Credit cards are an easy way to buy crypto, but they’re also risky. Many major card issuers don’t allow you to buy cryptocurrency with a credit card, and those that do tend to consider it a cash advance.
These purchases will likely incur a cash advance fee, which can be 3% to 5% of the transaction amount, plus start accruing interest right away. That’s a lot of extra fees, and it may not be worth it.
Buying with a credit card
If you’re looking to buy bitcoins, there are a number of options available. You can use a credit card, debit card or bank transfer to make the purchase.
The advantages of buying with a credit card are convenience and speed. However, it’s important to consider the risks associated with credit cards.
Firstly, you’ll have to choose an exchange that accepts your credit card. You can do this by searching online or contacting your bank or financial institution.
Additionally, you’ll need to find a crypto wallet to store your coins in. There are many available, but you should pick one that’s safe and secure.
Moreover, many card issuers classify cryptocurrency purchases as cash advances, which means you’ll have to pay interest on the transaction. This could be very high, particularly if you don’t pay off your balance as soon as possible. This will increase your credit utilization, which is a red flag for issuers and credit scoring algorithms.
Exchanges that accept credit cards
If you want to buy bitcoins with a credit card, you’ll need to find an exchange that accepts it. However, it’s important to note that not all of them do, so it’s best to check the fine print before you make a purchase.
One issue to be aware of is that many card issuers treat crypto purchases as cash advances, meaning that you’ll pay a cash advance fee on top of any exchange fees. This can be anywhere from 3% to 5% and will start accruing interest as soon as it hits your account.
Fortunately, a handful of popular exchanges like Bybit and CEX Trading started accepting credit cards in 2013, making it easier for consumers to buy crypto using their cards. To use an exchange, you need to sign up with a valid email address and password and pass the Know Your Customer (KYC) process. Several exchanges also offer secure wallets so that you can store your coins safely.
Buying with a debit card
A Bitcoin debit card makes it easier to manage your crypto wallets and spend them on everyday purchases. Instead of converting your BTC to local currencies, you simply load the card with the amount of cryptocurrency you want to use, and then swipe it when you’re making an online or in-person purchase.
Buying with a credit or debit card has been relatively easy in recent years thanks to the implementation of anti-fraud systems by exchanges. However, these systems are expensive to operate and some exchanges may charge a premium for buying with your card.
To buy with your debit card, first register with an exchange that accepts cards and link it to your account. eToro is an example of a popular exchange that accepts debit cards for bitcoin purchases.
Buying with a bank transfer
If you’re looking to buy bitcoins with a bank transfer, there are many exchanges that support this payment method. They’re usually faster and cheaper than using a credit card.
If your local currency isn’t supported, check whether the exchange offers international money transfers such as SEPA and SWIFT. These options are available in some European countries and are typically more convenient for buyers.
Bybit https://www.bybit.com/en-US/ supports bank-account payments through ACH in the US. This is a faster and more convenient way to buy bitcoins, but it does take five business days for the coins to arrive.
You can also buy with a SEPA bank transfer, which is the fastest option for buying in Europe. However, this is only available if you bank with a SEPA-supported financial institution.