Can You Buy Crypto With a Credit Card?

Wondering whether you can buy crypto with a credit card? You can, but it all depends on the exchange and your credit card provider. Learn more in our guide. 💳

Can you buy crypto with a credit card?

Yes and no. Many crypto exchanges accept credit cards as a means of payment. A caveat to this though is that many credit card providers don’t allow purchases of crypto. So you’ll need to find both an exchange that accepts credit cards and check with your credit card provider if they allow purchases of crypto. 

Where can you buy crypto with a credit card?

While not all cryptocurrency exchanges allow credit card purchases, several major platforms do offer this option. Here are some of the most well-known exchanges where you can buy cryptocurrency with a credit card:

• Coinbase: Allows crypto purchases with credit cards that support “3D secure,” an online security protocol for identity verification.

• Kraken: Supports Visa and Mastercard for crypto purchases.

• Uniswap (via MoonPay): A decentralized exchange that allows credit card payments through third-party applications like MoonPay.

• Binance: Accepts Visa and Mastercard credit cards.

• Crypto.com: Allows specific crypto purchases using Visa or Mastercard through its gateway.

• eToro: Supports Visa, Mastercard, and Maestro for crypto purchases.

It’s important to note that while these exchanges accept credit cards, the specific card issuers that allow crypto purchases can vary.

Which credit cards let you buy crypto?

Even though some exchanges allow you to buy cryptocurrency with a credit card, not all credit card issuers permit these transactions. Most notably, while Mastercard and Visa technically support cryptocurrency purchases, many banks that issue these cards prohibit them.

Credit cards that do allow crypto purchases include American Express. This is one of the few credit card issuers that permit buying cryptocurrency. However, be prepared to pay high fees—sometimes 4% or more—on these transactions. Additionally, not all vendors accept American Express.

Read next: Best Crypto Friendly Banks

Which credit cards do not let you buy crypto?

Credit card providers that do NOT allow crypto purchases include:

• Bank of America

• Barclays

• Capital One

• Chase

• Citibank

• Discover

• TD Bank

• Wells Fargo

It's crucial to check with your card issuer to confirm whether they allow these transactions.

Pros and cons of buying crypto with a credit card

Using a credit card to purchase cryptocurrency might seem convenient, but as with all things, there are pros and cons.

Pros

• Convenient if your credit card is accepted.

• Purchases may have more consumer protections than ACH transactions.

Cons:

• Few exchanges accept credit cards.

• Credit card companies often treat cryptocurrency purchases as cash advances, which come with higher fees than regular transactions. These fees typically range from 3-5%.

• High-interest rates. Cash advances start accruing interest immediately at rates often between 17.99% and 29.99%, with no grace period.

• Crypto exchanges that accept credit cards may also charge service fees ranging from 0.10% up to 5%, plus a spread fee on the crypto’s purchase price.

• Treated as a cash advance, incurring additional fees and higher interest rates.

• No rewards or cashback.

• The cryptocurrency market is highly volatile. If the market crashes after your purchase, you may struggle to pay off the debt, especially with the high interest rates applied to cash advances.

• Lower credit limits on cash advances.

• Potentially slower transaction times due to mandatory holds.

• Using your credit card to buy cryptocurrency can increase your credit utilization rate—the percentage of your available credit that you're using. A high utilization rate can negatively impact your credit score.

What do you pay when you buy crypto with a credit card?

If you decide to proceed with purchasing cryptocurrency using a credit card, you should be aware of the various fees involved:

1. Cryptocurrency exchange fees:

• Transaction fee: This flat fee for buying crypto can range from 0.10% to 3% or more, depending on the exchange.

• Card fee: An additional fee specifically for credit or debit card purchases, typically ranging from 3% to 5% of the total purchase.

• Spread fee: A markup on the purchase price of the cryptocurrency, which is in addition to other transaction fees.

2. Credit card company fees:

• Cash advance fees: Generally $10 or 5% of the transaction amount, whichever is higher. This is on top of any exchange fees.

• Cash advance interest rates: Typically well over 25%, with interest accruing immediately from the day of the purchase.

• Foreign transaction fees: If the crypto exchange or gateway is based in another country, your credit card company might charge a foreign transaction fee.

What are some alternatives to buying crypto with a credit card?

Given the high fees, some alternatives to buying crypto with a credit card include:

• Debit cards: Debit cards typically do not have the same restrictions as credit cards and often incur lower fees.

• Bank transfers: Most cryptocurrency exchanges support bank transfers, which usually come with lower fees and don’t carry the same risks as credit card purchases.

• Direct deposits: Some exchanges allow you to deposit U.S. Dollars directly into your account to use for crypto purchases, avoiding the fees associated with credit cards.

How to buy crypto with a credit card

If you still decide to go ahead and buy cryptocurrency with a credit card, here’s a step-by-step process to follow:

1. Research credit cards and exchanges: First, check if your credit card supports cryptocurrency purchases. Then, find a reputable exchange that accepts credit cards, such as Coinbase or Kraken.

2. Sign up for an exchange account: Create an account on the chosen exchange, which may require completing the Know Your Customer (KYC) process, including identity verification.

3. Link your credit card: Add your credit card as a payment method on the exchange platform. Be prepared to undergo additional verification steps.

4. Purchase crypto: Navigate to the exchange’s buying section, select the cryptocurrency you want to purchase, enter the amount, and choose your credit card as the payment method. Review the transaction details carefully, including all fees, before confirming the purchase.

Read next: Best No KYC Exchanges

Can you buy crypto with a credit card without KYC?

In general, no. Centralized exchanges require identity verification to prevent fraud and comply with regulations. Even decentralized exchanges like Uniswap, which offer credit card payments through third-party services like MoonPay, typically require KYC compliance.

Which credit cards offer crypto as a reward?

Some credit cards offer cryptocurrency as a reward instead of traditional points or cashback. The Gemini Credit Card is a popular option, offering up to 4% cashback in cryptocurrency. However, it’s important to note that these cards often don’t allow you to purchase cryptocurrency on credit—they only offer crypto rewards for purchases.

Don’t forget the tax bill…

Yes - depending on the card you’re using and whether it’s a credit or debit card, there may be tax implications for using your card to buy crypto. You can learn more in our crypto credit and debit card tax guide.