How to Buy a Bitcoin with Credit Card

Bitcoin has gain massive popularity throughout the world. As a investor you must have one question in your mind is, How to Buy a Bitcoin with Credit Card? Today we will discuss how you can buy bitcoin with credit card, its benefit and all other factors associated with

Bitcoin is one of the largest cryptocurrency by market capitalization and it is currently traded on various trusted cryptocurrency exchange platform all over the world.

If you are a investor or interested in buying bitcoin then you always thought of buying a bitcoin using credit cards. You have to enter your credit card number, card verification value (CVV), expiry date on Crypto exchange platform to get the bitcoin value.

This is a quick and easy transaction process also, it does come up with enormous benefits. Before purchasing bitcoin using credit card, investor must consider some risks and factor associated with it.

How to Use Credit Card to Buy Bitcoin

Even though buying a Bitcoin using credit card is a easy transaction process, but this is depends on type of credit card and exchange platform you are using. Some exchange platform does not support all credit cards, so it is important to choose your exchange platform with some prior research and it has to be trustworthy.

Follow the required steps to buy Bitcoin with a Credit card, Purchasing Bitcoin using credit card has specific sequence which needs to be follow.

• Step 1 – Research The Credit Card

  If you are planning to purchase bitcoin using credit card then you should do some research about card companies as not all companies support bitcoin purchase. Below are some list of credit card companies that support bitcoin purchase.

  • Visa
  • SoFi
  • Mastercard
  • American Express

  Each of these cards has its own fees and all other payment charges, all these companies are trusted and has good reputation in market. But still before applying for these cards you should check all the charges/fees requested by these companies.

• Step 2 – Select Trustworthy Crypto Exchange Platform

  Many exchange platforms does not support bitcoin purchase using credit card, even if any exchange platform allows credit card purchase, the process may not be instant due to the validation process used to ensure there is no fraud. Peer to peer (P2P) exchange means transfer of bitcoin is used on the platform which does not accept Credit card purchase.

  That is why investor should do proper research while selecting exchange platform. Some of the Crypto Exchange Platforms that allows Credit Card for Bitcoin Purchase are

  • Revolut
  • Kucoin
  • Binance

• Step 3 – Link your Credit Card

  Once you are done with your research and found best credit card and exchange platform that meet your requirement. Then you should verify your personal details and complete Know-Your-Customer (KYC), Next step to link your credit card to exchange account. To do this go to Payment section – Click add New Payment Methods – Add New Card – Enter your Credit card number, CVV, Full Name, Expiry Date.

  Now, while purchasing Bitcoin, enter the amount you desire to buy Bitcoin and choose the option paying with credit card. You will be redirected to bank One Time Password (OTP) transaction page. After following all instructions Bitcoin successfully get deposited into your wallet.

Things You Need To Open an Exchange Account

There are several documents required to open an exchange account. The process to open a decentralized exchange is pretty simple. Download the browser extension or software, Set up you account, and store your recovery phase.

Before trading or adding funds in your decentralized account, you need to fulfill Know-Your-Customer (KYC) verification requirements. Documents / Things required to open decentralized account are mention below,

• Personal Information

  It is required to provide person personal information to meet KYC requirement as mandated by regulatory authority. The information includes,

  • Full Name
  • Address Proof as Utility Bills
  • Passport
  • Social Security Number
  • All other details required by exchange platform

• Minimum Deposit

  There are range of fund deposits provided by every exchanges for individual account. For Example – Binance & Coinbase required minimum deposit of $10 & $50 respectively, to complete their trades.

  Top Best Bitcoin Exchange Platforms

  Company	Transaction Fees	Currencies	Minimum Deposit/ Purchase	Trade Limit
  Kraken	0.00% to 0.26%	185+	$1	No
  Coinbase	0.00% to 0.60%	200+	$2	Yes
  Crypto.com	0.00% to 0.075%	250+	$1	Yes

Factors to Consider While Purchasing Bitcoin With Credit Card

• Exchange Fees

  When you purchase Bitcoin or any other cryptocurrency, it’s important to understand that an some exchange platform may charge a fraction of the transaction fees. Most of the time additional fees charged when you deposit fund in exchange account using credit card. So, it it possible that some percentage of deposit fees you have to pay to exchange platform if you used credit card payment method. Exchange platform also charge extra fees for its services.

  Coinmama is a typical example, it charge fees for every single purchase and also charge additional credit card transaction fees of 5%. That mean purchasing $100 of Bitcoin using credit card can charge you $5 of additional fees excluding platform fees. therefore, you will need a good return on investment to make up for the fees.

• Debt

  Investing in Bitcoin is a bit risky as it is volatile. and it is more risky if you used credit card to go into debt to buy cryptocurrency. This translates into paying exorbitant interest on volatile investments.

• Scams

  It is risky to choose currency exchange without any security reputations. Your personal information, Credit card details may get stolen by the hackers or by any malware.

Advance Penalties From Card Issuer

Your credit card issuer can view your crypto purchase as a cash advance just like using credit card to withdraw funds from an ATM.
This has following downsides,

• Higher Interest Rate

  Most of payment processer charge higher annual percentage rate for cash advances than the regular purchases. These fees is different for every credit card company.

• Foreign Exchange Fees

  Investor can use exchange based outside the USA, for that foreign exchange may be charged by credit card company. Usually 3% of foreign fees charged.

• Cash Advance Fees

  When you take your advance then one time fees charged which is typically 3% to 5% of the amount withdrawn, $3 to $5 get deducted from your account balance for the advance of $100.

• No Grace Period

  Credit card allows 21 day grace period to pay off your purchase before interest is charged. This only works provided you pay your balance in full monthly.

• Lower Credit Limit

  Some credit card has seperate cash advance credit limit which is lower than the regular one.

• Credit Utilization

  It does not have much impact when you use your credit card to make small purchases like Groceries. Big crypto purchases also help to improve your credit score.

• No Credit Card Rewards

  Cash back, travel points, or miles such rewards User get if he maintain good credit score. Crypto purchase probably won’t qualify for such rewards, but still this is depends on issuer. As a part of research you should credit card company ask them whether a cryptocurrency purchase is considered a cash advance.

FAQ

1. How to Buy Bitcoin Anonymously With a Credit Card?

If without any ID verification, you want to buy bitcoin using credit card then it is possible but you still need a wallet to store the bitcoin. Wallets like Ledger Nano X, Mycelium and Exodus. All these wallet support Bitcoin.

You can also buy Bitcoin using Peer To Peer (P2P) marketplace such as Paxful which allows us to do trade directly with investor without any middleman. To do trading seamlessly and anonymously some software are the best such as Lobster.

All these methods are helpful to buy Bitcoin anonymously with a credit card

2. What will happen if we use credit card to buy Bitcoin?

If you are buying bitcoin using credit card that means you have selected exchange platform and credit card that support credit card and bitcoin purchases respectively. Transactions are not instant Even though the process is seamless.

Exchange platform validate and verify that the transactions are real and no fraud traces are found.

3. How much time does it take to buy Bitcoin using credit card?

It is totally depends on exchange platform as they verify and validate the credit card transactions whether it is real or not and no scam is involved.

4. Why my credit card does not work to buy Bitcoin?

Several credit card companies are available in the market and they have different credit cards to offer with different benefits and charges. If you try to buy Bitcoin with your credit card and cannot proceed then their might be two reasons for this

• The credit card does not support Bitcoin purchase
• Exchange platform does not support credit card payment

As an investor you should do research about credit card and exchange platforms. Please go through this entire article which has mentioned credit card and exchange platform that support exchange and credit card respectively.

Thank You