rates.
FAQs
Can I buy cryptocurrency anonymously with a credit card?
In a true sense, it is impossible to buy cryptocurrency anonymously because of the digital footprint left on the blockchain and the exchange platforms. Investors can buy Bitcoin from a Bitcoin ATM with a credit card which provides partial anonymity.
How fast is buying cryptocurrency with a credit card?
Credit card transactions on exchange vary depending on the card issuer and the exchange. For instance, on Coinmama, payments are processed within an hour. Card transactions are faster than methods like wire and bank transfers, which may take three to five days.
Do I need a crypto wallet?
Many exchanges provide wallets where users can store their cryptocurrencies, e.g., Coinbase wallet. We recommend investors store their cryptocurrency on an external wallet. For significant investment, we recommend the use of hardware wallets like Ledger.
Are there low fees when using a credit card to buy cryptocurrency?
Yes, there are fees associated with the card issuer, such as cash advance fees and processing fees. Exchanges may also levy a deposit fee which may go as high as 5%.
Can I hold cryptocurrency in my credit card account?
No, investors cannot hold cryptocurrency in their credit card accounts.
Can I buy other cryptos using credit cards?
Yes, this mostly depends on your chosen platform.
Can I buy cryptocurrency with a credit card instantly?
Timelines vary depending on the broker/exchange and card issuer. Transaction processing normally takes upwards of 10 minutes on most exchanges.
Are credit cards the easiest way to buy cryptocurrency?
Credit cards are one of the most convenient payment methods and often also a more secure option.
Can I earn rewards by buying crypto with a credit card?
Not normally, but the specific trading platform may offer their own credit cards, which may earn you rewards.
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