How to Buy Bitcoin with Credit Card or Debit Card

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Are you afraid of being bested by Bitcoin (BTC)? We can all agree that cryptocurrency is intimidating, but it doesn’t have to be. If you’ve got a card, you can get started any time.  

With the ever-growing popularity of Bitcoin and other cryptocurrencies- there are now more than 10,000 to choose from- it’s easier than ever to tap into token trading online.

You can purchase Bitcoin with a credit or debit card through different platforms from your personal computer.  Do you have questions, comments, or concerns about cryptic crypto?

I got you covered. Keep reading to find out the dos and don’ts of digital currency.  I’m going to break down the steps involved and then cover the pros and cons of buying Bitcoin with a credit or debit card.

If you need an introduction to Bitcoin or just a refresher on the basics, click here before diving in.

Quick Info: Popular Exchanges

Coinbase
Coinbase logo

Best Overall

Fees
0% - 0.50%
trading fees
Account Minimum
None
Promotion
Earn $5 in Bitcoin when you signup and deposit money into your account

Best Social Platform

Fees
None
trading fees
Account Minimum
$200
Promotion
Earn $10 when you signup and deposit money into your account

Largest Exchange

Fees
.1%
trading fees
Account Minimum
None
Promotion
Earn $5 when you signup and deposit money into your account

Best Security

Fees
0.5% - 3.99%
trading fees
Account Minimum
None
Promotion
Get $20 of free BTC after trading $100 or more within 30 days

5 Steps for Buying Bitcoin with a Crypto Card

  1. Find an exchange that allows credit card transactions. Though it’s easier than ever to pay with a credit card, not every site allows it. Do a quick Google search before opening an account. Popular sites include Coinbase, Coinmama, and Binance
  2. Make sure your card-issuer allows crypto purchases. If you have Visa or Mastercard, you shouldn’t have a problem, but it’s best to contact all other card issuers and ask if they support investing in BTC. 
  3. Enter your payment details. Most sites require you to set up an account and verify your identity with an ID like a passport or driver’s license. Once you’ve been verified, you can proceed to enter your payment details. 
  4. Set up your transaction. You have as many choices for buying and selling bitcoin as you do for regular stock. The most common are market, trade immediately, or limit orders, trade when a specific price is met. 
  5. Pay off your balance. If you used credit to buy the cryptocurrency, you want to be sure you pay off your balance as soon as possible to avoid accruing interest. I’m forgetful, so I find it helpful to have automatic payments set up.

Most accounts include the creation of a bitcoin wallet, but not all. You may need to go through a separate platform to get one.

Risks of Using a Credit Card to Buy Crypto

Unfortunately, there are some risks to take into consideration before diving headfirst into investing, but with the proper knowledge, you’ll find that there is digital gold in those digital hills.

High Risk of Fraud

Many exchange sites are available to use, but many of them are fraudulent. Only use vetted sites that you trust to keep your information safe. Here are the best right now.

High Investment Risk

It comes with the territory of investment, but the risks are higher than normal because the crypto market can be volatile at times. It’s even easier to rack up debt if you’re using credit. 

Credit Card Company Fees

Some companies treat the purchase of bitcoin as a cash advance, which means it will come with transaction fees and a higher interest rate. You can find out on your bank’s website.

Foreign Transaction Fees

If the exchange site you use is international, you risk paying a foreign transaction fee, which varies from bank to bank, so it’s best to ask directly. 

Fees From Exchanges

Every exchange site is going to charge you in one way or another, so it could be well worth your time to do some shopping around before settling with one.

There will at least be a base charge for commission or services rendered, if not other things like:

  • Transaction fees - They can be as high as 7% of the total every time. 
  • Deposits - Often, you have to pay upfront to open an account on the exchange site. The more sites you use, the more deposits you pay. 
  • Potential interest fees/late fees on your credit card - It’s extra easy to fall into debt if you get behind on your credit card payments when buying Bitcoin, especially if your bank treats crypto purchases as cash advances.  

Using a Crypto Rewards Credit Card

A crypto rewards credit card is just like a regular rewards credit card, except you earn Bitcoin and occasionally other cryptocurrencies instead of cashback when you make purchases, which is very promising compared to other payment methods, especially for newcomers. 

Here are the pros:

  • Accepted everywhere - It’s backed by Visa or Mastercard.
  • Secure - Protections are offered by major credit card companies. 
  • Easy to earn - It works just like a credit card, so you always earn rewards everywhere you already shop. 
  • Cheaper - You can avoid exchange rates and transaction fees that occur with other non-cash payment methods. 

Keep in mind that a crypto rewards credit card is still linked to cryptocurrency, so the amount you earn is subject to the volatility of the market. However, it’s a less risky option than buying Bitcoin with a credit card.

It’s more user-friendly and the perks offered are competitive.  It may not be for everyone, but for the right people, this could be a fantastic opportunity. 

Should You Use a Credit or Debit Card to Buy Crypto?

Crypto might not take over as the universal currency in the future, but it has made a large enough impact to let us know it’s here to stay. 

After reading through this article, you should know how to buy Bitcoin with a credit or debit card, and you should be more familiar with the dangers posed by buying crypto with a credit card and can navigate your way through them. 

There’s not any way to avoid the transactional fees, but the payoff is worth a little investment upfront, and the fees help keep your money secure. You also have control over how much and where you invest it, so you can do small amounts until you become comfortable. 

If you’ve been on the fence about Bitcoin until now, I say go for it. Look at the different exchange platforms and see if what they have to offer is compatible with your goals and lifestyle.

In five easy steps, you can be the newest investor in BTC from the comfort of your home. 

Bitcoin Credit Card FAQ's

Here are a few of the most frequently asked questions about Bitcoin credit cards or other crypto credit cards.

Can I use my debit card to buy Bitcoin at a Bitcoin ATM?

Technically, the answer is no. You can’t at this time. Bitcoin ATMs accept cash only, though you could withdraw cash from your card and use that to buy bitcoin. The only limit is your imagination and the law.

Can I buy Bitcoin with a credit card anonymously?

No. By nature, Bitcoin is not anonymous because all transactions made on its network are recorded in a public ledger. No names are publicly listed, but it’s still possible to trace back to the account holder. 

Most sites also require you to verify your identity when using a credit card. However, that doesn’t mean that your information is insecure. The vetted sites are more secure against cyber-attacks because they are constantly under threat but are prepared for it. 

Can I use a prepaid debit card to buy crypto?

Yes, you can, but most sites won’t allow them, and you face higher fees when using them, which will most likely change soon due to the number of people who prefer buying crypto with prepaid cards.

Why are fees so high when using a credit card?

Fees are so high because they come from both the exchange websites and the bank. You’ll pay from 1 % to 7% per transaction each time and then face high-interest rates from your bank if it treats it as a cash advance.

Coinbase

Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency.