If you’re interested in buying cryptocurrency with credit cards, consider some important things before taking the plunge and making your first purchase.
While several reputable crypto exchanges allow you to do this, like Coinbase, there are plenty of scams out there waiting to relieve you of your money if you don’t do your research. So follow the tips in this article if you want to be able to buy cryptocurrency with credit cards safely and successfully.
1) Fund Your Crypto Credit Card With USD
If you can get your hands on USD through a friend or family member, transfer it to your crypto credit card and use that to buy cryptocurrency. It’s quick, easy, and straightforward. According to SoFi, you can “earn up to 3% cash back toward your financial goals when you apply and get approved for a credit card, and set up direct deposit through SoFi.”
2) Find an Exchange That Accepts Credit Cards (E.g., Coinbase, Binance)
Researching reputable exchanges will give you peace of mind when buying cryptocurrency. In addition, Coinbase is a trusted and secure place to buy Bitcoin and Ethereum with a credit card.
3) Deposit Funds Into Your Wallet
You need to deposit funds into your wallet before you can buy cryptocurrency. This is because most exchanges only allow trading between cryptocurrencies, not with fiat currency (USD, EUR, etc.). If you don’t have a wallet yet, read a guide on choosing a crypto wallet.
4) Acquire a Cryptosave Account
This site allows you to purchase cryptocurrencies with a credit card, including Bitcoin and Ethereum. It is not available in all states due to banking regulations, but it’s worth checking out if you can use it.
5) Buy Cryptocurrency With a USD Balance in Your Wallet
The easiest way to buy crypto with a credit card is to purchase a cryptocurrency available on an exchange and transfer it into your wallet. Coinbase, for example, allows you to buy four cryptocurrencies—Bitcoin, Ethereum, Litecoin, and Bitcoin Cash—directly from its website using USD from your bank account or credit/debit card.
6) Sell Crypto for Fiat On a Trading Platform (E.g., Coinbase, Binance)
Just because you can buy crypto with a credit card doesn’t mean that crypto-to-fiat trading is always possible. Some exchanges only allow crypto-to-crypto trades, and others may not accept your specific payment method. When in doubt, check out an exchange’s FAQ page or customer support chat to learn more about their payment methods and fees policies.
7) Withdraw Cash from Atm/bank to Withdraw USD
If you want to buy crypto with USD, cash out on your credit card for fiat currency. Then, withdraw it from an ATM. In some cases, depending on how much crypto you want to buy, your bank might charge a fee.
8) Transfer Funds Back to a Linked Bank Account Or Credit Card
Before buying a cryptocurrency with your credit card, you’ll need to use one of your linked bank accounts or credit cards to buy a fiat currency like US dollars. If you have an account at Coinbase, they allow you to make instant purchases of up to $25,000 per day using either a bank account or a credit/debit card.
There are many reasons to invest in cryptocurrency, but it’s important to have a long-term view of your investments. Cryptocurrency prices are volatile and can change quickly, so only invest an amount you can afford to lose.