How to Buy Bitcoin with a Credit Card

Can you purchase Bitcoin with a credit card? Yes, trading platforms including Coinbase, eToro and Paybis allows you to buy Bitcoin with a credit card.

As the adoption of cryptocurrencies continues to rise, the integration of Bitcoin purchasing capabilities by major credit card companies highlights the growing acceptance and versatility of digital currencies in everyday transactions. This development not only increases the accessibility of cryptocurrencies for consumers but also enhances their legitimacy as a viable form of payment. With major financial institutions embracing Bitcoin, it indicates a growing recognition of the potential benefits of cryptocurrencies, such as faster transactions and lower fees. Furthermore, this integration encourages a broader acceptance among retailers and service providers, ultimately paving the way for a future where digital currencies could become a standard component of global financial systems.

In this guide, we’ll walk you through the steps needed to successfully buy Bitcoin with a credit card while ensuring your investment is both secure and hassle-free.

How to Buy Bitcoin With a Credit Card: Step-by-Step Guide

Take a look at the process required to purchase Bitcoin with a credit card.

1. Create an Account

There are a handful of sites that allow you to buy Bitcoin with a credit card, which are covered below. Once you have chosen a platform, you can sign up for an account, typically using an email or phone number.

2. Verify Your Account

Most sites are subject to know-your-customer (KYC) laws, which require them to certify the identity of their users. This means that you will have to provide identification and answer some questions, which usually take between 10 and 30 minutes.

3. Link Your Credit Card

Once your account is verified, navigate to the 'Payment Methods' or 'Account Settings' section, which is usually found in the user profile menu. Look for an option to 'Add Payment Method' or 'Link a New Card.' Click on this and enter your credit card details, including the card number, expiration date, CVV, and billing address associated with the card. After inputting the necessary information, review the details for accuracy and submit the form. Some exchanges may require additional verification steps, such as a confirmation text or email, to ensure the security of the transaction before the card is fully linked to your account. Once completed, you should be able to use your credit card for transactions on the exchange.

4. Purchase Your Tokens

Once you have linked your credit card and deposited funds (if required), you can start purchasing Bitcoin and other supported tokens. You can do so by going to your portfolio and searching for Bitcoin (BTC), where you can enter the amount of tokens you want to buy. From there, you can complete the transaction. Certain transactions may necessitate a temporary hold on credit card purchases, potentially delaying the completion of your transaction by up to 72 hours.

For example, Paybis supports Apple Pay, Google Pay, credit cards, debit cards and other payment methods. This means that you can buy Bitcoin with Visa, MasterCard, Discover and American Express. Additionally, Paybis only has a minimum required purchase of $4. 

Where to Buy Bitcoin With a Credit Card

Below, you can find widgets showing several different cryptocurrency exchanges that allow you to buy crypto instantly, including Bitcoin, using a credit card.

Credit Cards That Allow You to Purchase Bitcoin and Other Crypto

Several credit cards support Bitcoin purchases, allowing users to transact with cryptocurrencies more seamlessly. Notable providers include American Express, Mastercard and Visa, each offering various features and benefits for cryptocurrency enthusiasts. These cards enable users to spend their Bitcoin directly, often converting it to fiat currency at the point of sale, which streamlines the purchasing process.

When considering purchasing Bitcoin or other cryptocurrency with a credit card, it is essential to consult your specific credit card issuer, as policies can vary significantly. While some issuers have begun to allow these transactions, others strictly prohibit them due to the perceived risks involved. Typically, cryptocurrency purchases are classified as cash advances, which can incur higher fees and interest rates than regular purchases. Additionally, card issuers may impose daily limits on the amount you can spend on crypto, as well as overall caps on cash advance amounts. Therefore, it is crucial to understand your credit card provider's unique regulations and any associated costs before proceeding with a crypto transaction.

Fees to Expect When Buying Bitcoin with a Credit Card

When buying Bitcoin with a credit card, it's essential to be aware of various fees and charges that may apply.

Cryptocurrency Exchange Fees

Most crypto exchanges impose commission and service fees for using credit cards to buy or deposit cryptocurrency to cover operational costs and mitigate risks associated with fraud and chargebacks. The structure of these fees can vary significantly from exchange to exchange and may depend on several factors, such as the geographical location of the vendor, the amount being purchased, and the type of credit card used. For instance, certain exchanges may offer lower fees for transactions involving specific cards or higher-volume purchases, while others may have flat fees or a tiered pricing model. Understanding these fees is essential for users to minimize costs and make informed decisions when trading on these platforms.

Credit Card Issuer Fees

In addition to the fees imposed by your chosen cryptocurrency exchange, purchasing cryptocurrency with a credit card incurs additional charges from the credit card companies as well. These fees can vary significantly, often including a cash advance fee, which is typically a percentage of the transaction amount, as well as higher interest rates that may apply immediately. This can make credit card purchases of cryptocurrencies particularly expensive, leading to increased costs for buyers. Moreover, due to the volatility of cryptocurrencies, the rapid changes in market value can further complicate the transaction, resulting in potential losses or unexpected expenses. Therefore, it is crucial for buyers to carefully consider these extra fees when opting to use credit cards for cryptocurrency purchases.

Pros and Cons of Using a Credit Card to Buy Bitcoin

Take a look at some of the pros and cons of buying Bitcoin with a credit card.

Pros

• Instant access: Users can have instant access to their Bitcoins. This means that you can begin using your Bitcoins as soon as the transaction is complete. 
• Ability to time the market: Oftentimes traders see opportunities in the market but do not have the funds to act on their convictions. By buying Bitcoin on a credit card, traders can buy and sell Bitcoin without having to possess the funds.
• Cashback: Some credit cards offer cashback on all purchases. So, it can allow you to get some of your money back when you buy Bitcoin with a credit card. 

Cons

• High fees: When you buy Bitcoin with a credit card, there are often high fees. These fees can add up over time and eat away at the actual investment. This is especially true for smaller investors, as some sites charge a flat fee such as $5 per transaction.
• Risk of debt: If you buy Bitcoin with a credit card, you run the risk of not being able to pay back the credit card company. This can cause your credit score to go down, which can have negative financial consequences.
• High interest: If you end up going into credit card debt, most companies charge extremely high interest rates that compound every month. If you take out too much credit and cannot pay it back, the balance can get exponentially higher.

Buy Bitcoin Instantly With a Credit Card

It is now easier than ever to buy Bitcoin, as you can do so in minutes with a credit card. The process is simple, allowing you to quickly and easily get your hands on tokens. With these tokens, you can invest, store value and pay certain vendors. However, this process has risks, mainly revolving around your ability to repay the credit card companies. If you can repay promptly, then buying Bitcoin with a credit card could be a good option for you. 

Frequently Asked Questions