How To Buy Cryptocurrency With Credit Card
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Like gold in the 1850s and dot-com stocks in the 1990s, crypto is having a moment as the hot commodity of the day. Purchasing cryptocurrency with a credit card is possible but can be a dangerous financial undertaking. Cardholders can expect fees from both sides of a transaction involving cryptocurrencies and credit cards, plus face the risk of losing money quickly because of volatile currency values and high interest rates.
In addition to checking with your credit card company, you should also look for a cryptocurrency exchange willing to accept credit cards for deposits or purchases. Some only allow direct deposits from banks, cash deposits or debit card purchases. Limitations also exist as to what types of credit cards may be accepted by exchanges. Some exchanges may only take Visa or Mastercard credit cards.
Several major U.S. credit card companies will not allow cardholders to purchase cryptocurrency with a credit card. Reports show that Citibank, for example, blocked cardholders from using credit cards to purchase Bitcoin and other cryptocurrencies in 2018, perhaps fearing its volatility and the potential for fraud. Some credit card companies may even issue cash advance fees if a cardholder attempts to make a crypto purchase.
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Cardholders can expect to pay fees to both the exchange the currency is purchased with and fees to the credit card issuer. Before making any purchases with a credit card, research the exact cost for each purchase and what the monetary benefit will be (or will not be) before incurring the charge.
The exchange may charge a commission fee and/or a service fee for using a credit card to purchase or deposit crypto. Depending on the exchange, vendors within the exchange may also design fees for purchasers depending on a few factors, like where the vendor is located, the purchase amount and what type of credit card is used.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
As the cryptocurrency market evolves, so does the standard financial market. A few start-up credit card issuers offer Bitcoin or other cryptocurrencies as bonuses or rewards. Other cards that earn crypto rewards include the Crypto.com Visa Card*, The Gemini Credit Card* and the Status Money Credit Card*.
Few advantages come with using a credit card to buy cryptocurrency. Among them is convenience. Because cryptocurrency can be a volatile, risky investment, taking on debt to make such an investment is ill-advised. It can also be quite expensive. Platforms accepting credit card payments often tack on additional fees for credit card transactions, and since credit card companies often treat cryptocurrency purchases as cash advances, you can expect to be charged a higher interest rate and see interest accrue immediately.
Credit card purchases of cryptocurrency often come with high fees. This can reduce the value in a good investment or minimize returns by a significant margin. Cardholders also face a high risk of burrowing themselves into deep debt that can be hard to climb out of. For those who insist on using a credit card, we advise contacting a credit card representative to discuss what the repercussions will be with a specific credit card issuer and look for a cryptocurrency exchange with the best credit card rates.
Crypto rewards cards are a new form of credit card reward program. Some programs allow you to earn cryptocurrency as reward for using the card while other programs may allow you to trade the reward points you earn for cryptocurrency.
You can use cryptocurrency to make payments if the vendor you wish to purchase from accepts cryptocurrency directly. Some websites allow you to exchange cryptocurrency for gift cards, which you can use to pay for purchases, instead. You can also sign up for a cryptocurrency debit card.
If you must use a credit card, we advise contacting a credit card representative with your card issuer to discuss what fees may apply. Look for a cryptocurrency exchange with the best credit card rates and ensure you do not spend more money than you already have available to pay down your credit card balance.
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency.
From crypto exchanges that collapse overnight to extreme price volatility, cryptocurrency investing is riddled with risks. But the payment method you use to purchase crypto can increase your risk of loss even further.
Most exchanges allow you to buy cryptocurrency using a variety of payment methods, including debit cards, ACH transfers from your bank, PayPal, or even credit cards. If credit seems like the obvious choice, you may want to think again, since your creditor might block the purchase, or even process it as a high-interest, high-fee cash advance loan.
In short, yes you can buy crypto with a credit card. Some of the most popular cryptocurrency exchanges allow you to make purchases with credit cards when you set up your payment method in your account.
Credit card transaction fees. Cryptocurrency exchanges typically charge several fees for each transaction, including a 1% to 2% transaction fee. But when you use a credit card, they add a credit card processing fee as high as 3.75% and you might pay an additional fee based on your pairing. On top of that, your creditor may charge their own processing fee.
Crypto.com, a Singapore-based cryptocurrency exchange platform, is allowing its 50 million users to begin purchasing crypto on its app using a debit or credit card connected to Google Pay, according to a recent press release.
To get started using Google Pay for Crypto.com purchases, Android users should first make sure a debit or credit card is connected to their Google Pay account. Then, when users make a purchase within the Crypto.com app, they simply select the Google Pay option. All that's left to do is accept the card processing fee and complete the purchase.
This move by Crypto.com speaks to a growing trend. Coinbase, a popular San Francisco-based cryptocurrency exchange, began allowing its nearly 98 million verified users to purchase cryptocurrency via Apple Pay and Google Pay last year.
"Adding these payment types makes it more convenient for people to purchase cryptocurrency in ways that they are familiar with," says Kris Hansen, co-founder and chief technology officer at Synctera, a fintech startup that connects app builders with financial institutions.
And although the ability to easily buy cryptocurrency may be welcome news to some investors, it's important to remember that these digital assets are subject to unpredictable fluctuations in value and price. Typically, experts recommend only investing as much as you are willing to lose.
Brittney started her writing career in the world of science, putting her physics degree to good use. Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. She wholly believe most problems can be solved with the right research -- and a good spreadsheet -- and she specializes in translating complex financial topics into actionable advice to help educate and empower readers.
There are a lot of reasons and parameters to take into consideration when buying crypto with a card. In this article, we'll see if you can buy crypto with a credit card, if not then what are the reasons, and if yes, then what is the best site to buy cryptocurrency with a credit card
Buying cryptocurrency with a credit card is a tedious process. First, you have to find an exchange that facilitates buying and selling of cryptocurrency, similar to a stock exchange. Bitcoin, Ethereum, and Dogecoin are bought and sold using crypto exchanges. Each crypto exchange has its own set rules, fees, payment times, and selection of coins.