How to Buy Crypto with a Credit Card

Purchasing crypto with a credit card is very easy, convenient, and fast; however, it is not the best way to do so. 

In fact, purchasing crypto with a credit card inherently involves two issues that make it less advantageous compared to buying with a bank transfer deposit. 

The first is that platforms allowing this often apply additional fees, which are not present with purchases made via bank deposits, while the second is that the purchase is made at the time of payment and therefore at the exchange rate imposed by the platform, sometimes even with an additional spread. 

In other words, purchasing crypto with a credit card is very fast, easy, and convenient, but it is also more expensive. 

That said, let’s proceed to analyze how it’s done and where it can be done. 

How to Buy Crypto with a Credit Card

The first step is to register on a crypto platform that allows purchases with a credit card. 

Nowadays, there are so many that even some decentralized platforms that do not support fiat currencies (and therefore credit cards) allow purchases in fiat using connected external centralized platforms. 

Generally, this type of operation is conducted on a centralized exchange, but it can also be done on many wallets. 

After registering, identity verification (KYC) is required, as the use of fiat currencies in electronic format practically always mandates it. 

Some platforms require registration and card verification even before proceeding with the purchase, while others request the details only at the time of payment. 

At that point, you select the crypto to purchase, enter the amount of tokens you wish to buy, and in some cases, specify the fiat currency you want to use for payment. 

The final step is to select the credit card as the payment method, enter the details, and confirm the purchase. 

Once the purchase is confirmed, it is generally executed immediately by the platform, unless there are any issues, and the purchased crypto is almost instantly credited to the user’s account within the platform itself. 

To make this process even easier and faster, you can use Apple Pay or Google Pay on platforms that support it. 

Where to Buy Crypto with a Credit Card

The most widely used platforms for purchasing crypto with a credit card are centralized crypto exchanges. 

The most widely used in the world is Binance, although in some countries there might be some difficulties in using fiat currency on this exchange. It allows the purchase of BTC, ETH, and hundreds of other tokens or cryptocurrencies with Visa or Mastercard, a fee of approximately 1.8%, and initial limits up to €5,000/day. 

Binance is a professional platform also suitable for beginners. 

Extensively used, especially in the Western world, is the American exchange Coinbase, the largest in the USA. 

The fact is that Coinbase is ideal for beginners, and indeed it is mainly used by those who are just starting out. It supports credit cards for instant purchases of BTC, ETH, SOL, and many other cryptos, but with fees of 2-3%.

Another crypto exchange widely used in the USA, as well as in other countries, is Kraken. However, it is not the best choice for beginners. Additionally, for quick purchases with credit cards, the fees are around 3.75%.

It is generally used primarily by advanced traders and those seeking more structured services.

In Europe, Crypto.com is also very popular. Although it has high fees, around 3%, it supports Apple Pay and, most importantly, offers debit cards funded by cryptocurrencies to make fiat payments but paid by the user in crypto. 

In Europe, the Austrian exchange Bitpanda is also widely used, thanks to the fact that the fees for credit card purchases are low, around 1.5%. Additionally, it also offers the possibility to invest in stocks and precious metals. 

It is also suitable for beginners. 

Another solution is BitPay, which allows direct card purchases integrated within its wallet. 

Advantages and Disadvantages 

The main advantage, as mentioned earlier, is speed, coupled with ease. It is certainly the most accessible method for beginners. 

Another advantage is global accessibility, as most exchanges accept Visa and Mastercard, which are readily available worldwide. 

However, there are also some minor advantages, such as the built-in security in credit card payments, like fraud protection, and chargeback which allows disputing unauthorized transactions. 

Finally, some credit cards offer cashback or reward points on purchases, so if a card is used that treats the purchase of crypto as a standard transaction (and not as a cash advance), there is the possibility of earning cashback.

The main disadvantage, as already mentioned, is the high fees. 

However, one must not forget the other disadvantage, namely the exchange rate imposed by the platform at the time of purchase: this is the real reason why such a procedure is often avoided by more experienced investors and speculators. 

Finally, some banks block this type of transaction due to risk reasons, and exchanges set daily or monthly limits that are relatively low. 

Therefore, purchasing crypto with a credit card is suitable only for small and quick transactions, but for larger amounts, it would be better to use bank transfers.

However, purchasing with a bank deposit is more cumbersome, and only the most experienced users know how to use it effectively to avoid unfavorable exchange rates at the time of purchase.