Have you been wondering how you can buy cryptocurrency using your credit card?. Worry no more as this article will help you out.
See, you can buy Crypto with a credit card on coinbase. This is quite sure and easy to do.
Can you use a credit card to buy crypto?
It is possible to purchase Bitcoin, Ethereum, stablecoins, and other cryptocurrencies with a credit card, but your credit card provider or the exchange where the cryptocurrency is being sold may prohibit this.
The majority of major U.S. credit card issuers prohibit the purchase of cryptocurrencies, while some charge their customers fees. Credit cards are not accepted at certain significant cryptocurrency exchanges, including Coinbase. For instance, Coinmama and CEX.io claim to take credit cards, but they only accept Visa and Mastercard. Therefore, you need a credit card provider and a crypto exchange that supports it to even start buying cryptocurrency with a credit card.
Even then, the costs will probably discourage you. Instead, use cash, another cryptocurrency you already own, or a wire transfer to pay for purchases of cryptocurrencies.
There are restrictions on the credit card kinds that exchanges may accept as well. Some exchangers might only accept credit cards from Visa or Mastercard.
For instance, the exchange website Paxful includes a selection of suppliers from all around the world. One of the few exchanges that now accepts American Express credit cards also heavily depends on the seller that is chosen.
Cryptocurrency purchases are accepted and treated as cash advances by credit card companies like American Express, Chase, Capital One, and Citi. According to John Taylor Garner, the creator of the rewards-based credit card app Card Curator, “There are no known banks that do not charge a cash advance fee for purchasing cryptocurrencies with a credit card.”
The great majority of credit cards have cash advance fees, which are normally between 5 and 10 percent of the advance amount. Additionally, cash advances have higher interest rates and no grace period, so even if you intend to pay off your credit card debt in full before the due date, interest will start to accumulate on your bitcoin transactions the moment you charge them.
Therefore, while using a credit card to purchase cryptocurrency may be conceivable, doing so will most certainly result in you paying some high-cost fees to both the crypto exchange and the company that issued your credit card.
If you wish to purchase cryptocurrency using a credit card, you should be informed of all applicable costs in advance and be ready to factor that into the price of converting dollars into coins. This includes charges from your credit card company as well as the cryptocurrency exchange.
Here are some measures to take if you decide you don’t mind the cost and want to purchase cryptocurrency using a credit card so that you are aware of the additional fees you’ll incur.
Step 1: Find out about cash advance charges from your credit card provider.
To find out how much you’ll pay in cash advance fees and the APR that will be applied to your balance when you use your card to buy cryptocurrency, consult your card agreement or give the number on the back of your card a call.
Step 2: Calculate the number of exchange costs you will pay.
If you’ve decided to invest in cryptocurrencies, it’s crucial to pick the exchange where you’ll purchase (and maybe keep) your coins based on aspects like costs, investor tools, accessibility, and most crucially, security. Look for a page on the exchange’s website that says “Credit Card Accepted” if you select an exchange that does.
Step 3: Use your credit card to fund your account and then buy cryptocurrencies.
You can explore cryptocurrencies and invest when you’re ready once your exchange account has been filled with the funds you intend to use for cryptocurrency.
Step 4: Finish off the outstanding balance on your card.
When you make the purchase, your cash advance will start to accrue interest; therefore, you should have a strategy in place to pay the balance off as quickly as you can to avoid paying more interest.
How do I put money in my coinbase wallet using a credit card?
The electronic transfer of funds from your bank account to your coinbase wallet is known as a wire. You effectively tell your bank to send money from your account to your Coinbase account wallet when you initiate a bank-wire transfer.
To start a wire transfer from your bank account to your Coinbase account, follow these steps:
1) Launch a browser and go to the Coinbase website.
2) To log in, enter your credentials.
3) After logging in, select “Trade” to access your account’s trading section.
4) Select “Deposit” from the list under “Wallet Balance.” On the left side of your screen, there is a tab labeled “Wallet Balance.”
5)Click on “Currency Type,” then from the drop-down menu, choose “USD.”
Sixth, select “Wire Transfer.” A special reference code or a personal account number will subsequently be given to you to help you start the transfer.
7) To finish the process, adhere to the on-screen directions.
Within 24 hours of starting a bank-wire transfer, the funds are credited to your Coinbase account. The funds will arrive in your account the same day if you start the process by 1 p.m. PT.
The drawback is that each wire transfer will set you back $10.
Additionally, for Coinbase to receive wires, the following prerequisites must be satisfied:
The name on your Coinbase account must match the name on the bank wire. This implies that you cannot start a wire transfer from another person’s account.
The wire must be started from a bank account with a U.S. location.
The initiating account for the wire transfer must already be connected to your Coinbase account.
Your preference code or Coinbase account number must be included in the wire transfer.
Coinbase Methods for Deposit & Withdrawal:
Bank Account (ACH): This deposit/withdrawal option, which takes 4-5 business days, is suitable for big and modest amounts.
The ideal way for large deposits and withdrawals is wire transfer, which takes one to three business days.
Bitcoin, Bitcoin Cash, Ethereum, and Litecoin may all be purchased, sold, and deposited or withdrawn using Coinbase.
Best website to buy Bitcoin with a credit card.
1) Pionex.
Trading between cryptocurrencies like Bitcoin and between stablecoins is ideally supported by Pionex. There are 12 auto trading bots available without additional cost. You can use credit cards to make direct purchases on the exchange. You can deposit a maximum of $2,000 and $1,000,000 using credit cards for LV1 and LV2 verification, respectively.
You cannot, however, withdraw US dollars or any other fiat currency using any means. Only cryptocurrency withdrawals from external wallets are supported.
Additionally, you might want to transfer your cryptocurrency to an exchange like Pionex which enables automatic trading using the Pionex trading bot after purchasing it with a credit or debit card on another exchange. Singapore-based Pionex was established in 2019.
2) Crypto.com
The Crypto.com Visa card allows you to use wallet-held cryptocurrency at ATMs and Visa merchant locations across the world in addition to enabling fast cryptocurrency purchases with credit and debit cards. There are five distinct tiers of the Visa card, each with a different CRO staking amount and payout.
Nevertheless, you can earn up to 14.5 percent CRO returns by staking USD 400,000 worth of CRO.
The service enables cryptocurrency payments to retailers. Additionally, users can instantly borrow up to 50% of their cryptocurrency holdings. On the platform, you can trade cryptocurrency on the spot and derivative markets and even use margins that are up to 10 times your order capital.
3) Bitstamp
More than 50 cryptocurrencies can be purchased and sold using credit and debit cards through Bitstamp. In most nations, the exchange enables anyone to make immediate card purchases (including the US and EU). You can make purchases with a credit card up to $20,000 per month and $5000, Euro, or GBP every day. The lowest price is twenty-five dollars, euros, or pounds.
4) Binance
There’s a platform for trading cryptocurrencies called Binance. You may use it to buy and trade cryptocurrencies like Bitcoin, Ether, and alternative currencies. The platform works with a variety of devices, including iOS and Android ones.
Following the transaction’s completion, Binance puts the new cryptocurrency right into your Binance wallet. It provides a quick and secure way to manage cryptocurrency assets.
5) Bybit.
BTC, ETH, and USDT may all be purchased using the cryptocurrency trading site Bybit. It works with 59 fiat amounts of money. It accepts several payment options, including cash deposits, debit, and credit cards from Visa and MasterCard. There are few places where you can deposit cash.
6) Coinmama.
In addition to accepting credit card payments, Coinmama is a cryptocurrency broker that also accepts debit card payments. Since its launch in 2013, it has amassed over 800,000 users across 190 nations.
The user can purchase up to 15,000 USD worth of bitcoin per month using a credit card or debit card after the account and card have been verified. The daily cap is $5,000 when using a validated credit card and account. These restrictions apply to Level 1 verification, which calls for a selfie and a legitimate official ID.
Level 2 requires an additional utility bill for verification, whereas Level 3 only requires the completion of a brief form. It does, however, have a larger cost when compared to other exchanges like Coinbase, Bitstamp, and Binance.
Three other drawbacks that you must take into consideration when purchasing Bitcoin on this exchange using a credit card are that it does not offer a hosted wallet and that you must construct a wallet using a different platform.
Sadly, it also prohibits crypto-to-crypto transactions. Additionally, there is only a web platform that can be accessed from any device, rather than a specific mobile or desktop software.
7) Coinbase.
Coinbase began operations in the United States in 2012, but it is now accessible in around 36 other nations. The enormous liquidity of this exchange is one of its benefits. Online reviews of Coinbase indicate that users also find the interface to be user-friendly.
Although Coinbase supports debit card purchases of Bitcoin and other cryptocurrencies, credit card purchases of Bitcoin are not supported. Given that it is regulated, it is one of the biggest cryptocurrency exchanges in the entire globe, particularly for new traders in the United States.
FAQ
Is it safe to buy a Crypto with a credit card?
It is possible to buy cryptocurrencies with a credit card, but doing so can be risky financially. Cardholders can expect fees from both parties in a transaction involving cryptocurrency and credit cards because of the high-interest rates and volatile currency values, plus they run the danger of losing their money very quickly.
Can you buy a Crypto using a free credit reward?
It is occasionally feasible to purchase cryptocurrency with a credit card, but this ultimately depends on the cryptocurrency exchange you’re using to invest in and the company issuing your credit card.
Can you buy Bitcoin with a credit card?
It is possible to purchase Bitcoin, Ethereum, stablecoins, and other cryptocurrencies with a credit card, but your credit card provider or the exchange where the cryptocurrency is being sold may prohibit this. The majority of major U.S. credit card issuers prohibit the purchase of cryptocurrencies, while some charge their customers fees.
What happens if you buy Bitcoin with a credit card?
Transactions on many exchanges, where you can quickly purchase Bitcoin with a credit card, are typically quick and error-free. This is mostly because using a credit card for payment eliminates the time-consuming verification process needed for other payment options like bank transfers.